|
AOO AOVP AON
AOO
AOO / AON /AOVP - African & Overseas Enterprises - Reviewed Results For The Year
Ended 30 June 2008
African & Overseas Enterprises Limited
(Registration number 1947/027461/06)
Share codes: AOO - AON - AOVP ISIN
Codes: ZAE000000485 - ZAE000009718 - ZAE000000493
REVIEWED RESULTS FOR THE YEAR ENDED 30 JUNE 2008
INCOME STATEMENT Consolidated (R`000)
2008 2007
(Reviewed) (Audited)
Revenue 465 557 397 486
Turnover 454 126 390 594
Cost of sales (246 895) (220 287)
Gross profit 207 231 170 307
Employment costs (64 962) (56 876)
Occupancy costs (40 901) (32 634)
Depreciation and amortisation (14 749) (13 945)
Other operating costs (53,857) (51,128)
Rental income 2 567 1 519
Royalties 944 839
Other operating income - 242
Operating profit 36 273 18 324
Dividends received 22 19
Interest received 7 926 4 273
Interest paid - (12)
Profit on disposal of associate 671 -
Share of losses of associated company (59) (348)
Profit before taxation 44 833 22 256
Taxation (7 025) (7 712)
Profit for the year 37 808 14 544
Profit attributable to:
Ordinary and `N` ordinary shareholders 21 102 7 644
Preference shareholders 87 87
Equity holders of the parent 21 189 7 731
Minority interest 16 619 6 813
37 808 14 544
Reconciliation of headline earnings
Attributable earnings 21 102 7 644
Profit on disposal of plant and equipment (72) -
Profit on disposal of associate (368) -
Headline earnings 20 662 7 644
Headline earnings per share (cents) 181,5 67,1
Earnings per share (cents) 185,3 67,1
Proposed dividend per share (cents) 25,0 14,0
Dividend cover (based on headline earnings) 7,3 4,8
Weighted average number of equity
shares on which earnings per share
is based (000) 11 387 11 387
Number of equity shares in issue (000) 11 387 11 387
BALANCE SHEET Consolidated (R`000)
2008 2007
(Reviewed) (Audited)
Assets
Non-current assets 56 153 54 571
Property, plant and equipment 40 630 39 962
Investment property 3 511 3 511
Investments (unlisted) 722 2 130
Deferred taxation 11 290 8 968
Current assets 185 660 143 586
Inventories 64 096 45 599
Trade and other receivables 22 343 19 612
Income tax receivable 10 77
Cash and cash equivalents 99 211 78 298
Total assets 241 813 198 157
Equity and liabilities
Capital and reserves 193 422 159 736
Share capital 1 200 1 200
Share premium 6 076 6 084
Other reserves 2 896 2 978
Distributable reserves 97 039 77 531
Outside shareholders` interest 86 211 71 943
Non-current liabilities 10 595 10 540
Post-retirement liability 4 277 6 685
Accrued operating lease liability 6 318 3 855
Current liabilities 37 796 27 881
Provisions 897 -
Trade and other payables 33 665 26 281
Income tax payable 3 234 1 600
Total equity and liabilities 241 813 198 157
ABRIDGED CASH FLOW STATEMENT
2008 2007
(Reviewed) (Audited)
Cash generated by operations 53 410 33 243
Working capital changes (16 269) (12 357)
Interest received 7 926 4 273
Interest paid - (12)
Taxation paid (7 646) (7 481)
Dividends received 22 19
Dividends paid (3 951) (3 934)
Net cash inflow from operations 33 492 13 751
Additions to property, plant & equipment (15 520) (10 638)
Proceeds on disposal of property, plant & equipment 280 105
Proceeds on disposal of investment in associate 2 676 -
Proceeds on delivery of shares by share trust (15) 864
Net cash outflows from investing activities (12 579) (9 669)
Net increase in cash 20 913 4 082
Cash at the beginning of the period 78 298 74 216
Cash at the end of the period 99 211 78 298
OTHER INFORMATION
Capital expenditure 15 520 10 639
Capital commitments
Authorised - not contracted for 19 818 8 782
Current ratio 4,9 5,1
Operating profit margin 8,0% 4,7%
SEGMENTAL REPORTING Consolidated (R`000)
2008 2007
(Reviewed) (Audited)
Turnover
Manufacturing 46 795 45 641
less: intersegment sales (8 172) (16,276)
External sales 38 623 29 365
Retail 415 503 361 229
Total 454 126 390 594
Operating profit/(loss)
Manufacturing 417 (866)
Retail 36 624 22 727
Property 1 350 313
Group services + (2 118) (3 850)
Total 36 273 18 324
Depreciation included in operating profit
Manufacturing 1 533 1 251
Retail 13 216 12 694
Total 14 749 13 945
Total segment assets
Manufacturing 19 906 22 054
Retail 173 029 130 619
Property 8 784 8 299
Group services 40 094 37 185
Total 241 813 198 157
Total segment liabilities
Manufacturing (7 483) (7 074)
Retail (36 329) (24 330)
Group services (4 579) (7 017)
Total (48 391) (38 421)
Capital expenditure
Manufacturing - 781
Retail 14 933 9 858
Property 587 -
Total 15 520 10 639
+ Group services include corporate costs.
