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MTE
MTE
MTE - Monteagle - Preliminary unaudited results and dividend declaration
Marshall Monteagle Holdings Societe Anonyme
(Previously Monteagle Holdings Societe Anonyme)
("Monteagle")
(Incorporated in Luxembourg - RC Luxembourg No. B 19600)
Share Code: MTE & ISIN Code: LU0035797272
Preliminary announcement of unaudited results for the year ended 30th
September 2006 and dividend declaration
INTRODUCTION
Marshall Monteagle`s objective is to achieve capital growth and pay a steadily
progressive dividend over the long term from a diversified range of
investments. The Company holds portfolios of leading investments in the
U.S.A., U.K., Europe and the Far East as well as commercial properties in the
U.S.A and South Africa. The Group`s import, export and distribution
businesses operate internationally and in South Africa we have a property
portfolio and interests in food production and processing.
RESULTS
Results for the year have been impressive with all divisions performing well.
The highlights are:
* Group revenues up 12% to US$78 million (R606 million).
* Operating profit up 12% to US$4.8 million (R37 million).
* Net assets up 9% to US$40.7 million (R316 million).
* Total dividend for the year up 5% to US 4.25 cents (29,84 SA cents).
IMPORT AND DISTRIBUTION
Our shipping and distribution businesses saw another year of growth in
turnover and volumes of private label food and non-food products, credited
mainly to organic growth and new product lines introduced in existing markets,
namely South Africa and Australia. Our buying offices in South America and
China, which were established in 2005, have assisted greatly in achieving
additional economies of scale with international producers and suppliers in
these key regions that we are actively developing. We have recently
established a new Industrial Division that is focused on the sourcing,
procurement and supply of products to the food service industry and will also
supply raw materials and ingredients to food manufacturers and processors.
Our operating structure continues to enable this division to achieve 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 focussing on effective delivery and customer
service.
We import and distribute hand tools, compressors and other DIY household
products into South Africa and Australia. These businesses produced
satisfactory results during the year and the market for DIY and hardware in
South Africa and Australia remains buoyant. The consolidation of the hardware
retail market in South Africa has presented our business with certain
challenges and margin pressure; however we strive to be the supplier of choice
to the hardware market.
PROPERTY
Our multi-tenanted industrial property in California is fully let and
continues to produce satisfactory returns. During the year we decided to take
advantage of the competitive borrowing environment in the U.S. and refinanced
our San Diego property with a new loan. The proceeds from the loan, which were
received after the year-end, have been added to our portfolio of U.S. equities
and Treasury Bills but are earmarked for further property in the San Diego
region. Our investment properties in South Africa also continue to perform
well.
INVESTMENT PORTFOLIOS
Our diverse portfolio of equities showed some healthy appreciation during the
year, particularly Europe and Switzerland, which again outperformed the U.S.
and other first world markets. We remain invested in quality companies in the
U.S., U.K., Europe and the Far East. We are cautiously optimistic about the
outlook for equities in 2007.
CONAFEX HOLDINGS
Conafex is an African focussed agri-resource group listed in Luxembourg and
South Africa. Conafex takes strategic stakes in businesses focused on
horticulture, niche and value-added agriculture. During the year Conafex
ceased to be subsidiary following the raising of funds by means of a share
placing, reducing our interest from 60.4% to 43.7%. We now value our
investment in this associate at market value and have therefore made an
exceptional provision against the cost of this investment of US$467,000
(R3,628,590) (2005: not applicable).
HALOGEN HOLDINGS
Halogen Holdings Societe Anonyme continues to seek an established profitable
business in the United Kingdom in which it can re-invest its US$3.6 million
cash balances. We value our investment in Halogen at market value and have
therefore made an exceptional provision against the cost of this investment of
US$252,000 (R1,958,040) (2005: provision of US$460,000 (R2,925,600)).
OTHER INTERESTS
Our interests in Zimbabwe have again not been consolidated as the ability of
these businesses to remit earnings remains uncertain. The value of our
investment in these businesses has been fully provided against in previous
years and therefore does not appear in our accounts.
