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Argent Audited Results for the year ended 312 March 2002

Release Date: 05/06/2002 08:02
Code(s): ART
Wrap Text

Argent Audited Results for the year ended 312 March 2002 ARGENT INDUSTRIAL LIMITED Reg no 1993/002054/06 (Incorporated in the Republic of South Africa) ("Argent") Share code : ART ISIN code : ZAE 000019188 Audited Results for the year ended 31 March 2002 REVENUE UP 31% ATTRIBUTABLE EARNINGS UP 43% HEADLINE EARNINGS PER SHARE UP 38% Abridged Consolidated Balance Sheet as at 31 March 2002 Audited at Audited at 31 March 31 March 2002 2001
R000 ASSETS Non-current assets Property, plant and equipment 99 483 97 434 Intangibles 607 675 Employee share incentive scheme 695 987 100 785 99 096 Current assets Inventories 60 944 45 025 Trade and other receivables 101 378 57 897 Taxation - 67 Bank balance and cash 10 493 358 172 815 103 347 Total assets 273 600 202 443 EQUITY AND LIABILITIES Capital and reserves Share capital and premium 5 125 3 023 Reserves 24 045 26 013 Accumulated profits 105 468 87 653 Ordinary shareholders` funds 134 638 116 689 Minority interest 3 824 5 325 Total shareholders` fund 138 462 122 014 Non current liabilities Long-term borrowings 18 416 18 856 Deferred taxation 4 094 3 549 22 510 22 405 Current liabilities Trade and other payables 98 255 48 962 Taxation 3 828 - Shareholders for dividends 3 108 2 429 Current portion of long-term borrowings 7 437 6 633 112 628 58 024
Total equity and liabilities 273 600 202 443 Net asset value per share (cents) 303,2 288,2 Statement of Changes in Equity for the year ended 31 March 2002 Share Share Revalu- Accum- Total Capital Premium ation ulated Reserve Profit
R000 Balance at 31 March 2000 1 966 31 267 75 565 108 798 Shares issued 58 999 1 057 Reversal of revaluation of properties (5 254) (5 254) Net profit for the year ended 31 March 2001 16 946 16 946 Dividends (4 858) (4 858) Balance at 31 March 2001 2 024 999 26 013 87 653 116 689 Shares issued 196 1 906 2 102 Reversal of revaluation of properties (1 968) (1 968) Net profit for the year ended 31 March 2002 24 268 24 268 Dividends (6 453) (6 453) Balance at 31 March 2002 2 220 2 905 24 045 105 468 134 638 Abridged Consolidated Income Statement for the year ended 31 March 2002 Audited Audited year ended year ended
31 March 31 March 2002 2001 R000 Revenue 371 644 283 221 Operating profit before finance charges 34 012 26 049 Net finance charges 4 641 5 463 Net profit before taxation 29 371 20 586 Taxation 4 502 2 977 Net profit after taxation 24 869 17 609 Earnings attributable to outside shareholders 601 663 Earnings attributable to ordinary shareholders 24 268 16 946 Attributable earnings per share (cents) 55,1 42,7 Headline earnings per share (cents) 55,8 44,9 Dividends per share (cents) 14,0 12,0 Shares in issue (000) - at end of period 44 409 40 486 - weighted average for the year 44 082 39 703 Calculation of Headline Earnings (R000) Attributable earnings 24 268 16 946 Adjustments for: Profit on disposal of property, plant and equipment (780) (850) Loss on disposal of subsidiary - 293 Loss on disposal of property, plant and equipment 1 126 1 440 Headline adjustments 346 883 Headline earnings 24 614 17 829 Abridged Consolidated Cash Flow Statement for the year ended 31 March 2002 Audited Audited year ended year ended 31 March 31 March 2002 2001
R000 Cash generated from operations 27 769 24 557 Interest paid (8 267) (8 670) Interest received 3 626 3 207 Dividends paid (5 774) (3 215) Taxation paid (62) (2 621) Cash flows from operating activities 17 292 13 258 Cash flows from investing activities (9 623) (12 656) Cash flows from financing activities 2 466 160 Net increase in cash and cash equivalents 10 135 762 Cash and cash equivalents at beginning of year 358 (404) Cash and cash equivalents at end of year 10 493 358 COMMENTARY A highly commendable performance for the year ended 31 March 2002. Evidence of our success in this endeavour is found in almost every part of our business. The Group continues its strategy to deliver outstanding shareholder value. Salient features of the results Attributable earnings increased by 43% to R24.2 million for the period under review (2001 - R16,9 million) Headline earnings per share increased by 38% to 55,8 cents per share over the same period (2001 - 44,9 cents) Group gearing decreased to 18,6% (2001 - 20,9%) Divisional Performance Steel and Steel Processing The Group`s Steel Companies had an excellent year. The Strategic branches established in Richardsbay and Mpumalanga have performed to expectations, and current expansion of our warehouses in both areas are expected to be completed by