| Tue 7 Jun 2005, 17:15 | | Results for the six months ended 31 March 2005 |
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Winhold Limited - Statement Of Results
WINHOLD LIMITED
(Registration number 1945/019679/06)
(Incorporated in the Republic of South Africa)
(Share code: WNH) (ISIN number: ZAE000033916)
Statement of results
The board announces the unaudited consolidated results of the group
for the six months ended 31 March 2005.
Consolidated Income Statement
Year ended Six months ended
30 September 31 March
2004 2005 2004
R000 R000 R000
734 881 Revenue 404 983 353 924
44 200 Operating profit 15 254 18 287
20 Goodwill amortised 746 10
(3 907) Net finance costs (2 293) (2 175)
40 313 Profit before taxation 13 707 16 122
(11 741) Taxation (4 228) (5 316)
28 572 Net profit after taxation 9 479 10 806
Attributable to:
(6 162) - Outside shareholders` profit (2 527) (2 472)
22 410 Ordinary shareholders` profit 6 952 8 334
22 266 Ordinary shareholders` earnings 6 952 8 334
21 721 Headline earnings 6 118 8 103
Headline earnings per ordinary
23,1 share (cents) 6,3 8,6
23,6 Earnings per ordinary share (cents) 7,2 8,8
Net asset value per ordinary
107,7* share (cents) 108,3 92,9
Net tangible asset value per
115,1* ordinary share (cents) 114,6 100,4
94 197 Ordinary shares in issue (000`s) 97 045 94 197
5,2 Dividend per ordinary share (cents) - -
Reconciliation of headline earnings
22 410 Net ordinary shareholders profit 6 952 8 334
(575) Net profit on disposable of assets (142) (370)
(53) Taxation effect thereon 35 57
(20) Amortisation of goodwill (746) (10)
Minority share of profit on sale
103 of assets 23 92
(144) Preference dividend (4) -
21 721 6 118 8 103
Supplementary information
11 544 Capital commitments 5 905 -
14 281 Capital expenditure 13 492 10 768
10 353 Depreciation 5 501 5 148
42 775 Interest bearing borrowings 65 440 45 979
20 426 Interest earning deposits 9 650 7 354
*The NAV per share excludes the provision for ordinary dividends
declared after the year end and paid in January 2005.
Summarised Consolidated Statement of Changes in Equity
Year ended Six months ended
30 September 31 March
2004 2005 2004
R000 R000 R000
Shareholders` funds at
80 814 beginning of period 103 080 80 814
22 410 Changes in retained earnings 6 952 8 334
- Dividend paid - ordinary (4 898) -
(144) - preference (4) -
Shareholders` interests at end
103 080 of period 105 130 89 148
Summarised Consolidated Balance Sheet
Year ended Six months ended
30 September 31 March
2004 2005 2004
R000 R000 R000
Assets
69 513 Fixed and other non-current assets 77 225 71 238
(7 301) Negative goodwill (6 555) (7 311)
2 536 Deferred taxation 2 536 2 686
Current assets
90 017 - inventory 107 865 81 952
124 324 - receivables 122 552 134 331
20 326 - bank and cash 9 512 7 037
299 415 Total assets 313 135 289 933
Equity and liabilities
68 060 Ordinary share capital and premium 69 662 68 060
1 602 Preference share capital and premium -* 1 602
17 838 Non-distributable reserves 17 771 17 838
15 580 Retained earnings 17 697 1 648
103 080 Shareholders` interest 105 130 89 148
28 324 Outside shareholders` interest 28 463 24 634
131 404 Total equity 133 593 113 782
Non-current liabilities
12 728 - interest bearing 17 505 13 213
1 448 - interest free 1 520 1 573
818 - deferred taxation 809 1 467
Current liabilities - interest
bearing
16 443 - bank overdraft 32 286 19 574
13 604 - short-term borrowings 15 648 13 192
Current liabilities - interest free
114 997 - payables 111 135 123 130
7 973 - taxation 639 4 002
299 415 Total equity and liabilities 313 135 289 933
*See note under commentary.
