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TPC - Transpaco Limited - Reviewed condensed consolidated results for the

Release Date: 24/08/2011 07:05
Code(s): TPC
Wrap Text

TPC - Transpaco Limited - Reviewed condensed consolidated results for the year ended 30 June 2011 and dividend announcement Transpaco Limited Reg. No. 1951/000799/06 ISIN: ZAE000007480 Share Code: TPC REVIEWED CONDENSED CONSOLIDATED RESULTS FOR THE YEAR ENDED 30 JUNE 2011 AND DIVIDEND ANNOUNCEMENT A leading manufacturer, recycler and distributor of plastic and paper packaging products HEADLINE EARNINGS PER SHARE up 11% DILUTED HEADLINE EARNINGS PER SHARE up 14% DIVIDEND PER SHARE UP 14% INTRODUCTION The board is pleased to report on the year ended 30 June 2011 ("the year") in which Transpaco maintained its good growth and again delivered a solid performance. Improved operating efficiencies and stringent control of group operating expenses, supported by a reduction in net interest paid, contributed to the group`s performance. As anticipated, the acquisition of Disaki Cores and Tubes (Pty) Ltd ("Disaki") with effect from 1 November 2010 impacted positively on the group`s results. Transpaco`s economic activity (defined as total turnover including inter- company turnover) reached the R1 billion mark for the year, a milestone for Transpaco. Financial Results Headline earnings per share (HEPS) increased by 11% to 214,0 cents (June 2010: 192,7 cents) and earnings per share (EPS) increased by 12% to 216,5 cents (June 2010: 193,4 cents). Diluted HEPS increased 14% to 195,7 cents (June 2010:171,0 cents). In comparing results year-on-year, cognisance must be taken of 3 312 126 additional shares issued during the year under review following Transpaco`s BEE shareholder converting their preference shares into ordinary shares. The weighted average number of shares in issue affecting HEPS and EPS was 1 333 925. In the absence of this, Transpaco`s increase in HEPS would have been 16% and in EPS 17% compared to the previous year. Operating profit rose 14% to R95,2 million (June 2010: R83,5 million) on a turnover of R954,0 million (June 2010: R786,3 million) notwithstanding that market conditions in the plastic division led to margin compression resulting in a decline in operating profits in that division. The operating profit in the paper division increased as a result of the Disaki acquisition. Interest cover improved to 33,3 times (June 2010: 16,0 times). The group`s level of working capital remains well-managed. Cash generated from operations amounted to R129,1 million (June 2010: R99,0 million), an increase of 30%. Consequently Transpaco`s net interest-bearing debt-to- equity position remains cash positive. Although the Disaki acquisition was funded out of existing cash resources, the group remains in a highly liquid position to take advantage of opportunities that may arise in the future. Net asset value per share increased by 12% to 866 cents (June 2010:772 cents). Prospects The group will continue its proven strategy, endeavouring to achieve growth by maintaining a strict financial policy (including stringent management of working capital) and by organically expanding existing businesses. Transpaco will continue to identify and pursue appropriate acquisitions. Transformation An independent accredited verification agency has assessed Transpaco as a Level 5 B-BBEE contributor. Improving this rating is a strategic and operational imperative for sustainability, and to this end Transpaco continues to promote comprehensive transformation strategies throughout the group at all levels. Focus during the year on community development saw the group make substantial contributions to corporate social responsibility projects. Dividend The board has declared a final cash dividend of 43 cents per share. This has resulted in a total dividend for the year of 72 cents per share (June 2010: 63 cents), an increase of 14%. The salient dates for the dividend are as follows: Last date to trade shares cum dividend Friday, 16 September 2011 Shares trade ex dividend Monday, 19 September 2011 Record date Friday, 23 September 2011 Payment date Monday, 26 September 2011 Share certificates may not be dematerialised or rematerialised between Monday, 19 September 2011 and Friday, 23 September 2011, both days inclusive Basis of Preparation and Accounting Policies The reviewed condensed consolidated annual financial results have been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS), its interpretations adopted by the International Standards Board (IASB) and the presentation and disclosure requirements set out in IAS 34 - Interim Financial Reporting and comply with the Listings Requirements of the JSE Limited and the South African Companies Act No 71 of 2008. The accounting policies 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 2010. Transpaco adopted all applicable new and amended standards, the effect of which had no material impact on the reviewed condensed consolidated annual financial results. Review of Independent Auditors The group`s auditors Ernst & Young Inc. have reviewed the condensed consolidated financial information for the year. Their review report is available for inspection at Transpaco`s registered office. ON BEHALF OF THE BOARD AJ Aaron PN Abelheim L Weinberg Non-executive Chairman Chief Executive Financial Director DIRECTORS AJ Aaron (Chairman)*; PN Abelheim (Chief Executive); L Weinberg (Financial Director); HA Botha*; SR Bouzaglou; SI Jacobson*; D Thomas*; SP van der Linde* *non-executive Date 24 August 2011 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 SEGMENTAL ANALYSIS R`000 Plastic Paper and Properties Total Products Board and Group Products Services Turnover - 2011 626 324 327 665 - 953 989 Turnover to customers 666 422 342 830 - 1 009 252 Less turnover to 40 098 15 165 - 55 263 internal customers Turnover - 2010 591 148 195 192 - 786 340 Turnover to customers 631 217 209 158 - 840 375 Less turnover to 40 069 13 966 - 54 035 internal customers Operating profit - 52 449 41 531 1 230 95 210 2011 Operating profit - 57 648 24 027 1 812 83 487 2010 STATEMENT OF COMPREHENSIVE INCOME Reviewed Audited
