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TRANSPACO LIMITED
AUDITED GROUP RESULTS AND DIVIDEND ANNOUNCEMENT FOR THE 15 MONTHS ENDED 30 JUNE
1999
ANNUALISED REVENUE UP 53%
ANNUALISED OPERATING INCOME UP 105%
ANNUALISED ATTRIBUTABLE INCOME 155%
ANNUALISED EARNINGS PER SHARE 28%
4 YEAR COMPOUND GROWTH E.P.S. 64%
CONSOLIDATED INCOME STATEMENT
15 MONTHS 12 MONTHS
JUNE 99 MARCH 99 MARCH 98
AUDITED REVIEWED AUDITED
R'000 R'000 R'000
REVENUE 222 751 177 356 116 767
OPERATING INCOME BEFORE FINANCE CHARGES 31 753 26 173 12 393
FINANCE CHARGES 3 888 2 980 2 881
INCOME BEFORE TAXATION 27 865 23 193 9 512
TAXATION 7 283 6 123 3 057
INCOME ATTRIBUTABLE TO SHAREHOLDERS 20 582 17 070 6 455
DIVIDEND 2 290 - -
RETAINED INCOME FOR THE PERIOD 18 292 17 070 6 455
NUMBER OF ORDINARY SHARES IN ISSUE (000'S) 32 711 32 711 16 000
EARNINGS PER SHARE (CENTS) 63 52 40
ANNUALISED EARNINGS PER SHARE (CENTS) 51 - -
DIVIDEND PER SHARE (CENTS) 7 - -
DIVIDEND COVER (TIMES) 7.3 - -
CONSOLIDATED BALANCE SHEET
JUNE 99 MARCH 99 MARCH 98
AUDITED REVIEWED AUDITED
R'000 R'000 R'000
CAPITAL EMPLOYED
SHAREHOLDERS INTEREST 43 785 42 564 21 146
LONG TERM LIABILITIES 8 877 5 783 3 789
DEFERRED TAXATION 337 892 606
52 999 49 239 25 541
EMPLOYMENT OF CAPITAL
FIXED ASSETS 41 793 35 109 15 641
NET CURRENT ASSETS 11 206 14 130 9 900
CURRENT ASSETS 65 553 69 310 49 665
STOCK 25 643 20 328 16 730
ACCOUNTS RECEIVABLE 39 873 47 997 32 105
CASH RESOURCES 37 985 830
CURRENT LIABILITIES 54 347 55 180 39 765
INTEREST BEARING 20 727 16 929 11 923
NON INTEREST BEARING 33 620 38 251 27 842
52 999 49 239 25 541
NET ASSET VALUE PER SHARE (CENTS) 134 130 132
ABRIDGED CONSOLIDATED CASH FLOW
JUNE 99 MARCH 98
AUDITED AUDITED
R'000 R'000
CASH GENERATED FROM OPERATIONS 18 525 6 233
NET INTEREST PAID (3 122) (2 881)
TAXATION PAID (4 017) (2 292)
CASH RETAINED FROM OPERATING ACTIVITIES 11 386 1 060
NET INFLOW FROM FINANCING ACTIVITIES 9 998 2 379
NET FIXED ASSETS ACQUIRED (30 461) (6 154)
(9 077) (2 715)
NET CASH RESOURCES AT BEGINNING OF PERIOD (10 052) (7 337)
NET CASH RESOURCES AT END OF PERIOD (19 129) (10 052)
FIVE YEAR HISTORY ANNUALISED
JUNE MARCH MARCH MARCH MARCH
1999 1998 1997 1996 1995
R'000 R'000 R'000 R'000 R'000
REVENUE 178201 116767 74935 68654 53646
OPERATING INCOME 25402 12393 5179 3847 2250
ATTRIBUTABLE INCOME 16466 6455 2103 1649 732
EARNINGS PER SHARE (CENTS) 51 40 20 15 7
STATISTICAL INFORMATION 1999 1998 1997 1996 1995
INTEREST PAID (R'000) 3888 2881 2076 1602 1234
INTEREST COVER 8,17 4,30 2,50 2,48 1,82
INTEREST BEARING
DEBT/EQUITY RATIO (%) 67 75 86 76 100
SHARES IN ISSUE (MILLION) 32,7 16,0 11,0 11,0 11,0
NET ASSET VALUE PER SHARE (CENTS)134 132 121 102 72
SHAREHOLDERS INTEREST (R'000) 43785 21146 13358 11255 7918
COMMENTARY
PROFILE OF THE BUSINESS
TRANSPACO IS A MANUFACTURING AND DISTRIBUTION COMPANY, OPERATING EXTENSIVELY IN
THE PLASTIC AND PACKAGING INDUSTRIES. THE GROUPS EMPHASIS IS IN:-
- PACKAGING FOR THE RETAIL, INDUSTRIAL, AGRICULTURAL AND MINING SECTORS
- SCHOLASTIC AND OFFICE STATIONERY
- PLASTIC RECLAMATION AND RECYCLING
- INJECTION MOULDING
- VACUUM-FORMING
- PLASTIC FABRICATION.
TRANSPACO OPERATES FROM TEN MANUFACTURING SITES, DISTRIBUTING NATIONALLY
THROUGH ITS OWN OUTLETS AND INDEPENDENT COMPANIES. ITS CUSTOMER BASE EXTENDS
OVER ALL SECTORS OF THE ECONOMY.
