Sharenet Sites 
Sharenet Sites
Unaudited interim results for the six months ended 31 August 2013
Astrapak
(Incorporated in the Republic of South Africa)
(Registration number 1995/009169/06)
Share code: APK
ISIN: ZAE000096962
Share code: APKP
ISIN: ZAE000087201 (Astrapak or the Group)
Unaudited interim results for the six months ended 31 August 2013
Commentary
Operating context
The executive team has made good progress during the six month period toward meeting the two-year recovery time-frame
objective. The recovery plan remains on track with the financial performance in-line with what was anticipated for the
initial phases of the recovery plan.Financial results take time to manifest positively but in the meantime the necessary
qualitative improvementsare well underway as encapsulated in our philosophy of charting a new course.
Necessary streamlining to improve future returns is being undertaken. Good quality human capital placements have been
made even as the company is significantly reducing headcount. We are proactively engaging with our valued customers to
share with them our objectives and to invite feedback. Astrapak aspires to be a packaging partner of choice on fair and
sustainable terms and this forms an integral component of our improvement agenda. Despite shortcomings the company has
important strengths, not least generally modern production equipment and IT systems, an established country-wide presence
with leading market positions, the capability to supply to internationally benchmarked norms for multinational
customers, and a sound financial position.
Important initiatives in respect of commonality in pricing and procurement coordination were rolled out during the
period. It is expected that much better supply chain productivity will reap a useful improvement in profitability and
market competitiveness in future.
The market continues to be characterised by subdued pricing power and the challenge of recovering rising input costs
such as polymer and electricity. Pricing is also influenced by customer procurement preferences such as multi-national
tendering and international benchmarking. Occasional disruptive tactics are employed by some players to gain short term
volume advantage at the expense of sustainable margin. Nevertheless, Astrapak is a responsible manufacturer at the
forefront of plastics packaging technology and scored some important contractual awards during the period from domestic and
multinational fast moving consumer goods customers. Astrapak Rigids volumes increased by 15,1% to 25 550 tons compared with
the corresponding period in the previous financial year. Astrapak Flexibles volumes declined by 33,1% to 10 997 tons, a
consequence of the damaging and disruptive fire at East Rand Plastics earlier in the calendar year and a deliberate
decision to exit certain businesses as part of the Flexibles strategy. Astrapak Flexibles shall therefore be a smaller but
more profitable segment than in the past. Volumes in total decreased by 5,4% to 36 547 tons. Average selling prices in
Rigids were in line with the comparative period last financial year and the average selling price for Flexibles increased
by just over 9,4%.
With the insurance claims process for the fire at East Rand Plastics finalised, work commenced late in the reporting
period to begin re-positioning Astrapak Flexibles in line with the new group structure and strategy. East Rand Plastics
had accounted for almost half of Astrapak Flexibles turnover and thus a successful resolution of the insurance claim was
necessary before a proper optimisation plan could be executed.
Packaging Consultants was discontinued and the premises are being transferred to a third party. The productive asset
base and important skills are being distributed within the Astrapak Flexibles segment. We will not spend money on assets
that will not perform or not help us achieve desired returns.
The business of Alex White & Co was disposed of as a going concern to Tadbik Pack SA (Pty) Limited (Tadbik) on the
basis of a vendor loan to Tadbik in the amount of R 7,6 million. The loan, which attracts prime rate of interest, is
payable in 36 equal monthly instalments. Security is provided by the holding company of Tadbik.
Within the Astrapak Rigids segment, the Moulding division produced a pleasing result for the six month period that was
ahead of budget. The Cinqplast-Plastop Denver site in Gauteng was rationalised with injection moulding equipment
consolidated on one site in Pinetown, Kwa-Zulu Natal as part of strategy to develop a dedicated closures facility. Efficiency
benefits, as envisaged in the strategic review, are already apparent and a major improvement in profitability is
expected. Progress has been made securing long term supply contracts within the mouldings customer base.
The PET division within the Astrapak Rigids segment performed below expectation due to weak seasonal demand, the
temporary effects of a facility reorganisation at a major customer and the effects of cut-throat competitor pricing in the
Western Cape. Selling prices were discounted as part of a strategic decision to align with key customers to secure long
term offtake.
An improved result was recorded by the Forming division within Astrapak Rigids. The strategic review has highlighted
further opportunities for optimising throughput.
