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Provisional Reviewed Condensed Consolidated Financial Results for the year ended 30 September 2015
WINHOLD LIMITED
(Registration number 1945/019679/06)
Incorporated in the Republic of South Africa
Share code: WNH ISIN: ZAE000033916
Provisional Reviewed Condensed Consolidated Financial Results for the
year ended 30 September 2015
- Increase of operating profit by 86%
- Headline earnings increased by 94,6%
- Dividend payment resumed at 7 cents per share
STATEMENT OF FINANCIAL RESULTS
Condensed Consolidated Statement of
Comprehensive Income
Year ended Year Ended
30 Sept 30 Sept
2015 2014
(Reviewed) (Audited)
R000's R000's
External revenue 1 222 304 1 099 159
Operating profit 39 759 21 408
Investment income 4 207 7 727
Net finance costs (8 061) (13 075)
Profit before taxation 35 905 16 060
Taxation (5 301) (4 207)
Share of associates Profit after Tax 531 548
Profit for the year 31 135 12 401
Other comprehensive income
- Actuarial remeasurement defined benefit
pension fund excluding tax (27) (641)
Profit and total comprehensive income for the
year 31 108 11 760
Profit and Total comprehensive income
3 733 (1 953)
attributable to non-controlling interests
Profit attributable to equity holders of the
27 402 14 354
parent
Total comprehensive income attributable to
27 375 13 713
equity holders of the parent
Earnings and diluted earnings per share 21.8 11.4
(cents)
Notes: Earnings per share and additional
information
Headline and diluted headline earnings / share 21.6 11.1
Weighted average ordinary shares
Adjusted for treasury stock (000?s) 125 506 125 506
Total ordinary shares issued (000?s) 126 215 126 215
Total depreciation and amortisation 14 457 12 616
EBITDA 54 216 34 024
Reconciliation of Headline Earnings
-Total Comprehensive Income for the year
attributable to the equity holders of the
parent 27 375 13 713
-Reverse other comprehensive income/(loss) 27 641
-Profit on disposal of fixed assets (149) (762)
- Taxation effects of the above 30 182
Total headline earnings 27 283 13 774
Condensed Consolidated Statement
of Financial Position
Year ended Year
30 Sept Ended
2015 30 Sept
(Reviewed) 2014
R000's (Audited)
R000's
ASSETS
Non-current assets
Property, plant and equipment 134 689 136 252
Investments and loans 7 094 63 338
Goodwill 19 541 19 541
Deferred Taxation 22 560 16 954
Current assets 414 696 370 662
- Inventory 165 143 139 493
- Receivables 241 332 214 989
- Bank and cash 8 221 16 180
TOTAL ASSETS 598 580 606 747
EQUITY AND LIABILITIES
Ordinary share capital and
122 793 122 793
premium
Retained earnings and Reserves 174 035 146 660
Equity attributable to owners of
296 828 269 453
the parent
Non controlling interests 8 615 4 882
Total Equity 305 443 274 335
Non current liabilities
- Interest bearing 22 995 55 819
- Interest free 3 178 3 076
- Deferred taxation 6 796 4 379
Current liabilities 260 168 269 138
Interest-bearing
- Bank overdraft 12 975 423
- Short-term borrowings 41 083 57 131
Interest free –
- Payables and provisions 206 110 211 584
598 580 606 747
Year
Year ended
Ended
30 Sept
30 Sept
2015
2014
(Reviewed)
(Audited)
R000's
R000's
SUPPORTING INFORMATION
- Capital commitments at period end 667 -
- Capital expenditure during the period 13 638 21 754
- Total interest-bearing borrowings 77 053 113 373
- Total interest-earning deposits 8 221 16 180
- Net asset value per share (cents) 236.5 214.7
- Total intangible assets(R000) 19 541 19 541
- Tangible net asset value per share (cents) 220.9 199.1
- Gearing (operational) (%) 15.4 19.6
- Gearing (total) (%) 25.9 42.1
- Return on equity (%) 9.2 4.8
- Return on assets (%) 5.2 2.0
Consolidated Statement of Changes in Equity
Year ended Year Ended
30 Sept 30 Sept
2015 2014
(Reviewed) (Audited)
R000's R000's
- Stated Capital 122 793 122 793
-Opening balance retained earnings 148 400 134 046
-Profit for the year 27 402 14 354
-Total comprehensive income 31 135 12 401
-Attributable to non-controlling interest 3 733 1 953
-Actuarial Reserve (1 767) (1 740)
- Balance beginning of the year (1 740) (1 099)
- Actuarial re-measurement for the year (27) (641)
Balance at the end of the year 296 828 269 453
Condensed Consolidated Statement of Cash
Flows
Year ended Year Ended
30 Sept 30 Sept
2015 2014
(Reviewed) (Audited)
R000's R000's
Cash flow (used in)/from operating activities (12 205) 44 336
Cash flow from trading 58 349 41 892
Changes in working capital (55 036) 19 677
