JSE-listed Grintek`s earnings plunged 92% in the year to end-June, mainly as a result of foreign exchange (forex) losses. The previous results were boosted by significant forex gains.
<B>Salient figures</B>
Grintek results for the year to 30 June 2003.
Previous year`s figures in parentheses:
Revenue from sales: R1.47b (R1.18b)
Gross profit: R266.98m (R235.01m)
EBITDA: R120.31m (R109.65m)
Profit before tax: R31.82m (R171.72m)
Earnings: R8.57m (R104.86m)
HEPS: 7c (28.5c)
Current assets: R983.55m (R983.77m)
Cash and deposits: R195.93m (R164.23m)
Current liabilities: R709.52m (R719.07m)
Cash generated by operations: R90.09m (R166.69m)
NAV per share: 133.2c (139.3c)
Revenue from sales rose 25% during the period, from R1.18 billion to R1.47 billion, while earnings before interest, tax, depreciation and amortisation were up 10% from R109.65 million to R120.31 million.
However, forex losses of R26.37 million, compared with gains of R73.37 million in the previous year, combined with exceptional items of R11.23 million, took their toll on the bottom line.
Earnings for the year were 92% down at R8.57 million.
Grintek MD Sybrand Grobbelaar says the group is continuing to improve its approach in limiting its exposure to foreign currency fluctuations.
"Prospects for our telecommunications business remain steady," he says. "New solutions for the banking and retail sectors are available for the new chip card standards to be introduced in 2004. The rate of deliveries on existing defence orders is increasing and should contribute towards improved operating margins and cash flow."
Grobbelaar says the current order book of R1.45 billion is contracted for delivery over the next three to four years, of which R779.6 million will be executed in the first year.
A final dividend of 2c a share has been declared, bringing the total dividend to 5c for the year. The Grintek share was trading at 109c this morning, down 1c from yesterday`s close.
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