Wrap Text
Unaudited Interim Results for the Period Ended 30 June 2017 and Cash Dividend Declaration
BELL EQUIPMENT LIMITED
('Bell' or 'the group' or 'the company')
(Incorporated in the Republic of South Africa)
Share code: BEL
ISIN: ZAE000028304
Registration number: 1968/013656/06
UNAUDITED INTERIM RESULTS FOR THE PERIOD ENDED 30 JUNE 2017 AND CASH DIVIDEND DECLARATION
Highlights
Unaudited Unaudited
30 June 2017 30 June 2016
Revenue - Up 11% R3,4bn R3,1bn
NPAT - Up 86% R119,6m R64,3m
HEPS - Up 78% 119c 67c
Net cash inflow - Up 1917% R227,8m R11,3m
Dividend - Up 33% 20c 15c
Commentary
Bell Equipment Limited has enjoyed more positive trading conditions from most of its global markets
over the period. Outlook for growth from our mining sector and commodity markets in South Africa,
Australia and Russia is positive with a slow recovery evident.
The UK and USA remain key markets with relatively stable sales given the significant political
changes and resultant uncertainty over the period.
The European market continues to show steady growth and our operations in both France and
Germany have benefited. The investment in our new European Logistics Centre has been completed
and the facility is now fully operational. Significant improvements in customer service levels and a
reduction in operational costs are beginning to flow through.
The E-series range of trucks, and in particular the new concept B60E and B20E LGP units, continue to
garner positive reviews from users around the globe and will in time add additional throughput for
our business.
The stronger Rand in the first half of 2017 has affected turnover and margin in both our domestic
and export sales, while increased costs from essential product upgrades have also proved difficult to
pass on to the market due to significant competitive pressure. These two factors have affected
profitability and are a key focus for management.
In the South African distribution business a successful BBBEE transaction has been completed which
will ensure our participation in all sectors of the economy. An important distribution agreement
with Kobelco from Japan has been concluded, extending our offering of excavators with a broader
and more competitive range of machines. Second half sales should begin to reflect this additional
volume. Further opportunities for complementing product lines have been identified and
programmes are in place to bring these to market and drive our growth plans for Africa and our
Northern Hemisphere markets.
Our traditional mining markets north of the Zambezi continue to underperform as a result of both
internal political issues and poor commodity demand. Restructuring and right-sizing continues in the
Democratic Republic of Congo, Zambia and Zimbabwe while our Mozambique operation has been
sold to an independent dealer which is better positioned for higher efficiency and absorption
through additional product lines.
Bell will continue to invest in both additional products and in distribution opportunities across the
globe. The assessment of current distribution channels, as well as the appointment of focused
dealers in non-represented countries are priorities.
Aftermarket sales and support to our existing customers remains a critical element of the business
and resources are being channelled to ensure that we are best equipped to deliver on this important
aspect of our business.
The group continues with expansion plans for our German factory as well as expansion plans for the
Richards Bay production of a new range of Trucks in association with KAMAZ from Russia. Testing
and evaluation are almost complete for the range of products selected for our African markets and
limited assembly work will begin in 2018 with plans to move to full CKD (knockdown kit) production
early in 2019.
The group has completed a formal search process and in June announced its succession plans for a
new CEO. Leon Goosen, our current COO, was appointed as the CEO designate. The plans allow for
an extended hand-over, ensuring continuity for the business, and a date for the final appointment to
the CEO position will be decided in due course. We take this opportunity to congratulate Leon
on his appointment and we have every confidence that he will lead the business to greater heights in
the years ahead as we roll out our agreed plans.
