Wrap Text
Summarised unaudited interim results for the six months ended 31 August 2015
Astrapak
(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”)
Summarised unaudited interim results for the six months ended 31 August 2015
Charting a new course
COMMENTARY
Key financial features of the period
• Continued improvement in selling prices per kilogram as mix favours higher value business
• Net cash inflow of R125 million from sale of non-core assets on which fair value has been realised
• Group net debt to equity improves to 6,2% from 30%
• 89% increase in cash generated by operating activities
• EBITDA margin improves to 8,9% from 8,1% in continuing operations
• Net working capital cycle of 30 days
• Profit per share of 16,6 cents compared to a loss of 43,2 cents
• Headline loss per share of 6,5 cents compared with a loss of 33,1 cents
• Continued operations absorbs certain costs of discontinued operations until date of transfer or closure
• A strengthened platform for a smaller group servicing relatively defensive packaging categories
Trading review
The year ended 28 February 2015 concluded the turnaround phase of Astrapak and we are now firmly focused
on finalising the exit from non-core businesses, removing expenses deliberately incurred to facilitate this recovery and
steadily bringing our operations up to internationally benchmarked returns. In recent months the trading
environment has deteriorated and has remained tough during the six-month period, which makes the timeliness of the business
reengineering initiatives that much more appropriate.
The results continue to reflect both continuing and discontinued operations, these being operations that the Board has
classified as assets that no longer form part of the future of the Group or as assets held-for-sale. This process of
closure, disposal and consolidation of the core asset base is proceeding to plan with further cash proceeds being realised
during the period. As previously advised, the extensive business reengineering process would continue to affect the
results through the current financial year. While the losses and operating costs of discontinued operations have been
reduced, they continue to be shouldered until such time as they are transferred to new beneficial owners. Results from
continuing operations in isolation are disproportionately depressed because of this.
The Group announced to shareholders during the period that East Rand Plastics was sold with effect from 31 July for a
total purchase price of R96,0 million, Cinqpet was sold with effect from 1 July 2015 for a total purchase price of R41,7 million
and Knilam is to be sold for approximately R17,0 million with an anticipated effective date of 1 November 2015. All these sales
realised good value and speak to the intrinsic value of our core remaining operations. Other non-core disposals, including surplus
property, are currently progressing to plan.
Improved cash flow from operations, a decrease in cash applied to working capital, reduced capital expenditure and the
benefit of cash inflows on disposals have enabled the Group to record considerably reduced gearing. Net working capital
days continued to improve. This is a very strong financial platform off which to secure the medium-term return
objectives we have previously shared with our stakeholders.
The Group concluded the reporting period with an improved gross profit (“GP”) and earnings before interest, tax,
depreciation and amortisation (“EBITDA”) on a continuing basis. Our GP percentage on continuing operations increased to 22,7%
from 21,1%, while our EBITDA percentage margin on continuing operations increased to 8,9% from 8,1%.
Continuing turnover decreased by 6,2% to R637,6 million as part of our strategy to exit either non-core or sub-optimal
markets in pursuit of higher value business. Turnover of R32,5 million associated with the businesses of Hilfort
Plastics Bloemfontein and Upington is reflected in the comparative number, with these businesses disposed of in the second
half of the prior financial year - allowing for this, continuing turnover showed a decrease of 1,5%.
Selling prices per kilogram improved further, up 4,5% for the period, as the mix shifts in favour of higher value
business. The average selling price was R45,67 per kilogram during the period compared with R43,70 per kilogram. Pricing and
procurement coordination and demand forecasting is a focal point and continues to yield benefits. On the whole, this
was a relatively stable period for raw material and product pricing.
Tonnage of polymer converted in our continuing operations for the period decreased by 5,8% to 13 962 tons compared with
only 14,816 tons. Business is split approximately 60/40 between our moulding and thermoforming
technologies, which both experienced increased average selling prices per kilogram converted, lower sales in Rand and lower
volume of polymer converted. While there are mix benefits, loadings were lower than they could have been as we prepared for
the take-on of new work that is now commencing in the second half. In addition, economic difficulties in oil-dependent
Angola, to which the Group has an indirect export relationship through the manufacture of UHT yoghurt cups, resulted in
significantly lower volumes to that market.
