Transpaco Limited HY 2014 results

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Transpaco Limited HY 2014 results

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Transpaco Limited HY 2014 results

  1. 1. Reg. No. 1951/000799/06 | ISIN: ZAE000007480 | Share Code: TPC UNAUDITED CONDENSED INTERIM GROUP RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2013 AND DIVIDEND ANNOUNCEMENT HEADLINE EARNINGS PER SHARE up 7% INTRODUCTION Transpaco continued to deliver pleasing results despite a challenging economic environment. The group’s margins remain under pressure as raw material prices continue to increase driven by the weakening exchange rate. However, controlled expenses and higher volumes helped to mitigate the impact on the group’s performance. Financial Results The group increased headline earnings by 7,2% to R46,5 million (December 2012: R43,3 million). Headline earnings per share (HEPS) grew by 6,7% to 144,5 cents (December 2012: 135,4 cents). Earnings per share (EPS) increased by 6,7%, to 144,7 cents (December 2012: 135,6 cents). Diluted HEPS rose by 7,1% to 141,9 cents (December 2012: 132,5 cents). Total operating profit grew 7,3% to R64,6 million (December 2012: R60,2 million) on turnover of R667,6 million, up 10,2% (December 2012: 606,1 million). Operating profit in the Plastic division increased against a year-on-year reduction in the Paper and Board division caused by an unexpected decline in demand for certain board products. Transpaco utilised R7,9 million in cash from operating activities (December 2012: generated R37,9 million in cash). A combination of higher inventory and trade debtors due to increased sales, and early payment to trade creditors for discount purposes resulted in this change. The latter also reduced the cash balance at 31 December 2013 to R17,2 million compared to the previous year-end R65,3 million. The group’s net interest-bearing debt-to-equity position was 5,3% (December 2012: net cash positive) with an interest cover of 166,9 times (December 2012: 100 times). Net asset value per share increased by 11,9% to 1 220 cents (December 2012: 1 090 cents). DIVIDEND PER SHARE 39,0 cents Prospects The group will continue its proven business strategy, targeting organic growth while maintaining strict financial control and at the same time identifying and pursuing appropriate acquisitions. Dividend The board has declared an interim gross cash dividend out of income reserves of 39,0 cents per share (December 2012: 36,5 cents per share) for the six-month period ending 31 December 2013, an increase of 6,8%. No STC credits have been utilised. After applying the dividend withholding tax of 15% a net interim dividend of 33,15000 cents per share will be paid to those shareholders who are not exempt from the dividends tax. The issued shares at the date of declaration is 33 177 372 ordinary shares. The Income Tax reference no. is 9975/112/71/6. The salient dates for the dividend are as follows: Last date to trade shares cum dividend Shares trade ex-dividend Record date Payment date Thursday, 13 March 2014 Friday, 14 March 2014 Thursday, 20 March 2014 Monday, 24 March 2014 Share certificates may not be dematerialised or rematerialised between Friday, 14 March 2014 and Thursday, 20 March 2014, both days inclusive. Basis of Preparation and Accounting Policies The unaudited interim financial results have been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), its interpretations issued by the IFRS Interpretations Committee, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, the presentation and disclosure requirements set out in IAS 34 – Interim Financial Reporting and comply with the JSE Listings Requirements and the Companies Act of South Africa. The accounting policies are consistent in all material respects with those applied in the preparation