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TRANSPACO LIMITED - Unaudited Interim Results for 6 months ended 31 December 2012

Release Date: 21/02/2013 07:05
Code(s): TPC     PDF:  
Wrap Text
Unaudited Interim Results for 6 months ended 31 December 2012

Transpaco Limited
(Incorporated in the Republic of South Africa)
Registration number 1951/000799/06
ISIN: ZAE000007480
JSE Share code: TPC
Income tax number: 9975/112/71/6


UNAUDITED INTERIM GROUP RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2012 AND DIVIDEND ANNOUNCEMENT

REVENUE UP 10%    
HEADLINE EARNINGS PER SHARE up 2%    
DIVIDEND PER SHARE 36,5 cents

INTRODUCTION
The board is pleased to report on the period ending 31 December 2012 (the period) in which Transpaco 
continued to deliver satisfactory results despite a still challenging economic environment.

Trading during the period was adversely impacted by widespread industrial action specifically in the transport and mining sectors.

Financial Results
The group increased headline earnings by 3,4% to R43,3 million (December 2011: R41,9 million).

Headline earnings per share (HEPS) grew by 2,4% to 135,4 cents (December 2011: 132,3 cents). 
Earnings per share (EPS) increased by 1,1% to 135,6 cents (December 2011: 134,1 cents).

Diluted HEPS rose by 2,9% to 132,5 cents (December 2011: 128,7 cents).

Total operating profit grew slightly to R 60,2 million (December 2011: R59,3 million). 

Operating profit in the Paper division continued to increase, against a decline in operating profit in the 
Plastics division as a result of tough market conditions. 

During the period Transpaco generated R37,9 million from operating activities compared to utilising 
R1,8 million for the comparative period ended December 2011. The groups net interest-bearing debt-to-equity 
position improved to a cash positive position (December 2011: 7% geared) with an interest cover of 100 times (December 2011: 116 times).

Net asset value per share increased by 13,7% to 1 090 cents (December 2011: 959 cents).

Prospects 
The group will continue its proven business strategy, targeting organic growth while maintaining strict financial 
control and at the same time identifying and pursuing appropriate acquisitions.

Dividend
The board has declared an interim gross cash dividend out of income reserves of 36,5 cents per share 
(December 2011:31 cents per share) for the six-month period ending 31 December 2012, an increase of 18%. 
Transpaco has no STC credits. After applying the dividend withholding tax of 15% a net interim dividend of 31,02500 cents 
per share will be paid to those shareholders who are not exempt from the dividends tax. The issued shares at the date of 
declaration is 33 177 372 ordinary shares.

The salient dates for the dividend are as follows:
Last date to trade shares cum dividend 		Thursday, 14 March 2013
Shares trade ex dividend       			Friday, 15 March 2013
Record date           				Friday, 22 March 2013
Payment date           				Monday, 25 March 2013

Share certificates may not be dematerialised or rematerialised between Friday, 15 March 2013 and Friday, 22 March 2013, both days inclusive.

Basis of Preparation and Accounting Policies
The unaudited interim 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), 
the presentation and disclosure requirements set out in IAS 34  Interim Financial Reporting and comply with the Listings Requirements 
of the JSE Limited, the AC500 series as issued by the Accounting Practices Board or its successor 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 groups annual financial 
statements for the year ended 30 June 2012. Transpaco has adopted all applicable new and amended standards, the effect of which had 
no material impact on the unaudited interim financial results.

Approval and Preparation
These unaudited interim financial results have been prepared under the direction and supervision of the Financial Director, L Weinberg CA (SA). 

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			21 February 2013
Auditors		Ernst & Young Incorporated
Transpaco Limited 	Registration number: 1951/000799/06
			Share code: TPC; ISIN ZAE000008480
			Income tax number: 9975/112/71/6
Company secretary	HJ van Niekerk
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

