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APK
APK
APK - Astrapak - Restatements To 2007 Group Annual Financial Statements
Astrapak Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1995/009169/06)
Share Code: APK
ISIN: ZAE000096962
("Astrapak" or "the company")
RESTATEMENTS TO 2007 GROUP ANNUAL FINANCIAL STATEMENTS
Shareholders are advised that the company has, through its internal
processes, become aware of an overstatement of profits and assets by an
employee in one of its subsidiaries during the period September 2006 to
February 2007. Such overstatement arose through an intentional
misstatement of the assets in the subsidiary.
The company has now completed its own internal review and has also engaged
and obtained an opinion from independent forensic auditors on the matter.
Having now determined the extent of the misstatement, the company wishes
to advise shareholders of the impact on the previously reported group
annual financial statements for the financial year ended 28 February 2007.
The impact on the group annual financial statements are summarised in
Table 1 and Table 2 below. For purpose of full disclosure, the restated
condensed consolidated income statement, balance sheet, statement of
changes in equity and consolidated cashflow statement has been disclosed
at the end of this announcement.
Table 1. Line items as reported on 28 February 2007 affected by the
overstatement of profits and assets:
R`000 Balances as Adjustment Restated
previously required in balances 28
reported 28 terms of February 2007
Audited February this
2007 announcement
Cost of sales 1,673,781 18,353 1,692,134
Profit from operations 246,373 (18,353) 228,020
Taxation 51,690 (5,322) 46,368
Retained income 610,426 (13,031) 597,395
Property, plant & 778,529 (13,647) 764,882
equipment
Inventory 317,801 (4,706) 313,095
Deferred tax asset 36,315 5,322 41,637
Cash generated from 263,005 (13,647) 249,358
operations
Additions to property,
plant and equipment (173,139) 13,647 (159,492)
Cash outflow from (326,108) 13,647 (312,461)
investing activities
Table 2. The effect on earnings reported at 28 February 2007 is as
follows:
Audited As Adjustment Restated %
previously required in 28 change
reported terms of February
28 February this 2007
2007 announcement
Earnings per linked 117.0 (10.9) 106.1 (9.3%)
unit (cents)
Headline earnings per 117.9 (10.9) 107.0 (9.3%)
linked unit (cents)
Fully diluted earnings 109.8 (10.2) 99.6 (9.3%)
per linked unit
(cents)
Fully diluted headline 110.2 (10.2) 100.0 (9.3%)
earnings per linked
unit (cents)
Net Asset Value per 748.8 (10.9) 737.9 (1.5%)
linked unit (cents)
Tangible Net Asset 656.5 (10.9) 645.6 (1.7%)
Value per linked unit
(cents)
Given the period during which the overstatement occurred, the company
confirms that the reported interim results for the six months ended 31
August 2006 were not impacted. The impact on the reported interim results
for the six months ended 31 August 2007 relate to the group balance sheet
only and are dealt with in Table 3 below.
Table 3. Line items as reported at 31 August 2007 affected by the
overstatement of profits and assets in the financial year ended 28
February 2007:
R`000 Balances as Effect of Restated
Unaudited previously prior year balances 31
reported 31 adjustment August 2007
August 2007 required in
terms of this
announcement
Retained income 646,082 (13,031) 633,051
Property, plant & 888,633 (18,353) 870,280
equipment
Deferred tax asset 44,798 5,322 50,120
In response to this matter, the company has initiated both a control
system and financial audit at all of its remaining subsidiaries, focusing
on the main areas of concern identified during the internal review and the
forensic audit. These audits are now near completion and to date have not
revealed any further material breach of group policies.
Disciplinary action is being taken against the party involved.
Furthermore, corrective measures have been implemented at the subsidiary
to prevent a recurrence of this incident.
The financial information on which this announcement is based has been
audited and reported on by the company`s auditors and the report is
available for inspection at the registered office of the company.
