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DORBYL LIMTED - DORBYL LIMITED INTERIM GROUP RESULTS
DORBYL LIMTED
Incorporated in the Republic of South Africa
Company registration number 1911/001510/06
Share code: DLV
ISIN: ZAE000002184
A better performance from both divisions during the period resulted in improved
headline earnings. Turnover of continuing operations, when measured against the
previous comparable period, was 12% higher. This translated into an improvement
of 23% in the operating income of continuing operations. Taking discontinued
operations into account, operating income before exceptional items was 44%
better.
Interest income declined by approximately R8m, due to both reduced interest
rates and lower cash levels than in the first six months of the previous
financial year. Nevertheless, headline earnings reflected a 39% improvement on
the comparable period.
An exceptional loss of R11m occurred during the period under review, being the
legal costs relative to an action taken against an acquirer of a past business
and the realization of translation losses relative to a dormant offshore
subsidiary on its deregistration, offset by minor benefits related to property
transactions. In the comparable period last year, there was an exceptional
profit of R33,5m, mainly the result of the disposal of certain operations at
that time. The cumulative difference in exceptional items of R44,5m resulted in
earnings for this period being 37% lower than the comparable period last year.
CASH ON HAND/BORROWINGS
The net cash position at 30 September 2004 was in line with the position at 31
March 2004 as set out below:
September March 2004
2004
Net cash held by South African operations R334,8m R335,1m
Less: Alpine net borrowings (SA Rand) (R26,0m) (R20,0m)
Net cash R308,8m R315,1m
Alpine net borrowings (US Dollars) $4,0m $3,2m
ACCOUNTING POLICIES
The financial statements have been prepared in accordance with South African
Statements of Generally Accepted Accounting Practice. These policies are
consistent with those applied in the most recent annual financial statements.
ENVIRONMENTAL FACTORS
The continued strengthening of the Rand versus major currencies, especially the
US Dollar, exacerbates the export competitiveness of the automotive division
(DAT) and dilutes the increase in Alpine`s profitability in Rand terms.
In addition, aggressive local steel price increases have also further increased
costs and a strong position is being taken to obtain the necessary price
increases from DAT customers. There is a risk that this cost/price creep will
lead to a loss in both local and export sales with the consequent impact on
employment levels.
DIVISIONAL REVIEW
ALPINE - USA
Alpine`s performance continued to improve, with operating profit of US $11,1m,
being up $3,7m on the comparable period. Housing construction has continued at
higher than expected levels and Alpine has achieved a further growth in market
share. The increase in turnover of 30% was also contributed to by the increase
in steel prices in the USA and the UK, which were passed through to the
customers. There are concerns about the USA economy, and building activity could
decline by 3% to 5%. Whilst Alpine should continue to grow its market share,
activity levels and therefore profits in the second half of the year are, as
usual, susceptible to the severity of the winter weather and cannot be equated
to those of the first half of the year.
AUTOMOTIVE DIVISION - SOUTH AFRICA
Increased national motor vehicle sales have led to higher demand in the
automotive division and turnover improved by 14%. This helped to offset the
adverse effects of the strong Rand on exports, which continues to be a major
concern. The Wheels Division, in particular, has struggled competitively in the
last six months and Ispat-Iscor have recently given notice that the cost of
wheel steels will soon go up by 34%. The implications of such an extraordinary
increase are being investigated, but are likely to impact negatively on exports
and the local aftermarket. Some local original equipment customers are
considering reverting to importing wheels.
It seems inevitable that jobs will be lost as a result of this situation and the
second half of this financial year is likely to be challenging.
INTERIM DIVIDEND NO.110
An interim dividend of 35 cents per ordinary share has been declared. The last
date to trade `cum` the interim dividend in order to participate in the interim
dividend will be Friday 7 January 2005. The shares of Dorbyl will commence
trading `ex` the interim dividend from the commencement of business on Monday,
10 January 2005 and the record date will be Friday, 14 January 2005. The interim
dividend is payable on Monday, 17 January 2005.
No dematerialisation or rematerialisation of share certificates may take place
between Monday, 10 January 2005 and Friday, 14 January 2005, both days
inclusive.
