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TRANSPACO LIMITED HIGHLIGHTS - REVENUE UP 56% - AFTER-TAX PROFIT UP 195% - FULLY DILUTED EPS UP 100%
- CAPITALISATION SHARE ISSUE OF 4,16667 SHARES PER 100 SHARES HELD
- MARKET CAPITALISATION UP FROM R11 MILLION TO R72 MILLION REPORT FOR THE YEAR ENDED 31ST MARCH 1998 INCOME STATEMENT
YEAR YEAR ENDED ENDED 31/03/98 31/03/97 R000'S R000'S (AUDITED) (AUDITED) TURNOVER 116 767 74 935 OPERATING PROFIT
BEFORE NET FINANCE COSTS 12 393 5 179 NET FINANCE COSTS (2 881) (2 076) PROFIT BEFORE TAXATION 9 512 3 103 TAXATION (3 057) (901) PROFIT AFTER TAXATION
ATTRIBUTABLE TO SHAREHOLDERS 6 455 2 202 NUMBER OF ORDINARY SHARES
IN ISSUE (000) FULLY DILUTED 16 001 11 000 EARNINGS PER SHARE (CENTS) 40 20 SUMMARISED GROUP BALANCE SHEET
YEAR YEAR ENDED ENDED 31/03/98 31/03/97 R000'S R000'S (AUDITED) (AUDITED) CAPITAL EMPLOYED
SHAREHOLDERS' INTEREST 21 146 13 358 LONG-TERM LIABILITIES 3 789 3 048 DEFERRED TAXATION 606 606 25 541 17 012 EMPLOYMENT OF CAPITAL
FIXED ASSETS 15 642 10 935 SHARE INCENTIVE SCHEME - 107 NET CURRENT ASSETS 9 899 5 970 CURRENT ASSETS 49 664 29 438 CURRENT LIABILITIES 39 765 23 468 INTEREST BEARING 11 923 8 433 NON-INTEREST BEARING 27 842 15 035 25 541 17 012 NET ASSET VALUE PER SHARE (CENTS) 132 121 COMMENTS ON RESULTS
DURING THE YEAR UNDER REVIEW, ALL COMPANIES TRADED PROFITABLY AND THE GROUP PERFORMED ABOVE EXPECTATIONS.
TURNOVER INCREASED 56% FROM R74,9 MILLION TO R116,7 MILLION WITH AFTER-TAX PROFIT UP 195% FROM R2,2 MILLION TO R6,5 MILLION. EARNINGS PER SHARE, ON A FULLY DILUTED BASIS, INCREASED 100% FROM 20 CENTS TO 40 CENTS. OPERATIONAL REVIEW
TRANSPACO PACKAGING OPERATING IN THE PLASTIC AND PAPER PACKAGING INDUSTRY HAS EXPANDED BY WAY OF A NATIONAL NETWORK OF FRANCHISED OPERATIONS WHICH IS PROVING SUCCESSFUL.
THE FRANCHISES TRADE UNDER THE NAME OF T-WRAPS . IT IS ANTICIPATED THAT THE NUMBER OF OUTLETS WILL BE DOUBLED IN THE COMING YEAR.
PLASTAFRICA EXPERIENCED STRONG ORGANIC GROWTH DURING THE YEAR. IT IS WELL POSITIONED AS ONE OF THE LEADING COMPANIES IN SOUTH AFRICA SUPPLYING CARRIER BAGS TO THE RETAIL CHAINS AND HAS BENEFITED FROM AN AGGRESSIVE MARKETING EFFORT FRAMEN PAPER TRADED EXCEPTIONALLY WELL DURING THE PERIOD UNDER REVIEW AND CONTINUES TO BE A MAJOR CONTRIBUTOR TO THE GROUP'S PROFITS.
BUBBLEPAC ESTABLISHED IN 1997 GREW RAPIDLY OVER THE LAST TWELVE MONTHS. THERE IS CONSIDERABLE SCOPE FOR FURTHER DEVELOPMENT AS MANAGEMENT EXPLORES NEW MARKETS AND APPLICATIONS FOR ITS PRODUCT.
TERBO PLASTICS WAS ACQUIRED IN 1997 AND REPRESENTS THE GROUP'S ENTRY INTO THE RIGID PLASTICS INDUSTRY. THE COMPANY TRADED VERY WELL AND FURTHER DEVELOPMENTS ARE UNDER WAY. ACQUISITIONS
SINCE THE YEAR END THE GROUP HAS BEEN SIGNIFICANTLY ENLARGED FOLLOWING THE ACQUISITION OF TWO PLASTIC CONVERSION GROUPS; THE PERANA GROUP AND THE SILVERPACK GROUP.
THE PERANA GROUP IS A PREDOMINANTLY THERMO-FORMING BUSINESS WITH INJECTION MOULDING AND FABRICATION CAPABILITIES.
THE SILVERPACK GROUP IS ACTIVE IN THE RECYCLING, PLASTIC BAG MANUFACTURING AND HEAVY DUTY PIPE EXTRUSION BUSINESS.
