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ASTRAPAK LIMITED - Audited provisional financial results for the twelve months ended 28 February 2014

Release Date: 14/05/2014 07:05
Code(s): APK APKP     PDF:  
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Audited provisional financial results for the twelve months ended 28 February 2014

Astrapak Limited
(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 company“ or “the Group”)

Audited provisional financial results for the twelve months ended 28 February 2014

Charting our course

Commentary 
Strategic update     
During 2014 the executive leadership team of Astrapak has progressed well with the implementation of the turnaround strategy 
and has completed the first phase of the two-year recovery time-frame objective. There is a good understanding of where the 
Group is best positioned for the future. 
Since the conclusion of an extensive review and development of a recovery plan, led by Chief Executive Officer Robin Moore, 
all stakeholders have been kept informed on the detail of the turnaround strategy, implementation timeframe and financial objectives. 
The 2013 financial results presentation and the 2013 annual report both gave stakeholders a detailed picture of what had gone wrong, 
what was still right and what was going to be done to correct Astrapak’s performance. 
At the interim stage, a detailed progress report was provided in the financial results presentation. Similarly, a full year report 
back is provided and stakeholders are invited to access this via the website and read it in conjunction with this commentary.   
In summary, the Group’s strategy is to focus on core end markets and develop operations of appropriate scale with the right mix of 
technologies and equipment to supply to internationally benchmarked norms and which importantly are sustainable into the future.
The first year of the plan has been well executed in the following key areas:
Identifying core markets and contracting key customers
Closing and selling off certain underperforming operations
Exiting unprofitable work
Selling off non-core properties to raise cash
Finalising the East Rand insurance settlement and conserving the cash as well as managing working capital
Consolidation of plant and equipment – supported by investment where required - to create operations with modern efficient equipment
Implementing a Code of Conduct and driving performance management
Improving risk management and health and safety standards
Changing people, structures and culture.
This has released cash, set the platform for the future and given the Group time to execute on the rest of the strategy, but has had the 
implication of adding significant costs in the short to medium term.
In addition to the actions mentioned above, other strategic options are being considered and stakeholders will continue to be appraised as 
and when appropriate. Nevertheless, the big changes are now behind the group. A new operational and leadership structure is in place, the 
asset base and IT systems are modern and effective and Astrapak holds leading marketing positions in its chosen markets. The financial 
position is sound. Despite the rationalisation, Astrapak retains a national presence with a capability to supply to internationally 
benchmarked norms for multinational customers. 
An important challenge has been to retain the focus on growth, business improvement and earning customer confidence whilst simultaneously 
executing on the strategy.
Necessary qualitative improvements have been made that encapsulate our philosophy of charting a new course and are a prerequisite to ensuring 
we achieve our optimal return objectives within five financial years. There is more to be done to reach the level of professionalism and 
efficiency we aspire to. The total Group staff complement has been reduced with every layer of the organisation and every business unit 
affected. Renewal has also required investment in attracting key skills. 
The financial results in 2014 include a number of material exceptional and non-recurring losses with insurance proceeds and profit on sale 
of a property, in particular, skewing comparison. From a statutory accounting point of view positive headline earnings adjustments to attributable 
income only reflect part of the total amount in exceptional and non-recurring items. Significant expense items were incurred this past financial 
year as part of the turnaround plan.  EBITDA, operating profit and earnings reported are thus understated in relation to what the Board would 
view as a normalised continuing level of performance. The financial benefits of actions taken will begin to show during the 2015 financial year, 
