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TRANSPACO LIMITED - GROUP RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2003 AND

Release Date: 18/02/2004 17:11
Code(s): TPC
Wrap Text

TRANSPACO LIMITED - GROUP RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2003 AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT TRANSPACO LIMITED Reg.No.1951/000799/06 ISIN: ZAE000007480 Share Code: TPC GROUP RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2003 AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT NATURE OF BUSINESSTranspaco manufactures, distributes and recycles plastic and packaging products focusing on business activities mainly in South Africa and on exports into Africa.BUSINESS REVIEWThe group faced a number of challenges during the period under review particularly with regard to the plastic bag regulations. The board is however, pleased to report improved results reflecting an increase in headline earnings per share of 13% to 42,3 cents (Dec 2002 - 37,6 cents). Turnover decreased by 10% to R 158 million (Dec 2002 - R 176 million) mainly attributable to the deflationary environment and the decline in sales of plastic bags as a result of the new regulations which became effective on 9 May 2003. Notwithstanding the decrease in turnover, operating income increased to R 17,8 million (Dec 2002 - R 17,4 million) as a result of improved gross profit margins and an 8% reduction in operating costs. Due to good working capital management and lower interest rates, net interest paid decreased by 42% to R 1,54 million (Dec 2002 - R 2,67 million). This reduction has had the effect of improving income before taxation by 10% to R 16,3 million (Dec 2002 - R 14,7 million). Interest cover increased to 11,6 times (Dec 2002 - 6,5 times). The number of ranking shares in issue has been reduced as a result of the group repurchasing 321 701 shares at an average price of R 3,03 per share for a total consideration of R 975 685. The net asset value per share increased by 9% to 331 cents (June 2003 - 303 cents).PROSPECTSTranspaco remains cautiously optimistic. The two remaining plastic bag factories are operating at acceptable levels. There will be further benefits from the expansion programme in the Rigid and Recycling divisions as the plant was commissioned in the latter part of the period under review. Stronger cash flows are anticipated for the second half of the financial year.WITHDRAWAL OF CAUTIONARY ANNOUNCEMENTShareholders are referred to the trading statement and cautionary announcement dated 30 January 2004, and as a result of the publication of the interim results announcement, caution is no longer required when dealing in Transpaco shares.DIVIDENDThe board has declared an interim dividend of 7 cents per share to shareholders recorded in the register on Friday 26 March 2004 payable on Monday 29 March 2004. The last day to trade "cum" dividend will be Thursday 18 March 2004. Shares will commence trading "ex" dividend from the commencement of business on Friday 19 March 2004. The record date will be Friday 26 March 2004. Share certificates may not be dematerialised or rematerialised between Friday 19 and Friday 26 March 2004, both days inclusive.THE BOARDWe are pleased to announce that Archie Aaron a non-executive director since Transpaco listed in 1987, has been appointed non- executive chairman. Phil Abelheim retains his position as chief executive officer. Louis Weinberg previously group financial manager has been appointed financial director. The above appointments are effective from 18 February 2004. ACCOUNTING POLICYThese 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 audited financial statements for the year ended June 2003.ON BEHALF OF THE BOARD AJ Aaron* Chairman PN Abelheim Chief Executive L Weinberg Financial Director DATE: 18 February 2004 DIRECTORS: AJ Aaron* (Chairman); PN Abelheim (Chief Executive); HA Botha; JS Botha; SR Bouzaglou; SL Chaitel; DR Hilewitz*; SI Jacobson*; AC Salomon*; SP van der Linde*; L Weinberg *non-executive AUDITORS: Ernst & Young SPONSOR: Investec Bank Limited REGISTERED OFFICE331 Sixth Street