| Fri 22 Feb 2008, 15:08 | | WTL - William Tell Holdings - Unaudited Results For The Six Months Ended |
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WTL
WTL
WTL - William Tell Holdings - Unaudited Results For The Six Months Ended
31 December 2007, dividend declaration and further cautionary
William Tell Holdings Limited
("William Tell" or "the group")
(Registration number 2004/030045/06)
(Previously VICVA 148 (Pty) Ltd)
Share code: WTL ISIN: ZAE000098133
Unaudited results for the six months ended 31 December 2007
- Turnover up 17%
- Operating profit up 23%
- Net profit up 46%
- Headline earnings per share up 16%
Summarised Consolidated Income Statements
Unaudited Reviewed Audited
December December June
2007 2006 2007
R`000 R`000 R`000
Revenue 100 607 85 832 176 153
Cost of sales (60 679) (52 421) (107 426)
Gross profit 39 928 33 411 68 727
Other income 829 42 533
Administrative and other operating (12 932) (10 911) (20 474)
expenses
Operating profit 27 825 22 542 48 786
Investment income 5 468 529 1 059
Foreign exchange loss (107) 66 (126)
Interest paid (3 080) (1 311) (3 957)
Profit before taxation 30 106 21 826 45 762
Taxation (8 452) (6 954) (14 466)
Profit for the period 21 654 14 872 31 296
Depreciation and amortisation for (2 359) (1 594) (3 746)
the period
Earnings per share (cents) 17.32 14.87 31.30
Headline earnings per share 17.22 14.85 31.30
(cents)
Dividends per share (cents) - (6.30) (9.04)
Reconciliation of basic earnings
to headline earnings
Earnings 21 654 14 872 13 296
Adjusted by (profit) / loss on (126) (18) 5
sale of property, plant and
equipment
Headline earnings 21 528 14 854 31 301
Reconciliation between weighted
average number of shares and
diluted average number of shares:
Number of shares (`000) 125 000 100 000 125 000
Adjusted by pro-rata in issue for - - (25 000)
the year
Weighted average number of shares 125 000 100 000 100 000
(`000)
Summarised Consolidated Balance Sheets
Unaudited Reviewed Audited
December December June
2007 2006 2007
R`000 R`000 R`000
Assets
Non-current assets 174 713 99 072 130 340
Property, plant and equipment 174 622 99 010 130 286
Intangible assets 91 62 54
Current assets 145 044 50 448 174 298
Inventories 17 729 15 078 17 094
Trade and other receivables 21 135 18 689 24 326
Current taxation receivable 357 - 24
Cash and cash equivalents 105 823 16 681 132 854
319 757 149 520 304 638
Equity & Liabilities
Capital & reserves 206 581 62 478 185 415
Share capital 1 250 4 1 250
Share premium 179 270 - 179 758
Accumulated profit 26 061 62 474 4 407
Non-current liabilities 77 793 44 412 61 014
Interest bearing borrowings 57 272 36 379 43 456
Deferred Taxation 20 521 8 033 17 558
Current liabilities 35 383 42 630 58 209
Trade and other payables 27 009 19 886 43 301
Interest bearing borrowings 3 760 9 961 12 415
Provisions 1 356 1 706 2 492
Current taxation payable 3 258 11 077 -
Bank overdraft - - 1
319 757 149 520 304 638
Net asset value per share (cents) 165 62 148
Capital expenditure for the period 47 169 15 502 36 442
(R`000)
Summarised Consolidated Statements of Changes in Equity
Unaudited Reviewed Audited
December December June
2007 2006 2007
R`000 R`000 R`000
Share capital
Balance at the beginning of the 1 250 4 4
year
Shares issued during the period - - 1 246
Balance at the end of the period 1 250 4 1 250
Share premium
Share premium on issues 179 758 - 183 966
Share issue expenses (488) - (4 208)
Balance at the end of the period 179 270 - 179 758
Accumulated profit and other
reserves
Balance at the beginning of the 4 407 52 917 52 917
year
Profit for the period 21 654 14 872 31 296
IFRS 3 adjustment on group - 985 (68 506)
formation
Dividend paid during the period - (6 300) (11 300)
26 061 62 474 4 407
Summarised Consolidated Cash Flow Statements
Unaudited Reviewed Audited
December December June
2007 2006 2007
R`000 R`000 R`000
Net cash generated by operations 32 134 31 881 59 860
Amounts collected on behalf of (17 000) - 17 000
directors sale of shares
Net finance income / (costs) 2 281 (716) (3 024)
Dividends paid - (6 300) (11 300)
Taxation paid (2 564) (3 119) (15 495)
Cash flow from operating 14 851 21 746 47 041
activities
Cash flow from investing (46 554) (15 458) (36 146)
activities
Cash flow from financing 4 673 (891) 110 678
activities
Movement in cash and cash (27 030) 5 397 121 573
equivalents
Cash and cash equivalents at the 132 853 11 284 11 280
beginning of the year
Cash and cash equivalents at the 105 823 16 681 132 853
end of the period
Segment Report
No segmental reporting is provided as the group is a single segment entity.
