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Audited Summarised Consolidated Results for the year ended 30 June 2013
Bowler Metcalf Limited
REG NO : 1972/005921/06 ALPHA CODE : BCF ISIN CODE : ZAE000030797
AUDITED SUMMARISED CONSOLIDATED RESULTS FOR THE YEAR ENDED 30 JUNE 2013
%
R mil 30-06-13 Change 30-06-12 R mil
STATEMENT OF FINANCIAL POSITION STATEMENT OF CHANGES IN EQUITY
Non-current Assets 212.7 225.8 Share Non-
Property , plant & equipment 181.0 195.4 Share Retained Treasury Based controlling Total
Deferred tax 6.3 5.0 Capital Earnings Shares Payments Interests Equity
Intangible assets 15.9 15.9
Loan 9.5 9.5 30 June 11 21.5 405.8 (34.1) 1.4 13.0 407.6
Comprehen-
Current Assets 301.2 287.6 sive Income - 58.2 - - 1.0 59.2
Inventories 78.9 70.8 Dividends - (29.6) - - (0.3) (29.9)
Trade and other receivables 90.3 88.0 Purchases - - (13.8) - - (13.8)
Prepayments 7.1 2.4 Sales - - 10.9 - - 10.9
Cash and cash equivalents 74.3 47.6 Other - 0.4 - (0.2) - 0.2
Other financial assets 50.0 75.2 ------------ --------------- --------------- ---------------- ----------------- ----------------
Taxation 0.6 3.6 30 June 12 21.5 434.8 (37.0) 1.2 13.7 434.2
---------------- ---------------- Comprehen-
Total Assets 513.9 + 513.4 sive Income - 54.9 - - 2.6 57.5
================ ================ Acquisition
of minority
interests - (22.6) (16.3) (38.9)
Total Equity 424.4 -2 434.2 Dividends - (30.6) - - - (30.6)
Non-current liabilities 30.4 28.4 Purchases - - - - - -
Deferred Tax 12.7 15.8 Sales - - 2.0 - - 2.0
Borrowings 17.7 12.6 Other - 0.4 - (0.2) - 0.2
-------------- ----------------- ------------------ ------------------ -------------------- -------------------
Current Liabilities 59.1 50.8 30 June 13 21.5 436.9 (35.0) 1.0 (0.0) 424.4
Trade and other payables 50.0 41.8 ======== ========= ========== ========== =========== ==========
Bank overdrafts - 4.6
Borrowings 6.8 4.1 SEGMENTAL ANALYSIS
Taxation 2.3 0.3 Plastic Filling Property Unallocated Total
---------------- -------------- Revenue
Total Equity & Liabilities 513.9 513.4 2012 294.9 350.8 0.1 - 645.8
=============== ============== - total revenue 382.7 350.8 18.2 - 751.7
- intersegment (87.8) - (18.1) - (105.9)
STATEMENT OF COMPREHENSIVE INCOME
Revenue 650.4 +1 645.8 2013 275.2 374.9 0.3 - 650.4
Other income 3.2 7.1 - total revenue 369.6 374.9 18.4 - 762.9
Operating costs (545.1) (538.1) - intersegment (94.4) - (18.1) - (112.5)
Depreciation (38.6) (35.5) ======== ========= ========= ========= =========
Impairments - (1.1)
---------------- ---------------- Attributable Profits
Profit from operations 69.9 78.2 2012 47.4 1.5 9.3 - 58.2
Net interest 8.5 2.8 2013 42.2 3.5 9.3 (0.1) 54.9
---------------- ---------------- ======== ========= ========= ========= =========
Net profit before tax 78.4 -3 81.0
Taxation (20.9) (21.8) Total Assets
---------------- ---------------- 2012 357.5 134.8 93.2 (72.1) 513.4
Total profit and comprehensive income 57.5 59.2 - total assets 320.0 134.6 42.9 15.9 513.4
Attributable to non-controlling interests (2.6) (1.0) - intersegment 37.5 0.2 50.3 (88.0) -
---------------- ----------------
Attributable to parent 54.9 -6 58.2 2013 368.5 135.7 97.0 (87.3) 513.9
================ ================ - total assets 319.9 135.2 42.9 15.9 513.9
Earnings & diluted earnings per share (c) 67.35 -6 71.72 - intersegment 48.6 0.5 54.1 (103.2) -
================ ================ ======== ========= ========= ========= =========
HEADLINE EARNINGS ` STATEMENT OF CASH FLOWS 30-06-13 30-06-12
Earnings attributable to parent 54.9 58.2
Profit on disposal of plant & equipment 0.1 (0.1) Operating Activities 60.1 67.1
loss/(profit) 0.2 (0.2) Profit before tax 78.4 81.0
tax and outside interests (0.1) 0.1 Non-cash items 36.6 35.6
Disposal of investment - (1.0) Working capital changes (4.1) 4.6
loss/(profit) - (1.0) Taxation paid (20.2) (24.2)
tax and outside interests - - Dividends paid (30.6) (29.9)
---------------- ----------------
Headline earnings 55.0 -4 57.1 Investing Activities 3.9 (146.1)
================ ================ Property plant and equipment (27.1) (63.7)
Earnings per share(c) 67.35 71.72 Loans - (9.5)
Disposal of plant and equipment (c) 0.15 (0.16) Transfer to/from income funds 31.0 (75.2)
