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UNAUDITED GROUP RESULTS FOR THE SIX MONTHS ENDED 27 JUNE 2012
DELTA EMD LIMITED
Registration number: 1919/006020/06
Share code: DTA ISIN: ZAE000132817
("Delta EMD" or "the Group")
UNAUDITED GROUP RESULTS FOR THE SIX MONTHS ENDED 27 JUNE 2012
CONDENSED GROUP STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
Six months Six months Year to
to June to June December
2012 2011 2011
Note R'000 R'000 R'000
Revenue 172 534 129 653 366 812
Gross profit 53 147 42 141 127 797
Underrecovery of manufacturing overheads (14 511) (8 854) (23 455)
Distribution expenses (15 792) (10 286) (29 948)
Administrative expenses (17 022) (21 314) (31 829)
Investment income 2 720 2 112 3 955
Net foreign exchange (losses)/gains (3 545) 711 (552)
Profit before taxation 4 996 4 510 45 968
Taxation (2 880) (1 984) 9 489
Normal taxation (1 651) (1 984) (14 505)
Secondary taxation on companies (1 229)
Capital gains taxation reversed 23 994
Profit for the period 2 115 2 526 55 457
Other comprehensive income
Increase in foreign currency translation reserve 621 690 4 850
Total comprehensive income for the period 2 736 3 216 60 307
Attributable to equity holders of
parent company
Profit for the period 2 115 2 526 55 457
Total comprehensive income for the period 2 736 3 216 60 307
Headline earnings attributable to
ordinary shareholders 1 2 118 2 625 31 703
Number of shares in issue ('000) 49 166 49 166 49 166
Weighted number of shares in issue ('000) 49 166 49 150 49 150
Dilutive number of shares in issue ('000) 49 166 49 166 49 166
Attributable earnings per share (cents)
basic 4,3 5,1 112,8
diluted 4,3 5,1 112,8
Dividend per share (cents) 25,0
Special dividend per share (cents)
CONDENSED GROUP STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
Six months Six months Year to
to June to June December
2012 2011 2011
R'000 R'000 R'000
ASSETS
Non-current assets
Property, plant and equipment 261 459 270 642 269 285
Other non-current asset 4 849 6 470 4 447
Current assets
Inventories 116 971 130 221 115 033
Trade and other receivables 107 279 84 129 146 827
Taxation overpaid 133
Bank balances and cash 132 559 104 478 118 996
Non-current assets held for sale 12 288 10 487 12 067
Total assets 635 405 606 560 666 655
EQUITY AND LIABILITIES
Total shareholders' funds 507 238 459 702 516 793
Non-current liabilities
Deferred taxation liabilities 46 951 50 288 49 690
Other non-current liabilities 7 685 8 380 7 262
Current liabilities
Trade and other payables 63 583 62 663 70 116
Foreign exchange contracts liability 11 937
Short-term provisions 2 500 2 500 2 500
Taxation payable 7 447 23 027 8 357
Total equity and liabilities 635 405 606 560 666 655
Net asset value per share (cents) 1 032 935 1 051
CONDENSED GROUP STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
Six months Six months Year to
to June to June December
2012 2011 2011
R'000 R'000 R'000
Cash generated by trading 13 557 11 355 61 415
Decrease/(increase) in working capital 19 098 (14 766) (43 144)
Cash generated by/(utilised in) operations 32 655 (3 411) 18 271
Net interest received 2 720 2 112 3 955
Taxation paid normal (6 530) (4 631)
Cash inflow/(outflow) from operating activities 28 845 (1 299) 17 595
Replacement capital expenditure (3 033) (8 361) (18 456)
(Increase)/decrease in non-current asset (402) (499) 1 524
Proceeds on disposal of property, plant and equipment 152 153
Net cash inflow/(outflow) before financing activities 25 410 (10 007) 816
Dividend paid ordinary (12 291)
Net increase/(decrease) in cash
and cash equivalents 13 119 (10 007) 816
Cash and cash equivalents
at beginning of period 118 996 112 964 112 964
Currency translation of cash in foreign subsidiary 444 1 521 5 216
Cash and cash equivalents at end of period 132 559 104 478 118 996
GROUP STATEMENT OF CHANGES IN EQUITTY
Share Foreign
capital currency Accumu-
and translation lated
premium reserve profit Total
R'000 R'000 R'000 R'000
Balance at 27 December 2010 4 856 (3 300) 454 930 456 486
Total comprehensive income for the period 3 216 3 216
Realisation of foreign currency translation reserve 690 (690)
Balance at 27 June 2011 4 856 (2 610) 457 456 459 702
Total comprehensive income for the period 57 091 57 091
Realisation of foreign currency translation reserve 4 160 (4 160)
Balance at 27 December 2011 4 856 1 550 510 387 516 793
Total comprehensive income for the period 2 736 2 736
Realisation of foreign currency translation reserve (929) (929)
Dividend paid (12 291) (12 291)
Balance at 27 June 2012 4 856 621 501 761 507 238
NOTES
Unaudited Unaudited Audited
Six months Six months Year to
to June to June December
2012 2011 2011
R'000 R'000 R'000
1. Reconciliation between attributable earnings
and headline earnings
Attributable earnings after taxation 2 115 2 526 55 457
Profit on disposal of fixed assets 3 137 240
Taxation effect (reversed) (38) (23 994)
Headline earnings attributable to ordinary shareholders 2 118 2 625 31 703
Attributable headline earnings per share (cents)
basic 4,3 5,3 64,5
diluted 4,3 5,3 64,5
2. Basis of presentation
The Group is domiciled in South Africa. The unaudited condensed consolidated interim financial results at and for the
half-year ended 27 June 2012 comprise the company and its subsidiaries (the 'Group').
