| Thu 13 Sep 2007, 16:00 | | AOO/AON/AOVP - African & Overseas Enterprises Limi |
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AOO AOVP AON
AOO
AOO/AON/AOVP - African & Overseas Enterprises Limited - Reviewed Results for the
year ended 30 June 2007
African & Overseas Enterprises Limited
(Incorporated in the Republic of South Africa - Reg No. 1947/027461/06)
Share codes: AOO - AON - AOVP
ISIN: ZAE000000485 - ZAE000009718 - ZAE000000493
REVIEWED RESULTS
for the year ended 30 June 2007
INCOME STATEMENT Consolidated (R`000)
2007 2006
(Reviewed) (Restated)
Revenue 397 462 323 643
Continuing operations
Turnover 390 594 317 570
Operating profit 18 324 15 485
Dividends received 19 17
Net interest received 4 261 3 571
Loss from associated company (348) (452)
Profit before taxation 22 256 18 621
Taxation (7 712) (6 730)
Profit from continuing operations 14 544 11 891
Discontinued operation
Loss from discontinued operation - (4 553)
Profit 14 544 7 338
Profit attributable to:
Ordinary and "N" ordinary shareholders 7 644 3 444
Preference shareholders 87 168
Equity holders of the parent 7 731 3 612
Minority interest 6 813 3 726
Profit 14 544 7 338
Reconciliation of headline earnings
Attributable earnings 7 644 3 444
Loss arising from discontinuance - 372
Headline earnings 7 644 3 816
Headline earnings per share (cents) 67,1 33,5
Earnings per share (cents) 67,1 30,2
Proposed dividend per share (cents) 14,0 14,0
Dividend cover (based on headline earnings) 4,8 2,4
Weighted average number of equity shares on
which earnings per share is based (000) 11 387 11 387
Number of equity shares in issue (000) 11 387 11 387
BALANCE SHEET
Assets
Non-current assets 54 572 58 052
Property, plant and equipment 39 964 43 656
Investment property 3 511 3 511
Investments (unlisted) 2 129 1 752
Deferred taxation 8 968 9 133
Current assets 143 585 124 046
Inventories 45 599 38 530
Trade and other receivables 19 611 11 296
Income tax receivable 77 4
Cash and cash equivalents 78 298 74 216
Total assets 198 157 182 098
Equity and liabilities
Capital and reserves 159 734 147 665
Share capital 1 200 1 200
Share premium 6 084 6 616
Non-distributable reserves 2 968 2 643
Distributable reserves 77 531 71 481
Outside shareholders` interest 71 952 65 725
Non-current liabilities 10 541 9 803
Post-retirement liability 6 686 6 450
Accrued operating lease liability 3 855 3 353
Current liabilities 27 882 24 630
Provisions - 543
Trade and other payables 26 282 22 626
Income tax payable 1 600 1 461
Total equity and liabilities 198 157 182 098
ABRIDGED CASH FLOW STATEMENT
Cash generated by operations 32 433 23 577
Working capital changes (11 545) 13 674
Interest received (net) 4 261 3 571
Taxation paid (7 481) (3 726)
Dividends paid (3 934) (6 027)
Net cash inflow from operations 13 734 31 069
Additions to property, plant and equipment (10 640) (16 990)
Proceeds on disposal of property, plant
and equipment 124 148
Other 864 25
Net cash outflows from investing activities (9 652) (16 817)
Net increase in cash 4 082 14 252
Cash at the beginning of the period 74 216 59 964
Cash at the end of the period 78 298 74 216
STATEMENT OF CHANGES IN EQUITY
Share capital 1 200 1 200
Share premium 6 084 6 616
Non-distributable reserves
Opening balance 2 643 2 560
Share-based payments (66) 73
Fair value revaluation reserve 290 -
Foreign exchange translation 101 10
2 968 2 643
Distributable reserves
Opening balance 71 481 71 681
Profit after taxation 7 731 3 612
Dividends (1 681) (3 812)
77 531 71 481
Minority interest
Opening balance 65 725 64 122
Profit after tax 6 813 3 855
Dividends (2 253) (2 212)
Shares issued 1 398 -
Other 269 (40)
Closing balance 71 952 65 725
Total capital and reserves 159 734 147 665
SEGMENTAL REPORTING
Turnover
Manufacturing 52 682 65 671
Less: intersegment sales (16 276) (29 227)
External sales 36 406 36 444
Retail 354 188 291 555
Total 390 594 327 999
Operating profit/loss)
Manufacturing (866) (8 845)
Retail 22 727 21 203
Property 313 (1 158)
Group services* (3 850) (268)
Total 18 324 10 932
Depreciation included in operating profit
Manufacturing 1 251 1 134
Retail 12 694 11 491
Total 13 945 12 625
Total segment assets
Manufacturing 22 054 23 898
Retail 130 619 117 225
Property 8 299 8 344
Group services 37 185 32 631
Total 198 157 182 098
Total segment liabilities
Manufacturing (7 074) (11 273)
Retail (24 330) (16 248)
Group services (7 019) (6 912)
Total (38 423) (34 433)
Capital expenditure
Manufacturing 781 1 233
Retail 9 859 15 757
Total 10 640 16 990
*Group services includes corporate costs and consolidation adjustments.
