20 May 2013 07:00
Barloworld Limited
(Incorporated in the Republic of South Africa)
(Registration number 1918/000095/06)
(Income Tax Registration number 9000/051/71/5)
(Share code: BAW)
(JSE ISIN: ZAE000026639)
(Share code: BAWP)
(JSE ISIN: ZAE000026647)
(Bond issuer code: BIBAW)
("Barloworld" or "the Company")
Interim results for the six months ended 31 March 2013
Salient features
Ø Revenue up 11% to R31.3 billion
Ø Operating profit up 14% to R1 463 million
Ø Profit before exceptional items up 20% to R995 million
Ø HEPS up 31% to 321 cents (H1'12: 245 cents)
Ø Interim dividend of 96 cents per share up 20%
Clive Thomson, CEO of Barloworld, said:
Our financial performance has been strong in the first half with headline earnings per share up 31% over theprior period.
Within our Equipment division the newly-acquired Bucyrus businesses performed in line with expectation and offset revenue declines in the traditional Caterpillar business on the back of a slowdown in mining capital expenditure. Our Iberian business showed a good turnaround in profitability off a lower cost base.
The Automotive and Logistics division delivered a strong overall result with all business units performing ahead oflast year.
We completed the sale of our Handling business in Belgium which will enable the continued redeployment of capital into higher returning opportunities.
Notwithstanding some short-term headwinds in the mining sector we expect to continue to make good progress in the second half and deliver a solid result for the full year to September 2013.
20 May 2013
Chairman and Chief Executive's report
Overview
The group produced a strong performance in the first half of the financial year with revenue of R31.3 billion up 11% on 2012. Operating profit of R1 463 million is 14% up on last year.
Headline earnings per share of 321 cents represent a 31% improvement compared to 245 cents in 2012.
A dividend of 96 cents was declared being 20% ahead of the 80 cents last year.
Operational review
Equipment
Equipment southern Africa
Revenue to March of R9.0 billion was R1.5 billion (19.5%) ahead of the prior year mainly from the newly-acquired Bucyrus (EMPR) businesses. General mining activity has shown some signs of slowdown particularly in Mozambique and Botswana while contract mining in South Africa is also down on last year.
Construction and infrastructure demand showed some improvement, particularly in Angola but margins were negatively impacted by intense competition in this segment.
Operating profit to March of R654 million is slightly below the comparative figure for 2012. The operating margin to March of 7.2% (2012: 9.1%) was negatively impacted by the lower margins from EMPR, currency adjustments due to rand weakness and some increase in fixed expenses on the back of investments made for future growth.
Bartrac, our joint venture in the Katanga province of the DRC, continued the strong performance.
Equipment Russia
Activity in mining continued positively in the first half of 2013. Total revenue to March of $248 million is $38 million (18.2%) ahead of 2012 as weaknesses in the coal sector were offset by growth in the gold and nickel sectors. Revenue in the Russian Far East was well ahead of last year, while the newly-acquired EMPR businesses added only nominally to revenue as certain existing orders were retained by Caterpillar.
After-sales revenue continued to grow strongly, improving by 24% compared to the first half of 2012.
Operating profit to March was similar to last year, impacted by EMPR acquisition costs and a rising fixed cost base to support the enlarged dealer footprint.
Equipment Iberia
Revenue to March of €215 million was €34 million ahead of last year and was boosted by the delivery of the last portion of the large package deal to Victorino Alonso, while the delivery on the EPSA package deal will continue into the second half of 2014. The Spanish construction sector remains depressed with overall equipment industry sales continuing to decline off an already low base. Power systems activity in both Spain and Portugal was up on the prior year.
The operating loss to March of €371 000 was a significant improvement compared to the prior year's loss of €11.1 million, which included restructure costs of €7.1 million.
Handling
The restructured business generated revenue of £96 million which was 5% up on the comparable adjusted revenue following the disposal of Handling US and UK in 2012.
Operating profit to March of £2.6 million was 9.9% above last year which included £1.4 million profit from the US and UK businesses.
The Handling business in Belgium was sold on 8 May generating proceeds of €7.5 million.
Automotive and Logistics
The division generated revenue of R16.3 billion for the six months to March, a 15% increase on the prior period, with all business units producing good revenue growth. The division increased operating profit to R673 million, a pleasing 27% improvement compared to R531 million in 2012.
Avis Rent a Car showed a 14% increase in revenue, as a result of a 6% increase in rental days, a slight improvement in rate per day and higher used vehicle revenues. The operating profit of R163 million, which was 13% ahead of last year, was supported by a good used vehicle performance.
Motor Retail increased revenue by 13% to R10.9 billion in the period with a 25% increase in operating profit to R258 million. The growth in Motor Retail southern Africa was driven by improved volumes, resulting in increased operating profit of R45 million to R206 million (28%). All franchises performed well and the result was supported by another good finance and insurance contribution. Motor Retail Australia improved results in line with expectations.
Avis Fleet Services increased revenue by 26% to R1.3 billion for the period. The financed fleet at March is now 12% up on the prior period, following the finalisation of the City of Johannesburg contract which entailed a net investment of R175 million. Operating profit to March of R208 million is 44% up on the prior period and this business also benefited from a good performance in used vehicle sales.
Logistics lifted revenue by 25% to R2.1 billion, mainly as a result of good performances in supply chain management and the newly-formed Barloworld Transport Solutions (BWTS). Operating profit to March of R44 million was 19% ahead of last year, despite increased losses in the offshore freight management business.
Funding
Net debt increased by R3.5 billion to R11 billion at March, mainly as a result of increased working capital (R2.4 billion), the acquisition of the Bucyrus distribution business in Russia and the Manline acquisition in Logistics southern Africa. All divisions are focused on driving down their working capital levels in the second half to below the previous year's closing.
Human resources, diversity and sustainable development
Our emphasis remains on ensuring we have the required leadership, talent and skills to implement our strategies. A reduced Lost-Time Injury Frequency Rate and no work-related fatalities underscore our ongoing focus on safety.
Major business units have maintained their Level 2 or Level 3 B-BBEE rating; and Barloworld Limited, retained a Level 2 rating and was again ranked as the most empowered company in the General Industrial sector in the Mail & Guardian Survey (2013). We continue to drive diversity, with particular focus on our employee profile across the group.
We are progressing towards our aspirational non-renewable energy and greenhouse gas emissions efficiency improvement targets, and continue to implement water stewardship initiatives.
Stakeholder engagement remains central to our value creation activities and board level responsibility rests with an executive director.
Directorate
Mr Gonzalo Rodriguez de Castro Garcia de los Rios retired from the board on 23 January 2013 having reached retirement age. We would like to thank him for his contribution over the past nine years.
