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Reviewed Condensed Consolidated Results for the year ended 30 June 2013 and Dividend Announcement
Transpaco Limited
Reg. No. 1951/000799/06
ISIN: ZAE000007480
Share Code: TPC
Reviewed Condensed Consolidated Results for the year ended 30 June 2013 and Dividend Announcement
Group turnover up 7%
Net asset value up 12%
Final dividend per share 53,5 cents
Introduction
Transpaco maintained its consistent performance with good turnover growth and a slight increase in
headline earnings per share despite challenging trading conditions.
Turnover of R1,12 billion was attributable to a combination of volume growth and price increases. Aggressive
marketing and sales strategies remain a prime imperative to maintain this momentum, especially given the
difficult economic climate.
Transpaco’s performance was further strengthened by controlled operating costs, enhanced production and
manufacturing efficiencies, and well-managed working capital which was supported by minimal net interest
paid of R1,0 million (June 2012: R1,2 million).
Notwithstanding the group’s positive growth, margins remain under pressure from increased competition and
higher input costs – notably energy and plastic raw materials. Further, the transport and mining strikes during
the year adversely affected certain Transpaco markets.
Financial Results
Turnover increased to R1,12 billion, up 6,7% (June 2012: R1,05 billion). The increase occurred in both the
Plastic and Paper and Board divisions, enabling the group to maintain market share.
Operating profit increased in the Paper and Board divisions, with a decline in the Plastic division resulting in
group operating profit of R93,1 million (June 2012: R95,7 million).
Transpaco’s total comprehensive income grew 0,5% to R66,9 million (June 2012: R66,6 million).
Headline earnings increased 2,0% to R66,7 million (2012: R65,3 million), translating into a 1,3% rise in
headline earnings per share (HEPS).
The weighted average number of shares in issue in calculating HEPS and EPS is 32 012 000 compared to
31 782 000 in the previous year.
Diluted HEPS increased 1,3% to 203,7 cents (June 2012: 201,1 cents).
Cash generated from operations amounted to R100,1 million (June 2012: R101,9 million). Cash and cash
equivalents at the end of the year were R83,7 million (June 2012: R70,6 Million), which reflected an increase
of 18,6%.
Transpaco’s net interest-bearing debt-to-equity position remains cash positive.
Interest cover improved to 90,5 times (June 2012: 67,6 times).
Net asset value per share increased by 12,4% to 1 127cents (June 2012: 1 002 cents).
Prospects
The economic landscape continues to present challenges, with tough trading conditions. Management will
remain focused on sound business and financial fundamentals in an effort to achieve Transpaco’s organic
growth ambitions.
Expansion opportunities including acquisitions continue to be pursued.
Transformation
We are pleased to report that our fourth independent accreditation process in respect of B-BBEE during the
year reflected an improvement in our level of contribution. Transpaco is now a Level 4 value added
contributor. We are proud that our customers can count 125% of their purchases from Transpaco as
preferential procurement.
Dividend
The board has declared a final gross cash dividend out of income reserves of 53,5 cents per share. This
resulted in total dividends of 90,0 cents per share for the year (June 2012: 80,0 cents per share), an increase
of 12,5%.
After applying the dividend withholding tax of 15% a net final dividend of 45,47500 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 Friday, 13 September 2013
Shares trade ex-dividend Monday, 16 September 2013
Record date Friday, 20 September 2013
Payment date Monday, 23 September 2013
Share certificates may not be dematerialised or rematerialised between Monday, 16 September 2013 and
Friday, 20 September 2013, both days inclusive.
Basis of Preparation and Accounting Policies
The reviewed condensed consolidated annual 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 Accounting Standards Board (IASB), the presentation and
disclosure requirements set out in IAS 34 – Interim Financial Reporting, the AC 500 standards as issued by
the Accounting Practices Board or its successor, and comply with the Listings Requirements of JSE Limited
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
group’s annual financial statements for the year ended 30 June 2012.
Review of Independent Auditors
The group’s auditors Ernst & Young Inc. have reviewed the condensed consolidated financial information for
the year. Their review report is available for inspection at Transpaco’s registered office. The review was
performed in accordance with ISRE 2410: Review of Interim Financial Information Performed by the
Independent Auditor of the Entity.
Approval and Preparation
These condensed consolidated 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
**independent
Date 21 August 2013
Auditors Ernst & Young Inc.
