By
HDC
HDC
HDC - Hudaco Industries Limited - Audited preliminary
report for the year ended
30 November
2011
HUDACO INDUSTRIES
LIMITED
Incorporated in the Republic of South
Africa
Registration number
1985/004617/06
JSE Code: HDC ISIN:
ZAE000003273
AUDITED PRELIMINARY REPORT for the year ended 30
November
2011
Operating profit UP 42% to R426
million
Headline earnings per share UP 28% to
R10,24
Dividends UP 26% to R4,40 per
share
Results
Hudaco is a South African group that imports and
distributes branded engineering
consumables, power tools and security, automotive and
professional mobile radio
communication products. Its customer base is mainly
within the southern African
manufacturing, mining, construction, automotive
aftermarket and
security
industries. Adding value to the product sold by
offering technical
advice,
prompt availability and training is a key part of
Hudaco`s business model.
Sales of R3,2 billion for the year are up 29% on 2010,
whilst operating profit
is up 42% to R426
million.
Hudaco has delivered a good set of results this year.
Demand for our product
offering was reasonable throughout the year, but picked
up noticeably in the
second half of 2011. The renewed focus on acquisitions
also made a material
contribution to profits this year. All acquisitions
made over the past two years
are performing to or ahead of plan. Rand weakness from
September 2011 had little
impact on the 2011 results, but if it persists, it
could have a significant
positive impact on next year`s
earnings.
The Engineering Consumables segment continues to be the
core driver of profits
for the Hudaco group, delivering 63% of operating
profit this year - up 33% on
last year on sales of R2,2 billion. Demand from the two
key markets for this
segment, South African-based mining and manufacturing
was hindered
by
infrastructure constraints and managed only moderate
growth in 2011. However,
demand from mining customers in neighbouring countries
was noticeably higher.
The Consumer-related Products segment also performed
well, increasing operating
profit by 39% from sales of R1 billion. This segment
experienced strong demand
for power tools and professional digital radio
communication
equipment.
The group gross margin of 40% is much the same as last
year, but expenses
declined to 27% of sales from 28%. The net result was
that the operating profit
margin increased to 13,4% from 12,2% last
year.
Headline earnings per share of 1024 cents are up 28% on
last year. The group`s
dividend policy is to pay about 40% of headline
earnings annually. The final
dividend of 310 cents per share brings total dividends
declared in respect of
the 2011 financial year to 440 cents, which is a little
higher than 40% of
earnings and up 26% on last
year.
The financial position is healthy. Working capital
(inventories, receivables and
payables) increased as new businesses were brought on
board, but activity levels
are within our normal parameters. In the past year
Hudaco has acquired three
businesses at a cost of R251 million, of which R108
million has already been
paid. R143 million is still to be paid over the next
three years and
is
dependent on earn-out performances. The group has R169
million (last year: R262
million) cash on hand at year
end.
Prospects
Trading conditions for the group have improved over the
past year.
Rand
weakness, such as occurred in the last quarter of 2011,
has traditionally led to
increased activity by mines and local manufacturers and
this bodes well for
Hudaco`s Engineering Consumables segment`s prospects in
2012. Demand from mining
customers in neighbouring countries is expected to
remain strong. Demand for
power tools and digital communication equipment,
products in our
Consumer-
related Products segment, is expected to continue to be
strong, but the outlook
for the security products business remains weak. The
strong financial position
also gives plenty of ammunition for Hudaco to continue
to pursue its successful
acquisition
strategy.
Notwithstanding the economic uncertainties created by
the financial crises in
Europe and the USA, the board is confident that the
group is well positioned to
continue to grow earnings in the years
ahead.
Directorship
As reported on SENS, Mr Graham Gardiner retired with
effect from 31 July 2011
and Mrs Nene Molefi resigned with effect from 27
October
2011.
Declaration of final dividend No.
50
Ordinary dividend number 50 of 310 cents per share is
declared payable
on
Monday, 12 March 2012 to ordinary shareholders recorded
in the register at the
close of business on Friday, 9 March 2012. The
timetable for the payment of the
dividend is as
follows:
Last day to trade cum
dividend
Friday, 2 March
2012
Trading ex dividend
commences
Monday, 5 March
2012
Record
date
Friday, 9 March
2012
Payment
date
Monday, 12 March
2012
Share certificates may not be dematerialised or
rematerialised between Monday, 5
March 2012 and Friday, 9 March 2012, both days
inclusive. The
certificated
register will be closed for this
period.
Results presentation and annual general
meeting
Hudaco will host presentations on the financial results
in Johannesburg and Cape
Town on Friday, 27 January and Monday, 30 January 2012
respectively. Anyone
wishing to attend should contact Robin Benson at 011
657
5007.
The slides that form part of the presentation will be
available on the company`s
website from Tuesday, 31 January
2012.
The company`s 27th annual general meeting will be held
in the boardroom, at
Hudaco`s corporate offices situated at Building 9,
Greenstone Hill Office Park,
Emerald Boulevard, Greenstone Hill, Edenvale at 11:00
on Thursday, 22 March
2012. Further details on the company`s annual general
meeting will be included
in the integrated report that will be published on
www.hudaco.co.za during the
second week of February 2012 and will be posted to
shareholders on or about 20
February
2012.