CHANGE IN YEAR-END
THE YEAR-END HAS BEEN CHANGED FROM 31 MARCH TO 30 JUNE. ACCORDINGLY,
TRANSPACO'S RESULTS ARE FOR A 15 MONTH PERIOD ENDING 30 JUNE 1999.
FINANCIAL RESULTS
THE OUTSTANDING RESULTS ACHIEVED BY TRANSPACO ILLUSTRATE ITS ABILITY TO EXCEL
UNDER EXTREMELY HARSH CONDITIONS. DESPITE HIGH INTEREST RATES, UNPRECEDENTED
NATIONAL INDUSTRIAL UNREST IN THE PLASTIC INDUSTRY AND RECESSIONARY ECONOMIC
CONDITIONS, TRANSPACO'S EPS FOR THE 15 MONTH PERIOD ARE 63 CENTS BASED ON 32.7
MILLION SHARES.
THE ANNUALISED EPS EQUATE TO 51 CENTS, REPRESENTING A 28% INCREASE ON LAST
YEAR. ANNUALISED GROUP REVENUE AND OPERATING INCOME, BEFORE FINANCE COSTS,
INCREASED FROM R116,8 MILLION TO R178,2 MILLION AND FROM R12,4 MILLION TO R25,4
MILLION RESPECTIVELY. ANNUALISED INCOME ATTRIBUTABLE TO SHAREHOLDERS INCREASED
BY 155% FROM R6,4 MILLION TO R16,5 MILLION.
THE GROUP'S NEW CARRIER BAG PRODUCTION FACILITY CAME ON LINE WITH EFFECT FROM 1
JULY 1999. THE RELEVANT INTEREST-BEARING LIABILITIES HAVE BEEN INCLUDED. THIS
AFFECTED THE DEBT / EQUITY RATIO, WHICH, NEVERTHELESS, IMPROVED FROM 75% TO
67%. INTEREST COVER ALSO IMPROVED FROM 4,30 TIMES TO 8,17 TIMES. THE TREND IN
IMPROVEMENT OF THESE RATIOS IS EXPECTED TO CONTINUE.
REVIEW OF THE DIVISIONS
ALL DIVISIONS TRADED PROFITABLY AND CONTRIBUTED TO GROUP EARNINGS.
DIVISIONAL CONTRIBUTION TO REVENUE & OPERATING INCOME
REVENUE OPERATING
% INCOME %
RIGID 30,4 41,6
RECYCLING 14,4 21,7
FLEXIBLE 27,4 21,4
PACKAGING 28,1 15,3
PROSPECTS
SIGNIFICANT NEW CONTRACTS HAVE BEEN SECURED BY THE FLEXIBLE PLASTICS DIVISION
WITH SEVERAL NATIONAL CHAINS IN THE CARRIER BAG MARKET. NEW PRODUCTION
FACILITIES HAVE BEEN ESTABLISHED TO MEET THE INCREASE IN DEMAND.
MANAGEMENT REMAINS CONFIDENT THAT REAL GROWTH WILL BE ACHIEVED IN THE
FORTHCOMING YEAR. TRANSPACO CONTINUES TO BE COMMITTED TO THE EXPANSION OF ITS
EXISTING OPERATIONS AND TO THE IDENTIFICATION AND ACQUISITION OF BUSINESSES
THAT FULFIL THE GROUP'S STRATEGIC GROWTH OBJECTIVES.
YEAR 2000 COMPLIANCE
THE MILLENNIUM DATE CHANGE IS NOT EXPECTED TO PRESENT ANY MATERIAL OPERATING
DIFFICULTIES. ALL SUBSIDIARIES HAVE BEEN ASSESSED AND WHERE NECESSARY
COMPLIANCE UPGRADES HAVE TAKEN PLACE. NO MATERIAL COSTS HAVE BEEN INCURRED.
REDUCTION IN SHARE PREMIUM
THE SHARE PREMIUM ACCOUNT OF THE COMPANY HAS BEEN REDUCED BY R80 182 147.31
FROM R88 152 597.87 TO R7 970 450.56, BY WRITING OFF GOODWILL.
DIVIDEND DECLARATION
NOTICE IS HEREBY GIVEN THAT AN ORDINARY DIVIDEND OF 7 CENTS PER SHARE HAS BEEN
DECLARED PAYABLE TO HOLDERS OF ORDINARY SHARES REGISTERED IN THE BOOKS OF THE
COMPANY AT THE CLOSE OF BUSINESS ON 17 SEPTEMBER 1999.
PAYMENT OF THE DIVIDEND WILL BE POSTED ON OR ABOUT 7 OCTOBER 1999.
THE TRANSFER BOOKS AND REGISTER OF MEMBERS WILL BE CLOSED FROM 20 SEPTEMBER
1999 TO 1 OCTOBER 1999, BOTH DAYS INCLUSIVE.
ON BEHALF OF THE BOARD:
S ABELHEIM (EXECUTIVE CHAIRMAN)
P ABELHEIM (CHIEF EXECUTIVE OFFICER)
SANDTON
30 AUGUST 1999
DIRECTORS:
S ABELHEIM (EXECUTIVE CHAIRMAN), P ABELHEIM (CHIEF EXECUTIVE OFFICER), A
AARON*, H BOTHA, K BOTHA, C BOUZAGLOU, D HILEWITZ*, S JACOBSON*, E ROVETTI, A
SHUB, C VIDERGAUZ
* NON-EXECUTIVE
DIVISIONAL DIRECTORS:
S HARMSE, K HARRIS, L O'NEILL, C PHINN, A NORRIS, C TAYLOR
AUDITORS:
ERNST & YOUNG
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