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Unaudited condensed interim consolidated results of the group for the six months ended 31 March 2015
WINHOLD LIMITED
(Registration number 1945/019679/06)
Incorporated in the Republic of South Africa
Share code: WNH ISIN number: ZAE000033916
Statement of results
Unaudited condensed interim consolidated results of the group for the six
months ended 31 March 2015
Condensed Consolidated Statement Of Comprehensive Income
Six
months Six Six
12 months ended months Months
ended 31 ended ended 31
30 September March 30 March
2014 2015 Sept.2014 2014
R'000 R'000 R'000 R'000
1 099 159 External Revenue 622 789 574 375 524 784
21 408 Operating profit 18 355 10 864 10 544
7 727 Investment income 2 101 4 043 3 684
(13 075) Net finance costs (5 177) (4 635) (8 440)
16 060 Profit before taxation 15 279 10 272 5 788
(4 207) Taxation (4 283) (3 592) (615)
548 Share of associates PAT 274 302 246
12 401 Profit for the period 11 270 6 982 5 419
Actuarial re-measurement
(641) Pension Fund - (641) -
Total comprehensive income
11 760 for the period 11 270 6 341 5 419
Attributable to non-
(1 953) controlling interests 1 638 (1 843) (110)
Attributable to equity
13 713 holders of the parent 9 632 8 184 5 529
Earnings and diluted
earnings per ordinary
11,44 share (cents) 7,61 7,03 4,41
Headline and diluted
earnings per ordinary
10,97 share ( cents ) 7,66 6,60 4,37
Weighted average ordinary
shares adjusted for
125 506 treasury stock (000’s) 125 506 125 506 125 506
Total Ordinary shares
126 215 issued (000's ) 126 215 126 215 126 215
Total depreciation and
12 616 amortisation 7 642 5 909 7 638
34 024 EBITDA 25 997 16 773 18 182
Reconciliation of headline
earnings
- Comprehensive Income
13 713 for the period 9 632 8 184 5 529
- Other comprehensive
641 income - 641 -
Profit on disposal of
(762) fixed assets (19) (701) (61)
Taxation effects of the
182 above 5 165 17
13 774 Total Headline earnings 9 618 8 289 5 485
Condensed Consolidated Statement of Financial Position
Six Six Six
12 months months months Months
ended ended ended ended 31
30 September 31 30 Sept. March
2014 March 2014 2014
2015
R'000 R'000 R'000 R'000
ASSETS
136 252 Fixed Assets 136 195 136 252 136 119
63 338 Unlisted investments 2 973 63 338 36 961
19 541 Goodwill 19 541 19 541 19 541
12 575 - (Net) Deferred taxation 12 113 12 575 12 110
370 662 Current assets 391 097 370 662 380 194
139 493 - inventory 150 540 139 493 165 707
186 325 - receivables 198 214 186 325 163 779
28 664 - unlisted investments 35 597 28 664 48 499
16 180 - bank and cash 6 746 16 180 2 209
602 368 Total assets 557 919 602 368 584 925
EQUITY AND LIABILITIES
Ordinary share capital and
122 793 premium 122 793 122 793 122 793
146 660 Retained earnings 156 292 146 660 138 476
Equity attributable to
269 453 owners of the parent 279 085 269 453 261 269
4 882 Non-controlling interests 6 520 4 882 6 726
274 335 Total Equity 285 605 274 335 267 995
Non-current liabilities
55 819 - interest bearing 26 293 55 819 56 997
3 076 - interest free - 3 076 -
269 138 Current liabilities 246 021 269 138 259 933
interest bearing
423 - bank overdraft 3 423 37 986
57 131 - short term borrowings 37 783 57 131 57 304
Liabilities of disposal
- group - - -
interest free
211 584 - payables and provisions 208 235 211 584 164 643
602 368 Total Equity and Liabilities 557 919 602 368 584 925
Supporting information
Capital Commitments at