Tiisetso Tsukudu has announced his retirement as an independent non-executive director from the
Bell board after 13 years of service and the company would like to take this opportunity to thank
him for both his dedication and significant input over the years.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION Unaudited Unaudited Audited
as at 30 June 2017 30 June 30 June 31 December
R'000 2017 2016 2016
ASSETS
Non-current assets 1 102 314 910 954 1 029 444
Property, plant and equipment 767 947 584 830 704 295
Intangible assets 215 584 210 149 216 419
Investments 584 636 568
Interest-bearing long-term receivables 28 736 24 468 16 964
Deferred taxation 89 463 90 871 91 198
Current assets 3 969 145 3 763 865 3 477 504
Inventory 2 458 719 2 745 254 2 427 921
Trade and other receivables 1 127 844 850 324 751 672
Current portion of interest-bearing long-term receivables 48 610 63 571 56 546
Prepayments 62 514 20 509 21 828
Other financial assets 1 300 2 787 5 641
Current taxation assets 3 664 19 342 29 601
Cash and bank balances 266 494 62 078 184 295
TOTAL ASSETS 5 071 459 4 674 819 4 506 948
EQUITY AND LIABILITIES
Capital and reserves 2 889 849 2 919 652 2 758 247
Stated capital (Note 5) 232 244 230 567 232 139
Non-distributable reserves 565 176 669 946 553 298
Retained earnings 2 086 332 2 011 150 1 972 810
Attributable to owners of Bell Equipment Limited 2 883 752 2 911 663 2 758 247
Non-controlling interest 6 097 7 989 -
Non-current liabilities 389 372 278 078 321 787
Interest-bearing liabilities 151 107 83 314 103 175
Repurchase obligations and deferred leasing income 1 394 2 587 2 034
Deferred income 102 575 72 689 84 083
Long-term provisions and lease escalation 45 750 48 091 47 781
Deferred taxation 88 546 71 397 84 714
Current liabilities 1 792 238 1 477 089 1 426 914
Trade and other payables 1 183 513 981 929 759 463
Current portion of interest-bearing liabilities 84 150 77 185 51 268
Current portion of repurchase obligations and
deferred leasing income 3 011 1 114 763
Current portion of deferred income 98 253 79 080 82 903
Current portion of provisions and lease escalation 79 298 58 207 69 562
Other financial liabilities 1 143 6 846 952
Current taxation liabilities 42 057 22 373 15 615
Bank overdrafts and borrowings on call 300 813 250 355 446 388
TOTAL EQUITY AND LIABILITIES 5 071 459 4 674 819 4 506 948
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS Unaudited Unaudited Audited
for the period ended 30 June 2017 six months six months twelve months
ended ended ended
30 June 30 June 31 December
R'000 2017 2016 2016
Revenue 3 446 757 3 097 762 6 002 341
Cost of sales (2 744 277) (2 367 911) (4 604 486)
Gross profit 702 480 729 851 1 397 855
Other operating income 105 234 75 027 168 448
Expenses (595 030) (660 057) (1 418 055)
Profit from operating activities (Note 2) 212 684 144 821 148 248
Net interest expense (Note 3) (14 380) (18 763) (32 557)
Profit before taxation 198 304 126 058 115 691
Taxation (78 685) (61 770) (77 072)
Profit for the period/year 119 619 64 288 38 619
Profit for the period/year attributable to:
- Owners of Bell Equipment Limited 113 522 63 660 37 472
- Non-controlling interest 6 097 628 1 147
Earnings per share (basic)(cents) (Note 4) 119 67 39
Earnings per share (diluted)(cents) (Note 4) 119 67 39
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Unaudited Unaudited Audited
for the period ended 30 June 2017 six months six months twelve months
ended ended ended
30 June 30 June 31 December
R'000 2017 2016 2016
Profit for the period/year 119 619 64 288 38 619
Other comprehensive income (loss)
Items that may be reclassified subsequently to profit or loss:
Exchange differences arising during the period/year 9 388 (89 781) (221 639)
Exchange differences on translating foreign operations 8 490 (87 049) (210 970)
Exchange differences on foreign reserves 898 (2 732) (10 669)
Items that may not be reclassified subsequently to profit or loss: - 432 17 340
Surplus arising on revaluation of properties - 600 24 300
Taxation relating to surplus arising on revaluation of properties - (168) (6 960)