On behalf of the board
N Phillips (Chairman)
WW Cooper (Chief Executive)
22 November 2004
Transfer secretaries:
Computershare Investor Services 2004 (Pty) Limited,
70 Marshall Street, Johannesburg 2001
(P O Box 61051, Marshalltown, 2107)
Company secretary and registered office:
BD Bhikha
Dorbyl Ridge, 16 Jan Smuts Avenue, Parktown, 2193
Directors:
N Phillips (Chairman)*, WW Cooper (Chief Executive),
WE Buhrmann*, RC Duff, JB Magwaza*, D Orwin, EJ Vorster, T van Wyk*. * Non-
executive
Income Statement
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
to to to
September September March
2004 2003 % 2004
R000 R000 Change R000
Revenue 1 065 512 977 491 9 1 879 670
- continuing operations 1 065 512 948 054 12 1 807 612
- discontinued - 29 437 72 058
operations
Operating income before 80 667 55 965 44 108 781
exceptional (loss)/
profit
- continuing operations 80 667 65 492 23 123 245
- discontinued - (9 527) (14 464)
operations
Exceptional (11 052) 33 548 27 242
(loss)/profit
Operating income 69 615 89 513 136 023
Net interest received 12 051 19 852 31 039
Income - associates 295 217 384
Profit before taxation 81 961 109 582 (25) 167 446
Taxation (34 212) (34 463) (70 352)
Profit after taxation 47 749 75 119 (36) 97 094
Minority interest (3 627) (4 828) (8 048)
Earnings attributable to 44 122 70 291 (37) 89 046
shareholders
Earnings per share
(cents)
Earnings per share 133.3 211.9 (37) 268.5
Headline earnings per 165.2 118.5 39 199.3
share
Headline earnings per 165.2 118.5 39 211.8
share before Secondary
Tax on Companies (STC)
on special dividends
Dividends paid per 50 50 - 180
ordinary share (cents)
Final - year ended 50 50 50
31 March 2004 (2003)
Interim - period ended 30
30 September 2003
Special - 17 November 100
2003
Dividend cover - 3.3 2.4 2.5
headline earnings/normal
dividends (times)
Dividends declared per 35 30 50
ordinary share (cents)
Special dividend 100
declared per share
(cents)
Exceptional
(loss)/profit
(Loss)/profit on (11 052) 33 548 27 242
disposal/discontinuation
of businesses
Tax charge attributable (136) (2 330) (7 944)
to exceptional items
Headline earnings
reconciliation
Earnings per the income 44 122 70 291 89 046
statement
Adjusted for: 10 431 (31 045) (23 097)
Preference dividends (106) (106) (212)
Exceptional 11 052 (33,548) (27,242)
loss/(profit)
(Profit)/loss on sale of (930) 399 (5 125)
other fixed assets
Tax charge attributable 415 2 210 9 482
to adjustments
Headline earnings 54 553 39 246 65 949
STC relating to special - - 4,145
dividends
Headline earnings before 54 553 39 246 70 094
STC on special dividends
Diluted earnings per
share
Diluted earnings per 131.8 206.0 261.0
share (cents)
Diluted headline 163.3 116.2 194.5
earnings per share
(cents)
Operating income before 33 24 25
exceptional items to net
operating assets (%)
Earnings to ordinary 12 20 13
shareholders` funds (%)
Additional financial
information
Depreciation 24 447 23 862 53 618
Net interest received 12 051 19 852 31 039
Interest received 14 197 30 096 49 523
Interest paid (2 146) (10 244) (18 484)
Cash Flow Statement
Unaudited Unaudited Audited
6 Months to 6 Months to 12 Months to
September September March
2004 2003 2004
R000 R000 R000
Net cash (utilised (3 393) 61 078 90 103
by)/retained from
operations
Operating cash flow 95 724 77 504 131 896
Movement in working (78 118) (2 326) 36 365
capital
Net interest received 12 051 19 852 31 039
Taxation paid (16 438) (17 284) (49 423)
Dividends paid (16 612) (16 668) (59 774)
Net cash effect from 2 202 94 816 37 550
investing activities
Capital expenditure (53 602) (26 335) (100 923)
Disposals of fixed 55 754 1 162 10 048
assets
Disposals of businesses - 126 024 127 459
Increase/(decrease) in 50 (6 035) 966
advances
Net cash effect from (7 545) (136 225) (170 518)
financing activities
Decrease in minority (4 410) (1 016) (3 998)
interest
Net repayment of (3 135) (133 969) (164 126)
long/short term
borrowings
Decrease in stated - (1 240) (2 394)
capital
Net cash (8 736) 19 669 (42 865)
(outflow)/inflow
Foreign currency 363 (5 312) (6 157)
translation effect
(Decrease)/Increase in
cash and cash
equivalents
(8 373) 14 357 (49 022)
Cash and cash
equivalents at beginning
of period
357 444 406 466 406 466
Cash and cash
equivalents at end of
period
349 071 420 823 357 444
Balance Sheet
Unaudited Unaudited Audited
September September March