Disposal of investment (c) - (1.24) Disposal of investment - 2.3
---------------- ----------------
Basic & diluted headline earnings (c) 67.50 -4 70.32 Financing Activities (32.7) 5.9
================ ================ Borrowings (3.5) 8.8
Borrowings - fixed interest - -
ADDITIONAL INFORMATION Acquisition - minority interest (31.2) -
Ordinary dividend/share paid (c) 37.50 +4 36.00 Treasury shares - acquisitions - (13.8)
Ordinary dividend/share proposed (c) 33.30 +6 31.40 Treasury shares - disposals 2.0 10.9
Special dividend/share proposed (c) - 4.60 ---------------- ----------------
Basic dividend cover (times) 2.03 2.30 Net Cash Flow 31.3 (73.1)
Weighted shares in issue (mil) 81.458 81.172 Opening balance 43.0 116.1
Capital expenditure (Rmil) 24.81 93.85 ---------------- ----------------
Capital commitments (Rmil) 5.15 2.00 Closing balance 74.3 43.0
================ =============
Comprising:
Cash & cash equivalents 74.3 47.6
Bank Overdrafts - (4.6)
================ =============
CEO'S COMMENTARY
Despite the challenges in the plastic operation and the Johannesburg filling operation, the
Our founder and chairman, Horst Sass, died peacefully on the 1st of June 2013 after management team is motivated and focussed to capitalise on the current market dynamics
a short and determined fight against cancer. Consequently there have been several which look positive for the company profile.
changes to the Board and Board Committees during the year. We are fortunate to
have a well balanced and hard working team of non-executive directors.
BASIS OF PREPARATION AND AUDIT REPORT
In a year of mixed performances, the two key operating segments of the Group have The condensed consolidated results have been prepared in accordance with the
returned a 0.7% growth in turnover and a 5.7% drop in profits resulting in a 4% drop Framework concepts and the measurement and recognition requirements of the
in headline earnings per share. International Financial Reporting Standards, containing information required by the IAS 34
Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the
During the review period, as approved at a shareholders meeting on 27 March 2013 Accounting Practices Committee and in the manner required by the Companies Act and the
and upon the terms and conditions contained in the notice to that meeting, Bowler JSE Limited's Listing Requirements.
Metcalf acquired the remaining 25,1% of shares in Quality Beverages 2000 (Pty) Ltd.
The recognition of this transaction has contributed to the decrease in net assets, while The accounting treatment of the acquisition of the minority interest is:
the recognition of the related restraint of trade agreement and the timing of the - the balance of the purchase price has been recognised as a liability.
transaction, as regards the minority share of current earnings, has dented earnings in - the full amount of the earn-out agreement has been recognised as a liability, at fair
the filling segment. value.
- the excess of purchase price over the carrying amount of minority interest has been
The filling operation has increased its influence on the top-line, while not yet deducted from retained earnings
contributing meaningfully to the earnings as a result of the Gauteng beverages - restraint of trade obligation has been recognised as a termination benefit, at the
strategy. The depressed activity levels of the plastic’s division is a direct reflection of present value of the amount payable, at the date at which the contractual liability arose.
the difficult trading conditions in South Africa, even though the performance of the - earnings attributable to minorities has been recognised to the date on which the
units has been satisfactory under the circumstances. The strategy of “vertical contract was concluded.
integration” followed over the past few years is assisting a process of readjustment to
a changing market in the core plastics business. Comparative figures for trade receivables and trade payables have been reduced by R21.3
mil to correct a consolidation elimination error in 2012 and only impacts the statement of
financial position. There is no impact on Group earnings. Three column reporting is not
Plastics Operations required as the position in 2011 is correct.