Dollar-based global oil prices have been especially volatile over the past year with a weakening bias. This has a
direct influence on the polymer market. During the six months, the Rand averaged R12,28 to the US Dollar versus R10,61 in
the same period last year and R11,30 during the second six months of the previous financial year. Timing of pricing
arrangements are a feature but there was a broadly neutral effect on margin in this period compared with a base which had
higher polymer prices. Over the course of a cycle, raw material movements should be broadly neutral as raw material price
rises or reductions are largely passed through to customers, as determined by market-relevant factors and contractual
price adjustment mechanisms.
Astrapak has recently commenced a significant new multi-year supply agreement with a large multinational FMCG
customer with full volumes to flow once capacity has been installed. Additional multi-year contracts are in place with
well-known local and international FMCG customer all of whom feature within our top six customers.
Astrapak has experienced delays on a strategically important multi-year contract with a major international customer
in the personal care market as a result of design changes and technically demanding specifications. It has taken time to
finalise and gain requisite approvals. In preparation, Astrapak made available factory capacity in the Eastern Cape and
at one of its KwaZulu-Natal operations and has absorbed costs. With the reasons for these delays now addressed, the
benefits from this contract will be seen in the second half.
The discontinuation of our Bronkhorstspruit plant is going to plan, with business reallocated in the Group wherever possible.
The adjacent deodorant ball factory will be consolidated at the JJ Precision site before the end of the financial year.
Our capital expenditure is therefore being strategically targeted. There are currently five major capex projects under
way that align with our customer focus. This includes power supply upgrades for reliability, new state-of-the-art
equipment, civils and other building work on factory renovation, and relocation of existing equipment to optimise production
on fewer sites and improve workflow and storage.
These initiatives fit squarely with the strategic purpose of reengineering Astrapak to be a streamlined specialist in
moulding and forming plastic packaging technologies, manufacturing for customers in the relatively defensive categories
of personal care, toiletry, dairy, spreads, catering, confectionery and automotive lubricants.
During the period, customer concentration increased relative to the previous situation with the top six customers
accounting for more than half of turnover but with a good spread of work nevertheless being achieved outside of the top six.
This increased concentration is deliberate as we prioritise customers for which technical, quality and financial entry
barriers are far higher than in most areas of plastic packaging. Typically, our top customers have international reach and wish
to partner with a financially sound converter that meets international norms in manufacturing excellence and sophistication and
who can reinvest alongside.
Customer engagement remains a top executive priority with a focus on managing customer expectations, demand planning,
forecasting and monitoring OTIFQ outcomes.
Electricity outages and load shedding remain a disruptive feature and a practical challenge that we are managing to
the best of our ability. The business reorganisation and our electricity saving initiatives are helping in this regard,
with our energy usage per ton converted continuing to improve.
Independently verified audits of our environmental impacts produced favourable outcomes relative to our peer group in
plastic packaging with clear ideas on where we are able to do better. In key areas such as water usage, energy usage in
kWh, tons of CO2e, plastic raw material converted, waste generation and air quality, Astrapak has made good progress.
Environmentally sustainable business is also potentially more profitable business and in line with what our international
customers seek.
Financial review
An attributable profit of R20,1 million compared with a restated loss of R52,3 million. This equates to earnings per
share of 16,6 cents versus a loss per share of 43,2 cents.
Continuing operations recorded a loss of R8,4 million after investment income of R5,9 million, finance costs of R17,3
million, tax of R4,7 million, payment of preference share dividends of R7,2 million and income attributable to
minorities of R7,2 million.
Discontinued operations recorded a profit after interest and tax of R28,6 million with exceptional items of R30,5
million contributing a significant proportion.
