| Tue 12 Aug 2008, 15:06 | | BCH - Best Cut Limited - Revised unaudited condensed interim financial |
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BCH
BCH
BCH - Best Cut Limited - Revised unaudited condensed interim financial
results for the 6 months ended 31 December 2007
BEST CUT LIMITED
(previously Integrear Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1989/001319/06)
JSE code: BCH ISIN: ZAE000105391
("Best Cut" or "the company")
REVISED UNAUDITED CONDENSED INTERIM FINANCIAL RESULTS
FOR THE 6 MONTHS ENDED 31 DECEMBER 2007
Best Cut released its unaudited results for the 6 months ended 31 December
2007 on SENS on 31 March 2008. The revised interim results for the 6 months
ended 31 December 2007 ("interim results") released on SENS today is at the
insistence of the JSE Limited ("JSE") to re-issue the interim results in
compliance with the requirements of IFRS.
The areas that have changed are:
The comparative figures:
The comparative figures for December 2006 had not been included in the
results released on SENS 31 March 2008.
The comparative figures now presented are the unaudited results of the cash
shell Integrear Limited for 6 months ended 31 December 2006 and audited June
2007 results.
The cash flow statement:
The restatement of the cash flow in the interim results stems mainly from
the disclosure requirements for business combinations, to account for the
acquisition of the Best Cut Group. The payment for the acquisition was not
entirely for cash as presented in the cash flow statement released on 31
March 2008. The adjustments are reflected below.
Weighted number of shares and the earnings and headline earnings per share:
The weighted number of shares in issue have been adjusted for the share
split and the shares issued as a result of the acquisition of the Best Cut
Group.
The income statement and balance sheet of Best Cut for the interim results
have not changed from those previously published.
Set out below are the details of the various line items of the interim
results affected by the required restatement.
Before
R 000 After
R 000
Income Statement
Weighted average number of 127 356 108 678
shares in issue `000(1)
Basic and diluted earnings per 3.34 3.91
share (cents)
Headline earnings per share 3.34 3.91
(cents)
Cash flow statement
Cash receipts from customers (2) 17 982 31 478
Cash paid to suppliers and (3 923) (22 380)
employees(3)
Cash invested in stock(4) (5 497) -
Additions to fixed assets(5) (34 427) (235)
Issue of shares(6) 29 885 -
Listing costs(7) (6 975) -
Increase/(decrease) in 5 535 (6 280)
borrowings(8)
Notes:
The number of shares in issue in the "Before" column is the total number of
shares. The number of shares in the "After" column is the weighted average
number of shares in issue, taking into account the new issue of shares in
respect of the acquisition of the Best Cut Group from the 1 October 2007.
Accounts receivable of R13,495 million acquired from the Best Cut Group were
included in the figures presented in the "Before" column.
Accounts payable of R12,808 million and stock of R4,321 million acquired
from the Best Cut Group were included in the figures presented in the
"Before" column. An amount of R4,475 million relating to listing expenses
has been excluded in the figures presented in the "After" column. This
amount was written off against share premium.
Stock of R4,321 million acquired from the Best Cut Group was included in the
figures presented in the "Before" column, and in the "After" column, the
stock so acquired has been included in the line Cash paid to suppliers and
employees.
Property,plant and equipment of R34,193 million acquired from the Best Cut
Group was erroneously included in the figures presented in the "Before"
column.
The amount of R29,885 million representing the new share issue was
erroneously included in the figures in the "Before" column.
Share issue expenses of R6,975 million was erroneously included in the
figures in the "Before" column.
The movement in borrowings presented in the "Before" column, is merely the
movement in the borrowings between the two balance sheets, and did not take
non-cash movements into account. The figure in the "After" column has
eliminated non-cash movements.
The revised condensed unaudited results for the 6 months ended 31 December
2007 as presented below consolidates the accounts of the Intergrear Limited
cash shell and only three trading months since 1 October 2007 of the Best
Cut businesses acquired as set out in the circular to Integrear Limited
shareholders and the revised listing particulars dated 4 October 2007.
