Wrap Text
interim results and dividend declaration
MARSHALL MONTEAGLE PLC
(Incorporated in Jersey Registration No. 102785)
(SA Registration No: 2010/024031/10)
JSE CODE: MMP ISIN: JE00B5N88T08
UNAUDITED INTERIMS FOR 6 MONTH PERIOD ENDED 31 MARCH 2013 AND DIVIDEND DECLARATION
Dear Shareholder,
The Directors report results for the six months to 31st March 2013.
Results
- Group revenue increased by 9% to US$109,975,000 for the six month period
compared with the same period last year. In constant currency terms sales
increased to US$122,056,000 (20%).
- Operating profit decreased by 3% to US$3,627,000, but in constant currency
terms increased by 7% to US$4,004,000.
- Headline earnings of 4.5 cents compared to 8.0 cents in the same period last
year, as exceptional profits were realised last year from the South African
equity portfolio.
- An interim dividend of 1.7 cents is to be paid in July (2012 – 1.6 cents).
- Net assets per share US$1.80 (2012 - US$1.87). Net assets per share have
declined marginally from the 30th September 2012 figure of US$1.81 per share;
unfavourable exchange rate movements being mitigated by substantial increases
in value of the investment portfolios and operating profits.
Import and Distribution
Our import and distribution business in food and household consumer products
achieved a similar level of trade to the first six months of last year. The
economic environment remains challenging with volatile raw material pricing,
inconsistent availability of certain product lines and significant currency
movements. This division provides procurement, supply chain and risk management
services to multiple retailers, wholesalers and manufacturers in Southern and
Central Africa, Indian Ocean Islands and Australia. The business remains
committed to working with suppliers of quality raw materials, skilled
technologists and top quality production facilities. Partnerships with key
producers are paramount to the success of the business and this division continues
to further develop its international network. Management remain committed to
making improvements to the supply-chain for the benefit of their customers. They
also continue to look at opportunities in new markets such as India and the Middle
East.
Our coffee business performed well during the six months with turnover and profits
both up on the comparative period, but management are expecting the second half of
the year to be significantly more challenging. The business markets its products
to multiple retailers and the hospitality sector in South Africa.
Our tool and machinery import and distribution businesses had another tough start
to the year with pressure on margins and an environment that remains fiercely
competitive. Despite the challenging conditions, the business’s ductile iron
water pipe division has secured some meaningful contracts and management are
cautiously optimistic that profits for this business for the year will be up on
2012.
Property Portfolio
Rental income from our large multi-tenanted industrial property in San Diego
increased slightly during the period. The commercial and industrial property
market in Southern California remains challenging, but demand for industrial space
has definitely increased and the property still enjoys a low vacancy rate.
The Group’s South African commercial and light industrial property portfolio had a
satisfactory six months despite tough trading conditions experienced by the
majority of its tenants.
Investment Portfolio
Quantitative easing programs by central banks of the developed world played a big
role in the strength of global equities during the period and the Group’s
portfolio of quality equities appreciated substantially. We are more cautious
about the remainder of the financial year, but intend to add to many of our
holdings when buying opportunities arise.
Halogen Holdings P.L.C. (unlisted associate)
In May 2013 Heartstone Inns merged with the tax efficient pub vehicle with which
it has historically enjoyed a management relationship. The combined entity is now
comprised of nine quality pubs and management have plans to raise further capital
to acquire additional units.
Net Assets
Assets outside Africa, net of non-controlling interests and proposed dividends,
stand at US$31,465,000, equal to US$0.88 per share (30th September 2012: US$0.75);
the balance of US$32,538,000, equal to US$0.91 per share, is held in South
Africa. Our total net assets, allowing for proposed dividend, amount to US$1.80
per share which compares to US$1.81 per share at 30th September 2012.
Interim dividend
We are pleased to announce that the Company is to pay an interim dividend of US
1.7 cents per share. The dividend is payable on 12th July 2013 to shareholders on
the register at the close of business on 28 June 2013.
Group Staff
Once again we would like to thank all our employees for their hard work and we
appreciate their efforts and the contribution that they have made during the
period.
Prospects
The Board find these results satisfactory in light of the challenging trading
conditions and global economic uncertainty. Our conservative policies and
diversity within the group give us confidence that we can continue to enhance
shareholder value in the long term.
E.J. Beale D.C. Marshall
Chairman Chief Executive
Details of interim dividend
Shareholders on the South African register will receive their dividend in South
African Rand converted from US dollars at the closing rate of exchange on 7 th June
2013. In order to comply with the requirements of Strate the relevant details are
as follows
In respect of the normal gross cash dividend, and in terms of the new South
African Tax Act, the following dividend tax ruling only applies to those
shareholders who are registered on the South African register, all other
shareholders are exempt
- the dividend has been declared from income reserves
- the dividend withholding tax rate is 15% resulting in a net dividend of US1.445
cents (14.38035 South African cents) per share to those shareholders who are
not exempt from the dividend withholding tax.