Other comprehensive income (loss) for the period/year, net of taxation 9 388 (89 349) (204 299)
Total comprehensive income (loss) for the period/year 129 007 (25 061) (165 680)
Total comprehensive income (loss) attributable to:
- Owners of Bell Equipment Limited 122 910 (25 689) (166 827)
- Non-controlling interest 6 097 628 1 147
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS Unaudited Unaudited Audited
for the period ended 30 June 2017 six months six months twelve months
ended ended ended
30 June 30 June 31 December
2017 2016 2016
R'000 Restated*
Cash operating profit before working capital changes 346 369 292 547 406 005
Cash utilised in working capital (101 615) (141 586) (208 338)
Cash generated from operations 244 754 150 961 197 667
Net interest paid (13 434) (14 262) (32 377)
Taxation paid (21 264) (45 322) (76 951)
Net cash generated from operating activities 210 056 91 377 88 339
Net cash utilised in investing activities (64 651) (39 435) (117 390)
Net cash generated from (utilised in) financing activities 82 369 (40 647) (33 470)
Net cash inflow/(outflow) 227 774 11 295 (62 521)
Net bank overdrafts and borrowings on call at beginning of the period/year (262 093) (199 572) (199 572)
Net bank overdrafts and borrowings on call at end of the period/year (34 319) (188 277) (262 093)
Comprising:
Cash and bank balances 266 494 62 078 184 295
Bank overdrafts and borrowings on call (300 813) (250 355) (446 388)
Net bank overdrafts and borrowings on call at end of the period/year (34 319) (188 277) (262 093)
* Refer to restatements of prior periods in note 11.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the period ended 30 June 2017 Attributable to owners of Bell Equipment Limited
Non- Non- Total
Stated distributable Retained controlling capital and
R'000 capital reserves earnings Total interest reserves
Balance at 31 December 2015 - audited 230 567 752 269 1 957 219 2 940 055 7 361 2 947 416
Recognition of share-based payments - (2 703) - (2 703) - (2 703)
Total comprehensive (loss) income for the period - (89 349) 63 660 (25 689) 628 (25 061)
Increase in statutory reserves of foreign subsidiaries - 9 729 (9 729) - - -
Balance at 30 June 2016 - unaudited 230 567 669 946 2 011 150 2 911 663 7 989 2 919 652
Total comprehensive (loss) income for the period - (114 950) (26 188) (141 138) 519 (140 619)
Transfer between reserves relating to expired share options - (517) 3 220 2 703 - 2 703
Decrease in equity-settled employee benefits reserve relating to
forfeited share options - (702) - (702) - (702)
Share options exercised 1 572 - - 1 572 - 1 572
Decrease in statutory reserves of foreign subsidiaries - (479) 479 - - -
Dividends paid - - (14 273) (14 273) - (14 273)
Transactions with non-controlling interest - - (1 578) (1 578) (8 508) (10 086)
Balance at 31 December 2016 - audited 232 139 553 298 1 972 810 2 758 247 - 2 758 247
Recognition of share-based payments - 291 - 291 - 291
BBBEE share-based payment charge - 2 199 - 2 199 - 2 199
Total comprehensive income for the period - 9 388 113 522 122 910 6 097 129 007
Share options exercised 105 - - 105 - 105
Balance at 30 June 2017 - unaudited 232 244 565 176 2 086 332 2 883 752 6 097 2 889 849
ABBREVIATED NOTES TO THE UNAUDITED INTERIM RESULTS
for the period ended 30 June 2017 Unaudited Unaudited Audited
six months six months twelve months
ended ended ended
30 June 30 June 31 December
R'000 2017 2016 2016
1 BASIS OF PREPARATION
The accounting policies applied in the preparation of this interim report are in terms of
International Financial Reporting Standards and are consistent with those applied in the
previous annual financial statements, except for the adoption of amended standards and the
prior period adjustments as described in note 11.
In the current period the group has adopted all of the amended standards relevant to its
operations and effective for annual reporting periods beginning 1 January 2017. The adoption
of these amended standards has not had any significant impact on the amounts reported in the
interim report or the disclosures herein.
