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Condensed unaudited consolidated results for six months ended 31 Dec 2012
BOWLER METCALF LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1972/005921/06)
Share code: BCF ISIN code: ZAE000030797
(“Bowler” or “the company”)
CONDENSED UNAUDITED CONSOLIDATED RESULTS FOR THE SIX MONTHS ENDED 31
DECEMBER 2012
Earnings + 7% Dividend + 9%
R mil 31-12-12 31-12-11 Change 30-06-12
STATEMENT OF FINANCIAL POSITION
Non-current Assets 214.6 193.4 225.8
Property , plant & equipment 183.7 162.2 195.4
Deferred tax 5.5 4.5 5.0
Intangible assets 15.9 15.9 15.9
Loan 9.5 9.5 9.5
Investments - 1.3 -
Current Assets 358.7 362.5 308.9
Inventories 81.8 67.0 70.8
Trade and other receivables 145.0 157.4 109.3
Prepayments 13.0 41.5 2.4
Cash and cash equivalents 65.4 92.5 47.6
Other financial assets 48.4 - 75.2
Taxation 5.1 4.1 3.6
Total Assets 573.3 555.9 + 3 534.7
Total Equity 456.8 421.5 + 8 434.2
Non-current liabilities 27.2 29.0 28.4
Deferred Tax 14.6 14.6 15.8
Borrowings - variable interest 3.1 4.9 3.1
Borrowings - fixed interest 9.5 9.5 9.5
Current Liabilities 89.3 105.4 72.1
Trade and other payables 84.4 83.4 63.1
Bank overdrafts 1.9 18.2 4.6
Borrowings - interest bearing 2.7 2.6 4.1
Taxation 0.3 1.2 0.3
Total Equity & Liabilities 573.3 555.9 534.7
STATEMENT OF COMPREHENSIVE INCOME
Revenue 331.1 327.5 + 1 645.8
Other income 1.8 3.2 7.1
Operating costs (197.8) (206.2) (409.6)
Depreciation (19.3) (15.9) (35.5)
Impairments - - (1.1)
Rent & property finance (2.6) (2.3) (4.3)
Staffing costs (67.5) (60.1) (124.2)
Profit from operations 45.8 46.2 78.2
Net finance income 5.1 0.3 2.8
- income 6.3 1.4 5.0
- costs (1.2) (1.1) (2.2)
Net profit before tax 50.9 46.5 + 9 81.0
Income tax expense (13.8) (12.8) (21.8)
Total profit and comprehensive income 37.1 33.7 59.2
Attributable to non-controlling interests (2.1) (0.9) (1.0)
Attributable to parent 35.0 32.8 + 7 58.2
Earnings and diluted earnings per share
(c) 43.00 40.30 + 7 71.72
HEADLINE EARNINGS
Earnings attributable to parent 35.0 32.8 58.2
Impairments - - -
Profit on disposal of plant and
Equipment - - (0.1)
profit - - (0.2)
tax and outside interests - - 0.1
Profit on disposal of plant and
Equipment - - (1.0)
profit - - (1.0)
tax and outside interests - - -
Headline earnings 35.0 32.8 + 7 57.1
Earnings per share(c) 43.00 40.30 71.72
Disposal of plant and Equipment (c) - - (0.16)
Disposal of investment (c) - - (1.24)
Basic and diluted headline earnings (c) 43.00 40.30 + 7 70.32
ADDITIONAL INFORMATION
Dividend/share paid (c) 20.00 20.00 + 0 36.00
Ordinary dividend proposed (c) 17.50 16.00 + 9 36.00
Dividend cover (times) 2.46 2.52 2.30
Weighted shares in issue (mil) 81.32 81.331 81.172
Capital expenditure (Rmil) 7.40 40.50 63.70
Capital commitments (Rmil) 13.70 6.00 2.00
Current ratio 4.02 3.44 4.28
Return on equity (%) 15.85 14.68 13.84
Closing share price (cents) 760 875 778
R mil
STATEMENT OF CHANGES IN EQUITY
Share Non-
controlli
Share Retained Treasury Based ng Total
Capital Earnings Shares Payments Interests Equity
30 Jun 11 21.50 405.80 (34.10) 1.40 13.00 407.60
Comprehensive Income
32.80 0.90 33.70
Dividends (16.60) (0.30) (16.90)
Other 0.40 (3.00) (0.30) (2.90)
31 Dec 11 21.5 422.4 (37.1) 1.1 13.6 421.5
Comprehensive Income
- 25.4 - - 0.1 25.5
Dividends (13.0) (13.0)
Other - 0.1 0.1 0.2
30 Jun 12 21.5 434.8 (37.0) 1.2 13.7 434.2
Comprehensive Income
- 35.0 - - 2.1 37.1
Dividends - (16.3) 1.7 0.1 - (14.5)
Other - - - - - -
31 Dec 12 21.5 453.5 (35.3) 1.3 15.8 456.8
SEGMENTAL ANALYSIS
Unallocat
Plastic Filling Property ed Total
Revenue
Jul-Dec 11 146.2 181.3 - - 327.5
- total revenue 187.7 181.3 9.0 - 378.0
- intersegment (41.5) (9.0) - (50.5)
Jan-Jun 12 148.7 169.5 0.1 - 318.3
- total revenue 195.0 169.5 9.2 - 373.7
- intersegment (46.3) - (9.1) - (55.4)
Jul-Dec 12 140.9 190.0 0.2 - 331.1
- total revenue 188.5 190.0 9.3 - 387.8
- intersegment (47.6) - (9.1) - (56.7)
Attributable Profits
Jul-Dec 11 26.3 1.9 4.6 - 32.8
Jan-Jun 12 21.1 (0.4) 4.7 - 25.4
Jul-Dec 12 25.0 5.6 4.4 35.0
Total Assets
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)
30 Jun 12 342.8 133.1 42.9 15.9 534.7
- total assets 378.8 134.8 93.2 15.9 622.7
- intersegment (36.0) (1.7) (50.3) - (88.0)
31 Dec 12 343.8 167.9 44.7 16.9 573.3
