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Afx- Afrox- Abridged Results For The Six Months To 31 March 2007

Release Date: 04/05/2007 13:00:02      Code(s): AFX
AFX- Afrox- Abridged Results for the six months to 31 March 2007                
African Oxygen Limited                                                          
(Incorporated in the Republic of South Africa)                                  
(Registration number 1927/000089/06)                                            
JSE code: AFX, NSX code: AOX                                                    
ISIN: ZAE000067120                                                              
("Afrox" or "the Company")                                                      
African Oxygen limited abridged results for the six months to 31 March 2007     
PERFORMANCE REVIEW                                                              
African Oxygen Limited (Afrox) continued to produce sound results in a buoyant  
manufacturing economy where demand outstripped supply for certain products.     
The comparative results of the period ended 31 March 2006 have been adjusted as 
disclosed in note 7.1. This allows the comparison of March 2007 results to be a 
more accurate measure.                                                          
On this like for like basis, revenue was 17 percent higher at R2,1 billion with 
profit from operations at R392 million (2006: R318 million), an increase of 23  
percent. Net profit for the period was 18 percent up at R240 million (2006: R203
million).                                                                       
Adjusted headline earnings per share were 19 percent higher at 78,8 cents (2006:
66,2 cents) and adjusted basic earnings were 77,8 cents (65,9 cents), an        
increase of 18 percent.                                                         
The balance sheet remains strong, gearing was an acceptable 25,6 percent (2006: 
26,5 percent), in spite of the large capex spend.                               
The buoyant demand situation produced challenges for the business and, to manage
the demand, the company embarked on an extensive R500 million investment        
programme, which it announced in the 2006 Annual Report. The capex programme    
will go a long way to meeting demand well into the future.                      
CHANGE IN THE YEAR END                                                          
These interim financial results are published for information purposes. Afrox   
changes its year-end to December to align itself with its holding company, The  
Linde Group. This financial year will therefore be ending 31 December 2007. A   
comprehensive interim report will be produced for the nine months ending 30 June
2007.                                                                           
DIVIDEND DETAILS                                                                
An interim dividend will be considered at the interim stage, ending 30 June     
2007.                                                                           
BEE RATING                                                                      
Afrox has improved its BEE rating from a BB to BBB.                             
CHANGES TO THE BOARD                                                            
Tjaart Kruger (47) has joined the company as Managing Director, effective 1     
April 2007. He joins Afrox from the Tiger Brands Group where he held several    
senior executive positions.                                                     
Alan Watkins and J?rgen Nowicki were appointed to the board as non-executive    
directors with effect from 4 April 2007. They both hold executive positions with
The Linde Group.                                                                
Alan Ferguson and Jim Ford, non-executive directors, resigned from the board    
with effect from 30 March 2007. Daniel Shook, an alternate director, resigned on
the same date.                                                                  
OUTLOOK                                                                         
Business remains strong and the company is well positioned for real growth in   
earnings.                                                                       
Kent Masters        Tjaart Kruger                                               
Chairman            Managing Director                                           
4 May 2007                                                                      
1. BASIS OF PREPARATION                                                         
These interim financial statements have been prepared in accordance with the    
recognition and measurement requirements of International Reporting Standards,  
(IFRS), the disclosure requirements of IAS 34 -Interim Financial Reporting, the 
listing requirements of the JSE Limited and the South African Companies Act.    
These financial statements do not contain all the information and disclosures   
required in the annual financial statements, and should be read in conjunction  
with the group consolidated annual financial statements as at 30 September 2006.
2.  SIGNIFICANT ACCOUNTING POLICIES                                             
The accounting policies applied are consistent with those followed in the       
preparation of the consolidated annual financial statements for the year ended  
30 September 2006.                                                              
By order of the Board.                                                          
Ria Sanz                                                                        
Company Secretary                                                               
www.afrox.com                                                                   
AFRICAN OXYGEN LIMITED                                                          
(Incorporated in the Republic of South Africa)                                  
Registration number 1927/000089/06                                              
ISIN: ZAE000067120                                                              
JSE code: AFX, NSX code: AOX                                                    
("Afrox")                                                                       
Registered office:                                                              
Afrox House, 23 Webber Street, Selby, Johannesburg, 2001                        
(PO Box 5404, Johannesburg, 2000)                                               
Telephone (+27 11) 490-0400                                                     
Directors: JK Masters* (Chairman), TJN Kruger (Managing Director), AJ Cullens*, 
A Watkins***, J Nowicki****, DM Lawrence, LA MacNair, KDK Mokhele, SM Pityana,  
LL van Niekerk, CJPG van Zyl                                                    
Transfer secretaries:                                                           
Computershare Investor Services 2004 (Pty) Limited                              
70 Marshall Street, Johannesburg, 2001                                          
(PO Box 61051, Marshalltown, 2107)                                              
Telephone (+27 11) 370-5000                                                     
Sponsor in South Africa: Barnard Jacobs Mellet Corporate Finance (Pty) Limited  
Sponsor in Namibia: Namibia Equity Brokers (Pty) Limited                        
3.  SUMMARISED BALANCE SHEET                                                    
Unaudited      Unaudited          Audited   
                                     31 March       31 March     30 September   
  Rm                                     2007           2006             2006   
  ASSETS                                                                        
Non-current assets                    2,556          2,360            2,297   
                                        1,547          1,137            1,618   
  Current assets                                                                
                                        4,103          3,497            3,915   
Total Assets                                                                  
                                                                                
