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BCF - Bowler Metcalf Limited - Condensed unaudited results for the six months ended 31 December 2010 BOWLER METCALF LIMITED (registration number 1972/005921/06) Share code: BCF ISIN Code: ZAE000030797 CONDENSED UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31 December 2010 R mil FINANCIAL POSITION 31/12/10 31/12/09 % 30/06/10 Property, plant and 143.5 163.4 153.1 equipment Deferred tax 3.2 3.9 3.3 Goodwill 15.9 15.9 15.9 Investments 1.3 1.5 1.3 Current assets 335.1 235.9 251.8 TOTAL ASSETS 499.0 420.6 +19 425.4 Total equity 375.8 319.2 +18 348.0 Deferred tax 16.4 17.3 17.7 Long term liabilities 6.6 5.1 4.37 Current liabilities 100.2 79.0 556.4 TOTAL EQUITY AND LIABILITIES 499.0 420.6 425.4 COMPREHENSIVE INCOME Revenue 297.3 242.8 +22 518.2 Other income 3.3 0.1 3.1 Operating costs -232.5 -181.0 -390.5 Depreciation -16.0 -16.7 -32.2 Impairments - -2.8 -1.0 Net interest 2.4 0.4 0.7 Net profit before tax 54.5 42.8 +27 98.3 Income tax expense -14.7 -14.0 -28.8 Total comprehensive income 39.8 28.8 69.5 Attributable to minorities -2.7 -0.7 -2.8 Attributable to parent 37.1 28.1 +32 66.7 EARNINGS PER SHARE Earnings (c) 46.2 34.9 +32 83.0 Disposal of assets - - - Impairments - 2.8 1.2 Headline earnings (c) 46.2 37.7 +22 84.2 CASH FLOW Operating activities 7.5 40.2 84.7 Investing activities -6.3 -19.8 -21.1 Financing activities 2.5 -4.2 -5.4 Net cash flow 3.7 16.2 58.2 Opening balance 81.6 23.4 23.4 Closing balance 85.3 51.6 81.6 Bank overdrafts - -12.0 - ADDITIONAL INFORMATION Div/share paid (c) 15.0 14.9 +1 27.9 Div/share proposed (c) 15.6 13.0 +20 28.0 Dividend cover (times) 2.9 2.9 3.0 Capital expenditure (mil) 6.4 Weighted shares in issue 80.425 80.345 80.353 (mil) CHANGES IN EQUITY Share Retained Treasury Share Minorities Total Capital Earnings Shares based Equity payments June 09 21.5 308.5 -34.5 0.5 6.3 302.3 Comp Income - 28.1 - 0.3 0.7 29.1 Divs/other - -12.2 - - - -12.2 December 09 21.5 324.4 -34.5 0.8 7.0 319.2 Comp Income - 38.6 - - 2.1 40.7 Divs/other - -10.4 -1.5 0.4 -0.4 -11.9 June 10 21.5 352.6 -36.0 1.2 8.7 348.0 Comp Income - 37.1 - - 2.7 39.8 Divs/other - -12.3 0.7 0.2 -0.6 -12.0 December 10 21.5 377.4 -35.3 1.4 10.8 375.8 SEGMENTAL ANALYSIS Plastic Filling Property Unallocated Eliminated Total Revenue Jul-Dec 09 143.5 125.5 5.9 - -32.1 242.8 Jan-Jun 10 163.2 137.0 7.6 - -32.4 275.4 Jul-Dec 10 153.5 175.7 7.0 - -38.9 297.3 Profits Jul-Dec 09 24.1 2.0 2.8 -0.8 - 28.1 Jan-Jun 10 29.1 5.1 3.6 0.8 - 38.6 Jul-Dec 10 26.0 7.7 3.4 - - 37.1 Total assets Dec 09 283.9 134.7 72.5 15.9 -86.4 420.6 Jun 10 310.7 114.20 85.4 15.9 -100.8 425.4 Dec 10 340.7 159.5 87.0 15.9 -104.1 499.0 COMMENT The six month results exceeded the second half upturn in the FMCG market, with revenue rising 22.5% to R297m and earnings 32% to R37m. Additional working capital requirements restricted cash flow to R39m (positive) and the 20% increase in dividends is prudent. Plastic Operations The supply pipeline post World Cup remained empty until October, where after there was a marked uptick in activity, yielding a revenue rise of 7%. Cost controls helped earnings to increase by 8%, despite some "panic" pricing from competitors who were faced with idle equipment at midyear. The new expansion into KZN has begun to show modest profits. Our order book is good for the second half year and we will manage the raw material increases facing us. Filling Operations Our perseverance in Quality Beverages was vindicated by a robust showing with earnings rising by 442% on the back of a 40% revenue rise. The revenue increase was a combination of favourable weather conditions and the growth and acceptance of Jive as a brand. The percentage rise in earnings was off a low base, but it does clearly demonstrate the advantages of correct plant utilization. In December, a factory lease for a 7 500 m2 operating facility in Boksburg was signed and we are aggressively pursuing the installation of a new high speed bottling plant, at an anticipated cost of some R32m. This is scheduled for commissioning in July to permit us to pursue the Gauteng market, off the established base that we already have there. Prospects A marginally weaker currency would be to our advantage, notwithstanding the resultant fuelling of raw material price increases. It is believed that the Group is well balanced to take advantage of all aspects relating to increased FMCG spending. BASIS OF PREPARATION The condensed interim financial statements 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. DIVIDEND DECLARATION An interim dividend of 15.6c per share has been declared (2010 : 13.0c) and is payable to shareholders on Monday 11 April 2011. The last day to trade will be Friday, 1 April 2011. "Ex" dividend trading begins on Monday, 4 April 2011 and the record date will be Friday, 8 April 2011. Share certificates may not be dematerialised or re-materialised between Monday, 4 April 2011 and Friday, 8 April 2011, both days inclusive. Unless otherwise requested in writing, individual dividend cheques of less than R50 will not be paid but retained in the company`s unclaimed dividend account. Accumulated unpaid dividends in excess of R200 may be claimed in writing from the Transfer Secretaries. H.W. SASS (Chairman) M. BRAIN (Managing) Cape Town, 9 March 2011 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 Date: 09/03/2011 17:06:01 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.
