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IRA - Infrasors - Reviewed Condensed Group Consolidated Results for the year
ended 28 February 2011
Infrasors Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 2007/002405/06)
Share code on the JSE: IRA ISIN: ZAE000101507
("Infrasors", "the Company" or "the Group")
REVIEWED CONDENSED GROUP CONSOLIDATED RESULTS
FOR THE YEAR ENDED 28 FEBRUARY 2011
Highlights:
Tons sold up 18,0%
Revenue up 15,1%
Profit from operating activities up 18,5%
Net asset value per share up 3,0%
CONDENSED GROUP STATEMENT OF COMPREHENSIVE INCOME
Reviewed Audited
year ended year ended
28 February 28 February
2011 2010
Note R000`s R000`s
Continuing operations
Revenue 243 501 211 479
Gross profit 70 052 62 260
Profit from operating activities 41 335 34 870
Depreciation and amortisation (13 563) (7 673)
Net finance costs (2 525) (4 723)
Profit before tax and separately 25 247 22 474
disclosed items
Fair value adjustments 3 13 239 39 127
Profit before taxation 38 486 61 601
Income tax expense (6 007) (8 759)
Profit for the year from continuing 32 479 52 842
operations
Discontinued operations
Loss for the year from discontinued 4 (3 388) (22 800)
operations
Profit for the year 29 091 30 042
Other comprehensive income
Net gain on revaluation of property, - 6 150
plant and equipment
Total comprehensive income for the 29 091 36 192
year
Earnings/(loss) per share (cents) - 6 16,1 17,4
basic and diluted
From continuing operations - basic and 18,0 30,6
diluted
From discontinued operations - basic (1,9) (13,2)
and diluted
CONDENSED GROUP STATEMENT OF FINANCIAL POSITION
Reviewed Audited
as at as at
28 February 28 February
2011 2010
Note R000`s R000`s
Non-current assets 548 367 491 728
Property, plant and equipment 292 075 280 695
Mineral rights 91 604 72 500
Investments in associate 7 000 7 000
Investment property 3, 5 87 483 56 780
Deferred tax 11 823 3 001
Held to maturity investment 3 46 949 64 273
Other financial assets 11 433 7 479
Current assets 74 279 84 776
Inventories 17 016 17 092
Cash resources 17 044 22 610
Other current assets 40 219 45 074
Assets of discontinued operation - 12 983
Total assets 622 646 589 487
Capital and reserves 432 819 395 823
Share capital and premium 255 620 247 715
Revaluation reserve 6 150 6 150
Retained income 171 049 141 958
Non-current liabilities 138 237 139 039
Borrowings 63 798 70 287
Environmental rehabilitation provision 10 802 13 657
Deferred taxation 63 637 55 095
Current liabilities 51 590 50 351
Borrowings 22 724 17 941
Taxation payable 24 1
Other current liabilities 28 842 32 409
Liabilities of discontinued operation - 4 274
Total equity and liabilities 622 646 589 487
Net asset value per share (cents) 235,6 228,8
Net number of shares in issue 000`s 183 709 172 978
CONDENSED GROUP STATEMENT OF CASH FLOWS
Reviewed Audited
year ended year ended
28 February 28 February
2011 2010
R000`s R000`s
Cash flows from operating activities 34 841 26 240
Cash flows from investing activities (44 223) (30 416)
Cash flows from financing activities 3 812 (24 410)
Net decrease in cash and cash equivalents (5 570) (28 586)
Cash and cash equivalents at the beginning of 22 614 51 200
the year
Cash and cash equivalents at the end of the 17 044 22 614
year
Continuing operations
Cash and cash equivalents at the end of the 17 044 22 610
year
Discontinued operations
Cash and cash equivalents at the end of the - 4
year
CONDENSED GROUP STATEMENT OF CHANGES IN SHAREHOLDERS` EQUITY
Reviewed Audited
year ended year ended
28 February 28 February
2011 2010
R000`s R000`s
Share capital 918 865
Balance at the beginning of the period 865 865
Share capital movement on treasury shares sold 15 -
Issue of shares 38 -
Share premium 254 702 246 850
Balance at the beginning of the period 246 850 246 850
Premium movement on treasury shares sold 1 745 -
Issue of shares 6 107 -
Revaluation reserve 6 150 6 150
Balance at beginning of period 6 150 -
Revaluation of property, plant and equipment - 6 150
included in total comprehensive income
Retained income 171 049 141 958
Balance at the beginning of the period 141 958 111 916
Profit for the year included in total 29 091 30 042
comprehensive income
Balance at end of the period 432 819 395 823
SEGMENTED CONSOLIDATED RESULTS
Dolomite &
Silica limestone Other Total
R000`s R000`s R000`s R000`s
28 February 2011
Turnover from external 78 997 160 430 - 239 427
customers
Inter-segment revenues - - 7 241 7 241
Net profit before tax 9 800 25 450 3 236 38 486
Additions to non-current 21 070 12 459 1 285 34 814
assets
28 February 2010
Turnover from external 73 817 133 232 - 207 049
customers
Inter-segment revenues - - 11 772 11 772
Net profit before tax 13 858 20 210 27 533 61 601
Additions to non-current 12 749 21 325 117 34 191
assets
Sales volumes
Silica Dolomite
2011 2010 2011 2010
Tons sold 275 120 269 330 1 089 897 946 310
Limestone Total
2011 2010 2011 2010
Tons sold 356 779 243 175 1 721 796 1 458 815
MANAGEMENT COMMENTARY
Infrasors
Infrasors is a South African mining resources company, mining and
beneficiating silica, dolomite and metamorphosed dolomite (limestone)
products for the industrial, metallurgical, mining and construction sectors.
