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BCF - Bowler Metcalf Limited - Condensed unaudited results for the six months
ended 31 December 2008
BOWLER METCALF LIMITED
(registration number 1972/005921/06)
Share code: BCF
ISIN Code: ZAE000030800
CONDENSED UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31 December 2008
R mil
BALANCE SHEET 31/12/08 31/12/07 % 30/06/08
Property, plant and 187.6 175.5 172.2
equipment
Deferred tax 3.3 0.5 0.6
Goodwill 15.1 11.1 11.1
Investments 3.3 12.0 6.3
Current assets 196.4 167.5 167.5
TOTAL ASSETS 405.7 366.6 357.7
Total equity 280.4 269.0 265.7
Deferred tax 18.8 17.5 17.9
Long term liabilities 5.9 13.7 7.7
Current liabilities 100.6 66.4 66.4
TOTAL EQUITY AND LIABILITIES 405.7 366.6 357.7
INCOME STATEMENT
Revenue 241.4 216.0 +12 405.7
Other income 8.2 4.9 4.3
Operating costs -193.1 -162.5 -304.2
Depreciation and impairments -19.0 -16.3 -33.2
Net interest -2.1 -2.0 -3.1
Net profit before tax 35.4 40.1 69.5
Income tax expense -10.6 -10.3 -20.0
Net profit for the year 24.8 29.8 49.5
Attributable to minorities - -0.6 -0.2
Attributable to parent 24.8 29.2 49.3
EARNINGS PER SHARE
Earnings (c) 29.37 30.01 -2 56.18
Disposal of assets - - 0.01
Disposal of subsidiary - - -0.79
Impairment of investment 3.55 - -
Headline earnings (c) 32.92 30.01 +10 55.4
CHANGES IN EQUITY
Opening balance 265.7 243.5 243.5
Net profit 24.8 29.2 49.3
Shares issued / (treasury) -2.2 - -16.2
Dividends paid -7.9 -8.8 -17.0
Closing balance 280.4 263.9 259.6
Minority interest - 5.1 6.1
TOTAL EQUITY 280.4 269.0 +4 265.7
Share capital 21.5 21.5 21.5
Retained earnings 271.1 242.3 254.2
Minority interest 6.1 5.2 6.1
Treasury shares -18.3 - -16.1
CASH FLOW
Operating activities 7.8 20.1 66.3
Investing activities -26.9 -15.9 -30.3
Financing activities -12.9 4.5 -27.8
Net cash flow -32.0 8.7 8.2
Opening balance -5.4 -13.7 -13.6
Closing balance -37.4 -5.0 -5.4
SEGMENTAL ANALYSIS
Net profit
- plastic operations 24.8 22.8 +9 44.1
- filling operations -0.1 2.0 0.9
- property investment 3.1 1.7 +82 3.8
- unallocated and
eliminations -3.0 3.3 0.7
24.8 29.8 49.5
ADDITIONAL INFORMATION
Div/share paid (c) 9.3 9.3 19.45
Div/share proposed (c) 11.0 10.0 +10 17.9
Dividend cover (times) 2.67 3.0 3.14
Shares in issue (Millions) 84.454 88.294 87.537
COMMENT
A highly eventful half year produced a 10% increase in headline earnings per
share on a 12% increase in revenue to R241m. Relative to the beleaguered
packaging sector, the directors consider these results to be satisfactory.
Further company shares were repurchased to a total of 4,4m (5%), adversely
effecting our interest bill, but positively effecting our headline earnings.
Results include an abnormal R3m impairment of the Beige shares which we received
as part payment for the sale of Amcos. The sale of the Amcos Midrand property
was effected in January. The resulting substantial capital gain will be
reflected in the full year results.
PLASTICS
The dramatic drop in the price of raw materials gave a widely welcomed short
term relief to the packaging sector in December. Thankfully, some sanity
prevailed in an industry that has been renowned for suicidal pricing over the
last twenty four months and margins were restored, part of which will be carried
through for the full year. Included in the results was a loss of R2.3m arising
from the acquisition and restructuring of Gad-Tek in KZN. A significantly
smaller second half loss is anticipated. The new R17m investment in a laminate
tube line will slowly begin to be felt in the second period. Factory cost
reductions further improved margins, and this augurs well for the plastics
division.
FILLING
Quality Beverages in the Cape delivered a R5,1m profit before tax and including
incentives, despite the miserably wet opening four months. The very favourable
weather of 2009 promises further improvements. Gauteng/Mpumalanga continues to
be problematic, and a R4,1m loss was
recorded, giving a break even result for the six months. Significant personal
resources have been allocated to solve the problems here and we believe the full
year will be positive.
PROSPECTS
Economic alarm bells ring less loudly in the FMCG market, so the group is
quietly confident going forward. Profitability of all areas has a solid base and
forward orders are surprisingly robust. At the time of this report, the group
has a R45m cash war chest and believes that it is well positioned to deal with
the economic turmoil that our planet seems to have created. Dividends have been
increased by 10% to 11cps.
BASIS OF PREPARATION
The Financial statements are prepared in accordance with IFRS, AC500 and the
Companies Act in South Africa, and the condensed financial statements with IAS
34. Accounting policies are consistent with the previous reporting period.
DIVIDEND DECLARATION
An interim dividend of 11.0c per share has been declared (31/12/07: 10.0c) and
is payable to shareholders on Monday, 6 April 2009. The last day to trade will
be Friday, 27 March 2009. "Ex" dividend trading begins on Monday, 30 March 2009
and the record date will be Friday, 3 April 2009. Share certificates may not be
dematerialised or re-materialised between Monday, 30 March 2009 and Friday, 3
April 2009, both days inclusive.
H.W. SASS (Chairman)
M. BRAIN (Managing)
Cape Town, 9 March 2009
AUDITORS
Mazars Moores Rowland
Registered Auditor
Chartered Accountants (SA)
27th Floor, 1 Thibault Square, Cape Town, 8004
SPONSORS
Arcay Moela Sponsors (Pty) Ltd
3 Anerley Road
Parktown, 2193
TRANSFER SECRETARIES
Computershare Investor Services (Pty) Ltd
P.O. Box 61051
Marshalltown, 2108
11 March 2009
Date: 11/03/2009 17:30:02 Supplied by www.sharenet.co.za
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