|
CNC
CNC
Concor - Interim Results
Concor
Registration number 1969/003076/06
Incorporated in the Republic of South Africa
Share Code: CNC ISIN: ZAE000001616
Constructing and Building the Future
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2005
Salient Features Change 2005 2004
(%)
Revenue (R million) Up 33,6 986 738
Operating income (R million) Up 29,7 15,9 12,2
Earnings per share (cents) Up 22,9 112,3 91,4
Headline earnings per share (cents) Up 25,2 113,4 90,6
Financial overview
Revenue and operating profit increased by 34% and 30%
respectively. All the operating divisions in Concor increased
their revenue compared to the corresponding period last year, with
most of the growth coming from the Building and Roads divisions.
Capital expenditure amounted to R30,9 million during the period
under review, which is similar to the first six months of the
previous financial year.
Interest bearing debt increased marginally to R47,2 million and
cash balances amounted to R160 million.
Operational review
Technicrete continued to be the star performer in the group and
achieved exceptional results for the period under review. On 15
February 2006 the group acquired a 70% stake in Coastal Bricks in
Port Elizabeth, the other 30% being held by an empowerment group.
A R9 milion kerb plant facility commenced producing kerbs in
Olifantsfontein during February and the group is actively pursuing
other opportunities in order to expand its geographical footprint.
All the contracts in the Opencast division are profitable after
the difficult start of an opencast coal contract. Most of the
platinum opencast contracts are of a long-term nature and the
group can look forward to sustainable profits for a number of
years to come.
The Underground mining division is feeling the effect of the
strong Rand as margins are depressed and mining capital
expenditure is limited.
The Roads division turned in an excellent performance and is
poised to participate in the Government"s long awaited
infrastructure spending.
The Engineering division has a good order book and is working
closely with clients and project managers on a number of
prospects.
Both the Building and Civils divisions reported a loss for the
period which necessitated management changes in January 2006. The
Sand Bypass contract in Civils will only be completed by June
2006.
Most of the residential projects undertaken by the Building
division resulted in a loss to the company as its completion was
underestimated by management.
On a more positive note, margins in the Civils and Building
industry have lifted and the nature of projects available is
better suited to the expertise that we have available.
The projects that are being managed by Facility Management are all
performing to expectation.The group is still waiting for a
decision from the minister of the Department of Environmental
Affairs and Tourism on appeals made against the record of decision
for the construction of the permanent toll plaza at Chapman"s
Peak.
The Coega Harbour project will be completed within budget by the
end of February 2006.
Prospects
Work on hand remains at R1,2 billion and all divisions have a
satisfactory order book.
There is optimism in the construction industry given that several
major projects have been announced by Government, mining houses,
private clients and semi government organisations.
Concor has a limited number of resources and will be very careful
not to take on too many projects at the expense of profits and
margins. The lessons learnt over the last few years in the
Building and Civils divisions cost the group dearly. Concor cannot
afford any loss making contracts over the next few years that will
tie resources down, while the economy is growing at 6%. This type
of growth has not been seen for the last 20 years and the
construction industry as a whole will benefit well beyond the 2010
World Cup.
Change in control
Shareholders approved the Scheme of Arrangement proposed by Murray
& Roberts on 5 December 2005 and the court sanctioned the scheme
on 24 January 2006.
A favourable Competition Commission ruling is expected within the
next few weeks which will result in
Concor delisting from the JSE Limited and becoming a wholly owned
subsidiary of Murray & Roberts.
Murray & Roberts has indicated that Concor will continue to
operate independently and that a 15% BEE shareholder will be
brought into Concor.
Dividend declaration
The board has decided not to declare an interim dividend.
