| Tue 30 Nov 2004, 8:50 | | REPORT FOR THE SIX MONTHS ENDED 30 SEPTEMBER |
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WESCO INVESTMENTS LIMITED - INTERIM REPORT FOR THE SIX MONTHS ENDED 30 SEPTEMBER
2004
WESCO INVESTMENTS LIMITED
(`Wesco` or `the company`)
(Incorporated in the Republic of South Africa)
Registration number 1968/005871/06
JSE code WES
ISIN ZAE 000007928
Interim report for the six months ended 30 September 2004
CONDENSED GROUP INCOME STATEMENT
Audited
Unaudited 12 months
Six months ended ended
30 Sept. Change 30 Sept. 31 March
R000 2004 % 2003 2004
Revenue
Investment income 26 441 (11.7) 29 944 71 654
Administrative expenses (1 680) 20.3 (2 109) (9 622)
Operating income 24 761 (11.0) 27 835 62 032
Fair value adjustments to 11 137 1 544
financial instruments
Finance costs (1 437)
Share of associates` 120 778 11.4 108 382 237 821
retained income
Income before taxation 156 676 15.0 136 217 299 960
Taxation (46 028) (8.3) (42 483) (94 544)
Profit from ordinary 110 648 18.0 93 734 205 416
activities
Minority interest (746) (2.6) (727) (1 341)
Net income attributable to 109 902 18.2 93 007 204 075
Wesco shareholders
Per share analysis - cents
Basic earnings 1 302 18.2 1 102 2 417
Headline earnings 1 302 18.2 1 102 2 417
Dividends 400 81.8 220 220
CONDENSED GROUP CASH FLOW STATEMENT
Audited
Unaudited 12 months
six months ended ended
30 Sept. 30 Sept. 31 March
R000 2004 2003 2004
Net cash inflow (outflow) in 15 072 2 970 (21 192)
operating activities
Net cash used in investing (100 000) (150 169) (239 587)
activities
Decrease in cash and cash (84 928) (147 199) (260 779)
equivalents
Cash and cash equivalents at 101 352 299 860 186 280
end of the period
CONDENSED GROUP BALANCE SHEET
Unaudited Audited
30 Sept. 30 Sept. 31 March
R000 2004 2003 2004
Assets
Non-current assets 1 177 386 995 012 1 099 133
Investments in associates 1 173 576 991 112 1 095 271
Property and equipment 3 810 3 900 3 862
Current assets 305 689 302 927 307 241
Total assets 1 483 075 1 297 939 1 406 374
Equity and liabilities
Capital and reserves 1 471 417 1 261 610 1 395 928
Minority interest 7 094 6 185 6 780
Deferred taxation 1 903 232
Current liabilities 2 661 30 144 3 434
Total equity and liabilities 1 483 075 1 297 939 1 406 374
Net asset value per share - 17 430 14 945 16 536
cents
Number of ordinary shares in 8 441.8 8 441.8 8 441.8
issue (000)
STATEMENT OF CHANGES IN EQUITY
Audited
Unaudited 12 months
six months ended ended
30 Sept. 30 Sept. 31 March
R000 2004 2003 2004
Share capital
Balance at beginning and end 11 752 11 752 11 752
of the period
Non-distributable reserves 950 571 782 151 886 005
Balance at beginning of the 886 005 709 916 709 916
period
Net gains not recognised in 25 425
the income statement
Dilution of interest in (1 878) (1 120)
associate
Movement in associates` 1 232 1 055
reserves
Transfer from retained 65 212 71 180 151 784
earnings
Retained earnings 509 094 467 707 498 171
Balance at beginning of the 498 171 464 452 464 452
period
Net income 109 902 93 007 204 075
Dividends paid (33 767) (18 572) (18 572)
Transfer to non-distributable (65 212) (71 180) (151 784)
reserves
Total capital and reserves 1 471 417 1 261 610 1 395 928
Notes 1. Accounting policiesThese group interim financial statements are
prepared in accordance with AC127 Interim Financial Reporting and South African
Statements of Generally Accepted Accounting Practice. The accounting policies
are consistent with those used in the annual financial statements for the year
ended 31 March 2004.
2. AssociatesThese results incorporate Wesco`s share of the
Interestresults of the following associates: (%)
Toyota South Africa (Proprietary) Limited (`Toyota SA`) 25.00Metair
Investments Limited (`Metair`) 39.71Metair`s
financial year-end is 31 December. Wesco`s results incorporate Metair`s results
for the six months ended 30 June 2004.
3. CommitmentsThe company is committed in terms of a shareholders` agreement to
purchase additional equity share capital in its associate, Toyota SA, in order
to fund the latter`s capital requirements. The balance of the original
commitment of R300 million amounts to R150 million.
COMMENTResultsInvestment income was lower due to lower interest rates and a
smaller interest-bearing component of investments, with a portfolio investment
of R100 million having been made during the current period in order to improve
overall returns on surplus funds. The fair value adjustment of R11.137 million
arose on valuation of those investments at fair market value, as at the
reporting date.
Total local vehicle sales as reported by NAAMSA increased by 19.3% during the
calendar year to 30 September 2004. Passenger vehicles sales rose by 19.9%.
Toyota SA`s market share remained reasonably stable at 24.9%, with a resulting
increase in turnover and profits of 19.1% and 20.2%, respectively, during the
interim reporting period.
Metair`s turnover for the six months to June 2004, as reported earlier, does not
reflect the higher domestic vehicle market due to increased imports of built-up
vehicles and lower exports. Metair`s profit after tax increased by 3.7% to R76.3
million compared to the first half of 2003.
ProspectsMuch improved economic fundamentals have boosted local vehicle sales,
and the domestic market is approaching 20-year record levels. Given these
circumstances our outlook for the rest of the year is positive.
DividendIt is Wesco`s policy to declare only an annual dividend in respect of a
full year`s earnings. A preliminary profit and dividend announcement is expected
to be published in June 2005.
On behalf of the Board
E LE R BRADLEY GJ STRYDOMNon-
executive Chairman Chief Executive Officer
Johannesburg29 November 2004DirectorateExecutive director GJ Strydom (Chief
Executive Officer)
Non-executive (non-independent) directors E Le R Bradley (Chairman), RS
Broadley, AD Plummer (British), PR Robinson
Company SecretaryFDW Peachey
Registered officeWesco House, 10 Anerley Road, Parktown, JohannesburgTelephone
011 646 3011Facsimile 011 646 3022Postal addressPO Box 2077, Saxonwold 2132
RegistrarComputershare Investor Services 2004 (Pty) Limited70 Marshall Street,
Johannesburg (PO Box 61051, Marshalltown 2107)
SponsorLPC Manhattan Sponsors (Pty) Ltd, 4th Floor, South Office Tower,Hyde Park
Shopping Centre, Hyde Park, Johannesburg(PO Box 41966, Craighall 2024)
Auditors PricewaterhouseCoopers Inc., 2 Eglin Road, Sunninghill,
Johannesburg(Private Bag X36, Sunninghill 2157)