Financial review
Revenue from continuing operations increased by 1,2% to R1 222 million, a mix of 5,4% volume decline and 6,6% average
selling price increase.
Revenue at Astrapak Rigids increased by 15,1% to R893,7 million and was in line with volume growth. Revenue at
Astrapak Flexibles decreased by 23,7% and reflected a mix of volume decrease to the extent of 33,1% and a positive average
price effect of 9,4%.
Gross profit from continuing operations decreased 13,9% to R252,3 million with the main contributor being the
increased cost of workings and loss of profits of R23,9 million at East Rand Plastics. This amount has been reimbursed by the
insurers but reflected as other items of income and expenditure and so on an adjusted basis the decrease is 5,7%.
Profit before interest, tax depreciation and amortization from continuing operations of R95,3 million decreased by
25,2% with the margin declining to 7,8% from 10,5%.
The depreciation charge of R51,8 million is 8,3% lower and with capital expenditure of R62,7 million also down, by
10%, investment in plant and equipment is being increasingly scaled back and prioritised to align with group return
objectives and key account management imperatives. The bulk of investment, R57,8 million, was allocated Astrapak Rigids with
only R4,9 million to Astrapak Flexibles.
Profit from continuing operations before exceptional items decreased by 38,6% to R43,5 million which represented a
group trading margin of 3,6% compared with 5,9% in the corresponding period. Astrapak Rigids had a decrease in segment
profit of 38,3% to R37,3 million, with the trading margin decreasing to 4,2% from 7,8%. Astrapak Flexibles segment profit
declined by 40,3% to R6,2 million and the trading margin decreased to 1,9% from 2,4%.
An exceptional loss in the amount of R35,1 million is recorded and includes one-off items of an insurance and
impairment nature related to the Flexibles portfolio.
A provision for insurance proceeds in the amount of R295,4 million was previously raised and final settlement in the
amount R311,4 million, net of value added tax on proceeds, was agreed with no restrictions on utilisation. A further R16
million was thus recognised. This amount is made up of reversal of an over-accrual of R23,3 million and R39,3 million
received for business interruption at East Rand Plastics. Assets in the amount of R11,8 million relating to Packaging
Consultants were impaired.
Net finance costs from continuing operations declined by 32,2% to R10.2 million. This equates to a PBITDA to net interest cover
ratio of 9,3x.
A pre-tax loss of R23 million and a net loss - after a tax credit of R7,1 million - of R15,9 million was recorded by
the discontinued operations as represented by Packaging Consultants.
Total loss attributable to shareholders is R30,1 million, equal to 24,9 cents per share of which 11,7 cents is
attributable to continuing operations and 13,2 cents to the discontinued operations.
Headline earnings from continuing operations are R12,9 million, equal to 10,7 cents per share and represent a decline of 51,4%
compared with the 22,0 cents per share reported for the six month period ended 31 August 2012. The result, whilst down,
is substantially better than budgeted for.
Net debt reduced from R471 million as at 28 February 2013 to R248,5 million as at 31 August 2013, a decline of R222,5
million. The debt to equity ratio is 21,8% compared with 39,5%, mainly due to the insurance proceeds. Net cash inflows
from operating activities at R333,5 million were distorted by insurance proceeds.Net working capital of R314,3 million is
below budget and only 2,7% higher than in the prior year.
Astrapak is mindful of the need to husband cash resources carefully at a time when profits have decreased and it is
difficult to release meaningful extra cash from working capital. It is anticipated that the normal seasonal pattern of
improved second half cash collection will pertain for the year.
Prospects
Detail on the turnaround strategy, implementation thereof and financial objectives were comprehensively dealt with by
Mr Robin Moore in his Chief Executives report in the 2013 integrated annual report published on 17 July. These
financial objectives, inter alia, include a 15% return on capital employed over the course of a business cycle, recommencement
of dividends to shareholders, and an operational performance that is reflected in an improved stock market
capitalisation. Our qualitative objectives for the way we deal with people and how we consume natural resources are no less important
and will also shape the financial outcomes.
This is not an easy year for Astrapak. We are instituting big changes in a difficult market and these can be unsettling at a time when we
also have to keep the businesses delivering superior quality products on time to customers. The first half result is
mediocre and we expected that. We are sticking to our strategy, implementation is on track and we are building for improved
returns. As the team moves into the second phase of the recovery plan the Group will look to many of the initiatives completed
in phase 1 to start delivering additional value, both from a qualitative and quantitative perspective. Astrapak sincerely
values the support of all stakeholders.