The issued number of shares at the declaration date is 35,857,512. The Company’s
Jersey tax number is CH4513.
Salient dates for dividend
Last day to trade Friday 21st June 2013
Shares trade ex dividend Monday 24th June 2013
Record date (date shareholders recorded in Friday 28th June 2013
books)
Pay date Friday 12th July 2013
Shareholders are hereby advised that the exchange rate to be used will be USD 1 =
ZAR 9.9518. This has been calculated as the average of the bid/ask spread at
16.00 (United Kingdom time) being the close of business on 7 th June 2013.
Consequently the dividend of US 1.7 cents will be equal to 16.91806 South African
cents.
No dematerialisation or rematerialisation of share certificates, nor transfer of
shares between the registers in Jersey and South Africa will take place between
Monday 24 June and Friday 28 June 2013, both dates inclusive.
Consolidated Statement of Total Comprehensive Income
Half years ended Year ended
31st March 30th
September
2013 2012 2012
Notes Unaudit Unaudit Audited
ed ed
US$000 US$000 US$000
Group revenue 2 109,975 101,297 210,183
Operating costs (106,348) (97,560) 201,533)
Operating profit 3,627 3,737 8,650
Share of associated company’s results (92) (138) (196)
Income from investments - dividends 221 172 518
- interest 60 338 835
Interest paid (898) (1,025) (2,533)
Exchange gains/(losses) 115 78 (276)
Other income 3 40 1,040 2,265
Profit before taxation 2 3,073 4,202 9,263
Taxation (814) (1,642) (2,671)
Profit after taxation 2,259 2,560 6,592
Profit attributable to owners of the 1,535 1,859 5,055
parent
Profit attributable to non-controlling 724 701 1,537
interests
Exchange differences on translation into (3,967) 3,067 (1,363)
US dollars of the financial statements
of foreign entities
Commercial property revaluations - - 394
Unrealised gain on revaluation of 2,004 2,252 2,502
available for sale investments
Reclassification of previously
recognised profits on disposal of
available for sale investments (86) (731) (721)
Total Comprehensive Income 210 7,148 7,404
Total Comprehensive Income attributable
to owners of the parent 369 6,445 5,908
Total Comprehensive Income attributable
to non- controlling interests (159) 703 1,496
Interim dividend per share (US cents) 1.7c 1.6c 1.6c
Recommended final dividend (US cents) - - 1.7c
Reconciliation between basic and
headline earnings
Basic earnings 4 1,535 1,859 5,055
Adjusted for :
Investment property revaluations - - (1,214)
Reclassification of previously
recognised losses on disposal of
available for sale investments 86 731 721
Headline earnings 4 1,621 2,590 4,562
Consolidated Statement of Changes in Equity
____________________________________________________________________________
Ordinary Non-
share Share Other Retained Total Controlling Group
capital Premium reserves earnings shareholders Interests total
ders s
US$000 US$000 US$000 US$000 US$000 US$000 US$000
st
Half year ended 31 March 2012
Balances at start of period 8,964 23,606 2,393 26,422 61,385 10,285 71,670
Transactions with shareholders
Dividends paid - - - (574) (574) (384) (958)
Total comprehensive income - - 4,360 2,085 6,445 703 7,148
Balances at end of period 8,964 23,606 6,753 27,933 67,256 10,604 77,860
Half year ended 31st March 2013
Balances at start of period 8,964 23,606 3,425 28,859 64,854 10,858 75,712
Transactions with shareholders
Dividends paid - - - (610) (610) (327) (937)
Total comprehensive (expense)/income - - (1,166) 1,535 369 (159) 210
Balances at end of period 8,964 23,606 2,259 29,784 64,613 10,372 74,985
Consolidated Statement of Financial Position
31st March 30th
September
2013 2012 2012
Unaudited Unaudited Audited
US$000 US$000 US$000
Non-current assets
Investment property 27,896 30,642 29,925
Property, plant and equipment 8,988 9,501 9,926
Goodwill 257 553 286
Deferred taxation 612 - 920
Investments
Associate 1,587 1,738 1,679
Joint venture 156 - 173
General portfolio – (note 5) 16,759 14,208 14,653
56,255 56,642 57,562
Current assets
Inventories 25,538 27,970 28,249
Accounts receivable 39,146 43,069 40,838
Other financial assets 258 1,403 121
Tax recoverable 665 551 484
Cash 19,930 12,528 15,859
85,537 85,521 85,551
Current liabilities
Accounts payable (47,384) (46,539) (47,519)
Other financial liabilities - - (85)
Tax payable (447) (1,309) (225)
Net current assets 37,706 37,673 37,722
Total assets less current liabilities 93,961 94,315 95,284
Non-current liabilities
Accounts payable (13,646) (13,470) (13,811)
Deferred taxation (5,330) (2,985) (5,761)
74,985 77,860 75,712
