| Fri 20 Feb 2009, 9:02 | | WTL - William Tell Holdings Limited - Unaudited results for the six months ended |
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WTL
WTL
WTL - William Tell Holdings Limited - Unaudited results for the six months ended
31 December 2008 summarised consolidated income statements
WILLIAM TELL HOLDINGS LIMITED
(Registration number 2004/030045/06)
Share code: WTL ISIN: ZAE000098133
("William Tell" or "the company")
UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2008
SUMMARISED CONSOLIDATED INCOME STATEMENTS
Unaudited Unaudited Audited
December December June
2008 2007 2008
R`000 R`000 R`000
Revenue 73,332 100,607 164,166
Cost of sales (55,430) (60,679) (105,422)
Gross profit 17,902 39,928 58,744
Other income 1,230 829 1,501
Administrative and other operating (14,487) (26,520)
expenses (12,932)
Operating profit 4,645 27,825 33,725
Investment Income 2,042 5,468 9,099
Foreign exchange loss (258) (107) (1,175)
Interest paid (1,784) (3,080) (4,811)
Profit before taxation 4,645 30,106 36,838
Taxation (1,166) (8,452) (9,553)
Profit for the period 3,479 21,654 27,285
Depreciation and amortisation for the 2,558 5,100
period 2,359
Basic and diluted basic earnings per 2.8 21.8
share (cents) 17.3
Headline and diluted headline earnings 2.8 21.7
per share (cents) 17.2
Dividends per share (cents) - - 5
Reconciliation of basic earnings to
headline earnings
Basic earnings 3,479 21,654 27,285
Adjusted by-(Profit)/ Loss on sale of (6) (116)
property, plant and equipment (126)
Headline earnings 3,473 21,528 27,169
Number of shares in issue (`000) 125,000 125,000 125,000
Weighted average number of shares 125,000 125,000
(`000) 125,000
SUMMARISED CONSOLIDATED BALANCE SHEETS
Unaudited Unaudited Audited
December December June
2008 2007 2008
R`000 R`000 R`000
ASSETS
Non-current assets 287,473 174,713 250,532
Property, plant and equipment 287,408 174,622 250,453
Intangible assets 65 91 79
Current assets 67,197 145,044 95,537
Inventories 18,564 17,729 26,941
Trade and other receivables 27,963 21,135 18,701
Current taxation receivable - 357 99
Cash and cash equivalents 20,670 105,823 49,796
354,670 319,757 346,069
EQUITY AND LIABILITIES
Capital and Reserves 209,436 206,581 205,957
Share capital 1,250 1,250 1,250
Share premium 179,265 179,270 179,265
Accumulated profit 28,921 26,061 25,442
Non-current liabilities 116,253 81,109 109,776
Interest-bearing borrowings 92,356 57,272 87,429
Deferred taxation 20,447 20,521 19,149
Deferred income 3,450 3,316 3,198
Current liabilities 28,981 32,067 30,336
Trade and other payables 20,285 23,693 21,164
Interest bearing borrowings 7,462 3,760 7,795
Provisions 1,234 1,356 974
Current taxation payable - 3,258 403
Bank overdraft - - -
354,670 319,757 346,069
Net asset value per share (cents) 168 165 165
Capital expenditure for the period 39,504 118,949
(R`000) 47,169
SUMMARISED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Unaudited Unaudited Audited
December December June
2008 2007 2008
R`000 R`000 R`000
Share Capital
Balance at beginning of the year 1,250 1,250 1,250
Shares issued during the year - - -
Balance at the end of the period 1,250 1,250 1,250
Share Premium
Balance at beginning of the year 179,265 179,758 179,758
Share issue expenses - (488) (493)
Balance at end of the period 179,265 179,270 179,265
Accumulated profit and other reserves
Balance at beginning of the year 25,442 4,407 4,407
Profit for the period 3,479 21,654 27,285
Dividend paid during the period - - (6,250)
28,921 26,061 25,442
SUMMARISED CONSOLIDATED CASH FLOW STATEMENTS
Unaudited Unaudited Audited
December December June
2008 2007 2008
R`000 R`000 R`000
Net cash generated by operations 6,692 32,134 31,109
Net finance income / (costs) 258 2,281 3,113
Dividends paid - - (6,236)
Taxation (paid) / received (1,166) (2,564) (7,634)
Cash flow from operating activities 5,784 31,851 20,352
Cash flow from investing activities (39,504) (46,554) (125,269)
Cash flow from financing activities 4,594 (12,327) 21,860
Movements in cash and cash equivalents (29,126) (83,057)
(27,030)
Cash and cash equivalents at beginning 49,796 132,853
of the year 132,853
Cash and cash equivalents at the end 20,670 49,796
of the period 105,823
SEGMENT REPORT
This is a single segment group and no segmental reporting is provided.