Changes to the Board
There were no changes to the Board during the period under review. Mr Paul Botha resigned as a member of the Audit Committee.
Significant changes in shareholding
Shareholders are referred to the relevant stock exchange news service announcements. Accounts under the management of
both Coronation Asset Management (Pty) Ltd and Regarding Capital Management (Pty) Ltd have purchased shares from Royal
Bafokeng (Pty) Ltd to the extent that each have respective holdings in Astrapak of 29,33% and 10,14%.
Dividend
No dividend is declared. Recommencement of dividend payments to ordinary shareholders is an important goal and
payments will be determined by reference to the retention needs of the company for maintenance and growth and in relation to
asset management.
For and on behalf of the Board
Phumzile Langeni Robin Moore Denver
Chairman Chief Executive Officer 27 September 2013
Condensed consolidated statement of comprehensive income
Unaudited Unaudited Audited
six months six months financial year
ended ended ended
% 31 August 31 August 28 February
(R000) Notes change 2013 2012 1 2013 1
CONTINUING OPERATIONS
Revenue 9 1,2 1 222 419 1 207 969 2 454 380
Cost of sales (970 133) (914 992) (1 899 674)
Gross profit (13,9) 252 286 292 977 554 706
Distribution and selling costs (102 875) (92 844) (198 915)
Administrative and other expenses (138 009) (135 298) (300 317)
Other items of income and expenditure 32 108 6 067 70 928
Profit from operations before exceptional items (38,6) 43 510 70 902 126 402
Exceptional items 10 (35 099) - 115 210
Profit from operations 11 (88,1) 8 411 70 902 241 612
Investment income 6 674 3 843 8 087
Finance costs (16 841) (18 828) (35 393)
(Loss)/profit before taxation (103,1) (1 756) 55 917 214 306
Taxation (1 897) (16 197) (43 903)
(Loss)/profit for the period from continuing operations (109,2) (3 653) 39 720 170 403
DISCONTINUED OPERATIONS
Loss for the period from discontinued operations 12 (177,3) (15 935) (5 746) (21 829)
(Loss)/profit for the period (157,7) (19 588) 33 974 148 574
Other comprehensive income - 109 756 95 772
Total comprehensive (loss)/income for the period (19 588) 143 730 244 346
Attributable to:
Ordinary shareholders of the parent (123,2) (30 129) 130 118 219 226
- (Loss)/profit for the period from continuing operations (14 194) 26 108 145 283
Profit for the period from continuing operations before
exceptional items 20 905 26 108 30 073
Exceptional items (35 099) - 115 210
- Loss for the period from discontinued operations (15 935) (5 746) (21 829)
- Revaluation of land and buildings (net of tax) - 109 756 95 772
Preference shareholders of the parent 5 682 5 374 11 369
Non-controlling interest 4 859 8 238 13 751
Total comprehensive (loss)/income for the period (113,6) (19 588) 143 730 244 346
(Loss)/earnings per ordinary share (cents) 13 (247,3) (24,9) 16,9 102,1
- continuing operations (153,9) (11,7) 21,7 120,2
- discontinued operations (175,0) (13,2) (4,8) (18,1)
Fully diluted (loss)/earnings per ordinary share (cents) 13 (247,3) (24,9) 16,9 102,1
- continuing operations (153,9) (11,7) 21,7 120,2
- discontinued operations (175,0) (13,2) (4,8) (18,1)
Preference dividend paid and accrued 5 682 5 374 11 369
Preference dividend per preference share (cents) 378,80 358,30 757,93
1 Restated for classification of Packaging Consultants as a discontinued operations and correction of revaluation to August 2012 comparatives. Please refer
to note 2 and 12.