Approval of financial
statements
The financial statements have been approved by the
board and abridged
for
purposes of this report. Grant Thornton has signed an
unqualified audit opinion
on the annual financial statements. Both the financial
statements and the
auditor`s opinion are available for inspection at the
company`s registered
office.
For and on behalf of the
board
RT
Vice
SJ
Connelly
Independent non-executive
chairman
Chief
executive
26 January
2012
Group statement of financial
position
30 Nov 30
Nov
R
million
2011
2010
ASSETS
Non-current
assets
2 939 2
700
Property, plant and
equipment
182
131
Investment in preference
shares
2 181 2
181
Goodwill
516
331
Intangible
assets
49
34
Deferred
taxation
11
23
Current
assets
1 598 1
348
Inventories
813
663
Trade and other
receivables
616
423
Cash and cash
equivalents
169
262
TOTAL
ASSETS
4 537 4
048
EQUITY AND
LIABILITIES
Equity
1 525 1
314
Interest of shareholders of the
group
1 494 1
287
Non-controlling
interest
31
27
Non-current
liabilities
2 306 2
280
Subordinated
debenture
2 181 2
181
Finance
leases
2
Amounts due to vendors of businesses
acquired
123
99
Current
liabilities
706
454
Trade and other
payables
586
420
Finance
leases
1
Amounts due to vendors of businesses
acquired
111
28
Taxation
8
6
TOTAL EQUITY AND
LIABILITIES
4 537 4
048
Group statement of comprehensive
income
Year
Year
ended
ended
30 Nov
%
30
Nov
R
million
2011
change
2010
Turnover
3 182
29 2
458
- Ongoing
operations
2 601
9
2
393
- Acquired in 2010 and
2011
581
65
Cost of
sales
1
910
1
464
Gross
profit
1 272
28
994
Operating
expenses
846
694
Operating
profit
426
42
300
- Ongoing
operations
320
12
286
- Acquired in 2010 and
2011
106
14
Impairment of goodwill
and
22
intangible
assets
Profit before dividends received,
426
278
interest received and finance
costs
Dividends received on
preference
201
201
shares
Interest
received
4
17
Finance
costs
(247)
(235)
Profit before
taxation
384
261
Taxation
46
24
PROFIT FOR THE
YEAR
338
237
Other comprehensive
income
Movement on fair value of cash flow
(1)
hedges
TOTAL COMPREHENSIVE INCOME FOR THE
337
42
237
YEAR
Profit attributable
to:
Shareholders of the
group
325
234
Non-controlling
shareholders
13
3
338
237
Total comprehensive
income
attributable
to:
Shareholders of the
group
324
234
Non-controlling
shareholders
13
3
337
237
Headline earnings per share (cents) 1
024
28
800
Basic earnings per share
(cents) 1
026
38
745
Diluted headline earnings per share 1
010
784
(cents)
Diluted basic earnings per
share 1
012
730
(cents)
Reconciliation to headline
earnings
Profit attributable to shareholders
325
234
of the
group
Adjusted
for:
- Impairment of goodwill
and
22
intangible
assets
- Tax
effect
(2)
- Non-controlling
interest
(2)
- Profit on disposal of property,
(1)
plant and
equipment
Headline
earnings
324
29
252
Dividends
- Per share
(cents)
440
26
350
- Amount
(Rm)
139
110
Shares in
issue
31
646
31
540
- Total
(000)
34
154
34
048
- Held by subsidiary
(000)
(2
508)
(2
508)
Weighted average shares in
issue
- Basic
(000)
31
617
31
466
- Diluted
(000)
32
058
32
109
Group statement of cash
flows
Year
Year
ended
ended
30 Nov 30
Nov
R
million
2011
2010
Cash generated from
trading
458
327
(Increase) decrease in working
capital
(129)
12
Cash generated from
operations
329
339
Taxation
paid
(46)
(49)
Net cash from operating
activities
283
290
Net investment in new
operations
(164)
(184)
Net investment in property, plant and
equipment
(64)
(50)
Dividends and interest
received
205
218
Net cash from investing
activities
(23)
(16)
Proceeds from issue of
shares
2
7
Increase in finance
leases
3
Finance
costs
(234)
(234)
Dividends
paid
(124)
(120)
Net cash from financing
activities
(353)
(347)
Net decrease in cash and cash
equivalents
(93)
(73)
Group statement of changes in
equity
Year
Year
ended
ended
30 Nov 30
Nov
R
million
2011
2010
Equity at beginning of the
year
1 314 1
184
Comprehensive income for the
year
337
237
(Decrease) increase in equity
compensation
(3)
5
reserve
Issue of
shares
2
7
Dividends
(125)
(119)
Equity at end of the
year
1 525 1
314
Supplementary
information
The consolidated financial statements have been
prepared in accordance with IAS
34: Interim Financial Reporting, International
Financial Reporting Standards
(IFRS) as issued by the International Accounting
Standards Board (IASB), the AC
500 Standards as issued by the Accounting Practices
Board, the requirements of
the South African Companies Act and the JSE Listings
Requirements. IFRS 9 and
IAS 24 have been adopted for the first time during the
current year.