COMMENTARY
OVERVIEW OF THE BUSINESS
William Tell is a focused manufacturer of wood-based panels. The group produces
chipboard, adds value by applying melamine surfaces and adds further value by
producing systems and components for the building and related industries.
Products are marketed under the Evopan and 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.
SIX MONTH OPERATIONAL REVIEW
Trading has been exceptionally difficult since December 2007 and sales for the
period under review were 27% below 2007. Margins too have been reduced by
aggressive competition and higher input costs. Operating profit has fallen 83%
to R4.6m compared to R27.8m last year.
Operating costs were 12% higher through professional fees for advice and due
diligence in respect of possible acquisitions which are no longer under
consideration. Management have controlled working capital effectively. The
increase in trade and other receivables relates to an outstanding VAT refund of
R8.6m.
Good progress was made in the construction of the new Chamdor (Krugersdorp)
facility despite bureaucratic delays and costs. The total investment in the
Chamdor facility to date is R137.7m in plant and equipment and R31.3m in land
and buildings, of which R39.5m was spent in this period. A further R12m has to
be spent to completion. This expenditure has reduced cash balances to R20.6m in
line with forecast and increased long term interest bearing debt to R92.3m at
the end of the period.
PROSPECTS
Our competitors have closed four wood based panel plants in recent months.
Whilst this has reduced the supply/demand imbalance, there is still a surplus of
wood based panel production and profit margins will continue to be under
pressure for the next 12 months. Some relief might be available from further
reductions in the costs of resins and transport.
The first trial boards have been manufactured at the Chamdor plant and we are
pleased with the results. The plant is expected to be in full production by 28
February 2009. Whilst this will add some additional production to the market,
the quality of our product and the increase in our range will give us better
opportunities for the future.
The capacity of the Chamdor facility will allow us to establish our thin board
plant at the appropriate time.
DIRECTORS
Annamarie van der Merwe resigned as a director and Chairman on 31 January 2009
to pursue other interests. We wish Annamarie well and thank her for her very
valuable contribution to the group in its development since listing.
Ralph Patmore joined the board on 1 February 2009 and was appointed Chairman on
that date. Ralph has a wealth of industry experience and we look forward to his
contribution to the group.
DIVIDENDS
In the light of the current market conditions, the directors regard it prudent
not to declare an interim dividend.
BASIS OF PREPARATION
These summarised consolidated interim financial statements have been prepared in
accordance with International Financial Reporting Standards ("IFRS"), IAS 34:
"Interim Financial Reporting", the South African Companies Act, as amended, and
the JSE Listings Requirements. The principal accounting policies used in the
preparation of the unaudited results for the period ended 31 December 2008 are
consistent with those applied for the year ended 30 June 2008 and for the six
months ended 31 December 2007.
BY ORDER OF THE BOARD
R B PATMORE B P LOK
20 FEBRUARY 2009
REGISTERED ADDRESS:
11/23 ANDREA ROAD
REUVEN ESTATE
BOOYSENS 2016
DESIGNATED AND CORPORATE ADVISOR:
PSG CAPITAL (PROPRIETARY) LIMITED
BUILDING 8
WOODMEAD ESTATE
1 WOODMEAD DRIVE
WOODMEAD 2191
REGISTERED AUDITORS:
BDO SPENCER STEWARD (JOHANNESBURG) INC.
13 WELLINGTON ROAD
PARKTOWN 2193
Date: 20/02/2009 09:02:47 Produced by the JSE SENS Department.
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