Wrap Text
Unaudited interim results for the six months ended 31 December 2012
DISTRIBUTION AND WAREHOUSING NETWORK LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1984/008265/06)
(“DAWN” or “the Group” or “the Company”)
Alpha code: DAW
ISIN: ZAE000018834
E-mail: info@dawnltd.co.za
Telephone: (011) 323 0450
UNAUDITED INTERIM RESULTS for the six months ended 31 December
2012
CONDENSED CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited Audited
6 months 6 months 12 months
31 December 31 December 30 June
% 2012 2011 2012
change R’000 R’000 R’000
Revenue 10 2 303 390 2 100 105 4 228 261
Cost of sales (1 699 623) (1 587 279) (3 193 127)
Gross profit 603 767 512 826 1 035 134
Net operating
expenses 9 (465 809) (427 269) (871 962)
Operating profit 61 137 958 85 557 163 172
Finance income 1 784 4 587 11 808
Finance expense (25 917) (30 816) (63 774)
Profit after net
financing costs 113 825 59 328 111 206
Results of associates 10 861 6 006 5 709
Impairment of
associate (233) – –
Profit before taxation 124 453 65 334 116 915
Income tax expense (34 304) (17 459) (32 584)
Profit for the
period 88 90 149 47 875 84 331
Profit attributable to:
Owners of the parent 89 231 47 285 83 033
Non-controlling interest 918 590 1 298
Profit for the period 90 149 47 875 84 331
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
6 months 6 months 12 months
31 December 31 December 30 June
% 2012 2011 2012
change R’000 R’000 R’000
Profit for the
period 90 149 47 875 84 331
Other
comprehensive
income
– Exchange
differences on
translating
foreign
operations 485 3 580 2 740
– Effects of cash
flow hedges 1 288 (748) (683)
– Taxation related
to components
of other
comprehensive
income (372) 224 191
Other comprehensive
income for the
period (net of
taxation) 1 401 3 056 2 248
Total comprehensive
income for the period 91 550 50 931 86 579
Total comprehensive
income attributable to:
Owners of the parent 90 637 50 122 85 109
Non-controlling
interest 913 809 1 470
91 550 50 931 86 579
Included above:
Depreciation and
amortisation 35 798 35 891 65 947
Operating lease rentals 43 851 40 049 81 678
Determination of
headline earnings
Attributable earnings 89 231 47 285 83 033
Adjustment for the
after-tax effect and
non-controlling
interest effect of:
– Net (loss)/profit on
disposal of property,
plant and equipment (82) (163) 3 567
– Impairment of property,
plant and equipment – – 2 405
– Impairment of associate 233 – –
Headline earnings 89 382 47 122 89 005
Statistics
Number of ordinary
shares (’000)
– in issue 241 443 240 243 240 243
– held in treasury (7 726) (8 675) (7 726)
Deferred ordinary shares
in issue (’000) 800 2 000 2 000
Weighted average number
of shares (’000)
– for earnings per share 234 517 233 568 234 063
– for diluted earnings
per share 234 517 234 517 238 567
Earnings per
share (cents) 88 38,05 20,25 35,47
Headline earnings
per share (cents) 89 38,11 20,16 38,03
Diluted earnings per
share (cents) 85 37,33 20,16 34,80
Diluted headline
earnings per share
(cents) 86 37,40 20,07 37,31
Operating profit (%) 6,0 4,1 3,9
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
31 December 31 December 30 June
% 2012 2011 2012
change R’000 R’000 R’000
Assets
Non-current assets 801 315 774 380 777 131
Property, plant and
equipment 385 338 384 859 378 031
Intangible assets 253 414 232 019 247 778
Investment in
associates 109 514 94 123 93 771
Deferred tax assets 53 049 62 659 57 551
