Wrap Text
BCF - Bowler Metcalf Limited - Provisional audited results for the year ended 30
June 2010
Bowler Metcalf Limited
(Registration number 1972/005921/06)
Share code: BCF ISIN: ZAE000030797
("Bowler" or "the company")
PROVISIONAL AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2010
HEADLINE EARNINGS +16% DIVIDENDS
PROPOSED +28%
R mil 30/06/10 % Change 30/06/09
FINANCIAL POSITION
Property, plant and equipment 153.1 164.2
Deferred tax 3.3 3.9
Goodwill 15.9 15.9
Investments 1.3 2.3
Current Assets 251.8 201.3
Total Assets 425.4 +10 387.6
Total Equity 348.0 +15 302.3
Deferred tax 17.7 17.8
Long Term Liabilities 4.3 5.6
Current Liabilities 55.4 61.9
Total Equity and Liabilities 425.4 387.6
COMPREHENSIVE INCOME
Revenue 518.2 +13 458.0
Other income 3.1 34.8
Operating costs -390.5 -348.8
Depreciation -32.2 -31.3
Impairments -1.0 -9.2
Net interest 0.7 -3.3
Net profit before tax 98.3 -2 100.2
Income tax expense -28.9 -27.7
Total comprehensive income 69.4 72.5
Attributable to minorities -2.7 -0.2
Attributable to parent 66.7 -8 72.3
EARNINGS PER SHARE
Earnings & diluted earnings (c) 83.01 -4 86.33
Disposal of assets -0.04 -24.64
Impairments 1.25 11.03
Headline earnings (c) 84.22 +16 72.72
ADDITIONAL INFORMATION
Div/share paid (c) 27.90 +37 20.30
Ord div proposed (c) 28.00 +28 21.90
Dividend cover (times) 3.01 3.32
Weighted shares in issue (mil) 80.353 83.723
Capital expenditure 21.20 38.24
CHANGES IN Share Retained Treasury Share Mino - Total
EQUITY capital earnings shares based rities Equity
payments
30 June 08 21.5 254.2 -16.1 - 6.1 265.7
Com Income - 72.3 - - 0.2 72.5
Divs/other - -18.0 -18.4 0.5 - -35.9
30 June 09 21.5 308.5 -34.5 0.5 6.3 302.3
Com Income - 66.7 - 0.7 2.7 70.1
Divs/other - -22.6 -1.5 - -0.3 -24.4
30 June 10 21.5 352.6 -36.0 1.2 8.7 348.0
SEGMENTAL Plastic Filling Property Unallo- Elimi- Total
ANALYSIS cated nated
Revenue
2009 322.7 214.5 12.2 - -91.4 458.0
2010 306.7 262.5 13.5 - -64.5 518.2
Profits
2009 45.3 0.8 25.3 0.9 - 72.3
2010 53.2 7.1 6.4 - - 66.7
Tot assets
2009 280.6 90.8 70.8 15.9 -70.5 387.6
2010 310.7 114.2 85.4 15.9 -100.8 425.4
R mil 30/06/10 % Change 30/06/09
Operating activities 84.7 55.0
Investing activities -21.1 5.5
Financing activities -5.4 -31.7
Net cash flow 58.2 28.8
Opening balance 23.4 -5.4
Closing balance 81.6 +249 23.4
Comprising
Cash & cash equivalents 81.6 +118 37.5
Bank overdrafts - (14.1)
COMMENT
The hard fought 16% increase in HEPS was adequate in a depressed retail
environment, as was the 13% rise in revenue to R518m, also bucking fast moving
consumer goods trends and vindicating our diversification strategy.
Second half sales, particularly surrounding the World Cup showed a marked
slowdown, underscoring our belief that the R2b+ drawn to football related
activities adversely effected the FMCG market.
Cash resources of R81.6m includes R58.2m generated this year and encouraged a
28% increase in proposed dividends, with a final dividend of 15 cps.
Plastic Operations
Earnings increased by 18% on a 5% decrease in revenue, mirroring our strategy of
shedding unprofitable work. Margins were maintained in a stable raw material
environment, helped by a strong rand, which strength also has severe negatives,
being a sharp decline in customers` exports.
The R14m expansion in 2008/2009 on a new laminated tube line showed positive
results, even in the depressed market, and this augurs well. Budgeted capital
expenditure of R44m will take advantage of the strong rand and hungry
manufacturers.
The company is exceedingly well positioned, having spent the last two years
reprogramming to handle the extra demands on systems, personnel and machinery,
to serve and grow in its existing market.
Filling Operations
After 18 disappointing months, promised strong initiatives, and the
strengthening of our brands, bore fruit, yielding a 22% revenue hike to R262,5m
and a 790% profit jump to R7,1m, a tribute to the management team of this
company. Our well established brands sold on merit, not on price alone.
Properties
The rental of the Group properties has been adjusted to market to get a fair
reflection of the financial benefits of this investment. Our properties are
essentially ungeared.
Prospects
The Group is well positioned to consolidate and grow its footprint in its chosen
markets and I believe that Bowler Metcalf has weathered the financial pressures,
which started at the end of 2008, particularly well. We believe we will continue
to outperform our industry.
BASIS OF PREPARATION AND AUDIT REPORT
These condensed provisional financial results have been prepared in accordance
with the requirements of IAS 34, IFRS, the South African Companies Act and in
compliance with the listing requirements of the JSE Ltd. Accounting policies are
consistent with the previous reporting period. The unqualified audit report of
the company`s auditors, Mazars, is available for inspection at the company`s
registered office.
DIVIDEND DECLARATION
A final dividend of 15.0c per share (2009: final dividend of 10.9c and a special
dividend of 4.0c) has been declared and is payable to shareholders on Monday,
18 October 2010. The last day to trade will be Friday, 8 October 2010. "Ex"
dividend trading begins on Monday, 11 October 2010 and the record date will be
Friday, 15 October 2010. Share certificates may not be dematerialised or re-
materialised between Monday, 11 October 2010 and Friday, 15 October 2010, both
days inclusive.
H.W. SASS (Non-Exec Chairman)
M. BRAIN (Managing & Financial Director)
Cape Town, 8 September 2010
Sponsor
Arcay Moela Sponsors (Pty) Limited
Auditors
Mazars Moores Rowland
Date: 08/09/2010 17:15:01 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.
Sharenet Sites 
