| Tue 7 Dec 2004, 13:42 | | RESULTS FOR THE SIX MONTHS ENDED 31 OCTOBER 2004 |
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Metoz Holdings Limited - Reviewed Interim Results For The Six Months Ended 31
October 2004
METOZ HOLDINGS LIMITED
(Formerly Metro Cash and Carry Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1946/021315/06)
Share code: MOZ ISIN: ZAE000057410
REVIEWED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 OCTOBER 2004
INCOME STATEMENT
Reviewed Reviewed* Audited
Six months Six months Year
ended ended ended
31 October 31 October 30 April
2004 2003 2004
R`000 R`000 R`000
Revenue 16 192 712 25 051 942 51 517 132
Continuing 16 192 712 17 073 488 35 768 172
Discontinued - 7 978 454 15 748 960
Cost of sales (15 344 214) (23 922 376) (49 206 455)
Continuing (15 344 214) (16 317 132) (34 251 717)
Discontinued - (7 605 244) (14 954 738)
Administration, human resource
and information systems costs (331 585) (442 703) (864 948)
516 913 686 863 1 445 729
Depreciation of tangible assets (71 936) (104 687) (213 302)
Operating income 444 977 582 176 1 232 427
Continuing 444 977 443 222 890 810
Discontinued - 138 954 341 617
Interest paid (38 746) (84 762) (168 848)
Income before exceptional items
and taxation 406 231 497 414 1 063 579
Exceptional items -
refer comments below 88 188 (1 671) (2 727)
Amortisation of goodwill
and other intangibles (25 391) (26 657) (57 067)
Income before taxation 469 028 469 086 1 003 785
Taxation (199 943) (159 950) (341 653)
Income after taxation 269 085 309 136 662 132
Income attributable to outside
shareholders (91 051) (118 569) (250 655)
Income attributable to ordinary
shareholders 178 034 190 567 411 477
Determination of headline earnings
Income attributable to ordinary
shareholders 178 034 190 567 411 477
Loss arising from allotment of shares
by the Australian subsidiary 1 788 1 671 2 727
Net profit on disposal of African and
South African operations (89 976) - -
Amortisation of goodwill 20 014 21 519 46 660
Headline earnings 109 860 213 757 460 864
Ordinary shares in issue (000`s)
- total 1 794 343 1 793 610 1 798 154
- weighted average 1 795 237 1 799 610 1 788 861
Headline earnings per share (cents) 6.1 11.9 25.8
Headline earnings per share adjusted for
exceptional non-recurring tax items
- see comments (cents) 10.4 11.9 25.8
Attributable earnings per share (cents) 9.9 10.6 23.0
*Restated for the effect of the consolidation of the employee share trusts
BALANCE SHEET
Reviewed Reviewed* Audited
Six months Six months Year
ended ended ended
31 October 31 October 30 April
2004 2003 2004
R`000 R`000 R`000
Assets
Non-current assets 1 404 017 2 472 504 2 492 211
Tangible assets 596 389 1 175 682 1 219 780
Intangible assets 785 395 958 217 1 058 638
Investments and loans 10 213 217 774 103 847
Deferred taxation 12 020 120 831 109 946
Current assets 5 468 201 8 052 116 8 375 563
Inventories 1 977 037 3 238 599 3 328 644
Accounts receivable 3 242 335 4 046 447 4 528 728
Short term loan 118 222 122 292 122 292
Bank balances and cash 130 607 644 778 395 899
Total assets 6 872 218 10 524 620 10 867 774
Equity and liabilities
Capital and reserves 863 635 1 702 068 2 090 920
Outside shareholders` interest 602 630 768 026 753 800
Non-current liabilities 469 602 1 185 943 717 725
Deferred taxation - 14 324 20 526
Interest bearing liabilities 380 727 1 077 345 600 608
Provisions 88 875 94 274 96 591
Current liabilities 4 936 351 6 868 583 7 305 329
Accounts payable 4 170 457 5 985 388 6 102 708
Provisions 142 344 326 759 338 122
Taxation 62 656 49 395 110 487
Interest bearing liabilities 560 894 507 041 754 012
Total equity and liabilities 6 872 218 10 524 620 10 867 774
Capital expenditure
Expended during the period 42 228 111 886 239 412
Committed or authorised 17 346 19 651 19 118
Contingent liabilities 11 268 23 701 26 285
Net asset value per share (cents) 48.1 94.8 116.3
ABRIDGED CASH FLOW STATEMENT
Reviewed Reviewed Audited
Six months Six months Year
ended ended ended
31 October 31 October 30 April
2004 2003 2004
R`000 R`000 R`000
Net cash flows from operating
activities 158 259 606 272 1 186 903
Net finance costs (38 746) (84 762) (168 848)
Taxation paid (199 120) (159 444) (265 381)
Cash inflow/(outflow) from operations (79 607) 362 066 752 674
- Continuing (79 607) 395 578 653 882
- Discontinued - (33 512) 98 792
Net cash flows used in investing
activities 70 727 (250 251) (503 878)
- Continuing 70 727 (179 045) (296 045)
- Discontinued - (71 206) (207 833)
Net cash flows used in
financing activities 41 364 (220 777) (605 643)
- Continuing 41 364 (157 508) (586 123)
- Discontinued - (63 269) (19 520)
Net increase/(decrease) in cash held 32 484 (108 962) (356 847)
Net cash resources
Cash and cash equivalents 130 607 644 778 395 899
Bank borrowings - (285 210) (284 216)
Net cash resources 130 607 359 568 111 683
STATEMENT OF CHANGES IN SHAREHOLDERS` EQUITY
Reviewed Reviewed* Audited
31 October 31 October 30 April
2004 2003 2004
R`000 R`000 R`000
Balance at beginning of period 2 090 920 1 612 067 1 612 067
Issue of ordinary shares
Share issue expenses - (3 322) (3 374)
Unallocated shares in share trust - - (83)
Accumulated surplus in share trust - - 23
Movements in distributable reserves
Income attributable to
ordinary shareholders 178 034 190 567 411 477
Movements in non-distributable reserves
Foreign currency translation reserve (266 985) (97 244) 70 810
Distribution to shareholders
(net of share incentive trusts) (1 138 334) - -
Balance at end of year 863 635 1 702 068 2 090 920
COMMENTS
With the recent successful conclusion of the management buy-out of the Group`s
non-Australian assets, the company entered a new phase in its life cycle with
ownership of a single asset, namely, 60.3% of Metcash Trading Limited,
Australasia.