The condensed consolidated interim report is prepared in accordance with the requirements of
the JSE Limited's Listings Requirements for interim reports and the requirements of the
Companies Act in South Africa. The Listings Requirements require interim reports to be
prepared in accordance with and containing the information required by IAS 34: Interim
Financial Reporting, as well as the SAICA Financial Reporting Guides as issued by the
Accounting Practices Committee and Financial Pronouncements as issued by the Financial
Reporting Standards Council. The preparation of this interim report was supervised by the
Group Finance Director, KJ van Haght CA (SA).
2 PROFIT FROM OPERATING ACTIVITIES
Profit from operating activities is arrived at after taking into account:
Income
Currency exchange gains 90 298 268 416 388 753
Decrease in provision for doubtful debts 9 581 - 6 728
Deferred warranty income 39 245 24 730 50 764
Import duty rebates 37 031 22 223 65 020
Net surplus on disposal of property, plant and equipment and intangible assets 442 - 26
Expenditure
Amortisation of intangible assets 18 053 17 026 33 229
Amounts written off as uncollectible 10 995 10 778 33 898
Auditors' remuneration - audit and other services 3 169 5 499 10 772
Consulting fees 14 044 14 490 33 270
Currency exchange losses 89 818 294 668 419 694
Depreciation of property, plant and equipment 76 632 50 626 110 985
Impairment loss recognised on rental assets - - 8 262
Increase in provision for doubtful debts - 6 437 -
Increase in warranty provision 9 980 2 321 14 060
Operating lease charges 56 873 64 823 127 370
Research expenses (excluding staff costs) 20 968 16 877 35 501
BBBEE share-based payment charge 2 199 - -
Severance pay 5 926 4 364 9 739
Staff costs (including directors' remuneration) 598 831 603 942 1 203 963
3 NET INTEREST EXPENSE
Interest expense 21 917 27 100 48 174
Interest income (7 537) (8 337) (15 617)
Net interest expense 14 380 18 763 32 557
4 EARNINGS PER SHARE
Basic earnings per share is arrived at as follows:
Profit for the period attributable to owners of Bell Equipment Limited (R'000) 113 522 63 660 37 472
Weighted average number of ordinary shares in issue during the period ('000) 95 307 95 147 95 159
Earnings per share (basic) (cents) 119 67 39
Diluted earnings per share is arrived at as follows:
Profit for the period attributable to owners of Bell Equipment Limited (R'000) 113 522 63 660 37 472
Fully converted weighted average number of shares ('000) * 95 479 95 147 95 289
Earnings per share (diluted) (cents) 119 67 39
* The number of shares has been adjusted for the effect of the dilutive potential
ordinary shares relating to the unexercised options in employee Share Option Scheme 2.
Headline earnings per share is arrived at as follows:
Profit for the period attributable to owners of Bell Equipment Limited (R'000) 113 522 63 660 37 472
Net surplus on disposal of property, plant and equipment and intangible assets (R'000) (442) - (26)
Taxation effect of net surplus on disposal of property, plant and equipment and intangible
assets (R'000) 124 - 7
Impairment loss in respect of property, plant and equipment rental assets (restated**) - - 8 262
Headline earnings (R'000) (restated**) 113 204 63 660 45 715
Weighted average number of ordinary shares in issue during the period ('000) 95 307 95 147 95 159
Headline earnings per share (basic) (cents) (restated**) 119 67 48
Diluted headline earnings per share is arrived at as follows:
Headline earnings calculated above (R'000) (restated**) 113 204 63 660 45 715
Fully converted weighted average number of shares ('000) 95 479 95 147 95 289
Headline earnings per share (diluted) (cents) (restated**) 119 67 48
Net asset value per share is arrived at as follows:
Total capital and reserves (R'000) 2 889 849 2 919 652 2 758 247
Number of shares in issue ('000) 95 307 95 147 95 297
Net asset value per share (cents) 3 032 3 069 2 894
** Refer to restatement of December 2016 headline earnings per share in note 11.
5 STATED CAPITAL
Authorised
100 000 000 (June 2016: 100 000 000) ordinary shares of no par value
Issued
95 306 885 (June 2016: 95 146 885) ordinary shares of no par value 232 244 230 567 232 139
6 CAPITAL EXPENDITURE COMMITMENTS
Contracted 14 2 822 13 228
Authorised, but not contracted 81 944 91 759 88 508
Total capital expenditure commitments 81 958 94 581 101 736
This capital expenditure is to be financed from internal resources and
long-term facilities.
