AstraPak Limited HY 2013 results (South Africa)

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AstraPak Limited HY 2013 results (South Africa)

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AstraPak Limited HY 2013 results (South Africa)

  1. 1. Charting a new course (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 Group”) Commentary Operating context The executive team has made good progress during the six month period toward meeting the two-year recovery time-frame objective. The recovery plan remains on track with the financial performance in-line with what was anticipated for the initial phases of the recovery plan. Financial results take time to manifest positively but in the meantime the necessary qualitative improvements are well underway as encapsulated in our philosophy of charting a new course. Necessary streamlining to improve future returns is being undertaken. Good quality human capital placements have been made even as the company is significantly reducing headcount. We are proactively engaging with our valued customers to share with them our objectives and to invite feedback. Astrapak aspires to be a packaging partner of choice on fair and sustainable terms and this forms an integral component of our improvement agenda. Despite shortcomings the company has important strengths, not least generally modern production equipment and IT systems, an established country-wide presence with leading market positions, the capability to supply to internationally benchmarked norms for multinational customers, and a sound financial position. Important initiatives in respect of commonality in pricing and procurement coordination were rolled out during the period. It is expected that much better supply chain productivity will reap a useful improvement in profitability and market competitiveness in future. The market continues to be characterised by subdued pricing power and the challenge of recovering rising input costs such as polymer and electricity. Pricing is also influenced by customer procurement preferences such as multi-national tendering and international benchmarking. Occasional disruptive tactics are employed by some players to gain short term volume advantage at the expense of sustainable margin. Nevertheless, Astrapak is a responsible manufacturer at the forefront of plastics packaging technology and scored some important contractual awards during the period from domestic and multinational fast moving consumer goods customers. Astrapak Rigids volumes increased by 15,1% to 25 550 tons compared with the corresponding period in the previous financial year. Astrapak Flexibles volumes declined by 33,1% to 10 997 tons, a consequence of the damaging and disruptive fire at East Rand Plastics earlier in the calendar year and a deliberate decision to exit certain businesses as part of the Flexibles strategy. Astrapak Flexibles shall therefore be a smaller but more profitable segment than in the past. Volumes in total decreased by 5,4% to 36 547 tons. Average selling prices in Rigids were in line with the comparative period last financial year and the average selling price for Flexibles increased by just over 9,4%. With the insurance claims process for the fire at East Rand Plastics finalised, work commenced late in the reporting period to begin repositioning Astrapak Flexibles in line with the new group structure and strategy. East Rand Plastics had accounted for almost half of Astrapak Flexibles turnover and thus a successful resolution of the insurance claim was necessary before a proper optimisation plan could be executed. Packaging Consultants was discontinued and the premises are being transferred to a third party. The productive asset base and important skills are being distributed within the Astrapak Flexibles segment. We will not spend money on assets that will not perform or not help us achieve desired returns. The business of Alex White & Co was disposed of as a going concern to Tadbik Pack SA (Pty) Limited (“Tadbik”) on the basis of a vendor loan to Tadbik in the amount of R 7,6 million. The loan, which attracts prime rate of interest, is payable in 36 equal monthly instalments. Security is provided by the holding company of Tadbik. Within the Astrapak