of the group’s annual financial Revenue 668 742 607 051 1 125 260 ASSETS Non-current assets 202 702 190 055 202 602 Property, plant and equipment 195 906 181 224 193 901 Intangibles 482 482 482 Goodwill 3 204 3 204 3 204 Long-term receivables – 1 822 642 Deferred taxation 3 110 3 323 4 373 Current assets 392 807 371 331 393 393 Inventories 128 454 108 554 120 416 Trade and other receivables 243 609 194 318 185 579 Short-term receivables 2 013 2 202 2 308 Taxation receivable 1 356 965 1 404 Cash and cash equivalents 17 375 65 292 83 686 Non-current assets classified as held-for-sale 885 885 885 Turnover 667 596 10,2 606 060 1 123 204 Cost of sales (431 096) (384 616) (715 749) Profit before operating costs and depreciation 236 500 6,8 221 444 407 455 Operating Costs (155 119) (145 805) (282 697) Depreciation 618) (16 807) (15 461) (31 Operating profit 93 140 64 574 7,3 60 178 Finance income 1 146 991 2 056 Finance costs (1 533) (1 599) (3 085) Profit before taxation 64 187 7,8 59 570 92 111 Taxation (17 643) (16 180) (25 246) Profit for the period 46 544 7,3 43 390 66 865 Other comprehensive income – – – 66 865 Weighted average number of shares in issue (‘000) Diluted weighted average number of shares in issue (‘000) Earnings per share (cents) Diluted earnings per share (cents) Headline earnings per share (cents) Diluted headline earnings per share (cents) 32 164 32 000 32 012 32 747 32 710 32 719 144,7 6,7 135,6 208,9 142,1 7,1 132,7 204,4 144,5 6,7 135,4 208,2 141,9 7,1 132,5 203,7 Dividend per share (cents)* *Dividend declared after the period 39,0 6,8 36,5 90,0 Reconcilliation of headline earnings (R’000) Basic earnings Profit on disposal of property, plant and equipment 46 544 43 390 66 865 (75) (61) (208) Headline earnings 46 469 43 329 66 657 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Unaudited 6 months Dec 2013 Unaudited 6 months Dec 2012 TOTAL ASSETS 596 394 562 271 Audited 12 months June 2013 596 880 EQUITY AND LIABILITIES Capital and reserves 913 390 489 348 360 935 Issued share capital 320 320 320 Share premium 11 019 11 019 11 019 Other reserves 3 652 3 056 3 358 Distributable reserve 375 498 334 518 346 238 Non-current liabilities 924 50 342 46 53 491 Interest-bearing borrowings 26 689 24 667 32 612 Deferred taxation 23 653 22 257 20 879 Current liabilities 155 563 166 434 182 454 Trade payables and accruals 123 023 134 747 148 898 Provisions 19 906 15 495 17 449 Current portion of interest-bearing borrowings 11 387 14 639 13 244 Taxation payable 1 114 1 553 2 863 Bank overdraft 133 – – TOTAL EQUITY AND LIABILITIES 596 394 562 271 596 880 Issued Distribut- Share Share Other able R’000 Capital Premium Reserves Reserve Total Number of shares in issue (‘000) Number of shares (net of, treasury shares) 32 017 31 991 31991 Net movement in treasury shares 2 26 26 Balance at 30 June 2012 (audited) Total comprehensive income Share-based payments Dividend paid Movement in treasury shares 320 11 019 – – – – – – – – 2 438 306 746 320 523 – 43 390 43 390 618 – 618 – (15 765) (15 765) – 148 148 Ranking number of shares Balance at 31 December 2012 (unaudited) Total comprehensive income Share-based payments Dividend paid 320 11 019 – – – – – – 3 056 334 519 348 914 – 23 475 23 475 302 – 302 – (11 756) (11 756) Balance at 30 June 2013 (audited) Total comprehensive income Share-based payments Dividend paid Movement in treasury shares 320 11 019 – – – – – – – – 3 358 346 238 360 935 – 46 544 46 544 294 – 294 – (17 295) (17 295) – 11 11 Balance at 31 December 2013 (unaudited) 320 3 652 375 498 390 489 11 019 ON BEHALF OF THE BOARD AJ Aaron Non-executive Chairman 32 019 32 017 32,017 Salient features Net asset value per share (cents) 1 220 1 090 1127 Operating margin % 9,7 9,9 8,3 Net cash Net cash Net interest-bearing debt: equity ratio % 5,3 positive positive Net interest