  EQUITY AND LIABILITES                                                         
  Capital and reserves                  2,189          1,820            2,271   
578            632              464   
  Non current liabilities                                                       
                                        1,336          1,045            1,180   
  Current liabilities                                                           
4,103          3,497            3,915   
  Total Equity and Liabilities                                                  
4. SUMMARISED INCOME STATEMENT                                                  
                                    Unaudited      Unaudited          Audited   
6 months to    6 months to     12 months to   
  Rm                               March 2007     March 2006   September 2006   
                                                                                
  Revenue                               2,110          1,845            3,914   
Operating profit                        392            379              754   
  Profit on sale of investment              -              -              362   
  Profit from operations                  392            379            1,116   
  Net finance (costs)                    (21)           (17)             (35)   
Income from associates                  (1)             53              100   
  Profit before taxation                  370            415            1,181   
  Income tax expense                    (127)          (124)            (316)   
  Profit for the period                   243            291              865   
Attributable to                                                               
  Equity holders of the                   240            289              858   
  company                                                                       
  Minority interest                         3              2                7   
Net profit for the period               243            291              865   
5. EARNINGS PER SHARE                                                           
                                    Unaudited      Unaudited          Audited   
                                  6 months to    6 months to     12 months to   
Rm                               March 2007     March 2006   September 2006   
  Total net profit for the                                                      
  period attributable to                                                        
  equity holders of                                                             
The company                             240            289              858   
  Reversal for headline                     3              1            (267)   
  earnings                                                                      
  Headline earnings                       243            290              591   
Basic earnings per ordinary            77.7           93.5            278.1   
  share - Group (cents)                                                         
  Adjusted BEPS-Industrial               77.7           65.9            148.6   
  operations (cents)                                                            
Headline earnings per                  78.8           93.7            191.4   
  ordinary share-Group (cents)                                                  
  Adjusted HEPS-Industrial               78.8           66.2            141.6   
  operations (cents)                                                            
6. STATISTICS AND RATIOS                                                        
                                    Unaudited      Unaudited          Audited   
                                  6 months to    6 months to     12 months to   
  Statistics                       March 2007     March 2006   September 2006   
Average no of ordinary              308,566        308,568          308,568   
  shares in issue during the                                                    
  period and on which earnings                                                  
  per share are based (`000)                                                    
Ratios                                                                        
  Interest cover (times)                 18.4           22.7             31.9   
  Effective tax rate (%)                 34.4           29.8             26.8   
  Gearing (%)                            25.6           26.5              3.3   
7. SEGMENTAL INFORMATION                                                        
                                        6 months ended 31 March 2007            
                                     Adjusted     Industrial            Total   
                                   Industrial                                   
Operations     Operations                    
  Rm                                 % Change                                   
  Revenue                                  17          2,110            2,110   
  Operating profit                         23            392              392   
Net profit for the period                18            240              240   
  BEPS                                     18           77.7             77.7   
  HEPS                                     19           78.8             78.8   
                                              Adjusted Results                  
6 months ended 31 March 2006            
                                     Adjusted    Adjustment*            Total   
                                   Industrial                     (Results as   
  Rm                               Operations                      Previously   
reported)   
                                                                                
