WNH
WNH - Winhold Limited - Unaudited condensed interim consolidated results of the
group for the six months ended 31 March 2012
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 2012
Condensed Consolidated Statement Of Comprehensive Income
Year ended Six Six Six
30 months months Months
September ended 31 ended ended 31
2011 March 30 March
2012 Sept.2011 2011
R'000 R'000
R'000 R'000
990 308 Revenue 508 152 476 643 513 665
28 046 Operating profit 15 468 174 27 872
15 556 Investment income 6 754 7 799 7 757
(2 500) Impairments - (2 500) -
(22 842) Net finance costs (12 058) (9 897) (12 945)
18 260 Profit /(loss) before 10 164 (4 424) 22 684
taxation
(1 301) Taxation (1 789) 3 229 (4 530)
431 Share of associates PAT 639 53 378
17 390 Profit /(loss) after tax 9 014 (1 142) 18 532
17 390 Total comprehensive income 9 014 (1 142) 18 532
/(loss)for the period
(752) Attributable to non- 811 1 457 (2 209)
controlling interests
16 638 Attributable to equity 9 825 315 16 323
holders of the parent
13.26 Earnings and diluted 7.83 0.25 13.01
earnings per ordinary
share ( cents )
15.22 Headline and diluted 7.78 2.30 12.92
headline earnings per
ordinary share ( cents )
125 506 Weighted average ordinary 125 506 125 506 125 506
shares adjusted for
treasury stock (000's)
126 215 Total ordinary shares 126 215 126 215 126 215
issued ( 000's )
13 737 Total depreciation and 8 466 6 167 7 570
amortisation
41 783 EBITDA 23 934 6 341 35 442
Reconciliation of headline
earnings
16 638 Comprehensive Income for 9 825 315 16 323
the period
2 500 Impairments - 2 500 -
(55) Profit on disposal of (76) 95 (150)
fixed assets
15 Taxation effects of the 21 (27) 42
above
19 098 Total headline earnings 9 770 2 883 16 215
Condensed Consolidated Statement of Financial Position
Year Six Six Six
ended months months Months
30 ended ended ended 31
September 31 30 Sept. March
2011 March 2011 2011
2012
R'000
R'000 R'000 R'000
ASSETS
159 726 Fixed Assets 159 256 159 726 149 902
138 467 Loans and Receivables 117 102 138 467 137 000
2 318 Investments in associates 2 318 2 318 2 265
24 041 Goodwill 24 041 24 041 26 541
371 121 Current assets 398 669 371 121 349 133
155 047 - Inventory 175 502 155 047 150 966
170 032 - Receivables 176 215 170 032 157 127
32 158 - Unlisted investments 35 814 32 158 32 158
2 704 - Taxation overpaid 2 724 2 704 (643)
2 615 - Non current assets held 2 260 2 615 2 946
for sale
8 565 - Bank and cash 6 154 8 565 6 579
695 673 Total assets 701 386 695 673 664 841
EQUITY AND LIABILITIES
122 793 Ordinary share capital and 122 793 122 793 122 793
premium
130 757 Retained earnings 131 497 130 757 130 443
253 550 Equity attributable to 254 290 253 550 253 236
owners of the parent
18 372 Non-controlling interests 17 561 18 372 19 829
271 922 Total Equity 271 851 271 922 273 065
Non-current liabilities
164 269 - Interest bearing 141 090 164 269 160 621
20 743 - Interest free 29 550 20 743 28 552
3 923 - (Net) deferred taxation 3 755 3 923 4 913
234 816 Current liabilities 255 140 234 816 197 690
37 448 Interest bearing 56 537 37 448 37 383
- Bank overdraft
31 278 - Short term borrowings 36 032 31 278 33 200
Current liabilities
166 090 Interest free 162 571 166 090 127 107
- Payables and provisions
695 673 Total equity and 701 386 695 673 664 841
liabilities
Supplementary information
1 240 Capital Commitments 2 271 1 240 9 700
24 594 Capital expenditure 7 135 15 796 8 798
232 995 Interest bearing borrowings 233 659 232 995 231 204
18 196 Interest earning deposits 17 944 18 196 14 707
202.0 Net asset value per 202.6 202.0 201.8
ordinary share ( cents )
24 041 Total intangible assets 24 041 24 041 26 567
182.9 Tangible net asset value 183.46 182.87 180.60
per ordinary share( cents )
7.5 Equity (%) 7.7 2.3 12.8
2.4 Return on Assets (%) 2.4 (0.3) 5.5
Condensed consolidated statement of changes in equity
Year ended Six Six Six
30 months months Months