The
principal accounting policies set out in the group`s
2010 annual report have
been consistently applied throughout the current year.
These results have been
compiled under the supervision of the financial
director, CV Amoils CA(SA).
30 Nov 30
Nov
2011
2010
Average net operating assets (NOA)
(Rm)
1 469
948
Operating profit margin
(%)
13,4
12,2
Average NOA turn
(times)
2,2
2,6
Return on average NOA
(%)
29,0
31,6
Average net tangible operating assets (NTOA) (Rm)
951
758
PBITA margin
(%)
13,8
12,4
Average NTOA turn
(times)
3,3
3,2
Return on average NTOA
(%)
46,1
40,1
Net asset value per
share
4 721 4
080
Return on average equity
(%)
23,8
18,9
Operating profit has been determined after
taking
into account the following charges
(Rm):
-
Depreciation
24
18
-
Amortisation
13
4
Capital expenditure
(Rm)
- Incurred during the
year
69
52
- Authorised but not contracted
for
38
31
Commitments and contingencies
(Rm)
- Operating lease commitments on
properties
123
116
Acquisition of new
businesses
The group acquired 100% of the businesses
of
Midrand Special Steels, Global Communications
and
Pentagon for a total consideration based
on
future profits and which is estimated to be
R251
million. The results since acquisition
date
included in consolidated results for the year
are
as
follows:
- Turnover
(Rm)
322
- Profit after tax
(Rm)
29
If the acquisitions had been concluded at
the
beginning of the financial year,
consolidated
results for the group would havebeen as
follows:
- Turnover
(Rm)
3
224
- Profit after tax
(Rm)
344
Segment
information
Turnover
Year
Year
ended
ended
30 Nov
% 30
Nov
R
million
2011
change
2010
Engineering
consumables
2 187
25 1
750
- Ongoing
operations
1 852
10 1
685
- Acquired in 2010 and
2011
335
65
Consumer-related
products
1 006
41
716
- Ongoing
operations
760
6
716
- Acquired in 2010 and
2011
246
Total operating
segments
3 193
29 2
466
Head office, shared services
and
(11)
(8)
eliminations
Total
group
3 182
29 2
458
Operating
profit
Year
Year
ended
ended
30 Nov
% 30
Nov
R
million
2011
change
2010
Engineering
consumables
274
33
206
- Ongoing
operations
210
9
192
- Acquired in 2010 and
2011
64
14
Consumer-related
products
163
39
117
- Ongoing
operations
121
3
117
- Acquired in 2010 and
2011
42
Total operating
segments
437
35
323
Head office, shared services
and
(11)
(23)
eliminations
Total
group
426
42
300
Average net operating
assets
Year
Year
ended
ended
30 Nov
% 30
Nov
R
million
2011
change
2010
Engineering
consumables
1 093
50
728
- Ongoing
operations
773
17
660
- Acquired in 2010 and
2011
320
68
Consumer-related
products
366
101
182
- Ongoing
operations
201
10
182
- Acquired in 2010 and
2011
165
Total operating
segments
1 459
60
910
Head office, shared services
and
10
38
eliminations
Total
group
1 469
55
948
Transfer
secretaries:
Computershare Investor Services Pty
Limited
PO Box 61051, Marshalltown,
2107
Registered
office:
Building 9, Greenstone Hill Office
Park,
Emerald Boulevard, Greenstone Hill,
Edenvale
Tel +27 11 657
5000
E-mail
info@hudaco.co.za
Directors:
RT Vice
(Chairman)*
SJ Connelly (Chief
executive)
CV Amoils (Financial
director)
GR
Dunford
DD
Mokgatle*
D
Naidoo*
SG
Morris*
* Independent
non-executive
Group
secretary:
R
Wolmarans
Sponsor:
Nedbank
Capital
These results are available on the
Internet
www.hudaco.co.za
"Value-added distribution - our core
competency"
Date: 26/01/2012 15:35:02 Produced by the JSE SENS
Department.
The SENS service is an information dissemination
service administered by the
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expressly, tacitly
or
implicitly, represent, warrant or in any way guarantee
the truth, accuracy or
completeness of the information published on SENS. The
JSE, their officers,
employees and agents accept no liability for (or in
respect of) any direct,
indirect, incidental or consequential loss or damage of
any kind or nature,
howsoever arising, from the use of SENS or the use of,
or reliance
on,
information disseminated through SENS.
| distribué par | Ce noodl a été diffusé par Hudaco Industries Limited. Il a été distribué par noodls dans son format d'origine et sans modification sur 2012-01-26 15:33:45 PM et restera accessible depuis ce lien permanent. Cette annonce est protégée par les règles du droit d'auteur et toute autre loi applicable, et son propriétaire est seul responsable de sa véracité et de son originalité. |
