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Unaudited Interim results for the six months to 31 December 2013
Transpaco Limited
(Incorporated in the Republic of South Africa)
Registration number 1951/000799/06
ISIN: ZAE000007480
JSE Share code: TPC
UNAUDITED CONDENSED INTERIM GROUP RESULTS FOR THE SIX MONTHS TO 31 DECEMBER
2013 AND DIVIDEND ANNOUNCEMENT
HIGHLIGHTS
REVENUE UP 10%
HEADLINE EARNINGS PER SHARE UP 7%
DIVIDEND PER SHARE 39,0 CENTS
Introduction
Transpaco continued to deliver pleasing results despite a challenging economic environment. The group’s
margins remain under pressure as raw material prices continue to increase driven by the weakening
exchange rate. However, controlled expenses and higher volumes helped to mitigate the impact on the
group’s performance.
Financial Results
The group increased headline earnings by 7,2% to R46,5 million (December 2012: R 43,3 million). Headline
earnings per share (HEPS) grew by 6,7% to 144,5 cents (December 2012: 135,4 cents). Earnings per share
(EPS) increased by 6,7%, to 144,7 cents (December 2012: 135,6 cents).
Diluted HEPS rose by 7,1% to 141,9 cents (December 2012: 132,5 cents).
Total operating profit grew 7,3% to R64,6 million (December 2012: R60,2 million) on turnover of R667,6
million, up 10,2% (December 2012: 606,1 million).
Operating profit in the Plastic division increased against a year-on-year reduction in the Paper and Board
division caused by an unexpected decline in demand for certain board products.
Transpaco utilised R7,9 million in cash from operating activities (December 2012: generated R37,9 million in
cash). A combination of higher inventory and trade debtors due to increased sales, and early payment to
trade creditors for discount purposes resulted in this change. The latter also reduced the cash balance at 31
December 2013 to R17,2 million compared to the previous year-end R65,3 million.
The group’s net interest-bearing debt-to-equity position was 5,3% (December 2012: net cash positive) with
an interest cover of 166,9 times (December 2012: 100 times).
Net asset value per share increased by 11, 9% to 1 220 cents (December 2012: 1 090 cents)
Prospects
The group will continue its proven business strategy, targeting organic growth while maintaining strict
financial control and at the same time identifying and pursuing appropriate acquisitions.
Dividend
The board has declared an interim gross cash dividend out of income reserves of 39,0 cents per share
(December 2012: 36,5 cents per share) for the six-month period ending 31 December 2013, an increase of
6,8%. No STC credits have been utilised. After applying the dividend withholding tax of 15% a net interim
dividend of 33,15000 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 Income Tax
reference no. is 9975/112/71/6.
The salient dates for the dividend are as follows:
Last date to trade shares cum dividend Thursday, 13 March 2014
Shares trade ex-dividend Friday, 14 March 2014
Record date Thursday, 20 March 2014
Payment date Monday, 24 March 2014
Share certificates may not be dematerialised or rematerialised between Friday, 14 March 2014 and
Thursday, 20 March 2014, both days inclusive
Basis of Preparation and Accounting Policies
The unaudited interim financial results have been prepared in accordance with the recognition and
measurement criteria of International Financial Reporting Standards (IFRS) issued by the International
Accounting Standards Board (IASB), its interpretations issued by the IFRS Interpretations Committee, the
SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, the presentation and
disclosure requirements set out in IAS 34 – Interim Financial Reporting and comply with the JSE Listings
Requirements and the Companies Act of South Africa. 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 2013. Transpaco has adopted all applicable new and amended standards, the effect of which had
no material impact on the unaudited interim financial results.
Approval and Preparation
These unaudited interim 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 P N 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 19 February 2014
Auditors Ernst & Young Incorporated
Transpaco Limited Registration number: 1951/000799/06
Share code: TPC
ISIN: ZAE000007480
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
Unaudited Unaudited Audited
6 months % 6 months 12 months
R'000 Dec 2013 change Dec 2012 June 2013
Revenue 668 742 607 051 1 125 260
Turnover 667 596 10.2 606 060 1 123 204
Cost of sales (431 096) (384 616) (715 749)
Profit before operating costs and depreciation 236 500 6.8 221 444 407 455
Operating Costs (155 119) (145 805) (282 697)
Depreciation (16 807) (15 461) (31 618)
Operating profit 64 574 7.3 60 178 93 140
Finance income 1 146 991 2 056
Finance costs (1 533) (1 599) (3 085)
Profit before taxation 64 187 7.8 59 570 92 111
Taxation (17 643) (16 180) (25 246)
Profit for the period 46 544 7.3 43 390 66 865
Other comprehensive income - - -
Total comprehensive income 46 544 7.3 43 390 66 865
Weighted average number of shares in issue
('000) 32 164 32 000 32 012
Diluted weighted average number of shares in
issue ('000) 32 747 32 710 32 719
Earnings per share (cents) 144.7 6.7 135.6 208.9
Diluted earnings per share (cents) 142.1 7.1 132.7 204.4
Headline earnings per share (cents) 144.5 6.7 135.4 208.2
Diluted headline earnings per share (cents) 141.9 7.1 132.5 203.7
