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BOWLER METCALF LIMITED - AUDITED RESULTS

Release Date: 03/03/1999 07:56
Code(s): BCF BFN
Wrap Text
EARNINGS PER SHARE        + 18%
DIVIDENDS PER SHARE       + 21%
TURNOVER                  + 12%
10 YEAR EPS GROWTH RATE 31%
EPS GROWTH COMPARISONS:
1 YEAR VERSUS PACKAGING SECTOR - 350% BETTER
5 YEARS VERSUS PACKAGING SECTOR - 57% BETTER

AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 1998
INCOME 1998 1997
STATEMENT R000'S R000'S
TURNOVER 64,971 57,989
TRADING INCOME 22,228 19,495
DEPRECIATION (4,581) (3,561)
INTEREST AND FINANCE CHARGES (2,058) (2,888)
NET INCOME BEFORE TAXATION 15,589 13,046
TAXATION 5,182 4,285
ATTRIBUTABLE INCOME 10,407 8,761
NO. OF SHARES 86,454 M 85,652M
EARNINGS/SHARE 12.04 C 10.23 C
HEADLINE EARNINGS/SHARE 12.04 C 10.23 C
DIVIDEND/SHARE 4.00 C 3.30 C
BALANCE 1998 1997
SHEET R000'S R000'S
CAPITAL 10,585 10,585
RESERVES 31,397 22,892
SHAREHOLDERS' FUNDS 41,982 33,477
DEFERRED TAX 4 587 3,000
LONG TERM LIABILITIES 8,498 9,753
55,067 46,230 REPRESENTED BY:
FIXED ASSETS 48,490 38,579
NET CURR. ASSETS 6,577 7,651
CURRENT ASSETS 17,556 17,874
CURRENT LIABILITIES 10,979 10,223
55,067 46,230
COMMENT: AS PERFORMANCE IS MEASURED BY COMPARISONS, BOWLER METCALF HAS AGAIN DISPLAYED STRONG GROWTH IN A YEAR ACKNOWLEDGED AS THE MOST DIFFICULT IN THE LAST DECADE FOR THE PACKAGING INDUSTRY. OUR 18% INCREASE IN EARNINGS PER SHARE IS 350% BETTER THAN THE SECTOR AVERAGE WHILE OUR 12% TURNOVER INCREASE MUST BE VIEWED AGAINST THE ZERO GROWTH IN PRIVATE CONSUMPTION EXPENDITURE. AS
PREDICTED, THE SECOND HALF YEAR WAS TOUGHER AND RESULTS WERE FURTHER
SIGNIFICANTLY ERODED BY A STRIKE IN JULY/AUGUST EFFECTING BOTH OURSELVES AND OUR CUSTOMERS, AND A MARKED INCREASE IN BAD DEBTS, DRIVEN BY HIGH INTEREST RATES AND THE GENERAL ECONOMIC DOWNTURN. OUR BAD DEBT PROVISIONS ARE ADEQUATE. FIXED ASSETS TO THE VALUE OF R15 MILLION WERE PURCHASED AND FINANCED THROUGH OUR OWN RESOURCES, INCLUDING R7 MILLION ON A NEW TECHNOLOGY SQUEEZE TUBE PLANT, UNIQUE TO SOUTH AFRICA, WHICH WILL PENETRATE THE MARKET DURING 1999. THESE PURCHASES INCREASED THE DEPRECIATION BILL BY 27% BUT A STRONG CASH FLOW HELPED TO REDUCE INTEREST CHARGES BY 29% AND DECREASE LONG-TERM LIABILITIES BY 13%. SHAREHOLDERS' FUNDS SHOW AN INCREASE OF 25% TO R42 MILLION.
ALL DIVISIONS OPERATED SMOOTHLY, MAKING A CONTRIBUTION TO GROUP PROFITS, NOTABLY BOWLER PET (PTY) LTD IN THE FACE OF HOSTILE COMPETITION IN THE SOFT DRINK MARKET. CONSIDERING THE TRYING CIRCUMSTANCES, I AM EXTREMELY PROUD THAT BOWLER METCALF HAS FOR THE TWELFTH STRAIGHT YEAR, AGAIN DEMONSTRATED THE ABILITY TO PRODUCE MEANINGFUL EARNINGS PER SHARE GROWTH, A TESTAMENT TO OUR STRONG MANAGEMENT AND CAPABLE STAFF.
TWO FAVOURABLE LONG-TERM CONTRACTS WERE SIGNED DURING THE YEAR AS PART OF OUR POLICY OF SEAMLESS INTEGRATION INTO THE SUPPLY CHAIN OF OUR CUSTOMERS. PRODUCTION CAPACITY IS ADEQUATE SO THE 1999 CAPITAL EXPENDITURE WILL BE MINIMAL. THIS WILL BE AN INDUSTRY WIDE PHENOMENA AND HELP TO EASE THE NATIONAL OVER CAPACITY PROBLEMS, TO THE BENEFIT OF ALL. I BELIEVE 1999 WILL BE A WATERSHED YEAR FOR THE INDUSTRY WITH RATIONALIZATION AND THE ABSORPTION OF THE WEAKER PLAYERS. BASED ON OUR START TO THE YEAR AND OUR MEDIUM AND LONG-TERM PLANS, I BELIEVE THAT BOWLER METCALF WILL HAVE A SIGNIFICANT ROLE TO PLAY. DIVIDEND DECLARATION: THE BOARD OF DIRECTORS HAVE DECLARED A FINAL DIVIDEND OF 2.25 CENTS PER SHARE PAYABLE TO SHAREHOLDERS, OF BOTH ORDINARY AND "N" ORDINARY SHARES, REGISTERED IN THE BOOKS OF THE COMPANY AT THE CLOSE OF BUSINESS ON THURSDAY, 1 APRIL 1999 FOR PAYMENT ON 21 APRIL 1999. FOR AND ON BEHALF OF THE BOARD H.W. SASS (CHAIRMAN) 23 FEBRUARY 1999 HARRIS DRIVE, OTTERY, CAPE 7800 REG NO 72/05921/06
DIRECTORS: H. W. SASS (CHAIRMAN) M. BRAIN (MANAGING) B. W. DOYLE, B. J. FROST (NON-EXECUTIVE) M. A. OLDS (BRITISH), P. F. SASS

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