Rigids segment, the Moulding division produced a pleasing result for the six month period that was ahead of budget. The  Cinqplast-Plastop Denver site in Gauteng was rationalised with injection moulding equipment consolidated on one site in Pinetown, (R‘000) % Notes change CONTINUING OPERATIONS Revenue Cost of sales 9 Audited Unaudited six months financial year ended ended 28 February 31 August 20131 20121 1,2 1 222 419 (970 133) 1 207 969 (914 992) 2 454 380 (1 899 674) (13,9) 252 286 (102 875) (138 009) 32 108 292 977 (92 844) (135 298) 6 067 554 706 (198 915) (300 317) 70 928 (38,6) 43 510 (35 099) 70 902 — 126 402 115 210 (88,1) 8 411 6 674 (16 841) 70 902 3 843 (18 828) 241 612 8 087 (35 393) (Loss)/profit before taxation Taxation (103,1) (1 756) (1 897) 55 917 (16 197) 214 306 (43 903) (Loss)/profit for the period from continuing operations (109,2) (3 653) 39 720 170 403 Gross profit Distribution and selling costs Administrative and other expenses Other items of income and expenditure Profit from operations before exceptional items Exceptional items 10 Profit from operations Investment income Finance costs 11 DISCONTINUED OPERATIONS Loss for the period from discontinued operations 12 (177,3) (15 935) (5 746) (21 829) (157,7) (Loss)/profit for the period (19 588) 33 974 148 574 Other comprehensive income — Attributable to: Ordinary shareholders of the parent (123,2) – (Loss)/profit for the period from continuing operations 244 346 (30 129) 130 118 219 226 26 108 145 283 20 905 (35 099) 26 108 — 30 073 115 210 (15 935) — (5 746) 109 756 (21 829) 95 772 5 682 4 859 5 374 8 238 11 369 13 751 (113,6) (19 588) 143 730 (247,3) (24,9) 16,9 102,1 (153,9) (175,0) (11,7) (13,2) 21,7 (4,8) (247,3) (24,9) 16,9 (11,7) (13,2) 21,7 (4,8) 120,2 (18,1) 5 682 378,80 13 – continuing operations – discontinued operations 5 374 358,30 11 369 757,93 Notes (R‘000) Restated for classification of Packaging Consultants as a discontinued operations and correction of revaluation to August 2012 comparatives. Please refer to note 2 and 12. 1 Reconciliation of headline earnings % Notes change (Loss)/profit for the period attributable to ordinary shareholders (248,0) Unaudited six months ended 31 August 2013 Unaudited six months ended 31 August 2012 Audited financial year ended 28 February 2013 Headline (loss)/earnings adjustments – Loss on exercise of options – Reversal of insurance proceeds – Impairment of property, plant and equipment – (Profit)/loss on disposal of property, plant and equipment – Total tax effect of adjustments – Total non-controlling interest share of adjustments (30 129) 20 362 123 454 (14 194) (15 935) – continuing operations – discontinued operations 26 108 (5 746) 145 283 (21 829) — 23 333 11 766 (1 277) (7 314) — — — — 507 (143) — 265 — 153 263 (291 604) 26 913 (765) (117,5) (3 621) 20 726 Opening balance Comprising: (51,2) (187,6) 12 907 (16 528) 26 472 (5 746) 30 126 (18 600) (117,4) (3,0) 17,2 9,6 (51,4) (185,4) 10,7 (13,7) 22,0 (4,8) 24,9 (15,3) (117,4) (3,0) 17,2 10,7 (13,7) 22,0 (4,8) 24,9 (15,3) 13 – continuing operations – discontinued operations % Notes change Unaudited six months ended 31 August 2013 Unaudited six months ended 31 August 2012 Audited financial year ended 28 February 2013 (10,9) 1 301 951 1 461 895 1 308 371 1 097 505 117 118 27 932 59 396 1 251 337 117 118 42 952 50 488 970 676 802 139 307 749 493 088 169 839 318 294 472 748 11 097 281 515 757 394 27 227 4 21,0 Inventories Trade and other receivables Cash and cash equivalents 6 5 Assets classified as held-for-sale 7 8 598 13 775 30 174 Total assets 0,1 2 281 225 2 277 809 2 404 681 Equity and liabilities Total equity 2,9 1 194 743 1 161 320 1 254 265 998 121 142 590 54 032 947 759 142 590 70 971 1 048 584 142 590 63 091 456 696 518 500 493 512 273 966 5 441 177 289 316 962 6 644 194 894 286 894 5 441 201 177 Equity attributable to ordinary shareholders of the parent Preference share capital and share premium Non-controlling interest Non-current liabilities (11,9) Long-term interest-bearing debt Long-term financial liabilities Deferred taxation liabilities Current liabilities Total equity and liabilities 199 502 762 221 18 757 (4 937) — (150 120) 1 048 584 142 590 63 091 816 811 142 590 52 602 825 423 142 590 52 