| Thu 13 Sep 2007, 16:46 | | WTL - William Tell Holdings Limited - Reviewed res |
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WTL
WTL
WTL - William Tell Holdings Limited - Reviewed results for the year ended 30
June 2007
William Tell
Precision engineered wood based components
William Tell Holdings Limited
("William Tell" or "the group")
(Registration number 2004/030045/06)
(Previously VICVA 148 (Pty) Ltd)
Share code: WTL ISIN: ZAE000098133
Reviewed results for the year ended 30 June 2007
31% increase in turnover
33% increase in operating profit
34% increase in headline earnings
Summarised Consolidated Income Statements Reviewed 2007 Audited 2006
R`000 R`000
Revenue 176 153 134 712
Cost of sales (107 426) (82 600)
Gross profit 68 727 52 112
Other income 533 105
Administrative and other operating expenses
(20 474) (15 446)
Operating profit 48 786 36 771
- -
Interest received 1 059 761
Foreign exchange loss (126) (560)
Interest paid (3 957) (2 270)
Profit before taxation 45 762 34 702
Taxation (14 466) (11 401)
Profit for the year 31 296 23 301
Depreciation and amortisation for the year (3 746) (2 645)
Earnings per share (cents) 31.30 23.30
Headline earnings per share (cents) 31.30 23.30
Dividends per share (cents) 9.04 10.00
Reconciliation of basic earnings to
headline earnings
Earnings 31 296 23 301
Adjusted by loss on sale of property, plant
and equipment 5 1
Headline earnings 31 301 23 302
Reconciliation between number of shares and
weighted number of shares
Number of shares (`000) 125 000 100 000
Adjusted by - Pro-rata in issue for the
year (25 000) -
Weighted average number of shares (`000) 100 000 100 000
Summarised Consolidated Balance Sheets Reviewed 2007 Audited 2006
R`000 R`000
Assets
Non-current assets 130 340 83 775
Property, plant and equipment 130 286 83 742
Intangible assets 54 33
Current assets 174 298 54 006
Inventories 17 094 17 376
Trade and other receivables 24 326 19 867
Current taxation receivable 24 -
Cash and cash equivalents 132 854 16 763
304 638 137 781
Equity & Liabilities
Capital & reserves 185 415 52 921
Share capital 1 250 4
Share premium 179 758 -
Accumulated profit 4 407 52 917
Non-current liabilities 61 014 45 707
Interest bearing borrowings 43 456 37 604
Deferred Taxation 17 558 8 103
Current liabilities 58 209 39 153
Trade and other payables 43 301 15 438
Interest bearing borrowings 12 415 9 627
Current taxation payable - 6 745
Provisions 2 492 1 860
Bank overdraft 1 5 483
304 638 137 781
Net asset value per share (cents) 148.33 52.92
Capital expenditure for the year (R`000) 36 442 23 196
Summarised Consolidated Statements of
Changes in Equity Reviewed 2007 Audited 2006
R`000 R`000
Share Capital
Balance at the beginning of the year 4 4
Shares issued during the year 1 246 -
Balance at the end of the year 1 250 4
Share premium
Share premium on issues for the year 183 966 -
Share issue expenses (4 208) -
Balance at the end of the year 179 758 -
Accumulated profit and other reserves
Balance at the beginning of the year 52 917 39 616
Profit for the year 31 296 23 301
IFRS 3 adjustment on group formation (68 506) -
Dividend paid during the year (11 300) (10 000)
4 407 52 917
Summarised Consolidated Cash Flow
Statements Reviewed 2007 Audited 2006
R`000 R`000
Net cash generated by operations 76 860 37 083
Net finance costs (3 024) (1 876)
Dividends paid (11 300) (10 000)
Taxation paid (15 495) (5 666)
Cash flow from operating activities 47 041 19 541
Cash flow from investing activities (115 112) (23 190)
Cash flow from financing activities 189 644 11 799
Movement in cash & cash equivalents 121 573 8 150
Cash & cash equivalents at the beginning of
the year 11 280 3 130
Cash & cash equivalents at the end of the
year 132 853 11 280
Segment Report
No segmental reporting is provided as the group is a single segment entity.
Commentary and further cautionary announcement
Basis of Preparation
The abridged annual financial statements have been prepared in terms of
International Financial Reporting Standards. The accounting policies used in the
preparation of these annual financial statements are consistent with those
applied in the annual financial statements of the company`s subsidiaries for the
year ended 30 June 2006. The results for the year ended 30 June 2007 have been
reviewed by the group`s auditors, BDO Spencer Steward (Jhb) Inc., and the
unqualified report is available for inspection at the company`s registered
office.
