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BCF - Bowler Metcalf Limited - Amendment to announcement sent at 7h05 -
Condensed unaudited consolidated results for the six months ended 31 December
2011
BOWLER METCALF LIMITED
(Registration number 1972/005921/06)
Share code: BCF
ISIN Code: ZAE000030797
CONDENSED UNAUDITED CONSOLIDATED RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER
2011
STATEMENT OF FINANCIAL POSITION
R mil 31/12/11 31/12/10 % change 30/06/11
NON-CURRENT ASSETS 193.4 163.9 158.0
Property, plant and equipment 162.2 143.5 137.6
Deferred tax 4.5 3.2 3.2
Intangible assets 15.9 15.9 15.9
Investments 10.8 1.3 1.3
CURRENT ASSETS 362.5 335.1 331.6
Inventories 67.0 59.2 67.3
Trade and other receivables 157.4 171.8 99.7
Prepayments 41.5 7.8 31.9
Cash and cash equivalents 92.5 85.3 128.9
Taxation 4.1 11.0 3.8
TOTAL ASSETS 555.9 499.0 +11 489.6
Total equity 421.5 375.8 +12 407.6
NON-CURRENT LIABILITES 29.0 23.0 19.6
Deferred tax 14.6 16.4 15.3
Borrowings - interest bearing 14.4 6.6 4.3
CURRENT LIABILITIES 105.4 100.2 62.4
Trade and other payables 83.4 84.6 44.4
Bank overdrafts 18.2 - 12.8
Borrowings - interest bearing 2.6 1.9 3.7
Taxation 1.2 13.7 1.5
TOTAL EQUITY AND LIABILITIES 555.9 499.0 489.6
STATEMENT OF COMPREHENSIVE INCOME
Revenue 342.1 297.3 +15 591.1
Other income 6.1 3.3 5.7
Operating costs -223.7 -181.6 -350.0
Depreciation -15.9 -16.0 -31.2
Impairments - - -
Rent and property finance -2.3 -2.7 -2.7
Staffing costs -60.1 -48.2 -99.5
Profit from operations 46.2 52.1 113.4
Net finance income 0.3 2.4 1.1
Income 1.4 2.7 1.8
Costs -1.1 -0.3 -0.7
Net profit before tax 46.5 54.5 -15 114.5
Income tax expense -12.8 -14.7 -31.4
Total profit and comprehensive income 33.7 39.8 83.1
Attributable to non-controlling -0.9 -2.7 -5.6
interests
Attributable to parent 32.8 37.1 -12 77.5
Earnings and diluted earnings per 40.30 46.20 -13 96.28
share (cents)
HEADLINE EARNINGS
Earnings attributable to parent 32.8 37.1 77.5
Impairments - - -
Profit on disposal of plant and - - -0.2
equipment
Profit - - -0.4
Tax and outside interests - - 0.2
Headline earnings 32.8 37.1 -12 77.3
PER SHARE INFORMATION (CENTS)
HEADLINE EARNINGS
Earnings per share 40.30 46.20 96.28
Disposal of assets - - -0.27
Impairments - - -
Basic and diluted headline earnings 40.30 46.20 -13 96.01
ADDITIONAL INFORMATION
Div/share paid (c) 20.0 15.0 +33 30.6
Div/share proposed (c) 16.0 15.6 +3 35.6
Dividend cover (times) 2.52 2.96 2.70
Weighted shares in issue (mil) 81.331 80.425 80.476
Capital expenditure (Rmil) 39.8 6.4 15.9
Capital commitments (Rmil) 6.0 - 14.7
Current ratio 3.44 3.34 5.31
Return on equity (%) 16.08 20.33 19.64
Closing share price (cents) 875 805 930
STATEMENT OF CHANGES IN EQUITY
Share Retained earnings Treasur Share Non- Total
capital y based control
shares payment ling
s interes
ts
30 Jun 10 21.5 352.6 -36.0 1.2 8.7 348.0
Comp - 37.1 - - 2.7 39.8
income
Dividends - -12.3 - - - -12.3
Other - - 0.7 0.2 -0.6 0.3
31 Dec 10 21.5 377.4 -35.3 1.4 10.8 375.8
Comp - 40.4 - - 2.9 43.3
income
Dividends - -12.3 - - -1.3 -13.6
Other - 0.3 1.2 - 0.6 2.1
30 Jun 11 21.5 405.8 -34.1 1.4 13.0 407.6
Comp - 32.8 - - 0.9 33.7
income
Dividends - -16.6 - - -0.3 -16.9
Other - 0.4 -3.0 -0.3 - -2.9
31 Dec 11 21.5 422.4 -37.1 1.1 13.6 421.5
SEGMENTAL ANALYSIS
Plastic Filling Property Unallocat Total
ed
Revenue
Jul-Dec 10 114.6 175.7 7.0 - 297.3
Total revenue 153.3 175.7 7.0 - 336.2
Intersegment -38.9 - - - -38.9
Jan-Jun 11 129.4 155.2 9.2 - 293.8
Total revenue 181.9 155.2 9.2 - 346.3
Intersegment -52.5 - - - -52.5
Jul-Dec 11 137.2 195.9 9.0 - 342.1
Total revenue 187.7 195.9 9.0 - 392.6
Intersegment -50.5 - - - -50.5
Attributable profit
Jul-Dec 10 26.0 7.7 3.4 - 37.1
Jan-Jun 11 27.1 7.6 5.7 - 40.4
Jul-Dec 11 26.3 1.9 4.6 - 32.8
Total assets
31 Dec 10 281.6 156.2 45.3 15.9 499.0
Total assets 340.7 159.5 87.0 15.9 603.1
Intersegment -59.1 -3.3 -41.7 - -104.1
30 Jun 11 305.0 124.7 44.0 15.9 489.6
Total assets 347.3 126.5 88.8 15.9 578.5
Intersegment -42.3 -1.8 -44.8 - -88.9
31 Dec 11 317.0 179.6 43.3 16.0 555.9
Total assets 338.0 180.8 91.1 16.0 625.9
Intersegment -21.0 -1.2 -47.8 - -70.0
STATEMENT OF CASH FLOWS
R mil 31/12/11 31/12/10 % change 30/06/11
Operating activities 2.1 7.5 46.8
Profit before tax 46.5 54.4 114.5
Non-cash items 16.0 16.2 31.4
Working capital changes -28.0 -38.3 -38.6
Taxation paid -15.5 -11.9 -34.6
Dividends paid -16.9 -12.9 -25.9
Investing activities -50.0 -6.3 -15.4
Property, plant and equipment -40.5 -6.3 -15.4
Investments -9.5 - -
Financing activities 6.1 2.5 3.1
Borrowings 9.0 1.8 1.3
Share transactions -2.9 0.7 1.8