7 ABBREVIATED SEGMENTAL ANALYSIS
Information regarding the group's reportable segments is presented below.
Information reported to the group's chief operating decision maker for purposes of resource
allocation and assessment of segment performance is focused on geographical areas.
Each reportable segment derives its revenues from the sale of goods (machines and parts)
and related services and rental income. The accounting policies of the reportable
segments are the same as the group's accounting policies.
Operating
Revenue profit (loss) Assets Liabilities
R'000 R'000 R'000 R'000
June 2017
South African sales operation 1 523 387 87 155 1 449 502 1 325 434
South African manufacturing and logistics operation 1 987 167 66 928 3 501 927 1 856 690
European operation 1 231 898 56 333 1 161 118 741 213
Rest of Africa operation 378 863 (46 009) 501 085 455 195
North American operation 610 884 25 456 181 888 111 961
All other operations - (26 526) 1 277 479 69 214
Inter-segmental eliminations * (2 285 442) 49 347 (3 001 540) (2 378 097)
Total - unaudited 3 446 757 212 684 5 071 459 2 181 610
June 2016
South African sales operation 1 318 376 58 459 1 126 871 765 891
South African manufacturing and logistics operation 1 599 064 127 490 2 612 221 1 053 258
European operation 1 238 232 44 617 964 033 539 861
Rest of Africa operation 452 760 (123 175) 699 970 504 061
North American operation 363 047 24 206 302 405 237 543
All other operations - (60 204) 1 215 927 124 686
Inter-segmental eliminations * (1 873 717) 73 428 (2 246 608) (1 470 133)
Total - unaudited 3 097 762 144 821 4 674 819 1 755 167
December 2016
South African sales operation 2 731 470 115 347 1 093 956 699 513
South African manufacturing and logistics operation 3 334 624 80 506 2 858 072 1 278 889
European operation 2 180 950 60 801 1 074 298 694 993
Rest of Africa operation 799 706 (185 805) 624 312 511 340
North American operation 665 612 49 810 266 720 198 098
All other operations - (163 390) 1 117 089 239 591
Inter-segmental eliminations * (3 710 021) 190 979 (2 527 499) (1 873 723)
Total - audited 6 002 341 148 248 4 506 948 1 748 701
Included in the Rest of Africa operation are past due debtors of R56.6 million (2016: R110,1
million) relating to a few customers in the group's operation in the Democratic Republic of
the Congo. These amounts have not been provided against as they are still considered
recoverable.
* Inter-segmental eliminations above relate to the following:
i) Revenue - the elimination of intra-group sales transactions, mainly sales
from the South African manufacturing and logistics operation, to the distribution
operations.
ii) Operating profit (loss) - the elimination of profit (loss) on intra-group
transactions, mainly sales transactions from the South African manufacturing
and logistics operation to the distribution operations, where the inventory has
not yet been on-sold by the distribution operations to a third party at period end.
iii) Assets and liabilities - the intra-group transactions result in intra-group
receivables and payables balances and furthermore intra-group loans are in
place between certain group operations. These are eliminated on consolidation.
Unaudited Unaudited Audited
six months six months twelve months
ended ended ended
30 June 30 June 31 December
8 CONTINGENT LIABILITIES 2017 2016 2016
8.1 The group has assisted customers with the financing of equipment purchased
through a financing venture with WesBank, a division of FirstRand Bank Limited.
In respect of the different categories of financing provided by WesBank, the group
carries certain credit risks. These are considered to be financial guarantee contracts.
