|
KIR
KIR
KIR - Kairos - Unaudited Interim Results For The Six Months Ended 31 August 2007
Kairos Industrial Holdings Limited
Incorporated in the Republic of South Africa.
Registration number 1987/002927/06
Share code: KIR & ISIN: ZAE000011284
("Kairos" or "the Group")
Unaudited interim results for the six months ended 31 August 2007
Overview of results
Revenue for the period under review increased by 26,85% with a disappointing
drop of R3,589 million in operating profit to R2,362 million. This result can be
attributed primarily to the lower margins being realised at the brick making
operations. The demand for bricks was seriously affected by the recent municipal
strikes, the upward trend in interest rates and the implementation of the new
Credit Act, and as a result significant stocks of bricks currently exist in the
market. The supply and demand imbalance has resulted in competitive and
aggressive pricing and together with unusually high increases in in-feed costs,
there has been a marked degradation to the margins.
The above results were further affected due to the inability by BroKrew to
timeously service a large contract because of a worldwide shortage and the
resulting long lead times for relevant major components. This however remains a
timing issue and the revenues and profitability will accrue to the Group in the
following period.
The effects of the above translate into a net loss after taxation of R1,638
million for the period under review, the loss per share is 0,65 cents per share
decreasing by 2,63 cents per share from earnings per share of 1,28 cents.
The financial information on which this interim statement is based has not been
reviewed or reported on by the company`s auditors.
Basis of preparation
The condensed consolidated interim financial statements have been prepared in
accordance with International Reporting Standards ("IFRS") IAS 34 - Interim
International Financial Reporting and in compliance with the Listing
Requirements of the JSE Limited and the South African Companies Act (1973), on a
consistent basis with that of the prior period.
Dividend
The Board has resolved that no interim dividend will be declared.
Prospects
Notwithstanding the current market conditions, the Group remains confident that
there will be a turnaround in the clay brick business as the demand for
infrastructure and housing continues.
Strong growth continues in mining supplies and the diversification into
specialised mining ventilation systems should bolster this trend.
A further prospecting license for coal has been granted and prospecting on the
relevant land should commence during January 2008.
Negotiations remain in an advanced stage for the proclamation of various
residential, retail and industrial sites on our Witbank property and this
project should start contributing to earnings within the next 24 months.
Although there remain many challenges ahead, the Group continues to be very well
positioned within the markets in which it operates and the board remains
confident of the prospects for the full year.
For and on behalf of the board
L Jonker
Company Secretary
2 October 2007
Abridged consolidated income statement
Unaudited Unaudited Audited
for the for the for the
6 months 6 months 12 months
ended ended ended
31 Aug 31 Aug 28 Feb
(R`000) 2007 2006 2007
Revenue 114 394 90 177 198 215
Cost of sales (100 449) (72 938) (160 203)
Gross profit 13 945 17 239 38 012
Operating costs (11 583) (11 288) (26 655)
Operating profit before 2 362 5 951 11 357
investment income,
depreciation and finance
cost
Investment revenues 57 150 867
Profit on disposal of - - 697
fixed assets
Fair value adjustments - - 103
Depreciation (2 469) (1 911) (4 240)
Finance cost (1 687) (1 282) (3 240)
(Loss)/profit before (1 737) 2 908 5 544
taxation
Taxation 99 325 1 094
- Normal (73) (62) (518)
- Deferred 172 387 1 612
(Net loss)/net profit (1 638) 3 233 6 638
