| Thu 11 Sep 2008, 16:20 | | WTL - William Tell Holdings Limited - Audited results for the year ended 30 June |
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WTL
WTL
WTL - William Tell Holdings Limited - Audited results for the year ended 30 June
2008
William Tell Holdings Limited
(Registration number 2004/030045/06)
Share code: WTL ISIN: ZAE000098133
www.williamtellholdings.co.za
Audited results for the year ended 30 June 2008
11% increase in net asset value per share
Headline earnings down 13% in difficult trading conditions
R120 million invested in property, plant and equipment
New chipboard plant at Chamdor substantially completed
Commentary
Basis of Preparation
The summarised annual financial statements have been prepared in terms of
International Financial Reporting Standards and in compliance with IAS 34:
Interim Reporting, the Companies Act and the JSE Listing Requirements.
The accounting policies used in the preparation of these annual financial
statements are consistent with those applied in the annual financial
statements for the year ended 30 June 2007.
Audit Opinion
The results for the year ended 30 June 2008 have been audited by the group`s
auditors, BDO Spencer Steward (Jhb) Inc, and the unqualified audit report is
available for inspection at the company`s registered office.
Nature of Business
William Tell (WTL) is a focused manufacturer of wood-based panels (WBP). The
group produces particleboard from wood waste, adds value by applying melamine
surfaces and further adds value by producing systems and components for the
broader building and related industries. Products are marketed under the Evopan
and the William Tell brand names. The client base ranges from individual
contractors to large businesses in the built-in furniture, office furniture,
shop fitting, exhibition, case goods, wholesale, merchandising, retailing and
related industries in Southern Africa.
Operational Review
The WBP industry in South Africa and worldwide experienced a sudden slowdown in
housing and household markets from late 2007. This has impacted negatively on
WTL`s revenue which is 6.8% lower than the previous year. Rising interest rates
and inflationary pressures have severely impacted on consumer disposable income,
reducing the demand for all durable goods.
The increase in the price of oil and other commodities has impacted negatively
on margins from late 2007 resulting in a decline in gross profit of 14.5%.
Producers have not been able to pass on these increases as yet, though there
are indications that prices are firming up. The sharp increase in administrative
and other operating expenses was caused mainly by pressures in the retention
of staff and skills, expenses relating to acquisitions and the JSE listing.
The increase in property, plant and equipment of R120 million was mainly due
to the development of WTL`s second chipboard facility which was funded by own
cash resources and interest-bearing debt.
In February 2008 WTL acquired ELB Ultrabord (Pty) Ltd which produces thin board.
This continuous thin board production line will be modernised to produce wood
fibre board. The plant will make a significant contribution once commissioned.
The commissioning of the new chipboard plant at Chamdor, originally planned for
July this year has been extended to late 2008 due to bureaucratic delays and to
accommodate the installation of an energy saving biomass burner and an increase
in wood fibre production capacity.
Prospects
The Chamdor plant will quadruple our particleboard production capacity, ensuring
self sufficiency and significant growth of existing and new product lines.
Approximately R30 million will be spent on the completion of the plant in 2009
which will be funded from existing cash resources, arranged banking facilities
and positive cash flows being generated.
Self sufficiency and competitive production costs from our new plant will allow
WTL to improve market share in the longer term.
Although the supply/demand balance in the industry has improved in the last few
months, we do not expect significant increases in demand in the short term. We
are aware of the challenges and opportunities that lie ahead.
Dividends
An interim dividend of 5 cents per share was declared and paid in April 2008.
In light of the current market conditions, the directors regarded it as prudent
not to declare a final dividend.
Post balance sheet events
There are no events after balance sheet date until the date of this release that
require additional disclosure.
For and on behalf of the board
A. van der Merwe Chairman
B.P. Lok Chief Executive Officer
11 September 2008
Directors: B.P. Lok W.H. Lok N.M. de Winnaar R.E.Watt A. vd Merwe* M.G.
