| Wed 23 Apr 2008, 12:47 | | ELI - Ellies Holdings Limited - Reviewed interim r |
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ELI
ELI
ELI - Ellies Holdings Limited - Reviewed interim results for the 12 months ended
29 February 2008 (10 month trading period)
Ellies Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2007/007084/06)
JSE code: ELI ISIN: ZAE000103081
("ELLIES" or "the Group")
REVIEWED INTERIM RESULTS FOR THE 12 MONTHS ENDED 29 FEBRUARY 2008
(10 month trading period)
HIGHLIGHTS
- GROWTH AGAINST PROFIT FORECAST
- Revenue up 12.5% on forecast
- NPAT up 27.4% on forecast
- EPS of 25.55 cents (on 10 months trading)
- GROWTH ON THE PRIOR YEAR PRO-FORMA FINANCIALS
- Revenue up 24.9% on prior period
- NPAT up 59.0% on prior period
- BEE Shareholding in excess of 10.8%
ABRIDGED CONSOLIDATED INCOME STATEMENT
Reviewed 12 Pro forma Change Growth on
months Profit On 28
ended 29 Forecast Forecas February
February for the 12 t 2007 pro
2008 (10 months % forma
months ended 29 informati
trading) February on
R 2008 (10 %
months
trading)*
see note 1
below
R
Revenue 575,148,522 511,055,625 12.54 24.87
Cost of good sold (351,332,95 (303,739,55
8) 1)
Gross profit 223,815,564 207,316,074
Administration and other (149,832,02 (150,371,86
expenses 2) 9)
Profit from operations 73,983,542 56,944,205 29.92 67.42
Net financing costs (5,806,199) (2,911,388)
Profit before taxation 68,177,343 54,032,817
Taxation (19,281,989 (15,649,668
) )
Profit for the period (10 48,895,354 38,383,149 27.39 59.15
months trading)
Weighted average number of 191,395,039 191,395,039
shares in issue
Reconciliation of headline
earnings to earning per share
Profit for the period (10 48,895,354 38,383,149
months trading)
Less profit on sale of fixed (77,000) -
assets
Headline earnings 48,818,354 38,383,149
Earnings per share (cents) 25.55 20.05
Headline earning per share 25.51 20.05
(cents)
Fully diluted earnings per 25.35 20.05
share
Note 1:
- Profit forecast for the 12 months ended 30 April 2008 as per the
prospectus includes the trading results of Botswana. For comparative
purposes, Botswana has been excluded in terms of the attached details
below.
- The weighted average number of shares used in the calculation of
earnings and headline earnings per share is 191,395,039 for comparative
purposes.
ABRIDGED CONSOLIDATED BALANCE SHEET as at 29
February 2008
R
Non-current assets 73,997,653
Deferred Taxation 1,096,272
Goodwill 47,133,554
Property, plant and equipment 25,767,827
Current assets 253,391,534
Cash and cash equivalents 8,669,989
Inventories 128,822,529
Trade and other receivables 115,899,016
Total assets 327,389,187
Equity and liabilities
Capital and reserves 224,798,436
Share Capital 2,335
Share Premium 353,813,259
Non Distributable Reserve (177,912,512)
Accumulated profit 48,895,354
Non-current liabilities
Interest-bearing liabilities 20,202,728
Current liabilities 82,388,023
Bank overdraft 9,170,945
Current portion of non-current 4,869,490
liabilities
Taxation 18,538,144
Trade and other payables 49,809,444
Total equity and liabilities 327,389,187
NAV per Share (Cents) 96.26
Tangible NAV per Share(Cents) 76.08
ABRIDGED CONSOLIDATED CASHFLOW 12 months
ended 29
February 2008
(10 months
trading)
R
Cash generated from operations (R7,209,920)
Cash flows from investing activities (R18,896,496)
Cash flows from financing activities R55,389,475
Increase/(decrease) in cash and cash R29,283,059
equivalents
STATEMENTS OF CHANGES IN EQUITY
12 months
ended 29
February 2008
R
Share capital and share premium 353,815,594
Issued during period 360,426,119
Share issue expenses written off (6,610,525)
Accumulated profits 48,895,354
Net profit for the period 48,895,354
Non distributable reserves (177,912,512)
Business purchased under common control (177,912,512)
Total capital and reserves 224,798,436
INTRODUCTION
Ellies listed on the Alternative Exchange of the JSE Limited ("JSE") on 5
September 2007. Before listing Ellies changed its financial year end from
February to April. As a result its current financial year will be 14 months to
30 April 2008.
Pursuant to a restructure before listing, Ellies acquired its operating
subsidiaries on 1 May 2007. As a result, the 12 month interim period to 29
February 2008 incorporates ten months of trading results and the 14 month period
to the financial year end of 30 April 2008 will incorporate 12 months of trading
results.
In terms of the JSE Listings Requirements, as Ellies` current financial year is
longer than 12 months, it is required to publish a second set of interim results
for the 10 trading months (12 fiscal months) ended 29 February 2008.