Capital and reserves
Called up share capital 8,964 8,964 8,964
Share premium account 23,606 23,606 23,606
Other reserves 2,259 6,753 3,425
Retained earnings 29,784 27,933 28,859
Equity attributable to owners of the parent 64,613 67,256 64,854
Non-controlling interests 10,372 10,604 10,858
74,985 77,860 75,712
Net assets per share US$ (note 6) 1.80 1.87 1.81
Consolidated Statement of Cash Flow
Half years ended Year ended
31st March 30th
September
2013 2012 2012
Unaudited Unaudited Audited
US$000 US$000 US$000
Revenue 109,975 101,297 210,183
Operating costs (106,348) (97,560) (201,533)
Operating activities
Operating profit 3,627 3,737 8,650
Adjusted for:
Depreciation 444 717 887
Changes in working capital:
Decrease/(Increase) in inventories 37 (2,449) (3,026)
Increase in debtors (1,632) (11,563) (9,345)
Increase/(Decrease) in creditors 3,877 (977) 3,923
Cash generated / (absorbed) by operations 6,353 (10,535) 1,089
Interest paid (898) (1,025) (2,533)
Taxation paid (691) (924) (2,503)
Net cash inflow/(outflow) from operating 4,764 (12,484) (3,947)
activities
Investment activities
Purchase of, and improvements to, tangible non- (353) (250) (797)
current assets
Proceeds of disposal of tangible assets - - 117
Investment in associate - (365) (365)
Investment in joint venture - - (173)
Acquisition of investments (713) (60) (877)
Proceeds on disposal of investments 554 4,621 5,230
Dividends received 221 172 518
Interest received 60 338 835
Net cash (outflow)/inflow from investment (231) 4,456 4,488
activities
Cash inflow /(outflow) before financing 4,533 (8,028) 541
Financing activities
Net increase in long term debt 373 1,939 2,281
Cost of delisting subsidiary - - (14)
Dividends paid - Group shareholders (610) (574) (1,148)
Dividends paid - non-controlling interests of (327) (384) (923)
subsidiaries
Net cash (outflow)/ inflow from financing (564) 981 196
activities
Net increase / (decrease) in funds 3,969 (7,047) 737
Net funds at start of period 12,173 11,538 11,538
Effect of foreign exchange rates (143) 458 (102)
Net cash and cash equivalents at end of period 15,999 4,949 12,173
Notes to the interim statement
1. The results and the cash flow statement for the half-year ended 31st March 2013
are unaudited and comply with IAS 34 - Interim Financial Reporting. They have
been prepared on the basis of accounting policies adopted in the accounts for
the year ended 30th September 2012. They comply with International Financial
Reporting Standards and JSE listing requirements. The results for the year to
30th September 2012 are an abridged version of the Group's full accounts for
that year, which have been filed with the relevant authorities.
2. The segmental analysis of revenue and operating profit is as follows:
Half years ended 31st March Year ended 30th
2013 2012 September 2012
US$000 US$000 US$000
Revenue Result Revenue Resutlt Revenue Result
Analysed by activity:-
Import/distribution 107,658 3,317 98,910 3,308 205,641 7,913
Property 2,301 905 2,387 949 4,526 1,664
Other 16 (199) - 68 16 150
109,975 4,023 101,297 4,325 210,183 9,727
Share of associated (92) (138) (196)
company’s results
Interest paid (898) (1,025) (2,533)
3,033 3,162 6,998
Other income (note 3) 40 1,040 2,265
Profit before tax 3,073 4,202 9,263
3. The other income arises from the following.
31st March 30th
September
2013 2012 2012
US$000 US$000 US$000
Investment property revaluations - - 1,214
Profit on disposal of investments 28 1,056 1,052
Fair value adjustments on derivative 12 - 14
instruments
Re-organisation costs - (16) (15)
Other income 40 1,040 2,265
4. Basic earnings per share are based on results attributable to members and on
35,857,512 shares in issue (2012 - 35,857,512). A reconciliation of basic
and headline earnings is shown above.
5. A geographical analysis of the General Portfolio of investments is as
follows:-
United Kingdom 3,965 3,326 3,646
United States of America 4,820 3,811 4,046
Europe, excluding the U.K. 4,216 3,612 3,739
Switzerland 2,408 2,215 1,948
Japan 1,064 958 987
16,473 13,922 14,366
Unlisted – Europe and other 286 286 287
16,759 14,208 14,653
6. Net assets per share are based on equity attributable to owners of the
Company.
7. There was capital expenditure of US$353,000 during the period (2012 -
US$250,000). There was no contracted or outstanding authorised capital
expenditure at the reporting date.
10 June 2013
Johannesburg
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 10/06/2013 05:16:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
