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JDH
JDH
JDH - John Daniel Holdings - Abridged Balance Sheet As At 30 June 2007
JOHN DANIEL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1998/013215/06)
("the Company" or "JDH" or "the Group")
JSE Code: JDH & ISIN: ZAE000044343
ABRIDGED BALANCE SHEET AS AT 30 JUNE 2007
GROUP GROUP
AUDITED AUDITED
2007 2006 Restated
R`000 R`000
ASSETS
Non-current assets
Property, plant and equipment 5 804 5 890
Intangible assets 1 611 849
Investments 3 000 -
Deferred tax 845 3 466
Loan receivable 42 -
Total non-current assets 11 302 10 205
Total current assets 4 498 5 943
Group assets held for sale - 1 338
TOTAL ASSETS 15 800 17 486
EQUITY AND LIABILITIES
Equity 7 001 8 776
Non-current liabilities
Interest-bearing loans - 851
Deferred tax 299 -
Total non-current liabilities 299 851
Total current liabilities and 8 500 6 277
shareholders loans
Group liabilities held for sale - 1 582
TOTAL EQUITY AND LIABILITIES 15 800 17 486
Net asset value 5 473 3 136
Net tangible asset value 3 862 2 287
Net asset value per share (cents) 0.094 0.054
Net tangible asset value per share 0.066 0.039
(cents)
John Daniel Holdings Limited and Its Subsidiaries
Abridged Income Statement for the Year Ended 30 June 2007
GROUP GROUP
AUDITED AUDITED
2007 2006 Restated
R`000 R`000
REVENUE 8 008 11 965
COST OF SALES (4 273) (9 954)
GROSS PROFIT 3 735 2 011
Other income 5 866 552
Selling, distribution and (9 077) (11 454)
administration expenses
PROFIT/(LOSS) before net finance 524 (8 891)
costs and tax
Net finance costs (259) (80)
Taxation (expense) / income (3 650) 2 370
NET LOSS FOR THE YEAR (3 385) (6 601)
Attributable to:
Equity holders of the parents 116 (4 268)
Minority interest (minorities only (3 501) (2 333)
share in continuing operations)
(3 385) (6 601)
NET PROFIT / (LOSS) FOR THE YEAR
ATTRIBUTABLE TO THE HOLDING COMPANY
Continued operations 116 2 721
Discontinued operations - (6 989)
Basic earnings / (loss) 116 (4 268)
Headline (loss) / earnings (4 587) 1 319
Basic earnings / (loss) per share 0.002 (0.074)
(cents) attributable to equity
holders of the parent
Headline (loss) / earnings per share (0.079) 0.023
(cents) attributable to equity
holders of the parent
There are no dilutory instruments..
Weighted average number of shares 5 806 113 5 805 976
`000
Number of shares in issue `000 5 855 976 5 805 976
Reconciliation between basic
earnings / (loss) and headline
earnings
Basic earnings / (loss) 116 (4 268)
Loss / (profit) on sale of property, 6 (20)
plant and equipment
Impairment of goodwill - 5 607
(Profit) on sale of a subsidiary (4 709) -
Headline (loss) / earnings (4 587) 1 319
John Daniel Holdings Limited and Its Subsidiaries
Abridged Segmental Information for the Year Ended 30 June 2007
Group 2007 R`000 R`000 R`000 R`000 R`000
Primary segments Biotechnology Packaging Industrial Elimination Consolidated
Revenues 4 115 3 966 - (73) 8 008
Attributable to - - - - -
discontinuing
operations
Inter-segmental - - - - -
revenues
Total external 4 115 3 966 - (73) 8 008
revenue
Segmental results (195) (3 322) - 3 227 (290)
Unallocated group 814
profit
Total result (195) (3 322) - 3 227 524
Group 2006 R`000 R`000 R`000 R`000 R`000
Restated
Primary segments Biotechnology Packaging Industrial Elimination Consolidated
Revenues 3 068 4 442 4 455 - 11 965
Attributable to (4 455) (4 445)
discontinuing
operations
Inter-segmental - - - - -
revenues
Total external 3 068 4 442 - - 7 510
revenue
Segmental results (97) (1 626) (1 394) (1 607) (4 724)
Unallocated group (4 167)
expenses
Total result (97) (1 626) (1 394) (1 607) (8 891)
John Daniel Holdings Limited and Its Subsidiaries
Abridged Statement of Changes in Equity for the Year Ended 30 June 2007
Capital Subsidiar Non Share Accumulat Minority Total
y trading distrib option ed interest
non utable Reserve (loss) /
distribut reserve profit
R`000 able R`000 R`000
reserve R`000 R`000
R`000 R`000
GROUP
Balance as at 23 915 5 359 (17 659) 4 444 16 059
30 June 2005
as previously
reported
Prior period 5 417 142 (11 391) (762) (6 594)
errors
Restated 23 915 5 417 5 359 142 (29 050) 3 682 9 465
balance as at
30 June 2005
Profit on sale 1 000 1 000
of shares in
subsidiary
Changes in 665 4 291 4 956
equity
holdings of
subsidiaries
Options (44) (44)
exercised
Net loss for (4 268) (2 333) (6 601)