Related party loans
receivable – 720 –
Current assets 1 926 016 1 743 092 1 894 254
Inventories 920 017 823 705 826 711
Trade and other
receivables 732 859 729 770 833 650
Cash and cash
equivalents 272 735 186 431 231 518
Derivative financial
instruments 93 295 677
Income tax assets 312 2 891 1 698
Total assets 2 727 331 2 517 472 2 671 385
Equity and liabilities
Capital and reserves 1 374 641 1 232 421 1 272 241
Equity attributable to
equity holders of
the Company 1 371 516 1 230 831 1 269 990
Non-controlling
interest 3 125 1 590 2 251
Non-current
liabilities 275 944 272 817 228 070
Borrowings 207 774 196 747 157 282
Deferred profit 29 047 34 839 31 943
Deferred tax liabilities 27 209 27 214 25 614
Retirement benefit
obligation 6 236 5 800 6 223
Derivative financial
instruments 5 678 8 217 7 008
Current liabilities 1 076 746 1 012 234 1 171 074
Trade and other
payables 789 715 666 274 867 951
Current portion of
borrowings 257 047 322 389 282 958
Derivative financial
instruments 1 397 644 928
Deferred profit 5 793 5 793 5 793
Income tax liabilities 22 794 17 134 13 444
Total equity and
liabilities 2 727 331 2 517 472 2 671 385
Capital commitments 38 807 27 274 36 504
Future commitments
Operating leases 377 642 456 086 428 138
Value per share
Asset value per share
– net asset
value (cents) 14 584,82 512,36 541,53
– net tangible
asset value (cents) 476,76 415,78 435,88
– market price (cents) 620 510 615
Market capitalisation
(R’000) 1 489 506 1 225 239 1 477 494
Net financial gearing
ratio (%)* 13,0 26,0 15,8
Current asset ratio (times) 1,8 1,7 1,6
* Includes cash and cash equivalents.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Unaudited Unaudited Audited
6 months 6 months 12 months
31 December 31 December 30 June
2012 2011 2012
R’000 R’000 R’000
Balance at beginning
of period 1 272 241 1 174 933 1 174 930
Total comprehensive
income for the period 91 550 50 931 86 579
Treasury shares acquired – – (281)
Acquisition of non-controlling
interest in subsidiaries (497) – –
Share-based payment charge 11 922 7 037 11 493
Treasury shares used to
settle share-based
payment obligation – – 8 407
Settlement of share-based
payment obligation – – (8 407)
Dividends paid to minorities
in subsidiary (575) (480) (480)
Balance at end of period 1 374 641 1 232 421 1 272 241
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
6 months 6 months 12 months
31 December 31 December 30 June
% 2012 2011 2012
change R’000 R’000 R’000
Cash generated
from operations 46 183 336 125 224 236 766
Working capital
changes (66 658) (22 352) 30 557
Net finance
charges paid (24 327) (28 524) (55 235)
Income tax paid (18 135) (22 227) (36 822)
Cash flow from
operating
activities 42 74 216 52 121 175 266
Cash flow from
investing
activities (53 033) (37 243) (35 112)
Cash flow from
financing activities (26 359) (20 071) (41 261)
Increase/(decrease)
in cash resources (5 176) (5 193) 98 893
Cash resources at
beginning of period 61 909 (34 526) (34 526)
Exchange losses on cash
and bank overdrafts (241) – (2 458)
Cash resources at end
of period 56 492 (39 719) 61 909
CONDENSED CONSOLIDATED SEGMENTAL ANALYSIS
Infra- DAWN
Building structure Solutions
R'000 R'000 R'000
6 months – 31 December 2012
(Unaudited)
Revenue 1 440 905 881 972 181 238
Revenue after intersegment
elimination reallocated 1 424 602 872 448 6 340
Depreciation and
amortisation (16 887) (10 427) (7 827)
Operating profit/(loss) 123 904 27 732 9 099
