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GROUP FIVE INTERIM RESULTS

Release Date: 19/02/1998 17:00
Code(s): GRF GPN GHO
Wrap Text

GROUP FIVE LIMITED AND GROUP FIVE HOLDINGS LIMITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 1997 SALIENT FEATURES GROUP FIVE LIMITED
CHANGE 1997 1996
REVENUE - R000'S +20% 1 483 496 1 234 355
OPERATING PROFIT - R000'S -28% 36 296 50 888
EARNINGS PER SHARE - CENTS -15% 30,75 36,03
INTERIM DIVIDEND DECLARED - CENTS - 9,0 9,0 GROUP STRUCTURE
THE INCOME OF GROUP FIVE HOLDINGS LIMITED IS DERIVED ENTIRELY FROM ITS 30,6% INTEREST IN GROUP FIVE LIMITED WITH THE INCOME ACCRUING ON EACH SHARE
APPROXIMATING 98% OF THE INCOME ON EACH GROUP FIVE LIMITED SHARE. THE INCOME OF SM GOLDSTEIN LIMITED IS DERIVED ENTIRELY FROM ITS 45% INTEREST IN GROUP FIVE HOLDINGS LIMITED. THE INCOME ACCRUING TO EACH SHARE IN SM GOLDSTEIN LIMITED EQUATES TO APPROXIMATELY 102% OF THE INCOME ON EACH GROUP FIVE LIMITED SHARE. THE COMMENTS AND PROSPECTS BELOW ARE THUS EQUALLY RELEVANT TO ALL THREE COMPANIES. COMMENTS
ATTRIBUTABLE EARNINGS ARE 15% LOWER THAN THE COMPARABLE PERIOD IN THE PREVIOUS YEAR.
WHILST TURNOVER INCREASED BY 20%, OPERATING PROFIT DECLINED BY 28% DUE MAINLY TO THE PROPERTIES DIVISION WHOSE FAVOURABLE RESULTS AT THE PREVIOUS HALF YEAR WERE NOT REPEATED. THE DECISION TAKEN IN JUNE 1997 TO SIGNIFICANTLY CURTAIL THE GROUP'S OPERATIONS IN THE RESIDENTIAL SECTIONAL TITLE MARKET HAS HOWEVER RESULTED IN CONSIDERABLE SAVINGS IN FINANCING COSTS DUE TO THE ONGOING REDUCTION IN PROPERTY HOLDINGS, A TREND WHICH WILL CONTINUE DURING THE SECOND HALF.
DURING THE PERIOD THE GROUP ACQUIRED A 75% SHAREHOLDING IN INTERTOLL WHOSE ACTIVITIES INCLUDE TOLL ROAD OPERATIONS AND MAINTENANCE IN SOUTH AFRICA AND EASTERN EUROPE. THIS ACQUISITION, TOTALLING R42 MILLION, TOGETHER WITH INVESTMENTS IN CAPITAL EXPENDITURE, ABSORBED R100 MILLION OF THE GROUP'S CASH RESOURCES AND DECREASES IN ADVANCE PAYMENTS ON CONTRACTS LED TO AN INCREASE IN WORKING CAPITAL. THE GROUP'S FINANCIAL POSITION NEVERTHELESS REMAINS STRONG. AFTER REVIEWING THE EARNINGS EXPECTATIONS FOR THE FULL YEAR, THE BOARD HAS DECIDED TO MAINTAIN THE INTERIM DIVIDEND AT THE SAME LEVEL AS THAT OF THE COMPARABLE PERIOD IN THE PREVIOUS YEAR. PROSPECTS
WHILST DIFFICULT TRADING CONDITIONS WILL CONTINUE PARTICULARLY IN THE BUILDING SECTOR, OPPORTUNITIES EXIST FOR THE GROUP IN THE LOCAL PRIVATE AND PUBLIC SECTOR MARKETS AS WELL AS IN EXPANDING OUR ACTIVITIES INTO AFRICA. THE BENEFITS OF THE ACTIONS TAKEN TO DOWNSIZE THE PROPERTIES DIVISION WILL RESULT IN A CONSIDERABLE IMPROVEMENT IN THE NEXT HALF YEAR RESULTS OF THIS DIVISION RELATIVE TO THOSE OF THE COMPARABLE PERIOD LAST YEAR. ALL OTHER DIVISIONS SHOULD MEET THEIR FORECASTS AND THE RESULTS OF THE GROUP FOR THE NEXT SIX MONTHS WILL EXCEED THOSE OF THE FIRST SIX MONTHS.