as previously communicated by management. 
Trading review       
Efforts to improve the competitive position of key portfolio companies has resulted in growth in volume on a comparable basis, with the core 
Rigids segment growing volume by 6%. Polymer is by far the largest item in cost of sales and is influenced by oil prices and the exchange rate,
both of which are outside customer and convertor control. The South African rand averaged R9.99 to the US dollar for the year versus R8.38 in 
the prior year, a 19% weakening. The focus on pricing and procurement coordination has mitigated the effect of these input price increases in 
the year and is expected to yield further benefits in years to come.
Multi-national tendering and international benchmarking are the norm with particular key accounts and Astrapak is embracing these procurement 
preferences and rising to the competitive challenge. Management makes a concerted effort to engage proactively and openly with customers. 
The Group has been well placed in respect of important tenders and contracts from leading local and multinational companies and is already 
benefitting from this. 
Astrapak was also recognised by the Institute of Packing in the 2013 Gold Pack Awards. Group companies secured a number of  gold medals and 
citations, a Judges’ Special Mention for Best Export Pack Fit-for-Purpose in the perishable food category and in particular the Gold Pack Trophy 
for the Robertson’s Spice Cap of which the brand owner is valued customer Unilever. 
Astrapak Rigids total revenue exceeded R2 billion for the first time. Excluding intergroup revenue of R153 million net revenue increased by 17% to 
R1,9 billion. 
The Moulding division, the largest within Astrapak Rigids, produced an especially strong result at the revenue line. The result benefitted from 
the rationalisation of the Cinqplast-Plastop Denver site in Gauteng with injection moulding equipment consolidated on one site at JJ Precision 
in Kwa-Zulu Natal. Long term supply contracts are being achieved within the Mouldings customer base that provide certainty and create alignment 
between supplier and customer. 
The PET division continued to struggle in an industry segment characterised by excess capacity and increasingly difficult market dynamics. 
The extent of Astrapak’s exposure to this category is being reviewed.   
The Forming division is benefitting from the strategic review that has yielded opportunities for optimising throughput via a clear focus on two 
key market segments within FMCG. 
Astrapak Flexibles revenue has declined in line with the strategy to consolidate product range and footprint. Flexibles revenue on a continuing 
basis and net of intergroup revenue of R36,4 million declined by 24% to R640,5 million. 
With the insurance claims process for the disruptive fire at East Rand Plastics finalised, work began in the second half of the financial year on 
re-positioning Astrapak Flexibles in line with the new group structure and strategy. As East Rand Plastics accounted for almost half of Astrapak 
Flexibles turnover a successful resolution of the insurance claim was necessary before a proper optimisation plan could be executed. The plan is 
for Astrapak Flexibles to be a smaller but more profitable unit than in the past. The structural aspects of the plan were completed during 
May 2014 and management is now working toward optimising returns on the revised  asset base.
Financial review       
Group Revenue from continuing operations increased by 3% to R2,53 billion. Polymer tonnage consumed in production declined by 11.0% 
to 72 954 tons, entirely as a result of the downsizing of the Flexible division. Favourable pricing, procurement and customer relationship 
strategies yielded a positive pricing outcome in an inflationary raw material environment.  
Gross profit from continuing operations decreased 9.3% to R514,1 million with the main contributors being the increased cost of workings and 
loss of profits at East Rand Plastics, a write-off at Barrier Films, headcount reductions and other essential business clean-up costs. 
Increased costs and loss of profits at East Rand Plastics was to an extent reimbursed by the insurers, but the reimbursement is 
reflected as other items of income and expenditure. 
Totalling R 83.9m, the negative impact of these items on the gross profit is material in relation to the result for 2014.  
To this point, there were a number of insurance related and restructuring items that negatively impacted the overall result. In 
addition to the afore-mentioned R 83.9m, a further R 51.1m in exceptional items, consisting of asset impairments and an insurance 
