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Condensed Audited Consolidated Results for the six months ended 31 December 2014
Bowler Metcalf Limited
REG NO : 1972/005921/06 ALPHA CODE : BCF ISIN CODE : ZAE000030797
CONDENSED UNAUDITED CONSOLIDATED RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2014
R mil R mil % R mil
31-12-14 31-12-13 Change 30-06-14
STATEMENT OF FINANCIAL POSITION STATEMENT OF CHANGES IN EQUITY (R mil)
Non-current Assets 149.8 208.6 196.6 Share Non-
Property, plant & equipment 133.0 176.9 173.0 Share Retained Treasury Based controlling Total
Deferred tax 0.9 6.3 7.7 Capital Earnings Shares Payments Interests Equity
Intangible assets 15.9 15.9 15.9
Loan - 9.5 - 30 Jun 13 21.5 436.9 (35.0) 1.0 - 424.4
Investments - - - Comprehen-
Current Assets 241.0 336.5 356.9 sive Income - 29.9 - - - 29.9
Inventories 59.4 86.5 100.2 Dividends (13.0) (13.0)
Trade and other receivables 63.7 135.9 95.1 Disposals 3.0 3.0
Prepayments 3.9 11.4 24.2 ------------ ------------- --------------- --------------- --------------- ---------------
Cash and cash equivalents 114.0 49.6 126.2 31 Dec 13 21.5 453.8 (32.0) 1.0 - 444.3
Other financial assets - 51.3 - Comprehen-
Loan - - 9.5 sive Income 30.3 30.3
Taxation - 1.8 1.7 Dividends (15.20) (15.2)
Disposals 0.40 0.4
Assets of disposal group held for sale 187.0 - - Other 0.70 - (0.60) 0.1
-------------------- --------------- --------------- ------------ -------------- --------------- --------------- --------------- ---------------
Total Assets 577.8 545.1 +6 553.5 30 Jun 14 21.5 469.6 (31.6) 0.4 - 459.9
Comprehen-
sive Income - 33.1 - - - 33.1
Total Equity 479.2 444.3 +8 459.9 Dividends (13.7) (13.7)
Other - (0.1) (0.1)
Non-current liabilities 13.1 25.7 15.0 -------------- ---------------- ------------ ------------- ---------------- ---------------
Deferred Tax 13.1 11.8 13.2 31 Dec 14 21.5 489.0 (31.6) 0.3 - 479.2
Borrowings - 13.9 1.8
Current Liabilities 31.3 75.1 78.6
Trade and other payables 28.7 66.7 62.4 R mil * R mil %
Bank overdrafts - - - STATEMENT OF CASH FLOWS 31-12-14 31-12-13 Change
Borrowings 1.1 7.0 13.8
Taxation 1.5 1.4 2.4 Operating Activities 14.9 (9.3)
Profit before tax 46.4 41.0
Liabilities of disposal group held for sale 54.2 - - Non-cash items 15.7 17.9
-------------------- --------------- --------------- Working capital changes (19.8) (41.0)
Total Equity & Liabilities 577.8 545.1 553.5 Taxation paid (13.7) (14.2)
Dividends paid (13.7) (13.0)
Prepayments are comprised of:
- advance payments - capital 2.1 10.5 20.6 Investing Activities (23.9) (15.8)
- advance payments - expenses 1.8 0.8 3.6 Property plant and equipment (23.9) (14.5)
Loans - -
R mil * R mil % Transfer from/(to) income funds - (1.3)
STATEMENT OF COMPREHENSIVE INCOME 31-12-14 31-12-13 Change Disposal of investment - -
Continuing operations Financing Activities (3.5) 0.4
Revenue 240.8 211.0 + 14 Borrowings (3.5) (2.6)
Other income 1.5 1.6 Acquisition - minority interest - -
Operating costs (140.2) (112.8) Treasury shares - acquisitions - -
Depreciation (10.3) (11.7) Treasury shares - disposals - 3.0
Rent & property finance (1.0) (1.0) --------------- ---------------
Staffing costs (53.4) (53.2) Net Cash Flow (12.5) (24.7)
--------------- -------------- Opening balance 126.2 74.3
Profit from operations 37.4 33.9 + 10 --------------- ---------------
Net finance income 6.0 4.4 Closing balance 113.7 49.6
- income 6.0 4.6
- costs - (0.2) Comprising:
--------------- -------------- Cash & cash equivalents 114.7 49.6
Net profit before tax 43.4 38.3 + 13 Bank Overdrafts (1.0) -
Income tax expense (12.5) (10.1)
--------------- -------------- Net cash flows from
Profit for the period from continuing discontinued operations
operations 30.9 28.2 + 10 Operating Activities (19.5) 14.7