Summarised Consolidated Cash Flow Statement
Year ended Six months ended
30 September 31 March
2004 2005 2004
R000 R000 R000
Cash flow (used in)/from
25 687 operating activities (20 371) 5 986
Profit before interest, tax and
53 995 non-cash items 20 721 23 202
(15 905) Increase in inventory (17 848) (7 840)
(11 649) Decrease/(increase) in receivables 1 772 (21 656)
23 878 (Decrease)/increase in payables (3 718) 32 227
50 319 Cash flow from operations 927 25 933
(3 907) Finance costs net (2 293) (2 175)
(15 017) Taxation paid (11 571) (12 064)
(5 708) Dividends paid (7 434) (5 708)
Cash flow used in investing
(13 262) activities (13 038) (9 983)
(14 281) Investment in fixed assets (13 492) (10 768)
Proceeds from disposal of
1 019 fixed assets 454 785
4 632 Cash flow from financing activities 6 752 4 634
9 666 Interest bearing borrowings raised 9 927 7 115
(4 765) Interest bearing borrowings repaid (3 142) (2 178)
(269) Loans advanced (33) (303)
Net (decrease)/increase in cash
17 057 and cash equivalents (26 657) 637
Cash and cash equivalents at
(13 174) beginning of period 3 883 (13 174)
Cash and cash equivalents at
3 883 end of period (22 774) (12 537)
Segment Information
Business segments
Mining Industrial Property
consum- consum- Flexible and
(R`000) ables ables plastics other Totals
Turnover 12 mths to 321 638 118 892 294 351 - 734
Sept 2004 881
6 mths to 182 156 63 273 159 554 - 404
March 2005 983
6 mths to 161 914 57 022 134 988 - 353
March 2004 924
Operating 12 mths to 15 521 7 073 21 127 479 44 200
Sept 2004
profit 6 mths to 6 267 3 047 6 069 (129) 15 254
March 2005
6 mths to 6 178 2 671 9 498 (60) 18 287
March 2004
Depreciation 12 mths to 1 109 652 8 203 389 10 353
Sept 2004
6 mths to 542 341 4 446 172 5 501
March 2005
6 mths to 555 328 4 084 181 5 148
March 2004
Capital 12 mths to 1 345 271 12 630 35 14 281
Sept 2004
expenditure 6 mths to 571 7 45 12 129 47 13 492
March 2005
6 mths to 310 164 10 278 16 10 768
March 2004
Total 12 mths to 99 790 34 427 153 625 11 573 299
Sept 2004 415
assets 6 mths to 103 818 32 818 163 062 13 437 313
March 2005 135
6 mths to 94 715 33 500 152 446 9 272 289
March 2004 933
Total 12 mths to 49 625 19 376 94 532 4 478 168
Sept 2004 011
liabilities 6 mths to 59 184 17 326 96 267 6 765 179
March 2005 542
6 mths to 50 208 19 067 99 790 7 086 176
March 2004 151
Comments
Review of results
Revenue grew by 14,4% to R405 million (2004: R354 million),
operating profit fell by 16,6% and profit after tax by 12,3%.
Ordinary shareholders earnings declined by R1,38 million to R6,95
million (2004: R8,33 million), and headline earnings declined by
R1,985 million to R6,1 million (2004: R8,1 million ).
The automatic conversion of preference shares to ordinary shares
effective from 1 October 2004, increased the number of ordinary
shares in issue by 2 847 596 to 97 044 900 (2004: 94 197 304) and
contributed to the fall in earnings per share. Earnings per share
decreased by 18,2% to 7,2 cents per shares (2004: 8,8 cps). Headline
earnings per share decreased by 26,7% to 6,3 cents per share (2004:
8,6 cps). During the reporting period there was a net cash outflow
of R26,7 million, increasing the gearing to 62%.
The cashflow from operations was adversely affected by:
Inventory - increases in raw materials at Gundle due to the need to
import in order to overcome local shortages.
- increases in pipe stocks forced by extended lead times from
suppliers, and for the requirements to service new contracts.
Payables - decreases arose as credit terms on imports were not as
favorable as those traditionally enjoyed from local suppliers.
Further outflow occurred due to repayment of long term borrowings,
and investment in plant and equipment not financed.
Gearing should reduce as inventory levels normalise.
