Wrap Text
HWN - howden - The summarised unaudited results for the six months ended 30 June
2008 are as follows:
Howden
Share code: HWN
ISIN: ZAE000010583
(Incorporated in the Republic of South Africa)
(Registration number 1996/002982/06)
("the Company" or "the Group")
The summarized unaudited results for the six months ended 30 June 2008 are as
follows:
Abridged consolidated income statement
Actual Actual Actual Actual
6 months 6 months % 12 months
ended ended change ended
30 30 31
June June December
2008 2007 2007
(Unaudited) (Unaudited) (Audited)
R`000 R`000 R`000
Revenue 387 111 300 614 28,8 686 367
Operating profit 46 576 36 770 26,7 88 979
from operations
Net finance 497 (2 353) (1 776)
income/(cost)
Foreign exchange 2 552 352 (132)
profit
Loss on disposal - (1 028) (1 028)
of associate
Share of results - 1 153 1 153
of associate
Profit before 49 625 34 894 42,2 87 196
income tax
Income tax (20 771) (10 906) (24 753)
expenses
Net profit for 28 854 23 988 20,3 62 443
the period
Attributable to:
Equity holders 28 854 23 229 61 684
of the Company
Minority - 759 759
interest
28 854 23 988 62 443
Number of shares (000`s) 65 729 65 729 65 729
in issue
Earnings per (cents) 43,90 35,34 24,2 93,85
share
Headline (cents) 43,88 36,89 19,0 95,42
earnings per
share
Dividends per (cents) 15,00 - -
share
Special dividend 100,00 - -
per share
Reconciliation
of headline
earnings
attributable to
the equity
holders of the
Company
Net profit for 28 854 23 229 61 684
the period
attributable to
equity holders
(Profit)/loss on (11) (9) 8
disposal of
property, plant
and equipment
Loss on disposal - 1 028 1 028
of associate
Headline 28 843 24 248 19,0 62 720
earnings
attributable to
equity holders
Abridged consolidated balance sheet
Actual Actual Actual
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2008 2007 2007
(Unaudited) (Unaudited) (Audited)
R`000 R`000 R`000
ASSETS
Non-current assets 131 955 114 080 131 974
Property, plant and equipment 44 686 35 585 43 217
Intangible assets 58 066 36 079 58 933
Deferred income tax assets 26 179 40 661 27 114
Retentions due 3 024 1 755 2 710
Current assets 353 614 244 964 241 605
Inventories 44 526 30 847 32 197
Trade and other receivables 239 784 146 918 189 367
Derivative financial 357 15 139
instruments
Cash and cash equivalents 68 947 67 184 19 902
Total assets 485 569 359 044 373 579
EQUITIES AND LIABILITIES
Capital and reserves 39 970 48 221 88 049
attributable to Company`s
equity holders
Minority interest - 2 603 -
Total equity 39 970 50 824 88 049
LIABILITIES
Non-current liabilities
Borrowings 47 141 50 000 20 000
Deferred income tax liabilities 7 132 16 227 11 412
Derivative financial - 75 -
instruments
Provisions for other 12 889 2 117 3 680
liabilities and charges
67 162 68 419 35 092
Current liabilities 378 437 239 801 250 438
Trade and other payables 277 198 216 670 238 439
Provisions and other 7 657 7 292 6 199
liabilities and charges
Derivative financial 87 640 102
instruments
Shareholders for dividend 65 729 - -
Current income tax liabilities 23 311 7 704 5 082
Borrowings 4 455 7 495 616
Total liabilities 445 599 308 220 285 530
Total equity and liabilities 485 569 359 044 373 579
Other group salient features
Actual Actual Actual Actual
6 months 6 months % 12 months
ended ended change ended
30 June 30 June 31 December
2008 2007 2007
(Unaudited) (Unaudited) (Audited)
R`000 R`000 R`000
Net asset value per 60,81 73,36 (17,1) 133,96
share (cents)
Depreciation 1 579 1 740 3 312
Amortisation 988 952 1 881
Capital expenditure 3 709 2 034 11 311
Capital commitments
Authorised and 6 696 5 572 -
contracted
Authorised not 1 789 4 641 4 685
contracted
Abridged consolidated cash flow statements
Actual Actual Actual
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2008 2007 2007
(Unaudited) (Unaudited) (Audited)
R`000 R`000 R`000
Cash flow from operating
activities
Cash generated by operations 51 684 39 636 94 077
Utilised to (13 867) 9 599 (13 653)
(increase)/decrease working
capital
Cash generated from operating 37 817 49 235 80 424
activities
Interest paid (3 698) (5 704) (11 228)
Income tax paid (5 887) (10 786) (18 523)
Cash inflow from operating 28 232 32 745 50 673
activities
Cash (outflow)/inflow from (308) 152 2 645
investing activities
Cash inflow/(outflow) from 21 121 (8 012) (75 715)
financing activities
Net increase/(decrease) in 49 045 24 885 (22 397)
cash and cash equivalents
Cash and cash equivalents at 19 902 42 299 42 299
beginning of period
Cash and cash equivalents at 68 947 67 184 19 902
end of period
Abridged consolidated statement of changes in equity
Attributable
to equity
holders
of the Minority Total
Company interest equity
Balance at 1 January 2007 26 166 8 850 35 016
Currency translation (1 174) - (1 174)
differences
Profit for the period 23 229 759 23 988
Dividends paid - (7 006) (7 006)
Dividend and return of share
premium proposed - - -
Balance at 30 June 2007 48 221 2 603 50 824
Balance at 1 July 2007 48 221 2 603 50 824
Currency translation 1 373 - 1 373
differences
Profit for the period 38 455 - 38 455
Dividends paid - - -
Minority interest acquired - (2 603) (2 603)
Balance at 31 December 2007 88 049 - 88 049
Balance at 1 January 2008 88 049 - 88 049
Currency translation (1 345) - (1 345)
differences
Profit for the period 28 854 - 28 854
Dividends paid (75 588) - (75 588)
Balance at 30 June 2008 39 970 - 39 970
Actual Actual Actual
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2008 2007 2007
(Unaudited) (Unaudited) (Audited)
R`000 R`000 R`000
Revenue
FANS AND HEAT EXCHANGERS 269 126 206 112 458 031
ENVIRONMENTAL CONTROL 117 985 94 502 228 336
387 111 300 614 686 367
For information only.