The headline loss attributable to ordinary shareholders is R7,8 million, compared with R40,1 million, and is all
attributable to continuing operations with discontinued operations breaking even. The headline loss per share of 6,5 cents
compared with 33,1 cents and is split 6,4 cents to continuing operations and 0,1 cents to discontinued operations.
Profit on disposal of assets of R3,3 million and profit on disposal of business of R32,5 million was recorded and
represents the only headline adjustments, other than the associated tax expense of R7,9 million, for the period. No
impairments were recorded on property, plant and equipment. As indicated at the full year, the legacy situation insofar
as the assets of the Group are concerned, has principally been dealt with.
Some costs associated with the turnaround remain in headline earnings and are recorded as normal running expenses, while
discontinued operations continue to incur costs at the centre until such time as ownership legally changes hands. The
Group is on track to an optimally rightsized overhead structure.
Cost of sales reduced by 8,1% to R493,2 million with revenue from continuing operations down by 6,2% to R637,6 million,
decreasing by 1,5% if the impact of the disposed Hilfort operations is adjusted for. Gross profit increased by 0,8% to
R144,4 million. Distribution and selling costs increased by a modest 4% to R52,1 million, while administrative expenses
reduced by 10,3% to R73,6 million. Other income of R3,2 million includes profits on assets disposed of and various
miscellaneous items such as DTI incentives. The depreciation charge for continuing operations increased to R34,5 million
from R32,8 million, a rise of 5,2%.
EBITDA from continuing operations of R56,5 million, up from R54,9 million, was achieved on revenue from continuing
operations of R637,6 million and represents an improved margin of 8,9%. This is below our medium-term target of 12% to 15%
but heading in the right direction.
Profit from continuing operations before exceptional items is flat at R22 million.
Net finance costs of R11,4 million translates to an EBITDA interest cover ratio of 5,0 times. Finance charges in the
second half are expected to reflect the timing of asset disposals and substantially improved level of gearing recorded at
the interim stage.
Cash generated by reducing the investment in net working capital totalled R49,4 million compared with R36,5 million
previously. This decrease assisted with a reduction in net trade working capital to R105,4 million. Net working capital days
of 30 compare with 40 days in the corresponding period last year and 31 days for the year ended 28 February 2015. Working
capital is targeted to remain in the region of 30 days.
Net debt has fallen to R63,6 million from R325,8 million a year previously and compared with R307,7 million as at 28
February 2015. The debt to equity ratio is 6,2%. The Group has substantial unused credit facilities. Continuing
businesses are net cash positive if disposal proceeds from discontinued operations are excluded.
Capital expenditure of R40,0 million has reduced by 28% compared with the comparative R55,5 million. As previously
communicated, we budgeted for an elevated level of capex in the 2016 financial year as we invest in partnerships with major
multinational customers in return for long-term contracts. Thereafter, replacement capex will be in line with
depreciation.
The Group ended the period with ordinary equity of R887,9 million, compared with R867,8 million as at 28 February
2015. Goodwill is reflected at R69,5 million. Preference share capital, net of costs, is unchanged at R142,6 million. Net
asset value per share is 851 cents.
We anticipate further cash inflows in the second half of the 2016 financial year associated with sales of assets which
should result in a pro forma ungeared statement of financial position. The Board shall assess appropriate use of
surplus cash.
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 and
profitability attained.
Holders of preference shares continue to receive dividends in the normal course.
Prospects
While markets served are soft in general, Astrapak has good line of sight on a reasonable proportion of future volumes
based on multi-year contracts secured. Mix of volume and selling price per kilogram is more important than absolute
level of volume, as demonstrated successfully in the first-half result.
We anticipate completing our exit from discontinued operations and assets surplus to requirements and thus releasing
further cash.
An improved result for the second half of the financial year is targeted.
Astrapak thanks its customers, suppliers, funders and shareholders for their support.
Changes to the Board
There are no changes to the Board since the conclusion of the year end.
Share capital
There is no movement in authorised share capital for the period. The number of ordinary shares in issue is 135 131 000
and the weighted average number of ordinary shares in issue is 121 036 000.
