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GROUP FIVE LIMITED
REGISTRATION NUMBER 69/00032/06
GROUP INCOME STATEMENT (R'000) AUDITED
YEAR ENDED 30 JUNE
1998 1997
REVENUE 2,925,946 2,427,489
OPERATING PROFIT 109,138 75,065
FINANCE COSTS (8,162) (20,125)
PROFIT BEFORE TAXATION 100,976 54,940
TAXATION (32,647) (15,772)
PROFIT AFTER TAXATION 68,329 39,168
OUTSIDE SHAREHOLDERS' INTEREST (1,848) (853)
ATTRIBUTABLE PROFIT 66,481 38,315
DIVIDENDS (17,658) (14,715)
RETAINED PROFIT FOR THE YEAR 48,823 23,600
OPERATING PROFIT IS STATED AFTER CREDITING:
ATTRIBUTABLE PROFIT BEFORE TAX OF ASSOCIATES 8,471 5,376
AND AFTER CHARGING:
DEPRECIATION AND AMORTISATION 67,917 56,357
ABRIDGED GROUP BALANCE SHEET (R'000) AUDITED
30 JUNE 30 JUNE
1998 1997
CAPITAL EMPLOYED
ORDINARY SHAREHOLDERS' INTEREST 412,772 389,626
OUTSIDE SHAREHOLDERS' INTEREST 89 395
DEFERRED TAXATION 26,381 28,904
LONG TERM LIABILITIES 14,307 16,768
453,549 435,693
EMPLOYMENT OF CAPITAL
FIXED ASSETS 370,963 352,315
ASSOCIATES 36,668 35,736
INVESTMENTS 29,125 196
NET CURRENT ASSETS 16,793 47,446
BANK BALANCES & CASH 158,567 179,269
OTHER CURRENT ASSETS 922,098 834,678
TOTAL CURRENT ASSETS 1,080,665 1,013,947
ACCOUNTS PAYABLE 935,977 900,150
BANK OVERDRAFTS AND SHORT TERM BORROWINGS 117,489 58,258
SHAREHOLDERS FOR DIVIDEND 10,406 8,093
TOTAL CURRENT LIABILITIES 1,063,872 966,501
453,549 435, 693
SUMMARISED CASH FLOW STATEMENT (R'000)
CASH FLOW FROM OPERATING ACTIVITIES
CASH FROM OPERATIONS 160,809 115,149
WORKING CAPITAL CHANGES (69,536) 95,376
CASH GENERATED FROM OPERATIONS 91,273 210,525
FINANCE COST (8,162) (20,125)
TAXATION AND DIVIDENDS PAID (32,573) (17,939)
NET CASH FROM OPERATING ACTIVITIES 50,538 172,461
NET INVESTMENT ACTIVITIES (130,471) (85,305)
NET (DECREASE)/INCREASE IN CASH AND CASH
EQUIVALENTS (79,933) 87,156
INVESTMENTS
UNLISTED SHARES AT COST AND DIRECTORS' VALUATION 29,125 196
CAPITAL EXPENDITURE FOR THE YEAR 114,851 118,361
CAPITAL EXPENDITURE COMMITTED OR AUTHORISED 121,912 122,457
STATISTICS
NUMBER OF ORDINARY SHARES IN ISSUE 73 573 023 73 573 023
EARNINGS PER SHARE - CENTS 90.36 52.08
DIVIDEND COVER 3.8 2.6
DIVIDENDS PER SHARE
CENTS 24.0 20.0
INTERIM 9.0 9.0
FINAL 15.0 11.0
NET ASSET VALUE PER SHARE - CENTS 561.0 529.6
CURRENT RATIO 1.0 1.0
GROUP FIVE HOLDINGS LIMITED
REGISTRATION NUMBER 88/00321/06
GROUP INCOME STATEMENT (R'000) AUDITED
YEAR ENDED 30 JUNE
1998 1997
REVENUE 2,925,946 2,427,489
OPERATING PROFIT 109,138 75,065
FINANCE COSTS (8,162) (20,125)
PROFIT BEFORE TAXATION 100,976 54,940
TAXATION (32,647) (15,772)
PROFIT AFTER TAXATION 68,329 39,168
OUTSIDE SHAREHOLDERS' INTEREST (47,987) (27,445)
ATTRIBUTABLE PROFIT 20,342 11,723
DIVIDENDS (5,292) (4,486)
RETAINED PROFIT FOR THE YEAR 15,050 7,237
