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BOWLER METCALF LIMITED - Condensed unaudited consolidated results for six months ended 31 Dec 2012

Release Date: 13/03/2013 07:05
Code(s): BCF     PDF:  
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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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