| Wed 19 Mar 2008, 7:30 | | WLO / WLN / WLOP / WLP1 - Wooltru Limited - Unaudited interim results for the |
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WLO / WLN / WLOP / WLP1 - Wooltru Limited - Unaudited interim results for the
six months ended 31 December 2007
WOOLTRU LIMITED
Incorporated in the Republic of South Africa
Registration number: 1936/008278/06
Share Code: WLO ISIN Code ZAE000007993
Share Code: WLN ISIN Code ZAE000008744
Share Code: WLOP ISIN Code ZAE000008009
Share Code: WLP1 ISIN Code ZAE000008071
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2007
BALANCE SHEET
Unaudited Audited
31 December 30 June
2007 2006 2007
Rm Rm Rm
ASSETS
Non-current assets
Deferred tax 1.3 0.2 1.3
Current assets 59.2 59.2 57.8
Listed investments - - 16.9
Trade and other receivables 0.4 0.2 0.3
Taxation 1.6 1.6 1.6
Bank balances and cash equivalents 57.2 57.4 39.0
Total assets 60.5 59.4 59.1
EQUITY AND LIABILITIES
Capital and reserves
attributable to equity holders 58.7 57.4 57.2
Ordinary share capital 9.9 9.9 9.9
Share premium 464.7 464.7 464.7
Non-distributable reserves 8.1 8.1 8.1
Accumulated loss (424.0) (425.3) (425.5)
Total equity 58.7 57.4 57.2
Non-current liabilities
Preference share capital 1.5 1.5 1.5
Current liabilities
Trade and other payables 0.3 0.5 0.4
Total equity and liabilities 60.5 59.4 59.1
Net asset value per share (cents) 12.5c 12.2c 12.1c
INCOME STATEMENT
Unaudited Audited
Six months ended Year ended
31 December 30 June
2007 2006 2007
Notes Rm Rm Rm
Revenue 2 2.7 2.2 4.5
Other income 0.7 2.4 1.2
Total income 3.4 4.6 5.7
Other operating costs (1.9) (1.9) (4.2)
Profit from operations 1.5 2.7 1.5
Finance costs - - (0.1)
Profit before taxation 1.5 2.7 1.4
Taxation 3 - (2.1) (1.0)
Profit attributable to equity holders 1.5 0.6 0.4
Number of shares issued (millions) 470.9 470.9 470.9
Weighted average number of shares
(millions) 470.9 470.9 470.9
Earnings per share
Basic earnings per share (cents) 0.3 0.1 0.1
Headline earnings per share (cents) 0.3 0.1 0.1
Diluted earnings per share (cents) 0.3 0.1 0.1
Distribution per share (cents) - - -
CASH FLOW STATEMENT
Unaudited Audited
Six months ended Year ended
31 December 30 June
2007 2006 2007
Rm Rm Rm
Cash flow from operating activities
Cash flow from trading (1.9) (2.0) (4.2)
Working capital movements (0.2) (0.3) (0.5)
Cash utilised in operating activities (2.1) (2.3) (4.7)
Finance income 2.7 2.2 4.5
Finance costs - - (0.1)
Net cash inflow/(outflow) from operating
activities 0.6 (0.1) (0.3)
Cash flow from investing activities
Purchase of listed investments - (3.3) (28.9)
Proceeds on sale of listed investments 17.6 28.8 36.2
Net cash inflow from investing activities 17.6 25.5 7.3
Net increase in cash and cash equivalents 18.2 25.4 7.0
Cash and cash equivalents at beginning of period 39.0 32.0 32.0
Cash and cash equivalents at end of period 57.2 57.4 39.0
STATEMENT OF CHANGES IN EQUITY
Non-
Ordinary Share distributable
share capital premium reserves
Rm Rm Rm
Opening balance at 1 January 2007 9.9 464.7 8.1
Recognised gains and losses
Loss attributable to equity holders - - -
Balance at 30 June 2007 9.9 464.7 8.1
Recognised gains and losses
Profit attributable to equity holders - - -
Closing balance at 31 December 2007 9.9 464.7 8.1
Total
Accumulated loss equity
Rm Rm
Opening balance at 1 January 2007 (425.3) 57.4
Recognised gains and losses
Loss attributable to equity holders (0.2) (0.2)
Balance at 30 June 2007 (425.5) 57.2
Recognised gains and losses
Profit attributable to equity holders 1.5 1.5
Closing balance at 31 December 2007 (424.0) 58.7
NOTES :
1 The interim financial statements were prepared in accordance with
International Financial Reporting Standards (IFRS) and presented in accordance
with IAS 34 (Interim Financial Reporting) and the Companies Act of South Africa,
as amended. The accounting policies and methods of computation are consistent
with those applied in the financial results for the year ended 30 June 2007.
