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WSL
WSL
Wescoal Holdings Limited - Audited Results for the year ended 31 March 2006
Wescoal Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 2005/006913/06)
(JSE code: WSL ISIN: ZAE000069639)
("Wescoal" or "the Group")
AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31 MARCH 2006
CONSOLIDATED INCOME STATEMENT
Year ended Unaudited*
31 March 2006 pro forma
Audited group after
R"000 Chandler
adjustment
(Note 1)
Year ended
31 March 2005
R"000
Revenue 178,735 194,786
Gross profit 14,357 16,677
Other income 117 154
Operating costs (10,739) (8,067)
Loss from associate - (437)
Profit on sale of associate company 437 -
Profit before interest and taxation 4,172 8,327
Net interest paid (323) (161)
Profit before taxation 3,849 8,166
Taxation 748 (3,370)
Net profit for the year 4,597 4,796
Headline earnings reconciliation
Net profit for the year 4,597 4,796
Less: Profit on sale of associate (437) -
company
Less: Profit on disposal of asset - (27)
Headline earnings 4,160 4,769
Earnings per share
Ordinary shares in issue (000"s)
-Total at period end 103,709 60,000
-Weighted average shares in issue 98,098 60,000
-Fully diluted weighted average 98,233 60,000
shares in issue (Note 2)
Earnings per share information
Attributable earnings per ordinary 4,7 8.0
share (cents)
Headline earnings per share (cents) 4,2 8.0
Fully diluted attributable earnings 4.7
per share (cents) 8.0
Fully diluted headline earnings per 4.2 8.0
share (cents)
*Restated in terms of IFRS
Notes:
Wescoal, previously known as Abrina 724 Limited acquired 100% of the
shares in Chandler Coal (Pty) Limited ("Chandler") with effect from 1
April 2005, and to make comparison meaningful the unaudited results of
Chandler has been shown.
Pro forma calculation for 31 March 2005 is based on the conversion of the
original 70 ordinary shares in issue to 60 000 000 under the new group
structure.
Fully diluted earnings per share information is reflected showing the
potential effect of the full dilution for 1 million options held by the
Wescoal directors to subscribe for new shares in Wescoal at 50 cents per
share.
CONSOLIDATED BALANCE SHEETS
Audited Unaudited*
31 March pro forma
2006 group after
R"000 Chandler
adjustment
(Note 1)
Year ended
31 March 2005
R"000
ASSETS
Non-current assets 44,787 33,806
Property, plant and equipment 10,588 1,696
Goodwill 32,691 27,986
Interests in associate company - 4,111
Deferred taxation 1,508 13
Current assets 36,502 21,374
Total assets 81,289 55,180
EQUITY AND LIABILITIES
Total shareholders" funds 42,661 30,026
Non-current liabilities
Long-term debt 6,435 -
Current liabilities 32,193 25,154
Total equity and liabilities 81,289 55,180
* Restated in terms of IFRS
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Distribu- Total
Capital Premium table R"000
R"000 R"000 Reserves*
R"000
Balance at 1 April 60 - - 60
2005
Shares issued 144 38,893 - 39,037
Listing expenses - (1,033) - (1,033)
Earnings attributable - - 4,597 4,597
to share holders
Balance as at 31 March 204 37,860 4,597 42,661
2006
* Restated in terms of IFRS
CONSOLIDATED CASH FLOW STATEMENTS
Year ended Chandler
31 March 2006 (Note 1)
Audited Year ended
R"000 31 March 2005
Audited *
R"000
Net cash from operating activities 80 2,026
Investing activities (7,344) (3,668)
Financing activities 9,458 2,158
Net increase/(decrease) in cash and 2,194 516
cash equivalents
Cash and cash equivalents at 768 252
beginning of period
Cash and cash equivalents at end of 2,962 768
period
* Restated in terms of IFRS
COMMENTS
The directors of Wescoal herewith present the maiden annual financial results
for the year ended 31 March 2006 ("the year"). Wescoal successfully listed on
the Alternative Exchange (AltX) of the JSE Limited on 20 July 2005 with the
capital raising in terms of a private placing of R7 million. The capital
raising allowed the group to further upgrade the existing coal washing
facilities and to aggressively pursue additional coal deposits.