RESTATED RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2007
Condensed consolidated income statements
Restated Audited Audited
Audited Previously
Results Reported
(R `000) 2007 2007 2006
Revenue 2,223,131 2,223,131 1,840,029
Cost of sales 1,692,134 1,673,781 1,365,254
Gross profit 530,997 549,350 474,775
Other operating income 11,474 11,474 8,685
Distribution and selling costs 156,200 156,200 128,784
Administrative and other expenses 160,235 160,235 136,534
Share of results of associates 1,984 1,984 3,530
Profit from operations 228,020 246,373 221,672
Investment income 2,835 2,835 3,665
Finance costs 51,130 51,130 40,865
Profit before taxation 179,725 198,078 184,472
Taxation 46,368 51,690 46,669
Profit for the year 133,357 146,388 137,803
Attributable to:
Linked unitholders of the parent 118,923 131,954 129,239
Preference shareholders of the 4,595 4,595 -
parent
Minority interest 9,839 9,839 8,564
Profit for the year 133,357 146,388 137,803
Earnings per linked unit (cents) 106.1 117.0 114.3
Attributable income 99.6 110.5 108.4
Debenture interest 6.5 6.5 5.9
Earnings per linked unit - fully 99.6 109.8 104.4
diluted (cents)
Attributable income 93.1 103.3 98.5
Debenture interest 6.5 6.5 5.9
Weighted number of linked units in 119,390 119,390 119,187
issue (000`s)
Weighted number of linked units in 127,745 127,745 131,272
issue - fully diluted (000`s)
Ordinary dividends paid 33,445 33,445* 33,445
Ordinary dividend per linked unit 24.75 24.75* 24.75
Preference dividends accrued 4,595 4,595 -
Preference dividend per share 306.33 306.33 -
* - dividends per linked unit for
the year ended 28 February 2007 was
declared on 7 May 2007 and was paid
on 4 June 2007.
Reconciliation between profit attributable to linked unitholders of
the parent and headline earnings
Profit attributable to linked 118,923 131,954 129,239
unitholders of the parent
Debenture interest 6,808 6,808 6,984
Net loss on exercise of options 3,658 3,658 2,289
Net (profit) / loss on disposal of (1,717) (1,717) 1,773
property, plant and equipment
Tax effect 61 61 (71)
Attributable to minorities 42 42 (2)
Headline earnings 127,775 140,806 140,212
Headline earnings per linked unit 107.0 117.9 117.6
(cents)
Attributable income 100.5 111.4 111.7
Debenture interest 6.5 6.5 5.9
Headline earnings per linked unit - 100.0 110.2 106.8
fully diluted (cents)
Attributable income 93.5 103.7 100.9
Debenture interest 6.5 6.5 5.9
Reconciliation between profit from
operations and EBITDA
Profit from operations 228,020 246,373 221,672
Depreciation 115,116 115,116 102,072
Amortisation of intangibles 66 66 18
Earnings before interest, taxation, 343,202 361,555 323,762
depreciation and amortisation
(EBITDA)
Condensed consolidated
balance sheets
Restated Audited Audited
Audited Previously
Results Reported
(R `000) 2007 2007 2006
Assets
Non-current assets 933,835 942,160 752,286
Property, plant and 764,882 778,529 615,821
equipment
Deferred taxation 41,637 36,315 28,980
Goodwill and trademarks 110,248 110,248 90,228
Loans and investments 17,068 17,068 17,257
Currents assets 861,852 866,558 690,916
Inventories (1) 313,095 317,801 245,192
Trade and other receivables 421,693 421,693 301,268
Cash resources 127,064 127,064 144,456
Total assets 1,795,687 1,808,718 1,443,202
Equity and liabilities
Total equity 881,002 894,033 717,327
Ordinary share capital and 199,502 199,502 199,502
share premium
Retained income 597,395 610,426 508,745
Non-distributable reserves (1,269) (1,269) 17
Capital reserve (2) 8,490 8,490 5,331
Treasury shares (154,872) (154,872) (79,450)
Ordinary shareholders` 649,246 662,277 634,145
funds
Debentures 58,005 58,005 59,616
Equity attributable to 707,251 720,282 693,761
linked unitholders
Preference share capital 142,602 142,602 -
and share premium
Minority interest 31,149 31,149 23,566
Non-current liabilities 255,685 255,685 223,288
Long term interest-bearing 158,637 158,637 144,371
debt
Deferred taxation 97,048 97,048 78,917
Current liabilities 659,000 659,000 502,587
Trade and other payables 391,568 391,568 374,154
Linked unitholders for 6,646 6,646 6,260
debenture interest
Shareholders for preference 4,595 4,595 -
dividends
Short term interest-bearing 256,191 256,191 122,173
debt
Total equity and 1,795,687 1,808,718 1,443,202
liabilities
(1) Inventories
Inventories amounting to
R679 939 (2006: R485 981)
are carried at net
realisable value.
(2) Capital reserve
The capital reserve relates
to employee share options
valued using the Black
Scholes method.
