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

Release Date: 04/05/2007 14:53:02      Code(s): AFX
AFX - Afrox - Amended 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")                                                      
AMENDED RESULTS RELEASE ("amended release")                                     
This amended release supersedes the announcement released on SENS at 13h00      
today.  There are no material differences between the amended release and the   
earlier release, save for some amendments to the commentary to the results.     
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 for certain of our products outstripped      
supply.                                                                         
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 appropriate measure to reflect the results of the continuing business.     
On this basis, revenue was 17 percent higher at R2,1 billion (2006: R1,8        
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, with gearing at 25,6 percent (2006: 26,5      
percent), despite the large capex spend.                                        
The buoyant demand situation in the reporting period produced challenges for the
business from a supply perspective. As previously announced, the company        
embarked on an extensive investment programme initiated during the 2006         
financial year. As a result, the capital expenditure for the six months, of R400
million, is significantly higher than the R200 million for 2006. This will go a 
long way to meeting future demand. The initial benefit of this capex programme  
can be expected in the second half of 2007.                                     
CHANGE IN THE YEAR END                                                          
These interim financial results are published for information purposes. Afrox   
has changed its year-end to December to align itself with its holding company,  
The Linde Group. This financial year will therefore end on 31 December 2007. A  
comprehensive interim report will be produced for the nine months ending 30 June
2007, at which time an interim dividend will be considered.                     
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. He succeeds Rick Hogben, the previous Managing      
Director, who retired from the board at the end of March 2007. Alan Ferguson and
Jim Ford, non-executive directors and Daniel Shook, an alternate director,      
resigned from the board with effect 30 March 2007, following their resignations 
from The Linde Group.                                                           
Alan Watkins and Jurgen 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.                                                                
OUTLOOK                                                                         
Business activity remains strong on the back of a growing South African economy 
and the company is well positioned for real growth in earnings.                 
Kent Masters        Tjaart Kruger                                               
Chairman            Managing Director                                           
Johannesburg                                                                    
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                                                                   
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                                                       
Company Secretary: ME Sanz                                                      
*British **American ***German                                                   
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,                      
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 Jacob Mellet Corporate Finance (Pty) Limited.  
Sponsor in Namibia: Namibia Equity Brokers (Pty) Limited.                       
AFRICAN OXYGEN LIMITED                                                          
INTERIM RESULTS SENS ANNOUNCEMENT                                               
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                     
Current assets                 1,547      1,137       1,618                     
Total Assets                   4,103      3,497       3,915                     
                                                                                
EQUITY AND LIABILITES                                                           
Capital and reserves           2,189      1,820       2,271                     
Non current liabilities        578        632         464                       
Current liabilities            1,336      1,045       1,180                     
Total Equity and Liabilities   4,103      3,497       3,915                     
4. SUMMARISED INCOME STATEMENT                                                  
                             Unaudited   Unaudited   Audited                    
                             6 months    6 months    12 months to               
to          to                                     
Rm                            March 2007  March 2006  September                 
                                                     2006                       
Group                                                                           
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 company 240         289         858                       
Minority interest             3           2           7                         
Net profit for the period     243         291         865                       
*Refer to note 7.1 (iii)                                                        
5. EARNINGS PER SHARE                                                           
                                                                                
Unaudited   Unaudited   Audited                    
                             6 months    6 months    12 months to               
                             to          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                                                           
earnings                      3           1            (267)                    
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    6 months    12 months to               
to          to                                     
Statistics                    March 2007  March 2006  September                 
                                                     2006                       
Average no of ordinary shares                                                   
in issue during the period                                                      
and on which earnings per                                                       
share are based (`000)                                                          
                             308,566     308,568     308,568                    
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 (Unaudited)                                            
                                 6 months ended 31 March 2007                   
                             Adjusted    Industrial  Total                      
                             Industrial  Operations                             
Rm                            Operations                                        
                             % Change                                           
Revenue                       17          2,110       2,110                     
Operating profit              23          392         392                       
Net profit for the period     18          240         240                       
BEPS (cents)                  18          77.7        77.7                      
HEPS (cents)                  19          78.8        78.8                      
Adjusted Results                                                                
6 months ended 31 March 2006                   
                            Adjusted    Adjustment*  Total                      
                            Operations               (Results as                
                                                     Previously                 
Rm                                                    reported)                 
Revenue                      1,803       64           1,867                     
Operating profit             318         61           379                       
Net profit for the period    203         86           289                       
BEPS (cents)                 65.9        27.6         93.5                      
HEPS (cents)                 66.2        27.5         93.7                      
                               12 months ended 30 September 2006                
                             Industrial                                         
Rm                            Operations  Other**     Total                     
Revenue                       3,914        -          3,914                     
Operating profit              684         70          754                       
Net profit for the period     437         421         858                       
BEPS (cents)                  148.6       129.5       278.1                     
HEPS (cents)                  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 a reduction 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                 
Rm                                                     2006                     
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   433           162          162                      
at start of period                                                              
Cash and cash equivalent    108            54          433                      
at end of period                                                                
9. SUMMARISED STATEMENT OF CHANGES IN EQUITY                                    
             Issued  Share    Other    Accumu-  Minority   Total                
Share                     lated                                    
Rm            Capital Premium  Reserves Profits  Interests                      
Balance at 1  15      537      78       1,618     23         2,271              
October 2006                                                                    
Other          -       -       (50)      -        -          (50)               
movements                                                                       
Net profit     -       -        -        240      3          243                
for the                                                                         
period                                                                          
Dividend       -       -        -        (275)    -          (275)              
declared                                                                        
Balance at    15       537      28      1,583     26         2,189              
31 March                                                                        
2007                                                                            
Balance at 1                                                 1,644              
October 2005  15      537       122      958      12                            
Other          -       -       5        (4)      7          8                   
movements                                                                       
Net profit     -       -        -        289     2          291                 
for the                                                                         
period                                                                          
Dividend      -        -        -        (123)    -         (123)               
declared                                                                        
Balance at    15       537     127       1,120   21         1,820               
31 March                                                                        
2006                                                                            
Date: 04/05/2007 14:53:01 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             .                  



                                        
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