cover (x) 166,9 100 90,5 CAPITAL COMMITMENTS R’000 Capital expenditure authorised and contracted Property, plant and equipment Unaudited Unaudited Audited 6 months 6 months 12 months Dec 2013 Dec 2012 June 2013 13 258 25 256 PN Abelheim Chief Executive L Weinberg Financial Director DIRECTORS AJ Aaron (Chairman)*^; PN Abelheim (Chief Executive); L Weinberg (Financial Director); HA Botha*^; SR Bouzaglou; SI Jacobson*; D Thomas*; SP van der Linde*^ *non-executive ^independent Date 19 February 2014 Auditors Transpaco Limited Company secretary Sponsor Registered Office Transfer Secretaries Website Ernst & Young Incorporated Registration number: 1951/000799/06 Share code: TPC ISIN: ZAE000007480 HJ van Niekerk Investec Bank Limited 331 6th Street Wynberg Sandton Computershare Investor Services (Pty) Limited 70 Marshall Street Johannesburg www.transpaco.co.za STATEMENT OF CASH FLOWS R’000 7,2 Approval and Preparation These unaudited interim financial results have been prepared under the direction and supervision of the Financial Director, L Weinberg CA (SA). STATEMENT OF FINANCIAL POSITION STATEMENT OF COMPREHENSIVE INCOME Unaudited Unaudited Audited 6 months % 6 months 12 months R’000 Dec 2013 change Dec 2012 June 2013 Total comprehensive income 43 390 46 544 7,3 statements for the year ended 30 June 2013. Transpaco has adopted all applicable new and amended standards, the effect of which had no material impact on the unaudited interim financial results. 9 347 Unaudited Unaudited Audited 6 months 6 months 12 months R’000 Dec 2013 Dec 2012 June 2013 Cash flow from operating activities Cash (utilised)/generated from operations (7 916) 37 868 100 067 Dividends paid (17 295) (15 765) (27 521) Finance costs (1 533) (1 599) (3 085) Finance income 1 146 991 2 056 Taxation paid (15 307) (13 145) (23 768) Net cash (outflow)/inflow from operating activities (40 905) 8 350 47 749 Cash flow from investing activities Proceeds on disposal of property, plant and equipment 270 199 436 Expansion and replacement of property, plant and equipment (18 977) (11 140) (40 007) Decrease in long-term receivables 642 1 129 2 309 Decrease/(increase) in short-term receivables 295 (92) (198) Net cash outflow from investing activities (17 770) (9 904) (37 460) Cash flow from financing activities (Decrease)/increase in interest-bearings borrowings (5 923) (301) 7 644 Decrease in current portion of interest-bearing borrowings (1 857) (3 552) (4 947) Movement in treasury shares 11 147 148 Net cash (outflow)/inflow from financing activities Net movement in cash for the period Cash and cash equivalents at the beginning of the period (7 769) (66 444) 83 686 (3 706) (5 260) 70 552 2 845 13 134 70 552 Cash and cash equivalents at the end of the period 17 242 65 292 83 686 SEGMENTAL ANALYSIS Paper and Properties Plastic Board and Group R’000 Products Products Services Total Turnover – 2013 Turnover to customers Less turnover to internal customers 447 264 478 904 31 640 220 332 233 583 13 251 – 667 596 – 712 487 – 44 891 Turnover – 2012 Turnover to customers Less turnover to internal customers 381 474 401 911 20 437 224 586 232 749 8 163 – 606 060 – 634 660 – 28 600 Operating profit – 2013 Operating profit – 2012 39 358 30 962 22 728 27 664 2 488 1 552 64 574 60 178 Profit before tax – 2013 Profit before tax – 2012 38 787 30 161 22 183 27 537 3 217 1 872 64 187 59 570 Capital expenditure – 2013 Capital expenditure – 2012 17 140 4 410 1 344 6 242 493 488 18 977 11 140 Assets – 2013 Assets – 2012 395 971 333 961 158 746 153 686 41 677 74 624 596 394 562 271 Liabilities – 2013 Liabilities – 2012 122 154 128 187 62 745 65 942 21 006 19 229 205 905 213 358 rifedesigns 14005 REVENUE UP 10% A leading manufacturer, recycler and distributor of plastic and paper packaging products

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