| Tue 30 Nov 2004, 8:29 | | INMINS LIMITED - STATEMENT OF RESULTS AND FURTHER |
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INMINS LIMITED - STATEMENT OF RESULTS AND FURTHER CAUTIONARY ANNOUNCEMENT
INMINS LIMITED
(Registration number 1969/004321/06)
(Incorporated in the Republic of South Africa)
(Share code: INM ISIN number: ZAE000003588)
Financial Highlights
Headline earnings per share Up 13%
Statement of results
Reviewed abridged consolidated results of the Group for the year ended 30
September 2004 and further cautionary announcement
Consolidated Income Statement
Year ended
30 September
2004 2003
R`000 R`000
Revenue 440 530 461 947
Operating profit 23 206 23 743
Net finance costs (82) (1 070)
Profit before taxation 23 124 22 673
Taxation (7 736) (7 693)
Net profit after taxation 15 388 14 980
Share of earnings of associate companies 122 61
Outside shareholders` profit (15) (4)
Ordinary shareholders` profit 15 495 15 037
Headline earnings 15 236 14 879
Headline earnings per share (cents) 45,6 40,5
Earnings per share (cents) 46,4 40,9
Net asset value per share (cents) 213,4* 167,1
Weighted average shares in issue (000`s) 33 427 36 778
Shares in issue (000`s) 33 427 33 427
Dividend per share (cents) 18,0 17,1
Reconciliation of headline earnings
Ordinary shareholders` profit 15 495 15 037
Net profit on disposal of assets (293) (225)
Taxation effect thereon 34 67
15 236 14 879
Supplementary information
Capital expenditure 1 616 1 953
Depreciation 1 868 2 349
Interest bearing borrowings 3 022 10 729
Interest earning deposits 9 582 -
*The NAV per share excludes the provision for dividends declared after the year
end.
Summarised Consolidated Balance Sheet
30 September
2004 2003
R`000 R`000
ASSETS
Fixed and other non-current assets 9 255 9 608
Current assets
- Inventory 56 824 50 016
- Receivables 66 080 70 499
- Bank and cash 9 412 29
Total assets 141 571 130 152
EQUITY AND LIABILITIES
Share capital and premium 39 471 39 471
Retained income 31 860 16 365
Shareholders` interest 71 331 55 836
Outside shareholders` interest 29 14
Total equity 71 360 55 850
Non-current liabilities
- interest bearing 1 861 2 083
- deferred taxation 9 9
Current liabilities - interest bearing
- bank overdraft - 7 589
- short term borrowings 1 161 1 057
Current liabilities - non-interest bearing
- payables 62 015 56 537
- taxation 5 165 7 027
Total equity and liabilities 141 571 130 152
Summarised Consolidated Cash Flow Statement
Year ended
30 September
2004 2003
R`000 R`000
Cash flow from operating activities 18 190 2 845
Profit before interest, tax and
non-cash items 24 781 25 857
Increase in inventory (6 808) (1 240)
Decrease/(Increase) in receivables 4 420 (3 736)
Increase/(decrease) in payables 11 170 (10 079)
Cash flow from operations 33 563 10 802
Finance costs paid (net) (82) (1 070)
Taxation paid (9 598) (2 643)
Dividends paid (5 693) (4 244)
Cash flow used in investing activities (952) (1 696)
Investments in plant, equipment & vehicles (1 616) (1 953)
Proceeds from disposal of fixed asset 664 257
Cash flow used in financing activities (266) (5 753)
Buyback of own ordinary shares - (5 416)
Interest bearing borrowings repaid (119) (337)
Loans advanced (147) -
Net increase/(decrease) in cash and
cash equivalents 16 972 (4 604)
Cash and cash equivalents
at beginning of year (7 560) (2 956)
Cash and cash equivalents at end of year 9 412 (7 560)
Summarised Consolidated Statement of Changes in Equity
Year ended
30 September
2004 2003
R`000 R`000
Total shareholders` equity at beginning of year 55 836 51 908
Share buy back - (5 416)
Changes in retained income 15 495 15 037
Dividend declared during the year - (5 693)
Total shareholders` equity at end of year 71 331 55 836
Segment Information
Mining Industrial Property and
Consumables consumables other Totals
2004 2003 2004 2003 2004 2003 2004 2003
Business
segments (R`000) (R`000) (R`000) (R`000) (R`000) (R`000) (R`000) (R`000)
Turnover 321 638 343 676 118 892 118 271 - - 440 530 461 947
Operating
Profit 15 521 16 909 7 073 6 353 612 481 23 206 23 743
Depreciation 1 109 1 427 652 809 107 113 1 868 2 349
Capital
Expenditure 1 345 1 356 271 521 - 76 1 616 1 953
Total Assets 99 790 91 703 34 427 32 169 7 354 6 280 141 571 130 152
Total
Liabilities 49 625 45 532 19 376 20 359 1 210 8 411 70 211 74 302
Comments
Operational Overview
The Group set a new profit record, and increased headline earnings per share by
13% on the previous year. Due to the strengthening of the rand the Group`s added
value division encountered a difficult market with some capital expenditure on
mining projects being deferred or terminated. Notwithstanding deflationary
trading conditions due to import competition, the trading division achieved real
growth in sales volumes. The three Black Economic Empowerment joint ventures
performed well.