September ended ended ended 31
2011 31 30 Sept. March
March 2011 2011
2012
R'000 R'000 R'000 R'000 R'0
R'000 R'0 00
00
Equity
attributable to
holders of the
parent
249 772 Opening balance 253 550 249 772 249 772
16 638 Total 9 825 16 638 16 323
comprehensive
income for the
period
(12 860) Dividend paid (9 085) (12 860) (12 859)
253 550 Balance at the 254 290 253 550 253 236
end of the year
Condensed Statement of Consolidated Cash Flows
Year ended Six Six Six
30 months months Months
September ended ended ended 31
2011 31 30 Sept. March
March 2011 2011
2012
R'000 R'000 R'000 R'000
8 071 Cash flow from operating (21 26 441 (18 350)
activities 928)
57 389 Profit before interest, 30 711 14 231 43 158
tax and non-cash items
(9 907) Changes in working capital (21 31 997 (24 736)
475)
(23 259) Net finance costs (20 (18 679) (21 728)
740)
378 Dividends from associates 639 - 378
(3 670) Taxation paid (1 978) (1 108) (2 562)
(12 860) Dividends paid (9 085) - (12 860)
(23 381) Cash flow used in 10 144 (17 229) (6 152)
investing activities
(20 859) Net Investment in fixed (7 565) (15 762) (5 097)
assets
(2 522) Investment in loans 17 709 (1 467) (1 055)
receivable
(7 911) Cash flow used in (9 716) (7 291) (640)
financing activities
11 926 Interest bearing 10 453 10 029 1 897
borrowings raised
(24 575) Interest bearing (28 (9 501) (15 074)
borrowings repaid 878)
4 738 Interest Free Borrowings 8 709 (7 819) 12 537
Raised
(23 221) Net (decrease)/increase in (21 1 921 (25 142)
cash 500)
CONDENSED CONSOLIDATED STATEMENT OF 6 MONTHLY SEGMENT RESULTS
Mining Consumables Industrial Flexible Plastics
Consumables
First Second First Second First Half 2012 Second
Half 2012 Half Half Half Half 2011
2011 2012 2011
R'000 R'000 R'000 R'000 R'000 R'000
Revenue 132 255 151 991 71 276 61 142 304 621 275 579
Operating (1 147) (4 518) 1 634 (557) 13 908 3 839
Profit
Depreciat 534 448 341 300 7 496 5 340
ion
Capital 2 059 291 635 247 3 983 15 237
Expenditu
re
Total 124 998 110 866 65 074 49 480 349 763 328 569
Assets
Total 70 621 67 758 27 961 26 577 245 077 194 418
Liabiliti
es
GROUP PROFILE
Winhold Limited ("Winhold") is a holding company with its main investments being
wholly owned subsidiaries Gundle Limited ("Gundle") and Inmins Limited
("Inmins").
Gundle comprises of two plastics manufacturing and distribution operations in
Gauteng and one in Swaziland, as well as a further five distribution centres in
the main coastal cities, Lowveld and Bloemfontein. 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.
Inmins comprises 18 strategically located operations (mainly trading) servicing
the mining and industrial sectors with a wide range of consumable and
maintenance products, and includes divisions specialising in hose, high pressure
mining backfill systems, chain and sprocket systems and conveyor belting.
REVIEW OF RESULTS
The group results are significantly better than the second half of last year
with profits of R9,8 million compared to a breakeven result. Market conditions
remained weak and previously reported performance enhancements are still in
progress. The Group's results are 40% down on the first 6 months of last year
Borrowings increased to fund investments in inventories for large contracts and
to improve service levels to customers in the face of fierce competition and to
offset plastic raw material shortages from a key plastics supplier.
The first R21.2 million repayment of the long term bank loans was made in
February. The balance of the R28.8 million of loans repaid related to fixed
asset finance repayments. R17.7 million of unlisted investments were redeemed
during the period and the residual outstanding were restructured so that the
Group received the full outstanding preference dividend in February, and, as a
result, R8.7 million was deferred to future periods and is disclosed as
"interest free borrowings".