The reverse acquisition provisions of IFRS 3: Business Combinations, have been
applied and the results have been presented as a continuation of the financial
statements of the subsidiaries.
Nature of Business
William Tell is a focused manufacturer of wood-based panels. The group produces
chipboard from wood waste, adds value by applying melamine surfaces and adds
further value by producing systems and components for the building and related
industries. Products are marketed under the Evopan and William Tell brand names.
The client base ranges from individual contractors to large businesses in the
built-in furniture, office furniture, shop-fitting, exhibition, case goods,
wholesale, merchandising, retailing and related industries in Southern Africa.
Listing
The company successfully listed on the Alternative Exchange of the JSE Limited
(ALTx) on 3 July 2007 by way of a private placement. The main purpose of the
listing was to raise capital for the expansion of William Tell`s production and
distribution capacity, and for its vertical integration and acquisition
strategies.
Governance
The directors and senior managers of the group endorse the Code of Corporate
Practices and Conduct as set out in the King II Report on Corporate Governance.
The board is in the process of formalising compliance and has to date formed a
Remuneration & Nomination Committee as well as an Audit & Risk Committee.
Operational Review
William Tell has achieved operational profit growth of 33% on revenue growth of
31% for the year. This growth has been achieved through the vertical integration
effect from commissioning the new chipboard plant, management`s entrepreneurial
spirit and a robust economy.
Management`s anticipation of demand for the group`s products led to the
commissioning of the chipboard plant at Booysens in November 2006 and further
capacity is being implemented.
Gross profit and operating margins have remained relatively constant over the
last two years at 39% and 27% respectively and are expected to improve over the
next 12 months due to the effect of vertical integration.
The group`s existing manufacturing facilities are housed in owned buildings
situated in Booysens, Johannesburg, consisting of 1.9 ha with 33 000 square
metres under roof and with a carrying value of R33 million. In February 2007 the
group acquired property in Chamdor, Krugersdorp, consisting of 5.4 ha with 11
000 square metres under roof and with a carrying value of R10 million. The
Chamdor property is the site of the group`s second chipboard facility.
As at 30 June 2007 capital commitments for the procurement from foreign
suppliers of components required for the group`s second chipboard facility
amounted to R19 million and are supported by letters of credit issued in favour
of these foreign suppliers by the group`s commercial bankers.
Prospects
The board expects that the economy will remain strong for the foreseeable
future, as will the demand for the company`s products. In these circumstances
and in the light of the trading performance for the first two months of the new
financial year, the board is confident of achieving the forecast for 2008
contained in the prospectus.
To meet continuing demand, and to increase the company`s market share, a second
chipboard plant is being constructed in Chamdor on the West Rand according to
plan. The plant is expected to be commissioned in June 2008 at a total cost,
including property development, of R120 million.
Dividends
William Tell`s dividend policy, in the absence of unforeseen circumstances, is
to declare a dividend based on a dividend cover of three times, payable bi-
annually for each six-month period ending 30 June and 31 December and payable to
shareholders in October and April respectively of each year. The first dividend
payable to shareholders after the listing will be in respect of the six-month
period ending 31 December 2007, payable in April 2008.
Further Cautionary Announcement
Further to the cautionary released on SENS on 27 August 2007, William Tell`s
shareholders are advised that the negotiations referred therein are continuing.
Such negotiations, if successfully concluded, may have a material effect on the
company`s share price. William Tell shareholders are accordingly advised to
continue exercising caution in dealing in their shares until a further
announcement is made.
Post Balance Sheet Events
Other than the company`s listing on the ALTx and the cautionary announcement as
stated above, there are no events after balance sheet date until the date of
this release that require additional disclosure.
By order of the board
A P Wagenaar
B P Lok
13 September 2007
Registered address:
11/23 Andrea Road
Reuven Estate
Booysens
2016
Designated and corporate advisor:
PSG Capital (Proprietary) Limited
Building 8
Woodmead Estate
1 Woodmead Drive
Woodmead
2198
Registered auditors
BDO Spencer Steward (Johannesburg) Inc
13 Wellington road
Parktown
2193
Directors:
A P Wagenaar* (Non-Executive chairperson);
B P Lok (Chief Executive Officer);
R E Watt (Financial Director);
W H Lok;
N M De Winnaar;
S Q Coetzee;
A van der Merwe*;
M G Meehan*;
S Delafield (Company Secretary)
(*Non-Executive)
www.williamtellholdings.co.za
Date: 13/09/2007 16:26:54 Produced by the JSE SENS Department.
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