| Mon 29 Aug 2005, 15:14 | | WBHO - Reviewed Results For The Year Ended 30 June |
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WBHO - Reviewed Results For The Year Ended 30 June 2005
WILSON BAYLY HOLMES - OVCON LIMITED
- Building and civil engineering contractors
(Registration number 1982/011014/06)
ISIN: ZAE000009932 Share code: WBO
REVIEWED RESULTS FOR THE YEAR ENDED 30 JUNE 2005
- Gross revenue up 89,8%
- Operating income up 59,3%
- Net profit up 39,6%
Group Income Statement
Reviewed Audited
Year to Year to
30 June 30 June
2005 % increase/ 2004
R`000 decrease R`000
Gross revenue 4 765 342 89,8 2 510 717
Operating income before
goodwill amortisation 187 061 59,3 117 460
Goodwill amortisation 9 341 (54,4) 20 482
177 720 83,3 96 978
Investment income 22 275 43,2 15 559
Income before interest 199 995 77,7 112 537
Finance charges 3 558 (11,1) 4 001
Income before taxation 196 437 81,0 108 536
Taxation 40 126 32,0 30 393
Income after taxation 156 311 100,0 78 143
Income from associates 1 749 (91,4) 20,271
Income attributable to
shareholders 158 060 60,6 98 414
Outside shareholders` interest (20 684) 100,0 0
Net profit 137 376 39,6 98 414
Reconciliation of headline earnings
Net profit 137 376 98 414
Add back
Goodwill amortisation 9 341 20 482
Profit on sale of fixed assets
(net of tax) (7 147) (3 122)
Headline earnings 139 570 20,6 115 774
Shares in issue (`000s) 55 491 55 491
Earnings per share (cents) 247,6 39,6 177,4
Headline earnings per
share (cents) 251,5 20,6 208,6
Group Balance Sheet
Reviewed Audited
2005 2004
R`000 R`000
ASSETS
Non-current assets 513 104 431 564
Property, plant and equipment 387 332 266 553
Investment in associates 22 739 90 519
Investments 1 113 3 846
Loans 63 046 69 709
Goodwill 38 874 937
Current assets 1 778 075 1 036 783
Inventories 91 079 26 395
Contracts in progress 939 658 531 735
Accounts receivable 192 644 141 225
Cash and cash equivalents 554 694 337 428
Total assets 2 291 179 1 468 347
EQUITY AND LIABILITIES
Capital and reserves 562 774 396 641
Ordinary share capital and reserves 522 155 396 641
Outside shareholders` interest 40 619 -
Non-current liabilities 111 036 75 324
Interest-bearing borrowings 50 503 2 813
Deferred tax 60 533 72 511
Current liabilities 1 617 369 996 382
Current portion of interest-bearing
borrowings 16 192 12 594
Accounts payable and provisions 1 517 092 921 185
Bank overdrafts 15 361 14 007
Taxation 68 724 48 596
Total equity and liabilities 2 291 179 1 468 347
Net tangible asset value per share (cents) 871 713
Group Cash Flow Statement
Reviewed Audited
2005 2004
R`000 R`000
Cash flow from operations
Operating profit before working
capital changes 253 181 120 017
Working capital changes 32 028 68 616
Cash generated by operations 285 209 188 633
Investment income 22 275 15 559
Finance charges (3 558) (4 001)
Taxation paid (38 573) (21 610)
Dividend paid (30 520) (24 971)
Cash retained from operations 234 833 153 610
Cash flow after investing activities
Change in investments 2 733 (3 756)
Change in loans 16 937 (56 436)
Acquisition of subsidiary (16 999) (1 376)
Investment in associates (11 850) 37 516
Purchase of property, plant and equipment (173 550) (87 291)
Proceeds from sale of property,
plant and equipment 23 519 15 305
Cash flow after investing activities 75 623 57 572
Cash flow from financing activities
Change in net debt 19 662 (20 492)
Net increase in cash and cash equivalents 95 285 37 080
Cash and cash equivalents at
beginning of year 323 421 286 341
Cash acquired on acquisition of subsidiary 120 627 -
Cash and cash equivalents at end of year 539 333 323 421
Segmental Information
Reviewed Audited
2005 2004
R`000 R`000
Gross revenue
- Local 2 648 195 2 002 046
- International 2 117 147 508 671
4 765 342 2 510 717
Operating income before goodwill amortisation
- Local 82 412 83 197
- International 104 649 34 263
187 061 117 460
Statement of Changes in Equity
Reviewed Audited
2005 2004
R`000 R`000
Capital and reserves at beginning of year 396 641 360 376
Net profit for the year 137 376 98 414
Changes in foreign currency
translation reserve 18 658 (37 178)
Dividend paid (30 520) (24 971)
Capital and reserves at end of year 522 155 396 641
Comments
Financial review.
We are pleased to report that WBHO has for the eleventh successive year
recorded an improvement in earnings. The group achieved headline earnings per
share of 251 cents an increase of 20,6% over the previous year.
