| Wed 10 Aug 2005, 9:16 | | Interim Results For The Period Ended 30 June 2005 |
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Marshalls - Unaudited Interim Results For The Period Ended 30 June 2005 And
Dividend Declaration
Marshalls Limited
(Incorporated in the Republic of South Africa)
(Registration number 1987/002656/06)
Share code: MSS
ISIN numbers: ZAE000066684
Unaudited interim results and dividend declaration for the six months ended 30
June 2005
Six months Six months Year ended
ended ended 31.12.2004
30.06.2005 30.06.2004 R`000
R`000 R`000 Audited
Restated
SUMMARISED INCOME STATEMENT
Confirming fees and interest and 621 803 1,450
investment income
Rental and parking income 8,803 8,355 17,184
Revenue 9,424 9,158 18,634
Operating profit before interest 2,821 2,577 5,686
Interest received 38 11 28
Interest paid (1,119) (1,282) (2,534)
Operating profit after interest 1,740 1,306 3,180
Unrealised surplus on revaluation of - - 6,372
investment properties
Realised net surplus on disposal of - - 180
listed investments
Cost of disposal of parking garage (209) - -
Cost of capital restructure (202) - -
Realised surplus on disposal of - 312 312
unlisted investments
Profit before taxation 1,329 1,618 10,044
Taxation 634 511 1,676
Profit for the period 695 1,107 8,368
Earnings per share (cents) 4.0 6.4 48.2
Headline earnings per share (cents) 6.8 4.6 12.5
Dividends per share (cents) 6.0 5.0 10.0
Dividend cover (times) 0,7 1,3 4.8
Shares in issue 17,372,300 17,372,300 17,372,300
Net asset value per share (cents) 426 375 410
Headline earnings calculation
Profit for the period 695 1,107 8,368
Unrealised surplus on revaluation of - - (5,743)
investment net of taxation
Realised net surplus on disposal of - - (142)
listed investments
Cost of disposal of parking garage 287 - -
Cost of capital restructure 202 - -
Realised surplus on disposal of - (312) (304)
unlisted investments
Headline earnings for the period 1,184 795 2,179
SUMMARISED BALANCE SHEET
Investment properties 62,705 60,138 66,573
Listed investments 17,679 14,871 15,174
Property, plant and equipment 1,126 985 931
Deferred taxation - 490 -
Current assets 3,501 8,240 4,607
Bank and cash balances 7,799 1,238 3,502
Total assets 92,810 85,962 90,787
Equity and reserves 74,015 65,230 71,218
Interest bearing borrowings 15,866 16,425 15,589
Deferred taxation 310 - 39
Current liabilities 2,125 4,062 2,872
Bank overdraft 494 245 1,069
Total equity & liabilities 92,810 85,962 90,787
SUMMARISED STATEMENT OF CHANGES IN EQUITY
Stated capital 26,809 26,809 26,809
Non-distributable reserves 29,043 26,402 29,336
Balance at beginning of period 29,336 26,709 26,709
As previously reported 29,336 21,324 21,324
Effect of change in accounting policy - 5,385 5,385
Transfer to distributable reserves (1,184) - -
Transfer from distributable reserves - - 3,454
Currency translation movement 891 (307) (827)
Distributable reserves 18,163 12,019 15,073
Balance at beginning of period 15,073 12,327 12,327
As previously reported 15,073 12,207 12,207
Effect of change in accounting policy - 120 120
Transfer from non-distributable 1,184 - -
reserves
Profit for the period 695 1,107 8,368
Transfer of property revaluation to - - (3,454)
non-distributable reserves
Net deficit on disposal of listed - - (187)
investments
Unrealised surplus on revaluation of 2,253 (546) (244)
listed investments
Dividends paid (1,042) (869) (1,737)
Total equity and reserves at the end 74,015 65,230 71,218
of the period
SUMMARISED CASH FLOW STATEMENT
Cash inflow / (outflow) from 3,984 3,252 7,852
operating activities
Net interest paid (676) (561) (2,506)
Net taxation paid (597) (512) (1,014)
Operating cash inflow / (outflow) 2,711 2,179 4,332
Dividends paid (1,042) (869) (1,737)
Net cash inflow / (outflow) from 1,669 1,310 2,595
operating activities
Net cash inflow / (outflow) from 3,202 (615) (460)
investing and financing activities
Net cash inflow / (outflow) for the 4,871 695 2,135
period
SUMMARISED SEGMENTAL ANALYSIS
Revenue
Properties division 8,803 8,355 17,184
Confirming division 336 562 1,071
Investment division 285 241 379
9,424 9,158 18,634
Operating profit before interest
Properties division 2,432 1,997 4,637
Confirming division 237 436 903
Investment division 152 144 146
2,821 2,577 5,686
COMMENTS
The unaudited results for the six months ended 30 June 2005 reflect operating
profit before interest of R2 821 000 (2004: R2 577 000 restated). Headline
earnings per share have increased to 6,8 cents from 4,6 cents for the
comparative period. Interest paid amounted to R1 119 000 (2004: R1 282 000
restated).