FINANCIAL RESULTS
The group"s revenue for the year was 8.2% lower than the comparative period.
Sales into the domestic market were 19.2% lower than last year due to extremely
warm conditions prevailing during the 2005 winter. Similar trends were
experienced in the off take of coal by seasonal producers and industrial
customers. Margins reduced by 0.6% to 8.0% from last year mainly due to the low
demand and over supply of coal product.
The group acquired the remaining 66% of Wescoal Mining ("Wesmine") on 18 July
2005. Wesmine experienced difficulties during the second half of the year
where, during this period, raw material supply to Wesmine was interrupted for 3
months. This situation was addressed and rectified during March 2006 with the
signing of a raw material supply agreement.
PROSPECTS
Since the beginning of March 2006, the market conditions have improved
resulting in Wescoal achieving record sales and profits for the first two
months of the financial year ending 31 March 2007. In addition the raw material
supply agreement resulted in Wesmine returning to profits. Should the favorable
market conditions continue as expected, management is confident of achieving
the forecast EPS and HEPS of 8,6 cents for the year ending 31 March 2007.
DIVIDEND POLICY
In line with the group"s growth strategy, no dividend was declared for the
year.
BASIS OF PREPARATION
The consolidated annual financial statements have been prepared in accordance
with International Financial Reporting Standards (IFRS) effective at 31 March
2006 as well as the South African Companies Act, 1973.
These are the group"s first IFRS financial statements and the provisions of
IFRS 1 First-time adoption of International Financial Reporting Standards, have
been applied.
SUBSEQUENT EVENTS - PROPOSED ACQUISITION OF ANKER COAL & MINERAL HOLDINGS SA
(PTY) LIMITED ("ANKER SA")
Shareholders were advised on 31 May 2006 in a detailed announcement on SENS
that Wescoal has purchased all the issued shares in and certain shareholders"
claims on loan account against Anker SA subject to certain conditions
precedent, including shareholder approval.
A circular with full particulars of the proposed acquisitions, as well as
Revised Listings Particulars of Wescoal, including a Competent Persons Report
("CPR") which is currently being undertaken by Steffen Robertson and Kirsten
(South Africa) (Pty) Limited and a notice of general meeting of shareholders,
will be mailed to shareholders upon completion of the CPR.
AUDITOR"S REPORT
The group"s auditors, Middel & Partners, have audited the group annual
financial statements. A copy of their unqualified audit opinion is available
for inspection at the company"s registered office.
By order of the Board
22 June 2006
T E Skweyiya A R Boje
Chairman Chief Executive Officer
CORPORATE INFORMATION
Non-Executive directors: JG Pansegrouw,
TA Tulwana,
JM Nieman (alternate for TA Tulwana)
Executive directors: TE Skweyiya
AR Boje
P Janse van Rensburg
Registration number: 2005/006913/06
Registered address: 74 von Brandis Street
Krugersdorp
1740
Postal address: PO Box 133
Krugersdorp
1740
Company secretary: P Janse van Rensburg
Telephone: 011 - 660 2484
Facsimile: 011 - 660 2894
Transfer secretaries: Computershare Investor Services 2004
(Pty) Limited
Designated Adviser: Exchange Sponsors (Pty) Limited
Warning: The listing of ordinary shares in the company is on ALTx. Investors
are advised of the risks of investing an a company listed on ALTx. Investors
are advised that the JSE does not guarantee the viability or the success of a
company listed on ALTx. In terms of the Listing Requirements, the company is
obliged to appoint and retain a Designated Adviser, which is required to, inter
alia, attend all board meetings held by the company to ensure that all the
Listing Requirements and applicable regulations are complied with, approve the
Financial Director of the company and guide the company in a competent,
professional and impartial manner. If the company fails to retain a Designated
Adviser, it must make arrangements to appoint a new Designated Adviser within
10 business days, failing which the company faces suspension of trading of its
secrities. If a Designated Adviser is not appointed within 30 days of its
suspension, the company faces the termination of its listing without the
prospect of an appropriate offer to minority shareholders.
Date: 22/06/2006 03:09:23 PM Produced by the JSE SENS Department
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