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BOWLER METCALF LIMITED - Audited Summarised Consolidated Results for the Year Ended 30 June 2012

Release Date: 26/09/2012 17:50
Code(s): BCF     PDF:  
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Audited Summarised Consolidated Results for the Year Ended 30 June 2012

Bowler Metcalf Limited
REG NO : 1972/005921/06        
ALPHA CODE : BCF           
ISIN CODE : ZAE000030797


AUDITED SUMMARISED CONSOLIDATED RESULTS FOR THE YEAR ENDED 30 JUNE 2012

                                                                           %
R mil                                                    30-06-12       Change       30-06-11         R mil
STATEMENT OF FINANCIAL POSITION                                                                       STATEMENT OF CHANGES IN EQUITY
Non-current Assets                                          225.8                       158.0                                                                             Share           Non-
Property, plant & equipment                                 195.4                       137.6                              Share        Retained        Treasury          Based    controlling         Total
Deferred tax                                                  5.0                         3.2                             Capital       Earnings          Shares       Payments      Interests        Equity
Intangible assets                                            15.9                        15.9
Investments                                                     -                         1.3         30 June 10             21.5          352.6           (36.0)           1.2            8.7         348.0
Loan                                                          9.5                           -         Comprehen-
                                                                                                      sive Income               -           77.5               -              -            5.6          83.1
Current Assets                                              308.9                       331.6         Dividends                 -          (24.6)              -              -           (1.3)        (25.9)
Inventories                                                  70.8                        67.3         Purchases                 -              -               -              -              -             -
Trade and other receivables                                 109.3                        99.7         Sales                     -              -             1.9              -              -           1.9
Prepayments                                                   2.4                        31.9         Other                     -            0.3               -            0.2              -           0.5
Cash and cash equivalents                                    47.6                       128.9                          ------------   ------------   ------------   ------------   ------------   ------------
Other financial assets                                       75.2                          -          30 June 11              21.5          405.8          (34.1)           1.4           13.0         407.6
Taxation                                                      3.6                         3.8         Comprehen-
                                                   ----------------             ----------------      sive Income                -           58.2              -              -            1.0          59.2
Total Assets                                                534.7        +9             489.6         Dividends                  -          (29.6)             -              -           (0.3)        (29.9)
                                                   ================             ================      Purchases                  -              -          (13.8)             -              -         (13.8)
                                                                                                      Sales                      -              -           10.9              -              -          10.9
Total Equity                                                 434.2       +7             407.6         Other                      -            0.4              -           (0.2)             -           0.2
Non-current liabilities                                       28.4                       19.6                          ------------   ------------   ------------   ------------   ------------   ------------
Deferred Tax                                                  15.8                       15.3         30 June 12              21.5          434.8          (37.0)           1.2            3.7         434.2
Borrowings - variable interest                                 3.1                        4.3                          ============   ============   ============   ============   ============   ============
Borrowings - fixed interest                                    9.5                         -