PROFILE
Ellies is the largest manufacturer, wholesaler and distributor in Southern
Africa of television reception-related products and is a market leader in
domestic electronic and industrial audio products. It is also a significant
importer of products associated with its business. The group has a product range
of over 10 000, from terrestrial antennae and satellite equipment to television,
audio, domestic electrical and telephone accessories. Recently, Ellies has moved
into Power Generation products including generators and inverters. The group
controls the packaging, marketing, sales and distribution of both its own
manufactured and its imported products.
Ellies has thirteen operations:
Manufacturing & Engineering
- Aluminium & Plastics Manufacturing
- Electronics Manufacturing
- Light Metal Engineering
Manufacture, Import and Distribution Of:
- Terrestrial Television Reception Products
- Satellite Television Reception Products
- Electrical & Surge Safe
- Audio Equipment & Accessories
- Corporate Services
- Elsat Full Maintenance Finance and Rentals
- Packaging & Marketing
- Sales & Merchandising
- Distribution/Logistics
Import, Distribution and Installation Of
- 1 kva to 500 kva Generators (Petrol and Diesel)
- 120w - 10000w Power Inverters
Positional and operational
Ellies operations are geographically situated to service the Johannesburg,
Pretoria, Namibia, Botswana, Nelspruit, Polokwane, Bloemfontein, Upington, East
London, Port Elizabeth and Cape Town regions, where the principal
infrastructural and industrial activities of the Group as a whole are
facilitated across all its products and service offerings for both regional and
national customer base.
FINACIAL RESULTS AND PROSPECTS
Ellies has maintained growth in revenue and profitability and is on track to
exceed its published forecast for the current financial year. This is
attributable to organic growth only.
Growth in revenue to R575.15 Million for the 10 trading Months, May to February,
has been driven by demand in the retail and DIY sectors, the increase in
availability of satellite facilities to the lower LSM market and to some degree
the demand for power generation and related products. Revenue growth, with
enhanced productivity and operating efficiencies, has impacted positively on
earnings.
Net profit after taxation for the period is R48.9 million against a forecast of
R38.38 million. Earnings per share are 25.55 cents against a forecast 20.05
cents.
Demand for power generation products impacted on Ellies revenue and profit
growth to some extent in the latter 4 months of the reporting period. This
demand is expected to continue. Many of the Group`s products continue to
increase their market share, with particular reference to the electrical Surge
range and consumer lighting.
Ellies has completed its Electro-plating plant, which should be in full
production by the end of April. This plant will add further efficiencies and
cost savings to the Engineering Division.
BOTSWANA
The Botswana Companies trading as Ellies and Elsat were consolidated into the
Profit forecast as published in the Prospectus. At this stage, finalization from
the Reserve Bank is still awaited, with completion imminent. As IFRS3 requires
that the results of Botswana be excluded until all conditions to the agreement
have been fulfilled. Accordingly, the results of Botswana have been removed from
Pro-forma historic information, profit forecast and current 10 months trading to
29 February 2008, and as such comparative information has been adjusted
accordingly.
BASIS OF PREPARATION AND REVIEW OPINION
The interim results have been prepared in accordance with IAS 34 (Interim
Financial Reporting). The accounting policies applied in preparing these
interim financial statements are in accordance with International Financial
Reporting Standards (IFRS). These financial results have been reviewed by the
group`s auditors, PKF (Jhb) Inc., and is consistent with those applied in the
prior interim reporting period. The unqualified Review Report is available for
inspection at the company`s registered office.
PROSPECTS
The board of directors remains optimistic with regard to the group`s continued
prospects with the expected organic growth underpinned by the continued levels
of activity and an enlarged power related product range and consumer base.
Growth will continue to be achieved through motivated and professional sales and
service teams, on-going efficiencies in production and diversification of
product and customer base.
The Ellies Corporate division continues to meet expectations. It has added Power
Generation offerings to its already impressive range of quality products and is
the catalyst for the growth of the Ellies / Elast`s Full Maintenance and Finance
Rental division.
Looking to 2008/2009, the directors see no reason not to expect similar organic
growth. In addition, as referred to below, the group has announced details of
acquisitive growth.
DIVIDEND POLICY
The dividend policy will be reviewed periodically taking into account prevailing
circumstances and future cash requirements. Initially, all earnings generated
by the company will be utilized to fund future growth. Accordingly, no dividend
has been declared for the interim period.
AQUSITIONS
The acquisitions of Megatron and Reeflite have not been accounted for in this
set of interim results as they are still subject to the fulfilment of certain
conditions. We anticipate the effective date of these two deals will be
finalized early in the coming financial year.
APPRECIATION
Once again we also thank our staff, customers, business partners, advisors,
suppliers and most importantly our shareholders for their support and faith in
the group.
By order of the board
Elliot R. Salkow Wayne Samson
Executive Chairman Chief Executive Officer
Michael Levitt
Chief Financial Officer
23 April 2008
Business address:
94 Eloff Street Ext, Village Deep, Johannesburg, South Africa
Business Postal Address:
P O Box 57076, Springfield 2137, South Africa.
Visit our website: www.elliesholdings.com
Company Secretary:
Probity Business Services (Proprietary) Limited.
Transfer Secretaries:
Link Market Services South Africa (Pty) Ltd
Designated advisor:
Java Capital (Proprietary) Limited
Date: 23/04/2008 12:47:01 Produced by the JSE SENS Department.
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