GROUP PERSONNEL
The continued improvement in our results would not be possible without the
hard work of our employees. We would like to thank all our staff for their
contribution to the satisfactory results for the year. An employee benefit
trust has been created and 840,000 shares put into it to incentivise key
personnel.
NET ASSETS
Net assets in hard currencies have increased 7% to US$28,673,000
(R222,789,210) and other assets, all in South Africa, have increased 15% to
US$12,051,000 (R93,636,270). These increases are due to property
revaluations, increased investment values and retained profits.
DIVIDEND
We declared an interim dividend of 1.75 US cents per share which was paid in
October. We are pleased to recommend a final dividend of 2.50 US cents, to
give an increased dividend of 4.25 US cents per share for the year (2005: 4 US
cents, adjusted for the bonus issue). The dividend will be recommended to be
paid on 20th April 2007 to those shareholders on the register at the close of
business on 23rd March 2007
Last day to trade (JSE) Thursday, 15 March 2007
Shares trade ex dividend (JSE) Friday, 16 March 2007
Shares trade ex dividend (LuxSE and LSE) Wednesday 21 March 2007
Record date (JSE) Friday, 23 March 2007
Record date (LuxSE and LSE) Friday 23 March 2007
Pay date Friday 20 April 2007
Currency conversion date Tuesday, 19 December 2006
Shareholders are hereby advised that the exchange rate to be used will be US$
1.00 = R7,0220.
This has been calculated as the average of the bid/ask spread as at opening of
business (United Kingdom time) on 19 December 2006.
Consequently the dividend of 4.25 US cents will be equal to 29,84 South
African cents.
No dematerialisation and rematerialisation of share certificates may take
place between Friday, 16 March 2007 and Friday 23 March 2007, both dates
inclusive.
PROSPECTS
Our diverse mix of businesses and investments gives us confidence that in 2007
we will again be able to enhance shareholder value. This is despite evidence
that growth has slowed in certain first world markets, together with concerns
about the U.S. housing market and continued currency volatility around the
world.
D C Marshall Chairman
J M Robotham Chief Executive
ANNUAL GENERAL MEETING
The Annual General Meeting of the Company will be held on Friday 30th March
2007 at 4.00 p.m. at the registered office of the Company, 6 rue Adolphe
Fischer, L-1520, Luxembourg.
Unaudited Consolidated Profit and Loss Account
FOR THE YEAR ENDED 30th 2006 2005 2006 2005
SEPTEMBER
SAR000 SAR000 US$000 US$000
Group revenue 612,734 446,745 78,859 70,243
Operating costs (575,143) (419,251) (74,021) (65,920)
Operating profit 37,591 27,494 4,838 4,323
Share of associated 1,212 820 156 129
companies` results
Income from Zimbabwean 39 45 5 7
investments - dividends
Income from other 2,914 2,181 375 343
investments - dividends
- interest 1,469 1,883 189 296
Interest paid and similar (10,225) (6,589) (1,316) (1,036)
charges
Realised exchange (956) 789 (123) 124
(losses)/gains
Profit on ordinary 32,044 26,623 4,124 4,186
activities before
exceptional items and tax
Exceptional items, excluding 2,618 8,554 337 1,345
provision against investment
in Zimbabwe
Profit before tax and 34,662 35,177 4,461 5,531
minority interests
Taxation (12,362) (9,922) (1,591) (1,560)
Profit after tax before 22,300 25,255 2,870 3,971
minority interests
Minority interests (8,726) (8,147) (1,123) (1,281)
Profit attributable to 13,574 17,108 1,747 2,690
shareholders of the Group
SA Cents SA Cents US Cents USCents
Basic and fully diluted 106 137 13.6 21.5
earnings per share
Less exceptional items, less -18 -60 -2.3 -9.5
tax and minority interests
Headline earnings per share 88 76 11.3 12.0