Current Liabilities                                          72.1                        62.4         SEGMENTAL ANALYSIS
Trade and other payables                                     63.1                        44.4                                             Plastic        Filling       Property    Unallocated        Total
Bank overdrafts                                               4.6                        12.8         Revenue
Borrowings - interest bearing                                 4.1                         3.7         2011                                  260.1          330.9           0.1              -         591.1
Taxation                                                      0.3                         1.5         - total revenue                       335.3          330.9          16.2              -         682.4
                                                   ----------------            ----------------       - intersegment                        (75.2)             -         (16.1)             -         (91.3)
Total Equity & Liabilities                                  534.7                       489.6
                                                   ================            ================       2012                                  294.9          350.8           0.1              -         645.8
                                                                                                      - total revenue                       382.7          350.8          18.2              -         751.7
STATEMENT OF COMPREHENSIVE INCOME                                                                     - intersegment                        (87.8)             -         (18.1)             -        (105.9)
Revenue                                                    645.8         +9             591.1                                         ============   ============  ============   ============   ============
Other income                                                 7.1                          5.7
Operating costs                                           (538.1)                      (452.2)         Attributable Profits
Depreciation                                               (35.5)                       (31.2)         2011                                  53.1           15.3           9.1              -          77.5
Impairments                                                 (1.1)                           -          2012                                  47.4            1.5           9.3              -          58.2
                                                    ----------------            ----------------                                      ============   ============   ============   ============  ============
Profit from operations                                      78.2                        113.4
Net interest                                                 2.8                          1.1          Total Assets
                                                    ----------------            ----------------       2011                                 347.3          126.5          88.8          (73.0)        489.6
Net profit before tax                                       81.0       - 29             114.5          - total assets                       305.0          124.7          44.0           15.9         489.6
Taxation                                                    (21.8)                      (31.4)         - intersegment                        42.3            1.8          44.8          (88.9)            -
                                                    ----------------            ----------------
Total profit and comprehensive income                        59.2                        83.1          2012                                 378.8          134.8          93.2          (72.1)        534.7
Attributable to non-controlling interests                    (1.0)                       (5.6)         - total assets                       342.8          134.6          42.9           15.9         536.2
                                                    ----------------            ----------------       - intersegment                        36.0            0.2          50.3          (88.0)         (1.5)
Attributable to parent                                       58.2      - 25              77.5                                         ============   ============  ============   ============  ============ 
                                                    ================           =================
Earnings & diluted earnings per share (c)                    71.72     - 26             96.28          STATEMENT OF CASH FLOWS                                        30-06-12                      30-06-11
                                                    ================           =================
                                                                                                       Operating Activities                                               67.1                          77.0
HEADLINE EARNINGS                   `                                                                  Profit before tax                                                  81.0                         114.5
Earnings attributable to parent                               58.2                       77.5          Non-cash items                                                     35.6                          31.4
Profit on disposal of plant & equipment                       (0.1)                      (0.2)         Working capital changes                                             4.6                          (8.4)
profit/(loss)                                                 (0.2)                      (0.4)         Taxation paid                                                     (24.2)                        (34.6)
tax and outside interests                                      0.1                        0.2          Dividends paid                                                    (29.9)                        (25.9)
Disposal of investment                                        (1.0)                         -
profit/(loss)                                                 (1.0)                         -          Investing Activities                                             (146.1)                        (45.6)
tax and outside interests                                        -                          -          Property plant and equipment                                      (63.7)                        (45.6)
                                                    ----------------           ----------------        Loans                                                              (9.5)                            -
Headline earnings                                              57.1    - 26              77.3          Transfer to income funds                                          (75.2)                            -
                                                    ================           ================        Disposal of investment                                              2.3                             -
Earnings per share(c)                                         71.72                     96.28
Disposal of plant and equipment (c)                           (0.16)                    (0.27)         Financing Activities                                                5.9                           3.1
Disposal of investment (c)                                    (1.24)                        -          Borrowings - variable interest                                     (0.7)                          1.3
                                                    ----------------           ----------------        Borrowings - fixed interest                                         9.5                             -
Basic & diluted headline earnings (c)                         70.32    - 27               96.01        Treasury shares - acquisitions                                    (13.8)                            -
                                                    ================            ===============        Treasury shares - disposals                                        10.9                           1.8
                                                                                                                                                                   ------------                  ------------
ADDITIONAL INFORMATION                                                                                 Net Cash Flow                                                     (73.1)                         34.5
Dividend/share paid (c)                                      36.00         + 18           30.60        Opening balance                                                   116.1                          81.6
Dividend/share proposed (c)                                  36.00         +1             35.60                                                                    ------------                  ------------
Basic dividend cover (times)                                  2.30                         2.70        Closing balance                                                    43.0                          116.1
Weighted shares in issue (mil)                              81.172                       80.474                                                                    ============                  ============
Capital expenditure (Rmil)                                   93.85                        15.90        Comprising:
Capital commitments (Rmil)                                    2.00                        14.70        Cash & cash equivalents                                            47.6                          128.9
                                                                                                       Bank Overdrafts                                                    (4.6)                         (12.8)
COMMENT
                                                                                                       Packaging , in a rapidly shifting consumer market, is increasing its profile as the key
Group revenue continued its uninterrupted year-on-year growth increasing by 9,2% to                    communicator to the growing base of customers. In this market Bowler Plastics is focussed
R645.8m (2011: R591,1m). It was encouraging to see a volume growth during this                         on a strategy of mass customisation and niche market developments. This drive will be
period. However, the costs of industry wide labour disruptions, inputs, conversion and                 supported by further capital expenditure into various technologies.
distribution within the plastics operations, as well as supply issues at the filling
operations and the costs of establishing the new bottling plant in Johannesburg took                   For Quality Beverages the target is set to achieve a successful market penetration of the
their toll on the bottom line. This resulted in group earnings decreasing by 24,9% to                  Jive brand in Gauteng and profitability in the medium term. As this is a greenfields approach,
R58,2m from R77,5m in 2011. To maintain and expand existing operations the group                       the benefits to the group will only manifest in the longer term with the course firmly set in the
made significant investments of R93,9m (2011: R15,9m) in property plant and                            months to come. The Western Cape is well prepared for the 2012 peak summer season.
equipment, all commissioned during the year. This was funded entirely out of cash flows
from operating activities. R75.1m of cash was transferred to an income fund.
                                                                                                       BASIS OF PREPARATION AND AUDIT REPORT