OPERATING PROFIT IS STATED AFTER CREDITING:
ATTRIBUTABLE PROFIT BEFORE TAX OF ASSOCIATES 8,471 5,376
AND AFTER CHARGING:
DEPRECIATION AND AMORTISATION 67,917 56,357
ABRIDGED GROUP BALANCE SHEET (R'000) AUDITED
30 JUNE 30 JUNE
1998 1997
CAPITAL EMPLOYED
ORDINARY SHAREHOLDERS' INTEREST 126,531 119,337
OUTSIDE SHAREHOLDERS' INTEREST 286,552 270,797
DEFERRED TAXATION 26,381 28,904
LONG TERM LIABILITIES 14,307 16,768
453,771 435,806
EMPLOYMENT OF CAPITAL
FIXED ASSETS 370,963 352,315
ASSOCIATES 36,668 35,736
INVESTMENTS 29,125 196
NET CURRENT ASSETS 17,015 47,559
BANK BALANCES & CASH 158,567 179,269
OTHER CURRENT ASSETS 925,475 837,328
TOTAL CURRENT ASSETS 1,084,042 1,016,597
ACCOUNTS PAYABLE 946,317 908,364
BANK OVERDRAFTS AND SHORT TERM BORROWINGS 117,489 58,258
SHAREHOLDERS FOR DIVIDEND 3,221 2,416
TOTAL CURRENT LIABILITIES 1,067,027 969,038
453,771 435,806
INVESTMENTS
UNLISTED SHARES AT COST AND DIRECTORS' VALUATION 29,125 196
CAPITAL EXPENDITURE FOR THE YEAR 114 851 118,361
CAPITAL EXPENDITURE COMMITTED OR AUTHORISED 121,912 122,457
STATISTICS
NUMBER OF ORDINARY SHARES IN ISSUE 23 007 545 23 007 545
EARNINGS PER SHARE - CENTS 88.4 51.0
DIVIDEND COVER 3.8 2.6
DIVIDENDS PER SHARE -
CENTS 23.0 19.5
INTERIM 9.0 9.0
FINAL 14.0 10.5
NET ASSET VALUE PER SHARE - CENTS 550.0 518.7
CURRENT RATIO 1.0 1.0
SM GOLDSTEIN LIMITED
REGISTRATION NUMBER 05/29557/06
GROUP INCOME STATEMENT (R'000) AUDITED
YEAR ENDED 30 JUNE
1998 1997
SHARE OF ASSOCIATE'S PROFIT BEFORE TAXATION 13,808 7,653
SHARE OF ASSOCIATE'S TAXATION (4,570) (2,192)
ATTRIBUTABLE PROFIT 9,238 5,461
DIVIDENDS (2,299) (1,949)
RETAINED PROFIT FOR THE YEAR 6,939 3,512
ABRIDGED GROUP BALANCE SHEET (R'000) AUDITED
30 JUNE 30 JUNE
1998 1997
CAPITAL EMPLOYED
ORDINARY SHAREHOLDERS' INTEREST 67,763 60,824
EMPLOYMENT OF CAPITAL
INVESTMENTS 67,378 60,543
NET CURRENT ASSETS 385 281
OTHER CURRENT ASSETS 1,850 1,396
TOTAL CURRENT ASSETS 1,850 1,396
ACCOUNTS PAYABLE 66 66
SHAREHOLDERS FOR DIVIDEND 1,399 1,049
TOTAL CURRENT LIABILITIES 1,465 1,115
67,763 60,824
STATISTICS
NUMBER OF ORDINARY SHARES IN ISSUE 9 995 000 9 995 000
EARNINGS PER SHARE - CENTS 92.4 54.6
DIVIDEND COVER 4.0 2.8
DIVIDENDS PER SHARE -
CENTS 23.0 19.5
INTERIM 9.0 9.0
FINAL 14.0 10.5
NET ASSET VALUE PER SHARE - CENTS 678.0 608.5
CURRENT RATIO 1.3 1.3
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 ON 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
THE GROUP'S PERFORMANCE EXCEEDED BUDGET AND SHOWED A SIGNIFICANT IMPROVEMENT
OVER THE PREVIOUS YEAR. ATTRIBUTABLE PROFIT INCREASED BY 73,5% ON A TURNOVER
INCREASE OF 20,5%. EARNINGS PER SHARE ROSE FROM 52,1 CENTS TO 90,4 CENTS PER
SHARE ENABLING THE GROUP TO INCREASE THE TOTAL DIVIDEND PAYMENT FOR THE YEAR BY
20% TO 24 CENTS PER SHARE.
