| Thu 26 Oct 2006, 9:03 | | Wearne- Reviewed financial results for the six mon |
|
WEA
WEA
Wearne- Reviewed financial results for the six months ended 31 August 2006
W G Wearne Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005983/06)
(JSE code: WEA & ISIN: ZAE000078002)
("Wearne" or "the company")
Highlights
Revenue up 72%
Attributable earnings for six months up 89%
EPS up 51%
HEPS up 57%
NAV per share up 118%
Abridged income statements
Reviewed Reviewed Audited
6 months 6 months 12 months
ended ended ended
31 August 31 August 28 February
2006 2005 2006
R R R
Revenue 166 942 272 96 936 726 196 601 607
Cost of sales (115 952 176) (65 620 373) (137 069 374)
Gross profit 50 990 096 31 316 353 59 532 233
Other income 1 739 574 1 431 683 3 908 673
Administration expenses (26 199 447) (18 469 568) (33 444 682)
Earnings before interest, 26 530 223 14 278 468 29 996 224
tax, depreciation and
amortisation
Depreciation (6 373 346) (3 145 978) (6 241 167)
Profit before interest and 20 156 877 11 132 490 23 755 057
taxation
Net interest paid (1 798 239) (1 281 751) (2 153 891)
Profit before taxation 18 358 638 9 850 739 21 601 166
Taxation (5 172 930) (2 883 557) (5 868 219)
Profit attributable to 13 185 708 6 967 182 15 732 947
ordinary shareholders
Reconciliation of headline
earnings:
Profit attributable to 13 185 708 6 967 182 15 732 947
ordinary shareholders
Adjusted for profit on (465 153) (484 342) (1 028 689)
disposal of property, plant
and equipment
Headline earnings 12 720 555 6 482 840 14 704 258
attributable to ordinary
shareholders
Weighted average shares in
issue on which earnings are 125 015 000 100 000 000 100 547 945
based (1)
Basic earnings per share 10.55 6.97 15.65
(cents)
Adjusted for -
Profit on disposal of (0.37) (0.49) (1.02)
property, plant and
equipment (after tax)
(cents)
Headline earnings per share 10.18 6.48 14.63
(cents)
Weighted average shares in 125 015 000 100 000 000 100 547 945
issue on which earnings are
based (1)
Share trust treasury shares 4 985 000 - -
Fully diluted weighted 130 000 000 100 000 000 100 547 945
average shares in issue
Fully diluted earnings per 10.14 6.97 15.65
share (cents)
Fully diluted headline 9.79 6.48 14.62
earnings per share (cents)
Notes:
Weighted average calculation for 31 August 2005 is based on the conversion of
82 625 ordinary shares in issue to 100 000 000 ordinary shares in issue.
Abridged balance sheets
Reviewed Reviewed Audited
31 August 31 August 28 February
2006 2005 2006
R R R
ASSETS
Non-current assets 110 545 446 52 733 952 68 786 895
Property, plant and 105 561 561 48 855 571 64 004 353
equipment
Goodwill 2 418 636 2 418 636 2 418 638
Unlisted investments and 2 565 249 1 459 745 2 363 904
associates
Current assets 92 579 067 50 409 477 60 319 240
Inventories 9 112 887 10 666 749 10 100 269
Trade and other receivables 58 657 432 37 538 553 30 232 775
Bank and cash 24 808 748 2 204 175 19 986 196
Total assets 203 124 513 103 143 429 129 106 135
EQUITY AND LIABILITIES
Equity 72 020 779 26 359 876 58 760 289
Issued capital 125 015 82 625 125 000
Share premium 23 457 378 - 23 442 393
Accumulated profits 48 438 386 26 277 251 35 192 896
Non-current liabilities 63 706 125 29 194 505 33 002 873
Environmental obligation 5 677 706 5 258 987 5 461 256
Instalment sale creditors 49 180 704 19 485 142 20 815 424
Deferred taxation 8 847 715 4 450 376 6 726 193
Current liabilities 67 397 609 47 589 048 37 342 973
Trade and other payables 50 364 229 33 172 674 28 076 933
Current portion of non- 13 839 383 8 008 533 7 309 973
current liabilities
Taxation 3 193 997 5 241 701 1 956 067
Bank overdraft - 1 166 140 -
Total equity and 203 124 513 103 143 429 129 106 135
liabilities
Number of shares in issue 125 015 000 100 000 000 125 000 000
Net asset value per share 57.6 26.4 47.0
(cents)
Net tangible asset value 55.7 23.9 45.1
per share (cents)
Notes:
Weighted average calculation for 31 August 2005 is based on the conversion of
82 625 ordinary shares in issue to 100 000 000 ordinary shares in issue.