The Group's principal accounting policies have been applied consistently over the current and prior financial periods/
years.
The Group's condensed consolidated interim financial results have been prepared in accordance with the recognition
and measurement criteria of International Financial Reporting Standards (IFRS), interpretations issued by the
International Financial Reporting Interpretations Committee (IFRIC) and in compliance with International Accounting
Standard (IAS) 34 as well as the AC 500 standards as issued by the Accounting Practices Board or its successor.
Unaudited Unaudited Audited
Six months Six months Year to
to June to June December
2012 2011 2011
R'000 R'000 R'000
3. Commitments
Capital commitments authorised but not contracted 3 150 1 484 4 377
Capital commitments contracted 8 422 2 157 1 625
11 572 3 641 6 002
Operating lease commitment 3 412 4 626 4 068
COMMENTARY
Delta EMD's financial performance for the half-year ended 27 June 2012 (the "period") reflects limited demand for
electrolytic manganese dioxide from global battery producers and higher input costs. Volumes produced and sold
by the Group's South African EMD production facility remain below capacity, price competition continues, and input
costs increased.
GROUP RESULTS
The Group's revenue for the period totaled R173 million, and was 32% higher than for the half-year ended
27 June 2011 (the "prior period"). Sales volumes improved, particularly of higher grade EMD. The majority of the
Group's sales during the period were made in Rand-denominated selling prices. The period's average Rand-
denominated selling price was in-line with the prior period.
The Group suffered from higher per unit production costs during the period due largely to higher energy-related input
costs and lower efficiencies. These higher input costs could not be recovered from selling price increases and the
Group's margins for the period were lower than for the prior period.
The Group's profit before taxation was adversely affected by an under recovery of manufacturing overheads of
R15 million due to limited production volumes, and by foreign exchange losses of R4 million related to US dollar sales
made during 2011.The Group's profit before tax for the period totaled R5 million and was in-line with the prior period.
Attributable earnings after taxation for the period totaled R2 million (2011: R3 million).
The Group's earnings per share for the period were 4,3 cents (2011: 5,1 cents), and headline earnings per share
were 4,3 cents (2011: 5,3 cents).
The Group's net cash inflow from trading for the period totaled R14 million (2011: R11 million). Working capital
decreased by R19 million due to a decrease in trade debtors, and the Group's capital expenditures for the period
totaled R3 million (2011: R8 million). The Group's period-end cash balance, after a R12 million dividend payment,
increased to R133 million from the December 2011 cash balance of R119 million.
DISPOSAL OF THE GROUP'S AUSTRALIAN PLANT SITE
Marketing efforts to sell the Group's former plant site in Australia continue.
PROSPECTS
The Group's second half sales volumes are expected to improve over the first half of 2012, whilst selling prices are
expected to remain under pressure. The Group's challenge remains to achieve the best possible sales mix in soft
market conditions. Production volumes are also expected to increase which should provide improved manufacturing
overhead recoveries. The majority of the Group's second half sales are expected to be Rand-denominated sales,
reducing the impact of foreign exchange movements.
Any reference to future financial performance included in this announcement has not been reviewed or reported on
by the Group's auditors.
DIVIDEND
No interim dividend has been declared.
PREPARER OF FINANCIAL STATEMENTS
These condensed consolidated financial statements have been prepared under the supervision of JS Seymore,
CA(SA), in his capacity as Finance Director of the Group.
TG Atkinson P Baijnath
(Chairman) (Chief Executive Officer)
15 August 2012
Johannesburg
DELTA EMD LIMITED
Registration number: 1919/006020/06
Share code: DTA ISIN: ZAE000132817
("Delta EMD" or "the Group")
Registered Office
15 Heyneke Street, Industrial Site, Nelspruit, 1200
Transfer Secretaries
Computershare Investor Services (Proprietary) Limited
70 Marshall Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107
Directors:
Independent non-executive:
LB Bird, AC Hicks, BR Wright
Non-executive:
TG Atkinson* (Chairman)
Executive:
P Baijnath (Chief Executive Officer)
JS Seymore, (CA)SA (Finance Director)
*USA
Sponsor:
Rand Merchant Bank (A division of FirstRand Bank Limited)
Date: 15/08/2012 11:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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