|
ACE
ACE
ACE - Accentuate Limited - Audited Results For The Year Ended 30 June 2008
And Dividend Declaration
Accentuate Limited (Previously known as Safic Holdings Limited)
(Incorporated in the Republic of South Africa)
(Registration Number: 2004/029691/06)
Share Code: ACE
ISIN Code: ZAE000115986
("Accentuate" or "the group")
Audited Results For The Year Ended 30 June 2008 and dividend declaration
HIGHLIGHTS
- Revenue up 23%
- EBITDA up 41%
- PBIT up 41%
- Earnings up 55%
- Earnings per share up 23%
- Headline earnings per share up 18%
- Maiden dividend of 4 cents per share
Consolidated balance sheet
30 June 2008 30 June 2007
Audited Audited
R`000 R`000
Assets
Property, plant and equipment 39 143 24 376
Goodwill 91 791 31 232
Intangible Assets 1 435 728
Other financial assets - 480
Deferred tax 2 731 427
135 100 57 243
Current Assets
Inventories 50 118 34 665
Trade and other Receivables 45 817 29 943
Cash and cash equivalents 11 660 10 858
107 595 75 466
Total assets 242 695 132 709
Equity and liabilities
Share capital 122 542 73 754
Reserves 11 186 2 482
Retained income 27 899 10 873
Minority interest 13 13
Capital and reserves 161 640 87 122
Liabilities
Non-current liabilities
Loans from shareholders - 279
Other financial liabilities 4 110 3 729
Deferred tax 3 509 2 106
7 619 6 114
Current liabilities
Other financial liabilities 217 710
Current tax payable 7 542 2 906
Operating lease liability 477 212
Trade and other payables 48 974 32 424
Provisions 1 046 2 463
Shareholders loans 50 738
Bank overdraft 15 130 20
73 436 39 473
Total equity and liabilities 242 695 132 709
Number of shares in issue 105 408 119 75 186 521
Net asset value per share (cents) 153 116
Tangible net asset value per share 65 73
(cents)
Consolidated income statement
Year ended Year ended
30 June 2008 30 June 2007
Audited Audited
R`000 R`000
Revenue 257 767 210 199
Gross profit 139 136 114 049
Other income 2 752 1 257
Operating costs (116 796) (97 471)
Earnings before interest, 25 092 17 835
tax, depreciation and
amortization
Depreciation and amortization (4 021) (2 838)
Profit before interest and 21 071 14 997
taxation
Net interest paid (1 146) (410)
Profit before taxation 19 925 14 587
Taxation (3 215) (3 832)
Profit for the year 16 710 10 755
Minority interest (loss) - (49)
Net profit for the year 16 710 10 804
Reconciliation of headline
earnings
Profit attributable to 16 710 10 804
ordinary shareholders
Adjusted for profit on (266) 337
disposal of property, plant
and equipment
Fairvalue adjustment 319
Loss on sale of subsidiary 558 -
Headline earnings 17 002 11 460
attributable to ordinary
shareholders
Weighted average number of 86 806 290 69 186 521
shares in issue
Basic earnings per share 19.25 15.62
(cents)
Headline earnings per share 19.59 16.56
(cents)
Consolidated cash flow statement
Year ended Year ended
30 June 2008 30 June 2007
Audited Audited
R`000 R`000
Cash flows from operating 14 915 10 814
activities
Cash generated from 21 716 14 638
operations
Interest received 343 544
Interest paid (1 146) (954)
Taxation paid (5 998) (1 981)
Expenses recognised directly (1 433)
in equity
Cash flows from investing (37 135) (5 286)
activities
Expenditure to maintain (5 635) (5 286)
operating activities
Acquisition of property, (6 264) ( 8 111)
plant and equipment
Proceeds on disposal of 1 124
property plant and equipment 476
Purchase of intangible assets - (236)
Business combinations - 1 787
Sale of financial assets 1 217 150
Disposal of subsidiary (208) -
Purchase of intangible asset (856)