OPERATIONAL REVIEWS
Gundle
A weak consumer economy, fierce competition, an inability to pass on price
increases, and supply problems with raw material polymers resulted in customers
driving prices down which negatively affected the Gundle manufacturing
operations. The Gundle businesses of Geosynthetics and API Springs have,
however, performed better than expectation and the comparative period's losses
in Swaziland have been reduced.
Operational management have committed to a strategy to recover lost margins,
reduce costs and improve factory efficiencies which are starting to show
positive results.
Inmins
The Inmins Mining and Industrial branches also performed above expectation in
the period under review despite the strikes at key customers and the weak
consumer market. The value add division did not meet budgeted sales volumes
which negatively affected the group's results.
PROSPECTS
The Group has already implemented several strategic and operational initiatives
to address the negatives of the last 12 months and the benefits of these are
already being seen. The Group does not see a strengthening in the market in the
next 12 months and benefits will be derived from cost cutting and new business
areas (such as increased exports to sub-Sahara Africa).
Gundle
Polymer raw material supply issues appear to have been resolved and new import
channels provide for alternative supply sources. Staff training and up-
skilling, cost reductions and factory efficiency improvements will continue to
improve cost efficiencies but a recovery in the market is not expected in the
next year.
Inmins
New products being rolled out will add to the product offering and better
utilisation of the infrastructure footprint.
BASIS OF PREPARATION AND ASSURANCE
These condensed consolidated preliminary Group results have been prepared in
accordance with the recognition and measurement criteria of International
Financial Reporting Standards ("IFRS") and the AC500 standards required by
International Accounting Standard 34 (" IAS 34"), and in compliance with the
Companies Act, as amended, and the Listings Requirements of the JSE Limited (
"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 CFO, Mr GM Scrutton 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 2011 were audited and the auditor's unqualified audit
report is included in the Annual Financial statements distributed to
Shareholders' in December 2011.
CORPORATE GOVERNANCE
The Group subscribes to the value 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.
CONTINGENT LIABILITY, CAUTIONARY AND SUBSEQUENT EVENTS
There has been no change in the previously reported contingent liabilities.
Other than the strategic transaction being discussed which was reported on SENS
on 11 May 2012, and is still in progress the directors are not aware any
material post balance sheet events between the balance sheet date and the date
of this report.
Accordingly, shareholders are advised to exercise caution when dealing in the
Company`s securities until a further announcement is made.
DIRECTORATE
There has been no change in the board of directors during the 6 month period
under review.
DIVIDENDS
In line with past practice, no interim dividend has been declared. The prior
year final dividend of 7.0 cents (2010: 10.0 cents ) per share was paid on
Monday 20 February 2012.
For and on behalf of the Board:
W A R WENTELER D B MOSTERT W FOURIE
CHAIRMAN DEPUTY CHAIRMAN CHIEF
EXECUTIVE OFFICER
Date: 23 May 2012
Directors :
WAR Wenteler (Chairman),
DB Mostert (Deputy Chairman)(Independent), W Fourie (CEO),
PJ Kruger, NP Mnxasana (Independent), PC Nash G M Scrutton (Financial) ( Non-
executive)
E-mail: enquiries@winhold.co.za
Auditors :
BDO South Africa Inc
Riverwalk Office Park
41 Matroosberg Road
Aslea Gardens, Pretoria, 0081
( Email : bdojhb@bdo.co.za )
Company Secretary and registered office:
G J O'Connor
884 Linton Jones Street, Industries East, Germiston
(PO Box 5324, Johannesburg 2000)
( Email : johnoc@inmins.co.za )
( Website: www.winhold.co.za )
Sponsor :
Arcay Moela Sponsors (Pty) Ltd.
Arcay House, 3 Anerley Road, Parktown, 2193
(PO Box 62397, Marshalltown, 2017)
( Email : dougg@arcaymoela.co.za )
Transfer Secretaries :
Computershare Investor Services (Pty) Ltd
70 Marshall Street, Johannesburg
(PO Box 61051, Marshalltown 2107)
( Email :www.computershare.com )
Date: 24/05/2012 07:23:01 Produced by the JSE SENS Department.
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