Net finance expense (13 398) (7 324) (997)
Results of associates 3 789 6 839 –
Tax expense (32 200) (6 398) (2 356)
Net profit/(loss) after tax 82 095 20 849 5 746
Assets 2 050 340 707 637 453 816
Liabilities 1 374 454 407 349 466 095
Capital expenditure ** 24 335 4 540 20 932
Head Office
and
consolidation* Total
R'000 R'000
Revenue (200 725) 2 303 390
Revenue after intersegment
elimination reallocated – 2 303 390
Depreciation and
amortisation (657) (35 798)
Operating profit/(loss) (22 777) 137 958
Net finance expense (2 414) (24 133)
Results of associates – 10 628
Tax expense 6 650 (34 304)
Net profit/(loss) after tax (18 541) 90 149
Assets (484 462) 2 727 331
Liabilities (895 208) 1 352 690
Capital expenditure ** 364 50 171
Infra- DAWN
Building structure Solutions
R'000 R'000 R'000
6 months – 31 December 2011
(Unaudited)
Revenue 1 355 005 750 487 151 264
Revenue after intersegment
elimination reallocated 1 353 209 740 489 6 407
Depreciation and
amortisation (18 905) (7 983) (7 980)
Operating profit/(loss) 90 915 16 574 56
Net finance (expense)/income (22 357) (4 798) (780)
Results of associates 3 108 2 898 –
Tax expense (18 905) (3 669) 1 631
Net profit/(loss) after tax 52 761 11 005 907
Assets 1 889 453 767 297 342 672
Liabilities 1 236 292 492 021 360 881
Capital expenditure ** 19 148 4 246 17 303
Head Office
and
consolidation* Total
R'000 R'000
Revenue (156 651) 2 100 105
Revenue after intersegment
elimination reallocated – 2 100 105
Depreciation and amortisation (1 023) (35 891)
Operating profit/(loss) (21 988) 85 557
Net finance (expense)/income 1 706 (26 229)
Results of associates – 6 006
Tax expense 3 484 (17 459)
Net profit/(loss) after tax (16 798) 47 875
Assets (481 950) 2 517 472
Liabilities (804 143) 1 285 051
Capital expenditure ** 132 40 829
Infra- DAWN
Building structure Solutions
R'000 R'000 R'000
12 months – June 2012
(Audited)
Revenue 2 618 342 1 640 114 307 515
Revenue after intersegment
elimination reallocated 2 588 607 1 623 335 16 319
Depreciation and
amortisation (31 668) (19 388) (13 382)
Operating profit/(loss) 159 510 42 975 (1 634)
Net finance (expense)/income (39 241) (18 761) (2 211)
Results of associates 2 483 3 226 –
Tax expense (35 480) (7 853) 2 302
Net profit/(loss) after tax 87 272 19 587 (1 543)
Assets 1 890 471 765 725 403 769
Liabilities 1 305 119 487 936 421 605
Capital expenditure ** 71 823 3 191 15 897
Head Office
and
consolidation* Total
R'000 R'000
Revenue (337 710) 4 228 261
Revenue after intersegment
elimination reallocated – 4 228 261
Depreciation and amortisation (1 509) (65 947)
Operating profit/(loss) (37 679) 163 172
Net finance (expense)/income 8 247 (51 966)
Results of associates – 5 709
Tax expense 8 447 (32 584)
Net profit/(loss) after tax (20 985) 84 331
Assets (388 580) 2 671 385
Liabilities (815 516) 1 399 144
Capital expenditure ** – 90 911
* Head office and consolidation predominantly include elimination
of intergroup sales, profits and losses and intergroup
receivables and payables and other unallocated assets and
liabilities contained with the vertically integrated Group.
** Includes expenditure on intangibles.
COMMENTARY
INTRODUCTION
DAWN manufactures and distributes quality branded hardware,
sanitaryware, plumbing, kitchen, engineering and civil products
through a national, strategically positioned branch network in
South Africa, as well as in selected countries in the rest of
Africa and Mauritius.