Dividend per share (cents)* 39.0 6.8 36.5 90.0
*Dividend declared after the period
Reconciliation of headline earnings (R'000)
Basic earnings 46 544 43 390 66 865
Profit on disposal of property, plant and equipment (75) (61) (208)
Headline earnings 46 469 7.2 43 329 66 657
STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
6 months 6 months 12 months
R'000 Dec 2013 Dec 2012 June 2013
ASSETS
Non-current assets 202 702 190 055 202 602
Property, plant and equipment 195 906 181 224 193 901
Intangibles 482 482 482
Goodwill 3 204 3 204 3 204
Long-term receivables - 1 822 642
Deferred taxation 3 110 3 323 4 373
Current assets 392 807 371 331 393 393
Inventories 128 454 108 554 120 416
Trade and other receivables 243 609 194 318 185 579
Short-term receivables 2 013 2 202 2 308
Taxation
receivable 1 356 965 1 404
Cash and cash equivalents 17 375 65 292 83 686
Non-current assets classified as held-for-
sale 885 885 885
TOTAL ASSETS 596 394 562 271 596 880
EQUITY AND LIABILITIES
Capital and
reserves 390 489 348 913 360 935
Issued share capital 320 320 320
Share premium 11 019 11 019 11 019
Other reserves 3 652 3 056 3 358
Distributable reserve 375 498 334 518 346 238
Non-current liabilities 50 342 46 924 53 491
Interest-bearing borrowings 26 689 24 667 32 612
Deferred taxation 23 653 22 257 20 879
Current liabilities 155 563 166 434 182 454
Trade payables and accruals 123 023 134 747 148 898
Provisions 19 906 15 495 17 449
Current portion of interest-bearing
borrowings 11 387 14 639 13 244
Taxation payable 1 114 1 553 2 863
Bank overdraft 133 - -
TOTAL EQUITY AND LIABILITIES 596 394 562 271 596 880
Number of shares in issue('000)
Number of shares (net of treasury shares) 32 017 31 991 31 991
Net movement in treasury shares 2 26 26
Ranking number of shares 32 019 32 017 32 017
Salient features
Net asset value per share (cents) 1 220 1 090 1 127
Operating margin % 9,7 9,9 8,3
Net cash Net cash
Net interest-bearing debt : equity ratio % 5,3 positive positive
Net interest cover (x) 166,9 100 90,5
STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
6 months 6 months 12 months
R'000 Dec 2013 Dec 2012 June 2013
Cash flow from operating activities
Cash (utilised)/generated from operations (7 916) 37 868 100 067
Dividends paid (17 295) (15 765) (27 521)
Finance costs (1 533) (1 599) (3 085)
Finance income 1 146 991 2 056
Taxation paid (15 307) (13 145) (23 768)
Net cash (outflow)/inflow from operating
activities (40 905) 8 350 47 749
Cash flow from investing activities
Proceeds on disposal of property, plant and
equipment 270 199 436
Expansion and replacement of property,
plant and equipment (18 977) (11 140) (40 007)
Decrease in long-term receivables 642 1 129 2 309
Decrease/(increase) in short-term
receivables 295 (92) (198)
Net cash outflow from investing activities (17 770) (9 904) (37 460)
Cash flow from financing activities
(Decrease)/increase in interest-bearings
borrowings (5 923) (301) 7 644
Decrease in current portion of interest-
bearing borrowings (1 857) (3 552) (4 947)
Movement in treasury shares 11 147 148
Net cash (outflow)/inflow from financing
activities (7 769) (3 706) 2 845
Net movement in cash for the period (66 444) (5 260) 13 134
Cash and cash equivalents at the beginning of
the period 83 686 70 552 70 552
Cash and cash equivalents at the end of the
period 17 242 65 292 83 686
SEGMENTAL ANALYSIS
Plastic Paper and Properties Total
Products Board and Group
R'000 Products Services
Turnover - 2013 447 264 220 332 - 667 596
Turnover to customers 478 904 233 583 - 712 487
Less turnover to internal customers 31 640 13 251 - 44 891
Turnover - 2012 381 474 224 586 - 606 060
Turnover to customers 401 911 232 749 - 634 660
Less turnover to internal customers 20 437 8 163 - 28 600
Operating profit - 2013 39 358 22 728 2 488 64 574
Operating profit - 2012 30 962 27 664 1 552 60 178
Profit before tax- 2013 38 787 22 183 3 217 64 187
Profit before tax- 2012 30 161 27 537 1 872 59 570
Capital expenditure - 2013 17 140 1 344 493 18 977
Capital expenditure - 2012 4 410 6 242 488 11 140
Assets - 2013 395 971 158 746 41 677 596 394
Assets - 2012 333 961 153 686 74 624 562 271
Liabilities - 2013 122 154 62 745 21 006 205 905
Liabilities - 2012 128 187 65 942 19 229 213 358
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Issued
Share Share Other Distributable
R'000 Capital Premium Reserves Reserve Total
Balance at 30 June 2012 (audited) 320 11 019 2 438 306 746 320 523
Total comprehensive income - - - 43 390 43 390
Share-based payments - - 618 - 618
Dividend paid - - - (15 765) (15 765)
Movement in treasury shares - - - 148 148
Balance at 31 December 2012
(unaudited) 320 11 019 3 056 334 519 348 914
Total comprehensive income - - - 23 475 23 475
Share-based payments - - 302 - 302
Dividend paid - - - (11 756) (11 756)
Balance at 30 June 2013 (audited) 320 11 019 3 358 346 238 360 935
Total comprehensive income - - - 46 544 46 544
Share-based payments - - 294 - 294
Dividend paid - - - (17 295) (17 295)
Movement in treasury shares - - - 11 11
Balance at 31 December 2013
(unaudited) 320 11 019 3 652 375 498 390 489
CAPITAL COMMITMENTS
Unaudited Unaudited Audited
6 months 6 months 12 months
R'000 Dec 2013 Dec 2012 June 2013
Capital expenditure authorised
and contracted
Property, plant and equipment 13 258 25 256 9 347
Date: 19/02/2014 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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