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TPC - Transpaco - Unaudited interim group results for the 6 months ended 31
December 2009 and dividend announcement
Transpaco Limited
Reg. No. 1951/000799/06
ISIN: ZAE000007480
Share Code: TPC
UNAUDITED INTERIM GROUP RESULTS FOR THE 6 MONTHS ENDED 31 DECEMBER 2009 AND
DIVIDEND ANNOUNCEMENT
HEADLINE EARNINGS PER SHARE UP 18%
DIVIDEND PER SHARE UP 56%
NET ASSET VALUE UP 22%
INTRODUCTION
Transpaco continued its growth delivering pleasing results for the six months
ended 31 December 2009 ("the period"). The benefit of organic growth supported
by a substantial reduction in net interest paid is reflected in these results.
FINANCIAL RESULTS
Earnings per share ("EPS") increased by 17,7% to 124,9 cents (December 2008:
106,0 cents). Headline earnings per share increased by 17,7% to 124,6 cents
(December 2008: 105,9 cents). The reduction in turnover by 4,4% to R432,4
million (December 2008: R452,2 million) was a result of deflation in polymer
prices. Due to increased efficiency operating profit grew by 5,5% to R53,6
million (December 2008: R50,8 million). The group`s operating costs were well
contained and increased in line with operational needs.
The reduction of R5,7 million in net interest paid resulted from strong cash
flows. Interest cover improved to 18,3 times (December 2008: 5,9 times).
Stringent asset control and the group`s profitability resulted in the net
interest-bearing debt:equity ratio improving to 6% (December 2008: 53%).
Inventory was down from R65,7 million to R59,4 million, a reduction of 10%.
Trade and other receivables was down from R170 million to R147 million, a
reduction of 13,5%. Net cash increased from R2,8 million to R58,3 million.
The ranking and weighted number of shares in issue increased marginally due to
shares being taken up in terms of the Transpaco Share Option Scheme. This had
a minimal effect on diluted EPS. Net asset value per share increased by 22,3%
to 730 cents (December 2008: 597 cents).
PROSPECTS
Notwithstanding prevailing economic conditions the group will continue in its
endeavours to achieve further growth. The group is pursuing appropriate
acquisitions.
DIVIDEND
The board has declared an interim cash dividend of 25 cents per share
(December 2008:16,5 cents per share), representing a 56% increase on the
comparative period. The declaration of the interim dividend does not
represent a deviation from the group`s historical dividend policy. It is
motivated by the board`s decision to reduce the historical disparity between
interim and final dividends, subject to maintaining consistent dividend cover
year-on-year.
Last date to trade shares cum dividend Thursday, 18 March 2010
Shares trade ex dividend Friday, 19 March 2010
Record date Friday, 26 March 2010
Payment date Monday, 29 March 2010
Share certificates may not be dematerialised or rematerialised between Friday
19 March 2010, and Friday 26 March 2010, both days inclusive.
BASIS OF PREPARATION AND ACCOUNTING POLICIES
The unaudited interim financial results for the period are prepared in
accordance with International Financial Reporting Standards (IFRS) and IAS 34
- Interim Financial Reporting, and comply with the Listings Requirements of
the JSE Limited and the South African Companies Act, 1973.
The accounting policies applied in these unaudited interim financial
statements are consistent in all material respects with those applied in the
preparation of the group`s annual financial statements for the previous year
ended 30 June 2009, save for the adoption of new Standards and
interpretations. The following two Standards had an impact for the period.
Other Standards and interpretations that were issued did not have any impact
on Transpaco.
- IAS 1 (Revised) Presentation of Financial Statements - The group has
adopted IAS 1 (Revised) which is effective for financial periods
beginning on or after 1 January 2009. The amendment mandates requirements
for the presentation of financial statements on the basis of shared
characteristics.
- IFRS 8 Operating segments - The group has adopted IFRS 8 Operating
Segments which is effective for financial periods beginning on or after 1
January 2009. This Standard requires the disclosure of information based
on the "management approach" to reporting on the financial performance of
operating segments.
