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WNH - Winhold Limited - Statement of results

Release Date: 28/11/2011 17:32
Code(s): WNH
Wrap Text

WNH - Winhold Limited - Statement of results WINHOLD LIMITED (Registration number 1945/019679/06) Incorporated in the Republic of South Africa Share code: WNH ISIN: ZAE000033916 STATEMENT OF RESULTS Preliminary Audited Consolidated Results for the year ended 30 September 2011 Condensed Statement of Comprehensive Income Year ended Year ended 30 Sept 2011 30 Sept 2010 R000`s R000`s External revenue 990 308 1 030 918 Operating profit 28 045 51 227 Investment income 15 556 15 556 Impairments (2 500) (1 573) Net finance costs (22 842) (29 301) Profit before taxation 18 259 35 909 Taxation (1 301) (8 233) Share of associates PAT 431 757 Profit for the period 17 389 28 433 Total comprehensive income for the year 17 389 28 433 Attributable to non controlling interests (751) (3 608) Attributable to equity holders of the parent 16 638 24 825 Earnings and diluted earnings per ordinary share (Cents) 13.26 19.78 Headline and diluted headline earnings per ordinary share (Cents) 15.22 20.75 Weighted average ordinary shares adjusted for treasury stock (000` 125 506 125 506 Total ordinary shares issued (000`s) 126 215 126 215 Total depreciation and amortisation 13 736 13 638 EBITDA 41 778 64 865 Reconciliation of headline earnings - Comprehensive income for the period 16 638 24 825 - Impairments 2 500 1 573 - Profit on disposal of fixed assets (55) (498) - Taxation effects of the above 15 139 Total headline earnings 19 098 26 039 Condensed Statement of Financial Position Year ended Year ended 30 Sept 2011 30 Sept 2010
R000`s R000`s ASSETS Fixed assets 159 726 149 470 Loans and receivables 138 467 168 103 Investments in associates 2 318 2 265 Goodwill 24 041 26 541 Current assets 371 121 354 444 - Inventory 155 047 148 247 - Receivables 204 894 187 681 - Non current assets held for sale 2 615 5 701 - Bank and cash 8 565 12 815 695 673 700 823
EQUITY AND LIABILITIES Ordinary share capital and premium 122 793 122 793 Retained earnings 130 757 126 979 Equity attributable to owners of the parent 253 550 249 772 Non-controlling interests 18 372 17 620 Total Equity 271 922 267 392 Non-current liabilities - Interest-bearing 164 269 187 976 - Interest-free 20 743 15 907 - (Net) Deferred taxation 3 923 5 013 Current liabilities 234 816 224 535 Interest-bearing - Bank overdraft 37 448 18 477 - Short-term borrowings 31 278 19 022 Interest free - Payables and provisions 166 090 187 036 695 673 700 823 Supporting information Year ended Year ended 30 Sept 2011 30 Sept 2010 - Capital commitments at period end 1 240 4 700 - Capital expenditure during the period 24 594 36 326 - Total interest-bearing borrowings 232 995 225 475 - Total interest-earning deposits 7 315 12 625 - Net asset value per share (cents) 202.0 199.0 - Total intangible assets 24 064 26 570 - Tangible net asset value per share 182.85 177.84 - Return on equity (%) 7.5 10.4 - Return on assets (%) 2.4 3.9 Condensed Statement of Changes in Equity Equity attributable to holders of the parent - Opening balance 249 772 237 703 - Total comprehensive income for the year 16 638 24 825 - Dividends paid (12 860) (12 756) Balance at the end of the year 253 550 249 772 Condensed Statement of Cash Flows Year ended Year ended 30 Sept 2011 30 Sept 2010
R000`s R000`s Cash flow from operating activities 8 071 47 912 Profit before interest, tax and non-cash items 57 389 79 874 Changes in working capital (9 907) 23 873 Net finance costs (23 259) (29 752) Dividends from associates 378 471 Taxation paid (3 670) (13 798) Dividends paid (12 860) (12 756) Cash flow from investing activities (20 859) (41 149) Investment in / (proceeds from) fixed assets (24 594) (33 834) Investment in loans receivable 3 735 (7 315) Cash flow from financing activities (10 433) 11 916 Interest-bearing borrowings raised 11 926 26 545 Interest-bearing loans repaid (27 097) (19 960) Interest-free borrowings raised 4 738 5 331 Net (decrease) /increase in cash (23 221) 18 679 Condensed Statement of Segment Results to 30 September Mining Consumables Industrial Consumables 2011 2010 2011 2010 R000`s R000`s R000`s R000`s
