To view the PDF file, sign up for a MySharenet subscription.

TRANSPACO REPORT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 1998

Release Date: 15/12/1998 09:23
Code(s): TPC
Wrap Text
TRANSPACO LIMITED
REG NUMBER 51/00799/06
* REVENUE UP 114%
* PROFIT AFTER TAX UP 410%
* EPS UP 82%
REPORT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 1998

INCOME STATEMENT 6 MONTHS 6 MONTHS 12 MONTHS ENDED ENDED ENDED
30/09/98 30/09/97 31/03/98 R000'S R000'S R000'S
- - (AUDITED) REVENUE 86 066 40 139 116 767 OPERATING PROFIT BEFORE FINANCE
CHARGES 10 903 2 699 12 393
NET FINANCE CHARGES 1 846 1 091 2 881
PROFIT BEFORE TAXATION 9 057 1 608 9 512
TAXATION 2 989 420 3 057 PROFIT AFTER TAXATION ATTRIBUTABLE
TO SHAREHOLDERS 6 068 1 188 6 455 NUMBER OF ORDINARY SHARES IN ISSUE
(000) 30 798 11 000 16 001
EARNINGS PER SHARE (CENTS) 19.7 10.8 40 EARNINGS PER SHARE (CENTS) (FULLY
DILUTED) 15.7 10.8 40
SUMMARISED GROUP 30/09/98 30/09/97 31/03/98 BALANCE SHEET R000'S R000'S R000'S
- - (AUDITED) CAPITAL EMPLOYED
SHAREHOLDERS' INTEREST 44 971 14 546 21 146
LONG TERM LIABILITIES 6 782 3 289 3 789
DEFERRED TAXATION 606 606 606
52 359 18 441 25 141 EMPLOYMENT OF CAPITAL
FIXED ASSETS 31 479 11 366 15 642
SHARE INCENTIVE SCHEME - 107 -
NET CURRENT ASSETS 20 880 6 968 9 899
CURRENT ASSETS 90 727 31 775 49 664
CURRENT LIABILITIES 69 847 24 807 39 765
INTEREST BEARING 3 234 9 363 11 923
NON-INTEREST BEARING 31 377 15 444 27 842
VENDORS FOR ACQUISITION 35 236 - -
52 359 18 441 25 541
NET ASSET VALUE PER SHARE (CENTS) 116 132 132
TRANSPACO HAS PERFORMED WELL WITHIN EXPECTATIONS DESPITE HARSH TRADING CONDITIONS. DURING A PERIOD WHICH SAW INTEREST RATES SOAR, A LENGTHY CHEMICAL INDUSTRY STRIKE, WHICH COST TO GROUP AN ESTIMATED R1 500 000 AND A GENERAL DOWNTURN IN THE ECONOMY. TRANSPACO'S MANUFACTURING DIVISIONS AS A GROUP EXCELLED.
REVENUE FOR THE GROUP REACHED R86 066 000 COMPARED TO R40 139 000 FOR THE SAME PERIOD LAST YEAR. PROFIT BEFORE TAXATION WAS R9 057 000 COMPARED TO R1 608 000, WITH EARNINGS PER SHARE INCREASING BY 82% FROM 10,8 CENTS TO 19,7 CENTS. THE INTEREST BEARING DEBT EQUITY RATIO HAS REDUCED TO 22%.
THE BUSINESSES ACQUIRED IN THE CURRENT FINANCIAL PERIOD COUPLED WITH STEADY TRADING WITHIN EXISTING TRANSPACO OPERATIONS CONTRIBUTED TO THE GROWTH IN BOTH SALES AND EARNINGS. NEW ACQUISITIONS
THE NEW ACQUISITIONS, WHICH TOOK EFFECT FROM THE 01 APRIL 1998, HAVE BEEN ABSORBED INTO TRANSPACO WITH RELATIVE EASE.
THE GROUP IS NOW SPLIT INTO FOUR DISTINCT DIVISIONS: - FLEXIBLE PLASTICS - PLASTAFRICA/PRINTPLAST - RIGID PLASTICS -TERBO/PERANA/PLASTECH - RECYCLING - SILVERPACK/PE RECOVERIES - PACKAGING - TRANSPACO/T-WRAPS/FRAMEN/BUBBLEPAC FLEXIBLE PLASTICS
OUR FLEXIBLE PLASTICS DIVISION CONTINUES TO MAKE INROADS INTO THE RETAIL, LIGHT INDUSTRIAL, STATIONERY AND AGRICULTURAL MARKETS. PLASTAFRICA HAS SECURED CONTRACTS WITH MAJOR RETAIL CHAINS FOR THE SUPPLY OF CARRIER BAGS TO SEVERAL OF THEIR REGIONS. THE VERTICAL INTEGRATION BENEFITS WHICH EXIST WITH PRINTPLAST AND SILVERPACK ARE CLEARLY EVIDENT BY THE OUTSTANDING PERFORMANCE OF THOSE FACTORIES. FURTHER RATIONALISATION BENEFITS WILL BE TAKEN ADVANTAGE OF IN THE NEAR FUTURE. RIGID PLASTIC
