| Fri 30 Sep 2005, 15:48 | | Putprop - Audited results for the year ended 30 Ju |
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Putprop - Audited results for the year ended 30 June 2005 and salient dates for
the change of name
Putco Properties Limited
(Incorporated in the Republic of South Africa)
(Registration number 1988/001085/06)
Share code: PPR & ISIN: ZAE000005567
("Putprop" or "the Company")
AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2005 AND SALIENT DATES FOR THE CHANGE
OF NAME
The following abridged financial statements have been prepared in accordance
with the requirements of South African Statements of Generally Accepted
Accounting Practice.
INCOME STATEMENTS
for the year ended 30 June 2005
Group Company
2004 2004
2005 Restated 2005 Restated
Notes R"000 R"000 R"000 R"000
Rent received 1 23 911 27 038 23 911 27 038
Interest received 1 242 2 562 1 242 2 562
Revenue 25 153 29 600 25 153 29 600
Operating income 3 7 526 655 7 526 655
Operating expenses 3 2 592 2 765 2 592 2 765
Operating profit 3 30 087 27 490 30 087 27 490
Finance cost 3 1 3 1
Profit before taxation 30 084 27 489 30 084 27 489
Taxation 4 8 451 11 073 8 451 11 073
Net profit for the year 21 633 16 416 21 633 16 416
Earnings per share (cents) 6 75,1 57,0
The calculation is based on
earnings of R21 633 000
(2004: R16 416 000) and
on the weighted average
number of 28 792 961 (2004:
28 792 961) shares in
issue for the year. No
diluted earnings have been
calculated as there are no
dilutive potential ordinary
shares as at 30 June 2005
(2003 - no dilutive
potential ordinary shares)
Headline earnings per share 7 49,0 54,7
(cents)
Headline earnings per share
have been calculated in
terms of Circular 7 of
2002 and exclude profits of
a capital nature.
Reconciliation of headline
earnings:
Net profit for the year 21 633 16 416
Adjusted for
Profit on sale of - (1)
investment properties
Fair value adjustment of (7 526) (654)
investment properties
Headline earnings 14 107 15 761
Dividend per share (cents) 55,0 55,0
- interim 25,0 25,0
- final 30,0 30,0
- final declared 25,0 30,0
BALANCE SHEETSat 30 June 2005
Group Company
Notes
2004 2004
2005 Restated 2005 Restated
R"000 R"000 R"000 R"000
ASSETS
Non-current assets
Tangible assets 8 82 109 84 516 82 109 84 516
Investment in subsidiaries 9 - - 139 139
82 109 84 516 82 248 85 655
Current Assets
Work in progress 10 13 616 13 570 13 616 13 570
Accounts receivable 11 19 834 29 263 19 704 29 131
Taxation receivable 12 1 675 12 1 664 -
Cash and cash equivalents 28 469 15 505 28 469 15 505
63 594 58 350 63 453 58 206
Total assets 145 703 142 866 145 701 142 861
EQUITY AND LIABILITIES
Capital and reserves
Stated capital 13 4 146 4 146 4 146 4 146
Accumulated profit 134 238 128 441 134 242 128 445
138 384 132 587 138 388 132 591
Non-current liabilities
Deferred taxation 14 5 826 6 998 5 826 6 998
5 826 6 998 5 826 6 998
Current liabilities
Taxation payable 12 - 2 299 - 2 299
Accounts payable 1 493 982 1 487 973
1 493 3 281 1 487 3 272
Total equity and 145 703 142 866 145 701 142 861
liabilities
STATEMENTS OF CHANGES IN EQUITYfor the year ended 30 June 2005
Stated Accumulated
capital profit Total
Notes R"000 R"000 R"000
GROUP
Balance at 30 June 2003 as 4 146 111 873 116 019
previously stated
Rent escalation adjustments 1 15 988 15 988
Balance at 30 June 2003 4 146 127 861 132 007
restated
Net profit for the year 16 416 16 416
Dividend paid 5 (15 836) (15 836)
Balance at 30 June 2004 4 146 128 441 132 587
Net profit for the year 21 633 21 633
Dividend paid 5 (15 836) (15 836)
Balance at 30 June 2005 4 146 134 238 138 384
COMPANY
Balance at 30 June 2003 as 4 146 111 877 116 023
previously stated
Rent escalation adjustments 1 15 988 15 988
Balance at 30 June 2003 4 146 127 865 132 011
restated
Net profit for the year 16 416 16 416
Dividend paid 5 (15 836) (15 836)
Balance at 30 June 2004 4 146 128 445 132 591
Net profit for the year 21 633 21 633
Dividend paid 5 (15 836) (15 836)
Balance at 30 June 2005 4 146 134 242 138 388
CASH FLOW STATEMENTSfor the year ended 30 June 2005
Group Company
Notes
2004 2004
2005 Restated
R"000 R"000
2005 Restated
R"000 R"000
Cash inflow/(outflow) from 3 036 (15 510) 3 036 (15 510)