Outlook
The world economy continues on a path of gradual recovery. The Chinese economy has of late shown some signs of slowing but should nonetheless continue to support long-term demand for commodities.
In the short term, however, mining sentiment has been impacted by the pronouncements of the newly-appointed CEOs of certain large global mining companies. They are indicating a scaling back in new project expansion, capex curtailment and cost containment. While this is leading to a near-term slowdown in global mining investment, we believe the medium- to long-term outlook for the industry remains positive.
The Equipment SA firm order book at March of R5.2 billion is marginally down on the September 2012 level of R5.3 billion. The order book has been boosted by EMPR orders while the traditional Caterpillar product book of R3.0 billion is down on the September levels.
In Russia the firm order book of $72 million is down on September 2012 following strong deliveries in the first half but could be boosted with a number of potential mining deals currently nearing finalisation. The order book excludes any EMPR orders at acquisition retained by Caterpillar on which we will earn a service fee.
Trading conditions in Spain continue to be extremely tough and it would now appear that 2013 industry sales could end even lower than the weak 2012 levels. Consequently, the combined order book at March of €49 million is well down on the September book and relates mainly to power systems. We therefore anticipate a difficult second half for 2013; however, our year-on-year performance will still show improvement on a lower cost base.
The Handling businesses are expecting some slowdown in the second half as a result of reduced order book levels.
The Automotive and Logistics division is expected to build on the positive momentum across the division. Car rental should continue to grow rental days in the traditionally slower second half, but rates will remain under pressure.
Despite difficult trading conditions and low consumer confidence levels, we still expect vehicle sales in southern Africa to continue to grow moderately in 2013, assisted by current low interest rates. After a period of relatively low vehicle price increases, manufacturers are now likely to increase prices due to a weaker rand and inflationary input cost pressures, which in turn could favourably impact used vehicle demand. We continue to monitor labour activity in the automotive sector which could result in supply shortages in the second half.
Avis Fleet Services is expected to capitalise on current market conditions and the benefits of newly-awarded contracts. Logistics will benefit from the formation of BWTS and further improvements from management action in southern Africa, while trading in the offshore freight businesses will remain difficult particularly in Spain and the Far East.
Notwithstanding some short-term headwinds in the mining sector, the group is expected to continue to make good progress in the second half and deliver a solid result for the full year to September 2013.
DB Ntsebeza CB Thomson
Chairman Chief Executive
Group financial review
Revenue for the six months increased by 11% to R31.3 billion. The newly-acquired EMPR (Bucyrus) businesses in Equipment southern Africa and Russia contributed to the increase.
Earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 11% to R2 490 million while operating profit rose by 14% to R1 463 million.
Headline earnings per share (HEPS) increased by 31% to 321 cents (1H'12: 245 cents).
In Equipment southern Africa, operating profit declined by 5% on weaker demand in the mining and contract mining sector, partly offset by the contribution from EMPR. Losses in Equipment Iberia declined substantially from R115 million last year (which included a restructure charge of R73 million) to R5 million. Operating profits in Equipment Russia improved by 9% in rand terms mainly due to currency weakness. The Automotive and Logistics division recorded substantially increased profits of R673 million, up by 27% owing to increased earnings from all business units.
Financial instrument costs were well down on the prior year. Despite hedge accounting, the weakening rand negatively affected the cost of inventory in Equipment southern Africa while favourably impacting financial instrument gains. This more than offset ongoing foreign currency contract costs. The implementation of hedge accounting in Handling South Africa has also reduced the impact of currency volatility on financial instruments.
Net finance costs of R475 million are R128 million higher than last year owing to increased average net debt. The acquisition of the EMPR businesses contributed R54 million to the increase with the balance mainly attributable to higher working capital requirements.
Exceptional charges of R34 million mainly relate to the impairment of assets in the handling Belgium business which was held for sale at March and subsequently sold in May 2013.
Taxation, before Secondary Tax on Companies (STC), decreased by R10 million to R333 million. The charge last year included the impairment of a deferred tax asset in handling USA (R61 million). The effective taxation rate (excluding STC, prior year taxation and taxation on exceptional items) was 34.2% (1H'12: 34.5%).
Income from associates of R64 million mainly comprises the contribution from the equipment joint venture in the Democratic Republic of Congo which continued its strong trading performance.
Cash flow and debt
Improved activity across most of the businesses has led to increased investment in working capital. This, coupled with the acquisition of the EMPR business in Russia and growth in leasing assets and the short-term vehicle rental fleet, has led to an outflow of funds in the period of R2 914 million.
Net interest-bearing debt at 31 March 2013 of R11 003 million (September 2012: R7 465 million) represents a group debt to equity ratio of 77% (September 2012: 57%). Short-term debt represents 45% of total debt. Cash balances of R1.4 billion are available to meet short-term commitments. In addition, the company has unutilised debt facilities with domestic financial institutions totalling R3.0 billion and unutilised offshore debt facilities of R2.8 billion at 31 March 2013. During the period we extended the maturity profile of the R1 billion Bucyrus funding facility into 2015. Gearing in the trading segment is expected to reduce to the target range in the second half of the year.
Debt to equity (%) | Trading
| Leasing | Car rental | Group total debt | Group net debt |
Target range | 30 - 50 | 600 - 800 | 200 - 300 | ||
Ratio at 31 March 2013 | 62 | 579 | 233 | 89 | 77 |
Ratio at 30 September 2012 | 50 | 472 | 217 | 77 | 57 |
The company's credit rating of A+ was recalibrated upwards to AA- (Stable Outlook) at the time the South African sovereign credit was downgraded by Fitch Ratings in January 2013 and was re-affirmed by Fitch following a formal credit review in February 2013.
Total assets employed by the group increased by R3 586 million in the six months to R39 396 million mainly due to increased working capital, the acquisitions in Russia and logistics and additions to the rental and leasing fleets.
Going forward
Deliveries of firm customer orders in the second half of the year will see a significant reduction in working capital and gearing by year end. This will also positively impact our financial returns for the full year.