ON BEHALF OF THE BOARD
AJ Aaron PN Abelheim L Weinberg
Non-executive Chief Executive Financial Director
Chairman
SEGMENTAL ANALYSIS - UNAUDITED 6 MONTHS DECEMBER 2009 AND 6 MONTHS DECEMBER
2008
R`000 Plastic Paper and Properties Total
Products Board and Group
Products Services
Turnover - 2009 334 936 97 481 - 432 417
Revenue to external 352 703 104 992 - 457 695
customers
Less revenue to 17 767 7 511 - 25 278
internal customers
Turnover - 2008 360 040 92 120 - 452 160
Revenue to external 377 553 97 205 - 474 758
customers
Less revenue to 17 513 5 085 - 22 598
internal customers
Operating profit - 41 161 12 195 244 53
2009 600
Operating profit - 36 11 745 2 724 50 829
2008 360
STATEMENT OF COMPREHENSIVE INCOME
R`000 Unaudited Unaudited Audited
6 months 6 months 12 months
Dec 2009 % Dec 2008 June 2009
Turnover 432 417 (4,4) 452 160 802 987
Cost of sales 265 825 300 705 521 997
Profit before operating 166 592 10,0 151 455 280 990
costs and depreciation
Operating costs 100 579 88 378 175 544
Depreciation 12 413 12 248 24 611
Operating profit 53 600 5,5 50 829 80 835
Net interest paid 2 923 8 611 14 016
Profit before taxation 50 677 20,0 42 218 66 819
Taxation 15 551 12 730 20 096
Profit after taxation 35 126 19,1 29 488 46 723
Other comprehensive - - -
income
Total comprehensive 35 126 19,1 29 488 46 723
income
Weighted average number 28 131 27 806 27 870
of shares in issue (`000)
Diluted weighted average 31 768 31 461 31 416
number of shares in issue
(`000)
Earnings per share 124,9 17,7 106,0 167,6
(cents)
Headline earnings per 124,6 17,7 105,9 167,1
share (cents)
Diluted earnings per 111,0 16,7 95,1 149,9
share (cents)
Diluted headline earnings 110,8 17,7 94,1 149,4
per share (cents)
Dividend per share - 16,5 48,0
(cents)*
Reconciliation of headline earnings (R`000)
Basic earnings 35 126 29 488 46 723
Profit on disposal of (71) (54) (154)
property, plant and
equipment
Headline earnings 35 055 19,1 29 434 46 569
*Dividend declared after the period.
CAPITAL COMMITMENTS
R`000 Unaudited Unaudited Audited
6 months 6 months 12 months
Dec 2009 Dec 2008 June 2009
Capital expenditure
authorised and contracted
Plant and equipment 9 994 - 177
STATEMENT OF FINANCIAL POSITION
R`000 Unaudited 6 Unaudited 6 Audited
months months 12 months
Dec 2009 Dec 2008 June 2009
ASSETS
Non-current assets 147 643 158 697 152 743
Property, plant and 142 298 149 281 144 702
equipment
Intangibles 482 482 482
Goodwill 3 204 3 204 3 204
Unlisted investments 1 376 3 673 4 123
Deferred taxation 283 2 057 232
Current assets 267 355 261 400 254 499
Inventories 59 398 65 751 69 651
Trade and other 146 914 169 538 114 379
receivables
Taxation receivable 2 719 2 190 5 004
Cash at bank and in hand 58 324 23 921 65 465
TOTAL ASSETS 414 998 420 097 407 242
EQUITY AND LIABILITIES
Capital and reserves 214 639 175 369 188 266
Issued capital 281 278 281
Other reserves 405 1 965 341
Preference shareholders` 9 273 9 273 9 273
interest
Distributable reserve 204 680 163 853 178 371
Non-current liabilities 61 818 75 819 71 079
Preference share 2 122 3 049 3 049
liability
Interest-bearing 45 255 62 307 56 038
borrowings
Deferred taxation 14 441 10 463 11 992
Current liabilities 138 541 168 909 147 897