SA Cents SA Cents US Cents US Cents
Interim dividend paid 14 - 1.75 -
Recommended final dividend 19 25 2.50 4.00
Total dividends in respect 33 25 4.25 4.00
of the year
Unaudited Consolidated Statement of Recognised Gains and Losses
2006 2005 2006 2005
SAR000 SAR000 US$000 US$000
Exchange differences on (11,127) 2,811 (1,432) 442
translation of the financial
statements of foreign
entities
Group share of fair value 9,930 7,460 1,278 1,173
adjustments
Group share of revaluations 14,577 7,562 1,876 1,189
Net gains not recognised in 13,380 17,833 1,722 2,804
the income statement
Dividend paid for the (3,916) (2,805) (504) (441)
previous year
Shares issued 4,895 - 630 -
Interim dividend declared (1,826) - (235) -
Prior years` unclaimed 78 401 10 63
dividends forfeited
Net profit for the period 13,574 17,108 1,747 2,690
Total recognised gains and 26,185 32,537 3,370 5,116
increase in shareholders`
funds
Effect of foreign exchange 52,567 (3,537)
rate changes
Shareholders` funds brought 237,114 208,114 37,282 32,166
forward
Shareholders` funds carried 315,866 237,114 40,652 37,282
forward
Unaudited Consolidated Balance Sheet
AT 30th SEPTEMBER 2006 2005 2006 2005
SAR000 SAR000 US$000 US$000
Assets
Non current assets
Property, plant and 142,300 101,722 18,314 15,994
equipment
Investments 174,600 104,902 22,471 16,494
316,900 206,624 40,785 32,488
Current assets
Inventories 101,872 84,302 13,111 13,255
Accounts receivable 106,698 82,597 13,732 12,987
Cash and bank balances 15,377 50,937 1,979 8,009
223,947 217,836 28,822 34,251
Current liabilities
Accounts payable (falling (142,082) (112,871) (18,286) (17,747)
due within one year)
Net current assets 81,865 104,965 10,536 16,504
Total assets less current 398,764 311,589 51,321 48,992
liabilities
Non current liabilities
Accounts payable (falling (40,777) (34,128) (5,248) (5,366)
due after more than one
year)
Deferred taxation (1,002) (464) (129) (73)
356,985 276,997 45,944 43,553
Capital and reserves
Called up share capital 156,643 60,102 20,160 9,450
Other reserves 86,566 91,056 11,141 14,317
Retained earnings 72,657 85,955 9,351 13,515
Shareholders` funds 315,866 237,113 40,652 37,282
Minority interests 41,119 39,884 5,292 6,271
356,985 276,997 45,944 43,553
Net assets per share SAR 23.47 SAR 18.83 USD 3.02 USD 2.96
Unaudited Consolidated Cash Flow Statement
Proceeds on disposal of - 11,575 - 1,820
investment in joint venture
Disposal of tangible fixed 389 642 50 101
assets
Disposal of investments 27,482 31,539 3,537 4,959
Interest received and other 4,382 4,624 564 727
investment income
Dividends received from 39 45 5 7
Zimbabwean investments
Net cash (outflow)/inflow (38,975) 17,090 (5,016) 2,687
from investment activities
Net cash outflow before (38,657) (1,259) (4,975) (198)
financing
Financing activities
Net (decrease)/increase in (645) 1,590 (83) 250
long term debt
Dividend paid - group (3,916) (2,805) (504) (441)
- minority shareholders - (13) - (2)
Net cash outflow from (4,561) (1,228) (587) (193)
financing activities
Net decrease in funds (43,217) (2,487) (5,562) (391)
Net funds at 1st October 34,429 31,527 4,431 4,957
Effect of foreign exchange 591 (859) 76 (135)
rate changes
Net funds at 30th September (8,197) 28,181 (1,055) 4,431
SEGMENTAL REPORTING
Primary reporting format - business segments
The Group is organised on a worldwide basis into the following main business
segments:
Import and distribution Tool import and non-perishable food imports
to and exports from South Africa; non
perishable food imports to Japan and
Australia.
Food production and Horticulture, niche and added value
processing agriculture in South Africa through Conafex
Property Investment properties in California and South
Africa.