DG Wilson
Finance director
Operational reviews
EQUIPMENT and handling | ||||||||
Revenue | Operating profit/(loss) | Net operating assets | ||||||
Six months ended | Year ended | Six months ended | Year ended | |||||
31 Mar 2013 Rm | 31 Mar 2012 Rm | 30 Sept 2012 Rm | 31 Mar 2013 Rm | 31 Mar 2012 Rm | 30 Sept 2012 Rm | 31 Mar 2013 Rm | 30 Sept 2012 Rm | |
Equipment | 13 672 | 11 186 | 24 273 | 806 | 718 | 1 740 | 13 828 | 10 600 |
- Southern Africa | 9 021 | 7 548 | 16 326 | 654 | 689 | 1 535 | 8 573 | 6 587 |
- Europe | 2 464 | 1 993 | 4 180 | (5) | (115) | (139) | 2 236 | 2 177 |
- Russia | 2 187 | 1 645 | 3 767 | 157 | 144 | 344 | 3 019 | 1 836 |
Handling | 1 329 | 2 790 | 4 774 | 36 | 28 | 38 | 920 | 733 |
15 001 | 13 976 | 29 047 | 842 | 746 | 1 778 | 14 748 | 11 333 | |
Share of associate income | 67 | 35 | 148 | |||||
Equipment southern Africa faced weaker trading conditions caused by global economic uncertainties, decreasing commodity prices and upheaval in the South African mining industry. The acquisition of the EMPR (Bucyrus) business during the second half of the 2012 financial year provided a significant source of incremental revenue, albeit at lower margins. Operating profit for the half-year was also adversely affected by currency adjustments to cost of sales in a period of rand weakness, which favourably impacted financial instruments gains.
In terms of major projects, we were awarded a R1.3 billion contract by Swakop Uranium for the greenfield Husab Uranium Project in Namibia. We have also signed an agreement with the Sishen Iron Ore Company for the trial of six 795F AC trucks, Caterpillar's first Electric Drive Truck. A R0.5 billion Caterpillar equipment order was secured from B2Gold Corp for their Otjikoto project. The fleet to be supplied will include mining trucks, wheel loaders, and support equipment, with the first half of the fleet being delivered during 2013, and the balance during 2014 and 2015.
The slowdown in global mining has had an impact on our firm order book which, at R5.2 billion, is slightly less than the R5.3 billion at September last year. We are, however, seeing an increase in activity in the construction sector driven by municipal and provincial government in South Africa.
Despite further reductions in the machine industry in Iberia, the Spanish operations successfully delivered additional portions of the large mining packages outstanding in the previous financial year. The operations have maintained market share within their regions and results have benefited from an absence of restructuring costs in the period. Management has been able to transfer service technicians on fixed contracts to a number of countries in support of customers, primarily in Africa, which is allowing us to maintain the Iberian region's technical capacity.
Equipment Russia produced a solid result with revenues up 18% in dollar terms from the previous year driven by mining activity in the gold and nickel sectors. Operating profit was impacted by an increase in headcount, EMPR acquisition costs and facility-related expenses as we continue to invest for future growth. There remains a number of significant potential mining and construction contracts in the pipeline.
In the Handling operations, the market for forklift trucks was flat in South Africa and shrank in Europe. Operating profits grew strongly in South Africa, aided by an improved sales mix and favourable currency variances and showed solid growth in The Netherlands, bolstered by cost reductions and improved equipment margins.
The prior period included profits of £1.4 million from the Handling US and UK businesses which have now been sold. The Belgian business, which broke even in the period, was sold effective 8 May, generating net proceeds of €7.5 million.
Automotive and logistics | ||||||||
Revenue | Operating profit/(loss) | Net operating assets | ||||||
Six months ended | Year ended | Six months ended | Year ended | |||||
31 Mar 2013 Rm | 31 Mar 2012 Rm | 30 Sept 2012 Rm | 31 Mar 2013 Rm | 31 Mar 2012 Rm | 30 Sept 2012 Rm | 31 Mar 2013 Rm | 30 Sept 2012 Rm | |
Car rental Southern Africa | 2 019 | 1 777 | 3 555 | 163 | 144 | 251 | 2 163 | 1 966 |
Motor retail | 10 858 | 9 623 | 20 256 | 258 | 206 | 479 | 3 348 | 3 096 |
- Southern Africa | 8 159 | 7 240 | 15 209 | 206 | 161 | 352 | 1 886 | 1 669 |
- Australia | 2 699 | 2 383 | 5 047 | 52 | 45 | 127 | 1 462 | 1 427 |
Fleet services Southern Africa | 1 309 | 1 043 | 2 294 | 208 | 144 | 349 | 2 913 | 2 587 |
Logistics | 2 113 | 1 692 | 3 385 | 44 | 37 | 73 | 988 | 354 |
- Southern Africa | 1 688 | 1 282 | 2 535 | 64 | 52 | 92 | 871 | 224 |
- Europe, Middle East and Asia | 425 | 410 | 850 | (20) | (15) | (19) | 117 | 130 |
16 299 | 14 135 | 29 490 | 673 | 531 | 1 152 | 9 412 | 8 003 | |
Share of associate loss | (3) | (4) | (7) | |||||
The division produced another record result in a competitive trading environment. The operating margin improved to 4.1% from 3.8% in the prior period. The division continued to generate strong operating cash flows which have been invested in strategic acquisitions and organic growth. Growing revenue by 15% improved the operating profit by 27%.
Avis Rent a Car southern Africa improved operating profit by 13% despite a slower turnaround than expected in the luxury coach charter operation. The business achieved good fleet utilisation, grew rental day volumes and slightly improved revenue per rental day, notwithstanding a surge in replacement segment volumes following the major hailstorm in Gauteng during the period.
The southern African motor retail operations delivered a strong result, growing operating profit by 28%. Improved margins and overall volumes, cost containment and a good finance and insurance contribution supported the result. The Australian operations continued to perform in line with expectations.
Avis Fleet Services produced an excellent result, improving operating profit by 44%. The business continued to expand through targeted growth in both the funded and non-funded fleets.
The logistics business has seen further improvements on the back of focused management actions. The establishment of BWTS, through merging our Dedicated Transport business with Manline Logistics, provides a platform for growth. The acquisition of a minority stake in re- positions the business in the environmental supply chain and waste management sector. Overall volumes and margins remain under pressure in the international businesses; however, opportunities to improve the mix of business continue to be progressed.
Associates include our Soweto and Sizwe BEE joint ventures, all of which performed in line with expectations. The Soweto Toyota and Soweto Volkswagen dealerships continue to improve and will take time to mature in this developing market.
Corporate | ||||||||
Revenue | Operating profit/(loss) | Net operating assets/(liabilities) | ||||||
Six months ended | Year ended | Six months ended | Year ended | |||||
31 Mar 2013 Rm | 31 Mar 2012 Rm | 30 Sept 2012 Rm | 31 Mar 2013 Rm | 31 Mar 2012 Rm | 30 Sept 2012 Rm | 31 Mar 2013 Rm | 30 Sept 2012 Rm | |
- Southern Africa | 10 | 10 | 17 | (50) | (56) | (10) | 503 | 739 |
- Europe | (2) | 61 | 68 | (1 207) | (1 154) | |||
10 | 10 | 17 | (52) | 5 | 58 | (704) | (415) | |
In Europe a change in the statutory measure for inflation on UK pension increases reduced the company's pension fund liability giving rise to a once-off benefit to operating profit in 2012 of R74 million (£6.1 million).