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
Reviewed Audited
12 months % 12 months
R'000 June 2013 Change June 2012
CONTINUING OPERATIONS
Revenue 1 125 260 1 047 021
Turnover 1 123 204 7,6 1 044 221
Cost of sales (715 749) (660 088)
Profit before operating costs and depreciation 407 455 6,1 384 133
Operating costs (282 697) (256 077)
Depreciation (31 618) (27 486)
Operating profit 93 140 (7,4) 100 570
Finance income 2 056 2 800
Finance costs (3 085) (4 032)
Profit before taxation 92 111 (7,3) 99 338
Taxation (25 246) (29 019)
Profit for the year from continuing operations 66 865 (4,9) 70 319
Loss for the year from discontinued operations – (3 756)
Profit for the year 66 865 66 563
Other comprehensive income – –
Total comprehensive income 66 865 0,5 66 563
Weighted average number of shares in issue (‘000) 32 012 31 782
Diluted weighted average number of shares in issue (‘000) 32 719 32 485
Continuing operations
Earnings per share (cents) 208,9 (5,6) 221,3
Diluted earnings per share (cents) 204,4 (5,6) 216,5
Headline earnings per share (cents) 208,2 (4,8) 218,7
Diluted headline earnings per share (cents) 203,7 (4,8) 214,0
Continuing and discontinued operations
Earnings per share (cents) 208,9 (0,2) 209,4
Diluted earnings per share (cents) 204,4 (0,2) 204,9
Headline earnings per share (cents) 208,2 1,3 205,6
Diluted headline earnings per share (cents) 203,7 1,3 201,1
Dividend per share (cents)* 85,5 6,9 80,0
Reconciliation of headline earnings (R’000)
Continuing operations
Basic earnings 66 865 70 319
Profit on disposal of property, plant and equipment (208) (797)
Headline earnings 66 657 (4,1) 69 522
Continuing and discontinued operations
Basic earnings 66 865 66 563
Profit on disposal of property, plant and equipment (208) (1 230)
Headline earnings 66 657 2,0 65 333
*Includes interim dividend of 36,5 cents (June 2012: 31 cents) and a dividend declared after the period of 53,5
cents (June 2012: 49 cents).
STATEMENT OF CASH FLOWS
Reviewed Audited
12 months 12 months
R'000 June 2013 June 2012
Cash flow from operating activities
Cash generated from operations 100 067 101 893
Dividends paid (27 521) (23 452)
Finance costs from continuing operations (3 085) (4 032)
Finance costs from discontinued operations – (452)
Finance income from continuing operations 2 056 2 800
Finance income from discontinued operations – 271
Taxation paid (23 768) (26 784)
Net cash inflow from operating activities 47 749 50 244
Cash flow from investing activities
Proceeds on disposal of property, plant and equipment 436 13 341
Expansion and replacement of property, plant and equipment (40 007) (67 007)
Decrease in unlisted investments – 17
Decrease/(increase) in long-term receivables 2 309 (2 951)
Increase in short-term receivables (198) (2 110)
Net cash outflow from investing activities (37 460) (58 710)
Cash flow from financing activities
Movement in treasury shares 148 1 698
Increase/(decrease) in interest-bearing borrowings 7 644 (926)
Decrease in current portion of interest-bearing borrowings (4 947) (2 247)
Net cash inflow/(outflow) from financing activities 2 845 (1 475)
Net movement in cash for the year 13 134 (9 941)
Cash and cash equivalents at the beginning of the year 70 552 80 493
Cash and cash equivalents at the end of the year 83 686 70 552
STATEMENT OF FINANCIAL POSITION
Reviewed Audited
12 months 12 months
R'000 June 2013 June 2012
ASSETS
Non-current assets 202 602 195 482
Property, plant and equipment 193 901 185 659
Intangibles 482 482
Goodwill 3 204 3 204
Long-term receivables 642 2 951
Deferred taxation 4 373 3 186
Current assets 393 393 368 685
Inventories 120 416 123 521
Trade and other receivables 185 579 169 942
Short-term receivables 2 308 2 110
Taxation receivable 1 404 2 560
Cash and cash equivalents 83 686 70 552
Non-current asset classified as held-for-sale 885 885
TOTAL ASSETS 596 880 565 052