On behalf of the board
FW Keller AJ Bester
Chairman Chief Executive
Summarised consolidated income statement
Unaudited Unaudited Audited
Six months ended Year ended
31 December 30 June
Restated Original Restated Original
2005 2004 2004 2005 2005
R"000 R"000 R"000 R"000 R"000
Revenue 986 275 738 572 738 572 1 624 104 1 624 104
Operating
income before
finance cost
and investment 15 865 12 228 10 582 41 475 32 767
income
Interest 4 163 4 206 4 206 6 445 6 445
received
Interest paid (6 459) (2 578) (2 578) (11 209) (11 209)
Associates 6 (345) (345) 1 876 1 876
income/(losses)
after tax
Investment 3 961 2 352 2 352 6 327 10 327
income
Income before 17 536 15 863 14 217 44 914 40 206
taxation
Taxation (4 868) (4 812) (4 335) (15 911) (13 965)
Income after 12 668 11 051 9 882 29 003 26 241
taxation
Outside 246 41 41 (193) (193)
shareholders"
interest
Earnings
attributable to
ordinary 12 914 11 092 9 923 28 810 26 048
shareholders
Impairment of - - - 256 256
loans to
associates
Revaluation of - - - (1 639) (1 639)
investment
properties
Impairment of - - - 1 818 1 818
group
properties
Profit on sale - - - (134) (134)
of shares
Loss/(profit) 123 (103) (103) (119) (119)
on sale of
property
Headline
earnings
attributable to
ordinary 13 037 10 989 9 820 28 992 26 230
shareholders
Weighted
average number
of
shares in issue
after
consolidating
employee share 11 498 12 133 12 133 11 571 11 571
scheme 373 884 884 690 690
Earnings per 112.3 91.4 81.8 249.0 225.1
share (cents)
Headline 113.4 90.6 80.9 250.5 226.7
earnings per
share (cents)
Dividend 0.0 0.0 0.0 50.0 50.0
declared per
share (cents)
Dividend cover n/a n/a n/a 5.0 4.5
Abridged cash flow statement
Unaudited
Six months ended 31 December
Restated Original
2005 2004 2004
R"000 R"000 R"000
Operating activities
Cash receipts from 1 012 273 713 703 713 703
customers
Cash paid to suppliers (1 021 191) (702 554) (702 554)
Cash
(utilised)/generated
by operations (8 918) 11 149 11 149
Net interest (2 296) 1 628 1 628
(paid)/received
Dividends received 3 961 41 41
Dividends paid (5 769) (3 598) (3 598)
Taxation paid (116) (7 167) (7 167)
Cash (outflow)/inflow
from operating (13 138) 2 053 2 053
activities
Cash outflow from
investment activities (30 456) (28 729) (28 729)
Acquisition of property,
plant and equipment (30 908) (30 794) (30 794)
Movement in loans to
associate companies (502) - -
Proceeds on disposal of
property, plant and 1 837 3 331 3 331
equipment
Acquisition of unlisted (883) (1 266) (1 266)
investments
Net cash (43 594) (26 676) (26 676)
(utilised)/generated
Cash outflow from
financing activities (351) (5 780) (5 780)
Long term liabilities 10 748 12 364 12 364
raised
Short term loans repaid (13 834) (15 468) (15 468)
Treasury shares disposed 2 735 (2 676) (2 676)
of/(acquired)
(Decrease)/Increase in
deposits
and cash (43 945) (32 456) (32 456)
Unaudited Audited
Year ended 30 June
Restated Original
2005 2005
R"000 R"000
Operating activities
Cash receipts from customers 1 616 798 1 616 798
Cash paid to suppliers (1 514 991) (1 514 991)
Cash (utilised)/generated
by operations 101 807 101 807
Net interest (paid)/received (4 764) (4 764)
Dividends received 6 348 6 348
Dividends paid (3 405) (3 405)
Taxation paid (12 190) (12 190)
Cash (outflow)/inflow
from operating activities 87 796 87 796
Cash outflow from
investment activities (62 979) (62 979)
Acquisition of property,
plant and equipment (70 323) (70 323)
Movement in loans to
associate companies (503) (503)
Proceeds on disposal of
property, plant and equipment 9 946 9 946
Acquisition of unlisted (2 099) (2 099)
investments
Net cash (utilised)/generated 24 817 24 817
Cash outflow from
financing activities (6 234) (6 234)
Long term liabilities raised 4 944 4 944
Short term loans repaid (4 471) (4 471)
Treasury shares disposed (6 707) (6 707)
of/(acquired)
(Decrease)/Increase in deposits