Expenditure for expansion (31 500) -
Subsidiaries acquired (31 500) -
Cash flows from financing 7 916 5 310
activities
Loans raised -
Share capital 9 277 15 000
Movement in long term (1 132) (7 901)
liability
Shareholder`s loans (repaid) (229) (1 789)
/ raised
Cash flows for the year (14 304) 10 838
Cash and cash equivalents at 10 838 -
beginning of year
Cash and cash equivalents at (3 466) 10 838
end of year
Consolidated statement of changes of equity
For the year ended 30 June 2008
Share Share Total Reserves Revalu- Retained
capital premium share for own ation income
capital shares / reserve
R`000 R`000 R`000 Share
repurchase
reserve
Balance at 1 73 753 73 754 319 2 163 10 873
1 July 2007
Changes in
equity
Fair value 10 698
gains: Land
and
buildings
Revaluation (315) 315
surplus
recognised
directly to
retained
income
Deferred (1 498)
tax on
revaluation
surplus
Net income 8 885 315
(expenses
recognized
directly in
equity
Profit for 16 710
the year
Total 8 885 17 025
recognized
income and
expenses
for the
year
Issue of 52 672 52 672
shares
Purchase of (3 884) (3 884)
own /
treasury
shares
Business (180)
combination
s
Balances at 1 122 541 122 542 139 11 047 27 899
30 June
2008
Consolidated statement of changes of equity
For the year ended 30 June 2008
(continue)
Total Minority Total equity
attributable interest
to equity
holders of
the group /
company
Balance at 1 87 109 13 87 122
July 2007
Changes in
equity
Fair value 10 698 10 698
gains: Land
and buildings
Revaluation - -
surplus
recognised
directly to
retained
income
Deferred tax (1 498) (1 498)
on revaluation
surplus
Net income 9 200 9 200
(expenses
recognized
directly in
equity
Profit for the 16 710 16 710
year
Total 25 910 25 910
recognized
income and
expenses for
the year
Issue of 52 672 52 672
shares
Purchase of (3 884) (3 884)
own / treasury
shares
Business (180) (180)
combinations
Balances at 30 161 627 13 161 640
June 2008
Acquisition of businesses.
Fair value of assets acquired
Property, plant and equipment 1 734
Intangible assets (281)
Goodwill 61 542
Inventories 3 700
Trade and other receivables 13 962
Trade and other payables (6 194)
Tax assets / liabilities (3 453)
Cash 4 531
75 541
Consideration paid
Cash (36 031)
Equity - 20 633 507 ordinary
shares in Accentuate Limited (39 510)
(75 541)
Net cash outflow on
acquisition
Cash consideration paid (36 031)
Cash acquired 4 531
(31 500)
Segment Report
For the year ended 30 June 2008
R`000 Environmental Infrastructural Elimination Combination
Solutions Development
Revenue 73 381 191 592 (7 206) 257 767
Operating (175) 21 245 21 071
profit
Finance (653) (493) (1 146)
costs
Income taxes (5 910) 2 696 (3 215)
Profit for 16 710
the period
Segment 202 418 128 237 (176 537) 154 118
assets
Segment (69 882) (52 979) 38 590 (84 270)
liabilities
Capital 6 257 3 343 9 600
expenditure
Depreciation 1 438 2 583 4 021
and
amortisation
Segment Report
For the year ended 30 June 2007
R`000 Environmental Infrastructural Elimination Combination
Solutions Development
Revenue 74 990 148 693 (13 484) 210 199
Operating 3 026 12 503 (532) 14 997
profit
Finance (682) (497) 769 (410)
costs
Income taxes (1 129) (2 703) - (3 832)
Minority 49
interest
Profit for 10 804
the period
Segment 96 259 75 710 (39 260) 132 709
assets
Segment 54 351 30 496 (39 260) 45 587
liabilities
Capital 5 525 2 585 8 110
expenditure
Depreciation 953 1 884 2 837
and
amortisation
INTRODUCTION
The directors are pleased to announce the annual financial results of
Accentuate Limited for the year ended 30 June 2008 ("the year").