602 (19 588) (5 682) — (36 000) 1 053 — — — 695 33 974 (5 374) — — 10 131 — (1 707) 109 756 2 537 148 574 (11 369) (10 500) — 7 238 2 673 (504) 95 772 1 766 1 194 743 1 161 320 1 254 265 199 502 834 516 21 218 (5 441) 95 772 (147 446) 199 502 773 971 21 294 (6 644) 109 756 (150 120) 199 502 885 675 20 523 (5 441) 95 772 (147 447) 998 121 142 590 54 032 947 759 142 590 70 971 1 048 584 142 590 63 091 1 194 743 Closing balance Comprising: Ordinary share capital and premium Retained income Capital reserve Non-controlling put options Revaluation reserve Treasury shares 1 161 320 1 254 265 8 Equity attributable to ordinary shareholders of the parent Preference share capital and premium Non-controlling interest Total equity Condensed consolidated statement of cash flows Unaudited six months ended 31 August 2013 % Notes change (R‘000) Unaudited six months ended 31 August 2012 Audited financial year ended 28 February 2013 Cash generated from operations Decrease/(increase) in working capital Net interest and taxation paid (60,0) 52 829 302 510 (21 789) 132 179 26 348 (32 011) 459 862 (281 967) (45 390) Net cash inflow from activities before distributions to shareholders Dividend distribution to all shareholders 163,6 333 550 (6 543) 126 516 (5 267) 132 505 (21 248) 169,7 327 007 121 249 111 257 Capital expenditure Net movement of investments, subsidiaries and non-controlling interests Proceeds on disposal of property, plant and equipment (62 694) (37 936) 13 363 (69 855) 10 131 14 979 (149 232) 10 226 43 476 Net cash outflow from investing activities (87 267) (44 745) (95 530) Net cash outflow from financing activities (27 996) (62 277) (57 036) Net increase/(decrease) in cash and cash equivalents 211 744 14 227 (41 309) Net cash and cash equivalents at the beginning of the period (44 439) (3 130) (3 130) 167 305 11 097 (44 439) Net cash and cash equivalents at the end of the period 6 1 407,7 Condensed consolidated segmental analysis Rigids Flexibles Total continuing operations Revenue for segment 2013 974 550 359 153 1 333 703 89 039 1 422 742 2012 843 142 470 029 1 313 171 108 394 1 421 565 Transactions with other operating segments of the Group 2013 (80 853) (30 431) (111 284) (6 713) (117 997) 2012 (66 238) (38 964) (105 202) (7 686) (112 888) 2013 893 697 328 722 1 222 419 82 326 1 304 745 2012 776 904 431 065 1 207 969 100 708 1 308 677 Profit from operations before exceptional items 2013 37 307 6 203 43 510 (21 864) 21 646 2012 60 506 10 395 70 901 (6 728) 64 173 Total assets 2013 1 510 366 770 859 2 281 225 — 2 281 225 2012 1 287 274 990 535 2 277 809 — 2 277 809 2013 576 771 509 711 1 086 482 — 1 086 482 541 841 574 648 1 116 489 — 1 116 489 2013 57 804 4 890 62 694 — 62 694 2012 62 291 7 564 69 855 — 69 855 2013 38 461 13 310 51 771 3 138 54 909 2012 40 591 15 870 56 461 4 399 60 860 (R‘000) Revenue for external customers Capex 5,3 629 786 597 989 634 987 6 481 270 4 179 141 803 2 534 475 508 4 527 117 954 — 418 615 5 041 139 665 71 666 7 — — 21 917 2 281 225 2 277 809 2 404 681 0,1 Depreciation Detail on the turnaround strategy, implementation thereof and financial objectives were comprehensively dealt with by Mr Robin Moore in his Chief Executive’s report in the 2013 integrated annual report published on 17 July. These financial objectives, inter alia, include a 15% return on capital employed over the course of a business cycle, recommencement of dividends to shareholders, and an operational performance that is reflected in an improved stock market capitalisation. Our qualitative objectives for the way we deal with people and how we consume natural resources are no less important and will also shape the financial outcomes. This is not an easy year for Astrapak. We are instituting big changes in a difficult market and these can be unsettling at a time when we also have to keep the businesses delivering superior quality products on time to customers. The first half result is mediocre and we expected that. We are sticking to our strategy, implementation is on track and we are building for improved returns. As the team moves into the second phase of the recovery plan the Group will look to many of the initiatives completed in phase 1 to start delivering additional value, both from a