Reconciliation of headline earnings
Unaudited Unaudited Audited
six months six months financial year
ended ended ended
% 31 August 31 August 28 February
(R000) Notes change 2013 2012 2013
(Loss)/profit for the period attributable to ordinary shareholders (248,0) (30 129) 20 362 123 454
- continuing operations (14 194) 26 108 145 283
- discontinued operations (15 935) (5 746) (21 829)
Headline (loss)/earnings adjustments
- Loss on exercise of options - - 265
- Reversal of insurance proceeds 23 333 - -
- Impairment of property, plant and equipment 11 766 - 153 263
- (Profit)/loss on disposal of property, plant and equipment (1 277) 507 (291 604)
- Total tax effect of adjustments (7 314) (143) 26 913
- Total non-controlling interest share of adjustments - - (765)
Headline (loss)/earnings attributable to ordinary shareholders (117,5) (3 621) 20 726 11 526
- continuing operations (51,2) 12 907 26 472 30 126
- discontinued operations (187,6) (16 528) (5 746) (18 600)
Headline (loss)/earnings per ordinary share (cents) 13 (117,4) (3,0) 17,2 9,6
- continuing operations (51,4) 10,7 22,0 24,9
- discontinued operations (185,4) (13,7) (4,8) (15,3)
Fully diluted headline (loss)/earnings per ordinary share (cents) 13 (117,4) (3,0) 17,2 9,6
- continuing operations (51,4) 10,7 22,0 24,9
- discontinued operations (185,4) (13,7) (4,8) (15,3)
Condensed consolidated statement of financial position
Unaudited Unaudited Audited
six months six months financial year
ended ended ended
% 31 August 31 August 28 February
(R000) Notes change 2013 2012 2013
Assets
Non-current assets (10,9) 1 301 951 1 461 895 1 308 371
Property, plant and equipment 3 1 097 505 1 251 337 1 104 721
Goodwill 117 118 117 118 117 118
Deferred taxation assets 27 932 42 952 36 227
Loans and investments 4 59 396 50 488 50 305
Current assets 21,0 970 676 802 139 1 066 136
Inventories 5 307 749 318 294 281 515
Trade and other receivables 493 088 472 748 757 394
Cash and cash equivalents 6 169 839 11 097 27 227
Assets classified as held-for-sale 7 8 598 13 775 30 174
Total assets 0,1 2 281 225 2 277 809 2 404 681
Equity and liabilities
Total equity 2,9 1 194 743 1 161 320 1 254 265
Equity attributable to ordinary shareholders of the parent 998 121 947 759 1 048 584
Preference share capital and share premium 142 590 142 590 142 590
Non-controlling interest 54 032 70 971 63 091
Non-current liabilities (11,9) 456 696 518 500 493 512
Long-term interest-bearing debt 273 966 316 962 286 894
Long-term financial liabilities 5 441 6 644 5 441
Deferred taxation liabilities 177 289 194 894 201 177
Current liabilities 5,3 629 786 597 989 634 987
Trade and other payables 481 270 475 508 418 615
Shareholders for preference dividends 4 179 4 527 5 041
Short-term interest-bearing debt 141 803 117 954 139 665
Bank overdrafts 6 2 534 - 71 666
Liabilities relating to assets held-for-sale 7 - - 21 917
Total equity and liabilities 0,1 2 281 225 2 277 809 2 404 681
Condensed consolidated statement of changes in equity
Unaudited Unaudited Audited
six months six months financial year
ended ended ended
31 August 31 August 28 February
(R000) Notes 2013 2012 2013
Opening balance 1 254 265 1 012 003 1 020 615
Comprising:
Ordinary share capital and premium 199 502 199 502 199 502
Retained income 885 675 753 609 762 221
Capital reserve 8 20 523 18 757 18 757
Non-controlling put options (5 441) (4 937) (4 937)
Revaluation reserve 95 772 - -
Treasury shares (147 447) (150 120) (150 120)
Equity attributable to ordinary shareholders of the parent 1 048 584 816 811 825 423
Preference share capital and premium 142 590 142 590 142 590
Non-controlling interest 63 091 52 602 52 602
Movements:
(Loss)/profit for the period (19 588) 33 974 148 574
Preference dividends paid (5 682) (5 374) (11 369)
Ordinary dividends paid to non-controlling interest - - (10 500)
Acquisition of non-controlling interest (36 000) - -
Contributions made by non-controlling interest 1 053 10 131 7 238
Reduction in treasury shares due to exercise of options - - 2 673
Adjustment of fair value of put options - (1 707) (504)
Revaluation reserve - 109 756 95 772
Share-based payment expense for the period 695 2 537 1 766
Closing balance 1 194 743 1 161 320 1 254 265
Comprising:
Ordinary share capital and premium 199 502 199 502 199 502
Retained income 834 516 773 971 885 675
Capital reserve 8 21 218 21 294 20 523
Non-controlling put options (5 441) (6 644) (5 441)
Revaluation reserve 95 772 109 756 95 772
Treasury shares (147 446) (150 120) (147 447)
Equity attributable to ordinary shareholders of the parent 998 121 947 759 1 048 584
Preference share capital and premium 142 590 142 590 142 590
Non-controlling interest 54 032 70 971 63 091