Revenue 280 913 327 835 133 965 140 167 Operating profit (3 644) 12 197 2 867 4 813 Depreciation 981 919 621 686 Impairments 2 500 - - - Taxation (1 804) 1 524 845 815 Capital expenditure 1 330 800 513 449 Total assets 110 866 125 471 49 480 45 047 Total liabilities 67 758 54 251 26 577 17 174 Flexible Plastics 2011 2010 R000`s R000`s Revenue 567 625 664 203 Operating profit 27 091 34 427 Depreciation 11 983 10 641 Impairments - - Taxation 2 154 2 993 Capital expenditure 22 641 34 783 Total assets 328 569 312 306 Total liabilities 194 418 201 007 Note - The "property and other" segment does not trade and comprises the balance of the disclosure items disclosed above. - There are no inter-segment revenues. GROUP PROFILE Winhold Limited ("Winhold") is a holding company with its main investments being in its subsidiaries Gundle Limited ("Gundle") and Inmins Limited ("Inmins"). Gundle comprises of two manufacturing and distribution operations in Gauteng and one in Swaziland, as well as a further five distribution centres in the main coastal cities, Bloemfontein and Mbombela. Gundle manufactures polyethylene and polypropylene bags, construction sheeting, consumer and industrial packaging, agricultural film and dam linings and distributes to the agricultural, chemical, construction, food processing, industrial and consumer markets, as well as installing dam linings in sub- Sahara Africa. Inmins comprises 19 strategically located operations servicing the mining and industrial sectors with a wide range of consumable and maintenance products, and includes divisions specialising in hose, mining pipe systems, chain and sprocket systems and conveyor belting. REVIEW OF RESULTS After a very positive and encouraging first half of the financial year, the group had disappointing results in the second half resulting in a reduction of 26,6% in headline earnings per share on a decrease of 3,9% in revenue. This was mainly caused by the extraordinary number of holidays in April, as well as the industrial action during July 2011. The Novara compounding division was sold during the period and losses prior to sale were contained. Group inventory levels have increased marginally as reductions in the Inmins Division were offset by increases in Gundle stocks, which increased as a result of a 30% rise in raw material prices. Receivables have decreased over last year as a consequence of Gundle`s strategic focus in this area. Bank borrowings have increased to fund fixed assets additions and long-term debt repayments in Gundle. OPERATIONAL REVIEWS Gundle The attributable earnings of Gundle reduced by R4,1 million. Raw material prices and availability were unstable leading to a loss of sales and margin erosion. The industry wide strike caused a loss of production which could not be recouped. Demand was further negatively affected when the strikes were extended to include the customer base. The building and construction industry remained subdued, with the building of new houses, particularly, being at very low levels. The dam lining operation improved on its record performance of 2010. It is now one of the leaders in South Africa with a stable footprint in Africa. Plant modernisation continued and modern extruders were commissioned during the financial year in order to produce improved products as required by the market place, the last of which was commissioned in September. Downstream efficiencies were improved leading to a reduction in overtime worked and improved customer service. The Swaziland business stabilised during the year. Volumes have returned to normal and costs are under control. The political instability makes trading conditions in Swaziland difficult. Fortunately a major portion of the Swaziland factory`s revenue is derived from South Africa. Inmins The trading operations maintained its profit levels although the mining supplies component experienced difficult trading conditions. Business was lost due to some suppliers deciding to deal directly with the end users. The cross- selling of products to existing customers has commenced and further opportunities are being pursued. The process of finding alternative suppliers and products continues. The attributable earnings of Inmins reduced by R9,564 million mainly due to the underperformance of the value added division. This division experienced a 29% drop in revenue due to stock-outs and contract suspensions. The steel industry strike lead to a loss in production and sales. It was further necessary to make significant stock and contract write-offs. PROSPECTS Inmins The sale of the specialist products of the group through the whole network is gaining momentum. It is expected to increase both the revenue and margins in the year ahead. The efforts to find additional products continue. The new management team at the value added division have settled in