The Group has two main operating segments, namely Building and
Infrastructure, both being supported by the Solutions segment.
The Building segment has three clusters –Trading, Watertech and
Sanitaryware and three associates – Apex Valves, Heunis Steel and
Saffer Union in Nigeria. Apex Valves was converted to a
subsidiary after the reporting date and will be incorporated as a
subsidiary in the Trading cluster. The Infrastructure segment
consists of two businesses, DPI and Incledon, and two associates
– Sangio Pipe and Angolan-based Fibrex. The DAWN Solutions
segment comprises DAWN Logistics (DAWN Cargo and DAWN
Distribution Centres), DAWN HR Solutions, DAWN IT, DAWN Marketing
& Design, DAWN Merchandising, DAWN Packaging, DAWN Projects and
DAWN Financial Solutions.
RESULTS OVERVIEW
The Board is pleased with the improvement in results during the
period, with an 89% increase in headline earnings per share
increasing to 38,1 cents per share (H1 F2012: 20,2 cents per
share). The headline earnings per share for the six months,
although still below the peaks reached in F2008, is equal to the
headline earnings per share for the full 2012 financial year. The
improvement was achieved due to the Group’s strong statement of
financial position, combined with the impact of strong turnover
and improved margins on DAWN’s new, much lower cost base which
commenced in F2011 and was cemented in F2012.
Profit before interest and taxation from the Building segment
increased by a pleasing 36%, largely attributable to the
turnaround in the Sanitaryware cluster. The Infrastructure
segment’s profit before interest and taxation improved by 67% to
the best levels seen in the last three years, due to the effect
of sustained, consistent higher operating volumes, resulting in
improved throughput.
Building segment – 58% of Group revenue (before inter-group
eliminations)
In the first half of F2013 total buildings completed in South
Africa rose 7%, compared to a decline of 4% in H1 F2012. The
Group especially benefited from the 11% growth in residential
buildings completed and a 21% increase in non-residential
buildings completed.
Against these conditions, the Group’s management teams managed to
post a 6% increase in revenue and a 36% improvement in profit
before taxation from R91 million to R124 million.
The Trading cluster, the largest contributor to revenue in the
Building segment, experienced a continuation of subdued market
conditions in the period. Sales increased in all regions except
in Gauteng and KwaZulu-Natal. Although margins were under
pressure, the cluster was able to increase prices by 3%. This
resulted in a lower than expected 1% improvement in profit before
interest and taxation.
The Watertech cluster (Cobra and Isca), the largest contributor
to profit before interest and taxation in the Building segment,
achieved a good result in a tight market. It increased profit
before interest and taxation by 13% over the comparative period.
More stable volumes at Cobra assisted in improved factory
recoveries, which resulted in productivity gains, a margin
improvement and a 27% increase in profit before interest and
taxation. The weaker rand assisted exports. Isca experienced the
same difficult conditions to those of the second half of F2012.
The meaningful volume increase was eroded by the impact of the
weaker exchange rate on the cost of inventory, leading to a
sizeable decline in gross margins and a 21% decline in profit
before interest and taxation.
The Sanitaryware cluster showed a significant improvement. At
Ceramics (Vaal) the performance continued to improve following
the cost reductions and quality improvements implemented in the
second half of F2012. Vaal’s sales volumes and prices increased
significantly over those achieved in the prior comparative
period. Vaal also achieved an 11% reduction in overall cost per
piece, mainly from a sizeable reduction in power costs, as well
as a reduction in labour. The benefits, which were already felt
in the second half of F2012, have created a new, lower cost base
and a sustainable profit trend.
The Acrylic business (Libra and Plexicor) was a loss-maker for
the last three years. The entire Acrylic business was reassessed
in F2012 and factories relocated to a single location for acrylic
manufacture, at Meyerton. This was fully commissioned by mid-
January 2013. In addition, the third largest acrylic producer in
the market stopped production in the second half of F2012,
leaving only two main producers in this market. The Acrylic
business immediately benefited from the higher volume throughput.
