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THE YORKOR TIMBER ORGANISATION LIMITED - INTERIM REPORT FOR THE SIX MONTHS TO 30

Release Date: 20/09/2004 14:01
Code(s): YRK
Wrap Text

THE YORKOR TIMBER ORGANISATION LIMITED - INTERIM REPORT FOR THE SIX MONTHS TO 30 JUNE 2004 THE YORKOR TIMBER ORGANISATION LIMITED Reg. No. 1916/004890/06 Share code: YRK ISIN: ZAE000008108 INTERIM REPORT FOR THE SIX MONTHS TO 30 JUNE 2004 Group income statements Unaudited Audited
30 June 31 December 2004 2003 2003 R000 R000 R000 Revenue 66 893 52 924 116 796 Cost of sales (32 700) (21 041) (59 002) Gross profit 34 193 31 883 57 794 DWAF compensation award - - 28 385 Staff costs (15 871) (14 343) (32 133) Depreciation (1 616) (1 306) (2 871) Other operating expenses (13 645) (11 367) (12 227) Profit from operations 3 061 4 867 38 948 Legal costs (649) (1 143) (1 762) Increase in net policy value of sinking fund - - 419 Profit before finance costs 2 412 3 724 37 605 Finance costs (707) (312) (1 679) Profit before taxation 1 705 3 412 35 926 Taxation (511) (992) (2 001) Profit after taxation 1 194 2 420 33 925 Minority shareholders" interest - (199) (446) Net profit for the period 1 194 2 221 33 479 Reconciliation of earnings and headline earnings Net profit for period 1 194 2 221 33 479 Profit on sale of fixed assets 32 569 1 226 DWAF compensation award - - 28 385 Increase in fair value of investment property - - 2 769 Headline profit for period 1 162 1 652 1 099 Notes to the financial statements Unaudited Audited 30 June 31 December
2004 2003 2003 1. Earnings per share (cents) 10,8 20,1 303,2 2. Headline earnings per share (cents) 10,5 14,9 9,9 3. Capital expenditure for the period (R000) 474 5 435 6 947 4. Capital expenditure committed (R000) - - - 5. Capital expenditure authorised (R000) - - - 6. Shares in issue (000) 11 040 11 040 11 040 7. Net asset value per share (cents) 772 526 761 8. Gearing (%) (56) 6 8 9. Current ratio (ratio) 2,53 1,03 2,73 Group balance sheets Unaudited Audited 30 June 31 December 2004 2003 2003 R000 R000 R000
ASSETS Non-current assets Property, plant, equipment and vehicles 59 579 60 502 60 722 Investments 2 274 1 908 2 274 Long-term receivables 5 631 5 631 5 631 Sinking fund - 3 207 - 67 484 71 248 68 627 Current assets 77 168 32 170 71 705 Inventories 10 711 11 013 10 928 Accounts receivable 23 030 16 408 17 925 Bank balances and cash 43 427 4 749 5 414 DWAF award - - 37 438 Total assets 144 652 103 418 140 332 EQUITY AND LIABILITIES Capital and reserves Share capital 3 612 3 612 3 612 Non-distributable reserves 18 209 21 159 18 629 Accumulated profits 63 390 29 301 61 776 Ordinary shareholders" funds 85 211 54 072 84 017 Minority shareholders" interest in subsidiary - 4 000 - Total shareholders" funds 85 211 58 072 84 017 Non-current liabilities 28 965 13 973 30 049 Interest bearing borrowings 9 295 2 700 10 379 Deferred taxation 10 617 11 273 10 617 Shut down costs 9 053 - 9 053 Current liabilities 30 476 31 373 26 266 Accounts payable 26 468 24 531 22 519 Taxation 368 763 1 653 Short-term borrowings 3 640 6 079 2 094 Total equity and liabilities 144 652 103 418 140 332 Abridged group cash flow statements Unaudited Audited 30 June 31 December 2004 2003 2003 R000 R000 R000
Cash generated by operating activities 40 495 (1 390) (1 658) Finance costs (707) (511) (2 125) Dividends and tax paid (1 796) (401) (486) Net cash inflow/(outflow) from operating activities 37 992 (2 302) (4 269) Net cash outflow from investing activities (441) (5 031) (5 265) Net cash inflow from financing activities 462 4 926 7 792 Net increase/(decrease) in bank balances and cash 38 013 (2 407) (1 742) Bank balances and cash at beginning of year 5 414 7 156 7 156 Bank balances and cash at end of period 43 427 4 749 5 414 Statements of changes in equity Unaudited - at 30 June