The principal Infrasors operations are:
- Lyttelton Dolomite incorporating two mining operations namely Lyttelton
Centurion Mine, and Marble Hall Mine; and
- Delf Silica, with its Delf Sand Mine and its Delf Tongaat facility.
General review
Revenue for the period under review was R243,5 million (F2010: R211,5
million), profit from continuing operating activities was R41,3 million
(F2010: R34,9 million), an increase of R6,4 million. The profit before
taxation for continuing operations for the period under review was R38,5
million (F2010: R61,6 million).
Cash of R34,7 million (F2010: R38,6 million) was generated by operations,
prior to net finance cost of R3,3 million (F2010: R6,9 million) and taxation
refunds received of R3,6 million (F2010: tax paid R5,5 million), before
outflow of investments of R43,5 million (F2009: R30,4 million), and inflow of
financing activities of R2,9 million (F2010: R24,4 million).
Capital expenditure of R34,8 million (F2010: R34,2 million) was incurred in
the year under review, reflecting an ongoing investment by the Group in plant
infrastructure and development of mineral reserves.
Mining assets, mining licences and mineral reserves
New order prospecting rights in respect of the Cullinan alluvial silica
resource and southern extensions to the Marble Hall limestone mine was
executed during F2011.
Further drilling and prospecting of the Delf Silica and Cullinan ore bodies
were concluded and the results reflect an increase to proved ore body of 0,9
million tons and an additional 8,2 million tons of probable alluvial silica
respectively.
Drilling and prospecting of the Marble Hall southern extension resulted in an
increase to ore bodies of 37,9 million probable limestone.
NOTES TO THE CONDENSED CONSOLIDATED REVIEWED FINANCIAL STATEMENTS
1. Significant accounting policies
Infrasors is a company domiciled in South Africa. The condensed consolidated
reviewed financial statements of Infrasors for the year ended 28 February
2011 comprise the Company and its subsidiaries (together referred to as the
"Group").
The condensed consolidated reviewed financial statements were authorised for
issue by the directors on 18 May 2011.
1.1 Basis of preparation
The reviewed condensed consolidated results have been prepared in accordance
with the framework concepts and the measurement and recognition requirements
of the International Financial Reporting Standards ("IFRS") and containing
information required by the International Accounting Standards 34 - Interim
Financial Reporting ("IAS 34"), the AC 500 Standards and in the manner
required by the Companies Act and the JSE Limited Listings Requirements. The
condensed consolidated reviewed financial statements do not include all of
the information required for full financial statements and should be read in
conjunction with the consolidated annual financial statements for the year
ended 28 February 2011. The Company envisages posting the annual reports
during August 2011.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period or in the period
of the revision and future periods if the revision affects both current and
future periods.
The accounting policies have been applied consistently by Group companies and
have been applied consistently to all periods presented in these condensed
consolidated reviewed financial statements.
2. Review of results
Mazars has signed an unqualified review opinion on the condensed consolidated
financial statements, as required by the JSE Limited. These financial
statements have been approved by the board and condensed for the purposes of
this report. The auditors` review opinion is available for inspection at the
Company`s registered office.