well. The sales and marketing effort has been improved and should lead to better market penetration. Facilities to fabricate lined steel pipe have been commissioned and the first orders have been received. Delivery of the first product should be in January 2012. Gundle Gundle has positioned itself as a market leader in many of the products it provides, and has created niches with specialised products. Due to the capital expenditure incurred over the last three years, new products have and are being developed to service existing and new markets which should improve the profitability of the group. The emphasis internationally on water preservation continues and Gundle GeoSynthetics should therefore continue to grow. The Gundle share of the consumer packaging market is small. Improvements in the production facilities provide the opportunity to grow in this market and some success has already been achieved. CAPITAL COMMITMENTS The amount of R1,24 million (2010: R4,7 million) reflected in the supplementary information, relates to plant upgrades and vehicles (2010: plant and equipment) for existing operations. BASIS OF PREPARATION AND AUDIT OPINION These condensed consolidated preliminary group results have been prepared in accordance with the framework concepts and measurement recognition requirements of International Financial Reporting Standards ("IFRS") and the AC 500 standards and contain the information required by International Accounting Standard 34 ("IAS 34"), the Listings Requirements of the Johannesburg Stock Exchange ("the Listings Requirements") and comply with the South African Companies Act (2008). The accounting policies applied are consistent with those used in the prior year. The preparation of the preliminary financial information has been supervised by the CFO, Mr GM Scrutton CA(SA). BDO South Africa Inc has audited the preliminary financial information and their unmodified report is available for inspection at the companies registered office. The group Integrated Annual Report will be distributed to shareholders in December 2011. CORPORATE GOVERNANCE The Group subscribes to the value of good corporate governance and, where appropriate, is committed to continued implementation of the recommendations of the King III Report and the Listings Requirements. The Group continues to endeavour to conduct its business in accordance with the principles of accountability, transparency and integrity. CONTINGENT LIABILITY,LITIGATION AND SUBSEQUENT EVENTS There has been no change in the previously reported contingent liabilities. There is no material pending litigation and the directors are not aware of any material post-balance sheet events between the balance sheet date and the date of this report. DIRECTORATE There has been no change in the board of directors during the year under review. DECLARATION OF DIVIDEND Notice is hereby given that an ordinary dividend of 0.07 cents per share (2011:10.0 cents) for the year ended 30 September 2011 has been declared to holders of ordinary shares recorded in the share register of the company on the close of business on 17 February 2012. The key STRATE dates are: Last day to trade "cum" dividend is Friday, 10 February 2012, shares trade "ex" dividend on Monday, 13 February 2012, the record date is Friday, 17 February 2012, and the payment date is Monday, 20 February 2012. Share certificates may not be dematerialised / rematerialised between Monday, 13 February 2012 and Friday 17 February 2012, both dates inclusive. Ordinary individual shareholders to whom a dividend of less than R10,00 (ten rand) has been declared, are reminded that in terms of a special resolution registered on 26 March 2003, such amounts shall not be paid to the individual shareholders concerned but shall be donated to an independent charity chosen by the directors. For and on behalf of the board WAR WENTELER DB MOSTERT W Fourie Chairman Deputy Chairman Chief Executive Officer 24 November 2011 Winhold Limited Share code: WNH ISIN ZAE000033916 Registration number 1945/019679/06 Incorporated in the Republic of South Africa 884 Linton Jones Street, Industries East, Germiston Tel +2711 645 9800. Directors WAR Wenteler (Chairman)*, DB Mostert (Deputy Chairman*+),W Fourie, PJ Kruger*, NP Mnxasana*+, P Nash*, GM Scrutton (Financial) (*Non-executive), (+Independent) Company Secretary GJ O`Connor johnoc@inmins.co.za fax: +2711 345 9883 Date: 28/11/2011 17:32:37 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. 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