THE GROUP HAS BOTH THE FINANCIAL AND HUMAN RESOURCES TO MEET THE CHALLENGING OPPORTUNITIES FACING US IN THE FAST CHANGING MARKETPLACES IN WHICH WE OPERATE. DECLARATION OF INTERIM DIVIDEND BY GROUP FIVE LIMITED AND GROUP FIVE HOLDINGS LIMITED
THE DIRECTORS HAVE DECLARED AN INTERIM DIVIDEND OF 9,0 CENTS PER ORDINARY SHARE (1996: 9,0 CENTS) AND 9,0 CENTS PER GROUP FIVE LIMITED "N" ORDINARY SHARE (1996: 9,0 CENTS) PAYABLE TO SHAREHOLDERS REGISTERED IN THE BOOKS OF THE COMPANIES AT THE CLOSE OF BUSINESS ON FRIDAY, 20 MARCH 1998. DIVIDEND CHEQUES WILL BE POSTED TO SHAREHOLDERS ON OR ABOUT MONDAY, 6 APRIL 1998. ON BEHALF OF THE BOARD MH LOMAS HC TURNER 19 FEBRUARY 1998 REGISTERED OFFICE 371 RIVONIA BOULEVARD, RIVONIA, 2128 TEL 806 0111 E-MAIL INFO@G5.CO.ZA FAX 803 1324 WEBSITE WWW.G5.CO.ZA GROUP INCOME STATEMENT
AUDITED UNAUDITED UNAUDITED AUDITED YEAR ENDED SIX MONTHS ENDED SIX MONTHS ENDED YEAR ENDED 30 JUNE 31 DECEMBER 31 DECEMBER 30 JUNE 1997 1996 1997 1997 1996 1997 R000 R000 R000 R000 R000 R000 2 427 489 1 234 355 1 483 496 REVENUE 1 483 496 1 234 355 2 427 489 OPERATING
75 065 50 888 36 296 PROFIT 36 296 50 888 75 065 FINANCE
(20 125) (13 726) (2 960) COSTS (2 960) (13 726) (20 125) PROFIT BEFORE
54 940 37 162 33 336 TAXATION 33 336 37 162 54 940 (15 772) (10 651) (9 874) TAXATION (9 874) (10 651) (15 772) PROFIT AFTER
39 168 26 511 23 462 TAXATION 23 462 26 511 39 168 OUTSIDE SHAREHOLDERS'
(853) 0 (840) INTEREST (17 123) (18 399) (27 445) ATTRIBUTABLE
38 315 26 511 22 622 EARNINGS 6 339 8 112 11 723 (14 715) (6 628) (6 622) DIVIDENDS (2 071) (2 071) (4 486) RETAINED PROFIT FOR
23 600 19 883 16 000 THE PERIOD 4 268 6 041 7 237 OPERATING PROFIT IS STATED AFTER CREDITING: ATTRIBUTABLE PROFIT BEFORE TAX OF ASSOCIATES AND AFTER
5 376 2 369 2 033 CHARGING: 2 033 2 369 5 376 DEPRECIATION AND
56 357 25 320 37 784 AMORTISATION 37 784 25 320 56 357 ABRIDGED GROUP BALANCE SHEET CAPITAL EMPLOYED ORDINARY SHAREHOLDERS'
389 626 387 385 373 936 INTEREST 115 579 118 256 119 337 OUTSIDE SHAREHOLDERS'
395 522 192 INTEREST 258 616 269 705 270 797 DEFERRED
28 904 40 354 38 160 TAXATION 38 160 40 354 28 904 LONG-TERM
16 768 15 325 14 737 LIABILITIES 14 737 15 325 16 768 435 693 443 586 427 025 427 092 443 640 435 806 EMPLOYMENT OF CAPITAL
352 315 315 881 363 687 FIXED ASSETS 363 687 315 881 352 315 35 736 33 091 32 484 ASSOCIATES 32 484 33 091 35 736 196 2 779 21 937 INVESTMENTS 21 937 2 779 196 NET CURRENT
47 446 91 835 8 917 ASSETS 8 984 91 889 47 559 BANK BALANCES
179 269 178 745 85 193 AND CASH 85 193 178 745 179 269 OTHER CURRENT
834 678 549 551 604 945 ASSETS 604 945 549 551 837 328 TOTAL CURRENT
1 013 947 728 296 690 138 ASSETS 690 138 728 296 1 016 597 ACCOUNTS
900 150 540 350 611 185 PAYABLE 615 669 544 853 908 364 BANK OVERDRAFTS AND SHORT-TERM
58 258 89 483 63 414 BORROWINGS 63 414 89 483 58 258 SHAREHOLDERS
8 093 6 628 6 622 FOR DIVIDEND 2 071 2 071 2 416 TOTAL CURRENT
966 501 636 461 681 221 LIABILITIES 681 154 636 407 969 038 435 693 443 586 427 025 427 092 443 640 435 806 SUMMARISED CASH FLOW STATEMENT CASH FLOW FROM OPERATING ACTIVITIES
