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Condensed Unaudited Consolidated Results for the six months ended 31 December 2013
Bowler Metcalf Limited
REG NO : 1972/005921/06 ALPHA CODE : BCF ISIN CODE : ZAE000030797
CONDENSED UNAUDITED CONSOLIDATED RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2013
R mil R mil % R mil
31-12-13 31-12-12 Change 30-06-13
STATEMENT OF FINANCIAL POSITION STATEMENT OF CHANGES IN EQUITY (R mil)
Share Non-
Non-current Assets 208.6 214.6 212.7 Share Retained Treasury Based controlling Total
Property , plant & equipment 176.9 183.7 181.0 Capital Earnings Shares Payments Interests Equity
Deferred tax 6.3 5.5 6.3
Intangible assets 15.9 15.9 15.9
Loan 9.5 9.5 9.5 30 Jun 12 21.5 434.8 (37.0) 1.2 13.7 434.2
Investments - - - Comprehen-
Current Assets 336.5 358.7 301.2 sive Income - 34.9 - - 2.1 37.0
Inventories 86.5 81.8 78.9 Dividends (16.3) (16.3)
Trade and other receivables 135.9 145.0 90.3 Other 1.7 0.1 1.8
Prepayments 11.4 13.0 7.1 ------------ --------------- --------------- ---------------- --------------- ---------------
Cash and cash equivalents 49.6 65.4 74.3
Other financial assets 51.3 48.4 50.0 31 Dec 12 21.5 453.4 (35.3) 1.3 15.8 456.7
Taxation 1.8 5.1 0.6 Comprehen-
---------------- ---------------- ---------------- sive Income - 20.0 - - 0.5 20.5
Total Assets 545.1 573.3 -5 513.9 Acquisition
========= ========= ========= - minorities (22.6) (16.3) (38.9)
Dividends (14.3) (14.3)
Total Equity 444.3 456.8 -3 424.4 Other 0.4 0.3 (0.3) 0.4
Non-current liabilities 25.7 27.2 30.4 ------------ --------------- --------------- ---------------- --------------- ---------------
Deferred Tax 11.8 14.6 12.7 30 Jun 13 21.5 436.9 (35.0) 1.0 - 424.4
Borrowings 13.9 12.6 17.7 Comprehen-
Current Liabilities 75.1 89.3 59.1 sive Income - 29.9 - - - 29.9
Trade and other payables 66.7 84.4 50.0 Dividends (13.0) (13.0)
Bank overdrafts - 1.9 - Other 3.0 - 3.0
Borrowings 7.0 2.7 6.8 -------------- ----------------- ------------------ ------------------ ----------------- ------------------
Taxation 1.4 0.3 2.3 31 Dec 13 21.5 453.8 (32.0) 1.0 - 444.3
---------------- ---------------- ---------------- ======== ========= ========== ========== ========= ==========
Total Equity & Liabilities 545.1 573.3 513.9
========= ========= ========= %
STATEMENT OF CASH FLOWS 31-12-13 31-12-12 Change 30-06-13
STATEMENT OF COMPREHENSIVE INCOME
Revenue 366.9 331.1 + 11 650.4 Operating Activities (9.3) 0.9 60.1
Other income 2.8 1.8 3.2 Profit before tax 41.0 50.9 78.4
Operating costs (235.7) (197.8) (404.7) Non-cash items 17.9 19.3 36.6
Depreciation (17.8) (19.3) (38.6) Working capital changes (41.0) (36.1) (4.1)
Impairments - - - Taxation paid (14.2) (16.9) (20.2)
Rent & property finance (3.5) (2.6) (5.1) Dividends paid (13.0) (16.3) (30.6)
Staffing costs (74.3) (67.5) (135.3)
---------------- ---------------- ---------------- Investing Activities (15.8) 19.3 3.9
Profit from operations 38.4 45.8 69.9 Property plant and equipment (14.5) (7.4) (27.1)
Net finance income 2.6 5.1 8.5 Loans - - -
- income 3.7 6.3 10.6 Transfer from/(to) income funds (1.3) 26.7 31.0
- costs (1.1) (1.2) (2.1) Disposal of investment - - -
---------------- ---------------- ----------------
Net profit before tax 41.0 50.9 - 19 78.4 Financing Activities 0.4 0.3 (32.7)
Income tax expense (11.1) (13.8) (20.9) Borrowings (2.6) (1.4) (3.5)
---------------- ---------------- ---------------- Acquisition - minority interest - - (31.2)
Total profit and comprehensive income 29.9 37.1 57.5 Treasury shares - acquisitions - - -
Attributable to non-controlling interests - (2.1) (2.6) Treasury shares - disposals 3.0 1.7 2.0