Trade payables and 103 302 105 371 108 538
accruals
Provisions 10 157 8 221 10 725
Current portion of 22 882 31 188 27 296
interest-bearing
borrowings
Taxation payable 2 200 2 992 1 338
Bank overdraft - 21 137 -
TOTAL EQUITY AND 414 998 420 097 407 242
LIABILITIES
Number of shares in issue
(`000)
(Net of 2 706 000 28 078 27 694 27 694
treasury shares)
Net movement on treasury 67 120 384
shares
Ranking number of shares 28 145 27 814 28 078
Salient features
Net asset value per share 730 597 637
(cents)
Operating margin (%) 12,4 11,2 11,1
Net interest-bearing 6 53 11
debt:equity ratio %
Interest cover (x) 18,3 5,9 5,8
STATEMENT OF CASH FLOW
R`000 Unaudited 6 Unaudited 6 Audited
months months 12 months
Dec 2009 Dec 2008 June 2009
Cash flow from operating
activities
Cash generated from 37 893 48 106 147 321
operations
Dividends paid (8 864) (5 003) (9 620)
Net interest paid (2 923) (8 611) (14 016)
Taxation paid (10 006) (5 519) (13 999)
Net cash inflow from 16 100 28 973 109 686
operating activities
Cash flow from investing
activities
Proceeds on disposal of 104 240 651
property, plant and
equipment
Expansion and replacement of (10 015) (18 038) (26 085)
property, plant and
equipment
Decrease/(increase) in 2 747 (304) (754)
unlisted investments
Net cash outflow from (7 164) (18 102) (26 188)
investing activities
Cash flow from financing
activities
Decrease in long-term (10 783) (8 218) (14 487)
borrowings
(Decrease)/increase in short-(4 414) 10 587 6 695
term borrowings
Decrease in preference share (927) (848) (848)
liability
Net movement on treasury 47 120 335
shares
Net cash (outflow)/inflow (16 077) 1 641 (8 305)
from financing activities
Net movement in cash for the (7 141) 12 512 75 193
period
Cash and cash equivalents at 65 465 (9 728) (9 728)
the beginning of the period
Cash and cash equivalents at 58 324 2 784 65 465
the end of the period
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
R`000 Share Preference Other Distributable Total
Capital Shareholders Reserves Reserves
Interest
Balance at 30 277 9 273 1 901 139 249 150 700
June 2008
(audited)
Total - - - 46 723 46 723
comprehensive
income
Transfer - - (1 688) 1 688 -
Share-based - - 128 - 128
payments
Dividend paid - - - (9 620) (9 620)
Net movement 4 - - 331 335
in treasury
shares
Balance at 30 281 9 273 341 178 371 188 266
June 2009
(audited)
Total - - - 35 126 35 126
comprehensive
income
Share-based - - 64 - 64
payments
Dividend paid - - - (8 864) (8 864)
Net movement - - - 47 47
in treasury
shares
Balance at 31 281 9 273 405 204 680 214 639
December 2009
(unaudited)
DIRECTORS
AJ Aaron (Chairman)*; PN Abelheim (Chief Executive); L Weinberg (Financial
Director); HA Botha*; JS Botha; SR Bouzaglou; SI Jacobson*;
D Thomas*; SP van der Linde*
*non-executive
Date 24 February 2010
Auditors Ernst & Young Incorporated
Sponsor Investec Bank Limited
Registered Office 331 6th Street, Wynberg, Sandton
Transfer Secretaries Computershare Investor Services (Pty) Limited, 70
Marshall Street, Johannesburg
Website www.transpaco.co.za
24 February 2010
Sponsor: Investec Bank Limited
Date: 24/02/2010 07:05:03 Supplied by www.sharenet.co.za
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