The interim financial report has not been reviewed nor audited by an external
auditor.
Unaudited Audited
Six months ended Year ended
31 December 30 June
2007 2006 2007
Rm Rm Rm
2 Revenue
Finance income 2.7 2.2 4.5
3 Taxation
Assessed losses utilised - 2.1 1.0
4 Contingent liabilities:
CNA post-retirement medical aid liabilities * 13.9 13.9 13.9
SARS tax re-assessment on leasehold
improvement recoupment ** 24.6 24.5 24.6
* In regard to the claims by former employees of the business of Central News
Agencies Limited ("CNA") regarding post-retirement medical aid contributions,
it has been held that Wooltru is liable for any claims, which may be proved
against Johnnic Book Retail Limited ("Johnnic") (formerly CNA Gallo Limited) by
erstwhile employees of the business of CNA, as at 1 September 1997. In December
2005 Wooltru lodged a bank guarantee with Johnnic of R20.8 million which
covered total potential claims as calculated by Johnnic. Wooltru`s best
estimate of the possible liability is R13.9 million. Wooltru is disputing the
claim.
** SARS raised an assesment for the 2001 year adding back an amount as a
taxable recoupment with interest and penalties. During December 2006 the Tax
Court ruled in favour of Wooltru. SARS has since appealed against the ruling.
The appeal was heard on 25 January 2008, judgment is pending.
CHAIRMAN`S REVIEW - DECEMBER 2007
GROUP RESULTS
During the six months ended 31 December 2007 Wooltru recorded a profit before
taxation of R1.5 million compared to R2.7 million for the previous six months
ended 31 December 2006. Wooltru distributed R155.4 million to shareholders
during January 2006, resulting in a decrease in total income for the period
ending 31 December 2007.
Due to existing assessed losses no taxation was paid during the current or
previous period.
MEDICAL AID CLAIMS
In regard to the claims by former employees of the business of Central News
Agencies Limited ("CNA") regarding post-retirement medical aid contributions,
it has been held that Wooltru is liable for any claims, which may be proved
against Johnnic Book Retail Limited ("Johnnic") (formerly CNA Gallo Limited) by
erstwhile employees of the business of CNA, as at 1 September 1997. However
there is uncertainty regarding the success of any claims against Johnnic and
consequently the liability of Wooltru.
In December 2005 Wooltru lodged a bank guarantee with Johnnic of R20.8 million
which covered total potential claims as calculated by Johnnic. Wooltru has
noted R13.9 million as a contingent liability in note 4 of the interim
financial statements. Legal action and discussions continue.
TAXATION QUERIES
As disclosed in previous communications, South African Revenue Services (SARS)
has raised a revised assessment for Wooltru Property Holdings (Pty) Ltd for the
2001 year of assessment adding back to taxable income an amount of R50.9
million as a taxable recoupment in respect of leasehold improvements claimed as
a deduction by a taxpayer in terms of section 11(f) of the Act. The case was
heard by the Tax Court of Cape Town in December 2006. The judge ruled in favour
of Wooltru Property Holdings (Pty) Ltd. SARS has since appealed against the
judgment. The appeal was heard on 25 January 2008, judgment is pending. A
contingent liability of R24.6 million (2006: R23.4 million) is disclosed in
note 4 of the interim financial statements to cover all possible eventualities.
BOARD COMPOSITION
During the period under review there were two executive directors, Messrs A
Groll and AM Louw while Mr M Kaplan and Dr JC van der Horst served as
non-executive directors. There has been no change in directorship during the
year.
PROSPECTS
It is not possible to predict the outcome of the remaining claim for medical
aid contributions of former CNA employees or the unresolved taxation queries
with any accuracy. Shareholders will be advised of any developments regarding
these matters.
19 March 2008
Domicile and registered office
42 Hans Strijdom Avenue, Foreshore, Cape Town
P O Box 671, Cape Town, 8000, South Africa
Transfer secretary
Computershare Investor Services (Pty) Limited
70 Marshall Street, Johannesburg, 2001
Principal banker
The Standard Bank of South Africa Limited
Directors
M Kaplan* (Chairman), A Groll,
AM Louw, JC van der Horst*
* Non-executive
Secretary
L Moller
Sponsor
Bridge Capital Advisors (Pty) Ltd
Auditor
PKF (Newlands) Inc.
Contact details
Tel: (021) 421 5550
Fax: (021) 421 5551
Website
http://www.wooltru.co.za
Date: 19/03/2008 07:30:02 Produced by the JSE SENS Department.
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