Total equity 1 194 743 1 161 320 1 254 265
Condensed consolidated statement of cash flows
Unaudited Unaudited Audited
six months six months financial year
ended ended ended
% 31 August 31 August 28 February
(R000) Notes change 2013 2012 2013
Cash generated from operations (60,0) 52 829 132 179 459 862
Decrease/(increase) in working capital 302 510 26 348 (281 967)
Net interest and taxation paid (21 789) (32 011) (45 390)
Net cash inflow from activities before distributions to shareholders 163,6 333 550 126 516 132 505
Dividend distribution to all shareholders (6 543) (5 267) (21 248)
Net cash inflow from operating activities 169,7 327 007 121 249 111 257
Capital expenditure (62 694) (69 855) (149 232)
Net movement of investments, subsidiaries and non-controlling interests (37 936) 10 131 10 226
Proceeds on disposal of property, plant and equipment 13 363 14 979 43 476
Net cash outflow from investing activities (87 267) (44 745) (95 530)
Net cash outflow from financing activities (27 996) (62 277) (57 036)
Net increase/(decrease) in cash and cash equivalents 211 744 14 227 (41 309)
Net cash and cash equivalents at the beginning of the period (44 439) (3 130) (3 130)
Net cash and cash equivalents at the end of the period 6 1 407,7 167 305 11 097 (44 439)
Condensed consolidated segmental analysis
Total Discon-
continuing tinued Total
(R000) Rigids Flexibles operations operations Group
Revenue for segment 2013 974 550 359 153 1 333 703 89 039 1 422 742
2012 843 142 470 029 1 313 171 108 394 1 421 565
Transactions with other operating segments of the Group 2013 (80 853) (30 431) (111 284) (6 713) (117 997)
2012 (66 238) (38 964) (105 202) (7 686) (112 888)
Revenue for external customers 2013 893 697 328 722 1 222 419 82 326 1 304 745
2012 776 904 431 065 1 207 969 100 708 1 308 677
Profit from operations before exceptional items 2013 37 307 6 203 43 510 (21 864) 21 646
2012 60 506 10 395 70 901 (6 728) 64 173
Total assets 2013 1 510 366 770 859 2 281 225 - 2 281 225
2012 1 287 274 990 535 2 277 809 - 2 277 809
Total liabilities 2013 576 771 509 711 1 086 482 - 1 086 482
2012 541 841 574 648 1 116 489 - 1 116 489
Capex 2013 57 804 4 890 62 694 - 62 694
2012 62 291 7 564 69 855 - 69 855
Depreciation 2013 38 461 13 310 51 771 3 138 54 909
2012 40 591 15 870 56 461 4 399 60 860
Supplementary information
Unaudited Unaudited Audited
six months six months financial year
ended ended ended
31 August 31 August 28 February
2013 2012 2013
Number of ordinary shares in issue ('000) 135 131 135 131 135 131
Weighted average number of ordinary shares in issue ('000) 121 016 120 475 120 836
Fully diluted weighted average number of ordinary shares in issue ('000) 121 024 120 475 120 837
Number of preference shares in issue ('000) 1 500 1 500 1 500
Net asset value per share (cents) 943 905 986
Net tangible asset value per share (cents) 846 808 889
Closing share price (cents) 610 677 725
Market capitalisation (R million) 824 915 980
Net interest-bearing debt as a percentage of equity (%) 21,8 39,5 39,5
Net debt 248 464 430 463 470 998
Long-term interest-bearing debt 273 966 323 606 286 894
Short-term interest-bearing debt 141 803 117 954 139 665
Cash and cash equivalents (169 839) (11 097) (27 227)
Bank overdraft 2 534 - 71 666
Interest cover (before exceptional items) 4,3 4,2 7,6
Net working capital days 46,9 43,4 45,4
Contingent liabilities 4 574 6 085 7 635
Number of employees 3 422 3 931 3 975
- continuing operations 3 267 3 706 3 728
- discontinued operations 155 225 247
Earnings before interest, taxation, depreciation and amortisation ("EBITDA") - continuing
operations 95 280 127 363 240 958
Earnings before interest, taxation, depreciation and amortisation ("EBITDA") - total Group 76 554 125 032 228 437
(Loss)/earnings before interest, taxation, depreciation and amortisation ("EBITDA") -
discontinued operations (18 726) (2 331) (12 521)
Notes
1. Basis of preparation and accounting policies
These condensed consolidated annual financial statements for the half year ended 31 August 2013 have been prepared
in accordance with the framework concepts and the measurement and recognition requirements of International Financial
Reporting Standards (IFRS), the SAICA Financial Reporting Guide as issued by the Accounting Practices Committee and
the information required by IAS 34: Interim Financial Reporting. This report was compiled under the supervision of
Gene Lapan (CA)SA, Group Financial Director. The accounting policies used in the preparation of these results are in
accordance with IFRS and are consistent in all material respects with those used in the audited annual financial statements
for the year ended 28 February 2013.
