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YRK - Yorkcor - Abridged audited results: year ended 31 December 2006
The York Timber Organisation Limited
Reg. No. 1916/004890/06
Share code: YRK
ISIN: ZAE000008108
Abridged audited results for the year ended 31 December 2006
Highlights
Revenue climbed 39% from R284 million to R394 million
Operating profit grew by 50% from R28,2 million to R42,2 million
Earnings per share up fourfold from 57 cents in 2005 to 284 cents in 2006
Sale of Tucker interest in Yorkcor to Blackstar Investors Plc and BEE
Outstanding performance
- Softer lumber markets
- Substantial log price increases - Flexible production processes
underpin the companies success
Moved away from litigation, strife and uncertainty surrounding sawlog
supplies
Acquired two plantations and rebuilt relationships with log suppliers
Several other plantation opportunities will be pursued
All litigation with Safcol and Komatiland settled
Condensed income statements
For the year ended 31 December 2006
Group Company
Audited Audited Audited Audited
2006 2005 2006 2005
R000 R000 R000 R000
Revenue 393 975 284 012 - -
Cost of sales (242 481) (154 - -
530)
Gross profit 151 494 129 482 - -
Other operating 6 649 4 157 - 20
income
Distribution expenses (6 883) (5 827) - -
Administrative (29 511) (31 595) (7 739) (6 041)
expenses
Other operating (79 476) (67 962) (1 387) (1 176)
expenses
Profit/(loss) from 42 273 28 255 (9 126) (7 197)
operations
Arbitration awards 3 273 (22 956) - -
reversal/(provision)
Profit/(loss) before 45 546 5 299 (9 126) (7 197)
finance costs
Financial income 2 066 8 812 1 267 2 333
Financial expenses (5 282) (1 449) (209) (1 684)
Income from - - 12 208 34 636
subsidiaries
Profit before 42 330 12 662 4 140 28 088
taxation
Income tax expense (11 014) (6 404) (1 021) (2 937)
Profit for the year 31 316 6 258 3 119 25 151
Attributable to:
Equity holders of the 31 316 6 258 3 119 25 151
parent
Basic and diluted 283,6 56,7
earnings per share -
cents
Dividends paid - - 250,0 - 250,0
cents
Condensed balance sheets
As at 31 December 2006
Group Company
Audited Audited Audited Audited
2006 2005 2006 2005
R000 R000 R000 R000
ASSETS
Total non-current 90 603 95 256 13 237 12 586
assets
Property, 65 801 63 894 993 1 064
plant,equipment and
vehicles
Biological assets 18 000 14 278 - -
Investment property 5 900 7 070 - -
Interest in - - 11 342 1 508
subsidiaries
Investments 902 10 014 902 10 014
Total current assets 138 564 68 019 489 801
Inventories 34 724 24 066 - -
Trade and other 59 909 35 246 78 148
receivables
Cash and cash 41 731 8 707 411 526
equivalents
Income tax receivable - - - 127
Non-current assets 2 200 - - -
held for sale
Total assets 229 167 163 275 13 726 13 387
EQUITY AND
LIABILITIES
Issued capital 552 552 552 552
Share premium 3 061 3 060 3 061 3 060
Retained earnings 100 294 68 834 7 134 3 871
Total equity 103 907 72 446 10 747 7 483
attributable to
equity holders of the
parent
Total non-current 50 060 32 070 339 4 536
liabilities
Interest bearing 32 757 14 735 - 9
loans and borrowings
Provisions 7 889 12 728 - -
Loan from subsidiary - - - 4 527
Deferred tax 9 414 4 607 339 -
liabilities
Total current 75 200 58 759 2 640 1 368
liabilities
Interest bearing 12 050 5 416 11 16
loans and borrowings
Provisions - 22 956 - -
Trade and other 57 676 29 645 2 085 1 352
payables
Income tax payable 5 474 742 544 -
Total equity and 229 167 163 275 13 726 13 387
liabilities
Statements of changes in equity
For the year ended 31 December 2006
Share Share Retained
capital premium earnings Total
R000 R000 R000 R000
Group
Balance at 1 January 552 3 060 90 177 93 789
2005
Dividends paid (27 601) (27
601)
Profit for the year 6 258 6 258
Balance at 31 552 3 060 68 834 72 446
December 2005
Profit for the year 31 316 31 316
Change in fair value 144 144
of available-for-sale
financial assets
Total recognised 31 460 31 460
income and
expenditure for the
year
Share issue 1 1
Balance at 31 552 3 061 100 294 103
December 2006 907
Company
Balance at 1 January 552 3 060 6 321 9 933
2005
Dividends paid (27 601) (27
601)
Profit for the year 25 151 25 151
Balance at 31 552 3 060 3 871 7 483
December 2005
