PESD.L Regulatory News (PESD)

27 Apr 2006 13:50

Press Corporation27 April 2006 PRESS CORPORATION LIMITED EXTRACTS FROM THE AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2005 FINANCIAL HIGHLIGHTS GROUP COMPANY 15 months 15 months REVIEW 2005 2004 2005 2004 MK'm MK'm MK'm MK'm RESULTS FOR THE YEAR ENDED GROUP INCOME STATEMENT Restated 31 DECEMBER 2005 Turnover 11,824 12,363 984 908 Operating profit 2,555 2,747 275 248 Net financing income/(costs) 94 (9) 187 71 Profit of the company and its 2,649 2,738 462 319 subsidiaries before tax Share of associated companies profit 742 390 - - Press Corporation Limited after tax changed its financial year-end Profit before taxation 3,391 3,128 462 319 from 30 September to 31 Taxation (1,148) (1,110) (201) (99) December in 2004. As a result Profit after taxation 2,243 2,018 261 220 of this change, comparative Attributable to minorities (586) (755) - - information for 2004 is for Write-off of goodwill on consolidation - (121) - (121) fifteen months. Profit attributable to shareholders 1,657 1,142 261 99 Dividends paid (223) (286) (223) (286) Retained profit for the year/ (loss) 1,434 856 38 (187) Consolidated profit GROUP CASH FLOW STATEMENT attributable to shareholders Operating activities for the year was MK1, 657 Cash receipts from customers 16,042 16,819 42 39 million (Fifteen months 2004 Cash paid to suppliers & employees (14,244) (13,855) (363) (344) MK1, 142 million), and a 45% Cash generated from operations 1,798 2,964 (321) (305) improvement over prior period. Interest & tax paid (1,213) (1,302) (108) (86) (For noting: on an annualised Cash flows from operating activities 585 1,662 (429) (391) basis, the current year result Investing activities is 81% above that for 2004). Proceeds on disposal of property, plant 137 377 21 - This has been achieved in & equipment spite of operational problems Dividends received 354 323 984 909 in Presscane Limited, which Interest received 188 271 34 83 were compounded by exchange Additions to property, plant & (1,195) (1,419) - - losses on foreign currency equipment denominated liabilities. Net investments & loans 1,151 (349) (207) (586) Presscane Limited also 635 (797) 832 406 incurred an impairment loss of Financing activities MK348 million in complying Dividends paid (223) (286) (223) (286) with IAS 16 revised, of which Net long term borrowing (171) 128 - - MK152 million has been charged (394) (158) (223) (286) to its income statement in the current year. Net increase in cash & cash equivalents 826 707 180 (271) Opening cash & cash equivalents 5,188 4,481 89 360 Closing cash & cash equivalents 6,014 5,188 269 89 Share of associated companies' GROUP BALANCE SHEET profit after tax was MK742 million for the year compared Employment of Capital Restated to MK390 million attained in Property Plant and Equipment 7,267 6,078 7,491 4,224 the fifteen-month period ended Investments 4,666 4,104 2,239 1,824 31 December 2004. This Net current assets 364 451 31 290 significant improvement is 12,297 10,633 9,761 6,338 attributable to the good Capital Employed performance of Limbe Leaf Shareholders funds 8,366 6,651 9,759 6,336 Tobacco Company Limited and Minority interests 2,492 2,093 - - the Bottling and Brewing Group Long term loans 940 1,091 2 2 Limited. Deferred tax liability 499 798 - - 12,297 10,633 9,761 6,338 SHARE PERFORMANCE National Bank of Malawi's performance remained strong Average weighted number of shares in 110.20 110.20 110.20 110.20 during the year. The Retail issue (Millions) and Consumer Goods division, Earnings per share (MK) 15.04 10.36 2.37 0.90 registered mixed results but Cash retained from operations ( MK) 5.31 15.08 (3.89) (3.55) overall contribution to the Dividend per share (MK) 2.02 2.60 2.02 2.60 Group remained stable. Net asset value (MK) 3.30 4.09 0.28 2.63 Market value (MK) 50.00 20.00 50.00 20.00 Price earnings (PE) ratio 3.33 1.93 21.11 22.26 INVESTMENTS During the year, phase one of the PCL initiated fish farming project under Maldeco Aquaculture Limited, was completed. The project was officially launched on 23 February 2006 by the State President of the Republic of Malawi His Excellency Dr. Bingu Wa Mutharika in line with Government's Presidential Initiative on Aquaculture Development. Negotiations for acquisition of 80% of shares in Malawi Telecommunications Limited were concluded during the year, and the company was officially handed over to Telecom Holdings Limited a subsidiary of Press Corporation Limited on 15 February 2006. Malawi Pharmacies Limited was disposed-of during the year. Tambala Food Products division was restructured and the Tambala section of the business were disposed of. In 2005 the board of PCL, approved the merger of Malawi Distilleries Limited and The Bottling and Brewing Group. DIVIDENDS An interim dividend of MK55.1 million representing MK0.50 per share was paid on 28 October 2005. The Board has recommended a final dividend for 2005 of MK345 million representing MK3.12 per share. A resolution to approve the final dividend will be tabled at the forthcoming Annual General Meeting of the company. STRATEGIC DIRECTION Having successfully concluded implementation of the two major projects, aquaculture and telecommunications, PCL aims to consolidate its position while continuing to explore viable investment opportunities. Mr. Dean Lungu Dr. M.A.P. Chikaonda Chairman Group Chief Executive Blantyre 31 March 2006 The Auditors of the company, KPMG, have reviewed this statement. A copy of this announcement has been posted to all shareholders. Additional copies may be obtained from Stockbrokers Malawi Limited. This information is provided by RNS The company news service from the London Stock Exchange