The group is liable for all credit risk and therefore the full balance due to WesBank
by default customers with regard to Bell-backed deals and a portion of the credit risk
and a portion of the balance due to WesBank by default customers with regard to
Bell-shared risk deals. In terms of the Bell-shared risk deals the group's exposure is
calculated as a percentage of the net selling price of the equipment.
At period end the group's credit risk exposure to WesBank under Bell-backed deals
for which the group carries all the credit risk totalled 140 158 196 930 144 688
At period end the group's credit risk exposure to WesBank under Bell-shared risk deals
for which the group carries a portion of the credit risk totalled 2 424 1 154 2 682
In the event of default, the equipment financed would be recovered and it is estimated that on
re-sale the equipment would presently realise the following towards the above liabilities 241 383 337 331 249 936
(98 801) (139 247) (102 566)
Less: provision for non-recovery (2 635) - -
Net contingent liability - - -
The group has entered into similar shared risk arrangements with various other
institutions. These arrangements are first-loss undertakings and the group's exposure
remains fixed until the capital is repaid. These are considered to be financial
guarantee contracts.
At period end the group's credit risk exposure to these financial institutions
totalled 3 843 4 285 3 146
In the event of default, the equipment financed would be recovered and it is estimated that on
re-sale the equipment would presently realise the following towards the above liabilities 7 685 6 650 1 413
(3 842) (2 365) 1 733
Less: provision for non-recovery (117) (2 523) (1 797)
Net contingent liability - - -
Where customers are in arrears with these financial institutions and there is a shortfall
between the estimated realisation values of the equipment and the balances due by
the customers to these financial institutions, an assessment of any additional security
is done and a provision for any residual credit risk is made on a deal-by-deal basis.
8.2 The repurchase of equipment sold to customers and financial institutions has been
guaranteed by the group for an amount of 93 418 467
In the event of repurchase, it is estimated that the equipment would presently
realise 398 1 845 1 860
Net contingent liability - - -
This relates to sales transactions with buy-back obligations where the probability of
return of the equipment by the customer at the end of the buy-back period has
been assessed as remote and revenue has been recognised upfront. A provision
for residual value risk is recognised subsequent to initial recognition of the sale
on a deal-by-deal basis, to the extent that the assessed market value of the equipment
is less than the cost of meeting the buy-back obligation.
8.3 The residual values of certain equipment sold to financial institutions have been
guaranteed by the group. The group's exposure is limited to the difference between
the group's guaranteed amount and the financial institution's predetermined estimate.
In the event of a residual value shortfall on this equipment, the group would be exposed to
a maximum amount of 22 941 9 981 8 469
Net contingent liability 22 941 9 981 8 469
The transactions described in note 8.3 above relate to sales transactions to financial
institutions which lease the equipment to customers for an agreed lease term. In certain
cases, the group has a remarketing agreement with the institution for the disposal of the
equipment returned after the lease term, but in all instances the group's risk is limited to
the residual value risk described above.
The provision for residual value risk and the impairment of the retention deposits are
based on an assessment of the market value of the equipment.
9 RELATED PARTY TRANSACTIONS
Information regarding significant transactions with related parties is presented below.
Transactions are carried out on an arms length basis.
Shareholders
John Deere Construction and Forestry Company
- sales 10 103 9 208 17 302
- purchases 362 393 210 923 392 769
- amounts owing to 170 412 129 247 57 020
- amounts owing by 3 527 1 265 3 664
Enterprises over which directors and shareholders are able to exercise
significant influence and/or in which directors and shareholders have
a beneficial interest
Latin Equipment Group
- sales 2 568 3 531 29 332
10 FINANCIAL INSTRUMENTS
Categories of financial instruments included in the statement of financial position:
- Loans and receivables at amortised cost comprising interest-bearing long-term
receivables, trade and other receivables and cash and bank balances.
The directors consider that the carrying amount of loans and receivables at amortised
cost approximates their fair value.
- Financial liabilities at amortised cost comprising interest-bearing liabilities, trade
and other payables and bank overdrafts and borrowings on call.
The directors consider that the carrying amount of financial liabilities at amortised
cost approximates their fair value.