estimate adjustment, and additional restructuring and headcount reduction costs of R 25.9m were expensed. These costs are aligned 
with the objectives of the recovery plan.    
The Group has managed its cost base well in an inflationary environment with selling, administration and distribution costs 
increasing by only 2.2% to R 511.9m. There is scope for a reduction in this cost base as the operational performance starts improving.
Consequently, profit before interest, tax, depreciation and amortization from continuing operations of R145,6 million decreased 
by 42,5% with the margin declining to 5.8% from 10.3%. The depreciation charge of R104,6 million is 10% lower. 
Profit from continuing operations before exceptional items decreased by 70.1% to R40,9 million. Net finance costs of R32,8 million 
decreased by 10%. 
This equates to a PBITDA interest cover ratio of 4.4 times.  
An after tax loss of R28,3 million was recorded by the discontinued operations as represented by Packaging Consultants. Packaging 
Consultants was discontinued during the first half and the premises disposed of to a third party. The productive asset base 
and important skills were distributed within the Astrapak Flexibles segment as part of the optimisation plan. 
Total loss for continuing and discontinued operations is R81,7 million, equating to 67,5 cents per share of which 44,1 cents 
is attributable to continuing operations and 23,4 cents to the discontinued operations. 
The headline loss from continuing operations attributable to ordinary shareholders is R14,6 million, equating to 12,1 cents 
per share. In the prior year headline earnings from continuing operations was R30,7 million, equating to 25,4 cents per share. 
Capital expenditure of R209 million is attributable to a R 33.4m carry forward of investment projects from the prior year, 
a R 16.3m investment into the Flexible restructure and a consideration of R 13.7m paid for a strategic asset base in East 
London.  The remainder of the capital expenditure represented a few significant items that align fully with group strategies. 
Investment in plant and equipment is anticipated to be in line with depreciation in future. 
Net debt reduced from R522,1 million as at 28 February 2013 to R342,6 million as at 28 February 2014, a decline of R179,5 million. 
The debt to equity ratio reduced from 41.9% to 29.6%. 
A provision for insurance proceeds in the amount of R295,4 million was previously raised with final settlement in the amount 
R272,1 million, with no restrictions on the utilisation of these funds. But by downsizing rather than re-investing in the 
Flexible Division the funds have been better preserved and deployed. 
Net cash inflows from operating activities at R359,4 million were distorted by insurance proceeds. In the prior year the 
provision for insurance proceeds was reflected within accounts receivable. The major components of working capital, namely stock, 
debtors and creditors, have been carefully managed and compare favourably with the prior year. 
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.
In line with the rationalisation, a number of properties were successfully disposed of. 
Comparative results were restated due to a reclassification of certain property leases from operational to financial leases. 
The impact on the profitability of the Group is not material, but the financial position and net asset value is greatly enhanced.
Prospects      
During 2014 Astrapak instituted big changes and the results reflect this. The Group is now focused on delivering superior 
quality products on time and at the right price to customers. An improved financial result is budgeted for in 2015, the 
final year of the turnaround phase, and the Group is on track to meet its medium term return aspirations.The above has 
not been reviewed and reported on by Astrapak's external auditors. Astrapak is sincerely appreciative of the support it 
is receiving from customers, suppliers and its key shareholders.           
Changes to the Board   
Resignations
Mr Gene Lapan resigned as Group Finance Director effective 28 February 2014. 
Appointments 
Mr Manley Diedloff assumed responsibility as Chief Financial Officer effective 1 March 2014 and serves in this capacity in 
addition to his role as Group Managing Director.  
Changes to the roles and responsibilities of directors
Mr Paul Botha resigned as a member of the audit committee effective 22 August 2013 in order to comply with King III 
requirements. 
Ms. Phumzile Langeni resigned as Chairman of the Remuneration Committee effective 22 August 2013.
Mr Paul Botha was appointed as Chairman of the Remuneration Committee effective 22 August 2013.