qualitative and quantitative perspective. Astrapak sincerely values the support of all stakeholders. Changes to the Board There were no changes to the Board during the period under review. Mr Paul Botha resigned as a member of the Audit Committee. Significant changes in shareholding Shareholders are referred to the relevant stock exchange news service announcements. Accounts under the management of both Coronation Asset Management (Pty) Ltd and Regarding Capital Management (Pty) Ltd have purchased shares from Royal Bafokeng (Pty) Ltd to the extent that each have respective holdings in Astrapak of 29,33% and 10,14%. Dividend No 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. For and on behalf of the Board Phumzile Langeni Chairman Robin Moore Chief Executive Officer Discontinued operations Total Group 2. Comparative figures The comparative figures have been restated due to the classification of Packaging Consultants (a division of Astrapak Manufacturing Holdings (Proprietary) Limited) as a discontinued operations and for for the correction of revaluation impact on comparatives for the 6 months ended 31 August 2013. Unaudited six months ended 31 August 2013 Unaudited six months ended 31 August 2012 Audited financial year ended 28 February 2013 3. Property, plant and equipment Opening net carrying amount Additions Classified as assets held-for-sale Revaluation of properties Disposals Impairment Depreciation 1 104 721 62 694 — — (3 235) (11 766) (54 909) 1 265 131 69 855 (6 700) (604) (15 485) — (60 860) 1 140 169 149 232 (22 956) 117 754 (11 732) (144 608) (123 138) Closing net carrying amount 1 097 505 1 251 337 1 104 721 62 694 69 855 149 232 69 333 20 050 49 893 17 326 14 409 19 254 51 733 50 476 50 293 7 651 12 — 12 — 12 59 396 50 488 50 305 169 839 (2 534) 11 097 — 27 227 (71 666) 167 305 11 097 (44 439) 30 174 — — — (21 576) — — 7 075 — — — — — 6 700 7 075 10 069 2 720 9 (4 000) (8 655) 22 956 (R‘000) Capital expenditure for the period Capital commitments – contracted not spent – authorised not contracted 4. Loans and investments Vendor loan to Afripack Consumer Flexibles (Proprietary) Limited in terms of Flexibles disposal transaction Vendor loan to Tadbik Pack SA (Proprietary) Limited on disposal of Alex White Co operation Unlisted investments Loans and investments at end of the period 5. Inventories Inventories amounting to R92 615 (February 2013: R38 451) are carried at net realisable value. 6. Cash and cash equivalents Cash and cash equivalents Bank overdrafts Net cash and cash equivalents at the end of the period 7. Assets held-for-sale and liabilities relating to assets held-for-sale Assets held-for-sale relates to City Packaging (a division Astrapak Manufacturing Holdings (Proprietary) Limited) assets and Astrapak Property Holdings (Proprietary) Limited property which is in the process of being disposed of. Assets held-for-sale/sold consists of the following: Opening balance as at the beginning of the period Inventory Trade and other receivables Cash and cash equivalents Assets previously held-for-sale disposed of Impairment of plant and equipment previously classified as held-for sale Property, plant and equipment classified as held-for sale 8 598 13 775 30 174 Liabilities relating to assets held-for-sale/sold consist of the following: Long-term loans Trade creditors Bank overdrafts Assets held-for-sale at the end of the period — — — — — — 8 115 10 805 2 997 Liabilities relating to assets held-for-sale at the end of the period — — 21 917 1 333 703 (111 284) 1 313 171 (105 202) 2 704 486 (250 106) 1 222 419 1 207 969 2 454 380 36 547 38 637 81 952 (23 333) — (11 766) — — — 263 860 (56 308) (92 342) 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” charges of R0,7 million (February 2013: R1,8 million). 