Changes in shareholding
As at 31 August 2015, Coronation Asset Management Proprietary Limited and Regarding Capital Management Proprietary
Limited held 25,90% and 9,66% of Astrapak respectively compared with 25,38% and 17,85% respectively as at 28 February 2015.
Lereko Metier Capital Growth Fund remains the largest single shareholder with an unchanged holding of 29,92%.
Subsequent events
There are no significant subsequent events that have an impact on the unaudited financial information at 31 August
2015.
For and on behalf of the Board
Phumzile Langeni
Chairman
Robin Moore
Chief Executive
Manley Diedloff
Chief Financial Officer
Denver
29 September 2015
SUMMARY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(R’000) Notes % Unaudited Restated Audited
change six months Unaudited financial year
ended six months ended
31 August ended 28 February
2015 31 August 2015
2014*
CONTINUING OPERATIONS
Revenue 9 (6,2) 637 644 680 026 1 388 606
Cost of sales (493 209) (536 731) (1 039 339)
Gross profit 0,8 144 435 143 295 349 267
Administrative and other expenses (73 626) (82 112) (218 495)
Distribution and selling costs (52 066) (50 054) (99 392)
Other items of income and expenditure 3 242 10 976 30 131
Profit from operations before exceptional items (0,5) 21 985 22 105 61 511
Exceptional items 10 - (1 747) (36 632)
Profit from operations 11 8,0 21 985 20 358 24 879
Investment income 5 938 6 474 13 372
Finance cost (17 283) (16 898) (34 396)
Profit before taxation 7,1 10 640 9 934 3 855
Taxation expense (4 681) (5 583) (14 891)
Profit/(loss) for the period from continuing operations 37,0 5 959 4 351 (11 036)
DISCONTINUED OPERATIONS
Profit/(loss) for the period from discontinued operations 12 159,0 28 554 (48 385) (111 272)
Profit/(loss) for the period 178,4 34 513 (44 034) (122 308)
Other comprehensive loss - - (4 813)
Total comprehensive profit/(loss) for the period 178,4 34 513 (44 034) (127 121)
Attributable to:
Ordinary shareholders of the parent 20 105 (52 319) (143 309)
- Loss for the period from continuing operations (8 449) (3 934) (27 224)
(Loss)/profit for the period from continuing operations before exceptional items - (2 187) 9 408
Exceptional items - (1 747) (36 632)
- Profit/(loss) for the period from discontinued operations 28 554 (48 385) (111 272)
- Revaluation of land and buildings (net of tax) - - (4 813)
Preference shareholders of the parent 7 223 6 005 10 890
Non-controlling interest 7 185 2 280 5 298
Total comprehensive profit/(loss) for the period 34 513 (44 034) (127 121)
Profit/(loss) per ordinary share 13 138,4 16,6 (43,2) (114,4)
- continuing operations (118,7) (7,0) (3,2) (22,5)
- discontinued operations 159,0 23,6 (40,0) (91,9)
Fully diluted profit/(loss) per ordinary share (cents) 13 138,4 16,6 (43,2) (114,0)
- continuing operations (118,7) (7,0) (3,2) (22,4)
- discontinued operations 159,0 23,6 (40,0) (91,6)
Preference dividend paid and accrued 7 223,0 6 005,0 10 890,0
Preference dividend per share (cents) 481,53 400,33 726,00
*Refer to note 2.