Profit for the year 3 119 3 119
Change in fair value 144 144
of available-for-sale
financial assets
Total recognised 3 263 3 263
income and
expenditure for the
year
Share issue 1 1
Balance at 31 552 3 061 7 134 10 747
December 2006
Condensed cash flow statements
For the year ended 31 December 2006
Group Company
Audited Audited Audited Audited
2006 2005 2006 2005
R000 R000 R000 R000
Cash flows from
operating activities
Cash generated 8 015 15 633 (8 176) (6 124)
by/(utilized in)
operating activities
Net finance (4 391) 1 302 (117) 137
(expense)/income
Taxation paid (1 475) (18 091) (11) (3 329)
Income from 362 6 060 12 570 35 148
investments
Dividends paid - (27 601) - (27
601)
Net cash 2 511 (22 697) 4 266 (1 769)
inflow/(outflow) from
operating activities
Cash flows from
investing activities
Investment to
maintain operations:
Replacement of (2 549) (1 952) (76) (105)
equipment and
vehicles
Proceeds on disposal 783 80 - 20
of equipment and
vehicles
Acquisition of - (2 826) - (2 826)
investments
Disposal of 10 069 - 10 069 -
investments
Investment to expand
operations:
Investment in - - (14 1 645
subsidiaries 361)
Additions to (238) (1 278) - -
property, plant and
equipment
Additions to - (8 920) - -
biological assets
Reduction in purchase 2 000 - - -
consideration of
biological asset
Net cash 10 065 (14 896) (4 368) (1 266)
inflow/(outflow) from
investing activities
Cash flows from
financing activities
Loans and borrowings (8 433) (14 716)
repaid
Loans and borrowings 28 880 12 284 (14) (31)
raised
Issue of share 1 - 1 -
capital
Net cash 20 448 (2 432) (13) (31)
inflow/(outflow) from
financing activities
Net 33 024 (40 025) (115) (3 066)
increase/(decrease)
in cash and cash
equivalents
Cash and cash 8 707 48 732 526 3 592
equivalents at
beginning of year
Cash and cash 41 731 8 707 411 526
equivalents at end of
year
Earnings and headline earnings
For the year ended 31 December 2006
Group
Audited
2006 2005
R000 R000
Reconciliation of earnings to headline
earnings
Earnings and diluted earnings 31 316 6 258
- Surplus on disposal of equipment and (80) (12)
vehicles
- Increase in fair value of investment (1 381) (501)
property
- Increase in fair value of listed (578) (392)
investment
- Impairment of plant (213) (400)
Headline earnings and diluted headline 29 064 4 953
earnings
cents
cents
Earnings and diluted earnings 283,6 56,7
- Surplus on disposal of equipment and (0,7) (0,1)
vehicles
- Increase in fair value of investment (12,5) (4,5)
property
- Increase in fair value of listed (5,2) (3,6)
investment
- Impairment of plant (1,9) (3,6)
Headline earnings and diluted headline 263,2 44,9
earnings
Segmental report
For the year ended 31 December 2006
Business segments
(All amounts in thousands)
Sawn timber Merchandising
products
2006 2005 2006 2005
Revenue
External sales 233 168 196 437 160 807 87 575
Inter-segment sales 5 010 837
Total revenue 238 178 197 274 160 807 87 575
Result
Segment result 39 027 28 224 8 106 5 442
Unallocated expenses
Unallocated Income
Profit from operations
Arbitration awards
reversal/(provision)
Net finance costs
Income tax expense
Profit for the year
Other information
Segment assets 162 261 111 435 47 554 22 853
Unallocated corporate
assets
Consolidated total
assets
Segment liabilities 80 137 78 670 25 907 3 003
Unallocated corporate
liabilities
Taxation and deferred
taxation
Consolidated total
liabilities
Capital expenditure 6 132 10 235 864 239
Depreciation 4 532 4 263 236 45
Impairment losses on 300 400 0 0
tangible assets
Elimination Consolidated
2006 2005 2006 2005
Revenue
External sales 393 975 284
408
Inter-segment sales (5 010) (837) 0 0
Total revenue (5 010) (837) 393 975 284
408
Result
Segment result 0 0 47 133 33 665
Unallocated expenses (8 101) (6
583)
Unallocated Income 3 241 1 173
Profit from operations 42 273 28 255
Arbitration awards 3 273 (22
reversal/(provision) 956)
Net finance costs (3 216) 7 363
Income tax expense (11 (6
014) 404)
Profit for the year 31 316 6 258
Other information
Segment assets 209 815 134
288
Unallocated corporate 19 352 28 987
assets
Consolidated total 229 167 163
assets 275
Segment liabilities 106 044 81 673