- period end 3 216 - 2 515
Capital expenditure during
21 754 the period 3 627 5 049 16 705
113 373 Interest bearing borrowings 64 079 113 373 152 287
92 002 Interest earning deposits 38 570 92 002 85 460
Net asset value per ordinary
214.7 share ( cents ) 222.4 214.7 208.2
19 541 Total intangible assets 19 541 19 541 19 541
Tangible net asset value per
199.1 share( cents ) 206.80 199.12 192.60
5.1 Return on Equity (%) 6.9 6.2 4.2
1.9 Return on Assets (%) 3.9 2.0 1.8
Condensed consolidated statements of changes in equity
Six Six Six
months months Months
Year ended ended ended ended 31
30 September 31 30 Sept. March
2014 March 2014 2014
2015
R'000 R'000 R'000 R'000
Equity attributable to
holders of the parent
255 740 - Opening balance 269 453 261 269 255 740
- Total comprehensive
13 713 income for the period 9 632 8 814 5 529
Balance at the end of the
269 453 year 279 085 269 453 261 269
Condensed Consolidated Statements of Cash Flows
Six Six
Six months Months
Year ended months ended ended 31
30 September ended 31 30 Sept. March
2014 March 2014 2014
2015
R'000 R'000 R'000 R'000
Cash flow from operating
44 336 activities (7 708) 63 667 (19 331)
Profit before interest,
41 892 tax and non-cash items 28 037 20 087 21 805
19 677 Changes in working capital (26 539) 51 658 (31 981)
(13 075) Net finance costs (5 177) (4 635) (8 440)
246 Dividends from associates 0 246 0
(4 404) Taxation paid (4 029) (3 689) (715)
Cash flow from investing
(635) activities 56 841 (13 776) 13 141
Net Investment in fixed
(21 436) assets (3 524) (4 834) (16 602)
Redemption unlisted
20 801 investments 60 365 (8 942) 29 743
Cash flow from financing
(33 562) activities (21 292) 1 644 (35 206)
Interest bearing
0 borrowings raised 12 305 (12 305) 12 305
Interest bearing
(33 562) borrowings repaid (33 597) 13 949 (47 511)
Net increase/(decrease) in
10 139 cash 27 841 51 535 (41 396)
Condensed Consolidated Statement of 6 Monthly Segment Results
Flexible Packaging Flexible Construction Trading
First Half First Half
First Half 2015 First Half 2014 First Half 2015 2014 2015 First Half 2014
R’000 R’000 R’000 R’000 R’000 R’000
Revenue external 170 439 159 269 170 380 109 898 281 971 255 517
Revenue Inter Segment 81 874 73 255 43 258 35 533 8 572 7 027
Depreciation 4 250 4 526 2 357 2 040 907 900
Profit before Tax (5 593) (1 641) 11 572 3 758 8 956 7 123
Capital Expenditure 587 9 774 1 578 6 188 1 154 650
Total Assets 224 268 223 528 193 265 121 413 162 330 189 987
Total Liabilities 105 921 124 542 142 051 72 791 105 480 127 750
GROUP PROFILE
Winhold Limited (“Winhold”) is a holding company with its main
investments being 74,9% investments in Gundle and Inmins.
Gundle comprises two plastics manufacturing and distribution
operations in Gauteng and one in Swaziland, a dam lining operation
as well as five distribution centres in the main coastal cities,
Lowveld and Bloemfontein. Gundle manufactures a wide range of
polyethylene and polypropylene bags, construction sheeting,
consumer and industrial packaging, agricultural film and dam
linings and distributes to the agricultural, chemical,
construction, food processing, industrial and consumer markets.
Inmins comprises 17 strategically located trading operations
throughout South Africa servicing the mining and industrial
sectors with a wide range of consumable and maintenance products,
and includes divisions specialising in hose, chain and sprocket
systems and conveyor belting.
