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TRANSPACO LIMITED REG.NO. 51/00799/06
GROUP RESULTS AND DIVIDEND ANNOUNCEMENT FOR THE 6 MONTHS ENDED 31 DECEMBER 1999 PROFILE OF THE BUSINESS
TRANSPACO IS A MANUFACTURING AND DISTRIBUTION GROUP, OPERATING EXTENSIVELY IN THE PLASTIC AND PACKAGING INDUSTRIES. THE GROUP'S 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 11 MANUFACTURING SITES, DISTRIBUTING NATIONALLY THROUGH ITS OWN OUTLETS AND INDEPENDENT COMPANIES. ITS CUSTOMER BASE EXTENDS OVER ALL SECTORS OF THE ECONOMY. FINANCIAL RESULTS
FOR THE 6 MONTH UNDER REVIEW EARNINGS PER SHARE INCREASED BY 31% TO 28,7C. THE GROUP HAS ACHIEVED PARTICULARLY PLEASING RESULTS AGAINST A BACKDROP OF DIFFICULT TRADING CONDITIONS IN THE PLASTIC INDUSTRY EXACERBATED BY
UNPRECEDENTED RAW MATERIAL PRICE INCREASES AND THE INFLOW OF IMPORTED PLASTIC PRODUCTS FROM THE EAST.
THE INCREASE IN LONG TERM LIABILITIES REFERS PRIMARILY TO THE INVESTMENT IN THE NEW CARRIER BAG FACTORY ESTABLISHED NEAR BRONKHORSTSPRUIT. THE GEARING OF THE GROUP IS AT ITS PEAK IN DECEMBER EACH YEAR. SALE OF BUBBLE PAC DIVISION
AS ANNOUNCED IN THE PRESS ON 04 FEBRUARY 2000, TRANSPACO HAS SOLD ITS BUBBLE PAC DIVISION TO SEALED AIR AFRICA (PTY) LTD. ON THE FULFILMENT OF CERTAIN CONDITIONS, THE COMPANY WILL RECEIVE IN CASH, R18 MILLION FOR THE BUSINESS OF BUBBLE PAC.
HAD THE TRANSACTION BEEN CONCLUDED AT 31 DECEMBER 1999, THE POSITIVE PROFORMA EFFECT ON TRANSPACO IS DEMONSTRATED AS FOLLOWS:
PER DEC 1999 PROFORMA 1999 * SHAREHOLDERS' INTEREST (R000) 51 553 66 853 * TANGIBLE NET ASSET VALUE PER SHARE
(CENTS) 158 204
* NET CURRENT ASSETS (R000) 14 545 29 845
* CURRENT RATIO 1.18:1 1.45:1
* INTEREST-BEARING DEBT EQUITY RATIO (%) 77 36 PROSPECTS
TO SATISFY INCREASED DEMAND IN THE RETAIL CARRIER MARKET, THE FLEXIBLE DIVISION HAS ESTABLISHED A NEW FACILITY NEAR BRONKHORSTSPRUIT WHICH HAS SIGNIFICANTLY INCREASED ITS PRODUCTION CAPACITY. FRAMEN PAPER AND TERBO PLASTICS HAVE BOTH PURCHASED NEW PLANT THEREBY INCREASING THEIR CAPACITY TO SATISFY INCREASING DEMAND FOR THEIR PRODUCTS. THE RECYCLING DIVISION HAS ESTABLISHED NEW EXPORT MARKETS IN AFRICA AND ADDITIONAL PRODUCTION FACILITIES WILL BE INSTALLED IN THE NEXT FEW MONTHS. CONSIDERING THESE FACTORS, COUPLED WITH THE IMPACT OF THE CASH INJECTION FROM THE BUBBLE PAC SALE AND THE LOWER INTEREST RATES DRIVING CONSUMER SPENDING, YOUR DIRECTORS ARE CONFIDENT THAT TRANSPACO WILL ACHIEVE REAL GROWTH FOR THE 2000 FINANCIAL YEAR. DIVIDEND DECLARATION