Dividend declaration
Dividend number 169
Notice is hereby given that interim dividend number 169 of 96 cents (gross) per ordinary share in respect of the six months ended 31 March 2013 has been declared subject to the applicable dividends tax levied in terms of the Income Tax Act (Act No 58 of 1962)(as amended) (the Income Tax Act).
In accordance with paragraphs 11.17(a)(i) to (x) and 11.17(c) of the JSE Listings Requirements the following additional information is disclosed:
·; The dividend has been declared out of income reserves;
·; Local dividends tax rate is 15% (fifteen per centum);
·; There are no Secondary Tax on Companies (STC) credits utilised;
·; Barloworld has 231 106 257 ordinary shares in issue;
·; The gross local dividend amount is 96 cents per ordinary share;
·; The net dividend amount is 81.6 cents per share.
In compliance with the requirements of Strate and the JSE Limited, the following dates are applicable:
·; Dividend declared | Monday, 20 May 2013 |
·; Last day to trade cum dividend | Friday, 7 June 2013 |
·; Shares trade ex-dividend | Monday, 10 June 2013 |
·; Record date | Friday, 14 June 2013 |
·; Payment date | Tuesday, 18 June 2013 |
Share certificates may not be dematerialised or rematerialised between Monday, 10 June 2013 and Friday, 14 June 2013, both days inclusive.
On behalf of the board
LP Manaka
Group company secretary
Condensed consolidated income statement
Six months ended | Year ended | |||
Notes | 31 Mar 2013 Reviewed Rm | 31 Mar 2012 Reviewed Rm | 30 Sept 2012 Audited Rm | |
Revenue | 31 310 | 28 121 | 58 554 | |
Operating profit before items listed below (EBITDA) | 2 490 | 2 244 | 4 905 | |
Depreciation | (955) | (911) | (1 806) | |
Amortisation of intangible assets | (72) | (51) | (111) | |
Operating profit | 3 | 1 463 | 1 282 | 2 988 |
Fair value adjustments on financial instruments | 4 | 7 | (106) | (93) |
Net finance costs and dividends received | 5 | (475) | (347) | (776) |
Profit before exceptional items | 995 | 829 | 2 119 | |
Exceptional items | 6 | (34) | (26) | 190 |
Profit before taxation | 961 | 803 | 2 309 | |
Taxation | 7 | (333) | (343) | (789) |
Secondary taxation on companies | 7 | (25) | (26) | |
Profit after taxation | 628 | 435 | 1 494 | |
Income from associates and joint ventures | 64 | 31 | 141 | |
Net profit for the period | 692 | 466 | 1 635 | |
Net profit attributable to: | ||||
Owners of Barloworld Limited | 643 | 429 | 1 559 | |
Non-controlling interests in subsidiaries | 49 | 37 | 76 | |
692 | 466 | 1 635 | ||
Earnings per share^ (cents) | ||||
- basic | 305.3 | 203.4 | 739.9 | |
- diluted | 304.2 | 202.1 | 734.5 | |
^ Refer note 2 for details of headline earnings per share calculation. | ||||
Condensed consolidated statement of comprehensive income
Six months ended | Year ended | |||
31 Mar 2013 Reviewed Rm | 31 Mar 2012 Reviewed Rm | 30 Sept 2012 Audited Rm | ||
Profit for the period | 692 | 466 | 1 635 | |
Items that may be reclassified subsequently to profit or loss: | 779 | (439) | (452) | |
Exchange gain/(loss) on translation of foreign operations | 744 | (277) | 276 | |
Translation reserves realised on the disposal of foreign joint ventures and subsidiaries | (593) | |||
Gain/(loss) on cash flow hedges | 48 | (225) | (178) | |
Deferred taxation on cash flow hedges | (13) | 63 | 43 | |
Items that will not be reclassified to profit or loss: | (9) | (133) | ||
Actuarial losses on post-retirement benefit obligations | (9) | (149) | ||
Taxation effect | 16 | |||
Other comprehensive income for the period | 779 | (448) | (585) | |
Total comprehensive income for the period | 1 471 | 18 | 1 050 | |
Total comprehensive income attributable to: | ||||
Owners of Barloworld Limited | 1 422 | (19) | 974 | |
Non-controlling interests in subsidiaries | 49 | 37 | 76 | |
1 471 | 18 | 1 050 | ||
Condensed consolidated statement of financial position
Six months ended | Year ended | |||
Notes | 31 Mar 2013 Reviewed Rm | 31 Mar 2012 Reviewed Rm | 30 Sept 2012 Audited Rm | |
ASSETS | ||||
Non-current assets | 14 882 | 12 369 | 13 470 | |
Property, plant and equipment | 10 584 | 8 774 | 9 473 | |
Goodwill | 1 821 | 2 071 | 1 759 | |
Intangible assets | 1 265 | 398 | 1 049 | |
Investment in associates and joint ventures | 8 | 527 | 305 | 430 |
Finance lease receivables | 82 | 98 | 125 | |
Long-term financial assets | 9 | 73 | 147 | 97 |
Deferred taxation assets | 530 | 576 | 537 | |
Current assets | 24 221 | 19 510 | 22 340 | |
Vehicle rental fleet | 2 038 | 1 955 | 1 908 | |
Inventories | 12 401 | 9 372 | 10 855 | |
Trade and other receivables | 8 064 | 7 107 | 6 916 | |
Taxation | 9 | 23 | 37 | |
Cash and cash equivalents | 15 | 1 709 | 1 053 | 2 624 |
Assets classified as held for sale | 10 | 293 | 636 | |
Total assets | 39 396 | 32 515 | 35 810 | |
EQUITY AND LIABILITIES | ||||
Capital and reserves | ||||
Share capital and premium | 311 | 305 | 309 | |
Other reserves | 3 030 | 2 586 | 2 433 | |
Retained income | 10 445 | 9 275 | 10 127 | |
Interest of shareholders of Barloworld Limited | 13 786 | 12 166 | 12 869 | |
Non-controlling interest | 439 | 277 | 298 | |
Interest of all shareholders | 14 225 | 12 443 | 13 167 | |
Non-current liabilities | 9 087 | 7 558 | 8 964 | |
Interest-bearing | 6 950 | 5 971 | 7 048 | |
Deferred taxation liabilities | 427 | 197 | 371 | |
Provisions | 197 | 254 | 254 | |
Other non-current liabilities | 1 513 | 1 136 | 1 291 | |
Current liabilities | 15 879 | 12 514 | 13 679 | |
Trade and other payables | 8 983 | 8 343 | 9 548 | |
Provisions | 973 | 794 | 839 | |
Taxation | 161 | 239 | 252 | |
Amounts due to bankers and short-term loans | 5 762 | 3 138 | 3 040 | |
Liabilities directly associated with assets classified as held for sale | 10 | 205 | ||
Total equity and liabilities | 39 396 | 32 515 | 35 810 |
Condensed consolidated statement of changes in equity
Share capital and premium Rm | Other reserves Rm | Retained income Rm | Attributable to Barloworld Limited shareholders Rm | Non- controlling interest Rm | Interest of all shareholders Rm | |
