| Wed 18 May 2005, 17:18 | | RESULTS FOR THE YEAR ENDED 31 MARCH 2005 |
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Invicta - Audited Group Results For The Year Ended 31 March 2005
INVICTA HOLDINGS LIMITED
Incorporated in the Republic of South Africa
(Registration number 1966/002182/06)
(Share code: IVT)
(ISIN code: ZAE000029773)
(`Invicta` or `the group`)
* Dividend up 17%
* Earnings per share up 16%
AUDITED GROUP RESULTS FOR THE YEAR ENDED 31 MARCH 2005
INCOME STATEMENT
2005 2004 %
R`000 R`000 Change
Revenue 1 937 593 2 069 163 (6)
Operating profit 231 117 229 451 1
Interest received 8 758 6 093
Finance costs 15 506 26 607
Profit before taxation 224 369 208 937 7
Taxation 75 166 70 787
Profit after taxation 149 203 138 150 8
Outside shareholders` interest 40 446 38 519
Earnings attributable to ordinary
shareholders 108 757 99 631 9
Determination of headline earnings
Attributable earnings 108 757 99 631
Adjustments - after taxation and
minority interests where applicable
- Goodwill amortisation - 1 733
- Profit on disposal of investment (5 882) (1 583)
- Profit on disposal of property,
plant and equipment (444) (839)
Headline earnings 102 431 98 942
Shares in issue
Weighted average (000`s) 57 258 60 571
At the end of the year (000`s) 57 884 57 463
Weighted average including diluted
shares (000`s) 57 258 62 619
Headline earnings per share (cents) 179 163 10
Earnings per share (cents) 190 164 16
Diluted headline earnings per share
(cents) 179 159 13
Diluted earnings per share (cents) 190 160 19
Dividends per share* (cents) 77 66 17
Interim 31 20 55
Final 46 46 -
* In accordance with AC107, the final dividend of 46 cents per share proposed by
the directors has not been reflected in the annual financial statements.
BALANCE SHEET
2005 2004
R`000 R`000
ASSETS
Non-current assets 164 393 142 719
Property, plant and equipment 105 791 102 922
Investments 202 -
Intangible assets 30 103 11 454
Deferred taxation 22 609 22 655
Long-term receivables 5 688 5 688
Current assets 813 703 825 127
Inventories 553 030 501 476
Accounts receivable 224 889 247 718
Cash and cash equivalents 35 784 75 933
978 096 967 846
EQUITY AND LIABILITIES
Capital and reserves 510 899 483 257
Ordinary shareholders` funds 354 568 312 339
Outside shareholders` interest 156 331 170 918
Non-current liabilities 12 821 11 642
Long-term borrowings 12 821 11 642
Current liabilities 454 376 472 947
Bank borrowings 9 681 41 745
Short-term borrowings 6 421 3 027
Other payables 438 274 428 175
978 096 967 846
CASH FLOW STATEMENT
2005 2004
R`000 R`000
Cash flows from operating activities
Cash generated from operations 197 169 285 247
Finance costs (15 506) (26 607)
Dividends paid (63 228) (48 904)
Taxation paid (91 810) (96 961)
Interest received 8 758 6 093
Net cash inflow from operating activities 35 383 118 868
Cash flows from investing activities
Net cash effects of asset acquisitions (24 302) (21 310)
Net cash effects of investing activities (1 753) 5 453
Cash flows from financing activities
Net cash effects of share capital repurchased (30 608) (103 054)
Net cash effects of shares issued 8 944 5 286
Net cash effects of borrowings raised 4 251 6 344
Net (decrease) increase in cash and cash
equivalents (8 085) 11 587
Cash and cash equivalents at the beginning of
the year 34 188 22 601
Cash and cash equivalents at the end of the
year 26 103 34 188
STATEMENT OF CHANGES IN EQUITY
2005 2004
R`000 R`000
Share capital
Balance at the beginning of the year 2 873 3 642
Net shares issued (repurchased) 21 (769)
Balance at the end of the year 2 894 2 873
Share premium
Balance at the beginning of the year 28 037 125 036
Net shares repurchased (21 685) (96 999)
Balance at the end the year 6 352 (28 037)
Accumulated profits
Balance at the beginning of the year 281 429 214 987
Earnings attributable to ordinary shareholders 108 757 99 631
Dividends paid (44 864) (33 189)
Balance at the end of the year 345 322 281 429
Accounting policiesThe principal accounting policies, except as set out below,
as outlined in the 2004 annual report, have been consistently applied. The
annual financial statements have been prepared in accordance with South African
Statements of Generally Accepted Accounting Practice. These results have been
prepared in terms of AC127.
Change in accounting policy
In accordance with AC140, goodwill arising from business combinations is not
amortised. This change has been applied prospectively.
2005 2004
Other information
Depreciation and amortisation (R`000) 22 156 23 273
Net asset value per share (cents) 612,5 543,5
Tangible net asset value per share (cents) 560,5 523,6
GROUP ACTIVITIES
The Invicta group is a major regional importer and distributor of:
* Bearings, belts, seals, power transmission products and geared motors (Bearing
Man)
* Agricultural machinery and equipment (Northmec)
* Construction and earthmoving equipment, turf grooming equipment and golf
utility cars (CSE)
* Automotive engine spares (Autobax)
FINANCIAL OVERVIEW
We are pleased to announce another solid set of results for the Invicta group.
