|
AET
AET
AET - Alert - Unaudited Condensed Financial Results For The Six Months
Ended 31 December 2007
Alert Steel Holdings Limited
(previously known as "Alert Steel Built It (Pty) Limited")
(Incorporated in the Republic of South Africa)
(Registration number 2003/005144/06)
(JSE code : AET & ISIN : ZAE000092847)
("Alert" or "the company" or "the group")
Highlights
- Revenue up 26.1% to R350.6 million
- Attributable earnings up 15.5% to R14.9 million
- Headline earnings per share up 7% to 6.1 cents
UNAUDITED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2007
Condensed group income statements
Unaudited Restated
December Aggregated
2007 Unaudited
6 months December
R`000 2006
6 months
R`000 (1)
(4)
Revenue 350 591 278 019
Gross profit 81 025 64 651
Other income 3 281 940
Operating costs (61 636) (45 408)
Earnings before interest, taxation, 22 670 20 183
depreciation and amortisation
("EBITDA")
Depreciation (2 469) (1 536)
Profit before interest and taxation 20 201 18 647
Net interest received / (paid) 507 (473)
Profit before taxation 20 708 18 174
Taxation (5 801) (5 270)
Earnings attributable to ordinary 14 907 12 904
shareholders
Reconciliation of headline earnings:
Earnings attributable to ordinary 14 907 12 904
shareholders
Adjustment for interest on share (190) -
incentive trust
Fully diluted headline earnings 14 717 12 904
attributable to ordinary shareholders
Weighted average shares in issue on 245 000 225 000
which earnings are based 000 000 (3)
Fully diluted weighted average shares 252 200 225 000
in issue on which earnings are based 000 000
Earnings per share (cents) 6.1 5.7
Headline earnings per share (cents) 6.1 5.7
Fully diluted earnings per share 6.0 5.7
(cents)
Fully diluted headline earnings per 5.8 5.7
share (cents)
Notes:
(1) The aggregated unaudited results include the results of the operations that
became subsidiaries of Alert with effect from 1 November 2006, as part of
the group restructuring and as defined in the prospectus dated
16 February 2007 ("the prospectus).
(2) Inter-company transactions and outside shareholders interests have been
accounted for in aggregated financial information to ensure that the income
statements prior to the group restructure are comparable.
(3) The pro forma weighted average number of shares in issue is based on the
sub-division and increase of the ordinary shares in issue into 225 000 000
ordinary shares as set out in the prospectus.
(4) The results of Alert Steel Polokwane (Pty) Limited was treated as a
subsidiary in the 31 December 2006 aggregated unaudited results. Alert
Steel Polokwane (Pty) Limited is now treated as a joint venture and the 31
December 2006 figures have therefore been restated. Changes had no effect
on earnings attributable to ordinary shareholders.
Condensed group balance sheets
Unaudited Audited
December 2007 June 2007
R`000 R`000
ASSETS
Non-current assets 87 342 69 198
Property, plant and equipment 36 109 26 905
Goodwill 50 050 41 662
Other financial assets 492 228
Deferred taxation 691 403
Current assets 217 731 178 816
Inventories 128 792 81 010
Loans to group companies 1 077 3 157
Loans to managers and employees 85 196
Trade and other receivables 84 773 71 692
Cash and cash equivalents 3 004 22 761
Total assets 305 073 248 014
EQUITY AND LIABILITIES
Ordinary shareholders` equity 153 101 138 194
Non-current liabilities 11 351 7 830
Other financial liabilities 10 435 6 710
Operating lease liability 29 5
Deferred taxation 887 1 115
Current liabilities 140 621 101 990
Loans payable - 1 454
Other financial liabilities 8 434 7 603
Current taxation payable 8 433 6 372
Trade and other payables 73 688 84 465
Provisions 346 432
Bank overdraft 49 720 1 664
Total equity and liabilities 305 073 248 014
Number of shares in issue 245 000 000 245 000 000
Fully diluted number of shares in 252 600 000 252 600 000
issue at period end (1)
Net asset value per share (cents) 62.5 56.4
Net tangible asset value per 42.1 39.4
share (cents)
Note:
(1) The 7 600 000 ordinary shares issued to the Alert Share Incentive Scheme
have been treated as "treasury shares".