Balance at1 October 2011 | 304 | 3 016 | 9 069 | 12 389 | 263 | 12 652 |
Total comprehensive income for the period | (448) | 429 | (19) | 37 | 18 | |
Transactions with owners, recorded directly in equity | ||||||
Other reserve movements | 18 | 18 | 4 | 22 | ||
Dividends | (223) | (223) | (27) | (250) | ||
Shares issued in current period | 1 | 1 | 1 | |||
Balance at 31 March 2012 (Reviewed) | 305 | 2 586 | 9 275 | 12 166 | 277 | 12 443 |
Total comprehensive income for the period | (4) | 997 | 993 | 39 | 1 032 | |
Transactions with owners, recorded directly in equity | ||||||
Other reserve movements | (149) | 25 | (124) | 5 | (119) | |
Dividends | (170) | (170) | (23) | (193) | ||
Treasury shares issued | 3 | 3 | 3 | |||
Shares issued in current period | 1 | 1 | 1 | |||
Balance at 30 September 2012 (Audited) | 309 | 2 433 | 10 127 | 12 869 | 298 | 13 167 |
Total comprehensive income for the period | 779 | 643 | 1 422 | 49 | 1 471 | |
Transactions with owners, recorded directly in equity | ||||||
Other reserve movements | 27 | (5) | 22 | 1 | 23 | |
Purchase of shares in subsidiaries | (209) | (209) | 129 | (80) | ||
Dividends | (320) | (320) | (38) | (358) | ||
Shares issued in current period | 2 | 2 | 2 | |||
Balance at 31 March 2013 (Reviewed) | 311 | 3 030 | 10 445 | 13 786 | 439 | 14 225 |
Condensed consolidated statement of cash flows
Six months ended | Year ended | |||
Notes | 31 Mar 2013 Reviewed Rm | 31 Mar 2012 Reviewed Rm | 30 Sept 2012 Audited Rm | |
Cash flow from operating activities | ||||
Operating cash flows before movements in working capital | 2 653 | 2 384 | 5 199 | |
Increase in working capital | (2 408) | (3 574) | (3 128) | |
Cash generated from operations before investment in rental assets | 245 | (1 190) | 2 071 | |
Net investment in fleet leasing and equipment rental assets | 11 | (702) | (685) | (1 481) |
Net investment in vehicle rental fleet | 11 | (406) | (470) | (633) |
Cash utilised in operations | (863) | (2 345) | (43) | |
Realised fair value adjustments on financial instruments | 55 | (33) | (19) | |
Finance costs and investment income | (407) | (308) | (696) | |
Taxation paid | (378) | (295) | (596) | |
Cash outflow from operations | (1 593) | (2 981) | (1 354) | |
Dividends paid (including non-controlling interest) | 12 | (358) | (250) | (443) |
Net cash applied to operating activities | (1 951) | (3 231) | (1 797) | |
Net cash applied to investing activities | (963) | (231) | (1 120) | |
Acquisition of subsidiaries, investments and intangibles | 13 | (594) | (88) | (1 589) |
Proceeds on disposal of subsidiaries, investments, intangibles and loans repaid | 14 | 7 | 931 | |
Net investment in leasing receivables | (5) | 33 | 98 | |
Acquisition of property, plant and equipment | (417) | (327) | (824) | |
Proceeds on disposal of property, plant and equipment | 53 | 144 | 264 | |
Net cash outflow before financing activities | (2 914) | (3 462) | (2 917) | |
Net cash from financing activities | 1 902 | 1 790 | 2 715 | |
Ordinary shares issued | 1 | 1 | 2 | |
Shares repurchased for forfeitable share plan | (24) | |||
Purchase of non-controlling interest | (125) | |||
Increase in interest-bearing liabilities | 2 026 | 1 789 | 2 737 | |
Net decrease in cash and cash equivalents | (1 012) | (1 672) | (202) | |
Cash and cash equivalents at beginning of period | 2 624 | 2 754 | 2 754 | |
Effect of foreign exchange rate movements | 113 | (29) | 72 | |
Effect of cash balances held for sale | (16) | |||
Cash and cash equivalents at end of period | 1 709 | 1 053 | 2 624 | |
Notes to the condensed consolidated financial statements
1. | BASIS OF PREPARATION | |||
The condensed financial information has been prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS), IAS 34: Interim Financial Reporting and in compliance with the requirements of the Companies Act, No 71 of 2008 of South Africa. The report has been prepared using accounting policies that comply with IFRS which are consistent with those applied in the financial statements for the year ended 30 September 2012. | ||||
This report was prepared under the supervision of IG Stevens, BCom CA (SA), Group General Manager - Finance. | ||||
Six months ended | Year ended | |||
31 Mar 2013 Reviewed Rm | 31 Mar 2012 Reviewed Rm | 30 Sept 2012 Audited Rm | ||
2. | RECONCILIATION OF NET PROFIT TO HEADLINE EARNINGS | |||
Net profit attributable to Barloworld shareholders | 643 | 429 | 1 559 | |
Adjusted for the following: | ||||
Loss/(profit) on disposal of subsidiaries and investments (IAS 27) | 31 | 32 | (571) | |
Profit on disposal of properties (IAS 16) | (14) | (9) | ||
Loss on sale of plant and equipment excluding rental assets (IAS 16) | 2 | 1 | 2 | |
Impairment of goodwill (IFRS 3) | 3 | 8 | 363 | |
Impairment of plant and equipment (IAS 16) and intangibles (IAS 38) | 31 | |||
Gross remeasurements excluded from headline earnings | 36 | 27 | (184) | |
Taxation charge on disposal of subsidiaries (IAS 27) | (3) | 62 | 65 | |
Taxation benefit on impairment of plant and equipment (IAS 16) and intangible assets (IAS 38) | (6) | |||
Taxation effects of remeasurements | (3) | 62 | 59 | |
Non-controlling interest in subsidiariesin remeasurements | (2) | (2) | ||
Net remeasurements excluded from headline earnings | 33 | 87 | (127) | |
Headline earnings | 676 | 516 | 1 432 | |
Weighted average number of ordinary shares in issue during the period (000) | ||||
- basic | 210 636 | 210 946 | 210 693 | |
- diluted | 211 376 | 212 219 | 212 244 | |
Headline earnings per share (cents) | ||||
- basic | 320.9 | 244.6 | 679.7 | |
- diluted | 319.8 | 243.1 | 674.7 | |
Six months ended | Year ended | |||
31 Mar 2013 Reviewed Rm | 31 Mar 2012 Reviewed Rm | 30 Sept 2012 Audited Rm | ||
3. | OPERATING PROFIT | |||
Included in operating profit | ||||
Cost of sales (including allocation of depreciation) | 25 195 | 22 333 | 46 677 | |