the year
Balance as at 23 915 7 082 5 359 98 (33 318) 5 640 8 776
30 June 2006
Shares issued 500 500
Options (11) (11)
expired
Profit on sale 1 620 1 620
of shares in
subsidiary
Changes in 111 (610) (499)
equity
holdings of
subsidiaries
Net profit / 116 (3 501) (3 385)
(loss) for the
year
Balance as at 24 415 8 813 5 359 87 (33 202) 1 529 7 001
30 June 2007
The prior period errors relate to:
1) The incorrect calculation and erroneous elimination of the share option
reserve in Lazaron Biotechnologies (SA) Ltd on consolidation,
2) The incorrect application of the revenue recognition policy in Lazaron
Biotechnologies (SA) Ltd,
3) The incorrect calculation of deferred tax liabilities in respect of capital
allowances in the Vinguard Ltd and John Daniel Holdings Ltd,
4) The incorrect accounting for Lazaron Biotechnologies (SA) Ltd as an associate
in the 2005 year.
5) The incorrect allocation of the piecemeal disposal and acquisition of the
group`s subsidiaries to the income statement and not to the statement of changes
in equity.
John Daniel Holdings Limited and Its Subsidiaries
Abridged Cash Flow Statement for the Year Ended 30 June 2007
GROUP GROUP
AUDITED AUDITED
2007 2006
Restated
R`000 R`000
NET CASH OUTFLOW FROM OPERATING ACTIVITIES (1 445) (5 067)
NET CASH INFLOW FROM INVESTING ACTIVITIES 246 1 232
NET CASH INFLOW FROM FINANCING ACTIVITIES 1 587 1 640
Increase / (decrease) in cash and cash 388 (2 195)
equivalents
Cash and cash equivalents at the beginning of (979) 1 216
the year
Cash and cash equivalents at the end of the (591) (979)
year
Comments
REVIEW OF RESULTS AND FINANCIAL POSITION
The consolidated financial results under review for the year ended 30 June 2007
represents income from the Group`s two trading subsidiaries - Vinguard Limited
("Vinguard") and Lazaron Biotechnologies (SA) Limited ("Lazaron") as well as
the profit from the sale of the discontinued operation.
The Group has managed to show a profit of R116 000 for the year ending 30 June
2007. This reflects an acceptable turnaround when compared to a restated loss of
R4, 2m in 2006 and an un-audited interim loss of R775 000 at December 2006.
The Group has managed to achieve a gross profit margin of 50% as opposed to very
lean trading margins in previous years. Selling, distribution and administrative
expenses have been curtailed to the same levels as the previous years with a
below inflationary increase of 3, 7% over the previous year.
The Group has reported a basic earnings per share of 0,002 cents per share and a
headline loss of 0,008 cents per share attributable to the profit on the sale of
the discontinued operation of The Subsidiary John Daniel Containers Limited.
OPERATIONAL REVIEW
Group Overview
The group currently has two operational subsidiaries, Vinguard Ltd and Lazaron
Biotechnologies (SA) Ltd. Efforts to acquire a stake in a South African
aerospace company have been put on hold until further notice. The Board is
however pleased to announce that the company has concluded an agreement with a
Dutch Biotechnology group involved in genetic manipulation of plant materials.
This agreement remains subject to certain suspensive conditions. The
transaction, if successfully concluded, will allow the group to expand its
interests in the Biotechnology sector serving global markets with highly
specialized intellectual property. More information relating to this
transaction will be provided once the suspensive conditions are met.
Vinguard Limited ("Vinguard")
Vinguard has experienced another difficult year in terms of both market
penetration and operational cash flows. In particular the company was required
to extend long credit terms to various international agents in order for them to
introduce the product in other countries. Management remains positive that the
past efforts have provided a solid platform for a rapid transition in sales. In
effect, it has become clear that table grape farmers first chose to utilize the
SO2 sheets on a trial bases prior to exposing their crops and table grape
exports to a new product. The production plant developed by Vinguard has
exceeded expectations, as has the efficacy of the product. The product has now
been utilized for two seasons in 11 countries and has proven itself as a highly
effective solution for extending the shelf-life of table grapes.