RESULTS OF THESE TWO GROUPS ARE NOT INCLUDED IN THE FIGURES FOR THE YEAR ENDED 31 MARCH 1998. BENEFITS OF ACQUISITION
THERE ARE A NUMBER OF SIGNIFICANT BENEFITS TO THE GROUP AS A RESULT OF THE ACQUISITIONS. THESE INCLUDE: - VERTICAL INTEGRATION BENEFITS, - CROSS MARKETING OPPORTUNITIES, - INCREASED PRODUCTION FACILITIES, - RAW MATERIAL ADVANTAGES, - INCREASED PURCHASING POWER, - NEW MARKETS, - GREATER MARKET SHARE IN CERTAIN PRODUCT LINES. PROSPECTS
PROSPECTS FOR THE GROUP IN THE COMING YEAR ARE ENCOURAGING. ALL TRANSPACO OPERATIONS ARE TRADING WELL AND CONTINUED ORGANIC GROWTH IS ANTICIPATED. THE NATIONAL MOVE TOWARDS RE-USE OF RAW MATERIALS IS INCORPORATED IN THE GROUP'S STRATEGY AND TRANSPACO IS NOW WELL POSITIONED TO PARTICIPATE MORE ACTIVELY IN THE RECYCLING INDUSTRY.
THE "T-WRAPS" OPERATION WILL PROVIDE BENEFITS FOR THE GROUP IN THE FUTURE. ALL GROUP OPERATIONS HAVE CLEARLY DEFINED GROWTH STRATEGIES. THIS COMBINED WITH THE ACQUISITIONS, WILL ENSURE THAT STRONG EARNINGS GROWTH WILL CONTINUE. CAPITALISATION SHARE ISSUE
THE DIRECTORS HAVE RESOLVED TO AWARD A CAPITALISATION SHARE ISSUE TO ORDINARY SHAREHOLDERS.
NOTICE IS HEREBY GIVEN THAT A CAPITALISATION ISSUE OF SHARES AT A NOMINAL VALUE OF ONE CENT EACH HAS BEEN AWARDED IN THE RATIO OF 4,16667 NEW ORDINARY SHARES PER 100 SHARES HELD TO SHAREHOLDERS REGISTERED IN THE BOOKS OF THE COMPANY AT THE CLOSE OF BUSINESS ON 12 JUNE 1998.
NEW SHARE CERTIFICATES AND CHEQUES IN RESPECT OF FRACTIONAL ENTITLEMENTS WILL BE POSTED ON OR ABOUT 19 JUNE 1998. APPLICATION WILL BE MADE TO THE
JOHANNESBURG STOCK EXCHANGE ("THE JSE") FOR THE CAPITALISATION OF SHARES TO BE LISTED WITH EFFECT FROM THE COMMENCEMENT OF BUSINESS ON 15 JUNE 1998. PROPOSED ACQUISITIONS AND CASH ISSUE
SHAREHOLDERS ARE REFERRED TO THE DETAILED ANNOUNCEMENT DATED 21 APRIL 1998 WHEREIN IT WAS MENTIONED THAT THE EFFECT OF THE ACQUISITIONS AND CASH ISSUE ON THE NET TANGIBLE ASSET VALUE PER SHARE WOULD BE DISCLOSED TOGETHER WITH THE AUDITED RESULTS OF TRANSPACO FOR THE YEAR ENDED 31 MARCH 1998.
THE TABLE BELOW SETS OUT THE PRO FORMA FINANCIAL EFFECTS OF THE ACQUISITIONS AND THE CASH ISSUE ON A FULLY DILUTED BASIS, ON THE PRO FORMA EARNINGS AND THE NET TANGIBLE ASSET VALUE PER TRANSPACO SHARE BASED ON THE ASSUMPTION THAT THE FORECAST PROFITS WILL BE ATTAINED AND THAT THE FUNDS RAISED WILL BE UTILISED TO REPAY BORROWINGS BEARING AN INTEREST RATE OF 18,25% PER ANNUM AND A TAX RATE OF 35% HAVING BEEN APPLIED TO THE INTEREST SAVED. IN TERMS OF THE SALE AGREEMENTS:
- THE NEWSHELF VENDORS HAVE WARRANTED THAT THE NET PROFIT AFTER TAX ("NPAT") FOR THE PERIOD 1 APRIL 1998 TO 31 MARCH 1999 (THE WARRANTED PERIOD) WILL NOT BE LESS THAN R7 960 000; AND
- THE PE RECOVERIES VENDOR HAS WARRANTED THAT THE NPAT FOR THE WARRANTED PERIOD WILL BE NOT LESS THAN R1 500 000.
PROFIT FORECAST ACTUAL PROFIT PRO FORMA AFTER YEAR ENDED PROFIT
TERBO ACQUISITION 31 MARCH 1998 FORECAST BEFORE AS PER THE CASH
THE CIRCULAR ISSUE AND TO SHAREHOLDERS ACQUISITIONS 27 NOVEMBER 1997 31 MARCH 1999 EARNINGS PER
SHARE (CENTS) 37,2 40 44,6
NET ASSET VALUE (CENTS) 129 132 172
PRO FORMA PRO FORMA PRO FORMA PROFIT PROFIT PROFIT FORECAST FORECAST AFTER FORECAST AFTER AFTER THE CASH THE CASH ISSUE THE ACQUISITIONS THE CASH ISSUE 31 MARCH 1999 31 MARCH 1999 AND ACQUISITIONS 31 MARCH 1999 EARNINGS PER SHARE (CENTS)45,4 53,9 53,9
NET ASSET VALUE (CENTS) 206 147 164
A CIRCULAR TO SHAREHOLDERS CONTAINING DETAILS OF THE ACQUISITIONS AND NOTICE OF A GENERAL MEETING AT WHICH SHAREHOLDERS WILL BE REQUIRED TO CONSIDER AND, IF DEEMED APPROPRIATE, VOTE IN FAVOUR OF THE NECESSARY RESOLUTION TO EFFECT THE ACQUISITIONS, WILL NOW BE POSTED ON OR ABOUT 12 JUNE 1998, SUBJECT TO THE APPROVAL OF THE JSE AND THE SRP. THE CIRCULAR WILL ALSO CONTAIN DETAILS OF THE MINORITY OFFER.