2. Comparative figures
The comparative figures have been restated due to the classification of Packaging Consultants (a division of AstrapakManufacturing Holdings (Proprietary) Limited)
as a discontinued operations and for the correction of revaluation impact on comparatives for the 6 months ended 31 August 2013.
Unaudited Unaudited Audited
six months six months financial year
ended ended ended
31 August 31 August 28 February
(R000) 2013 2012 2013
3. Property, plant and equipment
Opening net carrying amount 1 104 721 1 265 131 1 140 169
Additions 62 694 69 855 149 232
Classified as assets held-for-sale - (6 700) (22 956)
Revaluation of properties - (604) 117 754
Disposals (3 235) (15 485) (11 732)
Impairment (11 766) - (144 608)
Depreciation (54 909) (60 860) (123 138)
Closing net carrying amount 1 097 505 1 251 337 1 104 721
Capital expenditure for the period 62 694 69 855 149 232
Capital commitments
- contracted not spent 69 333 49 893 14 409
- authorised not contracted 20 050 17 326 19 254
4. Loans and investments
Vendor loan to Afripack Consumer Flexibles (Proprietary) Limited in terms of Flexibles
disposal transaction 51 733 50 476 50 293
Vendor loan to Tadbik Pack SA (Proprietary) Limited on disposal of Alex White & Co
operation 7 651 - -
Unlisted investments 12 12 12
Loans and investments at end of the period 59 396 50 488 50 305
5. Inventories
Inventories amounting to R92 615 (Feb 2013: R38 451) are carried at net realisable value.
6. Cash and cash equivalents
Cash and cash equivalents 169 839 11 097 27 227
Bank overdrafts (2 534) - (71 666)
Net cash and cash equivalents at the end of the period 167 305 11 097 (44 439)
7. Assets held-for-sale and liabilities relating to assets held-for-sale
Assets held-for-sale relates to City Packaging (a division Astrapak Manufacturing
Holdings (Proprietary) Limited) assets and Astrapak Property Holdings (Proprietary) Limited
property which is in the process of being disposed of.
Assets held-for-sale/sold consists of the following:
Opening balance as at the beginning of the period 30 174 7 075 7 075
Inventory - - 10 069
Trade and other receivables - - 2 720
Cash and cash equivalents - - 9
Assets previously held-for-sale disposed of (21 576) - (4 000)
Impairment of plant and equipment previously classified as held-for sale - - (8 655)
Property, plant and equipment classified as held-for sale - 6 700 22 956
Assets held-for-sale at the end of the period 8 598 13 775 30 174
Liabilities relating to assets held-for-sale/sold consist of the following:
Long-term loans - - 8 115
Trade creditors - - 10 805
Bank overdrafts - - 2 997
Liabilities relating to assets held-for-sale at the end of the period - - 21 917
8. Capital reserve
The capital reserve relates to employee share options valued using the Black Scholes
method and the cash financed stock plan.
Included in administrative and other expenses is IFRS 2 - Share Based Payments
charges of R0,7 million (Feb 2013: R1,8 million).