Having highlighted the above, the board would like to draw the attention of all
stakeholders that the foreseeable future of Vinguard is dependant on the
following crucial factors:
The company`s ability to generate a profit;
The continued support of all major stakeholders; and
The ability of the board to secure additional funding if so required.
The board has prepared a forecast for the next 12 months which is based on
possible new local and international markets that now appear likely to come to
fruition as a direct result of a well co-ordinated and focused marketing
strategy over the past few years.
Despite the company`s financial difficulties, the board remains satisfied that
Vinguard is well positioned to further penetrate the local and global table
grape market.
Lazaron Biotechnologies (SA) Limited ("Lazaron")
The board remains pleased with the company`s investment in Lazaron. Lazaron is
now well established as a provider of umbilical cord-blood stem-cell storage
services in South Africa, being the first such company in Africa to offer this
service. Awareness of the need and importance of saving stem-cells of newborn
children is growing constantly amongst parents and it is anticipated that
Lazaron`s` market share will grow substantially during forthcoming years.
Management expects good growth for the company due to a strategic marketing and
distribution initiative that has been concluded with an established and
reputable healthcare institution to further promote its cord-blood stem cell
storage service.
Previously projected income has unfortunately been curtailed by the fact that,
to date, the company has not been able to obtain a further licence from the
Department of Health to offer an adult stem cell storage service. Despite
various assurances on the part of the Department, this matter has not received
adequate and due consideration on their part resulting in substantial and
unnecessary losses to the company during the past year. This matter continues
to remain the highest priority goal that needs to be achieved in the short term
and interaction with the Department is being pursued. Stakeholders` attention
is drawn to the fact that the necessary laboratory has already been constructed
to ISO 7 standards and as such most capital required to offer this service has
been expensed.
No further commitment has been made to expenditure on research because the horse
tendon regeneration project has been completed and has resulted in an
application for a patent with respect to the intellectual property. Recently, a
very well known race horse was the first to receive a commercial treatment from
Lazaron, and the treating veterinarians have reported highly satisfactory
results. Lazaron is currently exploring the feasibility of establishing a
separate animal bio-cell laboratory in order to commercially exploit the
research performed.
PROSPECTS
The Group remains committed to expanding its investment portfolio into companies
operating in high technology markets both locally and internationally. To this
end, opportunities both in start up phase and those already established are
continually assessed as further investment possibilities.
Various opportunities relating to expansion of the business of both subsidiaries
are under way and JDH remains committed, in the near future, to expanding its
interests into the already reported plant biotechnology opportunity.
Shareholders are requested to note that JDH might choose to realise certain
underlying assets or part thereof in favour of increasing its cash flows.
Stakeholders remain advised that as previously reported the directors remain
committed to proposing a consolidation of the share capital of the company. This
will only be proposed in the event that the company is successful in concluding
a further transaction.
DIVIDENDS
No dividends have been declared or proposed for the period under review.
EVENTS SUBSEQUENT TO BALANCE SHEET DATE
No material adjusting or non-adjusting events subsequent to balance sheet date
have occurred.
ACCOUNTING POLICIES
The financial statements have been prepared in accordance with International
Financial Reporting Standards. The principle accounting policies adopted in
preparation of these financial statements are not consistent with those of the
prior year. The company has changed its accounting policy relating to
investments in subsidiaries (in its separate accounts). Previously these were
accounted for on a fair value basis. Investments in subsidiaries are now
accounted for on the cost basis. There are no effects of this change on the
Group`s financial position and results of operations. The prior years have also
been restated due to errors as explained in the note under the statement of
changes in equity. This abridged set of accounts complies with IAS 34.
AUDIT REPORT
These results have been audited by BDO Spencer Steward (Cape) Inc. and their
unqualified audit report with an emphasis of matter is available for inspection
at the company`s registered office.
For and on behalf of the Board
H Minnie
CEO
Stellenbosch
15 October 2007
Directors: S Tshiki (Non-executive Chairman), HD Minnie (CEO), NJ Ackermann
(Financial Director), T Mvusi (Non-Executive Director), S Serex (Non-Executive
Director)
Company Secretary: Capital Commitments Limited
Registered Office: Infruitec Northern Terrain, Lelie Street, Stellenbosch 7600,
PO Box 1243, Stellenbosch, 7599.
Transfer Secretaries: Computershare Investor Services 2004 (Pty) Ltd, 70
Marshall Street, Marshalltown 2001. PO Box 61051, Marshalltown, 2107.
Sponsor: Arcay Moela Sponsor (Pty) Ltd
Auditors: BDO Spencer Steward (Cape) Inc.
Date: 15/10/2007 14:58:01 Produced by the JSE SENS Department.
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