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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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