Condensed group statements of changes in equity
Unaudited Restated
December Aggregated
2007 Unaudited
6 months December
R`000 2006
6 months
R`000
Balance at beginning of period 138 194 -
Share issue - 105 000
Total earnings after minorities 14 907 12 904
Balance at end of period 153 101 117 904
Condensed group cash flow statements
Unaudited Restated
December Aggregated
2007 Unaudited
6 months December
R`000 2006
6 months
R`000
Cash flow from operating activities (52 744) 2 928
Cash flow from investing activities (18 132) (2 973)
Cash flow from financing activities 3 063 (226)
Net decrease in cash and cash (67 813) (271)
equivalents
Cash and cash equivalents at 21 097 (28 550)
beginning of period
Cash and cash equivalents at end of (46 716) (28 821)
period
Segmental reporting
Reinforcing Retail
Manufacturing
Unaudited Restated Unaudited Restated
December Aggregate December Aggregated
2007 d 2007 Unaudited
6 months Unaudited 6 months December 2006
R`000 December R`000 6 months
2006 R`000
6 months
R`000
Income Statement
Revenue 24 359 16 519 326 232 261 500
Earnings before 1 452 953 21 609 19 230
interest,
taxation,
depreciation and
amortisation
("EBITDA")
Other
information:
Depreciation (12) (13) (2 457) (1 523)
Balance Sheet
Segment assets 13 619 8 865 255 478 198 070
Segment 11 988 10 554 162 897 130 724
liabilities
Other
information:
Capital 23 65 11 650 2 908
Expenditure
Corporate (1) Group
Unaudited Restated Unaudited Restated
December Aggregated December Aggregated
2007 Unaudited 2007 Unaudited
6 months December 6 months December
R`000 2006 R`000 2006
6 months 6 months
R`000 R`000
Income Statement
Revenue - - 350 591 278 019
Earnings before (391) - 22 670 20 183
interest,
taxation,
depreciation and
amortisation
("EBITDA")
Other
information:
Depreciation - - (2 469) (1 536)
Balance Sheet
Segment assets 35 976 42 523 305 073 249 458
Segment (22 913) (11 504) 151 972 129 774
liabilities
Other
information:
Capital - - 11 673 2 973
Expenditure
Note:
Corporate segment assets and liabilities include inter-segment eliminations of
group loans and receivables and goodwill.
OVERVIEW
The directors of Alert are pleased to present the unaudited interim financial
results for the six months ended 31 December 2007 ("the interim period"). The
overall performance of Alert was satisfactory during the interim period.
Alert, through its operating subsidiaries, conducts business as retailers of
prime steel, building materials, plumbing and hardware products, operating 16
retail branches and 2 rebar (steel reinforcing bars used in concrete structures)
manufacturing plants in Polokwane and Pretoria.
The group has successfully implemented a new information technology system that
will support and control the growth of the group.
FINANCIAL RESULTS
Revenue increased 26.1% during the interim period to R350.6 million (2006:
R278.0 million). This is largely attributable to an increase in steel product
demand primarily from the construction and building sector. Gross profit
margins remained in line at 23%. EBITDA increased 12.3% to R22.7 million (2006:
R20.2 million) off the higher revenue base with EBITDA margins decreasing less
than 1% to 6.5% (2006: 7.3%) due to increased operational expenditure.
Headline earnings of R14.7 million increased by 14% from R12.9 million for the
comparative interim period.
BUSINESS COMBINATIONS
Alert acquired the Steel Giant (Pty) Limited ("Steel Giant") business and sale
assets as a going concern ("the Steel Giant transaction") for a maximum purchase
consideration of R12 000 000 plus the assumed liabilities, subject to certain
profit warranties. This acquisition is in line with Alert`s strategy to
increase and grow its geographical footprint.
Goodwill of R 8,4 million was raised on the acquisition of Steel Giant.
PROSPECTS
The trading conditions have been less robust recently due to an increase in the
interest rates.
The group will continue with its expansion strategy over the medium term which
includes the re-development of certain existing sites and to increase their
product ranges as well as the acquisition and conversion of existing steel
merchants. The retail areas of two of the existing stores are currently
increased with a minimum of 4500m2. The group has also identified six new sites
which potentially can increase retail space with approximately 25 000 m2 over
the next 12 to 18 months.
The directors are confident that Alert will achieve the profit forecast for the
year ending 30 June 2008 as set out in the prospectus.
SUBSEQUENT EVENTS
Shareholders are referred to the cautionary announcement dated 14 February 2008
and renewal thereof on 19 March 2008 in which shareholders were advised that
Alert has entered into negotiations, which if successfully concluded may have a
material effect on the price of the company`s securities. Accordingly,
shareholders are advised to exercise caution when dealing in the company`s
securities until a full announcement is made.
SHARE CAPITAL
In terms of the Steel Giant transaction 1 714 285 ordinary shares were issued at
175 cents per share on 25 February 2008 as part of the settlement to the Steel
Giant vendors.
DIVIDEND POLICY
In line with the group`s growth strategy, no dividend was declared for the
period.
BASIS OF PREPARATION
The interim results have been prepared in accordance with IAS 34 (Interim
Financial Reporting). The accounting policies used to prepare these interim
financial statements are consistent with those applied in the prior interim
period and at previous year-end and are in accordance with International
Financial Reporting Standards.
This announcement has been prepared in accordance with the Listings Requirements
of the JSE Limited and South African Companies Act.
STATEMENT ON GOING CONCERN
The financial statements have been prepared on the going-concern basis since the
directors have every reason to believe that the company has adequate resources
in place to continue in operation for the foreseeable future.
By order of the Board
31 March 2008
WF Schalekamp WW Mentz
Managing Director Financial Director
CORPORATE INFORMATION
Non executive directors: E Dube(Chairman), OV Jevon
Executive directors: WF Schalekamp, WW Mentz
Registration number: 2003/005144/06
Registered address: 12 Gompou Street, East Lynne, 0186
Postal address: PO Box 29607, Sunnyside, 0132
Company secretary: WW Mentz (CA(SA))
Telephone: (012) 800 0004
Facsimile: (012) 800 4661
Transfer secretaries: Computershare Investor Services 2004 (Pty) Limited
Designated Adviser: Vunani Corporate Finance
Date: 31/03/2008 14:52:01 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 ] | |||||||||||||
|
|||||||||||||