As disclosed in the 2004 annual report, the group disposed of a parking garage
known as Russell Park and situated in central Durban.
This garage was owned and operated by the group for one quarter of the period
reported on. The costs of disposal amounted to R209 000.
Excluding the results of Russell Park, the Properties Division has shown a 9,7%
increase in revenue. This is due to the continued demand for leased light
industrial property. All indications are that this demand should remain in place
for the immediate future. At present the group`s vacancy level based on current
fully let value approximates 3%. In the opinion of the directors, the market
value of the group`s remaining investment properties at 30 June 2005 remains
unchanged from 31 December 2004, namely R63 220 000. The contribution from the
Confirming Division remains lower than the comparative period. This is primarily
due to the low utilisation of available facilities by existing clients. To date
no further clients have been contracted thus further limiting the group`s
ability to generate revenue.
The group`s portfolio of shares in listed investments held overseas reflects a
market value in South African currency of R17 676 000 as at
30 June 2005 compared to R15 171 000 as at 31 December 2004. In sterling
currency, the portfolio value has appreciated by approximately 6% during the
period under review. No disposals have been made during the period reported on.
The group is actively seeking to acquire additional investment properties. It is
able to do this due to its low level of gearing and available cash
resources. However, the group`s ability to reinvest these cash resources in the
short term may be hampered by the shortage of suitable available investments.
These interim financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS) and do not include all
disclosures and information required for full annual financial statements. The
group adopted IFRS for the first time in 2005 except for the early adoption of
SIC 21 that was adopted during the 2004 financial year. The comparative interim
period has been restated for this change in accounting policy.
The transition to IFRS has not resulted in any material change in the reported
interim financial statements. The early adoption of SIC 21 brought the group
more fully in line with IFRS and the full effects of this change in accounting
policy have been previously disclosed.
The same accounting policies were used as those applied in the annual financial
statements for the year ended 31 December 2004 in which the accounting policies
are described in detail.
Interest received in the prior comparative interim period 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 R288 000 and an increase in operating profit
before interest of the same amount. Furthermore, as disclosed on SENS on 5 May
2005, the amount disclosed as `Revenue` in the prior comparative interim period
has been restated to exclude items of expenditure and revenue that required
reclassification.
On 9 May 2005 all resolutions relating to the consolidating of its two classes
of par value ordinary shares into one class of shares with no par
value were passed. This had no financial effect on the financial statements of
the current or any comparative period.
An interim dividend of 6,0 cents per share (2004: 5,0 cents restated) has been
declared.
DIVIDEND DECLARATION
Notice is hereby given that a final dividend of 6,0 cents per ordinary share has
been declared in respect of the six months ended 30 June 2005.
In accordance with the settlement procedures of STRATE, Marshalls has determined
the last date to trade to participate in the final dividend shall be Friday, 26
August 2005. The shares will commence trading ex-dividend from Monday, 29 August
2005, and the record date will be Friday, 2 September 2005.
Dividends will be paid on Monday, 5 September 2005.
Share certificates may not be dematerialised, or rematerialised, between Monday,
29 August and Friday, 2 September 2005, both days inclusive.
10 August 2005
BY ORDER OF THE BOARD
DC Marshall, PN Lonsdale (Directors)
Sponsor
Imara Corporate Finance South Africa (Pty) Ltd
Date: 10/08/2005 09:00:05 AM
Produced by the JSE SENS Department