12 months % 12 months R`000 June 2011 change June 2010 Turnover 953 989 21 786 340 Cost of sales 592 081 484 881 Profit before operating 361 908 20 301 459 costs and depreciation Operating costs 240 126 192 816 Depreciation 26 572 25 156 Operating profit 95 210 14 83 487 Net interest paid 2 860 5 214 Profit before taxation 92 350 18 78 273 Taxation 28 261 23 843 Profit after taxation 64 089 18 54 430 Other comprehensive income - - Total comprehensive income 64 089 18 54 430 Weighted average number of 29 606 28 144 shares in issue (`000) Diluted weighted average 32 398 31 882 number of shares in issue (`000) Earnings per share (cents) 216,5 12 193,4 Headline earnings per share 214,0 11 192,7 (cents) Diluted earnings per share 198,0 15 171,6 (cents) Diluted headline earnings 195,7 14 171,0 per share (cents) Dividend per share (cents)* 72,0 14 63,0 Reconciliation of headline earnings (R`000) Basic earnings 64 089 54 430 Negative goodwill (191) - Profit on disposal of (551) (202) property, plant and equipment Headline earnings 63 347 17 54 228 *Includes interim dividend of 29 cents (June 2010: 25 cents) and a dividend declared after the year of 43 cents (June 2010: 38 cents) CAPITAL COMMITMENTS Reviewed Audited 12 months 12 months
R`000 June 2011 June 2010 Capital expenditure authorised and contracted Property, plant and equipment 24 178 4 469 STATEMENT OF FINANCIAL POSITION Reviewed Audited 12 months 12 months R`000 June 2011 June 2010 ASSETS Non-current assets 167 862 150 635 Property, plant and equipment 159 231 146 830 Intangibles 482 482 Goodwill 3 204 3 204 Unlisted investments 33 33 Deferred taxation 4 912 86 Current assets 319 815 281 342 Inventories 89 422 82 848 Trade and other receivables 148 729 117 970 Taxation receivable 1 171 3 804 Cash at bank and in hand 80 493 76 720 TOTAL ASSETS 487 677 431 977 EQUITY AND LIABILITIES Capital and reserves 274 480 226 993 Issued share capital 317 282 Share premium 11 019 - Preference shareholders` interest - 9 273 Other reserve 1 204 469 Distributable reserve 261 940 216 969 Non-current liabilities 43 766 55 358 Preference share liability - 2 122 Interest-bearing borrowings 25 894 37 373 Deferred taxation 17 872 15 863 Current liabilities 169 431 149 626 Trade payables and accruals 128 805 114 588 Provisions 16 443 11 838 Current portion of interest-bearing 20 438 22 286 borrowings Taxation payable 3 745 914 TOTAL EQUITY AND LIABILITIES 487 677 431 977 Number of shares in issue (`000) (net of treasury shares) 28 192 28 078 Shares issued 3 312 - Net movement in treasury shares 187 114 Ranking number of shares 31 691 28 192 Salient features Net asset value per share (cents) 866 772 Operating margin % 10,0% 10,6% Net interest-bearing debt:equity ratio % Cash Positive Cash Positive Interest cover (X) 33,3 16,0 STATEMENT OF CASH FLOW Reviewed Audited 12 months 12 months
R`000 June 2011 June 2010 Cash flow from operating activities Cash generated from operations 129 070 98 866 Dividends paid (19 906) (15 911) Net interest paid (2 860) (5 214) Taxation paid (15 288) (19 049) Net cash inflow from operating activities 91 016 58 692 Cash flow from investing activities Proceeds on disposal of property, plant and 1 543 408 equipment Expansion and replacement of property, (31 979) (27 413) plant and equipment Acquisition of business (43 107) - Decrease in unlisted investments - 4 090 Net cash outflow from investing activities (73 543) (22 915) Cash flow from financing activities Net movement in treasury shares 790 80 Decrease in preference share liability (343) (927) Decrease in long-term borrowings (11 479) (18 665) Decrease in short-term borrowings (2 668) (5 010) Net cash (outflow) from financing (13 700) (24 522) activities Net movement in cash for the year 3 773 11 255 Cash and cash equivalents at the beginning 76 720 65 465 of the year Cash and cash equivalents at the end of the 80 493 76 720 year STATEMENT OF CHANGES IN EQUITY Preference Share Share Shareholder`s R`000 Capital Premium Interest Balance at 1 July 2009 281 - 9 273 Net profit for the year - - - Share-based payments - - - Dividend paid - - - Net movement in treasury 1 - - shares Balance at 30 June 2010 282 - 9 273 Net profit for the year - - - Share-based payments - - - Dividend paid - - - Shares issued 33 11 019 (9 273) Net movement in treasury 2 - - shares Balance at 30 June 2011 317 11 019 - STATEMENT OF CHANGES IN EQUITY (continued) Other Distributable R`000 Reserves Reserve Total Balance at 1 July 2009 341 178 371 188 266 Net profit for the year - 54 430 54 430 Share-based payments 128 - 128 Dividend paid - (15 911) (15 911) Net movement in treasury - 79 80 shares Balance at 30 June 2010 496 216 969 226 993 Net profit for the year - 64 089 64 089 Share-based payments 735 - 735 Dividend paid - (19 906) (19 906) Shares issued - - 1 779 Net movement in treasury - 788 790 shares Balance at 30 June 2011 1 204 261 940 274 480 Date: 24/08/2011 07:05:14 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.

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