RECONCILIATION OF HEADLINE EARNINGS
(R’000) Notes % Unaudited Restated Audited
change six months Unaudited financial year
ended six months ended
31 August ended 28 February
2015 31 August 2015
2014
Ordinary shareholders of the parent 138,4 20 105 (52 319) (138 496)
- continuing operations (8 449) (3 934) (27 224)
- discontinued operations 28 554 (48 385) (111 272)
Headline loss adjustments
- Impairment of property, plant and equipment - 15 513 38 625
- Profit on disposal of property, plant and equipment (3 344) (2 301) (2 677)
- Impairment of goodwill - - 35 248
- Profit on sale of business (32 500) (2 265) (15 165)
- Total tax effect of adjustments 7 897 1 281 (4 035)
Headline loss attributable to ordinary shareholders (7 842) (40 091) (86 500)
- continuing operations (7 773) (1 584) (2 509)
- discontinued operations (69) (38 507) (83 991)
Headline loss per ordinary share (cents) 13 80,4 (6,5) (33,1) (71,5)
- continuing operations (392,3) (6,4) (1,3) (2,1)
- discontinued operations 99,7 (0,1) (31,8) (69,4)
Fully diluted headline loss per ordinary share (cents) 13 80,4 (6,5) (33,1) (71,2)
- continuing operations (392,3) (6,4) (1,3) (2,1)
- discontinued operations 99,7 (0,1) (31,8) (69,1)
SUMMARY CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(R’000) Notes % Unaudited Audited
change six months Unaudited financial year
ended six months ended
31 August ended 28 February
2015 31 August 2015
2014
Assets
Non-current assets (35,2) 920 090 1 420 319 933 932
Property, plant and equipment 3 737 537 1 183 535 734 314
Goodwill 69 497 110 776 75 497
Deferred taxation assets 59 790 69 902 69 326
Investments and loans 4 53 266 56 106 54 795
Current assets (29,8) 535 504 762 992 472 038
Inventories 5 165 986 256 473 130 378
Accounts receivable 237 549 451 001 269 069
Taxation receivable 3 003 6 788 2 577
Cash and cash equivalents 6 128 966 48 730 70 014
Assets classified as held-for-sale 7 514 306 7 284 688 569
Total assets (10,1) 1 969 900 2 190 595 2 094 539
Equity and liabilities
Total equity (5,0) 1 103 009 1 161 326 1 074 575
Equity attributable to ordinary shareholders of the parent 887 877 958 585 867 772
Preference share capital and share premium 142 590 142 590 142 590
Non-controlling interest 72 542 60 151 64 213
Non-current liabilities (36,1) 285 557 447 195 343 324
Long-term interest-bearing debt 125 049 260 000 170 190
Long-term financial liabilities - 904 -
Deferred taxation liabilities 160 508 186 291 173 134
Current liabilities (36,1) 371 879 582 074 398 168
Trade and other payables 298 132 458 373 299 693
Shareholders for preference dividends 6 211 4 019 4 258
Short-term interest-bearing debt 67 145 114 522 91 450
Taxation payable - 5 160 1 637
Bank overdrafts 6 391 - 1 130
Liabilities relating to assets held-for-sale 7 209 455 - 278 472
Total equity and liabilities (10,1) 1 969 900 2 190 595 2 094 539
SUMMARY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(R’000) Notes Unaudited Unaudited Audited
six months six months financial year
ended ended ended
31 August 31 August 28 February
2015 2014 2015
Opening balance 1 074 575 1 214 748 1 214 748
Comprising:
Ordinary share capital and premium 199 502 199 502 199 502
Retained income 664 221 795 090 795 090
Capital reserve 8 16 640 20 980 20 980
Non-controlling put options - (904) (904)
Revaluation reserve 134 856 147 296 147 296
Treasury shares (147 447) (147 447) (147 447)
Equity attributable to ordinary shareholders of the parent 867 772 1 014 517 1 014 517
Preference share capital and premium 142 590 142 590 142 590