Accentuate continued to execute our business plan effectively by focusing on
producing market share gains in key markets, increasing revenue and growing
both earnings and earnings per share. We have completed another year with a
more than satisfactory performance and we are proud to announce a maiden
dividend of 4 cents per share.
REVIEW OF OPERATIONS
Conditions in the South African economy have changed dramatically over the
past 12 months with increased interest rates and energy costs and lower
business confidence. We have also seen a dramatic slowdown in the
construction and other interest rate-sensitive sectors of the domestic
economy. The sectors in which Accentuate primarily operates remain buoyant
and despite these economic factors, demand for our products remains strong.
Government`s announced infrastructure spend, aimed at stimulating GDP growth,
is creating an environment conducive to demand for group products,
particularly within FloorworX and Centurion Glass and Aluminum
("CGA"). Recent exchange rate declines have assisted in alleviating, to some
degree, the threat of import competition, although imports from India, China
and Korea remain competitively priced even with the weaker exchange rates. We
are still experiencing price pressure on a number of our product categories,
especially the more commoditised product offerings. Rising input costs
continue to place pressure on margins, but we are confident that the
strategies implemented plus the anticipated increase in volumes will, to a
large degree, mitigate this risk.
FINANCIAL RESULTS
The group has achieved an attributable profit of R16.7m (2007: R10.8m) for
the year ended 30 June 2008. This is an increase of 55% on the previous
corresponding period. On a turnover growth of 23% the group has increased
EBITDA by 41% from the previous reporting period. The EBITDA margin has
increased to 9.7% (2007: 8.5%). Earnings per share has increased by 23% to
19.25 cents per share (2007: 15.62 cents per share) and headline earnings per
share has increased by 18% to 19.59 cents per share (2007: 16.56 cents per
share)
The directors are not aware of any matter or circumstance occurring between
the balance sheet date and the date of this report that materially affects
the results of the group for the year ended 30 June 2008 or the financial
position at that date. On 8 August 2008, Accentuate signed a heads of
agreement to purchase the business of Interior Wooden Floors as a going
concern as announced on SENS on 12 August 2008. A full announcement will be
made once the agreement has been signed.
Accentuate has repurchased 3.41% of its own shares on the open market of the
JSE Limited in accordance with the general authority granted by its
shareholders at the annual general meeting held on 29 November 2007. Full
detail of the repurchase was announced on SENS on 2 July 2008.
OPERATIONAL REVIEW
Operationally, the group focused on further extracting value by exploiting
the synergies that exist between the companies within the group. Much
attention has been spent on the effective integration of CGA into the group
as well as on the restructuring efforts within the Environmental Services
Division. The final restructuring exercise within the Chemical area of this
division has been completed and the costs associated with this restructuring
are included in the current set of financials. As mentioned in the Interim
Results, management is confident that this division will become a solid
contributor to the otherwise sterling performance of the group.
The year under review saw the Infrastructure Division, especially Floorworx
further entrench its position as the market leader within the resilient
flooring market with key market share gains in certain areas including
private hospitals and the 2010 soccer stadiums. Demand from Government is on
the increase and we are confident that we are starting to see the long
anticipated Government infrastructure spend materialise. During the year
major contract wins for the Division included: Government hospital overhauls
such as the King George V, 1 Military Hospital and Chris Hani Baragwanath,
the revamp of flooring for Government school classrooms as well as the supply
of flooring for certain World Cup Soccer stadiums and the Gautrain.