Review of Results
Profit after tax grew by 3% despite a lower turnover of R441 million (2003: R462
million). Headline earnings per share increased by 13% to 45,6 cents, with
33,427 million shares in issue (2003: 40,5 cents with a weighted average of
36,778 million shares in issue). Dividends per share increased by 5,3% to 18,0
cents (2003: 17,1 cents), with 33,427 million shares in issue in both instances.
Due to the increase in lead times of steel pipes, higher levels of inventory had
to be carried to ensure availability for timely completion of projects.
A major achievement was the reduction in the gearing ratio to 4,2% (2003:
19,2%).
PROSPECTS
Significant future growth in the Group will be dependent on acquisitions and/or
adding new products to the existing range. The ability to make acquisitions will
be greatly enhanced if the restructuring, referred to in the further cautionary
announcement below, takes place. Results in the 2005 financial year however, can
be expected to improve due to:
- opportunities to secure exclusive distributorships for imported products for
additional product lines;
- an extension to the added value division; and
- the development of new mines in certain areas where the Group is active.
DIVIDENDS
The Group`s policy is to declare one dividend per annum, payable in January each
year.
Notice is hereby given that a dividend of 18,0 cents (2003: 17,1 cents) per
ordinary share for the year ended 30 September 2004 has been declared on
18 November 2004 to holders of ordinary shares recorded in the share register of
the company at the close of business on 21 January 2005.
Last day to trade `cum` dividend is Friday, 14 January 2005
Shares commence trading `ex` dividend from Monday, 17 January 2005
Record date is Friday, 21 January 2005
Payment date is Monday, 24 January 2005
Share certificates may not be dematerialised/rematerialised between Monday, 17
January 2005 and Friday, 21 January 2005, both dates inclusive.
Individual shareholders to whom a dividend of less than R10,00 (ten rand) has
been declared, are reminded that in terms of a special resolution registered on
26 March 2003, such amounts shall not be paid to the individual shareholder
concerned but shall be donated to an independent charity chosen by the
directors.
ACCOUNTING POLICIES
The results for the year ended 30 September 2004 have been prepared in
accordance with the South African Statements of Generally Accepted Accounting
Practice, and with those applied in previous annual financial statements.
AUDIT
The financial information set out in these abridged consolidated group results
has been reviewed by BDO Spencer Steward (Johannesburg) Inc. Their unqualified
report is available for inspection at the company`s registered office.
CORPORATE GOVERNANCE
The Group subscribes to the value of good corporate governance and is committed
to continued implementation of the recommendations of the King II Report and the
requirements of the JSE Securities Exchange South Africa. The Group endeavours
to conduct its business in accordance with the principles of accountability,
transparency and integrity.
BLACK EMPOWERMENT
Negotiations leading to a Black Economic Empowerment transaction have taken
longer than the Board anticipated, however, discussions are advancing with
certain identified potential BEE partners, and the company expects to announce a
satisfactory transaction early in the new year.
Further Cautionary Announcement
Further to the cautionary announcements dated 26 July 2004, 6 September 2004 and
18 October 2004, relating to:
- the restructure of the Winhold Group leading to one listed entity,
- an odd lot offer to the shareholders of the remaining listed entity in order
to reduce the disproportionate costs of servicing a multiplicity of small
shareholders;
shareholders are advised that discussions are continuing and accordingly should
exercise caution when dealing in the company`s shares until a further
announcement is made in this regard.
On behalf of the board
WAR Wenteler PJ Kruger
Chairman Managing Director
30 November 2004
Directors
WAR Wenteler (Chairman), JH Henderson* (Deputy Chairman),
PJ Kruger (Managing), DG Clarke*, W Fourie (Financial), DB Mostert*,
CJ Pallas* (*Non-executive)
Company secretary and registered office
Winhold Limited (Registration number 1945/019679/06)
884 Linton Jones Street, Industries East, Germiston
(PO Box 5324, Johannesburg 2000)
E-mail: winholdsec@inmins.co.za
Website: www.inmins.co.za
Transfer secretaries
Computershare Investor Services 2004 (Pty) Limited
70 Marshall Street, Johannesburg 2001
(PO Box 61051, Marshalltown 2107)
E-mail: registrar@computershare.co.za
Auditors
BDO Spencer Steward (Johannesburg) Inc.
13 Wellington Road, Parktown 2193
(Private Bag X60500, Houghton 2041)
E-mail: bdojhb@bdo.co.za
