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GNDE - Grindrod Unicorn Group Limited - 2000 Audited Resu

01/03/2001 00:00:00

Grindrod Unicorn Group Limited
(Registration number 1966/009846/06)
(Incorporated in the Republic of South Africa)
2000 AUDITED RESULTS AND DIVIDEND ANNOUNCEMENT
- 229% increase in trading income
- Major recovery in earnings
- Dividend resumed
- Reduction in gearing
Consolidated Income Statement
Year ended 31 December
2000 1999 Change
R000 R000 %
Revenue 1 474 451 989 197 49
Trading income 242 824 73 829 229
Provisions for contracted charter
losses (17 393) (18 821)
Depreciation (88 889) (91 898)
Operating income/(loss) before
interest and taxation 136 542 (36 890)
Net interest paid (61 714) (56 755)
Income/(Loss) before taxation 74 828 (93 645)
Taxation (144) 26 052
Income/(Loss) after taxation 74 684 (67 593)
Non-trading items (317) 1 584
Income/(Loss) attributable to
ordinary shareholders 74 367 (66 009)
Headline earnings/(loss) 74 684 (67 593)
Weighted average number of shares
on which earnings/(loss) per share
are based (000's) 114 080 114 073
Earnings/(Loss) per share (cents) 65,2 (57,9)
Headline earnings/(loss) per
share (cents) 65,5 (59,3)
Dividends per share (cents)
Paid 5,0 -
Declared 15,0 -
Dividend cover (times) 3,25 -
Exchange rates (R/US$)
Opening exchange rate 6,15 5,86
Closing exchange rate 7,56 6,15
ANALYSIS OF HEADLINE EARNINGS/(LOSS)
Divisional analysis of headline earnings/(loss):
Year ended 31 December
2000 1999
R000 R000
Shipping Services 69 768 (44 989)
Freight Management (3 105) (26 429)
Continuing operations 6 720 (6 780)
Restructured operations (9 825) (19 649)
Financial Services 8 021 3 825
74 684 (67 593)
NON-TRADING ITEMS
Year ended 31 December
2000 1999
R000 R000
Profit on sale of operations - 1 685
Amortisation of goodwill (68) 6 345
Discontinued operations (249) (6 446)
(317) 1 584
CONSOLIDATED BALANCE SHEET
31 December
2000 1999*
R000 R000
Fixed assets 1 076 355 1 006 039
Goodwill 9 671 (1 261)
Investments in associates 80 872 52 089
Cash deposit 92 362 71 183
Bank balances and cash 121 653 141 025
Other current assets 222 606 251 109
Total assets 1 603 519 1 520 184
Ordinary shareholders' funds 535 058 387 518
Deferred taxation 20 213 15 552
Interest bearing debt 778 497 823 879
1 333 768 1 226 949
Other liabilities 269 751 293 235
Total funding 1 603 519 1 520 184
Net asset value per share (cents)
Ships and investments at book value 469 340
Ships and investments at current
valuation 446 278
Net debt : equity ratio 1,05 : 1 1,58 : 1
Capital expenditure 28 170 3 055
Capital commitments
Contracted for 174 813 632
Authorised by directors not yet
contracted for 63 116 -
*-Comparative figures have been restated in terms of Statement AC131 to include
negative goodwill under assets.
STATEMENT OF CHANGES IN EQUITY
Foreign
currency
Share capital and other Accumulated
and premium reserves* profit/(loss) Total
R000 R000 R000 R000
Balance at 1 January 2000 173 491 109 752 104 275 387 518
Share options exercised 227 227
Foreign currency
translation adjustments 82 577 82 577
Deferred taxation (3 927) (3 927)
Profit attributable to
ordinary shareholders 74 367 74 367
Dividends paid (5 704) (5 704)
Transfer from NDR (62) 62 -
Balance at 31
December 2000 173 718 188 340 173 000 535 058
*-Comparative figures have been restated in terms of Statement AC131 to include
negative goodwill under assets.
CONSOLIDATED CASH FLOW
31 December
2000 1999*
R000 R000
Cash generated from operations 184 752 59 967
Net interest paid (61 714) (56 755)
Net dividends paid (3 321) (11 945)
Taxation refunded/(paid) 79 (330)
Net cash inflow/(outflow) from operating
activities 119 796 (9 063)
Acquisition of fixed assets and investments (62 274) (4 659)
Increase in effective shareholding in
subsidiaries and associates - (135 507)
Proceeds from disposal of fixed assets
and investments 33 000 71 911
Loans repaid by associated companies 1 992 -
Deposit repaid 3 283 2 754
Net cash outflow from investing activities (23 999) (65 501)
Proceeds from borrowings and
preference share financing 1 383 90 709
Payment of capital portion of
long-term
borrowings (103 291) (90 577)
Short-term loan (repaid)/raised (20 007) 67 055
Net cash (outflow)/inflow from
financing activities (121 915) 67 187
Net decrease in cash and cash equivalents (26 118) (7 377)
Cash and cash equivalents at
beginning of period 124 212 124 516
Difference arising on translation 9 096 7 073
Cash and cash equivalents at end of period 107 190 124 212
COMMENTS
Results
The group continued to improve profitability in the second half of 2000.
Earnings for the year were R74,4 million or 65,2 cents per share. The
improvement in earnings over 1999 and the first half of 2000 was mainly as a
result of improved shipping markets and the benefits to the group of the
decline of the Rand against the US Dollar.
While these benefits were external factors, internally the group has had the
opportunity to correct loss businesses, rationalise its costs, reduce debt and
