PRO FORMA RESULTS FOR RESTRUCTURED BARLOWORLD
The following pro forma represents the results of the Barloworld group for 2007 and 2006
excluding the results of cement, steel tube, coatings, scientific, the UK lease book, and the
Freightliner, DitchWitch, Vacuum Technology and Finaltair businesses. All these divisions and
businesses have either been unbundled or sold this year or are in the process of being
unbundled or sold.
This analysis is prepared to assist readers to better understand the current year’s operating
performance of the core businesses that will comprise the “future” Barloworld group.
| Unaudited |
Year ended 30 September |
| R million |
2007 |
2006 |
% change |
| Revenue |
38 378 |
30 312 |
27 |
| Trading profit |
2 446 |
1 710 |
43 |
| Pension fund gain |
|
149 |
|
| Corporate office redundancies and closure costs |
(92) |
|
|
| Operating profit |
2 354 |
1 859 |
27 |
| Fair value adjustments on financial instruments |
295 |
224 |
|
| |
2 649 |
2 083 |
|
| Net finance costs |
(522) |
(322) |
|
| Profit before exceptional items |
2 127 |
1 761 |
21 |
| Exceptional items |
(115) |
117 |
|
| Profit before taxation |
2 012 |
1 878 |
|
| Taxation |
(657) |
(529) |
24 |
| Secondary Tax on Companies |
(149) |
(26) |
|
| Profit after taxation |
1 206 |
1 323 |
|
| Income from associates and joint ventures |
53 |
53 |
|
| Net profit |
1 259 |
1 376 |
|
| Headline earnings |
1 388 |
1 220 |
14 |
| Headline earnings per share (cents) |
685 |
589 |
16 |
| Headline earnings per share excluding STC on special dividend (cents) |
747 |
589 |
27 |
Revenue increased by 27% to R38 378 million mainly due to strong growth in the equipment
division. Growth of 44% in the division’s revenue was driven by the southern African region
where demand was bolstered by mining and infrastructural projects.
Trading profit rose by 43% to R2 446 million. Profit grew strongly in the equipment division on the
back of higher revenue and in logistics which has grown rapidly since its formation in 2002.
The corporate office redundancies and closure costs of R92 million in 2007 relate to the
downsizing of the South African and UK corporate offices and the closure of the Botswana
and Namibia corporate offices.
Operating profit increased by 27% to R2 354 million (2006: R1 859 million).
Favourable fair value adjustments on financial instruments of R295 million (2006: R224 million)
relate mainly to the marking to market of PPC shares. In 2006, gains of R141 million related to
foreign currency transactions in the southern African equipment business. Most of these gains
were incurred prior to the adoption of hedge accounting which had the effect of reducing
earnings volatility arising from foreign currency fluctuations.
Finance costs net of investment income increased by R200 million to R522 million mainly due
to higher interest rates and increased working capital requirements. It is anticipated that the
coatings division will be unbundled with approximately R900 million of debt which will
favourably impact the future group finance costs. No benefit has been reflected in the year
end 2007 pro forma figures.
Exceptional items of R115 million (loss) include R101 million relating to the impairment of
goodwill in Avis Scandinavia.
Taxation increased by 24% to R657 million. STC increased to R149 million (2006: R26 million)
due to R125 million being incurred on the special dividend paid in April 2007.
Headline earnings increased by 14% to R1 388 million (2006: R1 220 million) and HEPS
increased by 16% to 685 cents.
|
