| Fri 30 Jun 2006, 9:30 | | Monteagle Holdings Societe Anonyme - Unaudited Int |
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MTE
MTE
Monteagle Holdings Societe Anonyme - Unaudited Interim Results for the
half year ended 31st March 2005
Monteagle Holdings Societe Anonyme
("Monteagle")
(Incorporated in Luxembourg - RC Luxembourg No. B 19600)
Share Code: MTE & ISIN Code: LU0035797272
30th June 2006
Dear Shareholder,
Unaudited Interim Results for the half year ended 31st March 2006
We are pleased to be able to report a successful half-year and further
significant growth in our import, export and distribution businesses.
Results
- Group revenue is up almost 5% to US$38,470,000 for the six months to 31st
March 2006, compared to US$36,689,000.
- Profit before tax, exchange gains and losses, and exceptional items is up
21% to US$1,507,000 from US$1,245,000.
- Last year"s one off exchange gains from foreign currency bank loans and
deposits have not been repeated
- Earnings per share have decreased slightly to US 25 cents from US 27 cents
last year.
- Headline earnings per share for this half year were US 6 cents compared to
US 8 cents in the first half of last year.
- We are proposing an interim dividend of US 3.5c payable in October.
- Net assets attributable to shareholders are up 11% to US$6.16 per share
from US$5.55 at 30th September of which US$4.20 (68%) are held in Europe
and USA. Our remaining assets of US$1.96 (32%) per share are now held
almost entirely in South Africa.
Import, Export & Distribution
Our shipping and distribution businesses saw another six months of favourable
growth in turnover and volumes of private label food and non-food products,
accredited mainly to organic growth and new product lines introduced in existing
markets, namely South Africa and Australia. During the period under review we
have experienced increased raw material and currency volatility, which we expect
to continue during the second half of the year and are well positioned to manage
to our advantage. Our operating structure continues to enable this division to
achieve additional economies of scale with existing international suppliers
assisting us in achieving our goal of being the private label supplier of choice
through the effective establishment of long-term strategic customer focused
partnerships with retailers and wholesalers on an international basis.
In local currency terms the turnover, gross profit and operating profit achieved
by our tool import and distribution businesses have increased, but the
strengthening of the US dollar against the SA Rand has resulted in a small
decrease in operating profits in US dollars for the half year. During the
period we have invested in IT to improve the demand forecasting systems and also
launched new product categories, which should deliver increased revenue and
margin opportunities for the balance of the financial year and beyond. Our new
IT systems have enabled us to introduce innovative clearance strategies for
under performing stock categories to improve working capital utilisation.
Property Portfolio
Our multi-tenanted property in California continues to produce satisfactory
returns, and demand for industrial space remains strong. It is still our
intention to invest in further property in the San Diego region, however we feel
the market is currently over valued, and as an interim measure we have invested
our cash balances in a portfolio of quality US equities. Our portfolio of
properties in South Africa continues to perform well and the rental income is
increasing.
Investment Portfolio
The Group"s diverse portfolio of equities had a strong six months, showing good
appreciation. We remain invested in quality equities in the major first world
markets. Recent market sentiment suggests that equity markets are in for more
volatile times.
Food Production and Processing
The last few months have seen some major structural changes at Conafex Holdings
Societe Anonyme ("Conafex"). In the past, Conafex"s ability to grow has been
impeded by its exposure to Zimbabwe. All Conafex"s investments in Zimbabwe have
now been spun off into a separate company (ZRC Limited), in which we retain a 54
per cent. interest, and which holds options permitting it to use any funds
realised from its investments in Zimbabwe to subscribe for additional Conafex
shares. Conafex is due to hold an EGM on 12th July 2006 to approve an issue of
new shares for cash, which will result in our interest being diluted to 44 per
cent. The issue of new shares will raise funds to assist Conafex in fulfilling
its strategy of growth by acquisition of agri-related businesses.
The reduction in turnover and the contribution from our food production and
processing businesses reflects the sale, at a significant profit, of Conafex"s
50% interest in Coffee, Tea and Chocolate Company (Pty) Limited; and also the
absence of exchange gains following repayment of Rand denominated loans which
had part funded that investment.
Halogen (listed associate 49.95% owned)
Halogen Holdings Societe Anonyme continues to seek an established profitable
business in the United Kingdom in which it can re-invest its US$3.5million cash
balances.
Gold Mining
The future of the gold mines in Zimbabwe remains dependent on that Government"s
policy for the amount it pays to compulsorily acquire the gold that we produce.
The world price of gold is US$581 per ounce and we receive in Zimbabwe Dollars
the equivalent of approximately US$350 per ounce (at the parallel exchange
rate). We are concerned about recent proposals for an indigenisation programme
under which Government and indigenous shareholders might obtain a 51 per cent
shareholding in foreign mining companies.
