| Thu 26 May 2005, 17:29 | | Results for the 12 months ended 31 March 2005 |
|
2005 and dividend announcement
WESCO INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
Registration Number 1968/005871/06
ISIN: ZAE000007928 JSE Share code: WES
(`Wesco` or `the company`)
Audited results for the 12 months ended 31 March 2005 and dividend announcement
- Good results from both Toyota South Africa and Metair Investments
- Headline earnings + 18%
- Dividend + 50%
ABRIDGED GROUP INCOME STATEMENT
Audited Audited
year ended year ended
31 March 31 March
R000 2005 2004
Revenue:
Investment income and growth 89 477 73 198
Other operating income 825 1 345
Administrative expenses (3 889) (4 430)
Other operating expenses (6 537)
Operating income 86 413 63 576
Finance costs (1 437)
Share of associates` retained income 163 911 152 835
Income before taxation 250 324 214 974
Taxation (8 289) (9 558)
Income after taxation 242 035 205 416
Minority interest (1 534) (1 341)
Net income attributable to Wesco 240 501 204 075
shareholders
Per share analysis - cents
Earnings and headline earnings 2 849 2 417
Dividends declared and paid 400 220
ABRIDGED GROUP CASH FLOW STATEMENT
Audited
Audited year ended
year ended 31 March
31 March
R000 2005 2004
Net cash inflow outflow from operating 17 629 (21 192)
activities
Investment in associate (150 000)
Short-term investments acquired (106 482) (89 587)
Decrease in cash and cash equivalents (88 853) (260 779)
Cash and cash equivalents at end of the year 97 427 186 280
ABRIDGED GROUP BALANCE SHEET
Audited Audited
31 March 31 March
R000 2005 2004
Assets
Non-current assets 1 262 229 1 099 133
Investments in associates 1 258 468 1 095 271
Property and equipment 3 761 3 862
Current assets 352 010 307 241
Total assets 1 614 239 1 406 374
Equity and liabilities
Capital and reserves 1 601 963 1 395 928
Minority interest 7 893 6 780
Deferred tax 3 752 232
Current liabilities 631 3 434
Total equity and liabilities 1 614 239 1 406 374
Net asset value per share - cents 18 977 16 536
Number of ordinary shares in issue (000) 8 441.8 8 441.8
ABRIDGED STATEMENT OF CHANGES IN EQUITY
Audited Audited
31 March 31 March
R000 2005 2004
Share capital
Balance at beginning and end of the year 11 752 11 752
Non-distributable reserve 1 049 217 886 005
Balance at beginning of the year 886 005 709 916
Dilution of interest in associate (1 880)
Movement in associates` reserves 1 181 24 305
Transfers from retained earnings 163 911 151 784
Retained earnings 540 994 498 171
Balance at beginning of the year 498 171 464 452
Net income 240 501 204 075
Dividends (33 767) (18 572)
Transfers to non-distributable reserve (163 911) (151 784)
Total capital and reserves 1 601 963 1 395 928
NOTES
1. Accounting policies
These financial statements are prepared in accordance with Statements of South
African Generally Accepted Accounting Practice, including AC127 - Interim
financial reporting. The accounting policies are consistent with those used in
the annual financial statements for the year ended 31 March 2004.
2. Associates
These results incorporate Wesco`s share of the results of the following
associates:
Interest (%)
Toyota South Africa (Pty) Ltd. (`Toyota SA`) 25.00
Metair Investments Limited (`Metair`) 39.71
Metair`s financial year-end is 31 December. Wesco`s results incorporate Metair`s
results for the year ended 31 December 2004.
3. Commitments
The company is committed in terms of a shareholders` agreement to purchase
additional equity share capital in its associate, Toyota SA, in order to fund
the latter`s capital requirements. The balance of the original commitment of
R300 million amounts to R150 million.
4. Comparatives
The group`s share of associates` taxation charge was previously reflected in the
group`s taxation charge. The line item `Share of associates retained income` in
the income statement now represents the group`s share of associates` retained
income after tax. Comparative amounts have been restated accordingly.