THE GROUP REMAINED UNGEARED AT BALANCE SHEET DATE, IN SPITE OF CAPITAL
EXPENDITURE AND THE ACQUISITION OF INTERTOLL AND ARMITAGE SHANKS CONSUMING R128
MILLION. FINANCE COSTS REDUCED BY 59% DUE TO EFFECTIVE CASH MANAGEMENT DURING
THE YEAR.
OVER BORDER ACTIVITIES CONTRIBUTED TO THE BOTTOM LINE WITH WORK OPPORTUNITIES
OUTSIDE OF THE COUNTRY PROVING TO BE MORE PROFITABLE THAN THOSE IN THE
COMPETITIVE LOCAL MARKETS.
THE ROADS AND CIVILS DIVISIONS ONCE AGAIN PRODUCED EXCELLENT RESULTS AND THE
BUILDING DIVISION SHOWED A SUBSTANTIAL IMPROVEMENT OVER THE PREVIOUS YEAR. A
VERY GOOD PERFORMANCE BY THE ENGINEERING DIVISION WAS MARRED BY COSTS ARISING
FROM THE CLOSURE OF CERTAIN BUSINESS ACTIVITIES.
THE MANUFACTURING DIVISION HAD A DISAPPOINTING YEAR AS A CONSEQUENCE OF POOR
PERFORMANCES AT AC PIPES AND VAAL POTTERIES. ACTIVE STEPS, INCLUDING THE
RATIONALISATION OF FACTORY OPERATIONS, ARE ALREADY IN PROGRESS TO ADDRESS THIS
SITUATION.
THE DECISION TO CURTAIL PROPERTY ACTIVITIES IN THE SECTIONAL TITLE MARKET HAS
PROVEN TO BE CORRECT AND NO MATERIAL LOSSES ARE EXPECTED IN FUTURE YEARS.
THE GROUP HAS INSTITUTED A YEAR 2000 PROGRAM, FULL DETAILS OF WHICH WILL BE
INCLUDED IN THE ANNUAL REPORT.
PROSPECTS
LOCAL MARKET CONDITIONS CONTINUE TO BE DIFFICULT AND COULD DETERIORATE SHOULD
THE CURRENT HIGH INTEREST RATES PERSIST.
IN THESE CIRCUMSTANCES THE GROUP CONTINUES TO SEEK WORK OUTSIDE OF OUR BORDERS,
WHILST VIGOROUSLY PURSUING LOCAL OPPORTUNITIES.
GIVEN THE CURRENT ORDER BOOK, THE CURTAILMENT OF LOSS MAKING OPERATIONS AND THE
GROUP'S STRONG FINANCIAL POSITION, IT IS EXPECTED THAT THE RESULTS FOR THE
ENSUING FINANCIAL YEAR SHOULD EXCEED THOSE OF THE CURRENT YEAR.
DIVIDEND DECLARATION
GROUP FIVE LIMITED
THE DIRECTORS HAVE DECLARED A FINAL DIVIDEND OF 15 CENTS PER ORDINARY SHARE
(1997 : 11 CENTS) AND 15 CENTS PER "N" ORDINARY SHARE (1997 : 11 CENTS) PAYABLE
TO SHARE HOLDERS REGISTERED IN THE BOOKS OF THE COMPANY AT THE CLOSE OF
BUSINESS ON 25 SEPTEMBER 1998. DIVIDEND CHEQUES WILL BE POSTED TO SHAREHOLDERS
ON OR ABOUT 9 OCTOBER 1998.
GROUP FIVE HOLDINGS LIMITED
THE DIRECTORS HAVE DECLARED A FINAL DIVIDEND OF 14 CENTS PER ORDINARY SHARE
(1997 : 10,5 CENTS PAYABLE TO SHARE HOLDERS REGISTERED IN THE BOOKS OF THE
COMPANY AT THE CLOSE OF BUSINESS ON 25 SEPTEMBER 1998. DIVIDEND CHEQUES WILL BE
POSTED TO SHAREHOLDERS ON OR ABOUT 9 OCTOBER 1998.
SM GOLDSTEIN LIMITED
THE DIRECTORS HAVE DECLARED A FINAL DIVIDEND OF 14 CENTS PER ORDINARY SHARE
(1997 : 10,5 CENTS PAYABLE TO SHARE HOLDERS REGISTERED IN THE BOOKS OF THE
COMPANY AT THE CLOSE OF BUSINESS ON 25 SEPTEMBER 1998. DIVIDEND CHEQUES WILL BE
POSTED TO SHAREHOLDERS ON OR ABOUT 9 OCTOBER 1998.
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