|
Dorbyl Limited - Group results for the year ended 31 March 2005
Dorbyl Limited
Incorporated in the Republic of South Africa
Company registration number 1911/001510/06
Share code: DLV ISIN: ZAE000002184
Group results for the year ended 31 March 2005
Income Statement
Audited Audited
Year to Year to
March 2005 March 2004 %
R000 R000 Change
Revenue 2 061 968 1 879 670 10
- continuing operations 2 003 328 1 746 758 15
- discontinued operations 58 640 132 912
Operating income before 130 643 108 781 20
exceptional profit
- continuing operations 133 411 126 018 6
- discontinued operations (2 768) (17 237)
Exceptional (loss)/profit (22 719) 27 242
Operating income 107 924 136 023
Net interest received 24 118 31 039
Preference dividends (212) (212)
Income - associates 415 384
Profit before taxation 132 245 167 234 (21)
Taxation (57 131) (70 352)
Profit after taxation 75 114 96 882 (22)
Minority interest (5 181) (8 048)
Earnings attributable to 69 933 88 834 (21)
shareholders
Earnings per share (cents)
Earnings per share 211.8 268.5 (21)
Headline earnings per share 275.6 199.3 38
Headline earnings per share
before
Secondary Tax on Companies (STC) 275.6 211.8 30
on special dividends
Dividends paid per ordinary 85 180 (53)
share (cents)
Final - year ended 31 March 2004 50 50
(2003)
Interim - period ended 30 35 30
September 2004 (2003)
Special - 17 November 2003 - 100
Dividends declared per ordinary 65 50
share - final (cents)
Exceptional (loss)/profit
(Loss)/profit on (22 719) 27 242
disposal/discontinuation of
businesses
Tax relief/(charge) attributable 80 (7 944)
to exceptional (loss)/profit
Headline earnings reconciliation
Earnings per the income 69 933 88 834
statement
Adjusted for: 21 045 (22 885)
Exceptional loss/(profit) 21 719 (27 242)
Surplus on sale of plant and (2 546) (5 125)
equipment
Tax charge attributable to 684 9 482
adjustments
Attributable to minority 188 -
shareholders
Headline earnings 90 978 65 949
STC relating to special 4 145
dividends
Headline earnings before STC on 90 978 70 094
special dividends
Diluted earnings per share
Diluted earnings per share 208.9 261.0
(cents)
Diluted headline earnings per 271.7 194.5
share (cents)
Operating income before 27 25
exceptional items to net
operating assets (%)
Earnings to ordinary 10 13
shareholders` funds (%)
Additional financial information
Depreciation 53 579 53 618
Net write down of inventory to 2 373 3 686
realisable value
Net interest received 24 118 31 039
Interest received 25 763 49 523
Interest paid (1 645) (18 484)
Balance Sheet
Audited Audited
March March
2005 2004
R000 R000
ASSETS
Non-current assets 390 077 414 763
Fixed and intangible assets 369 425 383 525
Investments and advances - associate 1 191 1 035
Deferred tax assets 19 445 27 687
Other non-interest bearing advances 16 2 516
Current assets 731 074 736 566
Inventories 192 093 159 078
Trade and other receivables 207 343 220 044
Cash and cash equivalents 331 638 357 444
Total assets 1 121 151 1 151 329
EQUITY AND LIABILITIES
Capital and reserves 762 993 722 729
Ordinary shareholders` funds 724 888 679 681
Minority interest 38 105 43 048
Non-current liabilities 52 820 49 571
Deferred tax liabilities 12 681 4 107
Preference share capital 3 980 3 980
Provisions 26 963 27 614
Long-term borrowings 9 196 13 870
Current liabilities 305 338 379 029
Trade and other payables 300 599 350 518
Short-term borrowings 4 739 28 511
Total equity and liabilities 1 121 151 1 151 329
Additional financial information
Net cash 317 703 315 063
Cash at bank, on deposit and on hand 272 488 285 162
Interest bearing short-term advances 59 150 72 282
Cash and cash equivalents 331 638 357 444
Long-term borrowings (9 196) (13 870)
Short-term borrowings (4 739) (28 511)
Net operating assets 488 914 443 367
Total assets 1 121 151 1 151 329
Trade and other payables (300 599) (350 518)
Cash and cash equivalents (331 638) (357 444)
Capital commitments authorised 19 151 32 134
Contracted for 18 986 24 612
Not contracted for 165 7 522
Contingent liabilities 2 108 2 015
Debtors discounted with recourse 1 908 2 006