Group Staff
Once again we would like to thank all our employees for their hard work and we
appreciate their efforts and the contribution that they have made.
Net Assets
Group net assets have continued to increase. They now stand at US$6.16 per
share (US$38,812,000 at market value, net of minority interests and proposed
dividends), compared to US$5.92 per share (US$37,282,000) at 30th September
2005, and US$5.55 per share (US$34,950,000) a year ago. Net assets outside
Africa now stand at US$27,594,000, which equates to US$4.38 per share compared
to US$4.17 per share (ex-dividend) at September 2005.
Interim dividend
We are pleased to announce that the Company has declared an interim dividend of
US 3.5 cents per share payable on 6th October 2006 to shareholders on the
register at the close of business on 14th July 2006.
Last day to trade (JSE) Friday, 7 July 2006
Shares trade ex dividend
(JSE) Monday, 10 July 2006
Shares trade ex dividend
(LuxSE and LSE) Wednesday 12 July 2006
Record date (JSE) Friday, 14 July 2006
Record date (LuxSE and LSE) Friday 14 July 2006
Pay date Friday, 6 October 2006
Currency conversion date Thursday, 29 June 2006
Shareholders are hereby advised that the exchange rate to be used will be US$
1.00 = R7,23075.
This has been calculated as the average of the bid/ask spread as at opening of
business (United Kingdom time) on 29 June 2006.
Consequently the dividend of 3,5 US cents will be equal to 25,3 South African
cents.
No dematerialisation and rematerialisation of share certificates may take place
between Monday, 10 July 2006 and Friday 14 July 2006 or transfer of shares
between the registers in Luxembourg and SA and UK and SA may take place between
Friday, 30 June 2006 and Friday 14 July 2006, both days inclusive.
Prospects
Our investment in import, export and distribution businesses continues to show
good returns, and steady progress is being made by Conafex to broaden the base
and diversity of their investments. If the recent decline in value of the South
African Rand against the US Dollar is sustained, this will reduce the US dollar
value of our earnings from the South African businesses, however, we expect to
have another satisfactory year.
J.M. Robotham, D.C. Marshall
Chairman Chief Executive
Consolidated group profit and loss account
Half years ended Year ended
31st March 30th
September
2006 2005 2005
Notes Unaudited Unaudite Audited
d
US$000 US$000 US$000
Group revenue 2 38,470 36,689 75,039
Operating costs (36,851) (35,421) (70,716)
Operating profit 1,619 1,268 4,323
Share of associated (51) 45 129
companies" results
Income from Zimbabwean 6 7 7
investments - dividends
Income from investments - 96 149 343
dividends
- interest 115 129 296
1,785 1,598 5,098
Interest paid and similar (278) (344) (1,036)
charges
Realised exchange (69) 315 124
(losses)/gains
Profit on ordinary 1,438 1,569 4,186
activities before
exceptional items and
taxation
Exceptional items 3 1,261 1,340 1,345
Profit before taxation 2 2,699 2,909 5,531
Taxation (637) (567) (1,560)
Profit after taxation 2,062 2,342 3,971
Attributable to outside (464) (617) (1,281)
shareholders
PROFIT ATTRIBUTABLE TO 1,598 1,725 2,690
SHAREHOLDERS
Dividend per share (US - - 8.0c
cents)
Earnings per share (US 4 25c 27c 43 c
cents) - basic
Headline (loss)/earnings per 4 6c 8c 24 c
share (US cents)
Reconciliation of headline
earnings per share
Basic earnings per share (US 25 c 27 c 43 c
cents)
Less exceptional items, net of tax (19)c (19)c (19)c
and minority interests (US cents)
Headline earnings per share 6 c 8 c 24 c
(US cents)
Statement of changes in equity
Net profit/(loss) for the period 1,598 1,725 2,690
Exchange differences 239 754 442
Prior years" unclaimed dividends - - 63
forfeited
Group share of unrealised gains on 134 746 2,362
investments and property
revaluations
Dividend approved for the prior (441) (441) (441)
year
Total recognised profits 1,530 2,784 5,116
Shareholders" funds at start of 37,282 32,166 32,166
period
Shareholders" funds at end of 38,812 34,950 37,282
period
Consolidated group balance sheet
31st March 30th
September
2006 2005 2005
Unaudited Unaudit
US$000 US$000 US$000
Fixed assets
Tangible fixed assets 16,779 14,572 15,994
Investments
Listed associates 1,631 2,243 1,610
Listed - other 15,684 13,348 13,173
Unlisted associates 703 799 974
Other unlisted 731 402 737
Goodwill 182 - -