Significant changes in shareholding    
Per the relevant stock exchange news service announcements, accounts under the management of both Coronation Asset 
Management (Pty) Ltd and Regarding Capital Management (Pty) Ltd purchased shares from Royal Bafokeng (Pty) Ltd. On 
28 February 2014 these asset managers held 28.97% and 14.30% of Astrapak respectively.  
Dividend   
No ordinary 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. 
Holders of preference shares continue to receive dividends in the normal course.  

For and on behalf of the Board

Phumzile Langeni
Chairman

Robin Moore
Chief Executive

Manley Diedloff 
Chief Financial Officer

Denver
13 May 2014

      Summary consolidated statement of comprehensive income                                                                      
      (R‘000)                                                       Notes           %           Audited              Restated       
                                                                               change    financial year               Audited       
                                                                                                  ended        financial year       
                                                                                            28 February                 ended       
                                                                                                   2014           28 February       
                                                                                                                        20131       
      CONTINUING OPERATIONS                                                                                                         
      Revenue                                                           9         3,0         2 528 694             2 454 380       
      Cost of sales                                                                          (2 014 595)           (1 887 580)       
      Gross profit                                                               (9,3)          514 099               566 800       
      Distribution and selling costs                                                           (206 216)             (198 915)       
      Administrative and other expenses                                                        (305 705)             (301 923)       
      Other items of income and expenditure                                                      38 757                70 928       
      Profit from operations before exceptional items                           (70,1)           40 935               136 890       
      Exceptional items                                                10                       (51 132)              115 210       
      (Loss)/profit from operations                                    11      (104,0)          (10 197)              252 100       
      Investment income                                                                          16 020                 8 087       
      Finance costs                                                                             (48 759)              (44 346)       
      (Loss)/profit before taxation                                            (119,9)          (42 936)              215 841       
      Taxation benefit/(expense)                                                                 12 365               (44 863)       
      (Loss)/profit for the year from continuing operations                    (117,9)          (30 571)              170 978       
      DISCONTINUED OPERATIONS                                                                                                       
      Loss for the year from discontinued operations                   12       (29,9)          (28 346)              (21 829)       
      (Loss)/profit for the year                                               (139,5)          (58 917)              149 149       
      Other comprehensive (loss)/ income                                                        (14 734)              162 030       
      Total comprehensive (loss)/income for the year                                            (73 651)              311 179       
      Attributable to:                                                                                                              
      Ordinary shareholders of the parent                                      (133,7)          (96 393)              286 059       
       - (Loss)/profit for the period from continuing operations                                (53 313)              145 858       
      (Loss)/profit for the period from continuing operations 
      before exceptional items                                                                   (2 181)              30 648       
      Exceptional items                                                                         (51 132)              115 210       
       - Loss for the period from discontinued operations                                       (28 346)              (21 829)       
       - Revaluation of land and buildings (net of tax)                                         (14 734)              162 030       
      Preference shareholders of the parent                                                      11 362                11 369       
      Non-controlling interest                                                                   11 380                13 751       
      Total comprehensive (loss)/income for the year                                            (73 651)              311 179       
      (Loss)/earnings per ordinary share (cents)                       13     (165,98)            (67,5)                102,6       
       - continuing operations                                                 (136,5)            (44,1)                120,7       
       - discontinued operations                                                (29,3)            (23,4)                (18,1)       
      Fully diluted (loss)/earnings per ordinary share (cents)         13      (165,7)            (67,4)                102,6       
       - continuing operations                                                 (136,5)            (44,0)                120,7       
       - discontinued operations                                                (29,3)            (23,4)                (18,1)       
      Preference dividend paid and accrued                                                       11 362                11 369       
      Preference dividend per preference share (cents)                                           757,47                757,93       
      1  Restated for classification of Packaging Consultants as a 
      discontinued operation and prior year restatement. Refer to note 2.                                                                    


      Reconciliation of headline earnings                                                                                         
      (R‘000)                                                               Notes          %         Audited            Audited   
                                                                                      change       financial          financial   
                                                                                                  year ended         year ended   
                                                                                                 28 February        28 February   
                                                                                                        2014               2013   
      (Loss)/profit for the year attributable to ordinary shareholders              (165,8)          (81 659)           124 029   
      - continuing operations                                                                        (53 313)           145 858   
      - discontinued operations                                                                      (28 346)           (21 829)   
      Headline (loss)/earnings adjustments                                                                                        
      - Loss on exercise of options                                                                        -               265   
      - Reversal of insurance proceeds                                                                23 333                 -   
      - Impairment of property, plant and equipment                                                   40 532            153 263   
      - Profit on disposal of property, plant and equipment                                          (11 208)          (291 604)   
      - Total tax effect of adjustments                                                              (10 928)            26 913   
      - Total non-controlling interest share of adjustments                                                -              (765)   
      Headline (loss)/earnings attributable to ordinary shareholders                  (430,0)        (39 930)            12 101   
      - continuing operations                                                         (147,5)        (14 593)            30 701   
      - discontinued operations                                                        (36,2)        (25 337)           (18 600)   
      Headline (loss)/earnings per ordinary share (cents)                      13     (429,5)          (33,0)              10,0   
      - continuing operations                                                         (147,5)          (12,1)              25,4   
      - discontinued operations                                                        (36,0)          (20,9)             (15,4)   
      Fully diluted headline (loss)/earnings per ordinary share (cents)        13     (428,9)          (32,9)              10,0   
      - continuing operations                                                         (147,4)          (12,0)              25,4   
      - discontinued operations                                                        (35,7)          (20,9)             (15,4)   