9. Revenue Revenue for the Group Transactions with other entities within the Group Revenue for external customers (35 099) — 115 210 11. Profit from operations Profit from operations for continuing operations are arrived at after taking the following into account: Net profit/(loss) on disposal of property, plant and equipment Depreciation IFRS 2 share-based payment expenses Net loss on exercise of share options Exceptional items 453 51 771 695 — (507) 56 461 1 810 — 27 615 114 555 1 766 265 12. Loss for the period from discontinued operations The Group classified Packaging Consultants a division of Astrapak Manufacturing Holdings (Proprietary) Limited, as discontinued operations as part of its strategy to rationalise the Flexibles division. Previous years discontinued operations relates to City packaging and Ultrapak (both divisions of Astrapak Manufacturing Holdings (Proprietary) Limited) Revenue Cost of sales 82 326 (84 504) 100 708 (97 401) 181 503 (180 520) Gross (loss)/profit Distribution and selling costs Administrative and other operating expenses (2 178) (5 376) (14 310) 3 307 (7 324) (2 711) 983 (13 708) (8 380) Loss from operations before exceptional items from discontinued operations Exceptional items (21 864) — (6 728) — (21 105) (5 614) Loss from operation from discontinued operations Investment income Finance costs (21 864) 13 (1 213) (6 728) 28 (2 516) (26 719) 25 (4 008) (23 064) (9 216) (30 702) 7 129 3 470 8 873 Loss for the period from discontinued operations (15 935) (5 746) (21 829) The net cash flows incurred by discontinued operations for the period are represented below: Operating cash inflow/(outflow) Investing cash inflow Financing cash (outflow)/inflow 12 390 3 620 (17 209) (11 585) 8 296 7 405 7 941 11 413 (17 113) Net (decrease)/increase in cash and cash equivalents from discontinued operations (1 199) 4 116 2 241 Taxation Unaudited six months ended 31 August 2013 Unaudited six months ended 31 August 2012 Audited financial year ended 28 February 2013 Number of ordinary shares in issue ('000) Weighted average number of ordinary shares in issue ('000) Fully diluted weighted average number of ordinary shares in issue ('000) Number of preference shares in issue ('000) Net asset value per share (cents) Net tangible asset value per share (cents) Closing share price (cents) Market capitalisation (R million) Net interest-bearing debt as a percentage of equity (%) Net debt 135 131 121 016 121 024 1 500 943 846 610 824 21,8 248 464 135 131 120 475 120 475 1 500 905 808 677 915 39,5 430 463 135 131 120 836 120 837 1 500 986 889 725 980 39,5 470 998 Long-term interest-bearing debt Short-term interest-bearing debt Cash and cash equivalents Bank overdraft 273 966 141 803 (169 839) 2 534 323 606 117 954 (11 097) — 286 894 139 665 (27 227) 71 666 Interest cover (before exceptional items) Net working capital days Contingent liabilities Number of employees 4,3 46,9 4 574 3 422 4,2 43,4 6 085 3 931 7,6 45,4 7 635 3 975 – continuing operations – discontinued operations 3 267 155 3 706 225 3 728 247 Earnings before interest, taxation, depreciation and amortisation (EBITDA) – total Group (Loss)/earnings before interest, taxation, depreciation and amortisation (EBITDA) – discontinued operations 10. Exceptional items Insurance (reversal)/income relating to property, plant and equipment destroyed in fire at East Rand Plastics Impairment of property, plant and equipment relating to fire at East Rand Plastics Impairment of property, plant and equipment Loss before taxation from discontinued operations Supplementary information Earnings before interest, taxation, depreciation and amortisation (EBITDA) – continuing operations Denver 27 September 2013 1. Basis of preparation and accounting policies These condensed consolidated annual financial statements for the half year ended 31 August 2013 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 Gene Lapan (CA)SA, Group Financial Director. 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 2013. Volume (in '000 tons) 1 066 136 3 Current assets Liabilities relating to assets held-for-sale 199 502 753 609 18 757 (4 937) — (150 120) 8 1 104 721 117 118 36 227 50 305 Assets Non-current assets Trade and other payables Shareholders for preference dividends Short-term interest-bearing debt Bank overdrafts 1 020 615 Movements: (Loss)/profit for the period Preference dividends paid Ordinary dividends paid to non-controlling interest Acquisition of non-controlling interest Contributions made by non-controlling interest Reduction in treasury shares due to exercise of options Adjustment of fair value of put options Revaluation reserve Share-based payment expense for the period Total liabilities Condensed consolidated