Net finance costs (8 061) (13 075)
Dividends from associates 281 246
Taxation paid (7 738) (4 404)
Cash flow from investing activities 40 566 (635)
(Investment in)/proceeds from fixed assets (12 475) (21 436)
Proceeds from loans receivable 53 311 20 801
Cash flow from financing activities (48 872) (33 562)
Interest-bearing borrowings repaid (48 872) (33 562)
Interest-bearing loans raised - -
Net (decrease)/increase in cash (20 511) 10 139
Balance at the beginning of the year 15 757 5 618
Balance at the end of the year (4 754) 15 757
Condensed Consolidated Statement of Segment Results to 30 September
Flexible Packaging(1) Flexible Building(2)
2015 2014 2015 2014
R 000's R 000's R 000's R 000's
Revenue–External 319 817 330 035 349 984 231 172
Revenue–Inter-segment 159 183 140 887 99 199 77 557
Revenue – Total 479 000 470 922 449 183 308 729
Depreciation 7 367 6 756 5 003 3 701
Investment Income - - - -
Profit before Tax (&) (14 222) (13 288) (31 471) 10 777
Capital expenditure 2 653 10 888 9 018 9 308
Total assets 258 912 262 950 179 728 171 751
Total liabilities 123 866 135 279 97 293 140 587
Trading(3) Property & Group(4)
2015 2014 2015 2014
R 000's R 000's R 000's R 000's
Revenue–External 552 461 537 911 41 41
Revenue–Inter-segment 15 671 15 303 (274 053) (233 747)
Revenue – Total 568 132 553 214 (274 012) (233 706)
Depreciation 1 837 1 868 250 291
Investment Income - - 4 207 7 727
Profit Before Tax (&) 15 206 14 736 3 450 3 835
Capital expenditure 1 913 620 54 938
Total assets 166 982 166 584 (7 042) 5 462
Total liabilities 113 094 95 073 (41 116) (38 527)
Notes to the Segmental Analysis –
(&)'Profit before Tax' is stated before allocated management fees
(1) The Flexible Packaging segment comprises the Flexible Consumer and
Industrial Packaging Divisions operating out of Germiston and
Swaziland
(2) The Flexible Building segment comprises the Flexible Construction and
Agricultural Division and the GeoSynthetics dam lining divisions in
Springs
(3) The Trading Division comprises the Gundle and Inmins Trading branches
(4) Property and Group relate to the elimination of inter-group
transactions and group costs
CONTINGENT LIABILITY, LITIGATION AND SUBSEQUENT EVENTS
There is no material pending litigation and the directors are not aware of
any material contingent liabilities or post balance sheet events between
the balance sheet date and the date of this report.
REVIEW OPINION
These condensed consolidated financial statements for the year ended
30 September 2015 have been reviewed by the group's auditors, Mazars, who
expressed an unmodified review opinion. A copy of the auditors review
opinion is available for inspection at the company's registered office
together with the financial statements identified in the auditor's review
report.
GROUP PROFILE
Winhold Limited (“Winhold”) is a holding company with its main
investments being in its 74,9% owned subsidiaries Gundle Plastics Group
(Pty) Ltd and Inmins Trading (Pty) Ltd.
Gundle comprises three divisions, the Industrial and Consumer Flexible
Packaging Division with its factories in Germiston and Swaziland, the
Flexible Building, Construction and Agricultural Division in Springs
(including the Geosynthetics Dam Lining Division) and the Trading
Division with branches in the main coastal cities, Bloemfontein and
Mbombela. Gundle manufactures polyethylene 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, as well as installing dam linings in
sub-Sahara Africa.
Inmins Trading comprises 19 strategically located operations 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.
HEADLINE NUMBERS
Operating profit increased by 86% on a revenue increase of 11%. Headline
earnings per share improved by 94,6% to 21,6 cents per share.
The improvement is mainly due to the excellent performance of the
Flexible Building and Trading segments of Gundle.
Both the mining and industrial sectors serviced by Inmins are under
pressure, resulting in reduced revenue and margins.
MARKET CONDITIONS
The strikes of 2014 were fortunately not repeated, however the mining
sector remained depressed due to lower global demand for minerals. The
manufacturing sector, the Group's customer base, experienced lower demand
leading to increased price competition in an overtraded market.
International sentiment towards South Africa was negative and the Rand
continued to weaken thereby inflating the cost of imported product.