      Summary consolidated statement of financial position                                                                                    
      (R‘000)                                     Notes         %           Audited              Restated          Restated   
                                                           change    financial year               Audited           Audited   
                                                                              ended        financial year    financial year   
                                                                        28 February                 ended             ended   
                                                                               2014           28 February       29 February   
                                                                                                     2013              2012   
      Assets                                                                                                                                    
      Non-current assets                                       2,0         1 446 435             1 417 871         1 401 392   
      Property, plant and equipment                    3                   1 225 125             1 214 221         1 192 606   
      Goodwill                                                               117 118               117 118           117 118   
      Deferred taxation assets                                                46 868                36 227            44 010   
      Investment and loans                             4                      57 324                50 305            47 658   
      Current assets                                         (23,8)          819 191             1 074 612           852 079   
      Inventories                                      5                     289 491               281 515           309 024   
      Accounts receivable                                                    460 211               752 894           515 277   
      Taxation receivable                                                      6 820                12 976            27 778   
      Cash and cash equivalents                        6                      62 669                27 227                 -   
      Assets classified as held-for-sale               7                      32 098                52 974             7 075   
      Total assets                                            (9,7)        2 297 724             2 545 457         2 260 546   
      Equity and liabilities                                                                                                  
      Total equity                                            (7,3)        1 214 748             1 309 914         1 009 431   
      Equity attributable to ordinary shareholders 
      of the parent                                                        1 014 517             1 104 233           814 239   
      Preference share capital and share premium                             142 590               142 590           142 590   
      Non-controlling interest                                                57 641                63 091            52 602   
      Non-current liabilities                                (19,0)          452 721               559 138           563 948   
      Long-term interest-bearing debt                                        260 901               332 243           382 140   
      Long-term financial liabilities                                            904                 5 441             4 937   
      Deferred taxation liabilities                                          190 916               221 454           176 871   
      Current liabilities                                     (3,7)          617 284               640 719           687 167   
      Trade and other payables                                               464 080               411 085           479 360   
      Shareholders for preference dividends                                    4 022                 5 041             4 420   
      Short-term interest-bearing debt                                       143 981               145 397           184 655   
      Taxation payable                                                         4 812                 7 530            15 602   
      Bank overdrafts                                  6                         389                71 666             3 130   
      Liabilities associated with assets held-for-sale 7                      12 971                35 686                 -   
      Total equity and liabilities                            (9,7)        2 297 724             2 545 457         2 260 546   


      Summary consolidated statement of changes in equity                                                                      
      (R‘000)                                                   Notes           Audited          Restated          Restated   
                                                                         financial year           Audited           Audited   
                                                                                  ended    financial year    financial year   
                                                                            28 February             ended             ended   
                                                                                   2014       28 February       29 February   
                                                                                                     2013              2012   
      Opening balance                                                         1 309 914         1 009 431         1 070 784   
      Comprising:                                                                                                             
      Ordinary share capital and premium                                        199 502           199 502           199 502   
      Retained income                                                           875 066           751 037           824 518   
      Capital reserve                                               8            20 523            18 757            16 707   
      Non-controlling put options                                                (5 441)           (4 937)           (1 671)   
      Revaluation reserve                                                       162 030                 -                 -   
      Treasury shares                                                          (147 447)         (150 120)         (150 733)   
      Equity attributable to ordinary shareholders of the parent              1 104 233           814 239           888 323   
      Preference share capital and premium                                      142 590           142 590           142 590   
      Non-controlling interest                                                   63 091            52 602            39 871   
      Movements:                                                                                                              
      (Loss)/profit for the year                                                (58 917)          149 149           (19 558)   
      Preference dividends paid                                                 (11 362)          (11 369)          (10 830)   
      Ordinary dividends paid to non-controlling interest                             -           (10 500)          (31 863)   
      Acquisition of non-controlling interest                                   (36 000)                -                 -   
      Contributions made by non-controlling interest                             (2 521)            7 238             1 501   
      Reduction in treasury shares due to exercise of options                         -             2 673               623   
      Incentive scheme reversals                                                      -                 -               (10)   
      Adjustment of fair value of put options                                     4 537              (504)           (3 266)   
      Capital gains taxation on disposal of revalued properties                  (5 319)                -                 -   
      Revaluation reserve                                                        13 959           162 030                 -   
      Share-based payment expense for the year                                      457             1 766             2 050   
      Closing balance                                                         1 214 748         1 309 914         1 009 431   
      Comprising:                                                                                                             
      Ordinary share capital and premium                                        199 502           199 502           199 502   
      Retained income                                                           795 090           875 066           751 037   
      Capital reserve                                               8            20 980            20 523            18 757   
      Non-controlling put options                                                  (904)           (5 441)           (4 937)   
      Revaluation reserve                                                       147 296           162 030                 -   
      Treasury shares                                                          (147 447)         (147 447)         (150 120)   
      Equity attributable to ordinary shareholders of the parent              1 014 517         1 104 233           814 239   
      Preference share capital and premium                                      142 590           142 590           142 590   
      Non-controlling interest                                                   57 641            63 091            52 602   
      Total equity                                                            1 214 748         1 309 914         1 009 431   