Whilst average selling prices per piece improved marginally, both
production and sales volumes increased by around 40% each,
resulting in strongly improved factory recoveries and cost
reductions. The factory consolidation, combined with the benefits
of the market consolidation, resulted in a turnaround from the
loss of R12,2 million in the first half of F2012 to a small
profit in the period. The Group believes this is only the
beginning of the recovery in the Acrylic business.
Infrastructure segment – 35% of Group revenue (before inter-group
eliminations)
The Infrastructure segment improved its results for the fifth
consecutive reporting period due to government expenditure on
water and sanitation. Continued market consolidation in the
plastic pipe sector further supported higher volume throughput.
None of the businesses in this segment experienced internal
labour issues during the period under review, although they were
impacted by some of the run-on effects of both the transport and
the mining strikes.
However, higher production volumes, lower costs and improved
scrap rates through the significant corrective actions and
restructuring undertaken over the last two years resulted in
lower breakeven points for both businesses in the Infrastructure
segment.
Due to these actions, the Infrastructure segment reported a 15%
increase in revenue and a pleasing 67% increase in profit before
interest and taxation to R28 million compared to the first half
of F2012. DPI grew profit before interest and taxation by 85%
compared to the first half of F2012. Market share gains were
achieved in the higher-margin fittings business, with room for
further improvement. The order book is robust over a broad front.
Some key supply contracts in the mining sector are providing
loading consistency on the capacity that was added in Q2 F2013
and further contracts are being won.
Incledon reported a 54% growth in profit before interest and
taxation. The business enjoyed the benefits of further increases
in infrastructure tenders and awards. Growth in both civils
activity and mining sector off-take has been strong with
municipal demand contributing 35% to Incledon’s revenue during
the reporting period.
The desired manufacturing recoveries and efficiency improvements
continued to be achieved in the Infrastructure segment in H1
F2013. The segment’s operating margin of 3,1% is still at the
lower end of the Group’s short-term target of 3-5%. Management
will continue to focus on improving margins within its short-term
range.
DAWN Solutions – 7% of Group revenue (before inter-group
eliminations)
DAWN Solutions’ profit before interest and taxation increased
from a breakeven in the first half of F2012 to R9,1 million in
the period under review. The largest business in this segment,
DAWN Logistics, grew revenue by 16% to R138 million, mainly on
the back of strong organic growth in services to Sanitaryware and
DPI. Costs were well contained. Even though the Group serviced
more routes and brought previously outsourced distribution in-
house, costs only increased by 8%. This was mainly due to ongoing
energy savings, a reduction in fuel expenses, lower repairs and
maintenance expenses and lower distribution costs as the Group
continued to move away from third party distributors to in-house
servicing.
These actions resulted in a turnaround from a R6 million loss in
DAWN Logistics in the first half of F2012 to a profit of R2,7
million in the period under review.
Profit before interest and taxation in DAWN Financial Solutions,
DAWN HR, DAWN Marketing & Design, DAWN IT, DAWN Merchandising,
DAWN Packaging and DAWN Projects increased by 5% after having
doubled in F2012. Growth was due to new business won from outside
the DAWN Group and the servicing of additional businesses inside
the DAWN Group. The process of aggressively eliminating the use
of non-Group service providers continues, which is increasing
DAWN’s capacity utilisation and economies of scale.
DAWN International
DAWN International’s contribution is included in the Building and
Infrastructure segments’ results. To provide additional
disclosure, the revenue of this entity is discussed separately.
DAWN’s expanded geographic footprint into Africa and the Indian
Ocean islands started seven years ago. The Group is pleased with
the strong progress achieved. Revenue from international
activities increased from less than R150 million in F2005 to R689
million during the reporting period.
