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TAL
TAL
TAL - TiAuto - Unaudited Interim Group Results For The Six Months
Ended 31 December 2006
TIGER AUTOMOTIVE LIMITED
(Incorporated in the Republic of South Africa)
Reg No. 2005/042651/06
Share Code: TAL
ISIN ZAE000087482
("TiAuto" or "the group" or "the company")
UNAUDITED INTERIM GROUP RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2006
- Headline earnings per share up 15,1%
- Revenue up 9,7%
ABRIDGED INCOME STATEMENT
Unaudited
period Pro forma Pro forma
ended at at
31 Dec 31 Dec 30 Jun
% 2006 2005 2006
change R`000 R`000 R`000
Revenue 9,7 536 506 489 040 954 196
Operating income 43 982 46 124 92 783
Interest received 3 020 4 764 4 896
Interest paid (824) (5 363) (10 026)
Profit before taxation 46 178 45 525 87 653
Taxation (11 838) (13 454) (23 716)
Profit for the period 34 340 32 071 63 937
Attributable to:
Equity holders of the 35 277 31 608 62 228
parent
Minority shareholder (937) 463 1 709
Profit for the period 34 340 32 071 63 937
Reconciliation of
headline
earnings per share
(cents)
Attributable earnings
per share 59,2 53,0 104,4
Adjusted for:
Unbundling costs 1.8 - -
Headline earnings per
share (cents) 15,1 61,0 53,0 104,4
Number of shares in
issue (`000)
- At end of period 59 602 59 602 59 602
- Weighted average 59 602 59 602 59 602
ABRIDGED BALANCE SHEET AT
Unaudited Proforma Proforma
31 December 31 December 30 June
2006 2005 2006
R`000 R`000 R`000
ASSETS
Property, plant and equipment 46 762 44 817 45 166
Financial assets 6 476 7 495 4 509
Deferred taxation 9 390 5 618 9 530
Non current assets 62 628 57 930 59 205
Inventories 154 020 134 675 133 394
Trade and other receivables 162 083 139 826 144 192
Financial assets held for 74 107 60 970 68 768
trade
Taxation 7 106 - 74
Bank and cash balances 26 694 34 885 22 673
Current assets 424 010 370 356 369 101
Total assets 486 638 428 286 428 306
EQUITY AND LIABILTIES
Capital and reserves 190 745 115 340 153 916
Minority interest 17 545 13 491 17 647
Total equity 208 290 128 831 171 563
Financial liabilities 41 4 121 1 673
Operating lease liabilities 11 366 158 231 17 947
Deferred income 183 - 301
Deferred taxation 508 1 281 1 478
Non-current liabilities 12 098 21 225 21 399
Trade and other payables 198 880 204 142 201 991
Provisions 18 103 9 133 19 322
Interest-bearing liabilities 38 219 625 -
Short-term borrowings 502 57 725 6 476
Taxation 10 546 6 605 7 555
Current liabilities 266 250 278 230 235 344
Total liabilities 278 348 299 455 256 743
Total equity and liabilities 486 638 428 286 428 306
Net tangible asset value
per share (cents) 320 194 258
FOREIGN EXCHANGE RATES
Closing Average
rate rate
31 Dec 31 Dec
2006 2006
Rand/Yen 16,99 16,19
Rand/Dollar 6,99 7,24
Rand/Pound 13,72 13,83
ABRIDGED CASH FLOW STATEMENT*
Unaudited
period ended
31 December
2006
R`000
Operating cash flow before working capital and tax 46 860
Working capital investment (42 151)
Taxation paid (15 629)
Cash flow from operating activities (10 920)
Cash flow from investing activities (157 320)
Cash flow from financing activities 184 255
Movement in cash resources 16 015
Cash resources at beginning of year 84 966
Foreign entities translation adjustment (682)
Cash resources at end of period 100 299
Comprising:
Bank and cash balances 26 694
Financial assets held for trade 74 107
Short-term borrowings (502)
Net cash resources at end of period 100 299
ABRIDGED STATEMENT OF CHANGES IN EQUITY*
Unaudited
period ended
31 December
2006
R`000
Share capital 596
Share premium 152 448
At acquisition 153 320
Repurchase of shares for employee share options (872)
Share based compensation reserve 1 067
Non-distributable reserves 1 357
Movement in foreign currency translation reserve 1 470
Hedging reserve (113)
Accumulated profit
Earnings attributable to ordinary
shareholders 35 277
Minority interest 17 545
At acquisition 17 293
Movement for the year (net of translation) 252
Equity at end of period 208 290
*Due to the internal reconstruction prior to the unbundling of TiAuto from
Tiwheel, pro forma cash flow and changes in equity is not considered
relevant comparative information presented in the income statement and
balance sheet are presented as pro forma information, and has not been
reviewed by the group`s auditors.