make some important acquisitions which has seen revenue climb 49% to R1,47
billion and has laid the foundation for the group to continue its growth as a
major freight logistics player in Southern Africa.
Shipping Services (Unicorn, Quadrant and Island View Shipping)
Unicorn again performed well both through its ship ownership and its coastal
liner operations. Improved shipping markets, good commercial contracts and
reliability of vessels have allowed the employment of vessels at higher Dollar
charter rates and these were further enhanced when converted to Rands because
of the depreciation of the Rand in the second half of the year. Our coastal
operations between Mogambique, South Africa and Namibia have performed well
with good revenue flows from feeder and commercial cargoes.
Quadrant Container Line performed satisfactorily.
Island View Shipping has had a difficult year with high charter rates and
bunker costs having a negative impact on the cost of the carriage of contracted
bulk cargoes.
Freight Management (Ships Agency, Grindrod Container Services, P&O Grindrod
Logistics, Rohlig-Grindrod and Auto Carrier Transport.)
Ships Agency, which incorporates King & Sons, Mitchell Cotts Maritime and
Eyethu Ships Agencies, performed well during the year.
Grindrod Container Services, despite difficult trading conditions, performed
satisfactorily.
The contribution from P&O Grindrod Logistics and Rohlig-Grindrod was still
limited as the joint ventures with international partners were bedded down.
Our customer base continues to expand with our ability to offer specialised
transport solutions by land, air and sea.
Auto Carrier Transport performed satisfactorily.
The costs of winding up Grindrod Freight Logistics have been expensed during
the year and was the main reason for an overall loss in Freight Management. The
wind up is now complete.
Financial Services (50% investment in Marriott)
Our 50% interest in the Marriott Financial Services group continues to prove a
good investment with substantial growth in earnings having been achieved during
the year.
CAPITAL EXPENDITURE, ACQUISITIONS AND DISPOSALS
Although the group's planned sale of ships was not completed before year-end,
our gearing ratio has reduced substantially.
However, since year-end, we have sold and delivered a bulk carrier and have
concluded the sale of a multi-purpose vessel. These sales will realise
approximately R80 million. In addition we are in the process of negotiating the
sale of a further two multi-purpose vessels which should realise an additional
R80 million. It is also intended to sell two 1000 TEU container vessels which
are surplus to the group's requirements.
The group embarked on a ship replacement programme during the year and we
concluded contracts to purchase three new building handysized bulk carriers for
$45,5 million ($22,75 million our share) from a Chinese shipyard in a 50/50
joint venture with a well respected international shipowner. The vessels will
deliver in 2002/2003 and Island View Shipping will employ them on long term
charter together with four similar vessels from Japanese interests.
Our investment in various freight logistics businesses and our e-business
initiatives amounted to R12,3 million for the year.
The group has not proceeded with the buyback of Grincor shares at this stage.
GROUP BORROWINGS
Our debt-equity ratio was 1,05 : 1 at year-end and will reduce further on the
sale of additional vessels during 2001. The purchase of the Chinese new
buildings and other capital expenditure on freight logistics will have a
limited effect on gearing which should remain within the group's guideline of 1
: 1.
DIVIDEND
A final dividend of 15 cents per share has been declared.
PROSPECTS
The group should see continued growth in earnings during 2001.
For and on behalf of the board
WM Grindrod IAJ Clark
Chairman Group Managing Director
1 March 2001
DECLARATION OF FINAL DIVIDEND
Notice is hereby given that a final dividend of 15 cents per ordinary and "N"
ordinary share (1999: nil) has been declared and is payable to shareholders
registered in the books of the company at the close of business on 16 March
2001.
The dividend is declared in the currency of the Republic of South Africa and
will be paid on or about 30 March 2001.
ANNUAL GENERAL MEETING
The annual general meeting of the company will be held at the registered office
of the company on Thursday, 31 May 2001. The annual report will be posted to
shareholders on or about 6 April 2001.
By order of the board
CE Maple
Secretary
1 March 2001
Directors: WM Grindrod* (Chairman), DRD White* (Deputy Chairman), IAJ Clark
(Group Managing Director), H Adams*, IM Groves*, PJ Guillou*+, JC Hall CBE*, B
Martineau*+, RA Norton*, AK Olivier, LR Stuart-Hill
*Non-executive
+French
Registered office
Quadrant House
115 Victoria Embankment
Durban 4001
Johannesburg
Postal address
PO Box 1
Durban
4000
Transfer secretaries
Mercantile Registrars Limited
10th Floor, 11 Diagonal Street
Postal address
PO Box 1053
Johannesburg 2001
2000

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