Sharenet Sites 
Sharenet Sites
ARGENT INDUSTRIAL LIMITED REG NO 93/02054/06
FINAL AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2000 REVENUE 1% ATTRIBUTABLE EARNINGS 6% HEADLINE EARNINGS PER SHARE 6% ABRIDGED CONSOLIDATED INCOME STATEMENT FOR THE TWELVE MONTHS ENDED 31 MARCH 2000
YEAR ENDED YEAR ENDED 31 MARCH 31 MARCH 2000 1999 R000
REVENUE 213 575 210 077 OPERATING INCOME BEFORE FINANCE CHARGES 19 666 18 903 NET FINANCE CHARGES 4 816 2 830
NET INCOME BEFORE TAXATION 14 850 16 073 TAXATION 665 2 418
NET INCOME AFTER TAXATION 14 185 13 655 EARNINGS ATTRIBUTABLE TO OUTSIDE SHAREHOLDERS 182 456
EARNINGS ATTRIBUTABLE TO ORDINARY SHAREHOLDERS 14 003 13 199 EARNINGS PER SHARE (CENTS) 35,6 33,5*
HEADLINE EARNINGS PER SHARE (CENTS) 37,8 35,6*
DIVIDENDS PER SHARE (CENTS) 12,0 20,0*
SHARES IN ISSUE (000) 39 311 39 311* *ADJUSTED FOR SHARE CONSOLIDATION OF ONE FOR FIVE SHARES THAT TOOK PLACE DURING THE 2000 FINANCIAL YEAR.
ABRIDGED CONSOLIDATED CASH FLOW STATEMENT FOR THE TWELVE MONTHS ENDED 31 MARCH 2000
YEAR ENDED YEAR ENDED 31 MARCH 31 MARCH 2000 1999 R000
CASH GENERATED FROM OPERATIONS 25 384 21 322 INTEREST PAID (7 663) (8 716) INTEREST RECEIVED 2 847 5 886
DIVIDENDS PAID (7 862) (7 862) TAXATION PAID (628) (2 446) CASH FLOWS FROM OPERATING ACTIVITIES 12 078 8 184
CASH FLOWS FROM INVESTING ACTIVITIES (18 235) (10 787) CASH FLOWS FROM FINANCING ACTIVITIES (495) (14 616) NET DECREASE IN CASH AND CASH EQUIVALENTS (6 652) (17 219) CASH AND CASH EQUIVALENTS AT THE BEGINNING
OF PERIOD 6 248 23 467 CASH AND CASH EQUIVALENTS AT THE END OF PERIOD (404) 6 248 ABRIDGED CONSOLIDATED BALANCE SHEET FOR THE TWELVE MONTHS ENDED 31 MARCH 2000
YEAR ENDED YEAR ENDED 31 MARCH 31 MARCH 2000 1999 R000 ASSETS
NON -CURRENT ASSETS 97 473 89 745 PROPERTY, PLANT AND EQUIPMENT 97 473 89 745 CURRENT ASSETS 89 226 94 083 INVENTORIES 36 975 35 550 DEBTORS 52 251 52 285 BANK BALANCE AND CASH - 6 248
TOTAL ASSETS 186 699 183 828 EQUITY AND LIABILITIES
CAPITAL AND RESERVES 108 798 103 338 SHARE CAPITAL AND PREMIUM 1 966 1 966
RESERVES 31 267 35 093 ACCUMULATED PROFITS 75 565 66 279 MINORITY INTEREST 4 662 4 480
NON -CURRENT LIABILITIES 23 365 23 082 LONG-TERM LIABILITES 21 344 20 530 DEFERRED TAXATION 2 021 2 552
CURRENT LIABILITIES 49 874 52 928 CREDITORS 42 539 42 696 CURRENT PORTION OF LONG-TERM LIABILITIES 5 040 5 764
TAXATION 1 105 537
BANK OVERDRAFT 404 -
DIVIDEND PROPOSED 786 3 931
TOTAL EQUITY AND LIABILITIES 186 699 183 828 NET ASSET VALUE PER SHARE (CENTS) 276,8 262,9 COMMENTS
THE GROUP'S ATTRIBUTABLE EARNINGS INCREASED BY 6% TO R14 MILLION FOR THE PERIOD UNDER REVIEW (1999 - R13,2 MILLION) WITH HEADLINE EARNINGS PER SHARE INCREASING BY 6% TO 37,8 CENTS PER SHARE OVER THE SAME PERIOD (1999 - 35,6 CENTS). THE GROUP CONTINUED TO SHOW ITS RESILIENCE TO THE ECONOMIC CYCLES AND MAINTAINED ITS RETURN ON SHAREHOLDERS EQUITY OF 13%. 1999 - 2000 OVERVIEW OF OPERATING ACTIVITIES STEEL AND STEEL PROCESSING