This operation produced excellent results for the six months, notwithstanding
continued fierce competition from the major supermarket chains. Turnover, in
Australian Dollars, totalled A$3.5 billion, an increase of 2.23% on the previous
year. When converted to Rands, this amounted to R16.2 billion.
Earnings after taxation at A$50.1 million increased by 9.5%. Cash generated from
operations declined as a result of the implementation of a defensive strategy to
protect market share (A$30 million) and timing/payment terms variations (A$47
million). Trading results for the period have been converted to Rand at an
average rate of A$1 = R4.60 (2003 - A$1 = R4.96). The strengthening of the Rand
has effectively negated the increase in earnings achieved.
The sale of the non-Australian assets resulted in a net profit of R89 million,
disclosed as an exceptional item.
Headline earnings for the period have been distorted by the inclusion in
taxation paid of R75.9 million in respect of Capital Gains Tax and Secondary Tax
on Companies directly attributable to the management buy-out and subsequent
distribution of the net proceeds to shareholders. Accordingly, the comparable
headline earnings for the period, adjusted for these exceptional tax items, was
10.4 cents per share (2003 - 11.9 cents per share).
ACCOUNTING POLICIES
This report is prepared on the historical cost basis in accordance with South
African Statements of Generally Accepted Accounting Practice and the Group`s
accounting policies are consistent with those applied in the last annual report.
EXCEPTIONAL ITEMS
Six months Six months Year
ended ended ended
31 October 31 October 30 April
2004 2003 2004
R`000 R`000 R`000
Profit on disposal of non-Australian assets 89 976 - -
Loss arising from allotment of shares
by the Australian subsidiary (1 788) (1 671) (2 727)
88 188 (1 671) (2 727)
BORROWING CAPACITY AND INTEREST BEARING DEBT
In terms of the relevant articles of association, the Group has unlimited
borrowing powers.
Interest-bearing debt comprises -
Non-current
A$65 million (R300 million) syndicated loan for the balance of the purchase
price of the investment in the Australian subsidiary, bearing interest at
approximately 7% per annum, maturing on 30 April 2006.
R81 million in respect of leased assets, payable over five years and bearing
interest at approximately 5% per annum.
Current
R561 million, being the current portion of syndicated and securitised loans
(A$35 million and A$80 million respectively), amounts owing in respect of leased
assets and fluctuating bank borrowings, bearing interest at prime overdraft
rates or below.
HEADLINE EARNINGS
The calculation is based on 1 795 237 138 shares (2003 - 1 799 610 563 shares),
being the weighted average number of shares in issue during the period under
review, after taking cognisance of the consolidation of the share incentive
trusts.
DISTRIBUTION TO SHAREHOLDERS
The successful conclusion of the management buy-out of the Group`s non-
Australian assets resulted in a distribution to shareholders of 64 cents per
share. No further distribution or dividend is proposed at this time, but this
situation will be reviewed at the financial year end.
CAUTIONARY ANNOUNCEMENT
Shareholders are referred to the detailed cautionary announcement relating to a
proposal to acquire all the issued shares of the company at approximately R2.65
per share which appeared on SENS on Monday, 6 December 2004, and which was
published in the press today.
AUDIT REVIEW
The information set out above has been reviewed, but not audited, by the Group`s
auditors, Ernst & Young. Their unqualified review opinion is available for
inspection at the company`s registered office.
On behalf of the board
Dr F van Zyl Slabbert C S dos Santos
Chairman Chief Executive
7 December 2004
DIRECTORATE AND ADMINISTRATION
Directors: Dr F van Zyl Slabbert (Chairman)*, C S dos Santos (Chief Executive),
J L Grainger*, D Kashuv (Israel)*, B Joseph*, J R McAlpine*, G H Pieterse*, A
Reitzer, G B Rubenstein*, V D Rubin, S O Shonhiwa (Zimbabwe)*, R D Taurog*, C F
Turner* *non-executive
Group Company Secretary: P M Gishen (Miss)
Registered office: First Floor, 33 Scott Street, Waverley, Johannesburg 2090 (PO
Box 1970, Highlands North 2037)
Transfer secretaries: Computershare Investor Services 2004 (Pty) Limited,
70 Marshall Street, Johannesburg 2001 (PO Box 61051, Marshalltown 2107)
Sponsor: Sasfin Corporate Finance, a Division of Sasfin Bank Limited,
Sasfin Place, North Block, 13 - 15 Scott Street, Waverley,
Johannesburg 2090 (PO Box 95104, Grant Park 2051)
Date: 07/12/2004 01:15:13 PM
Produced by the JSE SENS Department