Other operations Mainly transactions relating to the share
portfolios, profits on disposals of tangible
and intangible fixed assets and local head
office costs.
There are no sales between business segments. Segment assets consist of
property, plant and equipment, inventories and receivables and exclude cash
balances. Segment liabilities are operating liabilities and exclude items
such as taxation and borrowings. Capital expenditure comprises additions to
property, plant and equipment.
Unallocated assets and liabilities are cash balances, taxation and borrowings.
2006 2005
Segmental analysis of SAR000 SAR000
results
Revenue Result Revenue Result
Import and distribution 574,693 44,141 421,935 34,662
Property 11,150 2,914 8,834 1,914
Food production and 26,891 1,352 14,462 777
processing
Other activities - 8,003 1,514 6,474
612,734 56,410 446,745 43,827
Income from Zimbabwean 39 45
investment
Share of associates and
dividend income:
Food production and 1,733 1,348
processing
Other (521) (528)
Interest paid and similar (10,225) (6,589)
charges
47,436 38,103
Costs of bonus issue,
capital increase and
Employee Benefit Trust
(7,187) -
2006 2005
Segmental analysis of US$000 US$000
results
Revenue Result Revenue Result
Import and distribution 73,963 5,681 66,342 5,450
Property 1,435 375 1,389 301
Food production and 3,461 174 2,274 122
processing
Other activities - 1,030 238 * 1,018
78,859 7,260 70,243 6,891
Income from Zimbabwean 5 7
investment
Share of associates and
dividend income:
Food production and 223 212
processing
Other (67) (83)
Interest paid and similar (1,316) (1,036)
charges
6,105 5,991
Costs of bonus issue,
capital increase and
Employee Benefit Trust
(925) -
* Revenue of Other activities excludes dividend income and the
proceeds of sales of investments and tangible assets, the profits of
which are included in the result of this segment.
Segmental analysis of net assets 30th September 2006
Assets Liabiliti Net assets/ Capital Depreciati
es (liabilitie expenditu on charge
s) re
SAR000 SAR000 SAR000 SAR000 SAR000
Import and 215,400 106,278 109,122 6,379 1,228
distribution
Property 115,105 4,545 110,559 2,378 124
Food
production and
processing
- Group - - - - -
- Associates - - - - -
Listed 9,736 - 9,736 - -
associate -
Food
productiom
Listed 9,992 - 9,992 - -
associate -
Other
Other 156,526 4,997 151,531 - 62
activities
(including
investments)
Unallocated
(including
cash, tax and
debt)
34,087 68,042 (33,955) - -
Consolidated 540,846 183,862 356,985 8,757 1,414
total
Segmental analysis of net assets 30th September 2006
Assets Liabiliti Net assets/ Capital Depreciati
es (liabilitie expenditu on charge
s) re
US$000 US$000 US$000 US$000 US$000
Import and 27,722 13,678 14,044 821 158
distribution
Property 14,814 585 14,229 306 16
Food
production and
processing
- Group - - - - -
- Associates - - - - -
Listed 1,253 - 1,253 - -
associate -
Food
productiom
Listed 1,286 - 1,286 - -
associate -
Other
Other 20,145 643 19,502 - 8
activities
(including
investments)
Unallocated
(including
cash, tax and
debt)
4,387 8,757 (4,370) - -
Consolidated 69,607 23,663 45,944 1,127 182
total
Segmental analysis of net assets 30th September 2005
Assets Liabiliti Net assets/ Capital Depreciatio
es (liabilities expenditu n charge
) re
SAR000 SAR000 SAR000 SAR000 SAR000
Import and 169,475 80,149 89,326 3,046 1,495
distribution
Property 86,458 1,126 85,332 782 350
Food
production and
processing
- Group 10,717 2,913 7,804 13 248
- Associates 6,195 - 6,195 - -
Listed 10,240 - 10,240 - -
associate
Other 77,451 6,652 70,799 - 50
activities
(including
investments)
Unallocated 63,924 56,623 7,301 - -
(including
cash, tax and
debt)
Consolidated 424,460 147,463 276,997 3,841 2,143
total
Assets Liabiliti Net assets/ Capital Depreciatio
es (liabilities expenditu n charge
) re
US$000 US$000 US$000 US$000 US$000
Import and 26,647 12,602 14,045 479 235
distribution
Property 13,594 177 13,417 123 55
Food
production and
processing
- Group 1,685 458 1,227 2 39
- Associates 974 - 974 - -
Listed 1,610 - 1,610 - -
associate
Other 12,178 1,046 11,132 - 8
activities
(including
investments)
Unallocated 10,051 8,903 1,148 - -
(including
cash, tax and
debt)
Consolidated 66,739 23,186 43,553 604 337
total
Secondary reporting format - geographical segments
The Group operates in the following countries or states.