---------------- ---------------- ---------------- --------------- ---------------- ---------------
Attributable to parent 29.9 35.0 - 14 54.9 Net Cash Flow (24.7) 20.5 31.3
========= ========= ========= Opening balance 74.3 43.0 43.0
Earnings & diluted earnings per share (c) 36.22 43.00 - 16 67.35 --------------- ---------------- ---------------
========= ========= ========= Closing balance 49.6 63.5 - 33 74.3
========= ========= =========
HEADLINE EARNINGS Comprising:
Earnings attributable to parent 29.9 35.0 54.9 Cash & cash equivalents 49.6 65.4 - 33 74.3
Impairments - - - Bank Overdrafts - (1.9) -
Profit on disposal of plant & equipment - - 0.1 ========= ========= =========
profit - - 0.2
tax and outside interests - - (0.1)
---------------- ---------------- ---------------- ADDITIONAL INFORMATION
Headline earnings 29.9 35.0 - 14 55.0 Dividend/share paid (c) 15.80 20.00 - 21 37.50
========= ========= ========= Ordinary dividend proposed (c) 18.40 17.50 +5 33.30
Dividend cover (times) 1.97 2.46 2.03
Earnings per share(c) 36.22 43.00 67.35 Weighted shares in issue (mil) 82.37 81.32 81.458
Disposal of plant and equipment (c) - - 0.15 Capital commitments (Rmil) 11.50 13.70 5.15
---------------- ---------------- ---------------- Current ratio 4.48 4.02 5.10
Basic & diluted headline earnings (c) 36.22 43.00 - 16 67.50 Return on equity (%) 13.46 15.85 12.94
========= ========= ========= Closing share price (cents) 740 760 780
SEGMENTAL ANALYSIS Un-
Plastic Filling Property allocated Total Plastic Operations
Revenue
The marginal decrease in the interim results of the plastic division was in line with both
Jul-Dec 12 140.9 190.0 0.2 - 331.1
expectations and the overall lack of rewarding buoyancy of the plastic packaging sector of the
- total revenue 188.5 190.0 9.3 - 387.8 South African market. Immediate and substantial rises in the raw material pricings resulting from
- intersegment (47.6) - (9.1) - (56.7) currency devaluation were not recoverable from customers during the period and have had a
Jan-Jun 13 134.3 184.9 0.1 - 319.3 significant negative impact on the trading results. The effect of the weakening South African
currency, while lamentable, is a boon to those companies involved in both plastic packaging and
- total revenue 181.1 184.9 9.1 - 375.1 downstream filling. Notwithstanding the normal time lag between currency devaluation and import
- intersegment (46.8) - (9.0) - (55.8) replacement, we are encouraged by substantial business that has been awarded to our plastics
Jul-Dec 13 152.9 213.8 0.1 - 366.8 division over the past few months. These new projects are already in various stages of
industrialisation, which will necessitate some R45 million capital expenditure to satisfy the
- total revenue 208.9 213.8 9.9 - 432.6
requirements for machinery, mould commitments, development costs and downstream equipment,
- intersegment (56.0) - (9.8) - (65.8) most of which mature by the end of 2014.
========= ========= ========= ======= =========
Operating Profit
Jul-Dec 12 27.4 11.8 6.6 - 45.8 Filling Operations
Jan-Jun 13 17.6 (0.3) 6.8 - 24.1 Despite exceedingly strong competition in the Western Cape we were able to record a revenue
Jul-Dec 13 26.4 4.5 7.5 - 38.4 growth in excess of 10%. Brand loyalty for Jive was significantly enhanced and brand
ambassadors such as Vernon Philander have served us well. Growth in traditional markets has
========= ========= ========= ======= =========
been good and we are seeing meaningful penetration coming from new markets. Competition
Attributable Profit demanded that margins were reduced and advertising spend increased, which dented an otherwise
Jul-Dec 12 25.0 5.6 4.4 - 35.0 good performance in the Western Cape.