Commentary and further cautionary announcement
Basis of preparation
These summarised consolidated interim financial statements have been prepared in
accordance with International Financial Reporting Standards ("IFRS"), IAS 34:
"Interim Financial Reporting", the South African Companies Act, as amended, and
the JSE Listings Requirements. The principal accounting policies used in the
preparation of the unaudited results for the period ended 31 December 2007 are
consistent with those applied for the year ended 30 June 2007 and in the
company`s subsidiaries unaudited results for the six months ended 31 December
2006 in terms of IFRS. The reverse acquisition provisions of IFRS 3: Business
Combinations have been applied and the results for the year ended 30 June 2007
and those for the six months ended 31 December 2006 have been presented as a
continuation of the financial statements of the subsidiaries.
Overview of the 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.
Governance
The directors and senior management of the group endorse the Code of Corporate
Practices and Conduct as set out in the King II report on Corporate Governance.
Having regard to the size of the group and its recent listing on the Alternative
Exchange of the JSE Limited (ALTx), the board is still pursuing the process of
formalising compliance. Progress has been made through the auspices of the
group`s Remuneration & Nomination Committee as well as its Audit & Risk
Committee.
Six month Operational Review
William Tell continues to meet expectations and had a satisfactory first six
months to December 2007. The group is pleased to announce growth in operating
profit to R27.8 million (December 2006: R22.5 million), a healthy increase of
23%. Revenue after rebates and discounts grew by 17% when compared with the
previous interim period on the back of continued demand for wood-based panels.
The contribution of the group`s first chipboard facility is evident from the
fact that the group has maintained a gross profit percentage of close on 40%
(December 2006: 39%) and an encouraging EBITDA margin of 30% (December 2006:
28%). Headline earnings per share improved by 15.9% to 17.22 cents (December
2006: 14.87 cents). Management`s continued commitment to a vertical integration
strategy, production efficiencies at its first chipboard plant and with the
introduction of the second chipboard facility should lead to a further
improvement in margins over the next 12 months.
Funds raised on the group`s listing were effectively deployed during the 6
months ended December 2007, with R28.0 million being used to settle expensive
debt. The balance of funds has been placed in stable and diversified cash
instruments with competitive returns in the short term in anticipation of
funding additional capacity.
In line with the expansion of the group and in anticipation of further capacity
demand, the exciting development of the group`s second chipboard facility in
Chamdor, Krugersdorp continues with development costs incurred to date of R61.5
million (June 2007: R10.4 million), including the development of buildings and
civil works. Additional loan funds of R41.5 million together with the surplus
cash referred to above, are available to meet the total development costs for
the entire project, which is estimated at R160.0 million, including the
capitalisation of finance charges. The plant is expected to be commissioned in
June 2008.
Prospects
Following the achievement of these interim results, the group is on track to
achieve the forecast for 2008 as published in the prospectus dated 25 June 2007.
As with all businesses in South Africa the group`s exposure to electricity
supply constraints is of concern. However such is not expected to have a
material effect on production as the group is installing standby generating
capacity at its Booysens plant.
On the back of continued demand for the group`s products, the board expects
growth to continue into the foreseeable future. Development of the group`s
second chipboard plant in Chamdor on the West Rand is well on target and plans
are in hand to further increase capacity enabling William Tell to increase its
market share.
The group has acquired the entire issued share capital and shareholder loans of
ELB Ultrabord (Pty) Limited for a purchase consideration of R7.0 million. The
plant and products of this company will substantially complement the business of
William Tell in the future.
Dividends
In line with the group`s policy, notice is hereby given that the directors have
declared an interim dividend of 5 cents per share in respect of the six months
ended 31 December 2007. In order to comply with the requirements of STRATE the
relevant details are as follows:
Last date to trade "cum" dividend Friday, 7 March 2008
Share to commence trading "ex" dividend Monday, 10 March 2008
Record date (date shareholders recorded in register) Friday, 14 March 2008
Payment date Monday, 17 March 2008
No share certificates may be dematerialised or rematerialised between Monday, 10
March 2008 and Friday, 14 March 2008, both dates inclusive.
Further Cautionary Announcements
Further to the cautionary released on SENS on 4 February 2008, William Tell`s
shareholders are advised that the negotiations with regards to the possible
acquisition by William Tell of the businesses of Magnaboard SA (Pty) Limited and
Formalchem SA (Pty) Limited are continuing. Such negotiations, if successfully
concluded, may have a material effect on the company`s share price.
In addition to the above the group is also involved in preliminary negotiations
on another potential acquisition in accordance with the group`s vertical
integration strategy which, 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 further announcements are made.
Post Balance Sheet Events
Other than the acquisition of ELB Ultrabord (Pty) Limited and the cautionary
announcements above, there are no events after the interim balance sheet date
until the date of this release that requires additional disclosure.
By order of the board
B P Lok
22 February 2008
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: 22/02/2008 15:08:38 Produced by the JSE SENS Department.
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