| Wed 2 Mar 2005, 16:30 | | Results for the year ended 31 December 2004 |
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Marshalls - The unaudited reviewed results for the year ended 31 December 2004
Marshalls Limited
(Registration number: 1987/002656/06)
(Share codes: MSS/MRN
ISIN-numbers: ZAE000031225 / ZAE000031233)
Provisional report for the year ended 31 December 2004
The unaudited reviewed results for the year ended 31 December 2004 for Marshalls
Limited and its subsidiaries are as follows -
Restated
Unaudited Audited
31.12.2004 31.12.2003
R `000 R `000
INCOME STATEMENT
Confirming fees and interest
and investment income 1,540 2,000
Rental and parking income 18,486 16,105
Revenue 20,026 18,105
Operating profit before interest 5,686 5,239
Interest received 28 91
Interest paid (2,534) (3,113)
3,180 2,217
Surplus from revaluation of investment
properties 6,372 (139)
Net surplus on disposal of listed
investments 180 -
Surplus on disposal of unlisted
investments 312 -
Profit before taxation 10,044 2,078
Taxation 1,676 1,179
Profit for the year 8,368 899
Earnings per share (cents) 48.2 5.2
Headline earnings per share (cents) 12.5 5.3
Dividends per share (cents) 10.0 10.0
Dividend cover (times) 4.8 0.5
Shares in issue 17,372,300 17,372,300
Net asset value per share (cents) 410 379
Headline earnings calculation
Profit for the year 8,368 899
Surplus from revaluation of investment
properties after taxation (5,743) 27
Net surplus on disposal of listed
investments after taxation (142) -
Surplus on disposal of unlisted
investments after taxation (304) -
Headline earnings for the year 2,179 926
ABRIDGED BALANCE SHEET
Investment properties 66,573 60,138
Other investments 15,174 15,670
Property, plant and equipment 929 1,066
Deferred taxation - 762
Current assets 4,609 7,728
Bank and cash balances 3,501 3,887
Total assets 90,786 89,251
Equity and reserves 71,218 65,845
Interest bearing borrowings 15,589 16,588
Deferred taxation 39 -
Current liabilities 2,872 3,229
Bank overdraft 1,068 3,589
Total equity & liabilities 90,786 89,251
STATEMENT OF CHANGES IN EQUITY
Share Capital and share premium 26,809 26,809
Non-distributable reserves 29,336 26,709
Balance at beginning of year 26,709 33,841
As previously reported 21,324 28,381
Effect of change in accounting
policy (note 1) 5,385 5,460
Transfer to distributable reserves - (5,383)
Transfer from distributable reserves 3,454 (312)
Currency translation movement (827) (1,437)
Distributable reserves 15,073 12,327
Balance at beginning of year 12,327 7,918
As previously reported 12,207 7,868
Effect of change in accounting
policy (note 1) 120 50
Transfer from non-distributable reserves - 5,383
Profit for the year 8,368 899
Transfer of property revaluation to
non-distributable reserves (3,454) 312
Deficit on disposal of listed
investments (187) -
Deficit on revaluation of listed
investments (244) (448)
Dividends paid (1,737) (1,737)
Total equity and reserves at the end of
the year 71,218 65,845
Note 1: Effect of change in accounting policy
The effect of the change in the accounting policy is that deferred taxation that
arises from the revaluation of investment properties is measured based on the
taxation consequences that would result from the disposal of the investment
property and not on the taxation consequences that would follow from the
recovery of the carrying amount through use.
SUMMARISED CASH FLOW STATEMENT
Cash inflow / (outflow) from operating
activities 7,850 2,275
Net interest and taxation paid (3,518) (4,693)
Operating cash inflow / (outflow) 4,332 (2,418)
Dividends paid (1,737) (1,737)
Net cash inflow / (outflow) from operating
activities 2,595 (4,155)
Net cash inflow / (outflow) from investing
and financing activities (460) 2,924
Net cash inflow / (outflow) for the year 2,135 (1,231)
SEGMENTAL ANALYSIS
Revenue
Properties division 18,486 16,114
Confirming division 1,161 1,605
Investment division 379 386
20,026 18,105
Operating profit before interest
Properties division 4,636 3,956
Confirming division 903 1,252
Investment division 147 31
5,686 5,239
COMMENTS
The results for the year ended 31 December 2004 reflect operating profit, before
interest of R 5 686 000 (2003: R 5 239 000 restated). Headline earnings per
share have increased to 12.5 cents from 5.3 cents for the comparative year.
Interest paid amounted to R 2 534 000 (2003: R 3 113 000).
As previously reported the demand for leased light industrial property in Durban
has strengthened considerably since a year ago, resulting in increased rental
income. This trend is expected to continue for 2005. At present the group`s
portfolio of buildings has a vacancy level less than 5% of total rentals.
The further strengthening of the South African Rand to the US Dollar has
resulted in a lower contribution to group profits from the Confirming Division
as compared with the prior year.
CB Richard Ellis has valued the group`s property portfolio on an open market
basis as at 31 December 2004 at R 66 573 000 (2003: R 60 138 000).
The group`s portfolio of shares in listed investments held overseas reflects a
market value in South African currency of R 15 172 000 as at 31 December 2004
(2003: R 15 370 000). In sterling currency, the portfolio value has appreciated
by approximately 7% during the year under review.
These provisional financial statements have been prepared in accordance with the
South African Statements of Generally Accepted Accounting Practice consistent
with that of the prior year except for the effects of applying the
interpretation of Statements of Generally Accepted Accounting Practice SIC 21
(AC421) which forms part of the International Financial Reporting Standards.
The financial effect of the change in accounting policy resulted in a decrease
in deferred taxation in the current year of R 583 000, an increase in deferred
taxation in the prior year of R 5 000 and a reduction in the balance of deferred
taxation at the beginning of the prior year of R 5 510 000. The effect of this
change in accounting policy on non-distributable reserves and distributable
reserves is reflected in the statement of changes in equity.
Interest received in the prior year has been restated to exclude interest
received from confirming clients. Such interest has now been included in
operating profit before interest. This restatement resulted in a decrease in
interest received of R 838 000 and an increase in operating profit before
interest of the same amount.
Total dividends declared and paid for the year ended 31 December 2004 were 10,0
cents per share (2003: 10,0 cents). A final dividend of 6,0 cents per share has
been declared.
INDEPENDENT AUDITORS` REVIEW
The financial information set out in the provisional results has been reviewed,
but not audited, by the group`s auditors, Messrs. David Strachan and Tayler.
Their unqualified review report is available for inspection at the registered
office.
DIVIDEND DECLARATION
Notice is hereby given that a final dividend of 6,0 cents per ordinary share and
`N` ordinary share has been declared in respect of the year ended 31 December
2004.
In accordance with the settlement procedures of STRATE, Marshalls has determined
the last date to trade to participate in the final dividend shall be Wednesday,
23 March 2005. The shares will commence trading ex-dividend from Thursday, 24
March 2005, and the record date will be Friday, 1 April 2005.
Dividends will be paid on Monday, 4 April 2005.
Share certificates may not be dematerialised, or rematerialised, between
Thursday, 24 March and Friday, 1 April 2005, both days inclusive.
3 March 2005
BY ORDER OF THE BOARD
DC Marshall, PN Lonsdale (Directors)
Sponsor
Imara Corporate Finance South Africa (Pty) Ltd
