| Mon 28 Feb 2005, 16:25 | | Results For The 6 Months Ended 31 Dec 04 |
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Bowler Metcalf Limited - Abridged Unaudited Results For The 6 Months Ended 31
December 2004
BOWLER METCALF LIMITED
(Registration number 1972/005921/06)
Share code: BCF ISIN: ZAE000030797
Revenue + 23%
Headline Earnings + 14%
Proposed Dividends + 13%
Net Asset Value +24%
ABRIDGED UNAUDITED RESULTS FOR THE 6 MONTHS ENDED 31 DECEMBER 2004
Rmil 31/12/2004 31/12/2003 30/06/2004
BALANCE SHEET
Property, plant and 139.9 111.0 133.8
equipment
Goodwill 5.1 4.0 5.5
Current assets 122.2 92.6 85.9
Total assets 267.2 207.6 225.2
Total Equity 154.4 125.4 137.7
Minority interest 6.6 4.4 4.6
Deferred tax 8.0 7.9 8.6
Long term liabilities 12.3 11.8 12.3
Current liabilities 85.9 58.1 62.0
Total equity and 267.2 207.6 225.2
liabilities
CHANGES IN EQUITY
Opening balance 137.7 109.0 101.9
Net profit 22.4 19.9 50.7
Dividends paid -5.7 -3.7 -15.1
Shares issued - 0.2 0.2
Total Equity 154.4 125.4 137.7
Share capital 11.0 11.1 11.0
Distributable reserve 143.4 116.8 126.7
CASH FLOW
Operating activities -4.3 35.0 52.6
Investing activities -15.9 -38.6 -72.1
Financing activities - 2.8 15.9
Net cash flow -20.2 -0.8 -3.6
Opening balance -0.4 3.2 3.2
Closing balance -20.6 2.4 -0.4
INCOME STATEMENT
Revenue 172.5 140.0 366.7
Other income 2.0 1.7 5.1
Operating costs -127.6 -103.6 -272.1
Depreciation -9.8 -7.8 -22.0
Net interest -1.1 -0.5 -1.1
Net profit before tax 36.0 29.8 76.6
Income tax expense -11.6 -9.4 -24.8
Net profit after tax 24.4 20.4 51.8
Associated Company loss - -0.4 -0.3
Minority interest -2.0 -0.1 -0.8
Net profit 22.4 19.9 50.7
EARNINGS PER SHARE
Earnings (cents) 25.81 22.9 58.44
Goodwill amortised 0.35 - 2.6
(cents)
Sale of assets (cents) - - -1.87
Headline earnings (cents) 26.16 22.9 59.17
Dividend per share paid 6.6 4.3 17.4
(cents)
Dividend per share 7.8 6.9 17.8
proposed (cents)
Dividend cover (times) 3.35 3.32 3.32
Shares in issue (million) 86.794 86.882 86.763
COMPARATIVES
Comparative figures are for the eighteen month period 1 January 2003 to 30 June
2004.
DIVIDEND DECLARATION
A final dividend of 7.80c per share has been declared (31/12/03 : 6.90c) and is
payable to shareholders on Monday, 11 April 2005. The last day to trade will be
Friday, 1 April 2005. `Ex` dividend trading begins on Monday, 4 April 2005 and
the record date will be Friday, 8 April 2005. Share certificates may not be
dematerialised or re-materialised between Monday, 4 April 2005 and Friday, 8
April 2005, both days inclusive.
COMMENT
The group revenue increase of 23.2% was encouraging, considering that Amcos
Cosmetics dropped by 42%. Packaging revenue registered a 25% gain, but the
translation to bottom-line was muted by unprecedented increases in raw material
prices (average 30%) which were only partially recovered. A reversal of this
trend has occurred in 2005. Capitalizing on currency strength, R39m of new
equipment was purchased over the last year for cash, resulting in the
depreciation expense increasing by 24% to R9.7m and a loss of interest income,
further eroding operating margins in the short term.
The 2003/4 reengineering at Quality Beverages bore fruit and the company traded
strongly turning the previous loss into a R4m profit. The carbonated soft drink
market has maintained an encouraging growth as higher levels of disposable
income are available to abroader band of the population.
Amcos Cosmetics is currently in an intense restructuring phase with the
completion of a new 7500m2 production facility in Midrand scheduled for April
2005. The half year loss of R600 000 was budgeted for and I do not anticipate
that the full year will show a profit. The benefits of the changes will however
be felt in the second half of 2005 and thereafter. Despite Rand strength, some
encouraging high value added exports have been forthcoming from Amcos Cosmetics.
The group remains well positioned to meet the opportunities of the future.
H.W. SASS (Chairman)
M. BRAIN (Managing Director)
Cape Town, 25 February 2005
AUDITORS
Moores Rowland
Registered Auditors and Accountants
Chartered Accountants (SA)
27th Floor, 1 Thibault Square, Cape Town, 8001
TRANSFER SECRETARIES
Computershare Investor Services 2004 (Pty) Ltd
P.O. Box 61051, Marshalltown, 2107
SPONSOR
LPC Manhattan Sponsors (Pty) Ltd
4th Floor, Hyde Park Corner
Jan Smuts Avenue, Hyde Park, Johannesburg, 2196
