To view the PDF file, sign up for a MySharenet subscription.

BOWLER METCALF LIMITED - Condensed Audited Consolidated Results for the six months ended 31 December 2014

Release Date: 31/03/2015 16:34
Code(s): BCF     PDF:  
Wrap Text
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'). 
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.

Share This Story