      Summary consolidated statement of cash flows                                                                              
      (R‘000)                                                                 Notes        %        Audited       Restated   
                                                                                      change      financial        Audited   
                                                                                                 year ended      financial   
                                                                                                28 February     year ended   
                                                                                                       2014    28 February   
                                                                                                                      2013   
      Cash generated from operations before working capital changes                    (81,9)        85 511        472 044   
      Increase/(decrease) in working capital                                                        338 887       (280 457)  
      Net interest and taxation paid                                                                (52 635)       (54 343)  
      Net cash inflow from activities before distributions to shareholders             170,9        371 763        137 244   
      Dividend distribution to all shareholders                                                     (12 381)       (21 248)  
      Net cash inflow from operating activities                                        209,8        359 382        115 996   
      Capital expenditure                                                                          (208 950)      (149 232)  
      Net movement of investments, subsidiaries and non-controlling interests                       (42 441)        13 036   
      Proceeds on disposal of property, plant and equipment                                          79 602         43 476   
      Net cash outflow from investing activities                                                   (171 789)       (92 720)  
      Net cash outflow from financing activities                                                    (80 874)       (64 585)  
      Net increase/(decrease) in cash and cash equivalents                                          106 719        (41 309)  
      Net cash and cash equivalents at the beginning of the year                                    (44 439)        (3 130)  
      Net cash and cash equivalents at the end of the year                        6    240,1         62 280        (44 439)  


      Summary consolidated segmental analysis                                                                                                       
      (R‘000)                                                    Rigids    Flexibles         Total         Dis-        Total       
                                                                                        continuing    continued        Group       
                                                                                        operations   operations                    
      Revenue for segment                             2014    2 041 318      676 922     2 718 240       99 425    2 817 665       
                                                      2013    1 758 274      902 707     2 660 981      192 270    2 853 251       
      Transactions with other operating segments 
      of the Group                                    2014     (153 161)     (36 385)     (189 546)      (7 759)    (197 305)       
                                                      2013     (142 789)     (63 812)     (206 601)     (10 767)    (217 368)       
      Revenue for external customers                  2014    1 888 157      640 537     2 528 694       91 666    2 620 360       
                                                      2013    1 615 485      838 895     2 454 380      181 503    2 635 883       
      Profit from operations before exceptional items 2014       61 585      (20 650)       40 935      (23 014)      17 921       
                                                      2013      113 837       23 053       136 890      (21 105)     115 785       
      Total assets                                    2014    1 617 357      680 367     2 297 724            -    2 297 724       
                                                      2013    1 532 045    1 013 412     2 545 457            -    2 545 457       
      Total liabilities                               2014      663 277      419 699     1 082 976            -    1 082 976       
                                                      2013      626 352      609 245     1 235 597            -    1 235 597       
      Capex                                           2014      174 106       34 844       208 950            -      208 950       
                                                      2013      118 556       30 676       149 232            -      149 232       
      Depreciation                                    2014       82 522       22 099       104 621        3 137      107 758       
                                                      2013       79 301       36 949       116 250        8 583      124 833       

      Supplementary information                                                                                                                      
                                                                                      Audited      Restated Audited   
                                                                               financial year        financial year   
                                                                                        ended                 ended   
                                                                                  28 February           28 February   
                                                                                         2014                  2013   
      Number of ordinary shares in issue ('000)                                       135 131               135 131   
      Weighted average number of ordinary shares in issue ('000)                      121 016               120 836   
      Fully diluted weighted average number of ordinary shares in issue ('000)        121 226               120 837   
      Number of preference shares in issue ('000)                                       1 500                 1 500   
      Net asset value per share (cents)                                                 956,2               1 031,8   
      Net tangible asset value per share (cents)                                          859                   935   
      Closing share price (cents)                                                         700                   725   
      Market capitalisation (R million)                                                945,92                979,70   
      Net interest-bearing debt as a percentage of equity (%)                            29,6                  41,9   
      Net debt                                                                        342 602               522 079   
       Long-term interest-bearing debt                                                260 901               332 243   
       Short-term interest-bearing debt                                               143 981               145 397   
      Cash and cash equivalent                                                        (62 669)              (27 227)   
      Bank overdraft                                                                      389                71 666   
      Interest cover (before exceptional items)                                           1,3                   3,8   
      Net working capital days                                                           41,2                  48,7   
      Contingent liabilities                                                            6 971                 7 635   
      Number of employees                                                               3 132                 3 975   
      - continuing operations                                                           3 132                 3 728   
      - discontinued operations                                                             -                   247   
      Earnings before interest, taxation, depreciation and amortisation 
      ("EBITDA") - continuing operations                                              145 556               253 140   
      Profit from operations (before exceptional items)                                40 935               136 890   
      Depreciation                                                                    104 621               116 250   

      Notes                                                                                                                              
      1.     Basis of preparation and accounting policies                                                                               
             These summary consolidated annual financial statements for the year ended 28 February 2014 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 Financial Pronouncements as issued by Financial Reporting Standards Council and the requirements of the Companies Act
             and the information required by IAS 34: Interim Financial Reporting. This provisional report was compiled under the supervision 
             of Manley Diedloff, Group Managing Director and Chief Financial Officer. 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. This provisional report is extracted from audited information, 
             but is not itself audited.  The directors take full responsibility for the preparation of the report and that the financial 
             information has been correctly extracted from the underlying financial statements. 
             The auditors, Deloitte & Touche, have issued an unmodified audit opinion on the complete consolidated and separate financial
             statements and a copy of that report is available for inspection at the Company's registered office.
           