Exports from South Africa grew by 38% as a result of a concerted
initiative to expand the Group companies’ export footprint. This
initiative was assisted by the weaker rand during the period. The
DPI factories in the rest of Africa performed well, with Namibia
achieving a particularly strong performance. The AST group posted
strong growth as these trading businesses continue to reinforce
their presence in their respective markets.
With the establishment of a greater foothold in these African
markets, the DAWN Group is fast becoming a solutions provider and
distribution channel into the rest of Africa.
The Group’s geographic footprint is being further expanded, with
current initiatives including the establishment of a DPI factory
in Zambia (together with Incledon International) to service the
mining and related industries, the opening of a second AST
trading operation in the north of Mozambique and the opening of
two further AST operations – one in the Democratic Republic of
the Congo and one in Tanzania.
FINANCIAL RESULTS
Group revenue increased by 10% to R2,3 billion (H1 F2012: R2,1
billion), supported by a 5% improvement in volumes and a 5%
inflation in the Group’s selling prices. Operating profit
increased by 61% to R138,0 million (H1 F2012: R85,6 million).
Operating expenses increased by 9% period-on-period.
The Group’s operating margin increased from 4,1% to 6,0%, with
the Building segment’s operating margin increasing to 8,6%, the
Infrastructure segment improving its performance with a 3,1%
operating margin and the Solutions segment achieving a profit
with an operating margin of 5%.
Net interest-bearing debt of R179 million as at 31 December 2012
was at its lowest level since 2004. The Group’s gearing ratio was
13,0%, reflecting a very healthy financial position.
Income derived from associates improved significantly to a profit
of R10,6 million, driven by a very strong performance from Sangio
Pipe through its infrastructure-related activities and Apex
Valves through its strategic supply into the water-heating
industry. Both these companies managed to grow market share
during the period under review. Heunis Steel, a company exposed
mainly to the Building segment, performed well and improved
earnings in a tough market. Fibrex, the Angolan-based pipe
manufacturing company, had a slight drop-off in profitability but
continued to perform well.
Earnings per share improved by 88% to 38,0 cents per share (H1
F2012: 20,2 cents per share). Headline earnings per share of 38,1
cents per share showed an increase of 89% from 20,2 cents per
share reported for the prior comparative period.
The Group reported a very sound net working capital position at
the end of the reporting period. Net working capital at 77 days
is well within the working capital target of 80 days and well
down on the comparative half. Debtors’ management remains a key
discipline of the Group and at 42 days it is well within the
Group’s objective of less than 55 days. Bad debts remained below
0,1% of revenue.
The quality of the Group’s inventory continued to improve. In the
period a strategic decision was made to increase inventory in
Cobra and Isca to service improved demand. In the process the
Group’s inventory levels increased temporarily to 94 days. Having
the appropriate stock mix for the still erratic demand will
assist in bringing the stock days down to below 90 days by June
2013. Funding obtained from the Group’s creditors amounted to 59
days, slightly below the stated target range, with the normalised
range for creditors days continuing to be 60 to 65 days.
The strong focus on cash flow management resulted in a 46%
improvement in the cash generated from operations during the
period of R183 million. The Group utilised R67 million of this
cash to invest in net working capital. Investing and financing
activities totalling R79 million consisted of capital debt
servicing of R32 million and net capital expenditure of R47
million. The main capital expenditure investments were for fleet
renewal and new Enterprise Resource Planning systems amounting to
R23 million, with the balance of R24 million being used for
maintenance capital expenditure. The Group therefore ended the
period with a R56 million positive balance, compared to the R40
million negative balance in the prior comparative period.
Basis of preparation The Board acknowledges its responsibility
for the preparation of the condensed consolidated interim
financial statements for the period ended 31 December 2012 in
accordance with the recognition and measurement criteria of
International Financial Reporting Standards (IFRS), the
presentation and disclosure requirements of IAS 34 Interim
Financial Reporting, the AC 500 Standards as issued by the
Accounting Practices Board or its successor, the Listings
Requirements of the JSE Limited and the requirements of the South
African Companies Act on a basis consistent with the prior
period. The condensed consolidated interim financial statements
have been prepared by Mr JAI Ferreira, Financial Director, and
were approved by the Board on 13 March 2013.