and cash 18 583 18 583
Summarised consolidated balance sheet
Unaudited Unaudited Audited
31 December 30 June
Restated Original Restated Original
2005 2004 2004 2005 2005
R"000 R"000 R"000 R"000 R"000
Non-current 273 985 250 127 234 732 270 200 249 792
assets
Property, 187 915 156 338 134 655 178 243 149 497
plant and
equipment
Intangible 3 203 7 125 7 125 5 288 5 288
assets
Unlisted 59 323 50 601 50 601 57 813 57 813
investments
Investment 15 500 16 371 16 371 16 350 16 350
property
Deferred tax 8 044 19 692 25 980 12 506 20 844
asset
Current 493 386 431 303 431 303 565 203 565 203
assets
Other current 333 099 278 489 278 489 360 971 360 971
assets
Deposits and 160 287 152 814 152 814 204 232 204 232
cash
Total assets 767 371 681 430 666 035 835 403 814 995
Shareholders" 248 403 222 464 207 069 237 215 216 807
equity
Outside - 12 12 246 246
shareholders"
interest
Interest 47 257 46 765 46 765 50 343 50 343
bearing debt
Current 471 711 412 189 412 189 547 599 547 599
liabilities
Total equity 767 371 681 430 666 035 835 403 814 995
and
liabilities
Shares in 13 347 13 347 13 347 13 347 13 347
issue at year 594 594 594 594 594
end
Shares in
issue at year
end
after
consolidating
employee
share scheme 11 647 12 016 12 016 11 349 11 349
373 753 753 373 373
Net asset 21.33 18.51 17.23 20.90 19.10
value per
share (Rand)
Gearing (%) 19 21 23 21 23
Capital 30 908 30 794 30 794 70 323 70 323
expenditure
(R"000)
Capital 34 853 32 533 32 533 34 324 34 324
commitments
(R"000)
Depreciation 20 918 15 890 18 006 30 755 41 012
Statement of changes in equity
Unaudited
Six months ended 31 December
Restated Original
2005 2004 2004
R"000 R"000 R"000
Ordinary share capital and
premium
Opening and closing 58 314 58 314 58 314
balance
Treasury shares
Opening balance (7 984) - -
Shares disposed 2 735 (2 676) (2 676)
of/(acquired)
Closing balance (5 249) (2 676) (2 676)
Non-distributable reserve
Opening balance 10 933 1 686 1 686
Movement in foreign
currency
translation reserve 1 308 (382) (382)
Fair value adjustment
arising on
available-for-sale
financial assets
recognised in equity (net - 7 812 -
of deferred tax)
Closing balance 12 241 9 116 1 304
Distributable reserve
Opening balance as - 143 802 143 802
previously reported
Effect of adoption of IFRS
Adjustment arising due to
using
fair value as deemed cost
for
plant and equipment on
transition date
(net of deferred tax) - 14 226 -
Adjustment arising as a
result of
adoption of IAS 39
(Financial instruments:
recognition
and measurement) (net of - (7 812) -
deferred tax)
Effect of consolidation of - - -
share scheme
Restated opening balance 175 952 150 216 143 802
Earnings attributable to
ordinary shareholders 12 914 11 092 9 923
Dividend paid (5 769) (3 598) (3 598)
Closing balance 183 097 157 710 150 127
Shareholders" equity 248 403 222 464 207 069
Year ended 30 June
Unaudited Audited
Restated Original
2005 2005
R"000 R"000
Ordinary share capital and premium
Opening and closing balance 58 314 58 314
Treasury shares
Opening balance (1 277) (1 277)
Shares disposed of/(acquired) (6 707) (6 707)
Closing balance (7 984) (7 984)
Non-distributable reserve
Opening balance 1 981 1 981
Movement in foreign currency
translation reserve (2 280) (2 280)
Fair value adjustment arising on
available-for-sale financial assets
recognised in equity (net of deferred 11 232 -
tax)
Closing balance 10 933 (299)
Distributable reserve
Opening balance as previously 143 802 143 802
reported
Effect of adoption of IFRS
Adjustment arising due to using
fair value as deemed cost for
plant and equipment on transition
date
(net of deferred tax) 14 226 -
Adjustment arising as a result of
adoption of IAS 39
(Financial instruments: recognition
and measurement) (net of deferred (7 812) -
tax)
Effect of consolidation of share 331 331
scheme
Restated opening balance 150 547 144 133
Earnings attributable to
