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ISB - Insimbi - Restated forecast results for the year ended 28 February 2009 INSIMBI REFRACTORY AND ALLOY SUPPLIES LTD (Incorporated in the Republic of South Africa) (Registration No: 2002/029821/06) Share code: ISB & ISIN code: ZAE000116828 ("Insimbi" or "the company") - Revenue increased by 25.68% - Gross Profit increased by 82.53% - Operating Profit increased by 90.74% - Profit before Taxation increased by 104.57% - EPS increased by 149.90% - HEPS increased by 196.52% With reference to the forecast financial information in the pre-listing statement of Insimbi and the subsequent trading update published on 16 July 2008, the company has restated the forecast for the year ended 28 February 2009. CONSOLIDATED FORECASTED INCOME STATEMENT FOR THE PERIOD ENDED 28 FEBRUARY 2009 Unaudited Forecasted Forecasted Audited 6 months 6 months 12 months 12 months to to To 28 To 28 29 February 31 February February 2008
August 2009 2009 R`000 2008 R`000 R`000 R`000
Revenue 584 110 543 783 1 127 893 897 428 Cost of sales (498 964) (476 640) (975 604) (813 996) _________ _________ _________ _________ Gross profit 85 146 67 143 152 289 83 432 Other operating 595 274 869 4 395 income Administration (21 882) (20 034) (41 916) (21 424) expenses Other operating (5 002) (4 252) (9 254) (12 936) expenses _________ _________ _________ _________ Operating profit 58 857 43 131 101 988 53 467 Interest received 75 76 151 190 Finance costs (4 037) (6 319) (10 356) (15 670) _________ _________ _________ _________ Profit before 54 895 36 888 91 783 37 987 share of associated company`s profit Share of (175) 253 78 1 449 associated company`s profit Minority share of 807 (807) - - subsidiary Profit on disposal - - - 5 469 of associate _________ _________ _________ _________ company Profit before 55 527 36 334 91 861 44 905 taxation Taxation (16 379) (9 075) (25 454) (18 346) _________ _________ _________ _________ Profit for the 39 148 27 259 66 407 26 559 year _________ _________ _________ _________ Attributable to: Equity holders of 39 148 27 259 66 407 26 559 the parent Minority interest - - - - _________ _________ _________ _________ Unaudited Forecasted Un audited Audited 6 months 6 months 12 months 12 months to
to To 28 To 28 29 February 31 February February 2008 August 2009 2009 R`000 2008 R`000 R`000
R`000 Number of shares 260 000 260 000 260 000 260 000 on listing (000`s) Earnings and diluted earnings 15,06 10,48 25,54 10,22 per share (cents) Headline and diluted headline 15,05 10,48 25,53 8,61 earnings per share (cents) Reconciliation between earnings and headline earnings per share (cents): Profit 39 148 27 259 66 407 26 559 attributable to ordinary shareholders Adjusted for profit on sale of (21) - (21) (142) property, plant and equipment Profit on Disposal of (-) - - (4 019) Investment in AMETSA _________ _________ _________ _________
Headline earnings 39 127 27 259 66 386 22 398 _________ _________ _________ _________ Main assumptions and comments on the forecast financial information Assumptions considered to be significant are disclosed below, however, the assumptions disclosed are not intended to be an exhaustive list. Assumptions that are under the control of the directors: Forecast revenue for 2009 is based on the directors` best estimates for the 6 months remaining of the current financial year which take into account market trends over the financial year as well as historic trends over the same period over the last 5 years. Over 50% of the forecast turnover for 2009 is certain. The forecast to 28 February 2009 includes interim results at 31 August 2008 The directors have made their best efforts to accurately forecast prices and volumes of commodities pertinent to their respective industry sectors. No revenue amount forecast for the remainder of 2009 is certain. Revenue has grown at an annual rate in excess of 20% per annum historically. Gross profit %`s are commodity and division specific and have been forecast per commodity based on the directors best estimate assumptions based on historical experience and future expectations of commodity prices. Gross Profit Margins are expected to decline in the second half of the year but are expected to remain above margins experienced in the 2008 year. Operating costs have been forecast taking into account factors such as historical trends, inflation, assumed growth of the business and improvements in infrastructure to accommodate such growth eg new staff Taxation has been provided for at 28% No allowance for revenue growth arising from any strategic company acquisitions has been allowed for in the forecast. Allowance has also been made for the effect of Insimbi`s 49% shareholding in it`s associate ("Insimbi Thermal Insulation (Pty) Ltd") including rental and management fee revenue. Allowance has also been made for the effect of Insimbi`s 100% shareholding in it`s subsidiary ("Insimbi Aluminium Alloys (Pty) Ltd") including rental and management fee revenue. We have assumed production and sales of 650 tons of finished aluminum products per month which is approximately 50% of the capacity of the plant. The company enters into forward exchange contract or hedging arrangements on all imports but we have assumed a foreign exchange loss due to unavoidable extensions of R902,000 in 2009 That credit control will remain strong and we will experience no significant doubtful debts during the course of the 2009 financial year. That in line with previous years, we will provide R3.0 million write-down for slow moving stock. This is in line with our policy of writing all stock over 365 days old, down to 1 cent. Assumptions that are outside the control of the directors: Interest rates and exchange rates will not vary materially in the forecast periods and we have assumed a prime interest rate of 15.5% per annum and an average exchange rate of R7.50 : US$1.00 Trading conditions are not expected to vary materially in the forecast periods. That there will be no material change to the business of Insimbi or in the manner in which it conducts it`s business That there will be continuity in it`s management and trading policies, these have been successful in the past and we expect them to remain so in the future. 29 September 2008 Designated Advisor: PricewaterhouseCoopers Corporate Finance (Proprietary) Limited Date: 29/09/2008 09:10:02 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