Loss on disposal of other plant and equipment | 2 | 1 | 19 | |
Amortisation of intangible assets in terms of IFRS 3 Business Combinations | 14 | 15 | 30 | |
4. | FAIR VALUE ADJUSTMENTS ON FINANCIAL INSTRUMENTS | |||
Gains/(losses) arising from: | ||||
Forward exchange contracts and other financial instruments | 2 | (109) | (119) | |
Translation of foreign currency monetary items | 5 | 3 | 26 | |
7 | (106) | (93) | ||
5. | NET FINANCE COSTS AND DIVIDENDS RECEIVED | |||
Total finance costs | (493) | (376) | (827) | |
Interest on financial assets not at fair value through profit or loss | 17 | 28 | 49 | |
Net finance costs | (476) | (348) | (778) | |
Dividends - listed and unlisted investments | 1 | 1 | 2 | |
(475) | (347) | (776) | ||
6. | EXCEPTIONAL ITEMS | |||
(Loss)/profit on acquisitions and disposal of properties, investments and subsidiaries | (31) | (16) | 586 | |
Impairment of goodwill | (3) | (8) | (363) | |
Impairment of investments | (2) | (2) | ||
Impairment of property, plant and equipment | (31) | |||
Gross exceptional (loss)/profit | (34) | (26) | 190 | |
Taxation charge on exceptional items | 3 | (62) | (59) | |
Net exceptional (loss)/profit beforenon-controlling interest | (31) | (88) | 131 | |
Non-controlling interest on exceptional items | 2 | 2 | ||
Net exceptional (loss)/profit | (31) | (86) | 133 | |
Six months ended | Year ended | |||
31 Mar 2013 Reviewed Rm | 31 Mar 2012 Reviewed Rm | 30 Sept 2012 Audited Rm | ||
7. | TAXATION | |||
Taxation per income statement | (333) | (343) | (789) | |
Prior year taxation | 4 | 5 | (38) | |
Taxation on exceptional items | 3 | (62) | (59) | |
Taxation on profit before STC, prior year taxation and exceptional items | (340) | (286) | (692) | |
Secondary taxation on companies | (25) | (26) | ||
Effective taxation rate excluding exceptional items, prior year taxation (%) | ||||
- excluding STC | 34.2 | 34.5 | 32.7 | |
- including STC | 34.2 | 37.4 | 33.9 | |
8. | VENTURES | |||
Joint ventures | 268 | 161 | 253 | |
Unlisted associates | 240 | 125 | 159 | |
508 | 286 | 412 | ||
Loans and advances | 19 | 19 | 18 | |
527 | 305 | 430 | ||
9. | LONG-TERM FINANCIAL ASSETS | |||
Listed investments* | 1 | 9 | 7 | |
Unlisted investments | 25 | 25 | 25 | |
26 | 34 | 32 | ||
Other long-term financial assets | 47 | 113 | 65 | |
73 | 147 | 97 | ||
* PPC shares held amounting to R1 million (March 2012: R9 million and September 2012: R7 million) for the commitment to deliver PPC shares to option holders following the unbundling of PPC. | ||||
Six months ended | Year ended | |||
31 Mar 2013 Reviewed Rm | 31 Mar 2012 Reviewed Rm | 30 Sept 2012 Audited Rm | ||
10. | ASSETS CLASSIFIED AS HELD FOR SALE | |||
The major classes of assets and liabilities comprising the disposal group and other assets classified as held for sale are as follows: | ||||
Property, plant and equipment | 44 | 275 | ||
Inventories | 83 | 154 | ||
Trade and other receivables | 150 | 207 | ||
Cash balances | 16 | |||
Assets of disposal group held for sale | 293 | 636 | ||
Trade and other payables | (155) | |||
Other current and non-current liabilities | (26) | |||
Interest-bearing liabilities | (24) | |||
Total liabilities associated with assets classified as held for sale | (205) | |||
Net assets classified as held for sale | 88 | 636 | ||
Per business segment: | ||||
Equipment | 9 | |||
Handling | 88 | 627 | ||
Total group | 88 | 636 | ||
11. | NET INVESTMENT IN FLEET LEASING AND RENTAL ASSETS | |||
Net investment in fleet leasing and equipment rental assets | (702) | (685) | (1 481) | |
Additions | (1 356) | (1 231) | (2 626) | |
Proceeds and transfers on disposals | 654 | 546 | 1 145 | |
Net investment in vehicle rental fleet | (406) | (470) | (633) | |
Additions | (1 194) | (1 202) | (2 108) | |
Proceeds and transfers on disposals | 788 | 732 | 1 475 | |
12. | DIVIDENDS PAID | |||
Ordinary shares | ||||
Final dividend No 168 paid on 14 January 2013: 150 cents per share (2012: No 166 - 105 cents per share) | (320) | (223) | (223) | |
Interim dividend No 167 paid on 18 June 2012: 80 cents per share | (170) | |||
Paid to Barloworld Limited shareholders | (320) | (223) | (393) | |
Paid to non-controlling interest | (38) | (27) | (50) | |
| (358) | (250) | (443) | |
| 6% cumulative non-redeemable preference shares Preference dividends totalling R22 500 were declared and paid on each of the following dates: - 9 October 2012 (paid on 5 November 2012) - 17 April 2012 (paid on 30 April 2012) Preference dividends totalling R22 500 were declared on 8 April 2013 and paid on 6 May 2013. | |||
Six months ended | Year ended | |||
31 Mar 2013 Reviewed Rm | 31 Mar 2012 Reviewed Rm | 30 Sept 2012 Audited Rm | ||
13. | ACQUISITION OF SUBSIDIARIES, INVESTMENTS AND INTANGIBLES | |||
Inventories acquired | (218) | (4) | (746) | |
Receivables acquired | (154) | (98) | (221) | |
Payables, taxation and deferred taxation acquired | 173 | 90 | 227 | |
Borrowings net of cash | 311 | 156 | 161 | |
Provisions | 99 | |||
Property, plant and equipment, other non-current assets and non-controlling interest | (421) | (162) | (197) | |
Total net assets acquired | (309) | (18) | (677) | |
Goodwill arising on acquisition | (17) | (11) | (54) | |
lntangibles arising on acquisition in terms of IFRS 3 Business Combinations | (134) | (6) | (706) | |
Total purchase consideration | (460) | (35) | (1 437) | |
Deconsolidation of joint venture | 21 | 21 | ||
Net cash cost of subsidiary acquired | (460) | (14) | (1 416) | |
Bank balances and cash in subsidiaries acquired | 3 | |||
Investments and intangibles acquired | (134) | (74) | (176) | |
Cash amounts paid to acquire subsidiaries, investments and intangibles | (594) | (88) | (1 589) | |
