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TRANSPACO LIMITED - GROUP RESULTS FOR THE 6 MONTHS ENDED 31 DECEMBER 2002 TRANSPACO LIMITED Reg. No. 1951/000799/06 ISIN: ZAE000007480 Share Code: TPC Group results for the 6 months ended 31 December 2002 FINANCIAL HIGHLIGHTS * Turnover up 20% * Operating income up 51% * Headline EPS up 73% * Gearing down to 32% CONSOLIDATED INCOME STATEMENT Unaudited Unaudited Audited 6 months 6 months % 12 months R000`s Dec 2002 Dec 2001 Change Jun 2002 Turnover 175 580 146 242 20 280 190 Cost of sales 117 141 98 491 19 186 889 Gross Profit 58 439 47 751 22 93 301 Operating Costs 36 383 31 945 14 63 586 Depreciation 4 648 4 261 9 8 506 Operating Income 17 408 11 545 51 21 209 Net interest paid 2 669 3 339 (20) 4 805 Income before taxation 14 739 8 206 80 16 404 Taxation 3 426 1 671 105 5 247 Attributable income after taxation 11 313 6 535 73 11 157 Number of ordinary shares in issue (000`s) 30 108 30 108 30 108 (net of 2 602 777 treasury shares) Earnings per share (cents) 37.6 21.7 73 37.1 Headline earnings per share (cents) 37.6 21.7 73 37.5 Reconcilliation of headline earnings (R000`s) Basic earnings 11 313 6 535 11 157 Impairment cost of assets - - 175 Surplus on disposal of plant and equipment - - (50) Headline earnings 11 313 6 535 11 282 CONSOLIDTED BALANCE SHEET Unaudited Unaudited Audited 6 months 6 months 12 months
R000`s Dec 2002 Dec 2001 Jun 2002 ASSETS Non-current assets 57 821 62 109 57 845 Property, plant and equipment 55 953 59 252 55 406 Deferred taxation 1 162 1 830 1 702 Intangibles 706 1 027 737 Current assets 97 777 92 745 85 679 Inventories 24 113 16 672 24 331 Accounts receivable 71 406 73 012 58 761 Taxation 2 215 3 025 2 549 Cash resources 43 36 38 TOTAL ASSETS 155 598 154 854 143 524 EQUITIES AND LIABILITIES Capital and reserves 83 909 67 974 72 596 Issued capital 301 301 301 Reserves 5 525 5 525 5 525 Accumulated profit 78 083 62 148 66 770 Non-current liabilities 17 051 20 527 17 691 Interest bearing borrowings 14 741 18 681 15 521 Deferred taxation 2 310 1 846 2 170 Current liabilities 54 638 66 353 53 237 Trade and other payables 42 196 39 598 40 280 Taxation 630 152 1 018 Bank overdraft 6 243 21 099 6 074 Current portion of interest bearing borrowings 5 569 5 504 5 865 TOTAL EQUITY AND LIABILITIES 155 598 154 854 143 524 Salient features Number of shares in issue (000`s) 30 108 30 108 30 108 (net of 2 602 777 treasury shares) Net asset value per share (cents) 279 226 241 Gearing ratio % 32 67 38 Interest cover 6.5 3.5 4.4 Operating margin % 9.9 7.9 7.6 ABRIDGED CONSOLIDATED CASH FLOW Unaudited Unaudited Audited
6 months 6 months 12 months R000`s Dec 2002 Dec 2001 Jun 2002 Cash flow from operating activities Cash generated from operations 11 546 7 751 29 124 Net interest paid (2 669) (3 339) (4 805) Taxation paid (2 801) (1 289) (3 071) Net cash flow from operating activities 6 076 3 123 21 248 Cash flow from investing activities Proceeds on disposal of plant and equipment - 72 934 Proceeds on disposal of intangibles - - 270 Acquisition of fixed assets (5 164) (1 054) (2 485) Net cash flow from investing activities (5 164) (982) (1 281) Cash flow from financing activities Decrease in long term borrowings (780) (3 148) (5 763) Decrease in short term borrowings (296) (223) (407) Net cash flow from financing activities (1 076) (3 371) (6 170) Net movement in cash for the period (164) (1 230) 13 797 Cash and cash equivalents at the beginning of the year (6 036) (19 833) (19 833) Cash and cash equivalents at the end of the period (6 20 (21 063) (6 036) STATEMENT OF CHANGES IN EQUITY Unaudited Unaudited Audited
6 months 6 months 12 months R000`s Dec 2002 Dec 2001 Jun 2002 Opening balance 72 596 61 439 61 439 Earnings attributable to shareholders 11 313 6 535 11 157 Closing balance 83 909 67 974 72 596 NATURE OF BUSINESS Transpaco manufactures, distributes and recycles plastic and packaging products focussing its business activities mainly in South Africa and exports into Africa. BUSINESS REVIEW The board is pleased to report outstanding results for the period under review reflecting an increase in headline earnings per share of 73% to 37,6 cents (December 2001 - 21,7 cents). Turnover increased by 20% to R175 million (December 2001 - R146 million). Operating Income grew by 51% to R17,4 million (December 2001 - R11,5 million). Attibutable income of R11,3 million showed an increase of 73% over the corresponding period last year, notwithstanding the increase in the tax rate 23,2% to (December 2001 - 20,4%). Transpaco continued to generate strong cash flows resulting in a decrease in interest paid of 20%. This was achieved in an environment of high interest rates prevailing during the reporting period. Gearing reduced to 32% (December 2001 - 67%). The increased profitability and improvement in gearing had the effect of strengthening the balance sheet. The net asset value at the reporting date was R2,79 per share (December 2001 - R2,26 per share). ACCOUNTING POLICY The interim results are prepared in accordance with South African Statements of Generally Accepted Accounting Practice and Schedule 4 of the South African Companies Act, 1973 as amended, and should be read in conjunction with the 2002 annual financial statements. The accounting policies adopted are consistent with those applied in the annual financial statements for the year ended 30 June 2002. PROSPECTS The platform for sustained growth is firmly established, with Transpaco well positioned to satisfy an increase in the demand for its products. Traditionally the first half of the year generates more profits than the second half. The group`s prospects remain positive. DIVIDEND Transpaco is committed to further reducing debt. Consequently the directors consider it prudent not to declare a dividend at this stage. The declaration of a dividend will be considered at year end. ON BEHALF OF THE BOARD: PN Abelheim SL Chaitel Chairman & Chief Executive Director 25 February 2003 DIRECTORS: PN Abelheim; AJ Aaron*; HA Botha; JS Botha; SR Bouzaglou; SL Chaitel; DR Hilewitz*; SI Jacobson*; AC Salomon*; SP van der Linde* *Non executive AUDITORS: Ernst & Young REGISTERED OFFICE: 331 Sixth Street
Wynberg, Sandton TRANSFER SECRETARIES: Computershare Investor Services Ltd
70 Marshall Street, Johannesburg Date: 26/02/2003 07:03:00 AM Supplied by www.sharenet.co.za Produced by the JSE SENS Department
