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Bowler Metcalf - Unaudited Results For The 6 Months Ended 31 December 2005 Bowler Metcalf Limited REG NO: 1972/005921/06 ALPHA CODE : BCF ISIN CODE: ZAE000030797 Revenue + 24% Headline Earnings + 13% Net Asset Value + 23% Proposed Dividends + 13% CONDENSED UNAUDITED RESULTS FOR THE 6 MONTHS ENDED 31 DECEMBER 2005 Rmil 31 December 31 December 30 June 2005 2005 2004
BALANCE SHEET Property, plant and 181.8 139.9 164.4 equipment Goodwill 5.4 5.4 5.4 Current assets 47.5 122.2 114.7 Total assets 334.7 267.5 284.5 Total equity 198.2 161.3 178.4 Deferred tax 15.4 8.0 13.0 Long term liabilities 22.2 10.7 8.8 Current liabilities 98.9 87.5 84.3 Total equity and 334.7 267.5 284.5 liabilities CHANGES IN EQUITY Opening balance 169.6 137.7 137.7 Net profit - IFRS 25.6 22.7 44.4 Net profit - SA GAAP 22.4 43.8 IFRS adjustment 0.3 0.6 business combination Dividends paid -6.6 -5.7 -12.5 Closing balance 188.6 154.7 169.9 Minority interest 9.6 6.6 8.8 Total equity 198.2 161.3 178.4 Share capital 11.0 11.0 11.0 Retained earnings 177.6 143.7 158.6 Minority interest 9.6 6.6 8.8 CASH FLOW Operating activities 19.2 -4.3 23.0 Investing activities -28.0 -15.9 -49.8 Financing activities 13.5 - -11.4 Net cash flow 4.7 -20.2 -38.2 Opening balance -38.6 -0.4 -0.4 Closing balance -33.9 -20.6 -38.6 INCOME STATEMENT Revenue 213.3 172.5 352.5 Other income 2.9 2.0 6.9 Operating costs -164.2 -127.3 -266.4 Depreciation -10.8 -9.8 -19.7 Net interest -2.0 -1.1 -3.1 Net profit before tax 39.2 36.3 70.2 Income tax expense -12.3 -11.6 -21.6 Net profit after tax 26.9 24.7 48.6 Minority interest -1.3 -2.0 -4.2 Net profit 25.6 22.7 44.4 EARNINGS PER SHARE Earnings (SA GAAP) 25.81 50.38 (cents) IFRS adjustment - 0.35 0.70 business combination Earnings (IFRS) 29.5 26.16 51.08 (cents) Sale of assets - - -0.46 Headline earnings 29.5 26.16 50.62 (cents) ADDITIONAL INFORMATION Div/share paid 7.6 6.6 14.4 (cents) Div/share proposed 8.8 7.8 15.4 Dividend cover 3.35 3.35 3.29 (times) Shares in issue 86.794 86.794 86.794 (millions) COMMENT A 13% increase in group earnings was satisfactory, given the trading climate and the reduced performance of subsidiaries. The 24% rise in revenue was on budget and accurately reflects the greater group critical mass. Gearing marginally increased to 34% to take advantage of the low interest environment and R28m was invested in group activities, primarily to finance the additional assets of the subsidiaries. Bowler Plastics maintained their solid performance, recording a 16% earnings rise, despite the continued margin squeeze caused by high raw material prices and the resistance of customers to accept price increases. These price increases were settled at year-end and this augers well for the second half of the year. Factory output at Quality Beverages was at record levels but unfortunately, the wet and windy summer weather reduced demand for carbonated soft drinks and the inevitable price reductions followed. This radically reduced margins, resulting in Quality Beverages recording a drop in earnings of 35%. Thankfully, price relief came in mid January 2006 and the second six months is likely to be stronger than the first. Amcos Cosmetics operated from their new factory for the six months and increased their revenue by a commendable 220%. However, the associated commissioning costs and bedding in of the new plant meant that they achieved no more than a near breakeven situation. This was budgeted for and an improved second half is anticipated. Group results for the full year are expected to be stranger than for the first half, provided that that electricity outages in the Western Cape are contained. BASIS OF PREPARATION The Financial statements are prepared in accordance with IFRS (transition date 1 July 2004) and the Companies Act in South Africa, the condensed interim financial statements with IAS 34. The first time adoption of IFRS has resulted in a change in accounting policy of intangible assets. Previously goodwill arising on business combinations was amortised on a straight-line basis over the useful life. Under IFRS 3, IAS 36 & 38, these assets are not amortised, but subject to an annual impairment review. The resultant adjustments are reflected in the Changes In Equity and Earnings Per Share Statements above. Other accounting policies are consistent with the previous reporting period. DIVIDEND DECLARATION An interim dividend of 8.8c per share has been declared (31/12/04 : 7.8c) and is payable to shareholders on Monday, 3 April 2006. The last day to trade will be Friday, 24 March 2006. "Ex" dividend trading begins on Monday, 27 March 2006 and the record date will be Friday, 31 March 2006. Share certificates may not be dematerialised or re-materialised between Monday, 27 March 2006 and Friday, 31 March 2006, both days inclusive. H.W. SASS (Chairman) M. BRAIN (Managing Director) Cape Town, 6 March 2006 SPONSOR LPC Manhattan Moela (Pty) Ltd 4th Floor, Hyde Park Corner Jan Smuts Avenue, Hyde Park Johannesburg, 2196 AUDITORS Moores Rowland Registered Auditors and Accountants Chartered Accountants (SA) 27th Floor, 1 Thibault Square Cape Town, 8001 TRANSFER SECRETARIES Computershare Investor Services 2004 (Pty) Ltd P.O. Box 61051, Marshalltown, 2107 Date: 03/03/2006 04:00:09 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department