3. Fair value adjustments
Reviewed Audited
as at as at
28 February 28 February
2011 2010
Note R000`s R000`s
Loans receivable - Infrasors
Empowerment Trust
Opening carrying value for the year (64 273) 64 273
46 949 64 273
Loans receivable fair value (17 324) -
adjustment
Investment property fair value 5 30 563 39 127
adjustment
Total fair value adjustments 13 239 39 127
The fair value of the loan receivable from the Infrasors Empowerment Trust
has been assessed resulting in a carrying value of R46,9 million according to
the restructured terms and conditions of the existing loan agreement. The
fair value, which was based on the calculation of the net present value of
the loan, consequential from the restructured terms and conditions of the
loan, resulted in a negative fair value adjustment to the amount of R17,3
million.
4. Infrabric discontinued operations
The Infrabric operation was discontinued on 30 November 2009. The remaining
assets held were impaired, dismantled and sold. This resulted in a loss on
discontinued operation of R3,4 million.
5. Investment property
It is the intention of the Group to establish a township development and sell
off the land which has been classified as Investment property for capital
profits to property developers. The township establishment process consists
of three consecutive phases, these being:
Phase I - Assessment Phase II - Preparation of the township development
framework plan; and Phase III - Township establishment process.
Phase I and II have been completed. The board has given approval for Phase
III to be executed.
Pursuant to the Phase II assessment phase "Preparation of the township
development framework plan", Infrasors appointed an independent valuator to
provide a market valuation on the property, based on a "willing, able and
informed seller and willing, able and informed buyer" market value
methodology. The valuation of the Investment property at 28 February 2011
amounts to R87,5 million which results in a fair value adjustment of R30,5
million.
Reviewed Audited
year ended year ended
28 February 28 February
2011 2010
R000`s R000`s
Open carrying value Investment property (56 780) (17 535)
Costs capitalised to Investment properties (140) (118)
Investment property: Fair value on 28 87 483 56 780
February
Fair value adjustment on Investment 30 563 39 127
properties
6. Earnings per share ("EPS") and headline earnings per share ("HEPS")
reconciliation
Basic and diluted
12 months ended
28 February 2011
Weighted
average
number Earnings
of shares per
Net profit in issue share
R000`s 000`s Cents
Continued operations
Earnings per share 32 479 180 940 18,0
Discontinued operations
Earnings per share (3 388) 180 940 (1,9)
Earnings per share 29 091 180 940 16,1
Loss on sale of assets 186
Discontinued operations 4 045
Fair value adjustments (13 239)
Tax effect on headline adjustments 2 522
Headline earnings per share 22 605 180 940 12,5
From continuing operations 23 081 180 940 12,8
From discontinued operations (476) 180 940 (0,3)
12 months ended
28 February 2010
Weighted
average
number Earnings
of shares per
Net profit in issue share
R000`s 000`s Cents
Continued operations
Earnings per share 52 842 172 978 30,6
Discontinued operations
Earnings per share (22 800) 172 978 (13,2)
Earnings per share 30 042 172 978 17,4
Loss on sale of assets 3
Discontinued operations 23 383
Fair value adjustments (39 127)
Tax effect on headline adjustments 10 832
Headline earnings per share 25 133 172 978 14,5
From continuing operations 24 673 172 978 14,2
From discontinued operations 460 172 978 0,3
7. Dividends
The directors have elected not to declare a dividend for the year ended 28
February 2011 in view of the current economic climate and the need for
prudent capital preservation.
8. Related party transactions
Reviewed Audited
year ended year ended
28 February 28 February
2011 2010
R000`s R000`s
Products and services between fellow 6 808 7 395
subsidiary companies
Management fees charged by Infrasors Holdings 7 200 11 205
Limited
Interest paid by subsidiaries to holding 627 566
company
Contributions to the Infrasors Environmental 1 898 1 370
Rehabilitation Trust
Rent paid to Whirlprops 35 (Proprietary) 643 550
Limited
9. Directors and officers
Mochele Noge* (appointed as Chairman 1 March 2011), Stephen Courtney*
(appointed as Deputy Chairman 1 March 2011), Trevor Robinson (Chief Executive
Officer), Marius Potgieter (Financial Director), Chris Boulle*, Popo Molefe*
(resigned as director 28 February 2011), Dereck Alexander* (resigned as
director 28 February 2011), David Nabarro*+ (retired as director 22 October
2010), Kerry Colley (Company Secretary).
All of the above directors are South African and resident in South Africa. *
Non-executive directors + British
Sponsor Auditors
Sasfin Capital A division of Sasfin Bank Limited Mazars
Legal Advisers and Attorneys Transfer Secretaries
HR Levin Attorneys Notaries and Link Market Services South Africa
Conveyancers (Proprietary) Limited
On behalf of the board
M Noge T Robinson
Chairman Chief Executive Officer
VISIT US AT www.infrasors.co.za
Date: 19/05/2011 08:00:37 Supplied by www.sharenet.co.za
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