Discontinued operations Investing Activities 1.3 5.3
Profit for the period from discontinued Financing Activities 9.5 -7.6
operations # 2.2 1.7 --------------- ---------------
--------------- -------------- (8.7) 12.4
Attributable to equity holders of parent 33.1 29.9 + 11
# Profit for the period from
Earnings & diluted earnings per share (c) discontinued operations
- Continuing operations 37.48 34.16 Revenue 240.4 213.8 + 12
- Discontinued operations 2.67 2.06 Other income 0.1 2.4
--------------- -------------- Expenses -237.5 -213.5
40.24 36.22 + 11 --------------- ---------------
Pre-tax profit 3.0 2.7
HEADLINE EARNINGS Income tax expense (0.8) (1.00)
Earnings attributable to parent 33.10 29.90 --------------- ---------------
Profit on disposal of plant & equipment 0.10 - Profit for the period 2.2 1.7 + 29
- profit 0.20 -
- tax and outside interests (0.10) - ADDITIONAL INFORMATION
--------------- -------------- Dividend/share paid (c) 16.60 15.80 +5
33.20 29.90 + 11 Ordinary dividend proposed (c) 18.40 18.40 +0
Dividend cover (times) 2.19 1.97
Basic & diluted headline earnings (c) Weighted shares in issue (mil) 82.45 82.37
Earnings per share (c) 40.24 36.22 Capital commitments (Rmil) 20.50 11.50
Disposal of plant and equipment (c) 0.14 - Current ratio 7.70 4.48
--------------- -------------- Return on equity (%) 13.81 13.46
Closing share price (cents) 840 740
- Continuing operations 37.72 34.16 *
- Discontinued operations 2.67 2.06 Restatement due to the requirements of IFRS 5, with specific reference to
discontinued operations and disposal groups held for re-sale.
Plastic Discontinued Un-
SEGMENTAL ANALYSIS Packaging Beverages Property allocated Total
Revenue Although the Gauteng operation has shown some good growth of 12%, margins remained
Jul-Dec 13 152.9 213.8 0.1 - 366.8 significantly below that of the Western Cape, while the costs from the low economies of
- total revenue 208.9 213.8 9.9 - 432.6 scale have had a significant negative impact on the overall Beverages’ performance. Due
- intersegment (56.0) - (9.8) - (65.8) to the pending SoftBev strategy, the approach on Gauteng remained unchanged in this
Jan-Jun 14 150.4 209.0 0.1 - 359.5 period.
- total revenue 210.4 209.0 10.0 - 429.4
- intersegment (60.0) - (9.9) - (69.9) Beverages Disposal
Jul-Dec 14 178.4 240.4 0.1 - 418. Further to the detailed cautionary issued on 26th September 2014, the complex
- total revenue 238.7 240.4 10.1 - 489.2 restructuring of the Bowler Group through the disposal of the beverages segment in return
- intersegment (60.3) - (10.0) - (70.3) of a strategic shareholding in a larger beverages group ("SoftBev"), has progressed
========= =========== ========= ======== ========= towards finality. The unconditional approval by the Competitions Commission and
Operating Profit completion of all the definitive legal agreements have paved the way for the final JSE
Jul-Dec 13 26.4 4.5 7.5 - 38.4 submission of the Circular for shareholders approval to be obtained at a general meeting
envisaged to be held at the end of April 2015.
Jan-Jun 14 21.3 4.3 7.3 4.0 36.9
Jul-Dec 14 30.0 4.8 7.6 (0.1) 42.3 Judging from the overwhelming support from customers for a strong, nationally
========= =========== ========= ======== ========= represented carbonated beverages company, the South African landscape in this industry
Attributable Profit is set to change significantly.
Jul-Dec 13 23.1 1.7 5.3 (0.2) 29.9 The synergies and endorsements have opened opportunities requiring focussed and
Jan-Jun 14 18.2 2.9 5.4 3.8 30.3 experienced business minds to explore. With the structuring of SoftBev the wheels have
Jul-Dec 14 25.6 2.2 5.4 (0.1) 33.1 been put well into motion.
========= =========== ========= ======== ========= The beverages disposal has been accounted for as a discontinued operation.