THE RIGID PLASTICS DIVISION HAS PERFORMED PARTICULARLY WELL FOR THE PERIOD UNDER REVIEW. TERBO PLASTICS, WHICH PRODUCES RIGID PVC FOIL, CONTINUES TO EXPAND. THE NEED TO INCREASE CAPACITY AND OFFER ALTERNATIVE MATERIALS IS BEING ADDRESSED.
PLASTECH, WHICH PRODUCES HEAVY-DUTY PIPING, SPECIALISING IN THE MINING AND TELECOMMUNICATION INDUSTRIES IS CURRENTLY DEVELOPING PRODUCTS FOR AN
ALTERNATIVE APPLICATION AND MARKET. ONCE THIS PROJECT IS ON LINE IN 1999 IT SHOULD BENEFIT THAT DIVISION SUBSTANTIALLY. PERANA PLASTICS HAS CONSOLIDATED SEVERAL OF ITS OPERATIONS UNDER ONE ROOF AND HAS PRODUCED COMMENDABLE RESULTS FOR THE PERIOD. THE RIGID PACKAGING DIVISION'S PRODUCT RANGE AND DIVERSITY STRENGTHENS TRANSPACO'S PLASTICS CONVERSION POSITION BOTH LOCALLY AND INTERNATIONALLY. RECYCLING
SILVERPACK AND PE RECOVERIES HAVE BOTH PRODUCED EXCELLENT RESULTS. WITH POLYMER PRICES STABILISING, OPPORTUNITIES ARE CONTINUOUSLY ARISING.
THE GROUP'S ENTRY INTO THE RECYCLING BUSINESS HAS BEEN TIMEOUS AS SOUTH AFRICA BECOMES INCREASINGLY AWARE OF THE NEED TO RE-USE ITS RESOURCES. WE ARE WELL PLACED TO TAKE ADVANTAGE OF THIS SITUATION AS IT DEVELOPS IN THE FUTURE. PACKAGING
THE GROUP'S PACKAGING DIVISION COMPRISES TRANSPACO PACKAGING (INCLUDING T-WRAPS), FRAMEN PAPER AND BUBBLEPAC. FRAMEN HAS PRODUCED OUTSTANDING RESULTS WITH BUBBLEPAC DEVELOPING INTO A FINE GRASS ROOT BUSINESS. TRANSPACO PACKAGING RESULTS DID NOT COME UP TO EXPECTATIONS AS HIGH INTEREST RATES AND POOR TRADING CONDITIONS HAVE ADVERSELY AFFECTED THAT BUSINESS MORE THAN ANY OTHER. THE T-WRAPS FRANCHISING EXPANSION PROGRAM HAS ALSO BEEN HAMPERED BY THE INCREASE IN INTEREST RATES WITH POTENTIAL FRANCHISES ADOPTING A WAIT AND SEE ATTITUDE. CURRENT TRADING
TRADING FOR THE TWO MONTHS FOLLOWING THE REPORTING PERIOD HAS BEEN BUOYANT. TRANSPACO CONTINUES TO SEEK AREAS FOR EXPANSION WITHIN ITS MARKETS AND TO EXPLORE OPPORTUNITIES WHEN AVAILABLE PROVIDED THAT THEY FIT THE CRITERIA AND NEED OF THE GROUP. EARNINGS PER SHARE
ON A FULLY DILUTED BASIS OF 38,6 MILLION SHARES IN ISSUE THE EARNINGS PER SHARE FOR THE PERIOD WOULD BE 15,7 CENTS. THIS ASSUMES THAT ALL PROFIT WARRANTIES WILL BE MET AND THEREFORE THE FULL PURCHASE PRICES FOR THE NEW ACQUISITIONS WILL BE SATISFIED BY THE ISSUE OF THE APPROPRIATE NUMBERS OF SHARES. DIVIDENDS
NO INTERIM DIVIDEND HAS BEEN DECLARED, AS IT IS POLICY TO DECLARE ONLY ONE DIVIDEND AT YEAR-END.
ON BEHALF OF THE BOARD: S. ABELHEIM(CHAIRMAN), P. N. ABELHEIM(CE0)
A. J. AARON (NON EXECUTIVE), J. S. BOTHA, H. A. BOTHA, C. BOUZAGLOU, S. I JACOBSON (NON EXECUTIVE), E. ROVETTI, A. R. SHUB, C. VIDERGAUZ. DATE: 15 DECEMBER 1998
POSTAL ADDRESS: P. 0. BOX 1308, JOHANNESBURG, 2000.
REGISTERED ADDRESS: 9 BOOYSENS ROAD, STAFFORD TOWNSHIP.

Share This Story