As reported at the half year, we have consolidated our interest in Probuild
Constructions (Aust) Pty Limited for the first time and this tends to make a
comparison with the results for the previous year difficult. In order to give
stakeholders a better comparison of the results achieved we have amended the
2004 results in the table below so that Probuild`s results are consolidated
instead of being equity accounted.
Years ended 30 June Reviewed Unaudited % increase/
2005 2004 (decrease)
R`000 R`000
Gross revenue 4 765 342 3 662 683 30,1
Operating income before
goodwill amortisation 187 061 165 102 13,3
Goodwill amortised 9 341 20 482
Operating income 177 720 144 620 22,9
Investment income 22 275 24 182 (7,9)
Finance charges 3 558 4 001 (11,1)
Income before taxation 196 437 164 801 19,2
Taxation 40 126 47 596 (15,7)
Income after taxation 156 311 117 205 33,4
Income from associates 1 749 1 052 66,2
Minorities` interest 20 684 19 842 4,2
Net profit 137 376 98 415 39,6
After a number of years of low growth, turnover is once more on the upward path
and is up by 30% compared to last year. The growth pattern was the same for both
Australia and South Africa.
Cash flows during the year recorded an increase of R95 million during the year
despite increased capital spend and a higher working capital demand due to the
increased turnover levels.
A final dividend of 42 cents per share has been declared, giving a total
dividend for the year of 63 cents per share, an increase of 23,5% compared to
2004.
Roads and Earthworks division - Good results
The division both exceeded its profit budget and achieved better results than
those of the previous year. However, the division`s results would have been
exceptional were it not for a loss incurred on a contract in Mozambique. We
believe that we have fully provided for the loss expected on completion and the
contract should not affect future results. All other contracts are performing
well and are on programme. 57% of the division`s turnover occurred outside South
Africa compared to 52% last year.
Building division - Strong turnover growth in coastal areas The building
division experienced only minor turnover growth in the central areas of RSA but
achieved spectacular growth in the coastal regions, particularly in the Western
Cape. Unfortunately contract profits did not increase in proportion to the
turnover growth and resulted in a decrease in margins.
After a number of years of buoyant conditions, the construction market in
Botswana was much quieter this year and the results achieved reflected these
conditions.
Despite a downturn in the construction market in Australia, the Probuild
operations in Melbourne, Sydney and Brisbane nevertheless performed well,
exceeding both turnover and profit targets.
Civil Engineering division - Starting to come out of the doldrums There are
signs of improvement in the market and the division achieved substantial
increases in both turnover and profit during the year. Indications are that this
trend is likely to continue in the new year.
Property developments
During the year our focus shifted from retail developments to the development
of land for residential and leisure purposes. WBHO has a 50% interest in both
the Simbithi Eco-Estate in Ballito and in the St Francis Links Golf Estate in
the Eastern Cape. Both projects have been well received by the market and the
level of sales has been satisfactory. However, both developments are still in
their early stages and profits are expected to accrue over a number of years
into the future.
Concessions
The group has minor interests in the N4 Platinum toll road, the dti Campus in
Tshwane and the Ressano Garcia - Matola gas pipeline. All three projects are in
the early stages of their concession lives and we do not believe it appropriate
to take increases in fair values to the income statement at this time.
Concor Limited.
We initiated the Concor bid as we believed that the merger would have
provided us with additional resources and would have expanded our activities
into areas in which we do not presently operate. Unfortunately, we were not able
to come to terms with the major shareholder in Concor and as a result we
withdrew our offer.
Black Economic Empowerment
The Construction Charter is coming close to finality and this will give clear
direction on the most efficient way of implementing our BEE equity transfer. In
the meantime, skills development, procurement and the other elements of the
scorecard continue to be addressed.
Prospects
There has been an upsurge in construction work in South Africa which should
continue for a number of years. Much will depend upon Government`s ability to
deliver. There are also incipient signs of shortages of skills at management and
supervisory levels and of certain materials and equipment. We start the new year
with an order book of R4,2 billion and on balance, we believe that WBHO should
experience a further year of real growth in earnings per share in 2006.
Accounting policy and consistency
The accounting policies are consistent with those applied in 2004 and comply
with the South African Statements of Generally Accepted Accounting Practice.
These results have been reviewed by our auditors, BDO Spencer Steward
(Johannesburg) Inc. and their unqualified review opinion is available for
inspection at the company`s registered office.
Dividend declaration
Notice is hereby given that a final dividend of 42 cents per share in respect of
the year ended 30 June 2005 has been declared payable to all shareholders
recorded in the register of the company on Friday, 21 October 2005, the record
date. The last day to trade cum-dividend will be Friday, 14 October 2005 and the
shares will trade ex-dividend on Monday, 17 October 2005. Payment of the
dividend will be made on Monday, 24 October 2005.
Share certificates may not be dematerialised or rematerialised between Monday,
17 October 2005 and Friday, 21 October 2005, both dates inclusive.
On behalf of the board
M S Wylie A J MacKenzie
Chairman Director 29 August 2005
Date: 29/08/2005 03:08:22 PM
Produced by the JSE SENS Department