ABRIDGED SEGMENTAL ANALYSIS
Unaudited
31 December 2006
Europe South Africa Total
Rm Rm Rm
Revenue
Total revenue 117 420 537
Operating Income
Total operating income 1 43 44
Interest received - 3 3
Interest paid - (1) (1)
Net financing costs - 2 2
Capital expenditure - 5 5
Depreciation - 3 3
Interest bearing liabilities - 50 50
ABRIDGED SEGMENTAL ANALYSIS
Pro forma
31 December 2005
Europe South Africa Total
Rm Rm Rm
Revenue
Total revenue 117 372 489
Operating Income
Total operating income 4 42 46
Interest received - 5 5
Interest paid - (5) (5)
Net financing costs - - -
Capital expenditure 4 4
Depreciation - 3 3
Interest bearing liabilities - 16 16
ABRIDGED SEGMENTAL ANALYSIS
Pro forma
30 June 2006
Europe South Africa Total
Rm Rm Rm
Revenue
Total revenue 238 716 954
Operating Income
Total operating income 7 86 93
Interest received - 5 5
Interest paid - (10) (10)
Net financing costs - (5) (5)
Capital expenditure - 9 9
Depreciation 1 6 7
Interest bearing liabilities - 24 24
NOTES
BASIS OF PREPARATION
In terms of the Listing Requirements of the JSE, the group results have been
prepared in accordance with the International Financial Reporting Standard
("IFRS") IAS34: Interim Financial Reporting, the Listing Requirements of the
JSE Limited and the South African Companies Act. The preparation of
consolidated financial statements in conformity with IFRS requires the use
of certain critical accounting estimates. It also requires management to
exercise its judgement in the process of applying the group`s accounting
policies.
APPOINTMENT OF DIRECTORS
The company has appointed the directors indicated below on
26 September 2006. The board has undertaken to appoint additional
independent non-executive directors in order to comply with the regulations
of the second King Report, and to ensure good corporate governance.
SHARE CAPITAL
The company was incorporated on 5 December 2005 with an authorised share
capital of 100 000 ordinary shares with a par value of 1 cent each, and an
issued share capital of 1 ordinary share with a par value of 1 cent. On 16
October 2006 the authorised share capital was increased to 200 000 000
ordinary shares with a par value of 1 cent each. On the same date 59 601 504
ordinary shares of 1 cent each were issued and allotted to Tiger Wheels
Limited ("Tiwheel") at a premium of R257,24 cents per share. Tiwheel
unbundled the shares in TiAuto to its shareholders in a ratio of one TiAuto
share for each Tiwheel share held. TiAuto listed on the JSE on 11 December
2006.
ACQUISITIONS
The company`s shares were issued and allotted to Tiwheel pursuant to the
purchase by the company of various subsidiaries previously part of the
Tiwheel group, at a net asset value of R153 076 979. The details of the
subsidiaries acquired was presented in the pre-listing statement mailed to
Tiwheel shareholders on 6 November 2006. The trading results of these
subsidiaries have been consolidated into the TiAuto group results with
effect from 1 July 2006.
APPOINTMENT OF A NEW COMPANY SECRETARY
In terms of paragraph 3.59 of the Listings Requirements of the JSE Limited,
TiAuto hereby announces, due to the restructuring of the company, the
resignation of Mr M Nel as the company secretary and the appointment of Ms
Erika Grundlingh as the new company secretary with immediate effect. The
board would like to thank Mr Nel for his highly valued contribution to the
company.
DIVIDEND POLICY
It is the policy of the company not to declare an interim dividend.
It is anticipated that a final dividend for the full year of trading will be
declared with the publication of the full year`s results.
COMMENTS
INTRODUCTION
Tiger Automotive Limited ("TiAuto") is the listed company housing the
trading assets which were recently unbundled from Tiger Wheels Limited
("Tiwheel"), a company listed on the JSE since 1987.