August 2002. This will further enhance customer service and bottom line performance for the 2003 financial year. Further geographic expansion is planned in growth areas in this year and the Group has already started a new steel merchanting operation in East London which will also handle the logistics between Mercedes Benz and Giflo Engineering. Phoenix Steel has upgraded its coil handling facility and plans to modernise its processing equipment during the financial year. Kochs Cut & Supply is in the process of upgrading its plant and machinery with the objective of increasing its capacity. Performance in growth areas will be carefully monitored to gauge its impact on results. Fabrication Bavarian Metal Industries (BMI) had a good year and currently sits with a very satisfactory order book. The company is getting far more support from Meiller Germany, the supplier of the Meiller tipper body hydraulics. This increased support will help BMI increase its market share. Hendor Mining Supplies has maintained its share of an increased market and intends to focus its efforts on exporting to Zambia as this has significant growth potential for the company. Precision Engineering Giflo Engineering has had a great year. The decreased Rand value has provided endless opportunities both locally and abroad. Giflo has purchased an adjacent fourteen thousand square meters of land and will continue to expand to meet the needs of its ever-increasing client base. We are confident that this operation will continue to contribute meaningfully to growth in 2003 and beyond. Giflo currently exports various components to Brazil, the United Kingdom and the United States of America. New Joules Engineering North America Inc. has sufficient orders to take them through to February 2003. The company has come a long way and is now totally self-sufficient. New Joules has an exciting future and will increase its turnover by 50% in the coming financial year. NWN, is now totally settled in Pinetown and is a consistant contributor to the Group`s bottom line. Concrete and Stone Megamix has had a fantastic year. The company has a good growth potential and is well on track to becoming a significant player in the Cape Town- Somerset West area. Materials Handling Barker Flynn has had an exceptional year and enters the new period with R142 million on its order book. All of the current contracts are on schedule and are running within their budgeted margins. Barker Flynn has approximately R250 million on tender. The majority of the tenders relate to the 2004 financial year. Accounting Policy The accounting policies adopted by the Group remain consistant with those applied in the previous financial year. The financial statements have been prepared on historical cost basis and in accordance with South African standards of generally accepted accounting practice, except for non-compliance with AC 135. The effect of non-compliance with the statement is considered to be immaterial and the external Auditors conclude that fair presentation is achieved in the Financial Statements Prospects We will continue to focus on export markets. The Group is properly geared to deliver above average returns on shareholders equity and has a strong platform for future growth. Dividend A final dividend of 7 cents per share has been declared, payable on Monday 5 August 2002 to shareholders registered as such at close of business on Friday 2_August 2002, being the record date in order to participate in such dividend. The last day to trade cum dividend is Friday 26 July 2002. The share will trade ex dividend on Monday 29 July 2002. There will be no dematerialisation / rematerialisation between Monday 22 July 2002 and Friday 2 August 2002. On Behalf of the board T.R. HENDRY CA (SA) Chief Executive Officer Germiston 5 June 2002 Registered Address: 13 Jack Pienaar Street Germiston South Extension 7 Germiston 1411 Tel:_(011) 876 - 4000 (PO Box 14461, Wadeville 1422) Attorney: Rossouws Attorneys, Notaries and Conveyers Auditors: Etchells James Kruger & Associates Inc. Sponsor: LPC Manhattan LPC Manhattan Sponsors (Pty) Ltd (Registration number 1999/024792/07) Transfer Secretary: Ultra Registrars Ground Floor 11 Diagonal Street Johannesburg, 2001 (PO Box 4844, Johannesburg 2000) Company Secretary - N. Glover (Mrs) Directors: T. Scharrighuisen (Chairman) T.R. Hendry (C.E.O) S.J. Cox (Ms) (Financial) P.A. Day ( Executive) M.J. Antonic (New Business Development) G. Youngman (Alternate - Exceutive) D. Smith (Alternate - New Business Development) Website: www.argent.co.za Date: 05/06/2002 08:00:00 AM Produced by the SENS Department

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