Wrap Text
Summarised group results and dividend declaration for the year ended 31 December 2019
African Oxygen Limited
(Incorporated in the Republic of South Africa)
Registration number: 1927/000089/06
ISIN: ZAE000067120
JSE code: AFX
NSX code: AOX
Summarised Group results and dividend declaration
for the year ended 31 December 2019
Performance highlights
Revenue
R6 086 million
Increase of 0.6% from R6 047 million for the year ended 31 December 2018
EBIT
R867 million
Increase of 45.5% from R596 million for the year ended 31 December 2018
Operating cash flow
R1 403 million
Increase of 56.4% from R897 million for the year ended 31 December 2018
Earnings per share
204.4 cents
Increase of 41.2% from 144.8 cents for the year ended 31 December 2018
Headline earnings per share
203.5 cents
Increase of 31.4% from 154.9 cents for the year ended 31 December 2018
Dividend per share
101 cents
Increase of 31.2% from 77 cents for the year ended 31 December 2018
SUMMARISED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at
R'million 31 December 31 December
2019 2018
Non-current assets 3 821 3 591
Current assets 3 409 3 359
Total assets 7 230 6 950
Total equity 4 313 4 023
Non-current liabilities 1 524 1 624
Current liabilities 1 393 1 303
Equity and liabilities 7 230 6 950
SUMMARISED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
for the year ended
R'million 31 December 31 December
2019 2018
Revenue 6 086 6 047
EBITDA 1 276 1 077
Depreciation, amortisation and impairments (409) (429)
Restructuring costs - (52)
Earnings before interest and taxation 867 596
Headline earnings 628 478
SUMMARISED CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended
R'million 31 December 31 December
2019 2018
Cash generated from operations 1 403 897
Interest, taxation and dividends paid (537) (542)
Net cash inflow from operating activities 866 355
Investing and financing activities (835) (546)
Free cash flow 31 (191)
Cash and cash equivalents 1 184 1 153
Commentary
Afrox increased its revenue by 0.6% to R6 086 million (2018: R6 047 million) as a result of volume growth in certain sectors of the business and successful
recovery of cost inflation from effective pricing management. Adjusted for the impact from the change in Liquefied Petroleum Gas (LPG) market prices of
R96 million, total revenue growth was 2.3%. Earnings before Interest and Taxes (EBIT or Group Operating Profit) at R867 million (2018: R596 million) increased
by 45.5%. This increase in EBIT resulted from growth in the Healthcare business, recovery of cost inflation via pricing, efficiencies from restructuring and
improved plant performance.
After adjusting for the 2018 non-recurring item, Afrox's EBIT increased by 23.3% as a result of growth in strategic markets, solid price cost inflation
recovery, continued productivity gains from various efficiency projects and the positive impact of the restructuring activities. Despite the deterioration
in the socio-economic environment, load shedding in late Q4 and a shortage in supply during Q2, the Company showed its resilience during the year.
Operating cash flow of R1 403 million (2018: R897 million) increased by R506 million (or 56.4%). The increase was a result of a decrease in trade and other
working capital due to R124 million increase in trade and other payables; a reduction in inventory of R38 million partially offset by a R97 million increase in
trade and other receivables. Capital expenditure of R403 million was R88 million lower than the R491 million of 2018. Despite the repayment of R400 million
of long-term borrowings, the net cash position of R1 184 million improved by R31 million from the 2018 R1 153 million.
Return on capital employed (ROCE) improved by 740 bps to 23.1% (2018: 15.7%). Adjusting for the impact of IFRS 16, ROCE improved by 580 bps.
Dividend
The Company's policy is to consider dividends twice annually. The Board of directors has declared a final cash dividend of 46.0 cents per share
(2018: 25.0 cents), declared out of the after-tax earnings for the year ended 31 December 2019. This brings the total dividend for the year to 101 cents
(2018: 77 cents). Based on Afrox's policy, the dividend is covered twice by HEPS.
Notice of final dividend declaration number 186 and salient features
Notice is hereby given that a gross cash dividend of 46 cents per ordinary share, being the final dividend for the year ended 31 December 2019,
has been declared payable to all shareholders of Afrox recorded in the register on Friday, 3 April 2020.
The salient dates for the declaration and payment of the final dividend are as follows:
Last day to trade ordinary shares “cum” dividend Tuesday, 31 March 2020
Ordinary shares trade “ex” the dividend Wednesday, 1 April 2020
Record date Friday, 3 April 2020
Payment date Monday, 6 April 2020
Shares may not be dematerialised or rematerialised between Wednesday, 1 April 2020 and Friday, 3 April 2020, both days inclusive.
The local net dividend amount is 36.8 cents (2018: 20 cents) per share for shareholders liable to pay dividends tax and 46.0 cents (2018: 25 cents)
per share for shareholders exempt from dividends tax.
In terms of the dividends tax, the following additional information is disclosed:
– The dividend has been declared out of income reserves;
– The local dividends tax rate is 20%, subject to double tax agreement;
– Afrox currently has 308 567 602 ordinary shares (excluding treasury shares
of 34 285 308) in issue; and
– Afrox’s income tax reference number is 9350042710.
Outlook
The South African economy remains weak and no significant turnaround is expected in the short term. However, Afrox will continue to focus on specific
growth opportunities and effective price cost recoveries while economic growth is expected to be weak.
By order of the Board
Cheryl Singh
Company Secretary
About this short-form announcement
This short-form announcement is the responsibility of the Company's directors. It is a summary of the information in the Group's full results announcement
for the year to 31 December 2019 and does not contain full and complete details. The full results announcement is accessible via the JSE link at
https://senspdf.jse.co.za/documents/2020/jse/isse/AFX/FY2019SENS.pdf and the Company's website at:
http://www.afrox.co.za/en/investor_relations/financial_results/financial_results/index.html.
The audited consolidated financial statements, from which these summarised consolidated financial results have been extracted, have been audited by the
Group’s auditors, PricewaterhouseCoopers Inc., who expressed an unmodified opinion thereon (“Auditor’s Opinion”). A key audit matter relating to the
adoption of new standard – IFRS 16 “Leases” is addressed in the Auditor’s Opinion, which is available for inspection, along with the audited consolidated
financial statements, at the Company’s registered office and also available on the Company’s website at:
http://www.afrox.co.za/en/investor_relations/financial_results/financial_results/index.html.
Copies of the full results announcement may be requested at the Company's registered office or the offices of One Capital, at no charge, during normal
office hours. Investment decisions in relation to the Company's shares should be based on consideration of the full results announcement.
Executive directors: S Venter (Managing Director), M Vogt* (Group Financial Director)
Non executive directors: JM Panikar** (Chairman), M von Plotho*
Independent non-executive directors: CF Wells***, NVL Qangule, GJ Strauss (Lead Independent Director), N Gwagwa
*German **American ***British
Johannesburg
4 March 2020
Sponsor in South Africa: One Capital
Sponsor in Namibia: Namibia Equity Brokers Proprietary Limited
Date: 04-03-2020 07:05:00
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