attributable to ordinary
shareholders
Determination of headline
(loss)/profit
(Loss)/profit after (1 638) 3 233 6 638
taxation
Reversal of provision - - (697)
Headline (loss)/earnings (1 638) 3 233 5 941
Number of shares on which 252 107 252 107 252 107
(loss)/profit per share is
based (000`s)
Headline (loss)/earnings (0.65) 1.28 2.36
per share (cents)
(Loss)/earnings per (0.65) 1.28 2.63
ordinary share (cents)
Abridged group cash flow statement
Unaudited Unaudited Audited
for the for the for the
6 months 6 months 12 months
ended ended ended
31 Aug 31 Aug 28 Feb
(R`000) 2007 2006 2007
Cash outflows from operating (3 407) (7 146) (10 462)
activities
Cash outflows from investment (1 309) (4 047) (8 005)
activities
Cash (out)/inflows from (928) 9 050 14 356
financing activities
Net movement in cash and cash (5 644) (2 143) (4 111)
equivalents
Cash and cash equivalents at 7 170 11 281 11 281
beginning of period
Cash and cash equivalents at 1 526 9 138 7 170
end of the period
Segmental analysis
Unaudited Unaudited Audited
for the for the for the
6 months 6 months 12 months
ended ended ended
31 Aug 31 Aug 28 Feb
(R`000) 2007 2006 2007
REVENUE
Mining Supplies 82 169 56 759 132 840
Manufacturing - bricks 32 225 33 418 65 374
114 394 90 177 198 214
Operating and investment
income
Mining Supplies 1 594 2 943 6 471
Manufacturing - bricks 1 061 2 430 4 367
Property and other (293) 578 519
Investment income 57 150 867
2 419 6 101 12 224
Group balance sheet
Unaudited Unaudited Audited
as at as at as at
31 Aug 31 Aug 28 Feb
(R`000) 2007 2006 2007
ASSETS
Non-current assets 64 325 61 616 65 485
Property, plant and equipment 47 813 45 444 49 225
Patents and intangibles 4 065 4 065 4 065
Investments 1 315 975 1 062
Goodwill 2 309 2 309 2 309
Other non-current assets 8 823 8 823 8 824
Current assets 75 347 61 893 66 370
Inventories 27 092 27 926 27 116
Trade and other receivables 45 643 24 637 31 929
Taxation overpaid 59 192 59
Cash and cash equivalents 2 553 9 138 7 266
TOTAL ASSETS 139 672 123 509 131 855
EQUITY AND LIABILITIES
Stated capital and reserves 64 412 59 964 66 050
Non-current liabilities 16 059 23 653 18 843
Long-term borrowings 12 791 19 086 15 431
Deferred taxation 3 268 3 097 3 412
BBBEE share creditors - 1 470 -
Current liabilities 59 201 39 892 46 962
Short-term loans 15 181 9 638 17 001
BBBEE share creditors 1 561 2 936 2 936
Tax payable 414 605 375
Accounts payable 31 617 20 095 22 330
Provisions 9 401 6 618 4 223
Bank overdraft 1 027 - 97
TOTAL EQUITY AND LIABILITIES 139 672 123 509 131 855
Shares in issue (000`s) 252 107 252 107 252 107
Net asset value per share 25.55 23.79 26.20
(cents)
Net tangible asset value per 23.02 21.26 23.67
share (cents)
Statement of changes in equity
Non- Total
Revalua- Accumu- distribut- share-
Stated tion lated able holders
(R`000) Capital reserve losses reserve funds
Balance as at
1 March 2006
As previously 210 147 15 131 (169 188) 641 56 731
reported
Profit for 3 233 3 233
the period
Balance as at 210 147 15 131 (165 955) 641 59 964
31 August
2006
Profit for 3 405 3 405
the period
Revaluation 2 681 2 681
of plant and
equipment
Balance as at 210 147 17 812 (162 550) 641 66 050
28 February
2007
Loss for the (1 638) (1 638)
period
Balance as at 210 147 17 812 (164 188) 641 64 412
31 August
2007
Registered office
1111 Church Street, Hatfield 0083, Pretoria
PO Box 11328, Hatfield 0028, Pretoria
Tel: +27 (0) 12 342 1980
Fax: +27 (0) 12 342 1976
E-mail: info@kairos.co.za
Sponsor
Bridge Capital Advisors (Pty) Limited, 27 Fricker Road, Illovo Boulevard, Illovo
2196
Share transfer secretaries
Computershare Investor Services 2004 (Pty) Limited, 70 Marshall Street,
Johannesburg 2001
Directors JB Oosthuizen (Non-executive Chairman), WL van Deventer (Chief
Executive), JJ de W Mulder, VD Mazibuko, WA Lombard
Date: 02/10/2007 17:30:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
