| Thu 25 May 2006, 17:26 | | Wesco - Audited results: 12 months ended 31 March |
|
WES
WES
Wesco - Audited results: 12 months ended 31 March 2006 and dividend announcement
WESCO INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
Registration Number 1968/005871/06
ISIN: ZAE000007928 & JSE Share code: WES
("Wesco" or "the company")
Audited results for the 12 months ended 31 March 2006 and dividend announcement
ABRIDGED GROUP INCOME STATEMENT
Audited Audited
year ended year ended
31 March 31 March
R000 2006 2005
Income 15 565 19 100
Administrative expenses (4 329) (3 889)
Operating profit 11 236 15 211
Share of associates" income for the year 245 391 220 081
Profit before taxation 256 627 235 292
Taxation (9 187) (4 769)
Profit for the year 247 440 230 523
Attributable to:
Equity holders of the company 245 903 228 946
Minority interest 1 537 1 577
247 440 230 523
Per share information - cents
Basic earnings and diluted earnings 2 913 2 712
Headline earnings 2 913 2 712
Dividends declared and paid 2 400 400
ABRIDGED GROUP CASH FLOW STATEMENT
Audited Audited
year ended year ended
31 March 31 March
R000 2006 2005
Dividends received 52 399 44 693
Interest received 12 173 17 681
Dividends paid (202 603) (33 767)
Taxation paid (20 526) (6 706)
Other operating cash flows (3 464) (4 272)
Net cash flow in operating activities (162 021) 17 629
Available-for-sale financial assets realised
(acquired) 92 804 (106 482)
Decrease in cash and cash equivalents (69 217) (88 853)
Cash and cash equivalents at end of the year 28 210 97 427
ABRIDGED GROUP BALANCE SHEET
Audited Audited
31 March 31 March
R000 2006 2005
Assets
Non-current assets 1 438 201 1 294 822
Investments in associates 1 423 104 1 291 061
Property and equipment 3 662 3 761
Deferred taxation 11 435
Current assets 300 590 352 010
Total assets 1 738 791 1 646 832
Equity and liabilities
Capital and reserves 1 717 825 1 634 274
Minority interest 9 162 8 175
Deferred taxation 10 754 3 752
Current liabilities 1 050 631
Total equity and liabilities 1 738 791 1 646 832
Net asset value per share - cents 20 349 19 359
Number of ordinary shares in issue (000) 8 441.8 8 441.8
ABRIDGED STATEMENT OF CHANGES IN EQUITY
Audited Audited
31 March 31 March
R000 2006 2005
Share capital
Balance at beginning and end of the year 11 752 11 752
Non-distributable reserve 1 275 031 1 101 996
Balance at beginning of the year 1 101 996 908 063
Dilution of interest in associate (1 935) (1 960)
Movement in associates" reserves 201 1 477
Net fair value adjustment to available-for-
sale financial assets 41 985 21 592
Transfers from retained earnings 132 784 172 824
Retained earnings 431 042 520 526
Balance at beginning of the year 520 526 498 171
Profit for the year 245 903 228 946
Dividends paid (202 603) (33 767)
Transfers to non-distributable reserve (132 784) (172 824)
Total capital and reserves 1 717 825 1 634 274
Minority interest 9 162 8 175
Balance at beginning of the year 8 175 7 013
Profit for the year 1 537 1 577
Dividends paid (493) (405)
Other movements (57) (10)
Total equity 1 726 987 1 642 449
NOTES
1. Accounting policies
These consolidated financial statements have been prepared in accordance with
IAS34, Interim Financial Reporting, under the historical cost convention as
modified by the revaluation of available-for-sale financial assets.
The group has adopted International Financial Reporting Standards (IFRS). The
groups" transition date is 1 April 2004, and its opening IFRS balance sheet was
prepared as at that date. The group"s IFRS adoption date is 1 April 2005.
These accounting policies have been applied consistently to the periods
presented in these consolidated financial statements and in preparing the
opening IFRS balance sheet as at 1 April 2004 for the purposes of transition to
IFRS.
IFRS adjustments of significance are the restatement of the carrying value of
investments in associates (largely due to the associates" accounting treatment
of property, plant and equipment in application of IFRS), and accounting for
fair value adjustments to available-for-sale financial assets directly in equity
instead of in profit and loss. The effect of the transition to IFRS on the
group"s financial position and performance is set out in the table below. The
group"s cash flows were not affected.
31 March 31 March
R000 2005 2004
Reconciliation of equity
Equity previously reported under SA GAAP 1 609 856 1 402 708
Effect of transition to IFRS:
Non-distributable reserves 53 730 22 058
Retained earnings (21 592)
Minority interest 455 233
Equity reported under IFRS 1 642 449 1 424 999
Adjustment to assets
Investment in associates 32 593 22 291
Reconciliation of profit for the year ended
31 March 2005
Profit previously reported under SA GAAP 242 035
Effect of transition to IFRS:
Fair value adjustment gain (25 112)
Deferred taxation 3 520
Share of associates" retained income 10 080
Profit reported under IFRS 230 523
2. Commitments
The shareholders of Toyota SA were previously committed to purchase additional
equity share capital in that company, in order to fund its capital requirements.