9. Revenue
Revenue for the Group 1 333 703 1 313 171 2 704 486
Transactions with other entities within the Group (111 284) (105 202) (250 106)
Revenue for external customers 1 222 419 1 207 969 2 454 380
Volume (in '000 tons) 36 547 38 637 81 952
10. Exceptional items
Insurance (reversal)/income relating to property, plant and equipment destroyed in
fire at East Rand Plastics (23 333) - 263 860
Impairment of property, plant and equipment relating to fire at East Rand Plastics - - (56 308)
Impairment of property, plant and equipment (11 766) - (92 342)
Exceptional items (35 099) - 115 210
11. Profit from operations
Profit from operations for continuing operations are arrived at after taking the
following into account:
Net profit/(loss) on disposal of property, plant and equipment 453 (507) 27 615
Depreciation 51 771 56 461 114 555
IFRS 2 share-based payment expenses 695 1 810 1 766
Net loss on exercise of share options - - 265
12. Loss for the period from discontinued operations
The Group classified Packaging Consultants a division of Astrapak Manufacturing
Holdings (Proprietary) Limited, as discontinued operations as part of its strategy to
rationalise the Flexibles division. Previous years discontinued operations relates to
City packaging and Ultrapak (both divisions of Astrapak Manufacturing Holdings
(Proprietary) Limited)
Revenue 82 326 100 708 181 503
Cost of sales (84 504) (97 401) (180 520)
Gross (loss)/profit (2 178) 3 307 983
Distribution and selling costs (5 376) (7 324) (13 708)
Administrative and other operating expenses (14 310) (2 711) (8 380)
Loss from operations before exceptional items from discontinued operations (21 864) (6 728) (21 105)
Exceptional items - - (5 614)
Loss from operation from discontinued operations (21 864) (6 728) (26 719)
Investment income 13 28 25
Finance costs (1 213) (2 516) (4 008)
Loss before taxation from discontinued operations (23 064) (9 216) (30 702)
Taxation 7 129 3 470 8 873
Loss for the period from discontinued operations (15 935) (5 746) (21 829)
The net cash flows incurred by discontinued operations for the period are
represented below:
Operating cash inflow/(outflow) 12 390 (11 585) 7 941
Investing cash inflow 3 620 8 296 11 413
Financing cash (outflow)/inflow (17 209) 7 405 (17 113)
Net (decrease)/increase in cash and cash equivalents from discontinued operations (1 199) 4 116 2 241
13. (Loss)/earnings per ordinary share and headline (loss)/earnings per ordinary
share - basic and fully diluted
(Loss)/earnings per ordinary share is calculated by dividing the (loss)/profit
attributable to ordinary shareholders of the parent by the weighted average
number of shares in issue over the period that the attributable (loss)/profit
was generated.
Headline (loss)/earnings per ordinary share is calculated by dividing the
headline (loss)/earnings attributable to ordinary shareholders of the parent by
the weighted average number of shares in issue over the period that the headline
(loss)/earnings were generated.
Fully diluted (loss)/earnings and headline (loss)/earnings per ordinary share is
determined by adjusting the weighted average number of shares in issue over the period
to assume conversion of all dilutive ordinary shares, being shares issued in terms of
the share incentive trust and the cash financed stock plan.
14. Subsequent events
No other facts or circumstances has come to light betweeen 31 August 2013 and the date of this report.
Board of Directors: P Langeni* (Chair), R Moore (Chief Executive Officer), M Diedloff (Group Managing Director),
G Lapan (Group Financial Director), P C Botha*, C McDougall*, G Z Steffens*, G P Duda* *Non-executive
Company Secretary: S Ngwabi
Registered Office: 5 Kruger Street, Denver, 2012 PO Box 75769, Gardenview, 2047, South Africa
Tel +27 11 615 8011 Fax +27 11 615 9790
Registrar: Computershare Investor Services (Pty) Ltd Ground Floor, 70 Marshall Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107
Sponsor: Rand Merchant Bank (a division of FirstRand Bank Limited)
Operating entities
Flexibles Division: Barrier Film Converters East Rand Plastics Knilam Packaging Packaging Consultants
Peninsula Packaging Plusnet/Geotex Saflite
Rigids Division: Cinqpet Consupaq Hilfort JJ Precision Plastics Marcom Plastics PAK 2000 Plastech
Plastform Plastop Plastop (KwaZulu-Natal) Thermopac Weener - Plastop
For more information on our business please go to: www.astrapak.co.za
Date: 27/09/2013 03:29:00 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.