operating activities
Cash receipts from 33 338 27 021 33 338 27 021
customers
Cash paid to suppliers (2 119) (18 716) (2 119) (18 717)
Net cash generated from 16 31 219 8 305 31 219 8 304
operations
Interest received 1 242 2 562 1 242 2 562
Finance costs (3) (1) (3) (1)
Taxation paid 12 (13 586) (10 540) (13 586) (10 539)
Dividends paid 5 (15 836) (15 836) (15 836) (15 836)
Cash inflow from 9 928 7 039 9 928 7 039
investment activities
Proceeds on disposal of 10 000 7 182 10 000 7 182
tangible assets
Additions to tangible 17 (72) (143) (72) (143)
assets
Net increase/(decrease) in 12 964 (8 471) 12 964 (8 471)
cash and cash equivalents
Cash and cash equivalents 15 505 23 976 15 505 23 976
at beginning of year
Cash and cash equivalents 28 469 15 505 28 469 15 505
at end of year
COMMENTARY
Overview
Rental revenue decreased by 11,5%, as compared to the previous year, albeit
there was a 9% escalation in rental charges. The reasons were that the Wembly,
Lea Glen and Garthdale properties did not attract the 9% rental increase, as
previously agreed to by the Board. Further reasons were the losses of the
Boksburg rental with its sale for R4,5 million on 31 March 2004, the Wembly
(Glenesk) rental with its sale for R5,5 million on 21 December 2004 and the
Alrode rental with its sale for R4,5 million on 10 May 2005. These sales
resulted in an increase in our cash resources.
Treatment of rental income
In the past, operating lease income was recognised by entities as they fell due
by the lessee. Although this practice became effective in 2000 (in terms of AC
105) or 1999 (in terms of IAS 17) it was not applied as a result of previous
interpretation. More detailed guidance has now been issued internationally by
the major accounting firms, requiring entities to "straightline" leases over a
period of the finite lease agreements, where such lease agreements contain fixed
escalation clauses.
As a result of the above, there was an increase in opening retained earnings
(net of deferred tax) amounting to R15,031 million and a decrease in current
year"s profit amounting to R2,463 million (2004: R0,956 million).
Operating income and expenses
The major change in operating income from R0,655 million (2004) to
R7,526 million (2005) is as a result of the revaluation of our properties.
Operating expenses decreased from R2,765 million (2004) to R2,592 million
(2005), being a reduction of 6,3%.
New agreement
A new agreement was entered into with Putco Proprietary Limited for the
provision of shared property services as from 1 January 2005. The administrative
fees agreement was cancelled as from the same date and this function was taken
over by the company. The increased difference in cost is approximately R7 000
per month.
Additional staff costs of R52 861 were incurred from 1 October 2004 to 30 June
2005.
Maintenance
The cost of the maintenance of the properties was R0,983 million (2004: R0,550
million). This was conducted in accordance with a maintenance plan approved by
management at budget time.
Insurance
Insurance has decreased by 35% compared to last year. This is due to a reduction
in overall insurance rates following the restructuring of our insurance cover.
Net profit
The net profit before taxation is R30,084 million (2004: R27,489 million).
The net profit after taxation is R21,633 million (2004: R16,416 million).
Interest
Interest received has decreased due to fewer funds being available when compared
to the same period last year. The purchase of the Lonehill property for R13,6
million in May 2004 was partly recouped by the sales of the Boksburg, Wembly and
Alrode properties.
Furthermore bank call rates reduced from 12,25% to 6,5% in the past two and a
half years.
Valuation of properties
An official revaluation of our property portfolio was conducted at year-end.
This resulted in a net revaluation amount of R7,526 million.
Lonehill property
As stated previously the firm of Di Cicco and Buitendag were appointed as Town
Planning and Property Consultants. Knutton Consulting are acting as Engineering
Consultants. Progress is on track and it is estimated that final promulgation in
the Government Gazette will take place by approximately July 2006.