statement of financial position Property, plant and equipment Goodwill Deferred taxation assets Loans and investments 1 012 003 199 502 885 675 20 523 (5 441) 95 772 (147 447) Equity attributable to ordinary shareholders of the parent Preference share capital and premium Non-controlling interest 9,6 (51,4) (185,4) 13 – continuing operations – discontinued operations (R‘000) 1 254 265 Ordinary share capital and premium Retained income Capital reserve Non-controlling put options Revaluation reserve Treasury shares 11 526 – continuing operations – discontinued operations Fully diluted headline (loss)/earnings per ordinary share (cents) Notes Audited Unaudited six months financial year ended ended 28 February 31 August 2013 20121 2012 Headline (loss)/earnings attributable to ordinary shareholders Headline (loss)/earnings per ordinary share (cents) Unaudited six months ended 31 August 2013 Net cash inflow from operating activities Preference dividend paid and accrued Preference dividend per preference share (cents) (R‘000) Prospects 102,1 (153,9) (175,0) 13 – continuing operations – discontinued operations Headline earnings from continuing operations are R12,9 million, equal to 10,7 cents per share and represent a decline of 51,4% compared with the 22,0 cents per share reported for the six month period ended 31 August 2012. The result, whilst down, is substantially better than budgeted for. Net debt reduced from R471 million as at 28 February 2013 to R248,5 million as at 31 August 2013, a decline of R222,5 million. The debt to equity ratio is 21,8% compared with 39,5%, mainly due to the insurance proceeds. Net cash inflows from operating activities at R333,5 million were distorted by insurance proceeds.Net working capital of R314,3 million is below budget and only 2,7% higher than in the prior year. Astrapak is mindful of the need to husband cash resources carefully at a time when profits have decreased and it is difficult to release meaningful extra cash from working capital. It is anticipated that the normal seasonal pattern of improved second half cash collection will pertain for the year. Revenue from continuing operations increased by 1,2% to R1 222 million, a mix of 5,4% volume decline and 6,6% average selling price increase. Revenue at Astrapak Rigids increased by 15,1% to R893,7 million and was in line with volume growth. Revenue at Astrapak Flexibles decreased by 23,7% and reflected a mix of volume decrease to the extent of 33,1% and a positive average price effect of 9,4%. Gross profit from continuing operations decreased 13,9% to R252,3 million with the main contributor being the increased cost of workings and loss of profits of R23,9 million at East Rand Plastics. This amount has been reimbursed by the insurers but reflected as other items of income and expenditure and so on an adjusted basis the decrease is 5,7%. Profit before interest, tax depreciation and amortization from continuing operations of R95,3 million decreased by 25,2% with the margin declining to 7,8% from 10,5%. The depreciation charge of R51,8 million is 8,3% lower and with capital expenditure of R62,7 million also down, by 10%, investment in plant and equipment is being increasingly scaled back and prioritised to align with group return objectives and key account management imperatives. The bulk of investment, R57,8 million, was allocated Astrapak Rigids with only R4,9 million to Astrapak Flexibles. Profit from continuing operations before exceptional items decreased by 38,6% to R43,5 million which represented a group trading margin of 3,6% compared with 5,9% in the corresponding period. Astrapak Rigids had a decrease in segment profit of 38,3% to R37,3 million, with the trading margin decreasing to 4,2% from 7,8%. Astrapak Flexibles segment profit declined by 40,3% to R6,2 million and the trading margin decreased to 1,9% from 2,4%. An exceptional loss in the amount of R35,1 million is recorded and includes one-off items of an insurance and impairment nature related to the Flexibles portfolio. A provision for insurance proceeds in the amount of R295,4 million was previously raised and final settlement in the amount R311,4 million, net of value added tax on proceeds, was agreed with no restrictions on