Non-controlling interest 64 213 57 641 57 641
Movements:
Profit/(loss) for the period 34 513 (44 034) (122 308)
Preference dividend paid (7 223) (6 005) (10 890)
Contributions made by non-controlling interest 1 144 931 1 274
Adjustment to fair value of put options - - 904
Reclassification from revaluation reserve to retained income - 7 854 -
Revaluation reserve - (7 854) (4 813)
Share-based payment expense for the period - (4 314) (4 340)
Closing balance 1 103 009 1 161 326 1 074 575
Comprising:
Ordinary share capital and premium 199 502 199 502 199 502
Retained income 684 326 751 326 664 221
Capital reserve 8 16 640 16 666 16 640
Non-controlling put options - (904) -
Revaluation reserve 134 856 139 442 134 856
Treasury shares (147 447) (147 447) (147 447)
Equity attributable to ordinary shareholders of the parent 887 877 958 585 867 772
Preference share capital and premium 142 590 142 590 142 590
Non-controlling interest 72 542 60 151 64 213
Total equity 1 103 009 1 161 326 1 074 575
SUMMARY CONSOLIDATED STATEMENT OF CASH FLOWS
(R’000) Notes % Unaudited Unaudited Audited
change six months six months financial year
ended ended ended
31 August 31 August 28 February
2015 2014 2015
Cash generated from operations before working capital changes 89,1 64 485 34 092 37 121
Decrease in working capital 49 372 36 521 59 041
Net interest and taxation paid (26 634) (30 286) (50 146)
Net cash inflow from activities before distributions to shareholders 116,3 87 223 40 327 46 016
Dividend distribution to all shareholders (5 272) (6 008) (10 654)
Net cash inflow from operating activities 138,8 81 951 34 319 35 362
Capital expenditure (39 963) (55 482) (162 851)
Net movement of investments, subsidiaries and non-controlling interests 2 674 2 148 9 563
Proceeds on disposal of property, plant and equipment 124 546 48 796 152 817
Net cash inflow/(outflow) from investing activities 87 257 (4 538) (471)
Net cash outflow from financing activities (109 517) (43 331) (28 287)
Net increase/(decrease) in cash and cash equivalents 59 691 (13 550) 6 604
Net cash and cash equivalents at the beginning of the period 68 884 62 280 62 280
Net cash and cash equivalents at the end of the period 6 163,9 128 575 48 730 68 884
SUMMARY CONSOLIDATED SEGMENTAL ANALYSIS
(R’000) Rigids Flexibles Total Discon- Total
continuing tinued Group
operations operations*
Revenue for segment 2015 724 132 - 724 132 439 874 1 164 006
2014 741 724 - 741 724 588 427 1 330 151
Transactions with other operating segments of the Group 2015 (86 488) - (86 488) (8 853) (95 341)
2014 (61 698) - (61 698) (15 808) (77 506)
Revenue for external customers 2015 637 644 - 637 644 431 021 1 068 665
2014 680 026 - 680 026 572 619 1 252 645
Profit/(loss) from operations before exceptional items 2015 21 985 - 21 985 7 313 29 298
2014 22 105 - 22 105 (49 548) (27 443)
Total assets 2015 1 213 534 242 060 1 455 594 514 306 1 969 900
2014 1 540 469 650 126 2 190 595 - 2 190 595
Total liabilities 2015 356 256 301 180 657 436 209 455 866 891
2014 630 313 398 956 1 029 269 - 1 029 269
Capex 2015 27 819 12 144 39 963 - 39 963
2014 36 033 19 449 55 482 - 55 482
Depreciation 2015 34 460 - 34 460 - 34 460
2014 32 761 - 32 761 23 016 55 777
* As part of the Group’s strategy to discontinue the operations forming part of the Flexibles division and rationalise the Rigids
division, operations forming part of the Flexibles division and Rigids division which have been discontinued and classified as
held-for-sale have been reflected as discontinued operations.
