| Gross margins were 27% in 2007 compared to 28% in the previous year. Total Operating expenses were KES1 billion, an 11% decrease compared to KES1.2 billion in 2006. Operating profit was up 29% to KES757 million in 2007, compared to KES586 million in 2006.
Profit before tax for the year was KES1.1 billion, a 20.37% increase compared to KES924 million in 2006. Profit for the year was KES8.49 per share, or a profit of KES764 million, compared to a profit of KES4.58 per share, or KES411 million, in 2006.
BALANCE SHEET
Trade and other receivables increased 9% to KES356 million from KES326 million at the end of the 2006. Borrowings decreased 7% to KES320 million from KES347 million at the end of the previous year. Bank and cash balances of KES114 million were reported at the end of the year, representing a 50% decrease compared to balances of KES231 million as at the end of the previous year.
CASH FLOW STATEMENT:
Cash flows from operating activities were KES634 million and Cash flows used in investing activity was KES500 million. E.A Portland used KES455 million for financing activities in 2007 compared to KES573 million in 2006. E.A Portland investing activities increased by 269% in 2007 compared to 2006.
FREE CASH FLOW ANALYSIS:
Free Cash Flows are a way of measuring cash that is available to a company for discretionary use. Free Cash Flows can be defined as cash flows from operating activities less cash outlays necessary for the replacement of operating capacity (capital expenditures). It is a measure of cash that is available for discretionary use by the company. As such, the calculation of free cash flows is somewhat arbitrary since it assumes a certain level of reinvestment to replace existing capacity. Generally it is defined as cash flows from operations less capital expenditures to maintain the company’s current operating capacity. Therefore, free cash flows are those cash flows available to grow the company, pay back debt, pay dividends, or repurchase stock.
| E.A PORTLAND LTD - FREE CASH FLOW ANALYSIS |
|
|
| FOR THE PERIOD ENDED: |
30/6/2007 |
30/6/2006 |
% Change |
| Cash Generated from Operating Activities |
634,190 |
928,716 |
-31.71% |
| Less Cash used in investing activities |
-508,412 |
-137,867 |
268.77% |
| Free Cash Flow |
125,778 |
790,849 |
-84.10% |
MANAGEMENT COMMENTS ON PERFORMANCE
In the year under review, there was a strong market demand attributable to robust building and construction activities in the local market leading to improved revenue and gross profit.
In line with the company’s objective of profitable growth, operating profit grew by 29% despite higher inputs and distribution costs. Overall, profit before tax grew by 20% to KES1.1 billion from KES924 million in the prior year. After tax profit increased by 86% and earnings per share improved from KES8.49 to KES4.58 compared to prior year. In line with its expansion and modernization programme, the Company invested KES0.5 billion during the period.
MANAGEMENT COMMENTS ON FUTURE OUTLOOK
With the sustained economic growth and a vibrant building and construction sector, cement demand is going to be maintained at higher levels and the company expects a strong performance in the coming year. However, volatile foreign exchange currency fluctuation, threat of power rationing and fuel costs pose the biggest threat to margins. The company will continue to implement various cost optimization initiatives. An expansion programme is being undertaken to address capacity constraints and reduce energy costs.
DIVIDEND & ANNUAL GENERAL MEETING
The directors recommended payment of a final dividend of KES1.30 per share in respect of the year ended 30th June 2007. The Annual General Meeting will be held on 29 November 2007.