2004 2003 2004
R000 R000 R000
ASSETS
Non-current assets 387 500 399 065 414 763
Fixed and intangible 358 522 351 217 383 525
assets
Investments and advances 1 280 1 212 1 035
- associates
Deferred tax assets 25 183 37 410 27 687
Other non-interest 2 515 9 226 2 516
bearing advances
Current assets 803 577 821 076 736 566
Inventories 195 298 166 438 159 078
Trade and other 259 208 233 815 220 044
receivables
Cash and cash 349 071 420 823 357 444
equivalents
Total assets 1 191 077 1 220 141 1 151 329
EQUITY AND LIABILITIES
Capital and reserves 761 895 767 898 726 709
Ordinary shareholders` 714 922 720 574 679 681
funds
Preference share capital 3 980 3 980 3 980
Minority interest 42 993 43 344 43 048
Non-current liabilities 50 622 116 799 45 591
Deferred tax liabilities 7 087 7 120 4 107
Provisions 27 409 45 998 27 614
Long term borrowings 16 126 63 681 13 870
Current liabilities 378 560 335 444 379 029
Trade and other payables 354 422 335 444 350 518
Short term borrowings 24 138 - 28 511
Total equity and 1 191 077 1 220 141 1 151 329
liabilities
Additional financial
information
Net cash 308 807 357 142 315 063
Cash at bank, on deposit 289 921 355 473 285 162
and on hand
Interest bearing short 59 150 65 350 72 282
term advances
Cash and cash 349 071 420 823 357 444
equivalents
Long term borrowings (16 126) (63 681) (13 870)
Short term borrowings (24 138) - (28 511)
Net operating assets 487 584 463 874 443 367
Total assets 1 191 077 1 220 141 1 151 329
Trade and other payables (354 422) (335 444) (350 518)
Cash and cash (349 071) (420 823) (357 444)
equivalents
Capital commitments 43 227 23 211 32 134
authorised
Contracted for 41 970 16 850 24 612
Not contracted for 1 257 6 361 7 522
Contingent liabilities 3 263 15 071 2 015
Debtors discounted with 2 289 2 769 2 006
recourse
Operating lease - 5 903 -
guarantees
Other 974 6 399 9
Repurchase commitment on
sale contracts
where underlying
securities exceed the
outstanding commitment
amounted to R5,4 million
at 30 September 2004
(31 March 2004 - R9
million)
Operating lease
commitments
103 833 152 428 133 557
Operating lease 31 610 183 470 155 685
receivables
Investments and advances
to associates at
valuation
1 500 1 500 1 500
Net asset value per 2 156 2 173 2 050
share (cents)
Unaudited Unaudited Audited
6 Months to 6 Months to 12 Months to
September September March
2004 2003 2004
R000 R000 R000
Capital expenditure
Expansion 23 860 11 754 65 576
Replacement 29 742 14 581 35 347
Ordinary shares (000)
Issued (including 33 160 33 160 33 160
Treasury shares)
Weighted average 33 014 33 120 33 091
(excluding Treasury
shares)
Statement of Changes in Equity
Unaudited Unaudited Audited
6 Months to 6 Months to 12 Months to
September September March
2004 2003 2004
R000 R000 R000
Balance at beginning of 679 681 676 471 676 471
period
Movement in translation 7 731 (2 825) (19 599)
reserves
AC 133 adjustments - (5 455) (4 069)
Attributable earnings 44 122 70 291 89 046
for the period
Ordinary dividends (16 506) (16 562) (59 562)
Preference dividends (106) (106) (212)
Share capital purchased - (1 322) (2 477)
by subsidiary
Shares issued - 82 83
Balance at end of period 714 922 720 574 679 681
Segmental Analysis
Unaudited Unaudited Audited
6 Months to 6 Months to 12 Months to
September September March
2004 2003 2004
R000 R000 R000
Revenue
Business Segment
Automotive Manufacturing 500 055 439 113 822 954
Building Products 565 457 508 941 984 658
Discontinued operations - 29 437 72 058
Total Revenue 1 065 512 977 491 1 879 670
Geographical Location
South African operations 421 614 365 836 655 210
- local
- export 78 441 102 714 239 802
International operations 565 457 508 941 984 658
Total Revenue 1 065 512 977 491 1 879 670
Operating income before
exceptional items
Business Segment
Automotive Manufacturing 17 754 11 163 9 868
Building Products 71 606 52 596 117 216
Discontinued operations - (9 527) (14 464)
Corporate and (8 693) 1 733 (3 839)
consolidation
Total operating income 80 667 55 965 108 781
before exceptional items
Geographical Location
South African operations 9 061 3 298 (8 435)
(including exports)
International operations 71 606 52 667 117 216
Total operating income 80 667 55 965 108 781
before exceptional items
Date: 23/11/2004 04:01:10 PM
Produced by the JSE SENS Department
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