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Transpaco Limited Reg.No. 1951/000799/06 ISIN: ZAE000007480 Share code: TPC GROUP RESULTS FOR THE 6 MONTHS ENDED 31 DECEMBER 2001 CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited Audited 6 months 6 months % 12 months R000's Dec-2001 Dec-2000 Change Jun-2001 Turnover 146 242 137 336 6,5 250 675 Cost of sales 98 491 93 647 169 881 Gross Profit 47 751 43 689 80 794 Operating costs 31 945 33 668 68 257 Operating income before
depreciation & finance costs 15 806 10 021 12 537 Depreciation 4 261 3 352 7 439 Net finance charge 3 339 2 672 5 999 Income/(loss) before taxation 8 206 3 997 (901) Taxation 1 671 1 401 (237) Income/(loss) after taxation 6 535 2 596 151,7 (664) Exceptional item - - 516 Income/(loss) after taxation and
exceptional item 6 535 2 596 (148) Weighted no. of ordinary
shares in issue (000's) 30 108 31 410 30 108 Earnings/(loss) per share (cents) 21,7 8,2 164,6 (0,5) Headline earnings/(loss)
per share (cents) 21,7 8,2 (2,4) CONSOLIDATED BALANCE SHEET
Unaudited Unaudited Audited 6 months 6 months 12 months R000's Note Dec-2001 Dec-2000 Jun-2001 ASSETS
Non-current assets 62 109 64 187 65 223 Property, plant and equipment 59 252 63 523 62 424 Deferred taxation 1 830 62 1 730 Intangibles 1 027 602 1 069 Current assets 92 745 105 848 82 226 Inventories 16 672 27 447 22 029 Accounts receivable 73 012 76 838 56 499 Taxation 3 025 1 526 3 657 Cash resources 36 37 41 TOTAL ASSETS 154 854 170 035 147 449 EQUITY AND LIABILITIES
Capital and reserves 67 974 64 947 61 439 Issued capital 301 301 301 Reserves 5 525 5 525 5 525 Accumulated profit 62 148 59 121 55 613 Non-current liabilities 20 527 23 657 22 726 Interest bearing borrowings 18 681 21 222 21 284 Deferred taxation 1 846 2 435 1 442 Current liabilities 66 353 81 431 63 284 Trade and other payables 39 598 58 395 36 432 Taxation 152 - 706 Bank overdraft 21 099 17 068 19 874 Current portion of interest
bearing borrowings 5 504 5 968 6 272 TOTAL EQUITY AND LIABILITIES 154 854 170 035 147 449 Number of shares in issue (000's) 32 711 32 711 32 711 Repurchase of shares (000's) 1 2 603 2 603 2 603 Ranking number of shares (000's) 30 108 30 108 30 108 Net asset value per share (cents) 226 215 204 Gearing ratio (%) 67 68 77 Note:
1. 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
Unaudited Unaudited Audited 6 months 6 months 12 months R000's Dec-2001 Dec-2000 Jun-2001 Operating cash flow 15 741 9 654 12 481 Proceeds Bubble Pac - - 516 Movement in working capital (7 990) (3 795) 1 540 Net interest paid (3 339) (2 672) (5 999) Taxation paid (1 289) (1 543) (4 549) Dividend paid - (1 636) (1 635) Cash generated from operating activities 3 123 8 2 354 Net (outflow)/inflow from
financing activities (3 371) 2 638 3 005 Net fixed assets acquired (982) (9 740) (15 255) Net movement in cash for the period (1 230) (7 094) (9 896) Opening net cash resources (19 833) (9 937) (9 937) Closing net cash resources (21 063) (17 031) (19 833) CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Unaudited Unaudited Audited 6 months 6 months 12 months R000's Dec-2001 Dec-2000 Jun-2001 Opening balance 61 439 66 846 66 846 Prior year adjustment
- depreciation of buildings - - (835) Prior year adjustment - taxation - (71) - Earnings attributable to shareholders 6 535 2 596 (148) Repurchase of share capital & share premium - (4 424) (4 424) Closing balance 67 974 64 947 61 439 Transpaco is a leading manufacturer and distributor of plastic and packaging products focused on sustainable growth activities, satisfying the needs of its customers, shareholders and employees whilst remaining committed to the protection of the environment and dedicated to the conservation and re-use of natural resources. FINANCIAL RESULTS
Due to improved margins, stringent cost controls and effective asset
management, the results for the six-month period are extremely pleasing given the difficult market conditions in which Transpaco operates.
Turnover grew by 6% from R137,3 million to R146,2 million. Income after taxation increased significantly from R2,6 million to R6,5 million with headline earnings per share improving from 8,2 cents to 21,7cents.
Due to the seasonal nature of the group's business, working capital
requirements peak at the end of December each year. As a result of positive cash flow, interest bearing debt has reduced by R8,7 million from 31 December 2001 to date of this report.
All subsidiaries traded profitably except for Perana Plastics which is currently being scaled down. ACCOUNTING POLICIES
The report is prepared using accounting policies consistent with those applied in the last annual report and in terms of GAAP except for adoption of AC123-Property, Plant and Equipment. The statement is effective for Transpaco from 1 July 2001 and requires depreciation of all owner occupied property. The impact of the change in accounting policy is a reduction of R835 000 in the opening accumulated profit. In the period under review, an amount of R104 000 is included in depreciation (2000: nil). PROSPECTS
The successful strategies implemented in the review period should result in further profit improvement for the remainder of the financial year. The group has sufficient manufacturing capacity to cater for organic growth and does not anticipate any meaningful capital expenditure in the short term. The group is currently initiating an aggressive export programme, which is in its infancy. Initial responses are encouraging.
The endeavours of the Department of Environmental Affairs and Tourism to restrict the manufacture of thin plastic carrier bags in South Africa has not been finalised. We are confident that a solution beneficial to both the environment and our industry will be found. DIVIDEND
The group is committed to further reducing debt. Consequently no dividend has been declared for the period. On behalf of the Board: PN Abelheim SL Chaitel Chairman & Chief Executive Financial Director 25 February 2002 Directors:
PN Abelheim, AJ Aaron*; HA Botha; JS Botha; SR Bouzaglou; SL Chaitel, DR Hilewitz*; SI Jacobson*; JL Pamensky*; AC Salomon* *Non-executive Auditors: Ernst & Young Registered Office: Transfer Secretaries:
331 Sixth Street Mercantile Registrars Ltd Wynberg 11 Diagonal Street Sandton Johannesburg