Unallocated corporate 4 328 3 807
liabilities
Taxation and deferred 14 888 5 349
taxation
Consolidated total 125 260 90 829
liabilities
Capital expenditure 6 996 10 474
Depreciation 4 768 4 308
Impairment losses on 300 400
tangible assets
Note 4 Business and geographical segments
Business segments: the Company is organised into two major operating
divisions - Sawn timber products and merchandising. The divisions are the
basis on which the Company reports its primary segment information. The
sawn timber products segment produces and sells a broad range of structural
and industrial sawn timber products. The merchandising division buys and
sells timber related products on a wholesale basis.
Geographical segments: although the Company has two divisions the clients
and normal operations are in the Republic of South Africa.
Assets and additions to property, plant, equipment, and intangible assets
by geographical area: the tables above show the carrying amount of segment
assets and additions to property, plant, equipment, and intangible assets
by geographical area in which the assets are located:
Segment assets and liabilities: segment assets include all operating assets
used by a segment and consist principally of operating cash, receivables,
inventories and property, plant and equipment, net of allowances and
provisions. While most such assets can be directly attributed to individual
segments, the carrying amount of certain assets used jointly by two or more
segments is allocated to the segments on a reasonable basis. Segment
liabilities include all operating liabilities and consist principally of
accounts, wages, and taxes currently payable and accrued liabilities.
Segment assets and liabilities do not include deferred income taxes.
Inter-segment transfers: segment revenue, segment expenses and segment
result include transfers between business segments. Such transfers are
accounted for at competitive market prices charged to unaffiliated
customers for similar goods. Those transfers are eliminated in
consolidation.
Unusual item: no unusual items occurred.
Commentary
Following the general meeting on 20 February at which the Blackstar and BEE
transactions have been ratified the board has been reconstituted.
Dr Jurgen Kopp and Poenkie de Villiers resigned from the board on 20
February 2007. The non-executive chairman, Dr Tienie van Vuuren who, when
he assumed the role in 2006, indicated that he would be unavailable for re-
election, has also resigned from the board on 20 February 2007.
Jim Myers, Andrew Bonamour and William Marshall-Smith, all representing
Blackstar, were appointed as non-executive directors on 20 February 2007.
Ivor Tucker will retire as Chief Executive Officer after the Blackstar
offer closes (16 March 2007), and will become the Non-Executive Chairman of
the board. Lance Cooper, currently the operations director, will be
appointed the CEO.
On finalisation of the Yorkcor-Blackstar transaction. The Yorkcor board
will comprise eight directors, six of whom will be non-executive directors:
Jim Myers, Andrew Bonamour, William Marshall-Smith, Sally Motlana, Gay
Mokoena and Ivor Tucker (non-executive chairman), with two executive
directors - CEO Lance Cooper and Chief Financial Officer John Lehman.
Basis of accounting
The condensed consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards (IFRS) for
financial statements. The condensed consolidated financial statements do
not include all of the information required for full annual financial
statements.
Report of the auditors
KPMG Inc`s unmodified audit report on the 31 December 2006 annual financial
statements and the summarised financial statements contained herein is
available for inspection at the Company`s registered office.
For and on behalf of the board
Ivor Tucker Chairman and outgoing CEO
Lance Cooper Incoming CEO
Directors: I S D Tucker*, J K H Lehman*, L S Cooper*, J Myers, A Bonamour,
William Marshall-Smith, S Motlana and G Mokoena *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: 27/02/2007 13:06:05 Supplied by www.sharenet.co.za
Produced by the JSE SENS Department.
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