COMMENT
Review
South Africa`s motor industry enjoyed another good year. Economic growth, a
stable currency and relatively low interest rates boosted consumer confidence,
and resulted in the highest local annual vehicle sales ever recorded. NAAMSA
reported an increase of 22% to 449 603 units sold during the 2004 calendar year.
Toyota SA maintained its position as overall market leader in the local industry
for the 25th consecutive year. Local sales increased by 18% to a record 113 534
units, representing 25.3% of total NAAMSA-reported sales, and exports increased
by 16% to 10 812 units. Net profit improved by 7%. Toyota SA contributed R148
million to Wesco`s income, of which R29.5 million was in the form of dividends.
Metair too benefited from the favourable market conditions in general, and
recorded a very satisfactory increase of 17.7% in headline earnings, notwith-
standing pressure on export margins and volumes due to the Rand`s continued
strength. Metair`s results are fully reported in its 2004 annual report as
published earlier.
Wesco`s income and growth from other investments improved by 27% to R42.7
million, largely attributable to fair value adjustments to listed short-term
investments.
Outlook
Our economy seems set for another year of improvement. Growth in vehicle sales
and buoyant trading conditions have continued into the start of the current year
and the general outlook is positive, but it is doubtful whether last year`s
surge in local sales will be repeated.
Toyota SA should in the longer term earn returns on the substantial investment
in new products and for increased exports.
Although Metair`s turnover is expected to increase, results will continue to be
adversely affected by current exchange rates. The longer-term outlook is for
sound growth.
AUDIT REPORT
The results for the year have been audited by PricewaterhouseCoopers Inc. and
their unqualified audit report on the 31 March 2005 annual financial statements
is available for inspection at the company`s registered office.
ANNUAL REPORT
The annual report for the year ended 31 March 2005 will be mailed to
shareholders on or about 15 June 2005.
ANNUAL GENERAL MEETING
The 2005 annual general meeting will be held at the company`s registered office
on Wednesday, 20 July 2005 at 11:00.
DIVIDEND
A final dividend of 600 (2004: 400) cents per ordinary share has been declared
in terms of the dividend announcement set out below.
On behalf of the board
E Le R BRADLEY G J STRYDOM
Chairman Chief Executive Officer
Johannesburg
26 May 2005
Registered office
Wesco House, 10 Anerley Road, Parktown, Johannesburg
Telephone 011 646-3011
Facsimile 011 646-3022
Postal address
P O Box 2077, Saxonwold 2132
Registrar
Computershare Investor Services 2004 (Pty) Ltd
70 Marshall Street, Johannesburg
(P O Box 61051, Marshalltown 2107)
Sponsor
LPC Manhattan Moela (Pty) Ltd
4th Floor, South Office Tower, Hyde Park Corner, Hyde Park, Johannesburg
(P O Box 41966, Craighall 2024)
Auditors
PricewaterhouseCoopers Inc.
2 Eglin Road, Sunninghill, Johannesburg
(Private Bag X36, Sunninghill 2157)
DIVIDEND ANNOUNCEMENT
Notice is hereby given that final dividend number 36 of 600 cents per ordinary
share has been declared in respect of the financial year ended 31 March 2005. In
compliance with STRATE, the salient dates for the payment of the dividend are as
follows:
Last day to trade cum-dividend Friday, 8 July 2005
Shares commence trading ex-dividend Monday, 11 July 2005
Record date Friday, 15 July 2005
Payment date Monday, 18 July 2005
Share certificates may not be dematerialised/rematerialised between Monday 11
July 2005 and Friday 15 July 2005, both days inclusive.
On Monday 18 July 2005, the dividend will be electronically transferred to the
bank accounts of certificated shareholders who utilise this facility. In respect
of those who do not, cheques dated 18 July 2005 will be posted on or about that
date. Shareholders who have dematerialised their shares will have their
accounts, held at their CSDP or broker, credited on Monday 18 July 2005.
On behalf of the board
FDW PEACHEY
Company Secretary
Johannesburg
26 May 2005
Directorate: Executive director: G J Strydom (Chief Executive Officer)
Non-executive directors: E Le R Bradley (Chairman), R S Broadley,
A D Plummer (British), P R Robinson
Company Secretary: F D W Peachey
Date: 26/05/2005 05:21:10 PM
Produced by the JSE SENS Department
