| Mon 29 Aug 2005, 10:13 | | RESULTS FOR THE YEAR ENDED 30 JUNE 2005 |
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Gencor Limited - Consolidated Audited Results For The Year Ended 30 June 2005
GENCOR LIMITED
Incorporated in the Republic of South Africa
Registration number 1895/001232/06
ISIN code: ZAE000013066
Share code: GMF
CONSOLIDATED AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2005
INCOME STATEMENT
Year ended Year ended
30 June 30 June
2005 2004
(R million) Audited Audited
Interest income 5.4 7.6
Net corporate costs (3.6) (4.8)
Operating income 1.8 2.8
Forfeited dividends 0.3 0.6
Provisions written back 4.3 16.5
Income before taxation 6.4 19.9
Ordinary taxation on company 1.3 (1.6)
Attributable income 7.7 18.3
Earnings per share
Earnings per share is calculated on the
weighted average number of
shares in issue (m) 348.6 348.6
and is based on attributable income of (Rm) 7.7 18.3
Basic and headline earnings (cps) 2.2 5.2
Dividends declared and paid per share (cents) 3.0 3.0
BALANCE SHEET
As at As at
30 June 30 June
2005 2004
(R million) Audited Audited
Non-current assets - 0.1
Current assets (Note 1) 80.4 89.9
Total assets 80.4 90.0
Capital and reserves 77.7 80.5
Current liabilities and provisions 2.7 9.5
Total equity and liabilities 80.4 90.0
STATEMENT OF CHANGES IN EQUITY
Year ended Year ended
30 June 30 June
2005 2004
(R million) Audited Audited
Opening balance 80.5 72.7
Attributable income 7.7 18.3
Total ordinary dividends for year (10.5) (10.5)
Total shareholders` equity 77.7 80.5
CASH FLOW STATEMENT
Year ended Year ended
30 June 30 June
2005 2004
(R million) Audited Audited
Operating cash flows (0.9) (5.4)
Dividends (paid) (10.5) (10.5)
Net cash from operating activities (11.4) (15.9)
Other corporate activities 0.3 0.7
Net decrease in cash (11.1) (15.2)
Opening cash balance 87.3 102.5
Closing cash balance (Note 1) 76.2 87.3
VALUATION
As at As at
30 June 30 June
2005 2004
Audited Audited
Number of Gencor shares in issue (m) 348.6 348.6
Ruling share price on JSE at year-end (cents) 14 13
Gencor`s market capitalisation (Rm) 48.8 45.3
Net asset value per share (cents) 22 23
NOTES TO THE FINANCIAL STATEMENTS
1. R35 million of Gencor`s cash is set aside as security for a rehabilitation
claim, as indicated under the commentary.
2. The accounting policies used by the group are in accordance with Statements
of South African Generally Accepted Accounting Practice and are consistent with
those used in the previous year.
3. Gencor`s annual financial statements have been audited by its auditors,
PricewaterhouseCoopers Inc, and a copy of their unqualified report is available
for inspection at the company`s registered office.
COMMENTARY
1. Settlements: In 2003 two settlement agreements were reached with potential
claimants for compensation for asbestos-related diseases that arose or that may
arise as a result of exposure to asbestos from mines operated by companies in
which Gencor had previously had an interest. Consequent upon the successful
unbundling of Gencor`s entire investment in Impala Platinum Holdings Limited
(`Implats`) in June 2003, without any admission of liability and in full and
final settlement, Gencor paid an amount of R378 million into the Asbestos Relief
Trust (`ART`) and an amount of R42.5 million into a trust account kept by United
Kingdom lawyers representing a defined group of claimants. In addition, Gencor
paid R40 million into its lawyers` trust account to cover any potential
rehabilitation claims that may be made over the three years following the
settlement agreements, after which any residual amount will revert to the ART.
2. Rehabilitation Claims: Subsequent to the execution of the two asbestos
settlements referred to above, Gencor also concluded an agreement with the
Government relating to rehabilitation issues. In November 2004 with the consent
of the ART and in terms of this agreement with Government, Gencor, without any
admission of liability, transferred an amount of R35 million of the R40 million
set aside for rehabilitation claims to a trust administered by the Department of
Mineral and Energy Affairs in full and final settlement of any rehabilitation
claims that the Government may have against Gencor.
Gencor and others received a claim in July 2003 for rehabilitation (either to
rehabilitate certain areas of land or to pay R63.4 million therefor) from the
Bareki Tribal Authority and the Nkululeko Environmental and Development Group.
The directors do not believe that Gencor is liable for this claim but, to
facilitate the unbundling of Implats, Gencor set aside an amount of R35 million
of its cash resources by way of security. In December 2004, the plaintiffs
effected an amendment to the claim. Broadly, the plaintiffs do not now seek to
recover monies from Gencor and others, including Government, but an order from
the Court that these parties be directed to take reasonable measures to rectify
the areas of land which are alleged to have been polluted. The plaintiffs now
estimate that the fair and reasonable costs of such measures are in an amount of
R64.2 million.
The directors remain of the belief that Gencor is not liable for this amended
claim. Gencor is dealing with the amended claim in the ordinary course of
business.
3. Cash: Gencor`s major asset comprises cash of R76.2 million (2004: R87.3
million) of which R35 million is set aside by way of security for a
rehabilitation claim (see above).
4. Results: Gencor`s attributable income for the financial year ended 30 June
2005 amounted to R7.7 million, a decrease of 58% on the R18.3 million reported
in the previous financial year.
Interest revenue totalled R5.4 million compared to the R7.6 million posted last
year and net corporate costs of R3.6 million were recorded (R4.8 million in
2004). R4.6 million other income arose mainly from provisions no longer required
(2004: R17.1 million).
During the year all outstanding assessments were issued by SARS and the account
between SARS and Gencor was settled up to the end of the 2004 tax year. The
outstanding amount due to Gencor of R2.8 million, including interest, was
refunded in July 2005. As a result Gencor raised prior year credit adjustments
totaling R1.6 million (2004: Nil) against the tax charge for the year of R0.3
million (2004: R1.6 million).
5. Listing: The JSE has agreed that Gencor`s listing continue, but will review
the situation again in December 2005.
6. The Way Ahead: The Board will advise shareholders of future plans regarding
the possible voluntary liquidation of Gencor as soon as finality is reached on
the remaining unresolved issues. No final dividend has been declared as this
pends the next strategic move of the company.
For and on behalf of the Board
AS du Plessis (Chairman) Johannesburg
WE Buhrmann (Director) 25 August 2005
REGISTERED OFFICE
KPMG Crescent, North Wing, First Floor
85 Empire Road, Parktown 2193
POSTAL ADDRESS Postnet Suite 222, Private Bag X30500
Houghton 2041
COMPANY SECRETARY J Marais
JSE SPONSOR Investec Bank Limited
REGISTRARS Computershare Investor Services 2004 (Pty)
Limited Tel: (011) 370-5000
Fax: (011) 688-5216, 70 Marshall Street,
Johannesburg 2001, P O Box 61051,
Marshalltown 2107, South Africa
UK SHAREHOLDER Project Consultants Limited
ADMINISTRATION
Tel: +44 (01295) 690180
Fax: +44 (07092) 385307
Walnut House, Walnut Gardens, Claydon,
Banbury, Oxon OX17 1NA
Date: 29/08/2005 07:05:06 AM
Produced by the JSE SENS Department