Polymer prices were less volatile than in 2014.
The plastic sheet market continues to be very competitive and is
dominated by over-capacity and competitors chasing volume with margin.
Electricity and other administrative prices continued to increase, making
it difficult to recover cost increases in the market. Load shedding
during the first three quarters of the financial period caused production
losses and increased scrap.
PERFORMANCE
Inmins Trading
Revenue decreased by 2%. The partial recovery of the mining division
sales (+5,5%) was offset by the depressed demand in the industrial sector
(-8%). The weaker currency put pressure on the margin of imported
products. The mining supplies divisions returned to profitability,
albeit at levels below 2013.
Gundle Plastics Group
Gundle revenue increased by 15,3% on a 7,2% production volume increase.
The sporadic shortage of virgin polymers caused some production losses
and increased imported material costs. Recycled polymers were more
readily available which led to a much improved performance in the
construction and agricultural division. Gundle GeoSynthetics, our geo-
membrane supplier and installer, more than doubled its turnover due to
completing a number of large products both in South Africa and Sub-Sahara
Africa, resulting in record profits for the operation.
The Swaziland business has returned to profitability after making losses
for the past three years. The turnaround actions in Germiston have not
yet borne fruit and the business continued its loss making trend.
Turnaround consultants have been appointed to assist the new management
in implementing the changes required.
Revenue of the Gundle distribution branches grew by 9,5% with pre-tax
profit up 63%. Operating expense increases were contained in all the
operations.
Repi colourants
Despite the increased opposition reported on last year and the weaker
Rand, this operation improved its revenue and profit before tax after
achieving success in neighbouring countries.
PROSPECTS
Gundle
The turnaround strategy in Germiston is in its second year and a
financial improvement is expected in 2016. Although the dam lining
division tendered on various projects both locally and in Sub-Sahara
Africa, the drop in demand for resources has caused a number of the
projects to be postponed. However, new projects, tenders and
developments could lead to improvements. The introduction of innovative
products for the construction and agricultural markets should help to
maintain volumes.
Inmins
The manufacturing industry showed some growth in the third quarter of
2015. Should this continue, the industrial trading division should show
improved revenue. The mining sector is expected to remain under
pressure, however the introduction of new products through the network
should lead to revenues being maintained.
APPRECIATION
The support from customers, suppliers, financial institutions and
shareholders in a very difficult year is highly appreciated. The
commitment of the management team and staff was once again noted. The
support of the chairman, board, management and staff, customers and
suppliers, cannot be overstated.
BASIS OF PREPARATION
These preliminary condensed consolidated financial statements have
been prepared in accordance with the framework concepts and
measurement recognition requirements of International Financial
Reporting Standards Council (“IFRS”) and the SAICA Financial Reporting
Guides as issued by the Accounting Practices Committee and contain the
information required by International Accounting Standard 34 Interim
Financial Reporting ("IAS34"),the Listings Requirements of the
Johannesburg Stock Exchange (“the Listings Requirements”)and comply
with the South African Companies Act (2008). The accounting policies
applied are consistent with those used in the prior year. The
preparation of the provisional condensed consolidated financial
statements has been supervised by the CEO, and acting CFO Mr. W Fourie
CA(SA).
CORPORATE GOVERNANCE
The Group subscribes to the value of good corporate governance and,
where appropriate, is committed to continued implementation of
the recommendations of the King III Report and the Listings Requirements.
The Group endeavours to continue to conduct its business in accordance
with the principles of accountability, transparency and integrity.
DIRECTORATE
Mr Haroon Jeena was appointed as an independent non-executive member of
the board with effect from 27 August 2015. Ms Nomavuso Mnxasana resigned
from the board as at 28 February 2015. Mr Grant Scrutton resigned from
the board with effect from 30 September 2015. Their contribution to the
group is highly appreciated. There were no other changes to the board of
directors during the financial year.
DECLARATION OF DIVIDEND
Due to the improved results of the Group, the Board declared a dividend of
7,0 cents (2014: 0 cents) per ordinary share on 24 November 2015 for the
year ended 30 September 2015. Payment will be made on 29 February 2016. A
separate announcement to this effect is available on SENS and on the
company's website (www.winhold.co.za).
For and on behalf of the board
WAR WENTELER W FOURIE
Chairman Chief Executive Officer
Date : 24 November 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
Fax: +27 11 345 9881
Directors: W A R Wenteler (Chairman) ‡, W Fourie (CEO),
H Jeena †‡, R Naidoo †‡, P C Nash‡ : (‡non-executive), († independent)
Company Secretary: G J O?Connor johnoc@winhold.co.za
Date: 24/11/2015 05:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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