A local cash dividend of 20 cents per share (“cps”) (2011:20 cps ) has been declared,                  The condensed consolidated results have been prepared in accordance with the Framework
comprising a ‘basic’ final cash dividend of 15.4 cps in respect of 2012 and a further 4.6              concepts and the measurement and recognition requirements of the International Financial
cps in respect of prior years. Basic dividend cover has been moved to 2.3 times (2011:                 Reporting Standards, containing information required by the IAS 34 Interim Financial
2.7 times), thereby compensating for dividend withholding tax.                                         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.
                                                                                                       The unqualified audit report of the company's auditors, Mazars, is available for inspection at
Plastic Operations                                                                                     the company's registered office.

In tough trading conditions ,the rigid plastics business increased its revenue by 14.1%                This summarised report has been prepared using the same accounting policies and methods
to R382.7m. Operating costs and pressurised trading margins reduced the attributable                   of computation as used in the most recently issued annual financial statements, which
profits to 12.4 % of turnover. Projects , totalling R46,7m , have been progressed to                   should be read in conjunction with this summarised report.
address the economic challenges . The packaging market remains dynamic with
extensive global attention to the potential of the sub-Saharan markets.

                                                                                                       CASH DIVIDEND DECLARATION
Filling Operations
                                                                                                       A cash dividend of 20.0 cents per share ("cps") (2011: 20.0 cps) has been declared and is
                                                                                                       payable to shareholders on Monday, 29 October 2012. The last day to trade will be Friday,
As expected, the R 36.3m state-of-the-art filling line expansion into Gauteng has
                                                                                                       19 October 2012. "Ex" dividend trading begins on Monday, 22 October 2012 and the record
influenced the earnings for the filling operation. This was compounded by a 2 month
                                                                                                       date will be Friday, 26 October 2012. Share certificates may not be dematerialised or re-
shortage of CO2 and a staff bonus pay-out of R3.2m in lieu of the 2011 performance.
                                                                                                       materialised between Monday, 22 October 2012 and Friday, 26 October 2012, both days
The Gauteng operation is fully commissioned. The Western Cape operation continued
                                                                                                       inclusive. Directors confirm that the solvency and liquidity test is satisfied at the date of this
its growth with a 10% increase in turnover on the previous year.
                                                                                                       report. The test will be performed again at the payment date.

Property                                                                                               This dividend will be made from income reserves. The gross dividend is 20 cps. Dividend
The benefits associated with a stable long term property holding strategy continued to                 Withholding Tax (DWT) is 15%. There are Secondary Tax on Companies (STC) credits of
accumulate to the group as earnings rose by 2% to R9,3m (2011: R9,1m). Rentals                         R1,743,466 available for set off against the DWT, equivalent to 2 cps. The net local cash
remain market related. During the year under review, several projects were initiated in                dividend to shareholders liable for DWT will therefore be 17.3 cps.
the plastics operations to improve the work flow, and productivity and to maximise the                 Number of shares in issue at the date of declaration is 88 428 066 shares.
efficiencies around the available electricity capacity, particularly at the Cape Town
properties.                                                                                            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.
Prospects
The transition in senior executive has taken place during very challenging market and
operating conditions. The skills, expertise and resources at the disposal of Bowler
Plastics have ensured a focussed navigation through this trying trading period. The                    H.W. SASS (Non-Exec Chairman)
momentum and energy in the teams at both operations is evident in the passion and                      P.F. Sass (Chief Executive Officer)
determination with which they are addressing the challenges at hand.                                   Cape Town, 27 September 2012                                       Prepared by: LV Rowles CA(SA)

REGISTERED AUDITOR                                                       SPONSORS                      TRANSFER SECRETARIES                                               COMPANY TAX NUMBER
Mazars - Partner Yolandie Ferreira - Registered Auditor                  Arcay Moela Sponsors          Computershare Investor Services (Pty) Ltd                          9775130710
Mazars House, Rialto Road,                                               3 Anerley Road                P.O. Box 61051, Marshalltown, 2108
Grand Moorings Precinct, Century City, 7441                              Parktown, 2193

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