Net cash flow -41.8 3.7 34.5
Opening balance 116.1 81.6 81.6
Closing balance 74.3 85.3 -36 116.1
Comprising
Cash and Cash equivalents 92.5 85.3 -28 128.9
Bank overdrafts -18.2 - -12.8
COMMENT
The increased international business focus into Sub Sahara Africa appears to
have catalysed the South African FMCG market supply chain management into
performance expectations well beyond historic capabilities. In this
environment the group has shown a first ever decline in its earnings on the
back of a 15% increase in revenue, which in itself is a reasonable
performance in the current pressurised FMCG market. Pre-production costs at
the new beverages plant in Johannesburg, incentive bonuses and a protracted
labour strike in July & August combined to dent our earnings growth
performance for the first time in this 40th year of existence. Despite this,
interim dividends have been slightly increased to 16 cents per share.
The increase in prepayments relates to the new Gauteng filling plant. The
group has a net cash outflow for this period reflecting investment into the
new beverages plant and other plant acquisitions as well as a substantial
increase in dividends paid, leaving R74.3m on hand at the end of the period.
In November Mr Michael Brain retired from executive duties whilst remaining
on as a non-executive director and Mr Grant Bohler was appointed as CFO.
Plastic Operations
Level earnings in plastics are indicative of the pressures evident in the
FMCG market. For the first time in its operational history, Plastics
incurred a loss in July/August resulting from protracted labour action in the
FMCG sector over several weeks. The high levels of intimidation were of
particular concern. Despite these setbacks, the business was able to show a
19.7% increase in revenue. Also affecting margins were large electricity
increases and material price increases absorbed by the group. Capex spend
this period amounted to R36.3m into capacity development. The order books
reflect a stable continuation of the first half performance.
Filling Operations
The filling operation has built onto its record performance of 2011, showing
a 11.5% growth in revenue, despite a cooler summer. Aggressive marketing
expenses, a R3.2 mil incentive bonus payout based on the previous year`s
earnings, a CO2 shortage, commissioning and pre-production costs for the new
Gauteng plant and changes in distribution logistic models have all
considerably contributed to the lower earnings performance. The Western Cape
operation is performing satisfactorily. The state of the art filling plant
in Gauteng was commissioned in January 2012, with only minor capital
expenditure outstanding. This new business will not meaningfully contribute
to the filling operation`s bottom-line for the following 2-3 seasons as
resources are focused on developing the brand in the region.
Prospects
A dynamic FMCG market environment is challenging many entrenched operating
principles. Herein lie multiple opportunities for the Group. Attention to
increased capacity, infrastructure and systems development remains the focus
for the immediate future.
BASIS OF PREPARATION
The condensed unaudited consolidated results have been prepared in accordance
with the Framework concepts and the measurement and recognition requirements
of the International Financial Reporting Standards, containing information
required by the IAS 34 Interim Financial Reporting, the AC500 standards as
issued by the Accounting Practices Board and in the manner required by the
Companies Act and the JSE Limited`s Listing Requirements.
This interim report has been prepared using the same accounting policies and
methods of computation as used in the most recently issued annual financial
statements, which should be read in conjunction with this interim report.
DIVIDEND DECLARATION
An interim dividend of 16.0c per share (2010: final dividend of 15.6c) has
been declared and is payable to shareholders on Monday, 26 March 2012. The
last day to trade will be Thursday, 15 March 2012. "Ex" dividend trading
begins on Friday, 16 March 2012 and the record date will be Friday, 23 March
2012. Share certificates may not be dematerialised or re-materialised between
Friday 16 March 2012 and Friday, 23 March 2012, both days inclusive. No tax
consequences are expected.
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)
P.F. SASS (chief Executive Officer)
Cape Town, 1 March 2012
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: 01/03/2012 09:18:02 Supplied by www.sharenet.co.za
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