STATEMENT OF COMPREHENSIVE INCOME
		
					
				Notes	Unaudited		Unaudited	Audited
					6 months		6 months	12 months
					December		December	June 
R000	Note				2012		%	2011		2012
CONTINUING OPERATIONS	
Revenue					607 051			553 684		1 047 021
Turnover				606 060		9.6	552 785		1 044 221
Cost of sales				(384 616)		(346 802)	(660 088)
Profit before operating costs 
and depreciation			221 444		7.5	205 983		384 133
Operating Costs				(145 805)		(129 926)	(256 077)
Depreciation				(15 461)		(12 759)	(27 486)
Operating profit 			60 178		(4.9)	63 298		100 570
Finance income				991			899		2 800
Finance costs				(1 599)			(1 543)		(4 032)
Profit before taxation			59 570		(4.9)	62 654		99 338
Taxation				(16 180)		(17 333)	(29 019)
Profit for the period from 
continuing operations			43 390		(4.3)	45 321		70 319
Loss for the period from 
discontinued operations		1				(2 809)		(3 756)
Profit for the period			43 390		2.1	42 512		66 563
Other comprehensive income				
Total comprehensive income		43 390		2.1	42 512		66 563
Weighted average ranking number 
of shares in issue (000)		32 000			31 691		31 782
Diluted weighted average 
ranking number of shares in 	
issue (000)				32 710			32 577		32 485
Continuing operations	
Earnings per share (cents)		135,6		(5,2)	143,0		221,3
Diluted earnings per share (cents)	132,7		(4,6)	139,1		216,5
Headline earnings per share (cents)	135,4		(4,0)	141,0		218,7
Diluted headline earnings per 
share (cents)				132,5		(3,4)	137,2		214,0
Continuing and discontinued operations	
Earnings per share (cents)		135,6		1,1	134,1		209,4
Diluted earnings per share (cents)	132,7		1,7	130,5		204,9
Headline earnings per share (cents)	135,4		2,4	132,3		205,6
Diluted headline earnings 
per share (cents)			132,5		2,9	128,7		201,1
Dividend per share (cents)*		36,5		17,7	31,0		80,0
*Dividend declared after the period	
Reconcilliation of headline earnings (R000)	
Continuing operations	
Basic earnings				43 390			45 321		70 319
Profit on disposal of property, 
plant and equipment			(61)			(628)		(797)
Headline earnings			43 329			44 693		69 522
Continuing  and discontinued operations	
Basic earnings				43 390			42 512		66 563
Profit on disposal of property, 
plant and equipment			(61)			(590)		(1 230)
Headline earnings			43 329			41 922		65 333

NOTE: 1) The discontinued operation relates to the plant and machinery of the 	PET and PVC divisions 
that were disposed of during the previous financial year.


STATEMENT OF FINANCIAL POSITION

						Unaudited	Unaudited	Audited
				Note		6 months	6 months	12 months
R'000	 					Dec 2012	Dec 2011	June 2012
ASSETS				
Non-current assets				190 055		175 032		195 482
Property, plant and equipment			181 224		164 160		185 659
Intangibles					482		482		482
Goodwill					3 204		3 204		3 204
Unlisted investments				-		33		-
Long-term receivables				1 822		4 024		2 951
Deferred taxation				3 323		3 129		3 186
Current assets					371 331		325 918		368 685
Inventories					108 554		90 662		123 521
Trade and other receivables			194 318		217 528		169 942
Short-term receivables				2 202		2 306		2 110
Taxation receivable				965		972		2 560
Cash and cash equivalents			65 292		14 450		70 552
Non-current assets classified as 
held for sale			1		885		2 765		885
TOTAL ASSETS	 				562 271		503 715		565 052
EQUITY AND LIABILITIES				
Capital and reserves 				348 913		303 944		320 523
Issued share capital				320		317		320
Share premium					11 019		11 019		11 019
Other reserves					3 056		1 783		2 438
Distributable reserve				334 518		290 825		306 746
Non-current liabilities				46 924		36 287		46 694
Interest-bearing borrowings			24 667		17 178		24 968
Deferred taxation				22 257		19 109		21 726
Current liabilities				166 434		163 484		197 835
Trade payables and accruals			134 747		127 872		162 951
Provisions					15 495		13 546		16 186
Current portion of interest-bearing borrowings	14 639		17 676		18 191
Taxation payable				1 553		4 390		507
				
TOTAL EQUITY AND LIABILITIES			562 271		503 715		565 052
Number of shares in issue ('000)				
(Net of treasury shares)			31 991		31 691		31 691
Net movement in treasury shares			26		-		300
Ranking number of shares			32 017		31 691		31 991
Salient features				
Net asset value per share (cents)		1 090		959		1 002
Operating margin %				9,9		10,5		10,0
Net interest-bearing debt:equity ratio %	Net cash 			Net cash
						positive	7		positive
Net interest cover (x)				100		116		68