SUPPLEMENTARY INFORMATION
Unaudited Restated Audited
six months Unaudited financial year
ended six months ended
31 August ended 28 February
2015 31 August 2015
2014
Number of ordinary shares in issue (‘000) 135 131 135 131 135 131
Weighted average number of ordinary shares in issue (‘000) 121 036 121 016 121 036
Fully diluted weighted average number of ordinary shares in issue (‘000) 121 036 121 234 121 531
Number of preference shares in issue (‘000) 1 500 1 500 1 500
Net asset value per share (cents) 851 910 835
Net tangible asset value per share (cents) 794 818 772
Closing share price (cents) 390 680 500
Market capitalisation (R million) 527 919 676
Net interest-bearing debt as percentage of equity (%) 6,2 29,6 30,5
Net debt 63 619 325 792 307 711
Long-term interest-bearing debt 125 049 260 000 233 077
Short-term interest-bearing debt 67 145 114 522 143 518
Cash and cash equivalents (128 966) (48 730) (70 014)
Bank overdraft 391 - 1 130
Interest cover (before exceptional items) 1,9 2,1 2,9
Net working capital days 30 40 31
Contingent liabilities 6 971 6 971 6 571
Earnings before interest, taxation, depreciation and amortisation (“EBITDA”)
- continuing operations 56 445 54 866 127 410
Profit from operations before exceptional items 21 985 22 105 61 511
Depreciation 34 460 32 761 65 899
NOTES
1. Basis of consolidation
These condensed consolidated annual financial statements for the half year ended 31 August 2015 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 the
information required by IAS 34 Interim Financial Reporting. This report was compiled under the supervision of Manley
Diedloff (Group 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 2015.
2. Comparative figures
Discontinued operations
During the 2015 year, the Board classified Cinqplast Denver, Cinqpet, East Rand Plastics, Plastop Bronkhorstspruit
(all divisions of Astrapak Manufacturing Holdings Proprietary Limited) as discontinued operations. Knilam Packaging, Peninsula
Packaging (divisions of Astrapak Manufacturing Holdings Proprietary Limited), Barrier Film Converters Proprietary Limited and
Coralline Investments Proprietary Limited were classified as assets held-for-sale. The comparatives have been restated
accordingly.
(R’000) Unaudited Unaudited Audited
six months six months financial year
ended ended ended
31 August 31 August 28 February
2015 2014 2015
3. Property, plant and equipment
Opening net carrying value 734 314 1 225 125 1 225 125
Additions 39 963 55 482 158 038
Classified as assets held-for-sale - - (424 625)
Disposals (2 280) (25 782) (76 409)
Impairment - (15 513) (38 625)
Depreciation (34 460) (55 777) (109 190)
Closing net carrying value 737 537 1 183 535 734 314
Capital expenditure for the period 39 963 55 482 158 038
Capital commitments
- contracted not spent 89 059 33 006 34 680
- authorised not contracted 45 795 28 335 9 433
4. Investments and loans
Vendor loan to Afripak Consumer Flexibles Proprietary
Limited in term of Flexibles disposal transaction 50 999 50 936 50 888
Vendor loan to Tadbik Pack SA Proprietary Limited
on the disposal Alex White & Company 2 255 5 158 3 895
Unlisted investment 12 12 12
Investments and loans as at the end of the period 53 266 56 106 54 795
5. Inventories
Inventories amounting to R2 216 395
(February 2015: R3 943) are carried at net realisable value.
(R’000) Unaudited Unaudited Audited
six months six months financial year
ended ended ended
31 August 31 August 28 February
2015 2014 2015
6. Cash and cash equivalents
Cash and cash equivalents 128 966 48 730 70 014
Bank overdrafts (391) - (1 130)
Net cash and cash equivalents at the end of the period 128 575 48 730 68 884
7. Assets held-for-sale and liabilities
relating to assets held-for-sale
The assets held-for-sale relate to the assets that are
being disposed of, rationalised and discontinued. Assets
classified as held-for-sale and liabilities associated
with assets held-for sale consist of the assets including
the related properties and liabilities of the following
entities:
Barrier Film Converters Proprietary Limited
Coralline Investments Proprietary Limited
Flexible divisions which are divisions of
Astrapak Manufacturing Holdings Proprietary Limited
Knilam Packaging
Peninsula Packaging
Opening balance at the beginning of the period 688 569 32 098 32 098
Inventory - - 93 458
Accounts receivable - - 143 168
Deferred taxation assets 158 - 20 320
Assets previously held-for-sale disposed of (174 421) (24 814) (25 100)
Revaluation of properties - - (4 813)
Property, plant and equipment classified as held-for-sale - - 429 438
Assets held-for-sale at the end of the period 514 306 7 284 688 569
Liabilities relating to assets held-for-sale consist
of the following:
Opening balance as at the beginning of the period 278 472 12 971 12 971
Interest-bearing debt - - 101 984
Trade creditors - - 153 742
Deferred taxation liabilities 402 - 9 775
Liabilities previously classified as held-for-sale
disposed of or transferred (69 419) (12 971) -
Liabilities relating to assets held-for-sale at the
end of the period 209 455 - 278 472
(R’000) Unaudited Restated Audited
six months Unaudited financial year
ended six months ended
31 August ended 28 February
2015 31 August 2015
2014
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 income of R0,8 million
(February 2015: R4,3 million).
