| Mon 21 Feb 2005, 9:24 | | Interim results for the six months ended 31 Decemb |
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Gencor Limited - Interim results for the six months ended 31 December 2004
GENCOR LIMITED
Incorporated in the Republic of South Africa
Registration number 1895/001232/06
ISIN code: ZAE000013066
Share code: GMF
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2004
INCOME STATEMENT
6 months to 6 months to 12 months to
31 December 31 December 30 June
2004 2003 2004
(R million) Unaudited Unaudited Audited
Net interest income 2.6 4.5 7.6
Net corporate costs (1.9) (2.7) (4.8)
Forfeited dividends 0.2 0.2 0.6
Provisions written back - 5.0 16.5
Profit before taxation 0.9 7.0 19.9
Normal taxation (0.3) (1.0) (1.6)
Attributable profit 0.6 6.0 18.3
Earnings per share
Earnings per share is calculated
on the weighted average number
of shares in issue (m) 348.6 348.6 348.6
and is based on attributable
income of (Rm) 0.6 6.0 18.3
Basic, diluted and headline 0.2 1.7 5.2
earnings (cps)
Dividends per share declared and 3.0 - 3.0
paid (cps)
STATEMENT OF CHANGES IN SHAREHOLDERS` EQUITY
6 months to 6 months to 12 months to
31 December 31 December 30 June
2004 2003 2004
(R million) Unaudited Unaudited Audited
Opening balance 80.5 72.7 72.7
Attributable income 0.6 6.0 18.3
Distributions to ordinary (10.5) - (10.5)
shareholders
Total shareholders` equity 70.6 78.7 80.5
BALANCE SHEET
As at As at As at
31 December 31 December 30 June
2004 2003 2004
(R million) Note Unaudited Unaudited Audited
Current assets 1 77.6 101.4 90.0
Capital and reserves 70.6 78.7 80.5
Current liabilities and 7.0 22.7 9.5
provisions
Total equity and liabilities 77.6 101.4 90.0
CASH FLOW STATEMENT
6 months to 6 months to 12 months to
31 December 31 December 30 June
2004 2003 2004
(R million) Note Unaudited Unaudited Audited
Operating cash flows (1.9) (4.0) (5.4)
Dividends paid (10.5) - (10.5)
Net cash from operating (12.4) (4.0) (15.9)
activities
Other corporate activities 0.3 0.3 0.7
Net decrease in cash (12.1) (3.7) (15.2)
Closing cash balance 1 75.2 98.8 87.3
VALUATION
As at As at As at
31 December 31 December 30 June
2004 2003 2004
Unaudited Unaudited Audited
Number of Gencor shares in issue 348.6 348.6 348.6
(m)
Gencor`s closing share price on JSE 17 13 13
(cents)
Gencor`s market capitalisation (Rm) 59.3 45.3 45.3
Net asset value per Gencor share 20 23 23
(cents)
NOTES TO THE FINANCIAL STATEMENTS
1. R35 million of Gencor`s cash is set aside as security for a rehabilitation
claim, as indicated under the commentary.
2. The accounting policies used by the group are in accordance with Statements
of South African Generally Accepted Accounting Practice and are consistent with
those used in the previous year.
COMMENTARY
1. Settlements: In 2003 two settlement agreements were reached with potential
claimants for compensation for asbestos-related diseases that arose or that may
arise as a result of exposure to asbestos from mines operated by companies in
which Gencor had previously had an interest. Consequent upon the successful
unbundling of Gencor`s entire investment in Impala Platinum Holdings Limited
(`Implats`) in June 2003, without any admission of liability and in full and
final settlement, Gencor paid an amount of R378 million into the Asbestos Relief
Trust (`ART`) and an amount of R42.5 million into a trust account kept by United
Kingdom lawyers representing a defined group of claimants. In addition, Gencor
paid R40 million into its lawyers` trust account to cover any potential
rehabilitation claims that may be made over the three years following the
settlement agreements, after which any residual amount will revert to the ART.
2. Rehabilitation Claims: Subsequent to the execution of the two asbestos
settlements referred to above, Gencor also concluded an agreement with the
Government relating to rehabilitation issues. In November 2004, with the consent
of the ART and in terms of this agreement with Government, Gencor, without any
admission of liability, transferred an amount of R35 million of the R40 million
set aside for rehabilitation claims to a trust administered by the Department of
Mineral and Energy Affairs in full and final settlement of any rehabilitation
claims that the Government may have against Gencor.
Gencor and others received a claim in July 2003 for rehabilitation (either to
rehabilitate certain areas of land or to pay R63.4 million therefor) from the
Bareki Tribal Authority and the Nkululeko Environmental and Development Group.
The directors do not believe that Gencor is liable for this claim but, to
facilitate the unbundling of Implats, Gencor set aside an amount of R35 million
of its cash resources by way of security. In December 2004, the plantiffs
effected an amendment to the claim. Broadly, the plaintiffs do not now seek to
recover monies from Gencor and others, including Government, but an order from
the Court that these parties be directed to take reasonable meassures to rectify
the areas of land which are alleged to have been polluted. The plaintiffs now
estimate that the fair and reasonable costs of such measures are in the amount
of R64.2 million. The directors remain of the belief that Gencor is not liable
for this amended claim. Gencor is dealing with the amended claim in the ordinary
course of business.
3. Cash: Gencor`s major asset comprises cash of R75 million (December 2003: R99
million), of which R35 million has been set aside by way of security for a
rehabilitation claim (see above).
4. Results: Gencor`s attributable income for the six months ended 31 December
2004 amounted to R0.6 million, a decrease of 90% on the R6.0 million reported in
the previous financial year.
Interest revenue totalled R2.6 million compared to the R4.5 million posted last
year and net corporate costs of R1.9 million were recorded (R2.7 million in
2003). R5.0 million other income arose last year from provisions written back.
5. Listing: The JSE has agreed that Gencor`s listing continue, but will review
the situation again in June 2005.
6. The Way Ahead: The Board will advise shareholders of future plans regarding
the possible voluntary liquidation of Gencor as soon as finality is reached on
the remaining unresolved issues.
For and on behalf of the Board
AS du Plessis (Chairman) Johannesburg
WE Buhrmann (Director) 17 February 2005
REGISTERED OFFICE
KPMG Crescent, North Wing, First Floor
85 Empire Road, Parktown 2193
POSTAL ADDRESS
Postnet Suite 222, Private Bag X30500
Houghton 2041
COMPANY SECRETARY J Marais
JSE SPONSOR Investec Bank Limited
REGISTRARS
Computershare Investor Services 2004 (Pty) Limited
Tel: (011) 370-5000 Fax: (011) 688-5216
70 Marshall Street, Johannesburg 2001
P O Box 61051, Johannesburg 2000
UK SHAREHOLDER ADMINISTRATION
Project Consultants Limited
Tel: +44 (01295) 690180 Fax: +44 (01295) 690181/2
Walnut House, Walnut Gardens, Claydon,
Banbury, Oxon OX17 1NA
Date: 21/02/2005 08:00:31 AM
Produced by the JSE SENS Department