THE STEEL TRADING AND STEEL PROCESSING COMPANIES HAD A REASONABLE YEAR. PHOENIX GAUTENG FOUND THE FIRST SEVEN MONTHS OF THIS FINANCIAL YEAR TO BE SOMEWHAT DEPRESSED, HOWEVER, THE REMAINING FIVE MONTHS SAW AN IMPROVEMENT IN BOTH TURNOVER AND MARGIN. PHOENIX STEEL-NATAL PERFORMED VERY WELL AND IS CURRENTLY EXPANDING THE SIZE OF ITS PINETOWN WAREHOUSE WHICH WILL ENABLE IT TO SERVICE THE DURBAN MARKET MORE EFFECTIVELY. PHOENIX STEEL-NATAL HAS OPENED AN OUTLET IN EMPANGENI TO SERVICE THE EMPANGENI, RICHARDS BAY AND NORTHERN NATAL AREA. KOCH'S CUT AND SUPPLY STEEL CENTRE MAINTAINED ITS GOOD PERFORMANCE DURING THE YEAR AND WILL CONTINUE TO DO SO IN THE FORTH COMING YEAR. FABRICATION
THE STEEL FABRICATION COMPANIES HAD A GOOD YEAR. HENDOR MINING SUPPLIES PERFORMED WELL DURING THE YEAR, MAINTAINING BOTH ITS MARGINS AND MARKET SHARE. THE INCREASED WORLD PLATINUM PRICE AND THE RESULTANT INCREASE IN THE PLATINUM MINING OPERATIONS WILL BE BENEFICIAL TO HENDOR'S BUSINESS PROSPECTS. BAVARIAN METAL INDUSTRIES, MANUFACTURER OF HEAVY DUTY TIPPER TRUCKS HAD A DIFFICULT YEAR DUE TO THE DEPRESSED CONSTRUCTION INDUSTRY. THE COMPANY HAS NOW MOVED TO BENONI AND IS CURRENTLY EXPANDING INTO MATERIALS HANDLING RELATED FABRICATION. THE CLOSE PROXIMITY TO HENDOR MINING SUPPLIES, PHOENIX STEEL-GAUTENG AND BARKER FLYNN & ASSOCIATES WILL ENABLE BAVARIAN METAL INDUSTRIES TO ACCOMMODATE THE GROUP'S IN-HOUSE FABRICATION AND STEEL SERVICE CENTRE NEEDS. PRECISION ENGINEERING
THE GROUP'S ENGINEERING COMPANIES HAD A SATISFACTORY YEAR. GIFLO ENGINEERING, WHO SPECIALISES IN THE MANUFACTURING OF SPECIALISED TUBULAR TYPE COMPONENTS FOR THE MOTOR INDUSTRY SECURED FAIRLY LARGE CONTRACTS WITH SAMCOR, MERCEDEZ BENZ AND BMW DURING THE YEAR. GIFLO SHOULD BE ONE OF THE GROUP'S STRONGEST
PERFORMERS IN THE FORTHCOMING FINANCIAL YEAR. GIFLO PRODUCTS ARE CURRENTLY ALSO EXPORTED VIA CERTAIN OF THE MOTOR MANUFACTURERS TO BRAZIL AND THE UNITED KINGDOM. NWN AUTOMOTIVE PRECISION ENGINEERING HAD A SECOND CONSECUTIVE DISAPPOINTING YEAR WHICH WAS ATTRIBUTABLE TO THE COMPANY BEING SITUATED IN LADYSMITH. ITS MOVE FROM LADYSMITH TO PINETOWN HAS ALREADY PRODUCED BETTER THAN EXPECTED RESULTS AND WILL CONTRIBUTE POSITIVELY IN THE 2001 FINANCIAL YEAR. NEW JOULES NORTH AMERICA HAS NOW COMPLETED ITS FIRST FULL YEAR OF MANUFACTURING IN AMERICA. THE RAILWAY RETARDER MARKET WAS UNUSUALLY QUIET DURING THE YEAR RESULTING IN SOMEWHAT DISAPPOINTING RESULTS. WE DID HOWEVER USE THE OPPORTUNITY TO ENTER THE GENERAL ENGINEERING MARKET WHICH HAS REDUCED OUR RELIANCE ON THE RAILROAD INDUSTRY. THE RETARDER MARKET IS HOWEVER SHOWING SIGNS OF IMPROVING AND COUPLED WITH OUR GENERAL ENGINEERING CAPABILITY WILL STRENGTHEN OUR PRESENCE IN THE UNITED STATES. MATERIALS HANDLING