utilisation. A further R16 million was thus recognised. This amount is made up of reversal of an over-accrual of R23,3 million and R39,3 million received for business interruption at East Rand Plastics. Assets in the amount of R11,8 million relating to Packaging Consultants were impaired. Net finance costs from continuing operations declined by 32,2% to R10,2 million. This equates to a PBITDA to net interest cover ratio of 9,3x. A pre-tax loss of R23 million and a net loss – after a tax credit of R7,1 million – of R15,9 million was recorded by the discontinued operations as represented by Packaging Consultants. Total loss attributable to shareholders is R30,1 million, equal to 24,9 cents per share of which 11,7 cents is attributable to continuing operations and 13,2 cents to the discontinued operations. 120,2 (18,1) Preference shareholders of the parent Non-controlling interest Total comprehensive (loss)/income for the period Financial review 244 346 – Loss for the period from discontinued operations – Revaluation of land and buildings (net of tax) Fully diluted (loss)/earnings per ordinary share (cents) 95 772 143 730 (14 194) Profit for the period from continuing operations before exceptional items Exceptional items (Loss)/earnings per ordinary share (cents) 109 756 (19 588) Total comprehensive (loss)/income for the period Kwa-Zulu Natal as part of strategy to develop a dedicated closures facility. Efficiency benefits, as envisaged in the strategic review, are already apparent and a major improvement in profitability is expected. Progress has been made securing long term supply contracts within the mouldings customer base. The PET division within the Astrapak Rigids segment performed below expectation due to weak seasonal demand, the temporary effects of a facility reorganisation at a major customer and the effects of cut-throat competitor pricing in the Western Cape. Selling prices were discounted as part of a strategic decision to align with key customers to secure long term offtake. An improved result was recorded by the Forming division within Astrapak Rigids. The strategic review has highlighted further opportunities for optimising throughput. Condensed consolidated statement of changes in equity Condensed consolidated statement of comprehensive income Unaudited six months ended 31 August 2013 Unaudited interim results for the six months ended 31 August 2013 95 280 127 363 240 958 76 554 125 032 228 437 (18 726) (2 331) (12 521) 13. (Loss)/earnings per ordinary share and headline (loss)/earnings per ordinary share – basic and fully diluted (Loss)/earnings per ordinary share is calculated by dividing the (loss)/profit attributable to ordinary shareholders of the parent by the weighted average number of shares in issue over the period that the attributable (loss)/profit was generated. Headline (loss)/earnings per ordinary share is calculated by dividing the headline (loss)/earnings attributable to ordinary shareholders of the parent by the weighted average number of shares in issue over the period that the headline (loss)/earnings were generated. Fully diluted (loss)/earnings and headline (loss)/earnings 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 other facts or circumstances has come to light between 31 August 2013 and the date of this report. For more information on our business please go to: www.astrapak.co.za Board of Directors: P Langeni* (Chair), R Moore (Chief Executive Officer), M Diedloff (Group Managing Director), G Lapan (Group Financial Director), P C Botha*, C McDougall*, G Z Steffens*, G P Duda* *Non-executive Company Secretary: S Ngwabi 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 (Pty) Ltd › Ground Floor, 70 Marshall Street, Johannesburg, 2001 PO Box 61051, Marshalltown, 2107 Sponsor: Rand Merchant Bank (a division of FirstRand Bank Limited) Operating entities Flexibles Division: Barrier Film Converters › East Rand Plastics › Knilam Packaging › Packaging Consultants › Peninsula Packaging › Plusnet/Geotex › Saflite Rigids Division: Cinqpet › Consupaq › Hilfort › JJ Precision Plastics › Marcom Plastics › PAK 2000 › Plastech › Plastform › Plastop › Plastop (KwaZulu-Natal) › Thermopac › Weener – Plastop

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