- total assets 380.1 168.1 94.8 16.9 659.9
- intersegment (36.3) (0.2) (50.1) - (86.6)
%
STATEMENT OF CASH FLOWS 31/12/12 31/12/11 Change 30/06/12
Operating Activities 0.9 2.1 67.1
Profit before tax 50.9 46.5 81.0
Non-cash items 19.3 16.0 35.6
Working capital changes (36.1) (28.0) 4.6
Taxation paid (16.9) (15.5) (24.2)
Dividends paid (16.3) (16.9) (29.9)
Investing Activities 19.3 (50.0) (146.1)
Property plant and
equipment (7.4) (40.5) (63.7)
Loans - (9.5) (9.5)
Transfer from/(to)
income funds 26.7 (75.2)
Disposal of investment - - 2.3
Financing Activities 0.3 6.1 5.9
Borrowings - variable
interest (1.4) 9.0 (0.7)
Borrowings - fixed
interest - - 9.5
Treasury shares -
acquisitions - (2.9) (13.8)
Treasury shares -
disposals 1.7 - 10.9
- - -
Net Cash Flow 20.5 (41.8) (73.1)
Opening balance 43.0 116.1 116.1
- - -
Closing balance 63.5 74.3 +48 43.0
Comprising:
Cash & cash equivalents 65.4 92.5 +37 47.6
Bank Overdrafts (1.9) (18.2) (4.6)
COMMENT
Despite tough trading conditions, the directors are pleased to announce a modest
improvement over the corresponding period of the previous year.
Group revenue has increased by 1%, and attributable income and headline earnings
by 7%. Maintaining an approximate cover of 2.5 times, a dividend of 17.5 cps has
been declared, being an increase of 9% on the previous year.
As announced on 25 January 2013, Bowler Metcalf has acquired the remaining
minority interest in the Quality Beverages group, comprising filling and
property elements, conditional upon shareholder approval by the end of March
2013.
Plastic Operations
The plastics business has experienced tough market conditions during this
trading period with an uncharacteristic slowing of activity levels toward the
end of the period.
Filling Operations
The filling operations have shown a satisfactory growth of 5% in turnover during
this period. The production facility in Johannesburg, commissioned at the end of
2011, is running well, although not yet contributing positively to the bottom-
line.
Prospects
Both the plastic and filling operations remain focussed on their core business
strategies in these challenging times. Material price volatility, on the back of
oil price and exchange rate fluctuations, is continuing to be experienced in the
plastic operation.
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 Listings 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. This
has necessitated a correction to revenue, sundry income and operating costs in
the statement of comprehensive income and segmental analysis for the comparative
interim period to 31 December 2011.
CASH DIVIDEND DECLARATION
An interim gross cash dividend of 17.5 cents per share ("cps") (2011: 16.0 cps)
has been declared for the six months ended 31 December 2012 and is payable to
shareholders on Monday, 15 April 2013. The last day to trade will be Friday, 5
April 2013. "Ex" dividend trading begins on Monday, 8 April 2013 and the record
date will be Friday, 12 April. Share certificates may not be dematerialised or
re-materialised between Monday, 8 April 2013 and Friday, 12 April 2013, both
days inclusive. Directors confirm that the solvency and liquidity test is
satisfied at the date of this report. The test will be performed again at the
payment date.
This dividend will be made from income reserves. The gross dividend is 17.5 cps.
Dividend Withholding Tax (DWT) is 15%. There are Secondary Tax on Companies
(STC) credits of R1,345,529 available for set off against the DWT, equivalent to
1.52 cps. The net local cash dividend to shareholders liable for DWT will
therefore be 15.103 cps.
The number of shares in issue at the date of declaration is 88 428 066 shares.
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 (Non-Exec Chairman)
P.F. SASS (Chief Executive Officer)
Cape Town, 13 March 2013 Prepared by LV Rowles(CA (SA)
REGISTERED AUDITOR
Mazars - Partner Jaco Cronje - Registered Auditor
Mazars House, Rialto Road,
Grand Moorings Precinct, Century City, 7441
SPONSORS
Arcay Moela Sponsors (Pty) Ltd
3 Anerley Road
Parktown, 2193
TRANSFER SECRETARIES
Computershare Investor Services (Pty) Ltd
P.O. Box 61051, Marshalltown, 2107
Date: 13/03/2013 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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