Total Assets
31 Dec 13 372.2 188.4 100.2 (115.7) 545.1
- total assets 299.4 188.4 41.4 15.9 545.1 BASIS OF PREPARATION
- intersegment 72.8 - 58.8 (131.6) -
30 Jun 14 398.9 148.2 104.1 (97.7) 553.5
The condensed unaudited consolidated results have been prepared in accordance with the
framework concepts and the measurement and recognition requirements of the
- total assets 349.0 148.2 40.4 15.9 553.5
International Financial Reporting Standards, containing information required by the IAS 34
- intersegment 49.9 - 63.7 (113.6) - Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the
Jul-Dec 14 388.8 187.0 107.9 (105.9) 577.8 Accounting Practices Committee and in the manner required by the Companies Act and
- total assets 356.8 187.0 38.7 (4.7) 577.8 the Johannesburg Stock Exchange Listings Requirements.
- intersegment 32.0 - 69.2 (101.2) -
========= =========== ========= ======== =========
This condensed report has been prepared using the same accounting policies and
Capital Expenditure
methods of computation as used in the most recently issued annual financial statements,
Jul-Dec 13 9.0 5.4 0.1 14.5 which should be read in conjunction with this condensed report.
Jan-Jun 14 9.5 4.9 0.1 14.5
Jul-Dec 14 22.2 1.3 0.4 23.9 Comparative figures in the statement of comprehensive income have been restated in line
========= =========== ========= ======== ========= with the requirements of IFRS 5, with specific reference to discontinued operations and
disposal groups held for re-sale.
CEO'S COMMENTARY
CHANGES TO THE BOARD
In a disturbed period characterised by industry wide labour unrests, forex uncertainties, raw materials
There were no changes to the Board during the period.
peak pricing and load shedding, the Group has produced a very pleasing 14% revenue growth on the
previous comparative period. Equally gratifying, this growth has reflected in the earnings increase of 13%
and 11% in HEPS. Overall the operational costs showed a marginal increase which was offset by the TREASURY SHARES
economies of scale in both businesses. There were no disposals of treasury shares during the period.
As the strategies of both the plastics packaging and beverages business’s require significant capital CASH DIVIDEND DECLARATION
commitments, the directors have left the interim dividend unchanged.
An interim gross cash dividend of 18.4 cents per share ("cps") (2013: 18.4 cps) has been
declared for the six months ended 31 December 2014 and is payable to shareholders on
Plastic Packaging
Tuesday, 28 April 2015. The last day to trade will be Friday, 17 April 2015. "Ex" dividend
Activity levels have been consistently high for the six months. The focussed teams have successfully trading begins on Monday, 20 April 2015 and the record date will be Friday, 24 April 2015.
managed external pressures to contain operational costs while maintaining customary high service levels. Share certificates may not be dematerialised or re-materialised between Monday, 20 April
The impact of unrelenting peak raw material costs, while lagging considerably behind the oil and 2015 and Friday, 24 April 2015, both days inclusive. Directors confirm that the solvency
exchange rate improvements, have been contained through the focus on high value added business and and liquidity test is satisfied at the date of this report.
good manufacturing disciplines. These costs have softened in the next period, providing relief for both
converter and customers. This dividend will be made from income reserves. The gross dividend is 18.4 cps.
Dividend Withholding Tax (DWT) is 15%. There are no Secondary Tax on Companies
(STC) credits available for set off against the DWT. The net local cash dividend to
Two significant projects were successfully industrialised in this period, while others have shifted into the shareholders liable for DWT will therefore be 15.640 cps.
second half of the year. The relevance of a business model such as Bowler’s has been reconfirmed by the
high activity levels experienced on the projects front of the business. Current capital expenditure
commitments are R20.5 mil. The business is progressing well in its restructuring to prepare for the The number of shares in issue at the date of declaration is 88 428 066 shares.
changes in its customer profile from 2016.
Unless otherwise requested in writing, individual dividend cheques of less than R50 will
not be paid but retained in the company's unclaimed dividend account. Accumulated
Beverages unpaid dividends in excess of R200 may be claimed in writing from the Transfer
Secretaries.
Quality Beverages continued its brand focus with an aggressive volume growth of 12% in the Western
Cape off a strong base. Margin pressures remain tough as various competitors have explored B.J. FROST (Non-Exec Chairman)
unsustainable tactics to derail this progress. Top and bottom end growth have been equally solid. P.F. SASS (Chief Executive Officer)
Cape Town, 31 March 2015 Prepared by: L.V. Rowles CA(SA)
REGISTERED AUDITOR SPONSORS TRANSFER SECRETARIES COMPANY TAX NUMBER
Mazars - Partner Jaco Cronje - Registered Auditor Arbor Capital Sponsors (Pty) Ltd Computershare Investor Services (Pty) Ltd 9775130710
Mazars House, Rialto Road, Ground Floor, One Health Building P.O. Box 61051, Marshalltown, 2107
Grand Moorings Precinct, Century City, 7441 54 Maxwell Drive, Woodmead, 2157
Date: 31/03/2015 04:34:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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