Turnover in continuing operations increased by 5%, although aggregate turnover
declined by 6%, attributable to the disposal of Engineparts on 1 April 2004.
operating profit grew by 7% to R231million and earnings attributable to ordinary
shareholders increased by 9% to R109million. Headline earnings per share
increased by 10% to 179 cps.
All divisions traded satisfactorily with an outstanding performance by our
agricultural machinery division. Bearing Man Limited (`Bearing Man`) grew its
net profit after tax by 10%, a good performance in a difficult market.
The year was characterised by the continuing strong Rand, but the group was able
to counter this with an overall increase in volumes sold. Cash generated by
operations was lower than the prior year, as a result of greater investment in
working capital.
PROSPECTS
Invicta anticipates a challenging year. Group companies are trading
satisfactorily, although we are beginning to feel the effects of the expected
downturn in the agricultural machinery sector. The Rand is expected to remain
strong in the next 12 to 18 months.
The group recently announced its intention to make an offer to minorities in
Bearing Man (see further cautionary announcement below). The transaction will
make it possible to restructure and streamline the companies in the group, and
introduce a Black Economic Empowerment partner. These factors coupled with the
group`s continual search for suitable acquisitions, should balance the effects
or the anticipated challenging trading conditions.
BLACK ECONOMIC EMPOWERMENT
On 25 February 2005, Bearing Man withdrew its cautionary announcement relating
to the proposed investment by a Black Economic Empowerment (`BEE`) partner.
Invicta`s offer to minorities in Bearing Man will enable Invicta to empower the
entire group. Immediately after all the formalities have been finalised in
regard to the Bearing Man minorities, priority will be given to speeding up the
introduction of BEE partners. A staff empowerment scheme will form part of this
initiative, and will be finalised as soon as possible.
For and on behalf of the boardCH Wiese
A GoldstoneChairman Managing
Director
Cape Town18 May 2005DIVIDENDNotice is hereby given that a final dividend of 46
cents per share has been declared. The last day to trade (`CUM` the dividend) in
order to participate in the dividend will be Friday, 3 June 2005.
The shares of Invicta will commence trading `EX` the dividend from Monday, 6
June 2005 and the record date will be Friday, 10 June 2005.
The dividend will be paid to members on Monday, 13 June 2005.
Share certificates may not be dematerialised or rematerialised between Monday, 6
June 2005 and Friday, 10 June 2005, both days inclusive.
In accordance with AC 107, the final dividend of 46 cents per share proposed by
the directors as shown in the share information has not been reflected in the
financial statements.
FURTHER CAUTIONARY ANNOUNCEMENT
Further to the cautionary announcement dated 13 April 2005 in respect of the
company`s firm intention to make an offer to acquire all the Bearing Man shares
that it does not already own, shareholders are advised to continue to exercise
caution when dealing in the securities of Invicta until a further announcement
is made.
By order of the boardC BarnardSecretary
Johannesburg18 May 2005AUDIT REPORTThe auditors, Deloitte & Touche, have issued
their opinion on the group`s financial statements for the year ended 31 March
2005. A copy of their unqualified report and these results are available for
inspection at the company`s registered office.
Segment information on these businesses is presented below:
Engineering Automotive
consumables spares
R`000 R`000
2005 2004 2005 2004 2005
Revenue 1 048 087 1 009 305 - 295 890 889 506
Operating income -
before finance
costs and interest
received 153 879 148 356 24 920 76 806
Balance sheet
Assets 579 743 529 587 - 131 625 557 439
Liabilities 246 799 196 626 - 128 018 311 408
Capital Non-segment Consoli-
Equipment allocations dated
and R`000 R`000
spares
R`000
2004 2005 2004 2005 2004
Revenue 763 968 - - 1 937 593 2 069 163
Operating income
before finance
costs and
interest
received 63 040 432 (6 865) 231 117 229 451
Balance sheet
Assets 396 524 (158 306) (89 890) 978 876 967 846
Liabilities 218 644 (90 230) (58 699) 467 977 484 589
No segment information is reported for the Automotive spares segment for the
current year due to the sale of Engineparts (Pty) Ltd and due to the change in
the nature of the other segmentee`s operations.
Geographical segments:The group has not reported segment information by
geographical location as the operations occur substantially within Southern
Africa.
Registered Office: Invicta Holdings Limited, Unit 1A, Ground Floor, Seardel
House, Alphen Park, Constantia Main Road, Constantia 7806
PO Box 89, Constantia 7848
Transfer Secretaries: Computershare Investor Services 2004 (Pty) Ltd, 70
Marshall Street, Johannesburg 2001. PO Box 61051, Marshalltown, 2107
Directors: Dr CH Wiese*, A Goldstone, M Rose-Innes*, DI Samuels*
SPONSOR: Deloitte & Touche Sponsor Services (Pty) Ltd
AUDITOR: Deloitte & Touche Registered Accountants and Auditors, Chartered
Accountants (SA)
* Non-executive
www.invictaholdings.co.za
Date: 18/05/2005 05:01:36 PM
Produced by the JSE SENS Department