- Financial assets and liabilities carried at fair value through profit or loss include
forward foreign exchange contracts and fair value is determined based on a Level 2
fair value measurement. Level 2 fair value measurements are those derived from
inputs other than quoted prices.
- Available for sale financial asset comprising an unlisted equity investment at cost
for which a reliable fair value could not be determined.
11 PRIOR PERIOD RESTATEMENTS
(i) Classification error in the group's June 2016 interim statement of cash flows
During the 2016 year end process it was identified that the movement in the group's provision
for inventory write-downs was incorrectly classified in the group's June 2016 interim
cash flow statement. The movement in the provision for inventory write-downs was
classified as part of the movement in working capital instead of adjusting operating profit
before working capital changes. This classification error has been corrected and the impact
on the group's June 2016 interim cash flow statement is as follows:
As previously
reported Adjustment Restated
R'000 R'000 R'000
Cash generated from operations before working capital changes 254 463 38 084 292 547
Cash utilised in working capital (103 502) (38 084) (141 586)
Cash generated from operations 150 961 - 150 961
(ii) Restatements relating to the calculation of the December 2016 headline earnings per share
During the JSE proactive monitoring process it was identified that the impairment loss recognised
in respect of the group's property, plant and equipment rental assets had not been added back
in the calculation of headline earnings per share in the December 2016 results.
This calculation error has been corrected and the impact on the group's December 2016
headline earnings per share is as follows:
As previously
reported Adjustment Restated
R'000 R'000 R'000
Headline earnings per share is arrived at as follows:
Profit for the year attributable to owners of Bell Equipment Limited 37 472 - 37 472
Net surplus on disposal of property, plant and equipment and intangible assets (26) - (26)
Taxation effect of net surplus on disposal of property, plant and equipment and intangible
assets 7 - 7
Impairment loss in respect of property, plant and equipment rental assets - 8 262 8 262
Headline earnings 37 453 8 262 45 715
Weighted average number of ordinary shares in issue during the period ('000) 95 159 95 159 95 159
Headline earnings per share (basic) (cents) 39 9 48
12 POST FINANCIAL POSITION EVENTS
No fact or circumstance material to the appreciation of this
interim report has occurred between 30 June 2017 and the
date of this report.
13 CASH DIVIDEND DECLARATION
Notice is hereby given that the directors have declared a gross interim
cash dividend of 20 cents per ordinary share for the six-month period
ended 30 June 2017 payable to ordinary shareholders in accordance
with the timetable below.
The interim net dividend is 16 cents per share for ordinary
shareholders who are not exempt from dividends tax. The dividend
withholding tax rate is 20 percent.
The dividend has been declared from income reserves.
The company's income tax reference number is 9022169206.
The issued share capital at the declaration date is 95 306 885
ordinary shares.
The salient dates for the dividend will be as follows:
2017
Last day of trade to receive a dividend Tuesday, 19 September
Shares commence trading "ex" dividend Wednesday, 20 September
Record date Friday, 22 September
Payment date Tuesday, 26 September
Share certificates may not be dematerialised or rematerialised
between Wednesday, 20 September 2017 and Friday,
22 September 2017, both days inclusive.
By order of the board
29 August 2017
Directors
Non-executive
JR Barton* (Chairman), AJ Bell, B Harie, DH Lawrance*,
HR van der Merwe*, ME Ramathe*, R Naidu*
*Independent
Appointed: R Naidu and ME Ramathe were appointed as directors
on 20 March 2017.
Retired: TO Tsukudu retired on 21 August 2017.
Executive
GW Bell (Group Chief Executive), L Goosen (Chief Executive Designate),
KJ van Haght (Group Finance Director)
Company Secretary
D McIlrath
Registered Office
13 - 19 Carbonode Cell Road, Alton, Richards Bay,
3900
Transfer Secretaries
Link Market Services South Africa Proprietary Ltd,
19 Ameshoff Street, Johannesburg, 2001
Sponsor
Investec Bank Ltd
100 Grayston Drive, Sandown, Sandton, 2196
Release date: 31 August 2017
www.bellir.co.za
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