EQUITY AND LIABILITIES
Capital and reserves 360 935 320 523
Issued share capital 320 320
Share premium 11 019 11 019
Other reserves 3 358 2 438
Distributable reserve 346 238 306 746
Non-current liabilities 53 491 46 694
Interest-bearing borrowings 32 612 24 968
Deferred taxation 20 879 21 726
Current liabilities 182 454 197 835
Trade payables and accruals 148 898 162 951
Provisions 17 449 16 186
Current portion of interest-bearing borrowings 13 244 18 191
Taxation payable 2 863 507
TOTAL EQUITY AND LIABILITIES 596 880 565 052
Number of shares in issue (‘000)
Number of shares (net of treasury shares) 31 991 31 691
Net movement in treasury shares 26 300
Ranking number of shares 32 017 31 991
Salient features
Net asset value per share (cents) 1 127 1 002
Operating margin % 8,3% 9,1%
Net cash Net cash
Net interest-bearing debt:equity ratio % positive positive
Net interest cover (x) 90,5 67,7
SEGMENTAL ANALYSIS
Paper Properties
and and Total
Plastic board group continuing Discontinued Total
R'000 products products services operations operations group
Turnover – 2013 689 172 434 032 – 1 123 204 – 1 123 204
Turnover to customers 738 518 450 872 – 1 189 390 – 1 189 390
Less turnover to internal 49 346 16 840 – 66 186 – 66 186
customers
Turnover – 2012 644 389 399 832 – 1 044 221 9 976 1 054 197
Turnover to customers 685 076 417 509 – 1 102 585 11 320 1 113 905
Less turnover to internal 40 687 17 677 – 58 364 1 344 59 708
customers
Operating profit – 2013 36 028 53 360 3 752 93 140 – 93 140
Operating profit /(loss)– 2012 54 981 44 227 1 362 100 570 (4 858) 95 712
Profit before tax– 2013 34 557 52 943 4 611 92 111 – 92 111
Profit/(loss) before tax– 2012 52 737 44 674 1 927 99 338 (5 039) 94 299
Capital expenditure – 2013 15 861 22 838 1 308 40 007 – 40 007
Capital expenditure – 2012 57 255 9 374 378 67 007 – 67 007
Assets – 2013 334 186 165 794 96 900 596 880 – 596 880
Assets – 2012 336 742 141 248 87 062 565 052 – 565 052
Liabilities – 2013 133 908 76 209 25 828 235 945 – 235 945
Liabilities – 2012 153 049 72 051 19 429 244 529 – 244 529
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Other Distributable
R'000 Capital Premium Reserves Reserve Total
Balance at 30 June 2011 317 11 019 1 204 261 940 274 480
Profit for the year – – – 66 563 66 653
Other comprehensive income – – – – –
Total comprehensive income – – – 66 563 66 653
Share-based payments – – 1 234 – 1 234
Dividend paid – – – (23 452) (23 452)
Movement in treasury shares 3 – – 1 695 1 698
Balance at 30 June 2012 320 11 019 2 438 306 746 320 523
Profit for the year – – – 66 865 66 865
Other comprehensive income – – – – –
Total comprehensive income – – – 66 865 66 865
Share-based payments – – 920 – 920
Dividend paid – – – (27 521) (27 521)
Movement in treasury shares – – – 148 148
Balance at 30 June 2013 320 11 019 3 358 346 238 360 935
DISCONTINUED OPERATIONS
Reviewed Audited
12 months 12 months
R'000 June 2013 June 2012
Turnover – 9 976
Expenses – (14 834)
Operating loss – (4 858)
Finance income – 271
Finance costs – (452)
Loss before tax from discontinued operations – (5 039)
Taxation – 1 283
Loss after tax from discontinued operations – (3 756)
Loss per share (cents) from discontinued operations – (11,9)
Diluted loss per share (cents) from discontinued operations – (11,6)
Headline loss per share (cents) from discontinued operations – (13,1)
Diluted headline loss per share (cents) from discontinued operations – (12,9)
Cash flows from discontinued operations
Net cash flows from operating activities – (7 193)
Net cash flows from investing activities – 5 305
Net cash flows from financing activities – –
Net cash flows – (1 888)
CAPITAL COMMITMENTS
Reviewed Audited
12 months 12 months
R'000 June 2013 June 2012
Capital expenditure authorised and contracted
Property, plant and equipment 9 347 12 821
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