Similarly, demand for the product offering from CGA remains buoyant. All the
performance warranties were met in the year under review and we are confident
that the effective integration of CGA into the group will add much value into
the future. We are pleased with the performance of this company, the focus of
which is primarily on niche glass and aluminum projects which have included:
Fairlands banking development (FNB and Wesbank), the Sandhurst Towers on
Sandton Drive, the Royal Bafokeng Stadium and the Natalspruit Hospital.
The Chemical Division has undergone a radical transformation in the year
under review with much focus on the reduction of cost, increasing operational
capacity while focusing the marketing efforts on re-branding and re-
positioning the group into focused market segments. Although this process has
been costly and intense, management is confident that the results will be
evident in the next financial year. The Division has done well to secure a
long term contract for the Gauteng Shared Services Council for the provision
of cleaning and detergent chemicals to be used in the Departments of Health
and Education in the Gauteng Province.
The group, as a whole continued to focus on market share growth, new-client
acquisition and growing our product offering into our extensive and valued
customer base. A number of initiatives aimed at reducing attrition and
increasing our effectiveness in meeting the ever changing demands of the
market have been launched across all our business divisions.
PROSPECTS
Accentuate`s strategy remains to capitalise on the enormous growth
opportunities in the infrastructural development areas of the southern
African economies. We intend to optimise organic growth and we will look at
increasing our existing geographic footprint, while pursuing identified
opportunities that have strong cash flows and provide the opportunity for
both product and geographic expansion. The relative lack of gearing on the
balance sheet creates opportunities for strategic acquisitions.
Major infrastructural investments planned by Government in South Africa and
those of Southern African countries provide the platform for strong organic
growth. The areas identified include the upgrading of health and education
facilities as well as the massive anticipated investment into the public
transport infrastructure area of the economy.
DIVIDEND POLICY
Notice is hereby given that final dividend of 4 cents per share for the year
ended 30 June 2008 has been declared, payable to shareholders recorded in the
register of the company at the close of business on the record date appearing
below. The dividend will be financed out of current profits.
The salient dates applicable to the final dividend are as follows:
Last day to trade shares cum div Friday 3 October 2008
Shares traded ex dividend Monday 6 October 2008
Record date Friday 10 October 2008
Payment date Monday 13 October 2008
No share certificates may be dematerialized or rematerialized between Monday,
6 October 2008 and Friday, 10 October 2008 both dates inclusive.
BASIS OF PREPARATION
The abridged report complies with International Accounting Standard 34 -
Interim Financial Reporting, as well as with Schedule 4 of the South African
Companies Act and disclosure requirements of the JSE Limited`s Listing
Requirements.
The abridged report has been prepared using policies that comply with
International Financial Reporting Standards (IFRS). The accounting policies
are consistent with those applied in the financial statements for the year
ended 30 June 2007, with the exception of the introduction of IAS 11:
Construction contracts.
AUDITORS` OPINION
The condensed consolidated annual financial results have been audited by
Accentuate`s auditors, PKF Pta Inc. Their unqualified audit report is
available for inspection at the company`s registered office.
APPRECIATION
The board would like to take this opportunity to thank the various management
teams for their loyalty and dedication towards the achievement of the
objectives that has been set. The board would also like to thank its business
partners, advisors and suppliers, and most importantly the shareholders for
their ongoing support and faith in the group.
By order of the Board
17 September 2008
F C Platt A J Voogt
Chief Executive Officer Financial Director
CORPORATE INFORMATION
Non executive M D C Motlatla
directors: M E Dipico
Executive directors: F C Platt
A J Voogt
Dr. D E Platt
A J Kerrod
Registration number: 2004/029691/06
Registered address: 32 Steele Street
Steeledale
2197
Postal address: P.O. Box 1754
Alberton
1450
Company secretary: G W Delport
Telephone: 0860 4 72342
Facsimile: 0861 4 72342
Transfer secretaries: Computershare Investor Services (Pty)
Limited
Designated Adviser: Exchange Sponsors (Pty) Limited
Date: 18/09/2008 08:00:01 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 ] | |||||||||||||
|
|||||||||||||