Orders receivable
FANS AND HEAT EXCHANGERS 307 363 272 741 556 785
ENVIRONMENTAL CONTROL 299 346 172 036 216 915
606 709 444 777 773 700
Commentary
OVERVIEW
Order book levels have continued to benefit from rising demand for capital
equipment in markets traditionally focused on by Group companies. Order intake
for the six months to June 2008 is reported at R606,7 million compared to R444,7
million for the corresponding period last year, an improvement of 36%. The
environmental control business, in particular, has seen benefit from the
expansion of technologies available to meet demand at the high end of the gas
cleaning market.
RESULTS
In the six months ended 30 June 2008 Revenue of R387,1 million compares to
R300,6 million in the corresponding period last year. Strong growth in Revenue
is reported in both the fans and heat exchangers and environmental control
divisions resulting from the strong opening order books at the start of the
year.
Group operating profit from operations of R46,6 million is reported for the
period to 30 June 2008, against R36,8 million reported for the six months to
June last year. Higher volumes connected to the sale of new equipment account
principally for the favourable movement in the results under review.
Earnings per share of 43,90 cents compare with 35,34 cents last year, after
accounting for a secondary tax on companies charge of R6,6 million (10,00 cents
per share) in respect of the special dividend of 100,0 cents per share declared
on 5 June 2008. Excluding the effect of STC, earnings per share reflect an
increase of 52% over last year.
A net cash position of R17,4 million compares with the net borrowings of R0,7
million reported at the end of December 2007. Cash generated by operations of
R51,7 million compares to R39,6 million generated in the period to June 2007.
ACCOUNTING POLICIES
The interim results to June 2008 have been prepared in accordance with
International Financial Reporting Standards (IFRS), in a manner consistent with
the prior year and in accordance with IAS 34.
REVIEW OF OPERATIONS
FANS AND HEAT EXCHANGERS
Order intake for fans and heat exchangers totalled R307,4 million compared to
R272,7 million in the corresponding period last year. A strong opening order
book in terms of new equipment sales to the mining market and continuing
business associated with Eskom`s RTS programme helped increase Revenue over the
period under review. There has, however, been a reduction in new equipment
orders from the mining market over the course of the year.
A strong order book exists at the half year and given a fair success ratio in
converting available prospects this position should be maintained through the
year.
ENVIRONMENTAL CONTROL
The environmental control business received orders totalling R299,3 million
compared to R172,0 million last year. Efforts aimed at increasing the portfolio
of gas cleaning technologies necessary to position the business strongly in the
high end of the market have resulted in a rising order book and improvement in
Revenue compared to last year. Large value orders totalling R225 million were
processed in the period connected to both Eskom and ArcelorMittal`s ongoing
efforts to improve the efficiency of their respective exhaust gas cleaning
plant.
The division continues to build on initiatives implemented over the last two
years and is well placed to respond to increasing demands for environmental
control equipment.
OUTLOOK
Order book levels have continued to grow over the first half of this year and
given a fair success ratio in converting available prospects should result in
the position remaining strong through to year end. The Company remains close to
developments associated with Eskom`s new build programme and the extent to which
these efforts lead to positive outcomes will largely influence the Group`s
ability to grow earnings in the longer term.
DIVIDENDS
As previously reported, the financial position of the Company allows for the
reintroduction of regular dividend payments. The directors have resolved to
declare an interim dividend of 10 cents per share payable to shareholders. The
last date to trade cum dividend is Friday, 12 September 2008. Shares start
trading ex dividend on Monday, 15 September 2008. The record date is Friday, 19
September 2008. Payment will be on Monday, 22 September 2008. No share
certificates are to be dematerialised or rematerialised between Monday, 15
September 2008 and Friday, 19 September 2008, both days inclusive.
DIRECTORATE
The board has decided to strengthen the executive profile of the Group and is
pleased to announce the appointment of Thomas Barwald as Chief Executive. Shane
Meyer will continue operating in his capacity as Group Financial Director.
REVIEW INTERIM RESULTS - AUDITORS` OPINION
The company`s auditors, PricewaterhouseCoopers Inc, have not reviewed or audited
these results for the six months ended 30 June 2008.
For and on behalf of the Board of Directors.
RJ Cleland S Meyer
(Chairman) (Chief Operating Officer)
29 August 2008
RJ Cleland (Chairman)#**
S Meyer (Chief Operating Officer)
AB Mashiatshidi**, J Brown #**, M Malebye**
(# British ** Non-executive)
Company secretary: M Luthuli
Registered office: 1a Booysens Road, Booysens, 2091
Postal address: PO Box 2239, Johannesburg, 2000
Transfer secretaries: Computershare Investor Services (Pty) Limited, 70 Marshall
Street
Johannesburg, 2001
Sponsor: PricewaterhouseCoopers
Corporate Finance (Pty) Limited
Date: 29/08/2008 17:05:01 Supplied by www.sharenet.co.za
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