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Unaudited condensed interim consolidated results of the group for the six months ended 31 March 2016
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 2016
Condensed Consolidated Statement Of Comprehensive Income
12 months Six Six Six
ended months months Months
30 ended 31 ended ended 30
September March 31 March September
2015 2016 2015 2015
R'000 R'000 R'000 R'000
1 222 304 External Revenue 551 885 622 789 599 515
39 610 Operating profit 3 977 18 355 21 255
4 207 Investment income 1 085 2 101 2 106
Profit on sale of property,
149 plant &equipment - - 149
(8 061) Net finance costs (3 927) (5 177) (2 884)
35 905 Profit before taxation 1 135 15 279 20 626
(5 301)) Taxation (309) (4 283) (1 018)
531 Share of associates PAT 274 274 257
Profit for the period
31 135 (continuing operations) 1 100 11 270 19 865
Actuarial re-measurement
(27) Pension Fund - - (27)
Total comprehensive income
31 108 for the period 1 100 11 270 19 838
Attributable to non-
3 733 controlling interests (859) 1 638 2 095
Attributable to equity
27 375 holders of the parent 1 959 9 632 1 743
- Dividends paid (8 835) - -
27 375 Reported profit/(loss) (6 876) 9 632 17 743
Earnings and diluted
21,8 earnings per ordinary share 1,6 7,7 14,2
(cents)
Headline and diluted
earnings per ordinary share
21,7 (cents) 1,6 7,7 14,1
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
14 457 amortisation 7 959 7 642 6 815
54 067 EBITDA 11 936 25 997 28 070
Reconciliation of headline
earnings
- Comprehensive Income for
27 375 the period 1 959 9 632 17 743
- Other comprehensive
27 income - - 27
Profit on disposal of fixed
(149) assets 0 (19) (130)
Taxation effects of the
30 above 0 5 25
27 283 Total Headline earnings 1 959 9 618 17 665
Condensed Consolidated Statement of Financial Position
12 months Six Six Six
ended months months Months
30 September ended 31 ended ended 30
2015 March 31 March September
2016 2015 2015
R'000 R'000 R'000 R'000
ASSETS
134 689 Fixed Assets 129 974 132 195 134 689
7 094 Investments and loans 3 223 2 973 7 094
19 541 Goodwill 19 541 19 541 19 541
- (Net) Deferred
22 560 taxation 19 554 12 113 22 560
414 696 Current assets 347 514 391 097 414 696
165 143 - inventory 174 644 150 540 165 143
207 029 - receivables 157 960 198 214 207 029
34 303 - unlisted investments 5 333 35 597 34 303
8 221 - bank and cash 9 577 6 746 8 221
598 580 Total assets 519 806 557 919 598 580
EQUITY AND LIABILITIES
Ordinary share capital
122 793 and premium 122 793 122 793 122 793
175 802 Retained earnings 168 926 156 292 175 802
(1 767) Actuarial Reserves (1 767) - (1 767)
Equity attributable to
296 828 owners of the parent 289 952 279 085 296 828
Non-controlling
8 615 interests 7 756 6 520 8 615
305 443 Total Equity 297 708 285 605 305 443
Non-current liabilities
22 995 - interest bearing 23 114 26 293 22 995
3 178 - interest free - - 3 178
6 796 - deferred taxation - - 6 796
260 168 Current liabilities 198 984 246 021 260 168
interest bearing
12 975 - bank overdraft 16 136 3 12 975
- short term
41 083 borrowings 8 199 37 783 41 038
Liabilities of disposal
- group - - -
interest free
- payables and
206 110 provisions 174 649 208 235 206 110
Total Equity and
598 580 Liabilities 519 806 557 919 598 580
Supporting information
Capital Commitments at
667 period end 1 492 3 216 667
Capital expenditure
13 630 during the period 4 190 3 627 10 003
Total Interest bearing
77 053 borrowings 47 449 64 079 77 053
Total Interest earning
8 221 deposits 9 577 6 746 8 221
Net asset value per
236,5 share ( cents ) 231,0 222,4 236 ,5
19 541 Total intangible assets 19 541 19 541 19 541
220,9 Tangible net asset value 215,5 206,8 220,9
per share( cents )
9,2 Return on Equity (%) 1,4 6,9 11,9
5,1 Return on Assets (%) 0,3 3,9 6,5
Condensed consolidated statements of changes in equity
Year ended Six Six Six
30 September months months Months
2015 ended ended ended 30
31 March 31 March September
2016 2015 2015
R'000 R'000 R'000 R'000
Equity attributable to
holders of the parent
269 453 - Opening balance 296 828 269 453 279 085
- Total comprehensive
27 375 income for the period (6 876) 9 632 17 743
Balance at the end of the
296 828 year 289 952 279 085 296 828
Condensed Consolidated Statements of Cash Flows
Year ended Six Six Six
30 September months months months
2015 ended 31 ended ended 30
March 31 March September
2016 2015 2015
R'000 R'000 R'000 R'000
Cash flow from operating
(13 305) activities 6 040 (7 708) (5 597)
Profit before interest,
54 722 tax and non-cash items 13 061 28 037 26 685
Changes in working
(55 036) capital 8 104 (26 539) (28 497)
(5 534) Net finance costs (3 967) (5 177) (357)
281 Dividends paid (8 835) 0 281
(7 738) Taxation paid (2 323) (4 029) (3 709)
Cash flow from investing
40 566 activities 24 920 56 841 (16 275)
Net Investment in fixed
(12 745) assets (7 921) (3 524) (9 221)
Proceeds from loans
53 311 receivable 32 841 60 365 (7 054)
Cash flow from financing
(48 872) activities (32 765) (21 292) (27 580)
Interest bearing
0 borrowings raised 0 12 305 (12 305)
Interest bearing
(48 872) borrowings repaid (32 765) (33 597) (15 275)
Net increase/(decrease)
(21 611) in cash (1 805) 27 841 (49 452)