COMMENTARY
Revenue increased by 8% and earnings and headline earnings by 73%
and 75% respectively on improved results from both Gundle and
Inmins.
Review of operations
Gundle
Revenue increased by R80,8m (21%) on the back of a substantial
increase in sales by the Gundle dam lining division. Group
production volumes increased by 8% assisted by the improved
availability of recycled raw material. Margins improved
slightly. Despite the flexible packaging division still
struggling, Gundle’s profit before tax increased to R8,2m from a
loss of R0,5m. The revenue of the trading division also improved
by 8%, resulting in a 30% increase in the pre-tax profit.
The investigation into the suspected fraud at Germiston, which
was previously reported on, was concluded and the appropriate
disciplinary actions were taken.
Inmins
Inmins mining returned to profitability after the end of the
platinum strikes despite trading volumes still being below pre-
2014 levels. This, together with a reduction of expenses, led to
the turnaround of this division. The drive to introduce more
products to trade continues and a few opportunities are being
investigated.
The Industrial Division is still under pressure with all of the
branches experiencing subdued demand, making it difficult to
maintain volume and margins.
Revenue increased by 7,3% and profit before tax by R2,5m.
Repi Colourants
The business recorded a lower profit for the first six months,
but has secured good orders for the second half of the year.
Prospects
Gundle
Turnaround strategies are underway in the flexible manufacturing
division and management changes should be completed by the end
of the financial year. The construction and dam lining divisions
are expected to continue doing well for the rest of the year
after securing some good orders.
Inmins
The mining and Industrial markets are tough and are expected to
remain so for the rest of the year.
BASIS OF PREPARATION AND ASSURANCE
These condensed consolidated preliminary Group interim financial
statements for the six months ended 31 March 2015 have been
prepared in accordance with the International Financial Reporting
Standards (“IFRS”) Interim Financial Reporting Standard (“IAS
34”), the SAICA Financial Reporting Guidelines as issued by the
Accounting Practices Committee and Financial Pronouncements as
issued by the Financial Reporting Standards Council, in compliance
with the Companies Act, as amended, and the Listings Requirements
of the Johannesburg Stock Exchange Limited (“the Listings
Requirements”). The accounting policies are consistent with those
used in the prior year. The preparation of the financial
statements has been supervised by the CEO, Mr W Fourie CA (SA).
These interim financial statements have not been audited or
reviewed by the group’s auditors. The results for the year ended
30 September 2014 were audited and the auditor’s unqualified audit
report is included in the Annual Financial statements distributed
to Shareholders’ in December 2014.
CORPORATE GOVERNANCE
The Group subscribes to the highest value of good corporate
governance and is committed to continued implementation of the
recommendations of the King III Report. The Group continues to
endeavour to conduct its business in accordance with the
principles of accountability, transparency, integrity and
fairness. The Consolidated interim financial statements are the
responsibility of the directors. The directors take full
responsibility for the preparation of these statements.
DIRECTORATE
Ms N P Mnxasana resigned as a director on 27 February 2015. The
company is in the process of finding a suitable replacement for
her. There were no other changes to the board during the six
months ended 31 March 2015.
DIVIDENDS
In line with past practice, no interim dividend has been declared.
For and on behalf of the board
WAR WENTELER W FOURIE
Chairman Chief Executive Officer
Date: 1 June 2015
Winhold Limited (Share code: WNH, ISIN ZAE000033916) Registration
number 1945/019679/06 Incorporated in the Republic of South
Africa, 884 Linton Jones Street, Industries east, Germiston.
Tel: +2711 345 9800.
Directors: W A R Wenteler (Chairman) ‡, W Fourie, R Naidoo †‡,
P. Nash‡, G M Scrutton (Financial) (‡non-executive),
(†independent) Company Secretary: G J O’Connor (johnoc@winhold.co.za) Fax: +2711 345 9881
Sponsor: Arbor Capital Sponsors Proprietary Limited
Date: 01/06/2015 05:02:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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