NOTICE IS HEREBY GIVEN THAT AN INTERIM ORDINARY DIVIDEND OF 5 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 24 MARCH 2000. PAYMENT OF THE DIVIDEND WILL BE POSTED ON OR ABOUT 17 APRIL 2000. THE TRANSFER BOOKS AND REGISTER OF MEMBERS WILL BE CLOSED FROM 27 MARCH 2000 TO 7 APRIL 2000, BOTH DAYS INCLUSIVE. ON BEHALF OF THE BOARD: S ABELHEIM (EXECUTIVE CHAIRMAN) P ABELHEIM (CHIEF EXECUTIVE) 8 MARCH 2000
OTHER DIRECTORS: 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 COMPANY SECRETARY: SL CHAITEL AUDITORS: ERNST & YOUNG CONSOLIDATED INCOME STATEMENT
6 MONTHS 6 MONTHS 15 MONTHS DEC 99 DEC 98 JUNE 99 UNAUDITED UNAUDITED AUDITED R'000 R'000 R'000 TURNOVER 120 041 92 759 222 751 OPERATING INCOME 17 988 13 422 35 898 DEPRECIATION 2 503 1 611 4 145 FINANCE CHARGES 2 765 1 478 3 888 INCOME BEFORE TAXATION 12 720 10 333 27 865 TAXATION 3 317 3 203 7 283 INCOME ATTRIBUTABLE TO SHAREHOLDERS 9 403 7 130 20 582 DIVIDEND 1 635 - 2 290 RETAINED INCOME FOR THE PERIOD 7 768 7 130 18 292 NUMBER OF ORDINARY
SHARES IN ISSUE (000'S) 32 711 32 711 32 711 EARNINGS PER SHARE (CENTS) 28.7 21.8 63 ANNUALISED EARNINGS PER SHARE
JUNE 99 ONLY (CENTS) 51
DIVIDEND PER SHARE (CENTS) 5 - 7
DIVIDEND COVER (TIMES) 5.7 - 7.3 CONSOLIDATED BALANCE SHEET
DEC 99 DEC 98 JUNE 99 UNAUDITED UNAUDITED AUDITED R'000 R'000 R'000 CAPITAL EMPLOYED
SHAREHOLDERS' INTEREST 51 553 49 005 43 785 LONG TERM LIABILITIES 16 665 6 004 8 877 DEFERRED TAXATION 380 606 337
68 598 55 615 52 999 EMPLOYMENT OF CAPITAL
FIXED ASSETS 54 053 33 297 41 793 NET CURRENT ASSETS 14 545 22 318 11 206 CURRENT ASSETS 95 011 66 103 65 553 STOCK 25 793 16 279 25 643 ACCOUNTS RECEIVABLE 69 181 49 787 39 873 CASH RESOURCES 37 37 37
CURRENT LIABILITIES 80 466 43 785 54 347 INTEREST BEARING 23 047 17 010 20 727 BANK 20 069 15 950 19 166 CURRENT PORTION OF LONG TERM
LIABILITIES 2 978 1 060 1 561 NON INTEREST BEARING 57 419 26 775 33 620 68 598 55 615 52 999 NET ASSET VALUE PER SHARE (CENTS) 158 150 134 TANGIBLE NET ASSET VALUE PER SHARE
(CENTS) 158 120 134 ABRIDGED CONSOLIDATED CASH FLOW
DEC 99 JUNE 99 UNAUDITED AUDITED R'000 R'000 OPERATING CASH FLOW 17 988 36 020 MOVEMENT IN WORKING CAPITAL (3 000) (16 729) NET INTEREST PAID (2 765) (3 888) TAXATION PAID (5 241) (4 017) DIVIDEND PAID (2 290) - CASH GENERATED FROM
OPERATING ACTIVITIES 4 692 11 386 NET INFLOW FROM FINANCING ACTIVITIES 9 168 9 998 NET FIXED ASSETS ACQUIRED (14 763) (30 461) (903) (9 077) NET CASH RESOURCES AT
BEGINNING OF PERIOD (19 129) (10 052) NET CASH RESOURCES AT END OF PERIOD (20 032) (19 129) STATEMENT OF CHANGES IN EQUITY
6 MONTHS 15 MONTHS DEC 99 JUNE 99 R'000 R'000 OPENING BALANCE 43 785 21 147 EARNINGS ATTRIBUTABLE TO SHAREHOLDERS 9 403 20 582 ISSUE OF SHARE CAPITAL AND SHARE PREMIUM - 4 387 ACCUMULATED LOSS ACQUIRED
ON ACQUISITION OF SUBSIDIARY - (41)
DIVIDEND PAID (1 635) (2 290) CLOSING BALANCE 51 553 43 785