STATEMENT OF CHANGES IN EQUITY Consolidated (R`000)
2008 2007
(Reviewed) (Audited)
Share capital 1 200 1 200
Share premium 6 076 6 084
Other reserves
Opening balance 2 978 2 642
Share-based payments 50 (67)
Fair value revaluation reserve 51 293
Foreign exchange translation (183) 110
Closing balance 2 896 2 978
Distributable reserves
Opening balance 77 531 71 481
Profit after taxation 21 189 7 731
Dividends (1 681) (1 681)
Closing balance 97 039 77 531
Minority interest
Opening balance 71 943 65 722
Profit after tax 16 619 6 813
Dividends (2 274) (2 253)
Shares issued - 1 397
Other (77) 264
Closing balance 86 211 71 943
Total capital and reserves 193 422 159 736
NOTES
1. Basis of preparation
These annual financial statements have been prepared in terms of the South
African Companies Act of 1973 (as amended), IFRS and IAS 34 Interim Financial
Reporting.
2. Accounting policies
The accounting policies applied are consistent with those applied in the
preparation of the group`s annual financial statements for the year ended 30
June 2007, except for the adoption of IFRS 7 Financial Instruments: Disclosure
that became effective during the current year and had no impact on the reported
results.
3. Sale of investment in associate
The group sold its 20.1% investment in Queenspark Australia Pty Limited during
this period. The profit on the realisation of this investment amounted to
R671,000.
4. Review by auditors
The financial information has been reviewed by KPMG Inc., whose unqualified
review opinion is available for inspection at the company`s registered office.
It is anticipated that an unqualified audit opinion will be issued once the
detailed financial statements have been finalised.
The annual report containing a detailed review of the operations of the company
together with the audited financial statements will be posted to shareholders
towards the end of September 2008.
COMMENTARY
The principal operating subsidiary Rex Trueform Clothing Company Limited
reports as follows:
"The board is pleased to advise that the substantial improvement in the group`s
performance which was achieved during the first half-year was maintained during
the second half resulting in record levels of turnover and profit for the year.
Revenue increased by 17,2% to R465,5 million and the gross margin improved
from 43,6% to 45,6%. All segments of the group produced better results
aggregating in an after-tax profit of R38,8 million which is an improvement
of 154,6% on last year.
Earnings were further boosted by the curtailment of provisions, higher interest
earnings, profit on the realisation of our interest in the Australian associate
and a lower taxation charge. The latter is the result of an increase in the
deferred tax asset during the year, due to previously assessed losses which are
now expected to be utilized in full in future years.
Headline earnings improved by 147,7% to 186,5 cents per share. Earnings have
increased by 152,8% to 190,4 cents per share.
Retail
Queenspark`s turnover increased by 15,0% to R415,5 million and operating
profit increased by 61,1% to R36,6 million notwithstanding the challenging
trading conditions which prevailed for most of the year. Turnover was
particularly pleasing in the second half where an increase of 17,2% was
achieved over last year following the first half improvement of 12,9%.
Same-store growth in turnover was 8,2% with average product inflation at 8,4%.
Seven new stores were opened during the year and there were no closures. The new
stores added 1,970m2 of trading space, an increase of 13%.
Manufacturing
Clothing manufacturing activities remain centered at the Atlantis factory.
Manufacturing remains difficult and it is not expected that a profit will be
generated in the coming year.
Prospects
Queenspark`s Spring/Summer range, presently in stores has been well received by
customers. The economic cycle will inevitably continue to slow down and the
remainder of the current period is likely to be challenging with high interest
rates, increased energy costs and food inflation having a dampening effect on
consumer spending.
We continue to invest selectively in new stores and take a conservative view of
growth prospects for the 2009 financial year."
Dividend
The board has decided to recommend to shareholders that the dividend on the
ordinary and "N" ordinary shares be increased to 25 cents per share.
In terms of the Articles of Association, the 6% cumulative participating
preference shares carry the right to receive an additional 0,5% dividend for
every completed 1,25% dividend in excess of 2,5% declared on ordinary shares
in any one financial year. Preference shareholders will therefore be entitled
to an extra dividend of 19% (38 cents per share) which will be included in the
half-yearly payment in December 2008.
An announcement detailing the terms of the dividend declaration will be made
immediately following the annual general meeting to be held on 12 November 2008.
Signed on behalf of the Board:
ML Krawitz (Chairman)
PE Shub (Chief Executive Officer)
Cape Town
September 5, 2008
Transfer Secretaries
Computershare Investor Services (Pty) Ltd
70 Marshall Street
Johannesburg 2001
Sponsor
Java Capital (Pty) Ltd
Registered office
Rex Buildings
263 Victoria Road
Salt River, Cape Town, 7925
Directors: ML Krawitz (Chairman), PE Shub (Chief Executive Officer)
(alt ML Krawitz), CEA Radowsky, JC O`Brien
Secretary: AA Hodgkinson
Date: 05/09/2008 15:59:15 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 ] | |||||||||||||
|
|||||||||||||