REVISED CONDENSED
CONSOLIDATED BALANCE SHEET
Unaudited Unaudited Audited
December December June
2007 2006 2007
R`000 R`000 R`000
ASSETS
Non current assets 34 032 - -
Property,plant and equipment 34 032 - -
Current assets 30 601 1 506 674
Trade and other receivables 21 807 310 244
Bank balances and cash 3 297 1 196 429
Inventory 5 497 - -
Total assets 64 633 1 506 673
EQUITY AND LIABILITIES
Capital and reserves 26 467 (174) (690)
Share capital 178 126 126
Share premium 27 594 4 736 4 736
Non-distributable reserves 48 48 48
Capital redemption fund 828 828 828
Accumulated (loss) (2 181) (5 912) (6 428)
Non-current liabilities 6 978 1 000 1 073
Long-term borrowings: Interest 6 608 1 000 1 073
bearing
Deferred tax 370 - -
Current liabilities 31 188 680 290
Trade and other payables 29 535 679 279
Bank overdraft 371 - 11
Taxation payable 1 282 1 -
TOTAL EQUITY AND LIABILITIES 64 633 1 506 673
REVISED CONDENSED
CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited Audited
December December June
2007 2006 2007
6 months 6 months 12 months
R`000 R`000 R`000
Revenue 39 427 - -
Cost of sales (24 566) - -
Gross profit 14 861 - -
Other income 119 40 -
Operating expenses (8 611) (463) (940)
Profit from operations 6 369 (423) (940)
Profit from loan write-off - - 40
Depreciation (395) - -
Finance costs (95) (1) (73)
Income from investments 21 23 57
Profit/(loss) before tax 5 900 (401) (916)
Income tax (1 652) - -
Net profit/(loss) for the 4 248 (401) (916)
period
Weighted average number of
shares in issue (000) 108 678 90 000 90 000
(adjusted for the share split
and as though the new
structure was effective on the
1st of October 2007)
Basic and diluted earnings per 3,91 (0,45) (1,02)
share (cents)
Headline earnings per share 3,91 (0,47) (1,02)
(cents)
REVISED CONDENSED
CONSOLIDATED CASHFLOW STATEMENT
Unaudited Unaudited Audited
December December June
2007 2007 2006
6 months 6 months 12 months
R`000 R`000 R`000
OPERATING ACTIVITIES
Cash receipts from customers 31 478 - -
Cash paid to suppliers and (22 380) (423) (765)
employees
Cash generated from/(used in)
operations 9 098 (423) (765)
Interest paid (95) (1) (73)
Interest received 21 23 57
Taxation paid (1) - -
Net cash from/(used in)
operating activities 9 023 (401) (781)
INVESTING ACTIVITIES
Increase in loans receivable - 398 -
Additions to fixed assets (235) - -
Net cash (used in)/from
investing activities (235) 398 -
FINANCING ACTIVITIES
Repayment of share premium - (3 450) (3 450)
(Decrease)/Increase in (6 280) 1 000 1 000
borrowings
Net cash utilized in financing (6 280) (2 450) (2 450)
activities
Net Increase/(decrease) in 2 508 (2 453) (3 231)
cash and cash equivalents
Cash and cash equivalents at 418 3 649 3 649
beginning of the period
Cash and cash equivalents at 2 926 1 196 418
end of the period
REVISED CONDENSED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Non-
Share Share Distributable
Capital Premium reserve
R`000 R`000 R`000
Balance at 31 December 2006 126 4736 828
Net profit for the period - - -
Balance at 30 June 2007 126 4 736 828
Shares issued 52 29 833 -
Listing costs - (6 975) -
Net profit for the period - - -
Balance as at 31 December 2007 178 27 594 828
Capital Accumulated
Redemption (loss)/
Fund profit Total
R`000 R`000 R`000
Balance at 31 December 2006 48 (5 912) (174)
Net profit for the period - (516) (516)
Balance at 30 June 2007 48 (6 428) (690)
Shares issued - - 29 885
Listing costs - - (6 975)
Net profit for the period - 4 247 4 247
Balance as at 31 December
2007 48 (2 181) 26 467
Shareholders are advised that the comparatives presented are the unaudited
31 December 2006 figures for Integrear Limited and the audited figures for
June 2007. The comparative figures previously presented were the Integrear
Limited audited figures for June 2007. The comparatives presented do not
facilitate a reasonable comparison to the 31 December 2007 results which
include the businesses of the Best Cut Group.
BASIS OF PREPARATION OF THE UNAUDITED RESULTS
The condensed interim financial statements have been prepared in accordance
with International Financial Reporting Standards (IFRS) and the requirements
of the South African Companies Act. This report has been prepared in terms
of IAS 34 - "Interim Financial Reporting".
The accounting policies used to prepare this interim financial report are
consistent with those applied in the circular to share holders issued on 4
October 2007 and the revised listing particulars.
CORPORATE GOVERNANCE
The Board of Directors of Best Cut is committed to the promotion of good
Corporate Governance and the doctrine of transparency as set out in the King
II report. To ensure an effective corporate governance policy and framework
and in the interest of transparency, the Board of Directors of Best Cut
initiated the implementation of the recommendations of the King II report.
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.
For and on behalf of the Board
Thomas Hill
Chief Executive Officer
12 August 2008
CORPORATE INFORMATION
Non executive directors: M Tshishonga (Chairperson), N Serfontein.
Executive directors: Thomas Hill(CEO), AH Steenkamp
Registration number: 1989/001319/06
Registered address: 24A 18th Street, Menlo Park 0081
Postal address: PO Box 397, Menlyn, 0063
Company secretary: Morestat Corporate Services (Pty) Ltd
Transfer secretaries: Computershare Investor Services 2004 (Pty) Limited
Auditors: Sizwe Ntsaluba VSP
Sponsor: Vunani Corporate Finance
Date: 12/08/2008 15:06:01 Produced by the JSE SENS Department.
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