Loans
The company has no loans.
Capital commitments
The company has no capital commitment at year-end.
Future prospects
As reported in Putco Properties 2004 annual financial statements, a strategic
plan has been developed to grow Putco Properties Limited into a fully-fledged
property investment company by acquiring quality, income producing retail and
office properties throughout South Africa and at the same time disposing of the
currently owned properties that do not fall into our current client"s long-term
plans. The time is right to investigate diversification into other property
development projects in industrial, commercial and residential markets.
The Board is of the opinion that this strategy needs to be reflected in the name
of the company and have thus decided to propose that the name be changed in
order to effectively describe and identify the company"s core business and
differentiate the brand of the company in a market perspective (being a property
investment company) from that of Putco Proprietary Limited (being a company
previously listed on the JSE which provides daily commuter transport services
primarily in the Gauteng and Mpumalanga areas).
The proposed new name for the company is Putprop Limited.
Dividend declaration
The directors have decided to declare a final dividend of R0,25 cents per share.
Including the interim dividend of R0,25 cents per share, the total for the year
will be R0,50 cents (2004: R0,55cents). This dividend will be paid on or about
24 October 2005, to shareholders registered on 21 October 2005.
AUDITORS
Ernst & Young have audited the information contained herein. Their unqualified
audit opinion is available for inspection at the registered office of Putco
Properties Limited, Carlin House, Number 8, 4th Street, Wynberg.
ANNUAL GENERAL MEETING
The 18th annual general meeting of members of the Company will be held at 12h00
on Wednesday, 16 November 2005, at the registered office of the Company, Carlin
House, Number 8, 4th Street, Wynberg.
Salient dates in respect of the change of name
As reported in the 2004 annual financial statements, the Company wishes to
change its name to more effectively describe and identify its core business.
Shareholders are advised of the following timetable for the proposed name change
of Putco Properties Limited to Putprop Limited (which currently trades under the
abbreviated name "Putprop", JSE share code "PPR" and the ISIN code:
ZAE000005567).
The salient dates for the implementation of the change of name are as follows:
Circular and notice of general Friday, 30 September 2005
meeting posted to shareholders
Last day to lodge forms of proxy Monday, 14 November 2005
for the annual general meeting by 12:00
on
Annual general meeting of shareholders Wednesday, 16 November 2005
to be held at 12:00 and results of
annual general meeting and finalisation
data published on SENS on
Results of annual general meeting and Thursday, 17 November 2005
finalisation data published in the
daily press on
Last day to trade under old name Friday, 25 November 2005
"Putco Properties Limited"
Change of name effective from Friday, 25 November 2005
close of business on
Trade under the new name Monday, 28 November 2005
"Putprop Limited" and new
ISIN no. ZAE000072310 from
commencement of trading on
Record date Friday, 2 December 2005
New share certificates Monday, 5 December
reflecting the change of name
posted by registered post to
Putprop certificated shareholders
who have surrendered their
documents of title
Dematerialised Putprop Monday, 5 December 2005
shareholders" safe custody accounts
updated with new name by their
CSDP or broker
Notes:
These dates and times are subject to amendment. Any such amendments to the
dates and times will be announced on the Securities Exchange News Service and
published in the South African Press.
Share certificates in the name of Putco Properties Limited may not be
dematerialized or rematerialized after Friday, 2 December 2005.
Certificated shareholders who surrender their existing documents of title after
the record date, will have their new share certificates mailed within five
business days of receipt thereof by the transfer secretaries, by registered post
in South Africa, at the risk of the shareholder concerned.
By order of the Board
A B AdrianChairman
Don Campbell
Company secretary
Johannesburg
30 September 2005
Registered Office:
Carlin House
Number 8, 4th Street
Wynberg
(P O Box 39002, Bramley, 2018)
Sponsor:
Ernst & Young Sponsors (Pty) Ltd
(Registration number 2000/031843/07)
52 Corlett Drive
Illovo, 2196
Transfer secretaries:
Computershare Investor Services 2004 (Proprietary) Limited
(Registration number 2004/003647/07)
Ground Floor
70 Marshall Street
Johannesburg 2001
(P O Box 61051, Marshalltown, 2107)
Date: 30/09/2005 03:08:15 PM Produced by the JSE SENS Department