Two distinct businesses emerged from this unbundling; a re-focused Tiwheel,
concentrating on global OEM wheel manufacturing, and the newly listed
TiAuto, which is focused on the wholesale and retail trading of passenger
car tyres and aftermarket alloy wheels in the South African and UK markets.
TiAuto`s retail business, Tiger Wheel & Tyre ("TWT") holds a significant
share of the consumer replacement tyre and wheel market, and has 49 stores
covering all the major centres in the region. Of these, 35 are owned and 14
franchised, between them their footprint spans not only all of South Africa
but also reaches into Botswana and Namibia.
The South African-based wholesale operation of TiAuto, Yokohama Southern
Africa ("YSA"), is in turn focused on the supply of aftermarket tyres and
wheels to a large customer base of independent wheel and tyre distributors
in the southern African region. YSA`s tyre offering covers the complete
spectrum of passenger and 4x4 tyres, with Yokohama high performance tyres
catering to the top-end buyer, Nankang to the budget-conscious buyer and
Runway to the buyer looking for highly affordable tyres. The company also
distributes the complete range of TSW alloy wheels throughout southern
Africa.
Yokohama HPT ("YHPT"), TiAuto`s 51% owned UK wholesaler of aftermarket
wheels and tyres is the sole distributor of Yokohama passenger car, 4x4 and
racing tyres as well as TSW alloy wheels in the UK.
TSW International ("TSWI") handles the design, outsource manufacturing and
worldwide distribution of TSW alloy wheels. (excluding North and South
America).
Results
TiAuto`s first-ever results as a standalone, listed company reflect a
pleasing 15,1% increase in headline earnings per share, half-year on half-
year. These results could have been better but for the negative impact of
poor deliveries from Japanese tyre manufacturer Yokohama Rubber Company to
TiAuto`s South African and UK wholesale businesses.
Two new TWT retail stores were opened during the first half-year - one owned
and one franchised - and the slightly more aggressive growth agenda alluded
to in prior reports will result in the opening of five new stores in the
second half.
Global sales of TSW aftermarket wheels, now mainly manufactured in Asia,
were relatively flat during the period under review.
Higher working capital utilisation commensurate with the higher trading
activity in December, compared with June, has absorbed some of the group`s
cash resources.
Prospects
The second half of the financial year normally produces less earnings than
the first half- and it is expected to be no different this year. Full year-
on-year headline earnings per share are, however, forecast to be slightly
ahead of last year. Factors which will impact on the second-half performance
include the expenses related to new store openings, a 16,5% anti-dumping
duty imposed by South African Revenue Service on certain Chinese imported
tyres, and a general tightening of margins in a very competitive market.
As mentioned in prior reports, however, the longer term prospects for growth
in all of TiAuto`s South African businesses look promising in the light of
the steep growth in the South African car parque.
TiAuto`s businesses have historically proven to be relatively resilient to
macro-economic changes such as interest rates, and exchange rate
fluctuations.
Johannesburg
7 March 2007
On behalf of the board
Eddie Keizan
Non-executive chairman
Keith Rivers
Managing director
DIRECTORS:
Eddie Keizan* (Non-executive chairman),
Phillip Vallet* (Deputy chairman), Keith Rivers (Managing), Josh Loots
(Financial), Martin Glatt*,
Mike Groves**, Brian Joffe*, Ray Meyers, Alex Taplin, Sybrand Pretorius
(Alternate to Brian Joffe)
*Non-executive **Independent non-executive
REGISTERED OFFICE:
Cnr Old Pretoria Road and K101, Midrand 1685
Telephone (011) 256 4500, Fax (011) 256 4515
COMPANY SECRETARY:
Erika Grundlingh (erika@tiw.co.za)
SPONSOR:
Sasfin Capital, a division of Sasfin Bank Limited
Registration number 1951/002280/06
TRANSFER SECRETARIES:
Computershare Investor Services 2004 (Pty) Limited
Registration number 2004/003647/07, 70 Marshall Street, Johannesburg 2001
PO Box 61051, Marshalltown 2107
Telephone (011) 370 5000
www.tiauto.co.za
Date: 07/03/2007 15:59:56 Produced by the JSE SENS Department.
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