Final Results
24 Fevereiro 2003 - 5:00AM
UK Regulatory
RNS Number:8430H
United Plantations Africa Ld
24 February 2003
UNITED PLANTATIONS AFRICA LIMITED
Summarised Audited Consolidated Profit and Loss Accounts
the year ended 31st December 2002
2002 2001
R'000 R'000
Turnover 55,389 59,233
Consolidated profit on ordinary 2,364 3,707
activities before taxation and
interest and dividends
attributable to Preference Shares
Taxation - -
-------- --------
Consolidated profit on ordinary 2,364 3,707
activities after taxation
Less interest and dividends 1,812 1,773
attributable to Preference Shares
-------- --------
Profit for the year attributable 552 1,934
to Ordinary Shares
-------- --------
Earnings per ordinary share - 2.69c 9.42c
basic (note 1.1)
- diluted (note 1.2) 8.44c 13.22c
Notes
1. The calculation of the basic earnings per share is based on the
following data:
Net profit per period - basic (note 1.1) 552 1 934
Net profit for period -dilution (note 1.2) 2 364 3 707
====== ======
Number of shares ( '000s)
1.1 Weighted number of ordinary shares for
the purpose of earnings per share 20 524 20 524
Effect of dilution potential of ordinary
share capital through convertible
Preference Shares 7 500 7 500
1.2 Weighted average number of ordinary
shares for --------- --------
the purpose of diluted earnings
per share 28 024 28 024
--------- --------
2. Preference shares have been disclosed in two parts, a liability
portion and an equity portion, in the Annual Financial Statements in terms of
IAS 32. The interest and dividends referred to above are in respect of these
preference shares and have been deducted for the purpose of the diluted earnings
per share calculation.
3. All figures in South African Rand ("R") and cents ("c"): on 31st
December 2002 SA Rand 1.00 = GBP 0.0720 = DKK 0.8182
COMMENTARY
2002 result
The result for 2002 was a profit of R 552,000 compared with a net profit of
R1.934 million in 2001. Turnover in 2002 was R 55.389 million, compared with R
59.233 million in 2001. Of the total turnover, citrus comprised R 42.3 million
compared with R 47.9 million reported in 2001.
Hail experienced at the end of the year, mainly on Ngonini Estate, curtailed
production in 2002, and led to the loss of 150,000 cartons of exportable citrus.
The increasing requirements by the major European buyers, in terms of quality
and size standards, continues to limit the total volume of fruit into the
market. This limitation had the effect of maintaining high prices during the
earlier part of the season due to lower volumes of fruit available for sale.
The long-term citrus replanting programme implemented five years ago should lead
to significantly increased production per hectare in coming years, and thus
reduce per tonne production costs. In the interim, the Board continues actively
to maintain costs under strict control and to seek to achieve more sustainable
and controllable levels of profitability.
The result for the year, although positive, has not significantly relieved the
pressure on the company's finances. Support was provided by the company's major
shareholder during the year, as well as the company's bankers. The Directors are
confident that this support will continue into the coming year.
Production and Sales
Citrus
Grapefruit
2002 2001 2000
15 kg export cartons 408 000 431 000 533 000
The increase of total grapefruit volumes to the EU led to a sharp decline in
prices for Marsh grapefruit. In the UK the grapefruit market was more stable in
the face of a small increase in grapefruit volumes. Red grapefruit prices in
both the EU and UK markets dropped from high initial levels and then stabilized.
In Japan prices remained reasonably stable despite a carryover of Florida
grapefruit. Demand for red grapefruit in the Japanese market increased.
Oranges 2002 2001 2000
15 kg export cartons 672 000 708 000 679 000
Orange exports were lower than in previous years due to the hail storm that
damaged orchards at Ngonini in 2001. The UK orange market performed well on
limited volumes. Prices in both the UK and EU declined from early levels to
stabilise for the remainder of the season.
Limes 2002 2001 2000
5 kg trays - export 29 300 65 100 48 300
5 kg trays - local 14 300 18 600 5 800
The hail storm damage sustained during 2001 reduced fresh fruit export volumes.
The number of cartons available for export is expected to recover to 2001 levels
during 2003.
Bananas 2002 2001 2000
Tons 3 400 3 193 1 290
Banana production recovered from the hail damage incurred in late 2001, and
changes from flood to drip irrigation have improved yields. Prices fluctuated
during the year giving a slightly better than industry average prices for the
whole year.
Sugar 2002 2001 2000
Tons 5 144 3 927 5 543
The sugar harvest progressed well and yielded 5144 tons of sucrose, and prices
on the world market rose during the year. An additional 40ha of sugar cane has
been planted early in 2003, increasing the total area under citrus to 389 ha.
Weather
The weather during 2002 has been extremely dry, with very hot winds, but no
hail. Pumping costs for the year were consequently higher due to the dry
conditions. River levels have been at record lows for the time of year.
The dry conditions exerted beneficial effects on the pest and disease status of
the orchards on both estates. This resulted in savings on chemicals that
partially offset the higher pumping costs.
The gale force winds and hail experienced during 2001 had a major effect on the
crop harvested in 2002, reducing the yield at Ngonini by over a third of the
normal harvest.
Dividend
No ordinary dividend will be recommended in respect of the year 2002.
Prospects for 2003
Prospects for 2003 appear reasonable. Prices are expected to prevail at levels
similar to those prevailing in 2002. The recent and significant strengthening of
the South African rand since October 2002, however, is a cause for concern as a
sustained stronger rand will reduce export proceeds.
The Exporter's Forum, of which United Plantations is a member, will continue to
co-ordinate the timing and flows of citrus products into the traditional markets
as a means of optimizing marketing conditions.
The mediation process initiated in 2002 was amicably resolved, and wage
negotiations for the 2003 year have been completed. Industrial relations remain
good.
Annual General Meeting
The Annual General Meeting will be held at the registered offices of the Company
in Nelspruit, Mpumalanga, South Africa on Monday 19th May 2003 commencing at
12:00pm
For shareholders unable to attend the Annual General Meeting, an informal
meeting will be held at Borssalen, Borsen, Copenhagen, on Friday 23rd May 2003
commencing at 10:00am
On Behalf of the Board
JEB Hebbert
SECRETARY
24 February 2003
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UORUROSRUUUR