Meehan*
Resigned as at 31 July 2008 (relocated to Australia)
* Non-executive
SUMMARISED CONSOLIDATED INCOME STATEMENTS
June 2008 June 2007
R000 R000
Revenue 164 166 176 153
Cost of sales (105 422) (107 426)
Gross profit 58 744 68 727
Other income 1 501 533
Administrative and other operating expenses (26 520) (20 474)
Operating profit 33 725 48 786
Investment income 9 099 1 059
Foreign exchange loss (1 175) (126)
Interest paid (4 811) (3 957)
Profit before taxation 36 838 45 762
Taxation (9 553) (14 466)
Profit for the year attributable to ordinary 27 285 31 296
shareholders
Depreciation and amortisation for the year 5 100 3 746
Basic earnings per share (cents) 21.8 31.3
Headline earnings per share (cents) 21.7 31.3
Dividends per share (cents) 5.0 11.3
Reconciliation of basic earnings to headline earnings
Earnings 27 285 31 296
Adjusted by profit/(loss) on sale of property, plant (116) 5
and equipment
Headline earnings 27 169 31 301
Reconciliation between weighted average number of
shares and diluted average number of shares:
Number of ordinary shares in issue (`000) 125 000 125 000
Weighted average number of shares (`000) 125 000 100 000
There were no dilutive potential ordinary shares requiring diluted earnings per
share to be reported.
SUMMARISED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
June 2008 June 2007
R000 R000
Share Capital
Balance at the beginning of the year 1 250 4
Shares issued during the year - 1 246
Balance at the end of the year 1 250 1 250
Share premium
Balance at the beginning of the year 179 758 -
Share premium on issues for the year - 183 966
Share issue expenses (493) (4 208)
Balance at the end of the year 179 265 179 758
Accumulated profit and other reserves
Balance at the beginning of the year 4 407 52 917
Profit for the year 27 285 31 296
IFRS3 adjustment on group formation - (68 506)
Dividend paid during the year (6 250) (11 300)
25 442 4 407
SUMMARISED CONSOLIDATED BALANCE SHEETS
June 2008 June 2007
R000 R000
Assets
Non-current assets 250 532 130 340
Property, plant and equipment 250 453 130 286
Intangible assets 79 54
Current assets 95 537 174 298
Inventories 26 941 17 094
Trade and other receivables 18 701 24 326
Current taxation receivable 99 24
Cash and cash equivalents 49 796 132 854
346 069 304 638
Equity & Liabilities
Capital & reserves 205 957 185 415
Share capital 1 250 1 250
Share premium 179 265 179 758
Accumulated profit 25 442 4 407
Non-current liabilities 108 069 64 448
Interest-bearing borrowings 85 722 43 456
Deferred taxation 19 149 17 558
Deferred income 3 198 3 434
Current liabilities 32 043 54 774
Trade and other payables 21 164 41 244
Interest-bearing borrowings 9 502 12 415
Provisions 974 1 114
Current taxation payable 403 -
Bank overdraft - 1
346 069 304 638
Net asset value per share (cents) 164.8 148.3
Capital expenditure for the year (`000) 118 949 36 442
SUMMARISED CONSOLIDATED CASH FLOW STATEMENTS
June 2008 June 2007
R000 R000
Net cash generated by operations 31 123 59 860
Net finance income/(costs) 3 113 (3 024)
Dividends paid (6 250) (11 300)
Taxation paid (7 634) (15 495)
Cash flow from operating activities 20 352 30 041
Cash flow from investing activities (125 269) (36 146)
Cash flow from financing activities 21 860 127 678
Movement in cash & cash equivalents (83 057) 121 573
Cash & cash equivalents at the beginning of the year 132 853 11 280
Cash & cash equivalents at the end of the year 49 796 132 853
SUMMARISED CONSOLIDATED SEGMENT REPORT
No segmental reporting is provided as the group`s operations are in the wood-
based panels industry with similar risks and returns and the company operates
predominantly in Southern Africa.
Date: 11/09/2008 16:20:01 Produced by the JSE SENS Department.
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