ordinary shareholders 28 810 26 048
Dividend paid (3 405) (3 405)
Closing balance 175 952 166 776
Shareholders" equity 237 215 216 807
Segmental information
Unaudited
Six months ended 31 December
Restated Original
2005 2004 2004
% R"000 R"000 R"000
Revenue
Construction 82 809 217 576 428 576 428
Manufacturing 18 173 778 158 542 158 542
Property 0 3 280 3 602 3 602
development
100 986 275 738 572 738 572
Income before
taxation
Construction 10 1 794 8 560 7 082
Manufacturing 106 18 631 10 335 10 167
Property (16) (2 889) (3 032) (3 032)
development
100 17 536 15 863 14 217
Geographical
Revenue
Republic of 100 985 686 728 443 728 443
South Africa
Rest of Africa 0 589 10 129 10 129
100 986 275 738 572 738 572
Year ended 30 June
Unaudited Audited
Restated Original
2005 2005
R"000 R"000
Revenue
Construction 1 310 215 1 310 215
Manufacturing 307 687 307 687
Property development 6 202 6 202
1 624 104 1 624 104
Income before taxation
Construction 21 964 17 493
Manufacturing 24 763 24 526
Property development (1 813) (1 813)
44 914 40 206
Geographical Revenue
Republic of South Africa 1 615 552 1 615 552
Rest of Africa 8 552 8 552
1 624 104 1 624 104
Notes
1. Accounting policies
With effect from 1 July 2005, the group adopted International
Financial Reporting Standards ("IFRS"), using certain exemptions
allowed for under IFRS 1 "First time adoption of IFRS". This
unaudited report is thus prepared in accordance with IFRS and
specifically in terms of IAS 34 "Interim Financial Reporting", the
JSE listings requirements and Schedule 4 of the South African
Companies Act. The effect of the adoption of IFRS on the
comparitive reporting periods is set out below.
Unaudited
Six months Year
ended ended
31 December 2004 30 June 2005
R"000 R"000
Result of the adoption of IAS 16
"Property, plant and equipment"
which requires depreciation to
be calculated by major component
and an annual re-assessment of
useful lives and residual
values. In adopting this policy,
the exemption under IFRS 1 was
used whereby fair value was used
as deemed cost as at 1 July
2004.
- Decrease in depreciation 2 116 10 257
- Decrease in profit on sale of (470) (1 549)
plant and equipment
- Increase in taxation related 477 2 526
thereto
The group applied the changes in
IAS 39 "Financial instrument:
recognition and measurement"
retrospectively. All fair value
adjustments previously made to
available-for-sale financial
instruments were moved to non-
distributable reserves.
- Decrease in investment income - (4 000)
- Decrease in taxation related - 580
thereto
The group adopted IFRS 2 "Share-based payments" early and has now
expensed all share options granted to employees after 7 November
2002 that had not vested by 1 July 2005. This had no effect on the
comparitive periods. The cost taken into account in the current
period is R1, 5 million.
2. Estimates
The group makes estimates and assumptions concerning the future,
particularly as regards construction contract profit taking,
provisions, arbitrations and claims. The resulting accounting
estimates can, by definition, only approximate the actual results.
Estimates and judgements are continually evaluated and are based
on historical experience and other factors, including expectations
of future events that are believed to be reasonable under the
circumstances.
Directors: FW Keller (Chairman), AJ Bester (Chief Executive),
TR Robinson, M Lommatzsch, CE Sevillano-Barredo
Secretary: R C Davies
Registered Office: Concor House, 13 Church Street Ext., Crown
Industria, Johannesburg 2001 (PO Box 8259, Johannesburg 2000)
Transfer Secretaries: Computershare Investor Services 2004 (Pty)
Limited, 70 Marshall Street, Johannesburg 2107
(PO Box 61051, Marshalltown, 2107)
www.concor.co.za
Date: 28/02/2006 01:52:52 PM Produced by the JSE SENS Department
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