Jan-Jun 13 17.2 (2.1) 4.9 (0.1) 19.9
Jul-Dec 13 23.1 1.7 5.3 (0.2) 29.9 The Gauteng operation remains work in progress, and while we recorded a meaningful 10% growth
========= ========= ========= ======= ========= on the revenue line, operating margins came under increased pressure as we tried to penetrate the
market in areas other than the confined label market. We have not achieved the anticipated
Total Assets
market penetration with the Dixi brand and Gauteng produced a significant loss which offset the
31 Dec 12 380.1 168.1 94.8 (69.7) 573.3 good results of the Western Cape. Our strategies towards profitability in this area are under fine
- total assets 343.8 167.9 44.7 16.9 573.3 analysis at the present time.
- intersegment 36.3 0.2 50.1 (86.6) -
30 Jun 13 368.5 135.7 97.0 (87.3) 513.9
- total assets 319.9 135.2 42.9 15.9 513.9 CAUTIONARY
- intersegment 48.6 0.5 54.1 (103.2) - Shareholders are reminded of the cautionary announcement issued by the company on 4
Jul-Dec 13 372.2 188.4 100.2 (115.7) 545.1 March 2014.
- total assets 299.4 188.4 41.4 15.9 545.1
- intersegment 72.8 - 58.8 (131.6) -
========= ========= ========= ======= ========= CASH DIVIDEND DECLARATION
Capital Expenditure
Jul-Dec 12 1.5 3.5 2.4 7.4 An interim gross cash dividend of 18.4 cents per share ("cps") (2012: 17.5 cps) has been
Jan-Jun 13 15.3 2.1 - 17.4 declared for the six months ended 31 December 2013 and is payable to shareholders on
Monday, 14 April 2014. The last day to trade will be Friday, 4 April 2014. "Ex" dividend
Jul-Dec 13 9.0 5.4 0.1 14.5
trading begins on Monday, 7 April 2014 and the record date will be Friday, 11 April 2014.
========= ========= ========= ======= ========= Share certificates may not be dematerialised or re-materialised between Monday, 7 April
2014 and Friday, 11 April 2014, both days inclusive. Directors confirm that the solvency and
BASIS OF PREPARATION liquidity test is satisfied at the date of this report.
The condensed unaudited consolidated results have been prepared in accordance with the
This dividend will be made from income reserves. The gross dividend is 18.4 cps. Dividend
Framework concepts and the measurement and recognition requirements of the International
Withholding Tax (DWT) is 15%. There are no Secondary Tax on Companies (STC) credits
Financial Reporting Standards, containing information required by the IAS 34 Interim Financial
available for set off against the DWT. The net local cash dividend to shareholders liable for
Reporting, the AC500 standards as issued by the Accounting Practices Board and in the manner
DWT will therefore be 15.640 cps.
required by the Companies Act and the JSE Limited's Listings Requirements.
This interim report has been prepared using the same accounting policies and methods of The number of shares in issue at the date of declaration is 88 428 066 shares.
computation as used in the most recently issued annual financial statements, which should be read
in conjunction with this interim report. Unless otherwise requested in writing, individual dividend cheques of less than R50 will
not be paid but retained in the company's unclaimed dividend account. Accumulated
COMMENT AND PROSPECTS unpaid dividends in excess of R200 may be claimed in writing from the Transfer
Secretaries.
The Group revenue at the half-year mark produced a gratifying increase of 11% on the previous
comparative period. Earnings were however adversely affected by unavoidable financial pressures
which have been brought to bear in the manufacturing industries in South Africa during the period
B.J. FROST (Non-Exec Chairman)
and an unavoidable decrease in earnings of 14% was recorded. Notwithstanding this decrease, the
fundamentals of the Group remain robust and the Directors believe that the pressures that have P.F. SASS (Chief Executive Officer)
been brought to bear on most companies serving the FMCG market are showing gratifying signs of Cape Town, 18 March 2014
ameliorating. The Group is actively extracting earnings enhancements from the improvements in
market conditions. Prepared by: L.V. Rowles CA(SA)
REGISTERED AUDITOR SPONSORS TRANSFER SECRETARIES COMPANY TAX NUMBER
Mazars - Partner Jaco Cronje - Registered Auditor Arcay Moela Sponsors (Pty) Ltd Computershare Investor Services (Pty) Ltd 9775130710
Mazars House, Rialto Road, Ground Flr, One Health Building P.O. Box 61051, Marshalltown, 2107
Grand Moorings Precinct, Century City, 7441 54 Maxwell drive, Woodmead, 2157
Date: 18/03/2014 02:26:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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