9. Revenue
Revenue for the Group 724 132 741 724 1 515 248
Transactions with other entities in the Group (86 488) (61 698) (126 642)
Revenue for external customers 637 644 680 026 1 388 606
Volume (in ‘000 tons) 13 962 15 676 35 470
10. Exceptional items
Impairment of goodwill - - (35 248)
Impairment of property, plant and equipment - (1 747) (1 384)
Exceptional items - (1 747) (36 632)
11. Profit from operations - continuing operations
Profit from continuing operations is arrived at after
taking the following into account:
Net profit on disposal of property, plant and equipment 261 260 3 326
Profit on disposal of business - - 15 165
Depreciation 34 460 32 761 65 899
IFRS 2 Share-based Payment income 785 4 314 4 340
(R’000) Unaudited Restated Audited
six months Unaudited financial year
ended six months ended
31 August ended 28 February
2015 31 August 2015
2014
12. Profit/(loss) for the period from discontinued
operations
Refer to note 2
Revenue 431 021 572 619 1 119 772
Cost of sales (379 623) (510 529) (1 015 934)
Gross profit/(loss) 51 398 62 090 103 838
Other income 15 300 2 958 5 855
Distribution and selling costs (43 392) (55 212) (109 109)
Administration and other operating expenses (15 993) (59 384) (106 226)
Profit/(loss) from operations before exceptional items
from discontinued operations 7 313 (49 548) (105 642)
Exceptional items 30 547 (11 840) (37 241)
Profit/(loss) from operation for discontinued
operations 37 860 (61 388) (142 883)
Net finance costs (3 420) (5 800) (11 659)
Profit/(loss) before taxation from discontinued
operations 34 440 (67 188) (154 542)
Taxation (expense)/benefit (5 886) 18 803 43 270
Profit/(loss) after taxation from discontinued
operations 28 554 (48 385) (111 272)
Net cash flows incurred by discontinued operations
for the period are represented below:
Operating cash inflow/(outflow) 50 951 (12 319) (32 705)
Investing cash inflow/(outflow) 117 279 (10 033) (42 078)
Financing cash (outflow)/inflow (162 882) 22 161 82 887
Net increase/(decrease) in cash and cash equivalents
from discontinued operations 5 348 (191) 8 104
13. Profit/(loss) per ordinary share and headline loss
per ordinary share - basic and fully diluted
Profit/(loss) per ordinary share is calculated by dividing
the loss attributable to ordinary shareholders of
the parent by the weighted average number of shares
in issue over the period that the attributable loss
was generated.
Headline loss per ordinary share is calculated by
dividing the headline loss attributable to ordinary
shareholders of the parent by the weighted average
number of shares in issue over the period that the
headline loss was generated.
Fully diluted loss and headline loss 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 facts or circumstances material to the appreciation
of this report have occurred between 31 August 2015 and
the date of this report.
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*, T V Mokgatlha* *Non-executive
Company Secretary: V Mahadeo
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 Proprietary Limited
Ground Floor, 70 Marshall Street, Johannesburg, 2001 › PO Box 61051, Marshalltown, 2107
Sponsor: Rand Merchant Bank (a division of FirstRand Bank Limited)
Operating entities
Rigids Division: Consupaq › JJ Precision Plastics › Marcom Plastics › PAK 2000 › Plastech
› Plastform › Plastop (KwaZulu-Natal) › Thermopac › Weener - Plastop
For more information on our business please go to: www.astrapak.co.za
Date: 30/09/2015 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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