Intangibles - trade marks 17 - -
35,727 31,364 32,488
Current assets
Inventories 13,855 10,471 13,255
Accounts receivable 15,771 13,981 12,987
Cash 5,645 6,284 8,009
35,271 30,736 34,251
Current liabilities
Accounts payable (falling due (19,242) (16,550 (17,747)
within one year) )
Net current assets 16,029 14,186 16,504
Total assets less current 51,756 45,550 48,992
liabilities
Accounts payable (falling due after (5,704) (5,095) (5,366)
more than one year)
Provisions for liabilities and (43) 233 (73)
deferred taxation
46,009 40,688 43,553
Capital and reserves
Share capital 9,450 9,450 9,450
Other reserves 14,198 12,536 14,317
Retained earnings 15,164 12,964 13,515
Shareholders" funds 38,812 34,950 37,282
Minority interests 7,197 5,738 6,271
46,009 40,688 43,553
Consolidated cash flow statement
Half years ended Year ended
31st March 30th September
2006 2005 2005
Unaudited Unaudited
US$000 US$000 US$000
Operating activities
Cash generated from operating (234) 1,656 (650)
activities
Interest paid (278) (344) (1,036)
Taxation paid (746) (604) (1,199)
Net cash (outflow)/inflow (1,258) 708 (2,885)
from operating activities
Investment activities
Purchase of tangible fixed (743) (238) (604)
assets
Purchase of investments (3,219) (3,477) (4,323)
Proceeds on disposal of - 1,820
investment in joint venture
Disposal of tangible fixed 5 179 101
assets
Disposal of investments 2,007 901 4,959
Interest received and other 210 278 727
investment income
Dividends received from 6 7 7
Zimbabwe investments
Net cash (outflow)/inflow (1,734) (2,350) 2,687
from investment activities
Net cash outflow before (2,992) (1,642) (198)
financing
Financing activities
Net increase in long term 338 77 250
debt
Dividend paid - group (441) - (441)
- minority shareholders - - (2)
Net cash (outflow)/inflow (103) 77 (193)
from financing activities
Net decrease in funds (3,095) (1,565) (391)
Net funds at start of period 4,431 4,957 4,957
Effect of foreign exchange 109 (279) (135)
rates
Net funds at end of period 1,445 3,113 4,431
Notes to the interim statement
1. The results and the cash flow statement for the half-year ended 31st March
2006 are unaudited and have been prepared on the basis of accounting
policies adopted in the accounts for the year ended 30th September 2005 and
comply with International Financial Reporting Standards and Luxembourg law.
The results for the year to 30th September 2005 are an abridged version of
the Group"s full accounts for that year, which have been filed with the
relevant authorities.
2. The segmental analysis of revenue and operating profit is as follows: -
Half years ended 31st March Year ended
30th
September
2006 2005 2005
US$000 US$000 US$000
Revenue Result Revenu Resul Revenu Resu
e t e lt
Analysed by
activity:-
Import/distributio 36,159 2,272 32,555 1,844 71,138 5,45
n 0
Property 704 102 707 71 1,389 301
Food production 1,600 (21) 3,283 347 2,274 122
and processing
Other 7 453 144 613 238 1,01
8
38,470 2,806 36,689 2,875 75,039 6,89
1
Income from 6 7 7
Zimbabwean
investment
Share of
associated
companies results:-
Food production 7 45 212
and processing
Other (58) - (83)
Interest paid (278) (344) (1,0
36)
Provisions
(charged)/released 216 326 (460
against )
investments
Profit before tax 2,699 2,909 5,53
1
3. The exceptional items arise from the following.
31st March 30th
September
2006 2005 2005
US$000 US$000 US$000
Surplus on disposal of listed and 1,056 1,049 1,805
unlisted investments
Surplus on disposals of tangible fixed 4 2 -
assets
Release of/(charge for) provisions 216 289 (460)
against investments
Expenses of potential acquisitions (15) - -
Net exceptional items 1,261 1,340 1,345
4. Earnings per share are based on profits attributable to members and on the
average of 6,300,000 shares in issue during the period. Headline earnings
per share exclude extraordinary items after tax net of minority interests.
5. Net assets per share are based on Shareholders" funds after allowance for
proposed dividends, divided by the number of shares in issue of 6,300,000
at the period end.
6. There was capital expenditure of US$743,000 during the period (2005 -
US$238,000). There was no contracted, or outstanding authorised capital
expenditure at the balance sheet date.
Johannesburg
30 June 2006
Sponsor
Imara Corporate Finance South Africa (Pty) Ltd
Date: 30/06/2006 09:30:34 AM Produced by the JSE SENS Department