The Gundle Group (100% owned) - the revenue increased by 18,2% to
R159,6 million (2004: R135,0 million). Net profit declined by 41,8%.
During the first four months of this financial year the Gundle
businesses performed substantially better than during the same
period last year, however, the last two months of the current six
month period fell far below expectations. Demand for manufactured
products softened considerably during February and March 2005.
During the same two months last year, record sales were achieved in
anticipation of rising raw material prices. This did not re-occur.
The two long weekends this year in March, affected demand and
production adversely.
The cost of higher stockholding and debtor financing increased
considerably as raw material prices, rose by 50% since 1 April 2004.
As these increases could not be passed on fully to the customers,
margins decreased.
The Inmins Group (60% owned) - Inmins managed in difficult times to
retain its profitability for the six months to 31 March 2005, with a
slight improvement in earnings versus that of the comparative
period. The revenue increased by 12,1% to R245,4 million (2004:
R218,9 million). Whilst net profit rose marginally by 2,3% to R6,35
million (2004: R6,21million).
Prospects
The board is still confident of good growth opportunities in the
medium term. Indications are that improvements should be seen in the
future due to:
* increased demand for flexible plastic products;
* normalisation of local polymer supplies by Sasol Polymers, with
consequent stock reductions being implemented;
* the commissioning of two major capital projects in Gundle that
will enhance capacity and improved quality on certain products with
possible increase in new business;
* the delisting of Inmins with consequent cost savings;
* prospects of concluding a BEE deal in the near future.
Dividends
In line with the Group policy, no interim dividends have been
declared.
Accounting policies
The results for the six months ended 31 March 2005 have been
prepared in accordance with the South African Statements of
Generally Accepted Accounting Practice, the requirements of the
South African Companies Act, the Listing Requirements of the JSE
Securities Exchange South Africa and with those applied in previous
financial periods.
Corporate Governance
The Group subscribes to the value of good corporate governance and
is committed to continue implementation of the recommendations of
the King II Report and the requirements of the JSE Securities
Exchange South Africa. The Group endeavours to conduct business in
accordance with the principles of accountability, transparency and
integrity.
Black Empowerment
Discussions are advancing with a certain potential BEE partner, and
the company expects to make an announcement in the near future.
PREFERENCE SHARE CONVERSION
The automatic conversion of the preference shares has taken place,
as announced to shareholders on 21 January 2005, resulting in the
issue of an additional 2 847 596 ordinary shares.
ACQUISITION OF INMINS MINORITIES
Subsequent to the above reporting period ended 31 March 2005, the
interests of the minorities of Inmins Limited were acquired by
Winhold Limited, by way of a share swop of 2,2 Winhold Limited
shares for each Inmins Limited share. This has resulted in the issue
of an additional 29 170 234 ordinary shares in Winhold Limited, with
Inmins Limited being delisted as from 23 May 2005 and becoming a
wholly owned subsidiary of Winhold Limited. Full details of the
transactions relating hereto can be reviewed on the Group`s websites
www.winhold.co.za and www.inmins.co.za.
On behalf of the board
WAR Wenteler JH Henderson
Chairman Deputy Chairman
7 June 2005
Directors
WAR Wenteler (Chairman), JH Henderson (Deputy Chairman)*, W Fourie
(Financial), PJ Kruger, DB Mostert*, CJ Pallas*
*(Non-executive)
E-mail: winholdsec@inmins.co.za
Website: www.winhold.co.za
Company secretary and registered office
DJ de Villiers
884 Linton Jones Street, Industries East, Germiston
(PO Box 5324, Johannesburg 2000)
E-mail: davedevilliers@inmins.co.za
Transfer secretaries
Computershare Investor Services 2004 (Pty) Limited
70 Marshall Street, Johannesburg 2001
(PO Box 61051, Marshalltown 2107)
E-mail: registrar@computershare.co.za
Auditors
BDO Spencer Steward (Johannesburg) Inc
13 Wellington Road, Parktown 2193
(Private Bag X60500, Houghton, 2041
E-mail: bdojhb@bdo.co.za
Date: 07/06/2005 05:10:23 PM
Produced by the JSE SENS Department