Share Share Non-distributable capital premium reserve Balance at 31 December 2002 552 3 060 21 579 Depreciation on asset revaluations reversed (416) Expenses of non-revenue producing subsidiaries (4) Net profit for the period Balance at 30 June 2003 552 3 060 21 159 Balance at 31 December 2003 552 3 060 18 629 Depreciation on asset revaluations reversed (420) Net profit for the period Balance at 30 June 2004 552 3 060 18 209 Statements of changes in equity Unaudited - at 30 June Accumulated profit Total Balance at 31 December 2002 26 660 51 851 Depreciation on asset revaluations reversed 416 - Expenses of non-revenue producing subsidiaries 4 - Net profit for the period 2 221 2 221 Balance at 30 June 2003 29 301 54 072 Balance at 31 December 2003 61 776 84 017 Depreciation on asset revaluations reversed 420 - Net profit for the period 1 194 1 194 Balance at 30 June 2004 63 390 85 211 COMMENTARY The modest decline in Yorkcor"s results for the half-year to 30 June 2004 should be read in the context of far reaching changes which the timber industry is undergoing. A contributing factor was engineering problems experienced at the group"s newly acquired sawmills in the Mpumalanga Highlands. These mills are now operating satisfactorily and, in the case of the larger sawmill, profit performance has been good. On 9 September 2004, the Supreme Court of Appeal reversed a judgment of the High Court and upheld Safcol"s cancellation of Yorkcor"s "evergreen" contracts of forty years standing. All sawmillers who also held such contracts had already relinquished their indefinite log supply rights more than five years ago. This was to make way for the privatisation of the state"s forestry assets. At this very time, the Competition Commission is asked to sanction a merger, which will create a monopoly controlling about 75% of the total softwood sawlog resources in Mpumalanga and Limpopo. There is widespread opposition in the industry to the concentration of such market power. During the half year under review, the group received an amount of R37 438 498,00 from the government in compensation for the termination of a long term sawlog contract in respect of three plantations near Bushbuckridge. The payment was in terms of an arbitrator"s award which was made an order of the High Court on 22 April 2004. National figures have shown no growth in the volume of sales in the year to 30 June 2004 which stems from a shortage of logs. Yorkcor has coped well in these challenging circumstances. The domestic demand for product is good and it is likely to remain so for some time. Two court cases are pending which relate to Safcol"s claims and Yorkcor"s counter-claims, which could take years to finalise although the commitment to resolve the remaining disputes is a matter of public record. Yorkcor enters the second half-year with a robust balance sheet, a full order book and innovative plans for the road ahead. We expect satisfactory results for the rest of 2004. BASIS OF ACCOUNTING These results are prepared in accordance with South African Statements of Generally Accepted Accounting Practice and the accounting policies used in the preparation of the year end financial statements have been consistently applied. Solly Tucker Chairman 20 September 2004 Directors: S Tucker*, I S D Tucker*, A C de Villiers*, Dr M J C van Vuuren, L S Cooper*, Dr J Kopp, S Motlana, *Executive directors Company Secretary: J F Dekker Registered Office: 5th Floor, Yorkcor Park 86 Watermeyer Street Val de Grace Pretoria 0184 PO Box 380, Pretoria 0001.
Transfer Secretaries: Computershare Investor Services 2004 (Proprietary) Limited 70 Marshall Street Johannesburg 2001
PO Box 61051, Marshalltown 2107. Date: 20/09/2004 02:01:45 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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