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REG.NO. 1951/000799/06
GROUP RESULTS & DIVIDEND ANNOUNCEMENT
FOR THE 6 MONTHS ENDED 31 DECEMBER 2000
TRANSPACO CORES
(Trading as Framen Paper Products)
TRANSPACO FLEXIBLES
(Formerly Plastafrica and Printplast)
TRANSPACO PACKAGING
(Formerly Transvaal Paper)
TRANSPACO PIPING
(Formerly Plastech)
TRANSPACO PLASTICS
(Formerly Perana Plastics)
TRANSPACO POLYMERS
(Formerly PE Recoveries)
TRANSPACO RECYCLING
(Formerly Silverpack)
TRANSPACO SHEET EXTRUSION
(Trading as Terbo Plastics)
The decision to transform Transpaco into a multifaceted plastic and packaging
manufacturing company has proved to be successful. Transpaco achieved its
objectives with satisfactory earnings, despite South Africa's plastic industry
facing unprecedented difficulties and being under extreme pressure from the
continuous upward spiral of raw material prices in a market where these
increases are not easily passed on to customers
For the six month period under review, turnover increased by 15% from R120,0
million to R139,0 million. Group income after taxation was R7,6 million
compared to R9,4 million. The decline in earnings is directly attributable to a
loss of R2,1 million incurred at one of the subsidiaries. Measures have been
taken to rectify the situation, including the disposal of two divisions and a
management restructure of that subsidiary.
All other subsidiaries traded profitably and in accordance with expectations.
Transpaco has recently acquired the Jiffy division of Adcock Ingram. The Jiffy
brand, a household name, covers a comprehensive range of sandwich, utility and
cooking bags as well as cling wrap, bin liners and refuse bags.The directors
expect that Jiffy will contribute to profits in the next financial year.
Notwithstanding that the difficult trading conditions prevailing in the
packaging industry are expected to continue during the second six months,
earnings per share for that period are expected to approximate those for the
first six months.
Following the investment by the Bidvest group through the open market of
approximately 20% in Transpaco's issued share capital, Mr Joe Pamensky has
joined the Transpaco board in a non-executive capacity. Simultaneously, Mr
Steven Chaitel has joined the board as group financial director. Mr Elio
Rovetti has resigned from the board.
After 33 years, the founder of the group, Mr Sam Abelheim, has retired as
chairman and resigned as a director of the company. The Board, on behalf of
every employee, express gratitude and appreciation for his enormous
contribution.
Mr Phil Abelheim has been appointed Executive Chairman.
The continuing investment in upgrading and expanding the Group's manufacturing
capacity has resulted in increased borrowings. Accordingly, the Board believes
that it is in the best medium- to long-term interest of the group to utilise
its funds for further growth and development and to reduce interest-bearing
debt. Therefore, the Board has decided not to declare an interim dividend. The
position will be reviewed at year end.
On behalf of the board:
PN Abelheim (Chairman and Chief Executive)
SL Chaitel (Financial Director)
2 March 2001
Other directors: AJ Aaron*, HA Botha, JS Botha, SR Bouzaglou, DR Hilewitz*, SI
Jacobson*, JL Pamensky*, A Shub, C Vidergauz
(* non-executive)
Divisional Directors: CBS Harmse, KH Harris, GE Heroldt, LM O'Neill, C Phinn,
AT Norris, C Taylor, JE Watters
Life President: S Abelheim
Auditors: Ernst & Young
CONSOLIDATED INCOME STATEMENT
6 MONTHS 6 MONTHS 12 MONTHS
Dec 2000 Dec 1999 June 2000
R'000 Notes Unaudited Unaudited Audited
Turnover 139 099 120 041 238 435
Cost of sales 90 060 72 287 149 182
Gross profit 49 039 47 754 89 253
Operating Costs 36 347 32 269 60 659
Operating Income before
finance charges 12 692 15 485 28 594
Finance charges 2 672 2 765 5 230
Income before taxation 10 020 12 720 23 364
Taxation 2 385 3 317 6 818
Income after taxation 7 635 9 403 16 546
Exceptional item 1 - - 14 468
Income after taxation &
exceptional item 7 635 9 403 31 014
Adjustment ' prior years - - 392
Income attributable to shareholders 7 635 9 403 31 406
Dividend - 1 636 3 271
Retained income for the period 7 635 7 767 28 135
Weighted no. of ordinary
shares (000's) 2 31 410 32 711 32 711
Weighted earnings per
share (cents) 24,3 28,7 94
Weighted headline earnings
per share (cents) 24,3 28,7 50
Dividend per share (cents) - 5 10
interim - 5 5
final - - 5
Dividend cover - 5,7 5,0
CONSOLIDATED BALANCE SHEET
Dec 2000 Dec 1999 June 2000
R'000 Notes Unaudited Unaudited Audited
ASSETS
Non-current assets 64 008 54 053 57 038
Property, plant and equipment 63 059 52 869 55 854
Intangibles 949 1 184 1 184
Current assets 117 323 95 011 85 584
Inventories 35 652 25 793 29 665
Accounts receivable 81 634 69 181 55 882
Cash resources 37 37 37
TOTAL ASSETS 181 331 149 064 142 622
EQUITY AND LIABILITIES
Shareholders funds 75 129 51 551 71 919
Non-current liabilities 21 222 16 665 15 709
Deferred taxation 2 877 380 1 751
Current liabilities 82 103 80 468 53 243
Accounts payable 65 035 58 763 41 633
Bank overdraft 17 068 20 069 9 974
Shareholders for dividend - 1 636 1 636
TOTAL EQUITY AND LIABILITIES 181 331 149 064 142 622
No. of shares in issue (000's) 32 711 32 711 32 711
Repurchase of shares (000's) 2 602 - -
Ranking no. of shares (000's) 2 30 109 32 711 32 711
Net asset value per share (cents) 249 158 220
Notes 1 Profit on sale of Bubble Pac division
2 A wholly owned subsidiary of Transpaco purchased
2 602 777 Transpaco shares, with effect from 1 October 2000, in terms
of the specific authority approved by shareholders on 17 January 2001.
ABRIDGED CONSOLIDATED CASH FLOW
Dec 2000 Dec 1999 June 2000
R'000 Unaudited Unaudited Audited
Operating cash flow 16 044 17 988 34 577
Movement in working capital (9 603) (3 000) (10 734)
Net interest paid (2 672) (2 765) (5 230)
Taxation paid (1 543) (5 241) (8 989)
Dividend paid (1 636) (2 290) (3 926)
Cash generated from operating
activities 590 4 692 5 698
Net inflow from financing
activities 2 638 9 168 9 689
Net flow from investing activities (10 322) (14 763) (6 195)
Net movement in cash for the period (7 094) (903) 9 192
Opening net cash resources (9 937) (19 129) (19 129)
Closing net cash resources (17 031) (20 032) (9 937)
STATEMENT OF CHANGES IN EQUITY
Dec 2000 Dec 1999 June 2000
R'000 Unaudited Unaudited Audited
Opening balance 71 919 43 784 43 784
Earnings attributable to
shareholders 7 635 9 403 31 406
Repurchase ordinary share capital (4425) - -
Dividend paid - (1 636) (3 271)
Closing balance 75 129 51 551 71 919
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