Other 200 9
Repurchase commitment on sale contracts
where underlying securities exceed the
outstanding commitment amounted to R4
million at 31 March 2005 (2004 - R9
million)
Operating lease commitments 85 766 133 557
Operating lease receivables 20 342 155 685
Investments and advances to associates at 1 500 1 500
valuation
Net asset value per share (cents) 2 196 2 059
Audited Audited
Year to Year to
March 2005 March 2004
R000 R000
Capital expenditure
Expansion 49 147 65 576
Replacement 61 095 35 347
Ordinary shares (000)
Issued - net of treasury shares 33 014 33 014
Weighted average 33 014 33 091
Segmental Analysis
Audited Audited
Year to Year to
March 2005 March 2004
R000 R000
Revenue
Business segment
Automotive Manufacturing 974 244 895 012
Building Products 1 087 724 984 658
Total revenue 2 061 968 1 879 670
Geographical location
South African operations - local 776 976 655 210
- export 197 268 239 802
International operations 1 087 724 984 658
Total revenue 2 061 968 1 879 670
Operating income before exceptional
profit/losses
Business segment
Automotive Manufacturing 31 533 (4 596)
Building Products 122 468 117 216
Corporate and consolidation (23 358) (3 839)
Total operating income before exceptional 130 643 108 781
profit//losses
Geographical location
South African operations (including 8 175 (8 435)
exports)
International operations 122 468 117 216
Total operating income before exceptional 130 643 108 781
profit/losses
Cash Flow Statement
Audited Audited
Year to Year to
March 2005 March 2004
R000 R000
Net cash retained from operations 50 243 90 103
Operating cash flow 168 954 131 896
Movement in working capital (67 584) 36 365
Net interest received 24 118 31 039
Taxation paid (46 971) (49 423)
Dividends paid (28 274) (59 774)
Net cash effect from investing activities (40 283) 37 550
Capital expenditure (110 242) (100 923)
Disposals of fixed assets 63 568 10 048
Disposals of businesses 3 858 127 459
Decrease in advances 2 533 966
Net cash effect from financing activities (35 705) (170 518)
Decrease in minority interest (7 332) (3 998)
Net repayment of long/short-term (28 373) (164 126)
borrowings
Decrease in stated capital - (2 394)
Net cash outflow (25 745) (42 865)
Foreign currency translation effect (61) (6 157)
Decrease in cash and cash equivalents (25 806) (49 022)
Cash and cash equivalents at beginning of 357 444 406 466
year
Cash and cash equivalents at end of year 331 638 357 444
Statement of Changes in Equity
Audited Audited
Year to Year to
March 2005 March 2004
R000 R000
Balance at beginning of year 679 681 676 471
Movement in translation reserves 3 336 (19 599)
Adjustment on first time adoption of AC - (9 194)
133
AC 133 cash flow hedge reversals - 5 125
Attributable earnings for the year 69 933 88 834
Ordinary dividends (28 062) (59 562)
Share capital - purchased by subsidiary (2 477)
Shares issued - 83
Balance at end of year 724 888 679 681
PRELIMINARY PROFIT STATEMENT
RESULTS
Higher activity levels at both divisions resulted in an
improvement in headline earnings. Turnover at Alpine in US Dollar
terms improved by 26% and, in South Africa, Dorbyl Automotive
Technologies increased sales by 9%. This resulted in a total rise
of R182m in Group turnover, although some of this improvement was
the result of particularly high steel price increases. While
operating income followed the trend and increased by 20%, net
income before exceptional items increased by 11% or R15m, mainly
due to the impact of low interest rates on interest income.
Effective tax rates were similar to last year.
However, there was a significant adverse swing in exceptional
items. While last year reflected net exceptional profits of R27,2m
(mainly in respect of the disposal of certain operations), the
current year reflected a significant loss, (mainly due to the loss
on disposal of the Wheels business at Heidelberg (R5,6m) and legal
costs incurred in endeavouring to recover money due to the Group
in respect of a lease obligation and related costs of R17m of
which R5m is a provision for future costs).
