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Transpaco Limited - Reviewed Group Results For The Year Ended 30 June 2003

Release Date: 26/08/2003 17:25
Code(s): TPC
Wrap Text

Transpaco Limited - Reviewed Group Results For The Year Ended 30 June 2003 Transpaco Limited Registration number: 1951/000799/06 Share code: TPC ISIN: ZAE000007480 REVIEWED GROUP RESULTS FOR THE YEAR ENDED 30 JUNE 2003 FINANCIAL HIGHLIGHTS * Turnover up 14% * Operating income up 30% * Headline EPS up 61% * Dividend per share (cents) 15 * Gearing down from 38% to 13% CONSOLIDATED INCOME STATEMENT Reviewed Audited 12 months % 12 months R"000 June 2003 Change June 2002 Turnover 319 607 14 280 190 Cost of sales 209 891 13 186 889 Gross Profit 109 716 18 93 301 Operating Costs 70 750 6 66 487 Depreciation 9 545 12 8 506 29 421 61 18 308 (Loss)/Profit on Foreign Exchange (1 754) 2 901 Operating Income 27 667 30 21 209 Net interest paid 4 680 (3) 4 805 Income before taxation 22 987 40 16 404 Taxation 5 212 (1) 5 247 Income after taxation 17 775 59 11 157 - Weighted average ranking number of ordinary shares in issue ("000) 29 746 30 108 Earnings per share (cents) 59,8 61 37,1 Headline earnings per share (cents) 60,5 61 37,5 Reconcilliation of headline earnings (R"000) Basic earnings 17 775 11 157 Impairment cost of assets 187 175 Loss/(Profit) on disposal of plant and equipment 41 (50) Headline earnings 18 003 60 11 282 CONSOLIDATED BALANCE SHEET Reviewed Audited
12 months 12 months R"000 June 2003 June 2002 ASSETS Non-current assets 56 402 57 845 Property, plant and equipment 54 259 55 406 Deferred taxation 1 514 1 702 Intangibles 629 737 Current assets 99 153 85 679 Inventories 26 389 24 331 Accounts receivable 60 949 58 761 Taxation 3 704 2 549 Cash resources 8 111 38 TOTAL ASSETS 155 555 143 524 EQUITY AND LIABILITIES Capital and reserves 85 091 72 596 Issued capital 281 301 Reserves 1 688 5 525 Accumulated profit 83 122 66 770 Non-current liabilities 16 167 17 691 Interest bearing borrowings 12 709 15 521 Deferred taxation 3 458 2 170 Current liabilities 54 297 53 237 Trade and other payables 47 039 40 280 Taxation 478 1 018 Bank overdraft - 6 074 Current portion of interest bearing borrowings 6 780 5 865 TOTAL EQUITY AND LIABILITIES 155 555 143 524 Number of shares in issue "000 "000 Number of shares in issue 30 108 30 108 (net of 2 602 777 treasury shares) Shares repurchased and cancelled (2 019) - Ranking number of shares 28 089 30 108 Salient features Net asset value per share (cents) 303 241 Gearing ratio % 13 38 Shareholders Funds: Total assets % 58 50 Operating margin % 8,7 7,6 Interest cover (x) 5,9 4,4 ABRIDGED CONSOLIDATED CASH FLOW Reviewed Audited 12 months 12 months R"000 June 2003 June 2002 Cash flow from operating activities Cash generated from operations 40 003 29 124 Net interest paid (4 680) (4 805) Taxation paid (5 367) (3 071) Net cash flow from operating activities 29 956 21 248 Cash flow from investing activities Proceeds on disposal of plant and equipment 294 934 Proceeds on disposal of intangibles - 270 Acquisition of plant and equipment (8 877) (2 485) Net cash flow from investing activities (8 583) (1 281) Cash flow from financing activities (Decrease) in long term borrowings (2 812) (5 763) (Decrease)/Increase in short term borrowings 915 (407) Repurchase of share capital (5 329) - Net cash flow from financing activities (7 226) (6 170) Net movement in cash for the year 14 147 13 797 Cash and cash equivalents at the beginning of the year (6 036) (19 833) Cash and cash equivalents at the end of the year 8 111 (6 036) STATEMENT OF CHANGES IN EQUITY Reviewed Audited 12 months 12 months
R"000 June 2003 June 2002 Opening balance 72 596 61 439 Earnings attributable to shareholders 17 775 11 157 Repurchase of share capital (5 280) - Closing balance 85 091 72 596 NATURE OF BUSINESS Transpaco manufactures, distributes and recycles plastic and packaging products focussing on business activities mainly in South Africa and on exports into Africa. BUSINESS REVIEW The board is pleased to report excellent results for the year under review reflecting an increase in headline earnings per share of 61% to 60,5 cents (June 2002 - 37,5 cents). Turnover increased by 14% to R320 million (June 2002 - R280 million). Operating income grew by 30% to R27,7 million (June 2002 - R21,2 million) despite a foreign exchange loss of R1,8 million (June 2002 - profit R2,9 million). Attributable income of R17,8 million represented an increase of 59% compared to last year. Transpaco generated R29,9 million (101 cents per share) from operating activites resulting in a reduction in gearing to 13% (June 2002 - 38%), after funding the repurchase of 2 018 717 shares at an average price of R2,64 per share for a total of R5 329 141, all of which have been cancelled and delisted from the JSE Securities Exchange South Africa. Strict control of operating costs which increased by 6%, continued improvement in margins and stringent working capital management contributed to the improvement. The net asset value per share increased by 25,7% to R3,03 (June 2002 - R2,41 per share). PROSPECTS Transpaco derives a portion of its turnover from plastic carrier bags directly affected by the new regulations. Cognisance of the decline in demand for carrier bags has been taken into account in determining budgets for the 2004 year. Transpaco is expanding existing group operations and has committed R13 million capital expenditure for the Recycling, Polymer and Rigid Sheet divisions. A state of the art PET sheet extrusion line will be commissioned during September 2003 at Transpaco Sheet Extrusion. Pre-washing and recycling capacities have been increased at Transpaco Recycling and Transpaco Polymers respectively. Notwithstanding the decline in carrier bag sales, the group expects real earnings growth and further positive cash flow for the year ahead. DIVIDEND The board has declared a dividend of 15 cents per share to shareholders recorded in the register on Friday 26 September 2003 payable on Monday 29 September 2003. The last day to trade "cum" dividend will be Thursday 18 September 2003. Shares will commence trading "ex" dividend from the commencement of business on Friday 19 September 2003. The record date will be Friday 26 September 2003. Share certificates may not be dematerialised or rematerialised between Friday 19 and Friday 26 September 2003, both days inclusive. ACCOUNTING POLICY These results are prepared in accordance with South African Statements of Generally Accepted Accounting Practice and the South African Companies Act. The accounting policies used are consistent with those in the audited financial statements for the year ended 30 June 2002, except for the adoption of AC 133 Financial Instruments: Recognition and Measurement, which has no material impact on these financial statements. REVIEW OF INDEPENDENT AUDITORS The group"s auditors Ernst & Young have reviewed the results. Their unqualified review report is available for inspection at Tranpaco"s registered office. ON BEHALF OF THE BOARD: PN Abelheim SL Chaitel Chairman & Chief Executive Director DATE: 26 August 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 SPONSOR: Investec Bank Limited REGISTERED OFFICE; TRANSFER SECRETARIES; 331 Sixth Street Computershare Limited Wynberg, Sandton 70 Marshall Street, Johannesburg Date: 26/08/2003 05:25:25 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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