| E.A PORTLAND LTD PROFIT AND LOSS ACCOUNT |
|
|
| PERIOD ENDING |
30/6/2007 |
30/6/2006 |
%change |
|
KES ‘000 |
KES ‘000 |
|
| Sales |
6,402,736 |
6,180,715 |
3.59% |
| Cost of sales |
(4,667,811) |
(4,461,235) |
4.63% |
| Gross profit |
1,734,925 |
1,719,480 |
0.90% |
| Other operating income |
71,363 |
56,230 |
26.91% |
| Selling expenses |
(492,055) |
(459,574) |
7.07% |
| Administrative expenses |
(442,954) |
(442,374) |
0.13% |
| Other operating expenses |
(108,245) |
(273,424) |
-60.41% |
| Farm(loss)/Income |
(5,697) |
(14,044) |
-59.43% |
| Operating profit |
757,337 |
586,294 |
29.17% |
| Net interest income/(costs) |
47,977 |
29,828 |
60.85% |
| Foreign currency exchange gain |
307,311 |
308,242 |
-0.30% |
| Profit before tax |
1,112,625 |
924,364 |
20.37% |
| Taxation |
(348,461) |
(512,571) |
-32.02% |
| Profit for the year |
764,164 |
411,793 |
85.57% |
| Earnings per share(basic and diluted)-Kshs. |
8.49 |
4.58 |
85.37% |
| Dividends per share |
2.60 |
2.60 |
0.00% |
| Paid |
1.30 |
1.30 |
0.00% |
| Proposed |
1.30 |
1.30 |
0.00% |
|
|
|
|
| E.A PORTLAND LTD |
|
|
|
| BALANCE SHEET AS AT: |
30/6/2007 |
30/6/2006 |
% Change |
|
KES ‘000 |
KES ‘000 |
|
| ASSETS |
|
|
|
| Current Assets |
|
|
|
| Inventories |
633,956 |
595,127 |
6.52% |
| Trade and other receivables |
356,916 |
326,312 |
9.38% |
| Tax recoverable |
- |
- |
|
| Short term deposits |
2,065,472 |
2,277,558 |
-9.31% |
| Bank and cash balances |
114,031 |
231,728 |
-50.79% |
| Total Current Assets |
3,170,375 |
3,430,725 |
-7.59% |
| Non-Current Assets |
|
|
|
| Property, plant and equipment |
5,678,158 |
5,523,315 |
2.80% |
| Intangible assets |
8,540 |
16,316 |
-47.66% |
| Prepaid operating leases |
13,538 |
14,225 |
-4.83% |
| Investment |
1 |
1 |
0.00% |
| Biological assets |
6,831 |
6,758 |
1.08% |
| Staff receivables |
8,742 |
9,873 |
-11.46% |
| Restricted deposits |
52,387 |
50,994 |
2.73% |
| Total Non-Current Assets |
5,768,197 |
5,621,482 |
2.61% |
| Total Assets |
8,938,572 |
9,052,207 |
-1.26% |
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
| Current Liabilities |
|
|
|
| Borrowings |
320,775 |
347,283 |
-7.63% |
| Trade and other payables |
872,065 |
842,609 |
3.50% |
| Retirements benefits liability provision |
- |
- |
|
| Leave pay provision |
47,872 |
46,424 |
3.12% |
| Corporation tax payables |
194,543 |
161,625 |
20.37% |
| Total Current Liabilities |
1,435,255 |
1,397,941 |
2.67% |
| Non current liabilities |
|
|
|
| Staff gratuity |
502,324 |
468,322 |
7.26% |
| Deferred taxation |
1,051,291 |
1,046,312 |
0.48% |
| Borrowings |
2,342,605 |
3,062,699 |
|
| Non current Liabilities |
3,896,220 |
4,577,333 |
-14.88% |
| Total Liabilities |
5,331,475 |
5,975,274 |
-10.77% |
| Shareholders’ Equity |
|
|
|
| Share capital |
450,000 |
450,000 |
0.00% |
| Revaluation reserves |
648,000 |
1,201,245 |
|
| Share premium |
1,146,997 |
648,000 |
77.01% |
| Revenue reserve |
1,362,100 |
777,688 |
75.15% |
| Proposed dividend |
- |
- |
|
| Total Shareholders’ Equity |
3,607,097 |
3,076,933 |
17.23% |
| Total Liabilities and Shareholders’ Equity |
8,938,572 |
9,052,207 |
-1.26% |
|
|
|
|
| E.A PORTLAND LTD - CASH FLOW STATEMENT |
|
|
| FOR THE PERIOD ENDED: |
30/6/2007 |
30/6/2006 |
% Change |
|
KES ‘000 |
KES ‘000 |
|
| Beginning Balance |
2,509,286 |
2,292,087 |
9.48% |
| Net Cash: |
|
|
|
| Generated from Operating activities |
634,190 |
928,716 |
-31.71% |
| Used in Investing Activities |
-508,412 |
-137,867 |
268.77% |
| Used in Financing Activities |
-455,561 |
-573,650 |
-20.59% |
| Ending Balance |
2,179,503 |
2,509,286 |
-13.14% |
|
|
|
|
| E.A PORTLAND LTD - FREE CASH FLOW ANALYSIS |
|
|
| FOR THE PERIOD ENDED: |
30/6/2007 |
30/6/2006 |
% Change |
| Cash Generated from Operating Activities |
634,190 |
928,716 |
-31.71% |
| Less Cash used in investing activities |
-508,412 |
-137,867 |
268.77% |
| Free Cash Flow |
125,778 |
790,849 |
-84.10% |
|
Discussion
No comments for “E.A Portland 2007 Net profit shoots up 86%”
Post a comment