THE PROJECT MANAGEMENT COMPANIES PERFORMED WELL DURING THE YEAR AND ARE POISED TO MAKE A REASONABLE CONTRIBUTION TO THE GROUP IN THE NEXT FINANCIAL YEAR. BARKER FLYNN HAS SECURED A SIZEABLE CONTRACT FROM HUMBOLDT WEDAG SOUTH AFRICA TO INSTALL A JIGGING PLANT IN BEESHOEK, THIS CONTRACT WILL RUN UNTIL APRIL 2001. WE HAVE A NUMBER OF TENDERS IN THE MARKET AND MORE THAN SUFFICIENT WORK ON HAND TO SEE THE FOLLOWING YEAR OUT. THE EXPANSION OF BAVARIAN METAL INDUSTRIES WILL INCLUDE A FABRICATION FACILITY WHICH WILL GIVE BARKER FLYNN AN IN-HOUSE FABRICATOR WHICH WILL ENHANCE THEIR ABILITY TO COMPETE IN THE MARKET. SOLIFLO AN IMPORTER OF VARIOUS MATERIAL HANDLING EQUIPMENT IMPROVED ON LAST YEARS RESULTS BUT IS UNDER PRESSURE FROM THE RAND/DOLLAR EXCHANGE RATE. CONCRETE AND STONE
MEGAMIX AND VILLIERSDORP QUARRIES HAD A SATISFACTORY YEAR, NOTWITHSTANDING THE DEPRESSED CONSTRUCTION INDUSTRY EXPERIENCED IN THE WESTERN CAPE. THE TWO COMPANIES HAD MULTIFARIOUS ISSUES WHICH HAVE NOW BEEN OVER COME. BOTH THE COMPANIES ARE NOW MORE COMPETITIVE AND BETTER SERVICE RELATED THAN THE OTHER LARGER PLAYERS IN THE AREA. WE ARE CONFIDENT THAT THE CURRENT UPSWING IN THE WESTERN CAPE CONSTRUCTION MARKET WILL CONTRIBUTE TO THEIR TURNOVER LEVELS IN THE 2001 FINANCIAL YEAR. PROSPECTS
THE ARGENT INDUSTRIAL GROUP IS WELL POSITIONED TO MAKE THE MOST OF THE NEW MILLENNIUM. OUR CORE BUSINESSES ARE ALL DOING WELL AND WITH THE CHANGES MADE TO SOME OF OUR SMALLER COMPANIES PUTS THE GROUP IN A STRONG POSITION TO EXPAND. DIVIDEND POLICY
DURING THE PERIOD UNDER REVIEW THE GROUP CHANGED ITS DIVIDEND POLICY. THE EXISTING DIVIDEND POLICY OF 20 CENTS PER SHARE PER YEAR HAS LIMITED THE GROUP'S ABILITY TO GROW AND IT HAS THEREFORE BEEN CHANGED TO ONE THIRD OF THE GROUP'S EARNINGS. THE DIVIDEND WILL STILL BE PAID EVERY SIX MONTHS. DIVIDEND
NOTICE IS HEREBY GIVEN THAT DIVIDEND NUMBER 10, OF 2 CENTS PER SHARE HAS BEEN DECLARED PAYABLE TO SHAREHOLDERS REGISTERED IN THE BOOKS OF THE COMPANY AT CLOSE OF BUSINESS ON FRIDAY, 25 AUGUST 2000. DIVIDEND CHEQUES WILL BE POSTED ON OR ABOUT 22 SEPTEMBER 2000. SHARE RE-RATING
ARGENT IS PLEASED TO ANNOUNCE THAT THE MAJORITY SHAREHOLDERS OF SCHARRIGHUISEN HOLDINGS LIMITED HAVE AGREED THAT ARGENT INITIATE THE UNBUNDLING OF
SCHARRIGHUISEN HOLDINGS LIMITED. THE NECESSARY DOCUMENTATION IS CURRENTLY BEING PREPARED AND SCHARRIGHUISEN HOLDINGS SHAREHOLDERS WILL BE ASKED TO VOTE ON THE PROPOSAL IN DUE COURSE.
THE PROPOSED UNBUNDLING OF SCHARRIGHUISEN HOLDINGS LIMITED WILL PROVIDE ARGENT WITH ITS AUTONOMY AND SHOULD GIVE THE GROUP A MUCH DESERVED RE-RATING. ON BEHALF OF THE BOARD
T.R. HENDRY CA (SA) GERMISTON MANAGING DIRECTOR 28 JUNE 2000 REGISTERED ADDRESS: 13 JACK PIENAAR STREET GERMISTON SOUTH EXTENSION 7 GERMISTON 1411 (PO BOX 14461, WADEVILLE 1422) AUDITORS: ATTORNEYS: TRANSFER SECRETARIES: COMPUTERSHARE (PTY) LTD 4TH FLOOR EDURA HOUSE 41 FOX STREET JOHANNESBURG, 2001 (PO BOX 62391, MARSHALLTOWN, 2107) (AS FROM 1 JULY 2000) ULTRA REGISTRARS GROUND FLOOR 11 DIAGONAL STREET JOHANNESBURG, 2001 (PO BOX 4844, JOHANNESBURG 2000) DIRECTORS: T. SCHARRIGHUISEN (CHAIRMAN) T.R. HENDRY (MANAGING) M.J. ANTONIC (FINANCIAL) P.A. DAY