Additional information
Capital expenditure 159,492 173,139 183,863
Capital commitments
- contracted not spent 65,334 65,334 21,265
Net asset value per linked 737.9 748.8 601.8
unit (cents)
Net tangible asset value 645.6 656.5 526.1
per linked unit (cents)
Net interest bearing debt 33 32 17
as a percentage of equity
(%)
Net interest bearing debt 287,764 287,764 122,088
Long term interest-bearing 158,637 158,637 144,371
debt
Short term interest-bearing 256,191 256,191 122,173
debt
Cash resources (127,064) (127,064) (144,456)
Contingent liabilities 4,782 4,782 4,591
Number of linked units in 135,131,250 135,131,250 135,131,250
issue
Property, plant and
equipment
Opening balance - net book 615,821 615,821 480,971
value
Additions 159,492 173,139 183,863
Acquisition of subsidiaries 108,126 108,126 61,651
Depreciation (115,116) (115,116) (102,072)
Disposals - book value (3,441) (3,441) (8,592)
Closing balance - net book 764,882 778,529 615,821
value
Consolidated cash flow
statements
Restated Audited Audited
Audited Previously
Results Reported
(R `000) 2007 2007 2006
Cash flows from operating
activities
Cash generated from 249,358 263,005 327,843
operations
Interest received 2,835 2,835 3,665
Interest paid (excluding (44,322) (44,322) (33,881)
interest distribution to
linked unitholders)
Net dividends (31,173) (31,173) (20,527)
(paid)/received
Taxation paid (49,814) (49,814) (31,990)
Interest distribution to (6,422) (6,422) (6,608)
linked unitholders
Net cash inflow from 120,462 134,109 238,502
operating activities
Cash flows from investing
activities
Acquisition of subsidiary (157,912) (157,912) (82,883)
companies
Decrease in investment in 980 980 1,012
joint ventures
Additions to property, (159,492) (173,139) (183,863)
plant and equipment
Decrease in minority (2,093) (2,093) (13,019)
shareholders` interest
Goodwill on acquisition of (706) (706) (7,625)
minority shareholders`
interests
Increase/(decrease) in 1,604 1,604 1,574
investment and loans
Proceeds on disposal of 5,158 5,158 6,819
plant and equipment
Net cash outflow from (312,461) (326,108) (277,985)
investing activities
Cash flows from financing
activities
Increase in preference 2 2 -
share capital
Increase in preference 142,600 142,600 -
share premium
Increase in ordinary share - - 115,065
premium
(Decrease) / increase in (1,611) (1,611) 7,207
debentures
Acquisition of treasury (75,422) (75,422) (30,500)
linked units
Decrease in long-term (14,875) (14,875) (12,347)
liabilities
Increase/(decrease) in 47,346 47,346 (3,014)
short-term interest-bearing
debt
Net cash inflow/(outflow) 98,040 98,040 76,411
from financing activities
Net (decrease)/increase in (93,959) (93,959) 36,928
cash and cash equivalents
Cash and cash equivalents 119,968 119,968 83,040
at the beginning of the
year
Cash and cash equivalents 26,009 26,009 119,968
at the end of the year
Condensed consolidated
changes in equity statement
(R `000) Attributabl Prefere Minority Total
e to linked nce interests equity
unitholders share
of the capital
parent and
premium
Balances as at 28 February 496,995 - 23,535 520,530
2005
Adjustments to taxation and (4,602) - - (4,602)
deferred tax asset /
liability
Restated balances as at 28 492,393 - 23,535 515,928
February 2005
Net income for the year as 139,001 - 8,612 147,613
previously stated
Adjustments to taxation and (9,762) - (48) (9,810)
deferred tax asset /
liability
Net ordinary dividends paid (21,330) - (4,103) (25,433)
Adjustments to minority - - (4,430) (4,430)
interest
Increase in foreign currency 497 - - 497
translation reserve
Transfer to deferred tax (1,338) - - (1,338)
asset
Acquisition of treasury (30,500) - - (30,500)
shares (1)
Expensing of share based 2,528 - - 2,528
payments for the year
Issue of shares at a premium 115,065 - - 115,065
Issue of debentures 7,207 - - 7,207
Restated balances at 28 693,761 - 23,566 717,327
February 2006
Net income for the year 136,549 - 9,839 146,388
Net ordinary dividends paid (30,273) - (2,650) (32,923)
Preference dividends paid (4,595) - - (4,595)
Adjustments to minority - - 394 394
interest
Increase in foreign currency 52 - - 52
translation reserve
Transfer to deferred tax (1,338) - - (1,338)
asset
Acquisition of treasury (77,033) - - (77,033)
shares (1)
Expensing of share based 3,159 - - 3,159
payments for the year
Issue of preference shares at - 142,602 - 142,602
a premium
Balances at 28 February 2007 720,282 142,602 31,149 894,033
as previously reported
Net effect of the prior year (13,031) - - (13,031)
adjustment on net income for
the year
Restated balances as at 28 707,251 142,602 31,149 881,002
February 2007
Note 1: This movement is net of the movement in treasury shares held by
the Astrapak Linked Unit Trust for share options.
Sandton
13 December 2007
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 13/12/2007 13:10:01 Produced by the JSE SENS Department.
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