STATEMENT OF CASH FLOWS
							Unaudited	Unaudited	Audited
							6 months	6 months	12 months
							December	December	June
R000							2012		2011		2012
Cash flow from operating activities	
	Cash generated/(utilised) 
	from operations					37 868		(1 797)		101 893
	Dividends paid 					(15 765)	(13 627)	(23 452)
	Finance costs from continuing operations	(1 599)		(1 543)		(4 032)
	Finance costs from discontinued operations					(452)
	Finance income from continuing operations	991		899		2 800
	Finance income from discontinued operations			133		271
	Taxation paid					(13 145)	(12 377)	(26 784)
Net cash inflow/(outflow) from operating activities	8 350		(28 312)	50 244
Cash flow from investing activities	
	Proceeds on disposal of property, plant 
	and equipment					199		10 025		13 341
	Expansion and replacement of property, 
	plant and equipment				(11 140)	(29 948)	(67 007)
	Decrease in unlisted investments						17
	Decrease/(increase) in long-term receivables	1 129		(4 024)		(2 951)
	Increase in short-term receivables		(92)		(2 306)		(2 110)
Net cash outflow from investing activities		(9 904)		(26 253)	(58 710)
Cash flow from financing activities	
	Decrease in interest-bearings borrowings	(301)		(8 716)		(926)
	Decrease in current portion of 
	interest-bearing borrowings			(3 552)		(2 762)		(2 247)
	Movement in treasury shares			147				1 698
Net cash outflow from financing activities		(3 706)		(11 478)	(1 475)
Net movement in cash for the period			(5 260)		(66 043)	(9 941)
Cash and cash equivalents at the beginning 
of the period						70 552		80 493		80 493
Cash and cash equivalents at the end of the period	65 292		14 450		70 552


STATEMENT OF CHANGES IN EQUITY
				
												Distri-	
						Share		Share 		Other 		butable		Total
R000						Capital		Premium		Reserves	Reserve		Group
Balance at 30 June 2011 (audited)		317		11 019		1 204		261 940		274 480
Total comprehensive income									42 512		42 512
Share-based payments								579				579
Dividend paid											(13 627)	(13 627)
Balance at 31 December 2011 (unaudited)		317		11 019		1 783		290 825		303 944
Total comprehensive income									24 051		24 051
Share-based payments								655				655
Dividend paid											(9 825)		(9 825)
Movement in treasury shares			3						1 695		1 698
Balance at 30 June 2012 (audited)		320		11 019		2 438		306 746		320 523
Total comprehensive income									43 390		43 390
Share-based payments								618				618
Dividend paid											(15 765)	(15 765)
Movement in treasury shares									147		147
Balance at 31 December 2012 (unaudited)		320		11 019		3 056		334 518		348 913


SEGMENTAL ANALYSIS 
								Paper 		Properties		
								and		and		Total			
						Plastic		Board		Group		continuing	Discontinued	Total
R000						Products	Products	Services	operations	operations	Group
Turnover  2011					381 474		224 586				606 060				606 060
Turnover to external customers			401 911		232 749				634 660				634 660
Less turnover to internal customers		20 437		8 163				28 600				28 60
Turnover  2011					351 075		201 710				552 785		11 128		563 913
Turnover to external customers			370 933		210 917				581 850		11 133		592 983
Less turnover to internal customers		19 858		9 207				29 065		5		29 070
Operating profit  2012				30 962		27 664		1 552		60 178				60 178
Operating profit/(loss)  2011			40 783		20 717		1 798		63 298		(4 034)		59 264
Profit before tax- 2012				30 161 	 	27 537 	 	1 872 	 	59 570 		    		59 570 
Profit/(loss) before tax - 2011			40 009 	 	20 446 	 	2 199 	 	62 654 		(3 901) 	58 753
Capital expenditure  2012			4 410		6 242		488		11 140				11 140
Capital expenditure  2011			23 136		6 462		153		29 751		197		29 948
Assets  2012					333 961		153 686		74 624		562 271				562 271
Assets  2011					318 936		147 210		21 232		487 378		16 337		503 715
Liabilities  2012				128 187		65 942		19 229		213 358				213 358
Liabilities  2011				119 030		52 846		27 194		199 070		701		199 771


DISCONTINUED OPERATIONS
						Unaudited	Unaudited	Audited
						6 months	6 months	12 months
						December	December	June
R000						2012		2011		2012
Turnover 							11 128		9 976
Expenses							15 162		(14 834)
Operating loss							(4 034)		(4 858)
Finance income							133		271
Finance costs									(452)
Loss before tax from 
discontinued operations						(3 901)		(5 039)
Taxation							1 092		1 283
Loss after tax from discontinued operations			(2 809)		(3 756)
Loss per share (cents) from 
discontinued operations						(8,9)		(11,8)
Diluted loss per share (cents) from 
discontinued operations						(8,6)		(11,6)
Headline loss per share (cents) from 
discontinued operations						(8,7)		(13,2)
Diluted headline loss per share (cents) from 
discontinued operations						(8,5)		(12,9)
Cash flows from discontinued operations		
Net cash flows from operating activities			(9 017)		(7 193)
Net cash flows from investing activities			7 292		5 305
Net cash flows from financing activities					
Net cash flows							(1 725)		(1 888)

CAPITAL COMMITMENTS
						Unaudited	Unaudited	Audited
						6 months	6 months	12 months
						December	December	June
R000						2012		2011		2012
Capital expenditure authorised and contracted
Plant and equipment				25 256		27 982		12 821
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