The group acquired the Bucyrus Russia mining equipment sales and support business for a total cash consideration of R420 million with effect from 3 December 2012. The primary reason for acquisition was to align the company with the increased product range offered by its principal, Caterpillar Inc. The new product range comprised surface and underground mining equipment including support service capability. Barloworld Logistics Africa (Pty) Limited entered into a transaction which resulted in the merger of its Dedicated Transport Services division (DTS) with the Manline group. The primary reason for the acquisition was to align with our strategy to build a leading, integrated logistics business. The transaction involved the disposal of DTS together with a cash contribution (R40 million) in exchange for shares (50.1%) in Manline (Pty) Limited. The merged business is called Barloworld Transport Solutions and became a 50.1% held subsidiary of Barloworld Logistics effective from 30 January 2013. The initial accounting for deferred taxation, amortisation, intangible assets and goodwill, at the end of the interim reporting period in respect of the above acquisitions, is provisional. The goodwill and intangible assets valuations are being finalised. | ||||
Six months ended | Year ended | ||||
31 Mar 2013 Reviewed Rm | 31 Mar 2012 Reviewed Rm | 30 Sept 2012 Audited Rm | |||
14. | PROCEEDS ON DISPOSAL OF SUBSIDIARIES, INVESTMENTS, INTANGIBLES AND LOANS REPAID: | ||||
Inventories disposed | 11 | 203 | |||
Receivables disposed | 526 | ||||
Payables, taxation and deferred taxation balances disposed | (7) | (268) | |||
Borrowings net of cash | (60) | ||||
Property, plant and equipment, non-current assets, goodwill and intangibles | 548 | ||||
Net assets disposed | 4 | 949 | |||
Less: Non-cash translation reserves realised on disposal of foreign subsidiaries | (593) | ||||
Total net assets disposed | 4 | 356 | |||
Profit on disposal | 3 | 596 | |||
Net cash proceeds on disposal of subsidiaries | 7 | 952 | |||
Bank balances and cash in subsidiaries disposed of | (21) | ||||
Cash proceeds on disposal of subsidiaries, investments, intangibles and loans repaid | 7 | 931 | |||
15. | CASH AND CASH EQUIVALENTS | ||||
Cash balances not available for use due to reserving and other restrictions | 283 | 501 | 182 | ||
16. | COMMITMENTS | ||||
Capital commitments to be incurred | 2 233 | 1 308 | 1 556 | ||
Contracted - property, plant and equipment | 1 179 | 980 | 644 | ||
Contracted - vehicle rental fleet | 664 | 142 | 711 | ||
Approved but not yet contracted | 390 | 186 | 201 | ||
Operating lease commitments | 1 814 | 2 019 | 1 810 | ||
Capital expenditure will be financed by funds generated by the business, existing cash resources and borrowing facilities available to the group. | |||||
17. | CONTINGENT LIABILITIES | ||||
Bills, lease and hire-purchase agreements discounted with recourse, other guarantees and claims | 1 600 | 930 | 1 440 | ||
Litigation, current or pending, is not considered likely to have a material adverse effect on the group | |||||
Buy-back and repurchase commitments* | 317 | 197 | 131 | ||
\* The related assets are estimated to have a value at least equal to the repurchase commitment. |
| ||||
The group has given guarantees to the purchaser of the coatings Australian business relating to environmental claims. The guarantees are for a maximum period of eight years up to July 2015 and are limited to the sales price received for the business. Freeworld Coatings Limited is responsible for the first AU$5 million of any claim in terms of the unbundling arrangement. | ||||
Warranties and guarantees have been given as a consequence of the various disposals completed during the year and prior years. None is expected to have a material impact on the financial results of the group. | ||||
The amount disclosed represents the Group's share of contingent liabilities. The extent to which an outflow of funds will be required is dependent on future operations being more or less favourable than currently expected. | ||||
Progress has been made in respect of the equipment failure at a customer which was reported last year. The cause of the failure and the cost of rectification has been determined and rectification is under way. The company has reciprocal agreements with suppliers and contractors and as a result does not expect a material loss. | ||||
There are no material contingent liabilities in joint venture companies. | ||||
18. | RELATED PARTY TRANSACTIONS | |||
There has been no significant change in related party relationships since the previous year. | ||||
Other than in the normal course of business, there have been no other significant transactions during the year with associate companies, joint ventures and other related parties. | ||||
19. | EVENTS AFTER THE REPORTING PERIOD | |||
The Belgium Handling business was sold to management on 8 May 2013. The purchaser acquired the shares of the company and will represent the Hyster forklift brand in the existing dealership territory in Belgium. The sale realised net cash proceeds of €7.5 million. | ||||
20. | AUDITOR'S REVIEW | |||
Deloitte & Touche has reviewed these interim results. This review was conducted in accordance with the International Standards on Review Engagement 2410, Review of Interim Financial Information performed by the Independent Auditor. | ||||
Their unmodified review conclusion is available for inspection at the company's registered office. Any reference to future financial performance indicated in this report has not been reviewed or reported on by the group's auditors. | ||||
Additionally, Deloitte & Touche has performed certain agreed-upon procedures in respect of certain of the non-financial salient features on page 24. No assurance has been provided in relation to this information. Their agreed-upon procedures report is available for inspection at the company's registered office. | ||||
Operating segments
Revenue | Operating profit/(loss) | Fair value adjustmentson financial instruments | |||||||
Six months ended | Year ended | Six months ended | Year ended | Six months ended | Year ended | ||||