             Standards and interpretations that were effective in the year were adopted. These did not have a significant impact in the
             financial statements.
                 
      2.     Comparative figures                                                                                           
             Discontinued operations                                                                                                
             The comparative figures have been restated due to the classification of Packaging Consultants (a division of Astrapak 
             Manufacturing Holdings (Proprietary) Limited) as a discontinued operation.                                             
             Prior period restatements                                                                                              
             Certain leases, which related to properties occupied by Group companies, has been reclassified from operational to 
             financial leases due to options to acquire issued to the holding company. Although the impact on the Statement of 
             Comprehensive Income is not material, the impact on the Statement of Financial Position and the Net Asset Value of the 
             Group is material as market value of these respective properties is in excess of the option exercise value, therefore 
             enhancing both the financial position and net asset value of the Group. The prior year financial statements have 
             accordingly been restated as follows to fully reflect the impact of this reclassification: 

             R’000                                                                  28 February   
                                                                                           2013   
                                                                                Impact of error   
             Impact on profit for the year                                                        
             Decrease in cost of sales                                                   12 009   
             Increase in administration and other operating expenses                     (1 597)   
             Increase in finance costs                                                   (8 953)   
             Increase in taxation                                                          (884)   
             Increase in profit for the year                                                575  
             Impact on other comprehensive income                                                 
             Increase in other comprehensive income                                      66 258   


                                                             28 February 2013                    28 February 2012                    
             R’000                                  Impact of error    As previously    Impact of error    As previously   
                                                                            reported                            reported   
             Statement of financial position impact                                                                        
             Property, plant and equipment                  109 500        1 104 721             52 437        1 140 169   
             Accounts receivable                              8 476          744 418             10 025          505 202   
             Assets classified as held-for-sale              22 800           30 174                  -            7 075   
             Retained income                                (10 609)         885 675            (11 184)         762 221   
             Revaluation reserve                             66 258           95 772                  -                -   
             Deferred taxation liabilities                   20 278          201 177              4 094          172 777   
             Long-term interest-bearing debt                 45 349          286 894             64 850          317 290   
             Short-term interest-bearing debt                 5 732          139 665              4 752          179 903   
             Liabilties associated with assets 
             held-for-sale                                   13 769           21 917                  -                -   
                         
                                                                           28 February 2013                    
             R’000                                                 Impact of error    As previously   
                                                                                           reported   
             Statement of cash flows impact                                                           
             Net cash inflow from operating activities                       4 739          111 257   
             Net cash outflow from investing activities                          -          (92 720)   
             Net cash outflow from financing activities                     (4 739)         (59 846)   
 