  Revenue                               1,803             64            1,867   
  Operating profit                        318             61              379   
Net profit for the period               203             86              289   
  BEPS                                   65.9           27.6             93.5   
  HEPS                                   66.2           27.5             93.7   
                                      12 months ended 30 September 2006         
Industrial        Other**            Total   
                                   Operations                                   
  Rm                                                                            
  Revenue                               3,914              -            3,914   
Operating profit                        684             70              754   
  Net profit for the period               437            421              858   
  BEPS                                  148.6          129.5            278.1   
  HEPS                                  141.6           49.8            191.4   
*    The adjustment relates to restatement of results; see note 7.1 below.  
    **  Relates to Life Healthcare earnings, profit on sale of the Life         
    Healthcare investment, pension fund surplus and other non-recurring items.  
7.1  Adjustment of Comparative Segmental Information for the six Months Period  
ended 31 March 2006.                                                        
    i)   Exclusion of the results of Life Healthcare                            
         The results as at 31 March 2006 have been adjusted by the exclusion of 
         the results of the share of associate, Life Healthcare`s profit. This  
associate was disposed of in 2006. The adjustment is the reduction in  
         net profit by R56 million.                                             
    ii)  Restatement of cylinder rental income                                  
         The treatment of annual cylinder rental contracts has been changed to  
recognise rental income as revenue over the period of the rental, even 
         though billed and received annually. Therefore revenue and operating   
         profit for the period ended 31 March 2006, has been adjusted by R42    
         million representing rental income not yet earned at that date. The    
effect on net profit is an adjustment of R30 million.                  
    iii) Discounting of credit sales                                            
         The treatment of credit sales has been adjusted by discounting these   
         sales using the average debtors` collection period and prime lending   
rate. This is in line with the accounting policy adopted from          
         September 2006. The revenue has been decreased by R22 million.         
         Operating profit is not affected.                                      
8. SUMMARISED CASHFLOW STATEMENT                                                
Unaudited      Unaudited          Audited   
                                  6 months to    6 months to     12 months to   
                                   March 2007     March 2006   September 2006   
  Rm                                                                            
Net cash (outflow)/inflow             (250)          (139)               46   
  from operating activities                                                     
  Net cash (outflow)/inflow             (510)          (202)              233   
  from investing activities                                                     
Net cash inflow/(outflow)               435            233              (8)   
  from financing activities                                                     
  Net (decrease)/increase in            (325)          (108)              271   
  cash and cash equivalents                                                     
Cash and cash equivalents at            433            162              162   
  start of period                                                               
  Cash and cash equivalent at             108             54              433   
  end of period                                                                 
9. SUMMARISED STATEMENT OF CHANGES IN EQUITY                                    
                     Issued   Share     Other Accumulated   Minority    Total   
                      Share Premium  Reserves     Profits  Interests            
   Rm               Capital                                                     
Balance at 1           15     537        78       1,618         23    2,271   
  October 2006                                                                  
  Other                   -       -      (50)           -          -     (50)   
  movements                                                                     
Net profit for          -       -         -         240          3      243   
  the period                                                                    
  Dividend                -       -         -       (275)          -    (275)   
  declared                                                                      
Balance at 31          15     537        28       1,583         26    2,189   
  March 2007                                                                    
  Balance at 1                  537       122         958         12    1,644   
  October 2005           15                                                     
Other                   -       -         5         (4)          7        8   
  movements                                                                     
  Net profit for          -       -         -         289          2      291   
  the period                                                                    
Dividend                -       -         -       (123)          -    (123)   
  declared                                                                      
  Balance at 31          15     537       127       1,120         21    1,820   
  March 2006                                                                    
Date: 04/05/2007 13:00:02 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             .                  



                                        
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