115 149 76 104 72 289 CASH FROM OPERATIONS
95 376 29 143 (53 858) WORKING CAPITAL CHANGES
210 525 105 247 18 431 CASH GENERATED FROM OPERATIONS (20 125) (13 726) (2 960) FINANCE COSTS
(17 939) (3 330) (14 085) TAXATION AND DIVIDENDS PAID
172 461 88 191 1 386 NET CASH FROM OPERATING ACTIVITIES
(85 305) (33 784) (100 618) NET INVESTMENT ACTIVITIES
87 156 55 407 (99 232) NET INCREASE/(DECREASE) IN CASH EQUIVALENTS INVESTMENTS UNLISTED SHARES AT
196 196 14 242 COST 14 242 196 196 LOANS AND
0 2 583 7 695 ADVANCES 7 695 2 583 0
196 2 779 21 937 21 937 2 779 196 UNLISTED SHARES AT DIRECTORS'
196 196 14 242 VALUATION 14 242 196 196 CAPITAL EXPENDITURE FOR THE
118 361 29 873 49 156 PERIOD 49 156 29 87 3 118 361 CAPITAL EXPENDITURE COMMITTED OR
122 457 44 213 74 159 AUTHORISED 74 159 44 213 122 457 STATISTICS 73 573 023 73 573 023 73 573 023 NUMBER OF ORDINARY SHARES IN
73 573 023 73 573 023 73 573 023 ISSUE 23 007 545 23 007 545 23 007 545 EARNINGS PER SHARE
52,08 36,03 30,75 - CENTS 27,6 35,3 51,0 DIVIDEND
2,6 4,0 3,4 COVER 3,1 3,9 2,6 DIVIDENDS PER SHARE
20,0 9,0 9,0 - CENTS 9,0 9,0 19,5 9,0 9,0 9,0 INTERIM 9,0 9,0 9,0 11,0 FINAL 10,5 NET ASSET VALUE PER
529,6 526,5 508,3 SHARE - CENTS 502,4 514,0 518,7 PERCENTAGE NET BORROWINGS TO SHAREHOLDERS'
- - - INTEREST - - -
1,0 1,1 1,0 CURRENT RATIO 1,0 1,1 1,0 SM GOLDSTEIN LIMITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 1997 GROUP INCOME STATEMENT UNAUDITED AUDITED SIX MONTHS ENDED YEAR ENDED 31 DECEMBER 30 JUNE 1997 1996 1997
R000 R000 R000 SHARE OF ASSOCIATE'S PROFIT
BEFORE TAXATION 4 515 5 260 7 653 SHARE OF ASSOCIATE'S TAXATION (1 372) (1 578) (2 192) ATTRIBUTABLE EARNINGS 3 143 3 682 5 461 DIVIDENDS (900) (900) (1 949) RETAINED PROFIT FOR THE PERIOD 2 243 2 782 3 512 ABRIDGED GROUP BALANCE SHEET CAPITAL EMPLOYED
ORDINARY SHAREHOLDERS' INTEREST 63 067 42 610 60 824 EMPLOYMENT OF CAPITAL INVESTMENTS 62 746 42 373 60 543 NET CURRENT ASSETS 321 237 281
OTHER CURRENT ASSETS 1 287 1 203 1 396 TOTAL CURRENT ASSETS 1 287 1 203 1 396 ACCOUNTS PAYABLE 66 66 66
SHAREHOLDERS FOR DIVIDEND 900 900 1 049 TOTAL CURRENT LIABILITIES 966 966 1 115 63 067 42 610 60 824 STATISTICS
NUMBER OF ORDINARY SHARES IN ISSUE 9 995 000 9 995 000 9 995 000 EARNINGS PER SHARE P CENTS 31,4 36,8 54,6
DIVIDEND COVER 3,5 4,1 2,8
DIVIDENDS PER SHARE P CENTS 9,0 9,0 19,5
INTERIM 9,0 9,0 9,0
FINAL 10,5
NET ASSET VALUE PER SHARE P CENTS 631,0 426,3 608,5 CURRENT RATIO 1,3 1,2 1,3 DECLARATION OF INTERIM DIVIDEND
THE DIRECTORS HAVE DECLARED AN INTERIM DIVIDEND OF 9,0 CENTS PER ORDINARY SHARE (1996: 9,0 CENTS) PAYABLE TO SHAREHOLDERS REGISTERED IN THE BOOKS OF THE COMPANY AT THE CLOSE OF BUSINESS ON FRIDAY, 20 MARCH 1998. DIVIDEND CHEQUES WILL BE POSTED TO SHAREHOLDERS ON OR ABOUT MONDAY, 6 APRIL 1998. ON BEHALF OF THE BOARD SM GOLDSTEIN MH LOMAS 20 FEBRUARY 1998 REGISTERED OFFICE 371 RIVONIA BOULEVARD, RIVONIA, 2128 TEL 806 0111 FAX 803 1324 E-MAIL INFO@G5.CO.ZA WEBSITE WWW.G5.CO.ZA

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