Luxembourg
The non-trading location of the parent company, including part of the Group
investment portfolio.
South Africa
Location of the bulk of the Group`s import and distribution business and part
of the Group`s property portfolio.
Australia
Location for part of the Group`s import and distribution business.
United States
Part of the Group`s property portfolio is located there.
Jersey
Location of part of the Group`s import and distribution business and part of
the Group`s investment portfolio.
2006 2005
Group Total Capital Group Total Capital
Revenue net Expenditu revenue net expenditu
assets re assets re
SAR000 SAR000 SAR000 SAR000 SAR000 SAR000
Australia 23,248 19,953 2,246 19,621 14,762 846
United States 8,461 101,173 730 6,665 59,154 445
Jersey 156,868 65,035 - 109,964 44,571 -
Other 3,559 45,812 - 6,818 65,877 12
countries
Total outside 195,695 277,785 2,976 143,068 184,364 1,303
Africa
South Africa 420,598 125,012 6169 334,180 92,633 2538
616,293 402,797 9,145 477,248 276,997 3,841
2006
2005
Group Total Capital Group Total Capital
Revenue net Expenditu revenue net expenditu
assets re assets re
US$000 US$000 US$000 US$000 US$000 US$000
Australia 2,992 2,568 239 3,085 2,321 133
United States 1,089 13,021 94 1,048 9,301 70
Jersey 20,189 8,370 - 17,290 7,008 -
Other 458 5,896 - 1,072 10,358 2
countries
Total outside 25,186 35,751 383 22,495 28,988 205
Africa
South Africa 54,131 16,089 794 52,544 14,565 399
79,317 51,840 1,177 75,039 43,553 604
Total assets and capital expenditure are shown by the geographical area in
which the assets are located.
EXCEPTIONAL ITEMS 2006 2005 2006 2005
SAR000 SAR000 US$000 US$000
Income
Surplus on disposal of 10,917 11,480 1,405 1,805
investments
Release of investment provision 1,057 - 136 -
(Barplats)
Property devaluation provision 3,489 - 449 -
now recovered
Total income 15,463 11,480 1,990 1,805
Charges
Provision against associate (1,958) (2,926) (252) (460)
(Halogen)
Costs of Employee Benefit Trust (6,154) - (792) -
Costs relating to share bonus (1,041) - (134) -
issue
Provision against associate (3,630) - (467) -
(Conafex)
Loss on disposal of tangible (62) - (8) -
fixed assets
Exceptional items - net income 2,618 8,554 337 1,345
Notes:
1. These preliminary results for the year ended 30th September
2006 and the balance sheet at that date, which are unaudited,
have been prepared on the basis of accounting policies
adopted for the year ended 30th September 2005.
2. Group capital expenditure in the year was US$1,127,000
(R8,756,790) (2005 - US$604,000 (R3,841,440)). There were no
capital expenditure commitments at 30th September 2006 (2005
- nil).
3. Bank loans and overdrafts of US$3,025,000 (R23,504,250) (2005
- US$3,578,000 (R22,756,080)) are included in current
liabilities. Group long-term finance is secured on various
local properties and bears interest at local commercial
rates.
21 DECEMBER 2006
SPONSOR
IMARA CORPORATE FINANCE SOUTH AFRICA (PTY) LIMITED
Date: 21/12/2006 17:30:01 Produced by the JSE SENS Department.
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