Cash on hand/Borrowings
The net cash position at 31 March 2005 is set out below:
R million March 2005 March 2004
Net cash held by South African operations 319,9 335,1
Less: Alpine net borrowings (SA Rand) (2,2) (20,0)
Net cash 317,7 315,1
Alpine net borrowings (US Dollars) 0,4 3,2
Accounting policies and audit opinion
The financial statements have been prepared in accordance with
South African Statements of Generally Accepted Accounting Practice
(SA GAAP). These policies are consistent with those applied in the
most recent annual financial statements with the exception of the
policies relating to Secondary Tax on Companies (STC), business
combinations, goodwill and intangible assets, to comply with
recent amendments to SA GAAP. The effect of the change in policy
with regard to STC, increased net income for the year by R2.5m
(2004 - nil). The effect of the change in the other policies had
no impact on the financial statements.
The financial statements have been audited by KPMG Inc., the
auditors of the Company, whose unqualified audit opinion is
available for inspection at the registered office of the company.
Divisional Review
ALPINE - USA
Alpine has continued to grow market share, while the housing
market in the USA has remained buoyant.
Operating profit for the full year was 18%(in US dollar) higher
than the previous year. Activity levels improved, particularly at
the Equipment division in Dallas. Total turnover improved by 26%
(in US dollar). Significant increases in steel prices that were
passed through to customers were, however, a contributing factor
to the increase in turnover.
AUTOMOTIVE DIVISION - SOUTH AFRICA (DAT)
The Automotive Division improved operating profits from last years
low base. The increased activity in the motor industry was the
main contributing factor, although cost cutting initiatives and
actions taken to improve efficiencies had a favourable impact as
well.
The ongoing strengthening of the currency continued to squeeze
margins on exports and export turnover decreased by 23,5% over the
previous year. The strong Rand also impacted business in the local
aftermarket through the proliferation of cheap imports being
dumped into the country.
Following on the capital investment of R66m and R45m in the two
previous financial years, another R66m was invested this year to
support specific local and export projects. With this ongoing
investment program, the company will continue in line with DAT`s
strategic repositioning.
Subsequent event - Disposal of alpine engineered products
Further to the cautionary announcements dated 14 January, 3 March
and 14 April 2005, shareholders are advised that Dorbyl has
entered into an agreement to dispose of its 100% interest in its
Alpine Engineered Products Division. The disposal will be
implemented by means of s228 of the Companies Act, 1973 (Act 61 of
1973) (`the Act`). Further details of the transaction are set out
in the Transaction Announcement dated 27 May 2005, which has been
released and published simultaneously with this announcement.
Prospects
The section above disclosed that Dorbyl shareholders will be asked
to approve the sale of Alpine effective 1 April 2005 on the basis
of both a substantial increase in the value of the Group and an
anticipated declaration of a special dividend as a result.
Assuming that this transaction is approved, the Group`s prospects
revolve largely around its remaining local Dorbyl Automotive
Technologies (DAT) operations.
This division is benefiting from the buoyant local vehicle market,
and supply to the continuing export activities of the major South
African based vehicle manufacturers. However, DAT has suffered
locally from intense pressure from the manufacturers to resist
price increases of components, even where fully justified, while
raw material costs, especially steel, have been rising
significantly. Export margins, on the other hand, and export
opportunities have been detrimentally affected by the stronger
Rand.
While the market for locally manufactured vehicles is expected to
remain at satisfactory levels, and export vehicle volumes could
increase further, the ability to restore margins is limited with
the continuing competitive pressures. However, with the
Rand/Dollar rate having eased marginally, export profitability
will be better unless the Rand strengthens materially again. On
balance, DAT`s performance should improve.
Final Dividend No. 111
A final dividend of 65 cents per ordinary share has been declared.
The last date to trade `cum` the final dividend in order to
participate in the final dividend will be Friday 17 June 2005. The
shares of Dorbyl will commence trading `ex` the final dividend
from the commencement of business on Monday, 20 June 2005 and the
record date will be Friday, 24 June 2005. The final dividend is
payable on Monday, 27 June 2005.
No dematerialisation or rematerialisation of share certificates
may take place between Monday, 20 June 2005 and Friday, 24 June
2005, both days inclusive.
On behalf of the board
N Phillips (Chairman)
W W Cooper (Chief Executive)
27 May 2005
Transfer secretaries:
Computershare Investor Services 2004 (Pty) Limited, 70 Marshall
Street, Johannesburg 2001 (P O Box 61051, Marshalltown, 2107).
Company secretary and registered office: BD Bhikha. Dorbyl Ridge,
16 Jan Smuts Avenue, Parktown, 2193
Directors: N Phillips (Chairman)*, WW Cooper (Chief Executive),
WE BGBPhrmann*, RC Duff, JB Magwaza*, D Orwin, EJ Vorster,
T van Wyk*. * Non-executive
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