31 Mar 2013 Reviewed Rm | 31 Mar 2012 Reviewed Rm | 30 Sept 2012 Audited Rm | 31 Mar 2013 Reviewed Rm | 31 Mar 2012 Reviewed Rm | 30 Sept 2012 Audited Rm | 31 Mar 2013 Reviewed Rm | 31 Mar 2012 Reviewed Rm | 30 Sept 2012 Audited Rm | |
Equipment and Handling | 15 001 | 13 976 | 29 047 | 842 | 746 | 1 778 | 3 | (111) | (106) |
Automotive and Logistics | 16 299 | 14 135 | 29 490 | 673 | 531 | 1 152 | 3 | 5 | 12 |
Corporate | 10 | 10 | 17 | (52) | 5 | 58 | 1 | 1 | |
Total | 31 310 | 28 121 | 58 554 | 1 463 | 1 282 | 2 988 | 7 | (106) | (93) |
Southern Africa | 22 999 | 19 679 | 41 420 | 1 290 | 1 160 | 2 630 | 8 | (109) | (79) |
Europe | 5 606 | 5 177 | 11 074 | 118 | 68 | 245 | (1) | 3 | (14) |
United States | 6 | 882 | 1 013 | 3 | 9 | (14) | |||
Australia and Asia | 2 699 | 2 383 | 5 047 | 52 | 45 | 127 | |||
Total | 31 310 | 28 121 | 58 554 | 1 463 | 1 282 | 2 988 | 7 | (106) | (93) |
Segment result: Operating profit/(loss) including fair value adjustments | Operating margin (%) | Net operating assets/ (liabilities) | ||||||
Six months ended | Year ended | Six months ended | Year ended | |||||
31 Mar 2013 Reviewed Rm | 31 Mar 2012 Reviewed Rm | 30 Sept 2012 Audited Rm | 31 Mar 2013 Reviewed % | 31 Mar 2012 Reviewed % | 30 Sept 2012 Audited % | 31 Mar 2013 Reviewed Rm | 30 Sept 2012 Audited Rm | |
Equipment and Handling | 845 | 635 | 1 672 | 5.6 | 5.3 | 6.1 | 14 748 | 11 333 |
Automotive and Logistics | 676 | 536 | 1 164 | 4.1 | 3.8 | 3.9 | 9 412 | 8 003 |
Corporate | (51) | 5 | 59 | (704) | (415) | |||
Total | 1 470 | 1 176 | 2 895 | 4.7 | 4.6 | 5.1 | 23 456 | 18 921 |
Southern Africa | 1 298 | 1 051 | 2 551 | 5.6 | 5.9 | 6.3 | 17 557 | 14 353 |
Europe | 117 | 71 | 231 | 2.1 | 1.3 | 2.2 | 4 452 | 3 156 |
United States | 3 | 9 | (14) | 44.4 | 1.0 | (1.4) | (15) | (15) |
Australia and Asia | 52 | 45 | 127 | 1.9 | 1.9 | 2.5 | 1 462 | 1 427 |
Total | 1 470 | 1 176 | 2 895 | 4.7 | 4.6 | 5.1 | 23 456 | 18 921 |
Salient features
Six months ended | Year ended | |||||
31 Mar 2013 | 31 Mar 2012 | 30 Sept 2012 | ||||
Financial | ||||||
Headline earnings per share (cents) | 320.9 | 244.6 | 679.7 | |||
Dividends per share (cents) | 96 | 80 | 230 | |||
Operating margin (%) | 4.7 | 4.6 | 5.1 | |||
Net asset turn (times) | 2.5 | 2.7 | 2.7 | |||
EBITDA/interest paid (times) | 5.1 | 6.0 | 5.9 | |||
Net debt/equity (%) | 77.4 | 64.7 | 56.7 | |||
Return on net operating assets (RONOA) (%) | 14.6 | 16.2 | 18.8 | |||
Net asset value per share including investments at fair value (cents) | 6 491 | 5 774 | 6 062 | |||
Number of ordinary shares in issue, including BEE shares (000) | 231 106 | 230 934 | 231 012 | |||
Non-financial | ||||||
Energy Consumption (GJ)^* | 946 614 | 982 120 | 1 921 347 | |||
Greenhouse gas emissions (tCO2e)^*∆ | 98 142 | 100 909 | 197 489 | |||
Water consumption (ML)* | 346 | 386 | 799 | |||
Number of employees^* | 19 645 | 19 122 | 19 238 | |||
LTIFR^*+ | 1.10 | 1.19 | 1.22 | |||
Fatalities* | 0 | 0 | 1 | |||
dti# B-BBEE rating (level) ** | 2 | 2 | 2 | |||
Closing rate | Average rate | |||||
Six months ended | Year ended | Six months ended | Year ended | |||
31 Mar 2013 Rand | 31 Mar 2012 Rand | 30 Sept 2012 Rand | 31 Mar 2013 Rand | 31 Mar 2012 Rand | 30 Sept 2012 Rand | |
Exchange rates | ||||||
United States dollar | 9.17 | 7.67 | 8.25 | 8.78 | 7.86 | 8.02 |
Euro | 11.78 | 10.22 | 10.62 | 11.51 | 10.51 | 10.45 |
British Sterling | 13.93 | 12.26 | 13.32 | 13.91 | 12.44 | 12.69 |
^ Agreed-upon procedures as at 31 March 2013, no assurance has been provided in this regard by the group
auditors.
* Limited assurance provided at 30 September 2012.
∆ Scope 1 and scope 2.
+ Lost time injuries x 200 000 divided by total hours worked.
# Department of Trade and Industry (South Africa).
**Audited and verified by Empowerdex at 12 December 2012.
About Barloworld
Barloworld is a distributor of leading international brands providing integrated rental, fleet management, product support and logistics solutions. The core divisions of the group comprise Equipment (earthmoving and power systems), Automotive and Logistics (car rental, motor retail, fleet services, used vehicles and disposal solutions, logistics management and supply chain optimisation) and Handling (materials handling and agriculture). We offer flexible, value adding, integrated business solutions to our customers backed by leading global brands. The brands we represent on behalf of our principals include Caterpillar, Hyster, Avis, Audi, BMW, Ford, General Motors, Mazda, Mercedes-Benz, Toyota, Volkswagen, Massey Ferguson and others.
Barloworld has a proven track record of long-term relationships with global principals and customers. We have an ability to develop and grow businesses in multiple geographies including challenging territories with high growth prospects. One of our core competencies is an ability to leverage systems and best practices across our chosen business segments. As an organisation we are committed to sustainable development and playing a leading role in empowerment and transformation. The company was founded in 1902 and currently has operations in 26 countries around the world with approximately 70% of just over 19 500 employees in South Africa.
Corporate information
Registered office and business address
Barloworld Limited, 180 Katherine Street, PO Box 782248, Sandton, 2146, South Africa
Tel +27 11 445 1000
Email invest@barloworld.com
Directors
Non-executive: DB Ntsebeza (Chairman), NP Dongwana, AGK Hamilton*, SS Mkhabela, B Ngonyama, SS Ntsaluba, TH Nyasulu, SB Pfeiffer•
Executive: CB Thomson (Chief Executive), PJ Blackbeard, PJ Bulterman, M Laubscher, OI Shongwe, DG Wilson
*British •American
Group company secretary
Lerato Manaka
Enquiries:
Barloworld Limited: Lethiwe Motloung
Tel +27 11 445 1000
Email invest@barloworld.com
College Hill: Jacques de Bie
Tel +27 11 447 3030
Email Jacques.deBie@collegehill.co.za
For background information visit www.barloworld.com