OTHER INFORMATION
Capital expenditure 10 640 16 990
Capital commitments
Contracted for 2 370 3 697
Authorised - not contracted for 6 412 5 377
Current ratio 5,1 5,0
NOTES
1 Basis of preparation
These annual financial statements have been prepared in accordance with IFRS
standards and interpretations effective as at the date of preparing these
annual statements. The information presented has been reviewed but not audited
by the external auditors.
2 Prior-year adjustment
A prior-year adjustment has been recorded relating to the investment in the
associate Queenspark Australia Pty Limited. A loss of R456 000 has arisen in
that previously consolidated figures were based on the management accounts of
the associate. The audited financial statements, issued subsequently, reflected
a greater loss than that originally consolidated. The comparative financial
information has been restated by increasing the loss from associate by R293 000
in 2006 and reducing opening retained income by R163 000.
COMMENTARY
The principal operating subsidiary Rex Trueform Clothing Company Limited
reports as follows:
"The board is pleased to announce that the group`s performance of the first
half-year has been maintained and turnover was improved by 23% for the full
year.
Headline earnings improved by 66,2% to 75,3 cents per share. Earnings have
increased by 79,3% on last year, and also amount to 75,3 cents per share.
Queenspark`s turnover amounted to R354,2 million, an increase of 21,5%.
Operating profit, before foreign exchange differences, improved by 32,6% over
last year. After taking into account foreign exchange differences operating
profit improved by 7,2%.
Same-store growth in turnover was 12% after price deflation of 8%. New stores
produced R30,0 million of additional turnover during the year representing a
further 9,5% growth.
New stores which were opened during the first half of the year at Gateway in
Durban, Woodlands Boulevard in Pretoria and Liberty Mall in Pietermaritzburg
continued to perform strongly during the remainder of the year. A further store
was opened at Highveld Mall in Witbank during the latter half of the year.
Manufacturing activities remained centred on the Atlantis factory. This plant
is not showing a profit, but the loss incurred is less than in the previous
year.
Prospects
The Queenspark summer range currently in stores has achieved a high level of
acceptance. The impact of the National Credit Act, fuel price increases and
increases in interest rates will have a negative effect on consumer demand.
We continue to open new stores, which will have a positive effect on the
business."
Dividend
The board has decided to recommend to shareholders that the dividend on the
Ordinary and "N" ordinary shares be maintained at 14 cents per share.
In terms of the Articles of Association, the 6% cumulative participating
preference shares carry the right to receive an additional 0,5% dividend for
every completed 1,25% dividend in excess of 2,5% declared on ordinary shares in
any one financial year. Preference shareholders will therefore be entitled to
an extra dividend of 10,0% (20,0 cents per share) which will be included in the
half-yearly payment in December 2007.
An announcement detailing the terms of the dividend declaration will be made
immediately following the annual general meeting to be held on 21 November
2007.
Review by independent auditors
The financial information has been reviewed by KPMG Inc. whose unqualified
review opinion is available for inspection at the company`s registered office.
It is anticipated that an unqualified audit opinion will be issued once the
detailed financial statements have been finalised.
The annual report containing a detailed review of the operations of the company
together with the audited financial statements will be posted to shareholders
towards the end of October 2007.
Signed on behalf of the board:
ML Krawitz PE Shub
(Chairman) (Chief Executive Officer)
Cape Town
11 September 2007
Transfer Secretaries:
Computershare Investor Services 2004 (Pty) Ltd, 70 Marshall Street,
Johannesburg 2001
Registered Office:
Rex Buildings, 263 Victoria Road, Salt River, Cape Town 7925
African & Overseas Enterprises Limited (Incorporated in the Republic of South
Africa - Reg No. 1947/027461/06)
Share codes: AOO - AON - AOVP
ISIN: ZAE000000485 - ZAE000009718 - ZAE000000493
Directors: ML Krawitz (Chairman), PE Shub (Chief Executive Officer)
(alt ML Krawitz), CEA Radowsky and JC O`Brien Secretary: AA Hodgkinson
Date: 13/09/2007 16:00:02 Produced by the JSE SENS Department.
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