      3.       (R‘000)                                                                              Audited               Audited   
                                                                                             financial year        financial year   
                                                                                                      ended                 ended   
                                                                                                28 February           28 February   
                                                                                                       2014                  2013   
             Property, plant and equipment                                                                                                 
             Opening net carrying amount                                                          1 214 221             1 192 606   
             Additions                                                                              208 950               149 233   
             Classified as assets held-for-sale                                                      (2 300)              (45 756)   
             Revaluation of properties                                                               17 183               199 312   
             Disposals                                                                              (64 640)              (11 732)   
             Impairment                                                                             (40 531)             (144 608)   
             Depreciation                                                                          (107 758)             (124 833)   
             Closing net carrying amount                                                          1 225 125             1 214 221   
             Capital expenditure for the year                                                       208 950               149 232   
             Capital commitments                                                                                                    
             - contracted not spent                                                                  15 094                14 409   
             - authorised not contracted                                                              1 795                19 254   
      4.     Loans and investments                                                                                                  
             Vendor loan to Afripack Consumer Flexibles (Pty) Ltd in terms of Flexibles 
             disposal transaction                                                                    50 881                50 293   
             Vendor loan to Tadbik Pack SA ( Pty) Ltd on disposal of Alex White & Co-operation        6 431                     -   
             Unlisted investments                                                                        12                    12   
             Loans and investments at end of the year                                                57 324                50 305   
      5.     Inventories                                                                                                            
             Inventories amounting to R51 479 (2013: R38 300) are carried at net realisable value                                  
      6.     Cash and cash equivalents                                                                                             
             Cash and cash equivalents                                                               62 669                27 227   
             Bank overdrafts                                                                           (389)              (71 666)   
             Net cash and cash equivalents at the end of the year                                    62 280               (44 439)   
      7.     Assets held-for-sale and liabilities relating to assets held for sale                                                  
             Assets held-for-sale and liabilities held-for-sale relate to assets and 
             liabilities of Astrapak Property Holdings Proprietary Limited                        
             Assets held-for-sale/sold consists of the following:                                                                   
             Opening balance as at the beginning of the year                                         52 974                 7 075   
             Inventory                                                                                    -                10 069   
             Trade and other receivables                                                                  -                 2 720   
             Cash and cash equivalents                                                                    -                     9   
             Assets previously held-for-sale disposed of                                            (23 176)               (4 000)   
             Impairment of plant and equipment previously classified as held-for sale                     -                (8 655)   
             Property, plant and equipment classified as held-for sale                                2 300                45 756   
             Assets held-for-sale at the end of the year                                             32 098                52 974   
             Liabilities relating to assets held-for-sale/sold consists of the following:                                            
             Opening balance as at the beginning of the year                                         35 686                     -   
             Long-term loans                                                                         12 971                21 882   
             Trade creditors                                                                              -                10 807   
             Bank overdrafts                                                                              -                 2 997   
             Liabilities previously classified as held-for-sale disposed or transferred             (21 882)                         
             Liabilities previously classified as held-for-sale settled                             (13 804)                    -   
             Liabilities relating to assets held-for-sale at the end of the year                     12 971                35 686   
      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 R0,45 million (2013: R1,8 million)                             
      9.     Revenue                                                                                                                
             Revenue for the Group                                                                2 718 240             2 660 981   
             Transactions with other entities within the Group                                     (189 546)             (206 601)   
             Revenue for external customers                                                       2 528 694             2 454 380   
             Volume (in '000 tons)                                                                   72 954                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                                            (27 799)              (92 342)   
             Exceptional items                                                                      (51 132)              115 210   
      11.    Profit from operations                                                                                                 
             Profit from operations for continuing operations are arrived at after taking the 
             following into account:                                                             
             Net profit on disposal of property, plant and equipment                                  2 655                27 615   
             Depreciation                                                                           104 621               116 250   
             IFRS 2 share-based payment expenses                                                        457                 1 766   
      12.    Loss for the year 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                                                                                 91 666               181 503   
             Cost of sales                                                                         (111 002)             (180 520)   
             Gross (loss)/profit                                                                    (19 336)                  983
             Other income                                                                             9 085                     -   
             Distribution and selling costs                                                          (6 630)              (13 708)   
             Administrative and other operating expenses                                             (6 133)               (8 380)   
             Loss from operations before exceptional items from discontinued operations             (23 014)              (21 105)   
             Exceptional items - impairment                                                         (12 732)               (5 614)   
             Loss from operation from discontinued operations                                       (35 746)              (26 719)   
             Investment income                                                                          519                    25   
             Finance costs                                                                           (5 579)               (4 008)   
             Loss before taxation from discontinued operations                                      (40 806)              (30 702)   
             Taxation                                                                                12 460                 8 873   
             Loss for the period from discontinued operations                                       (28 346)              (21 829)   
             The net cash flows incurred by discontinued operations for the period               
             are represented below:                                                              
             Operating cash inflow                                                                    5 575                 7 941   
             Investing cash inflow                                                                   63 544                11 413   
             Financing cash outflow                                                                 (75 463)              (17 113)   
             Net (decrease)/increase in cash and cash equivalents from discontinued operations       (6 344)                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 fact or circumstance material to the appreciation of this report has occurred between 
             28 February 2014 and the date of this report.                                                                              

For more information on our business please go to: www.astrapak.co.za

Board of Directors: P Langeni* (Chair), R Moore (Chief Executive Officer), M Diedloff (Group Managing Director and
Chief Financial Officer), P C Botha*, C McDougall*, G Z Steffens*, G P Duda* *Non-executive
Company Secretary: S Ngwabi
Registered Office: 5 Kruger Street, Denver, 2094, 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, 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
Date: 14/05/2014 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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