Good support from the filling division contained volume losses in the plastics
operation to 6,7%. The unqualified audit report of the company's auditors, Mazars, is available for inspection at
the company's registered office.
The cosmetic and toiletries industry, which forms the core of the plastics operations,
continued with a subdued performance, pressurised by a combination of low This summarised report has been prepared using the same accounting policies and
consumer spend and volume losses due to imported finished goods. methods of computation as used in the most recently issued annual financial statements,
which should be read in conjunction with this summarised report.
On the back of a weakening rand, unrecoverable material price increases have
strained earnings while downstream import replacements take longer to respond. The
11.1% earnings margin to revenue underscores our business approach to niche CHANGES TO THE BOARD
market development as opposed to the commodity business which has seen falling SJ Gillett Appointed November 2012 - Non-executive independent
margins. MA Olds Appointed November 2012 - Executive
HW Sass Deceased June 2013 - Non-executive Chairman
In the last quarter of the period under review, encouraging signs of a rebound in the BJ Frost Appointed chairman June 2013 - Non-executive independent
downstream industries is evident. The exchange rate (with regards to combatting
import finished goods), supportive government participation and firm commitments to
South African manufacturing basis by international corporations is driving investments TREASURY SHARES
at our customer base. This will benefit both the industry and the plastics converting Sales of treasury shares were in respect of the exercise of share options.
industries.
The operation is continuing its focus on innovative technologies, efficiency and cost CASH DIVIDEND DECLARATION
improvements as well as expansion of its customer base in different market sectors.
A final gross cash dividend of 15.8 cents per share ("cps") for the year ended 30 June 2013 (2012: final 15.4 cps and special 4.6 cps)
Early fruits of this labour as is evident in the year under review. The difficult trading
has been declared and is payable to shareholders on Monday, 21 October 2013. The last
period has brought customer and supplier significantly closer and the resultant
day to trade will be Friday, 11 October 2013. "Ex" dividend trading begins on Monday, 14
partnership developments are exciting.
October 2013 and the record date will be Friday, 18 October 2013. Share certificates may
not be dematerialised or re-materialised between Monday, 14 October 2013 and Friday, 18
October 2013, both days inclusive. Directors confirm that the solvency and liquidity test is
Filling Operations
satisfied at the date of this report. The test will be performed again at the payment date.
An aggressive marketing strategy has resulted in pleasing growth of 6,9% in revenue
for the business.
This dividend will be made from income reserves. The gross dividend is 15.8 cps. Dividend
In the Cape region, a combination of improved efficiencies and peak season stock Withholding Tax (DWT) is 15%. There are no Secondary Tax on Companies (STC) credits
and logistics planning have supported a volume growth of 13%, as the brand available for set off against the DWT. The net local cash dividend to shareholders liable for
continues its expansion in the region. DWT will therefore be 13.430 cps.
The Gauteng region depressed the overall performance of the business by failing to Number of shares in issue at the date of declaration is 88 428 066 shares.
gain brand support on the basis of the Cape model. A business review, restructure
and launch of a specific Gauteng CSD brand, toward the end of the review period is
showing signs of gaining momentum. This part of the business is closely monitored for Unless otherwise requested in writing, individual dividend cheques of less than R50 will not
its continued future in the Group. 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.
The business is well positioned to benefit from the strength and growth of the middle
income band consumers in South Africa and it suitably complements the Group‘s
current profile.
Prospects
Recent trading updates by the major supermarket chains point to the continuing B.J. FROST (Non-Exec Chairman)
slowdown in the FMCG market. The customers of the packaging operation are the P.F. Sass (Chief Executive Officer)
major supplier of products to this market and the intense competition is pressurising Cape Town, 11 September 2013
prices and margins. Encouragingly, the growth in Sub-Saharan markets is gaining
momentum. Prepared by: LV Rowles CA(SA)
REGISTERED AUDITOR SPONSORS TRANSFER SECRETARIES COMPANY TAX NUMBER
Mazars - Partner Jaco Cronje - Registered Auditor Arcay Moela Sponsors (Pty) Ltd Computershare Investor Services (Pty) Ltd 9775130710
Mazars House, Rialto Road, Ground floor, One Health Building P.O. Box 61051, Marshalltown, 2107
Grand Moorings Precinct, Century City, 7441 54 Maxwell Dr, Woodmead, 2157
Date: 11/09/2013 04:50:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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