Abridged statements of changes in equity
Reviewed Reviewed Audited
6 months 6 months 12 months
ended ended ended
31 August 31 August 28 February
2006 2005 2006
R R R
Balance at beginning of 58 760 289 19 361 236 19 361 236
period
Net profit for the period 13 185 708 6 967 182 15 732 947
Issue of share capital 15 000 - 23 484 768
Losses taken to equity - (12 262) -
Investment fair value 59 782 43 736 181 338
adjustment
Balance at end of period 72 020 779 26 359 892 58 760 289
Abridged cash flow statements
Reviewed Reviewed Audited
6 months 6 months 12 months
ended ended ended
31 August 31 August 28 February
2006 2005 2006
R R R
Cash flows from operating 19 567 175 10 879 487 22 533 571
activities
Cash flow from investing (47 606 962) (19 759 688) (27 015 364)
activities
Cash flow from financing 32 862 339 14 741 549 29 291 301
activities
Net increase in cash and 4 822 552 5 861 348 24 809 508
cash equivalents
Cash and cash equivalents 19 986 196 (4 823 312) (4 823 312)
at beginning of period
Cash and cash equivalents 24 808 748 1 038 036 19 986 196
at end of period
OVERVIEW
The directors of Wearne are pleased to present the reviewed interim financial
results for the six months ended 31 August 2006 ("the interim period"),
which have exceeded expectations and delivered excellent growth in all key
performance indicators.
Group revenue increased by 72% to R167 million. Within the divisions, the
aggregates business grew turnover by 49%. Ready mixed concrete turnover
increased significantly by 80% partly due to two major contracts secured
by Wearne and started at the beginning of the financial year. The
contracts are due to be completed in the 2008 financial year.
FINANCIAL RESULTS
Gross profit increased to R51 million for the interim period, 63% higher than
the comparative interim period. EBITDA grew significantly by 86% to R26.5
million off the higher revenue base, while notably the group managed to
maintain operating margins.
Headline earnings of R12.7 million almost doubled the R6,5 million for the
comparative interim period while profit attributable to ordinary
shareholders rose 89% to R13.2 million.
PROSPECTS
Whilst the second half of the year is traditionally slower due to the builders
break over the festive season, most of Wearne"s major projects are due to
be completed only after year-end, which should enable the group to
maintain current levels of turnover.
In addition Wearne is currently tendering on a number of major civil and
building projects, which should ensure that the company will continue to
deliver real growth for the full financial year to February 2007.
POST BALANCE SHEET EVENTS
Shareholders are referred to the announcements dated 11 September 2006, 20
September 2006 and 24 October 2006, respectively, in respect of Wearne"s
acquisition of the business, moveable assets and various properties of W
De Bruyn Sandwerke CC, ("the DBS transaction") for R135 million.
SHARE CAPITAL
Prior to the date of listing on ALTX, an offer was made to the group"s
employees to acquire shares in the company through the Share Incentive
Trust with the objective of increasing the Black Economic Empowerment
shareholding of the company. The 4 985 000 shares have been treated as
"treasury" shares in the share capital of the company and deducted from
equity.
Wearne has placed 20 000 000 ordinary shares with public and BEE investors at
270 cents per share, to partly fund the DBS transaction.
DIVIDEND POLICY
In line with group policy no dividend has been declared for the period.
BASIS OF PREPARATION
The interim results have been prepared in accordance with IAS 34 (Interim
Financial Reporting). The accounting policies used to prepare these
interim financial statements are consistent with those applied in the
prior interim period and at previous year-end and are in accordance with
International Financial Reporting Standards.
These consolidated interim financial statements incorporate the financial
statements of the company, its subsidiaries and special purpose entities
that, in substance, are controlled by the group. Results of subsidiaries
are included from the effective date of acquisition or up to the effective
date of disposal. All significant transactions and balances between group
enterprises are eliminated on consolidation.
This announcement has been prepared in accordance with the Listings
Requirements of the JSE Limited.
AUDITORS" REVIEW
The auditors, Clarke and Patterson, have reviewed these interim results. A
copy of their unqualified review opinion is available for inspection at
the company"s registered office.
By order of the Board
26 October 2006
S J Wearne O J G Harvey
Chief Executive Officer Chief Financial Officer
CORPORATE INFORMATION
Non executive directors:
B Mkhonto, E Moloi
Executive directors:
S J Wearne (Chairman and CEO); J C Wearne; B J du Toit; O J G Harvey
Registration number: 1994/005983/06
Registered address: Main Road, Aureus, Randfontein, 1759
Postal address: PO Box 1422, Randfontein, 1760
Company secretary: O J G Harvey
Telephone: (011) 412 3000
Facsimile: (011) 412 3002
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 in 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 Listings
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 Listings 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 securities.
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: 26/10/2006 09:03:17 AM Produced by the JSE SENS Department