Condensed Consolidated Statement of 6 Monthly Segment Results
Flexible Packaging Flexible Construction Trading
First Half First Half
First Half 2016 First Half 2015 First Half 2016 2015 2016 First Half 2015
R’000 R’000 R’000 R’000 R’000 R’000
Revenue external 159 250 170 439 113 984 170 380 278 650 281 971
Revenue Inter Segment 83 637 81 874 66 500 43 258 6 990 8 572
Depreciation 3 890 4 250 3 004 2 357 917 907
Profit before Tax (15 123) (5 593) 8 356 11 572 5 350 8 956
Capital Expenditure 331 587 2 209 1 578 1 469 1 154
Total Assets 220 011 224 268 173 198 193 265 164 723 162 330
Total Liabilities 101 471 105 921 92 384 142 051 77 228 105 480
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.
5
Commentary
Gundle
Revenue decreased by 11,6% and operating profit by 79%.
One manufacturing subsidiary continued with a major loss and
actions undertaken during the period included a total change of
the management team, resulting in a major retrenchment exercise,
as well as the employment of consultants for 6 months to implement
a turnaround strategy and to improve production efficiencies.
Market conditions remain depressed and there was a volume variance
of 17% compared to the previous period. This improvement process
is not an overnight solution but should continue to reduce the
losses and return the subsidiary to profitability within the next
few months.
The dam lining division’s profitability reduced by 67,2% versus
the previous period as was expected. This was mainly due to the
not repeated major projects in Sub-Sahara Africa. However, it is
still profitable and slightly below budget. Major tender
allocations are still outstanding but have been delayed due to the
economic downturn. Although the bumper profitability of last year
will be hard to repeat, the division is still performing well.
Improvements in our construction, agricultural flexible division’s
products ensured that the market share increased. The improvement
in the Swaziland operation is continuing.
The trading division improved profitability by 4% on an increased
turnover of 11%.
Repi Colourants
This division which trades in colourants for PET plastics produced
a good profit for the first six months.
Inmins
The market continued its negative trend and led to much reduced
demand.
Due to the fall in commodity prices in the mining industry and
the re-positioning of the mines, there was reduced demand in the
platinum and coal sectors. This, together with the closing of
Highveld Steel in Witbank, had a major effect on the two Witbank
operations. Pro-active actions have been taken whereby four
loss making operations in Inmins were merged into two, in order
to reduce overheads and to minimize losses. The Inmins’
industrial division’s profitability decreased, but remained
profitable in a depressed market.
Review of operations
Prospects
Gundle
The turnaround strategy in one of the flexible manufacturing
divisions should lead to profitability in this division by the
end of the financial year.
The other manufacturing divisions should continue with their
improvements.
In the dam lining division, if major outstanding tenders are not
awarded, the bumper profits of last year will not be repeated.
However, they should meet their budget targets.
In a depressed market the trading division should continue to be
profitable.
Inmins
The Mining and Industrial Markets remain tough and are expected to
remain so for the rest of the year. Operational improvements in
the division are expected to maintain the profitability of the
division.
BASIS OF PREPARATION AND ASSURANCE
These condensed consolidated preliminary Group interim financial
statements for the six months ended 31 March 2016 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 2008, as amended, and the Listings
Requirements of the Johannesburg Stock Exchange (“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 2015 were audited and the auditor’s unqualified audit
report is included in the Annual Financial statements distributed
to Shareholders in December 2015.
CORPORATE GOVERNANCE
The Group subscribes to the highest level of good corporate
governance and is committed to continued implementation of the
recommendations of the King III Report and the Listings
Requirements. The Group continues to endeavour to conduct its
business in accordance with the principles of accountability,
transparency and integrity. The Consolidated interim financial
statements are the responsibility of the directors. The directors
take full responsibility for the preparation of these statements.
DIRECTORATE
Ms M Fry was appointed to the board as an independent non-
executive director and member of the audit and risk committee with
effect from 1 February 2016. There were no other changes to the
board during the six months ended 31 March 2016.
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 2016
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 CEO and Acting
CFO), M Fry†‡, H Jeena†‡, R Naidoo †‡, P. Nash‡, (‡non-
executive), († independent) Company Secretary: G J O’Connor
johnoc@winhold.co. Fax: +2711 345 9881
Date: 01/06/2016 05:47:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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