Wynberg, Sandton TRANSFER SECRETARIES Computershare Limited 70 Marshall Street, Johannesburg CONSOLIDATED INCOME STATEMENT Unaudited Unaudited Audited 6 months 6 months % 12 months R"000 Dec 2003 Dec 2002 Change Jun 2003 Turnover 157 904 175 580 (10) 319 607 Cost of sales 101 578 117 141 (13) 209 891 Gross Profit 56 326 58 439 (4) 109 716 Operating Costs 33 585 36 383 (8) 72 504 Depreciation 4 915 4 648 6 9 545 Operating Income 17 826 17 408 2 27 667 Net interest paid 1 542 2 669 (42) 4 680 Income before taxation 16 284 14 739 10 22 987 Taxation 4 254 3 426 24 5 212 - Current taxation 2 577 2 746 3 525 - Deferred taxation 1 102 680 1 476 - Secondary taxation on 575 - 211 companies Income after taxation 12 030 11 313 6 17 775 Weighted average number of 27 823 30 108 (8) 29 746 ranking ordinary shares in issue (`000) Earnings per share (cents) 43,2 37,6 15 59,8 Headline earnings per share 42,3 37,6 13 60,5 (cents) Dividend per share (cents)* 7,0 - 15,0 Reconciliation of headline earnings (R"000) Basic earnings 12 030 11 313 17 775 Impairment cost of assets - - 187 (Profit)/Loss on disposal of (263) - 41 plant and equipment Headline earnings 11 767 11 313 18 003 * Dividend declared after the period CONSOLIDATED BALANCE SHEET Unaudited Unaudited Audited 6 months 6 months 12 months
R"000 Dec 2003 Dec 2002 Jun 2003 ASSETS Non-current assets 67 598 56 659 54 888 Property, plant and equipment 66 984 55 953 54 259 Intangibles 614 706 629 Current assets 97 927 97 147 98 675 Inventories 22 932 24 113 26 389 Accounts receivable 73 513 71 406 60 949 Taxation 1 436 1 585 3 226 Cash resources 46 43 8 111 TOTAL ASSETS 165 525 153 806 153 563 EQUITY AND LIABILITIES Capital and reserves 91 980 83 909 85 091 Issued capital 278 301 281 Reserves 1 688 5 525 1 688 Accumulated profit 90 014 78 083 83 122 Non-current liabilities 25 300 15 889 14 653 Interest bearing borrowings 22 253 14 741 12 709 Deferred taxation 3 047 1 148 1 944 Current liabilities 48 245 54 008 53 819 Trade and other payables 37 566 42 196 47 039 Bank overdraft 738 6 243 - Current portion of interest 9 941 5 569 6 780 bearing borrowings TOTAL EQUITY AND LIABILITIES 165 525 153 806 153 563 Number of shares in issue `000 `000 `000 Number of shares in issue 28 089 30 108 30 108 (net of 2 602 777 treasury shares) Shares repurchased and - - (2 019) cancelled Shares repurchased (322) - - Ranking number of shares 27 767 30 108 28 089 Salient features Net asset value per share 331 279 303 (cents) Gearing ratio % 36 32 13 Shareholders Funds: Total 56 55 58 assets % Interest cover (x) 11,6 6,5 5,9 Operating margin % 11,3 9,9 8,7 ABRIDGED CONSOLIDATED CASH FLOW Unaudited Unaudited Audited 6 months 6 months 12 months
R"000 Dec 2003 Dec 2002 Jun 2003 Cash flow from operating activities Cash generated from operations 3 898 11 546 40 003 Dividend paid (4 165) - - Net interest paid (1 542) (2 669) (4 680) Taxation paid (1 362) (2 801) (5 367) Net cash flow from operating (3 171) 6 076 29 956 activities Cash flow from investing activities Proceeds on disposal of plant 870 - 294 and equipment Acquisition of plant and (18 231) (5 164) (8 877) equipment Net cash flow from investing (17 361) (5 164) (8 583) activities Cash flow from financing activities Increase/(Decrease) in long 9 544 (780) (2 812) term borrowings Increase/(Decrease) in short 3 161 (296) 915 term borrowings Repurchase of share capital (976) - (5 329) Net cash flow from financing 11 729 (1 076) (7 226) activities Net movement in cash for the (8 803) (164) 14 147 period Cash and cash equivalents at 8 111 (6 036) (6 036) the beginning of the period Cash and cash equivalents at (692) (6 200) 8 111 the end of the period STATEMENT OF CHANGES IN EQUITY Unaudited Unaudited Audited 6 months 6 months 12 months R"000 Dec 2003 Dec 2002 Jun 2003 Opening balance 85 091 72 596 72 596 Earnings attributable to 12 030 11 313 17 775 shareholders Dividend paid (4 165) - - Repurchase of share capital (976) - (5 280) Closing balance 91 980 83 909 85 091 Date: 18/02/2004 05:11:06 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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