The accounting policies are consistent with those applied in the
annual financial statements for the year ended 30 June 2012.
PROSPECTS
Looking at the Group by segment:
– The new, substantially lower cost base in the Building segment
should ensure that any improvement in the top line is magnified
at profit before interest and taxation level. The Group expects
to achieve some volume and price increases in the second half of
F2013 due to the improved outlook for building plans passed.
However, the Group anticipates merchants to not start re-stocking
soon. The Group’s targeted operating margins in the Building
segment therefore remain the same at 7-9% in the short term.
– The recovery seen in the Infrastructure segment this year looks
set to continue. However, the rate of growth at DPI and Incledon
will start normalising as the recovery scenario turns into a more
sustainable growth path. The Group’s short-term margin target
remains unchanged at 3-5% for this segment.
– Although DAWN Solutions is expected to continue growing, due to
seasonality, this segment’s second half volume throughput is
always lower, which will lead to a lower margin.
– Finally, DAWN International is gaining momentum, having now
established an entrenched foothold in Africa and the Indian Ocean
islands.
The strong statement of financial position reflects that the
Group now has an increased debt capacity which management intends
utilising to resume growing the business.
Whilst the outlook for the Group is robust, there are a number of
risks that exist, with the most pertinent being a very
financially stretched consumer and delays in the implementation
of spending at provincial and central government levels. The
effects of an overall weaker rand should have a net positive
effect on DAWN, as less than 10% of revenue is imported. However,
management wishes to point out that historically the second half
earnings of the Group is lower than the first half earnings due
to the cyclical nature of the industries in which the Group
operates.
DAWN is now in a strong strategic position in the markets it
serves and the Group expects the second half results to show a
sound improvement over the second half of last year, with an
encouraging outlook over the medium to longer term.
This general forecast has not been reviewed nor audited by the
Company’s auditors.
EVENTS AFTER THE REPORTING PERIOD
The Group acquired a majority interest in Apex Valves, a company
in which the Group held a 49% equity interest. DAWN now holds
60,5% in this business.
Management is not aware of any other material events that
occurred subsequent to the end of the reporting period. There has
been no material change in the Group’s contingent liabilities
since the period-end.
DIVIDEND
Given the low level of gearing and improved profitability of the
Group, it is the Board’s intention to consider the resumption of
dividend payments from the end of F2013. The policy remains to
pay a dividend once per annum at year-end.
On behalf of the Board
RL Hiemstra DA Tod Johannesburg
Chairman Chief Executive Officer 14 March 2013
DISTRIBUTION AND WAREHOUSING NETWORK LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1984/008265/06)
(“DAWN” or “the Group” or “the Company”)
Alpha code: DAW
ISIN: ZAE000018834
E-mail: info@dawnltd.co.za
Telephone: (011) 323 0450
Registered office: Cnr Barlow Road and Caveleros Drive, Jupiter
Ext 3, Germiston, 1401
Directors: RL Hiemstra^ (Chairman), DA Tod (Chief Executive
Officer), LM Alberts^, M Akoojee^, OS Arbee*, JA Beukes,
JAI Ferreira, VJ Mokoena^, S Mthembi-Mahanyele^, RD Roos
* Non-executive ^ Independent non-executive
Company secretary: iThemba Governance and Statutory Solutions
(Pty) Ltd
Transfer secretaries: Computershare Investor Services Proprietary
Limited, 70 Marshall Street, Marshalltown, 2001 (PO Box 61051,
Marshalltown, 2107)
Sponsor: Deloitte & Touche Sponsor Services (Pty) Ltd
www.dawnltd.co.za
Date: 14/03/2013 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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