This commitment was waived by mutual agreement during the year under review.
COMMENT
Review
Domestic motor vehicle sales increased by 28% during the 2005 calendar year.
Growth in passenger vehicle sales came mostly from imported vehicles, which, is
approaching 50% of all car sales.
Toyota SA"s local sales increased by 10.7% to 125 695 units, representing 20.4%
market share. Exports increased from 10 812 units to 20 660 units.
Income from Toyota SA for the financial year increased by 17% to R183 million,
of which R91.5 million was realised in the form of dividends. The associate
revised its dividend policy by reducing dividend cover from 5 to 2. Metair"s
contribution to Group income decreased slightly to R60.9 million. Metair"s
results for the year ended 31 December 2005 were earlier released and reported
on.
Income from other investments decreased from R19.1 million to R15.6 million,
interest-bearing investments having reduced as a result of a special dividend of
R18 per share paid by Wesco during the year.
Attributable income to Wesco shareholders was R245.9 million compared to R228.9
million of the previous year, an increase of 7.4%. Headline earnings were 2 913
cents per share (2005: 2 712 cents per share).
Market-value adjustments to other investments, previously included in the
Group"s earnings, are now directly accounted for in equity. Net adjustments
at the year-end date amounted to R41.9 million (2005: R21.6 million).
Outlook Although the benign economic conditions of 2005 are anticipated to
continue in 2006 with further substantial growth in motor vehicle sales, this
will not be reflected in Toyota SA"s financial results.
Toyota SA has entered a period of substantially increased investment in
buildings, plant, tooling and inventory, and these facilities will only be fully
utilised from the second half of 2007 when production volumes will increase
substantially, and returns on these investments will only be generated in later
years. Exports will be increased during the coming year with a detrimental
effect on overall margins at current exchange rates. In the longer term,
satisfactory returns on these large investments are expected.
Metair will benefit in terms of turnover from further growth in the domestic
vehicle market, and additional investments by the associate will be necessary to
meet customers" higher volume demands. Margins will remain under pressure if the
Rand continues in its current trading range.
AUDIT REPORTThe results for the year have been audited by PricewaterhouseCoopers
Inc. and their unqualified audit report on the 31 March 2006 annual financial
statements is available for inspection at the company"s registered office.
ANNUAL REPORTThe annual report for the year ended 31 March 2006 will be mailed
to shareholders on or about 9 June 2006.
ANNUAL GENERAL MEETINGThe 2006 annual general meeting will be held at the
company"s registered office on Wednesday, 19 July 2006 at 11:00.
DIVIDENDA special dividend (number 37) of 1 800 cents per ordinary share was
declared on 25 November 2005 and paid on 23 January 2006.
A final dividend (number 38) of 1 200(2005 number 36:600) cents per ordinary
share has been declared in terms of the dividend announcement set out below.
On behalf of the board
E Le R BRADLEY G J STRYDOM
Chairman Chief Executive Officer
Johannesburg
25 May 2006
Registered office
Wesco House, 10 Anerley Road, Parktown, Johannesburg
Telephone 011 646-3011
Facsimile 011 646-3022
Postal address
P O Box 2077, Saxonwold 2132
Registrars
Computershare Investor Services 2004 (Pty) Ltd
70 Marshall Street, Johannesburg
(P O Box 61051, Marshalltown 2107)
Sponsor
LPC Manhattan Moela (Pty) Ltd
4th Floor, South Office Tower, Hyde Park Corner, Hyde Park, Johannesburg
(P O Box 41966, Craighall 2024)
Auditors
PricewaterhouseCoopers Inc.
2 Eglin Road, Sunninghill, Johannesburg
(Private Bag X36, Sunninghill 2157)
DIVIDEND ANNOUNCEMENT
Notice is hereby given that final dividend number 38 of 1 200 cents per ordinary
share has been declared in respect of the financial year ended 31 March 2006. In
compliance with STRATE, the salient dates for the payment of the dividend are as
follows:
Last day to trade cum-dividend Friday, 7 July 2006
Shares commence trading ex-dividend Monday, 10 July 2006
Record date Friday, 14 July 2006
Payment date Monday, 17 July 2006
Share certificates may not be dematerialised/rematerialised between Monday 10
July 2006 and Friday 14 July 2006, both days inclusive.
On Monday 17 July 2006, the dividend will be electronically transferred to the
bank accounts of certificated shareholders who utilise this facility. In respect
of those who do not, cheques dated 17 July 2006 will be posted on or about that
date. The accounts of shareholders who have dematerialised their shares (which
are held at their central securities depository participant or broker) will be
credited on Monday 17 July 2006.
On behalf of the board
FDW PEACHEY
Company Secretary
Johannesburg
25 May 2006
Date: 25/05/2006 05:26:10 PM Produced by the JSE SENS Department
