| Mon 30 Mar 2009, 15:22 | | AHL - AH-VEST Limited - Reviewed results for the 6 months ended 31 December 2008 |
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AHL
AHL
AHL - AH-VEST Limited - Reviewed results for the 6 months ended 31 December 2008
AH-VEST LIMITED
(Formerly All Joy Foods Limited)
(Incorporated in the Republic of South Africa)
Registration number 1989/000100/06)
Share code: AHL
ISIN code: ZAE000129177
("AH-VEST " or "the Group")
REVIEWED RESULTS FOR THE 6 MONTHS ENDED 31 DECEMBER 2008
Consolidated balance Reviewed Reviewed Unaudited
sheet 31 December 30 June 31 December
2008 2008 2007
R`000 R`000 R`000
ASSETS
Non- current assets 13 609 164 13 976 032 15 366 000*
Property, plant and 12 424 551 12 791 419
equipment
Intangible assets 1 184 613 1 184 613
Investments in - -
subsidiaries
Loans to group - -
companies
Current Assets 35 558 814 19 801 330 28 282 000*
Inventory 11 936 680 9 398 565
Trade and other 16 675 326 8 627 902
receivables
Other financial 2 087 667 -
assets
Cash and cash 4 859 141 1 774 863
equivalents
Total Assets 49 167 978 33 777 362 43 648 000
EQUITY AND
LIABILITIES
Capital and reserves 19 492 227 5 184 630 14 445 000*
Share capital 21 293 171 6 843 578
Reserves 4 165 544 4 169 678
Accumulated loss (5 966 488) (5 828 626)
Non-current 78 148 66 882 1 081 000
liabilities
Finance lease 78 148 66 882 1 081 000
obligation
Current liabilities 29 597 603 28 525 850 28 122 000*
Other financial 14 911 587 15 667 306
liabilities
Finance lease - 170 138
obligations
Trade and other 13 966 085 10 290 404
payables
Provisions 719 931 646 095
Taxation payable - 1 663 986
Bank overdraft - 87 921
Total equity and 49 167 978 33 777 362 43 648 000
liabilities
Net asset value per 19.12 12.35 34.4
share (cents)
Tangible net asset 17.95 9.53 32.4
value per share
(cents)
Shares in issue at 101 973 333 41 973 333 41 973 333
year end (`000)
* - Detailed breakdown not previously published
Consolidated income Reviewed Reviewed Unaudited
statement 6 months Year 6 months
ended ended ended
31 December 30 June 31 December
2008 2008 2007
Revenue 37 265 636 55 119 893 29 916 000
Earnings before 1 118 138 (5 957 887) *
interest, taxation,
depreciation and
amortisation
("EBITDA")
Depreciation (500 581) (1 189 258) *
Investment income 304 788 17 763
Finance cost (1 060 211) (1 850 149) (841 000)
Loss before tax (137 866) (8 979 531) (918 000)
Taxation - (1 256 935) (144 000)
Loss for the year (137 866) (10 236 466) (1 062 000)
Attributable to:
Equity holders of the (137 866) (10 236 466) (1 062 000)
company
Minority interest - - -
Headline loss
calculation:
Loss attributable to (137 866) (10 236 466) (1 062 000)
equity holders of the
company
Adjusted for: - - -
Headline loss (137 866) (10 236 466) (1 062 000)
Number of shares
- Weighted average 101 973 333 41 973 333 41 973 333
shares
- Diluted weighted 101 973 333 41 973 333 41 973 333
average shares
Headline loss per
share (cents)
- Basic (0.14) (24.4) (2.5)
- Diluted (0.14) (24.4) (2.5)
Loss per share
(cents)
- Basic (0.14) (24.4) (2.5)
- Diluted (0.14) (24.4) (2.5)
* - Detailed breakdown not previously published
Consolidated Reviewed Audited
statement of changes Reviewed Year Year
in equity 31 ended ended
December 30 June 30 June
2008 2008 2007
Capital and reserves 5 184 632 15 507 021 16 163 525
Shares issued 14 445 461 - 419 734
Share issue expenses - (85 923) (33 642)
Net profit / (loss) (137 866) (10 236 466) (1 042 598)
for period
Capital and reserves 19 492 227 5 184 632 15 507 019
Consolidated cash Reviewed Audited Year
flow statement Reviewed Year ended
31 December ended 30 June
2008 30 June 2007
2008
Net cash flow (used (1 724 391) 2 316 273
in)/generated from (8 137 189)
operations
Net cash flow used in (984 374) (3 248 134)
investing activities (2 225 515)
Net cash flow 3 206 843 (555 233)
generated from/(used 13 534 903
in) financing
activities
Net increase in cash 3 172 199 448 078 (1 487 094)
equivalents
Cash and cash 1 238 864 (9 163 977)
equivalents at 1 686 942
beginning of year
Cash and cash 1 686 942 (10 651 071)
equivalents at end of 4 859 141
period
COMMENTARY
The board presents the reviewed results for the six months ended 31 December
2008.
Basis of preparation and accounting policies
The abridged reviewed financial results have been prepared in accordance with
IAS 34: Interim Financial Reporting and using accounting policies in compliance
with International Financial Reporting Standards, the Companies Act of South
Africa and the disclosure requirements of the Listing Requirements of the JSE
Limited.
The auditor, PKF (Pta) Inc., has issued its unmodified review opinion on the
group`s reviewed results for the six months ended 31 December 2008. A copy of
the review report on the summarised financial statements is available for
inspection at the registered office of the group.
AH-Vest has adopted all the statements and interpretations issued and effective
during the current period by the International Accounting Standards Board
("IASB"). The accounting policies adopted are consistent with those applied in
the previous financial year.
Results
Income Statement
The loss and headline loss for the period of R137 866 showed a substantial
improvement compared to the prior period loss of R1 062 000 and the prior year
loss of R10 236 466. This was achieved through an increase in turnover of 24.6%
over the prior comparative period. The company achieved by slightly improved
gross margins, after higher input costs were able to be passed through to
customers. However, there is typically a time lag and improved margins are
expected to come through in the following reporting period. Volume of business
has also increased and the company has entered into a number of supply contracts
with Hatnoon Milling, Malloys and Bake Den, which increased turnover by R3.7
million.
Operating expenses were reasonably well controlled during the period, despite an
increase in key staff. Finance costs increased in the Land Bank facility due to
higher interest rates. Interest income arose from a positive bank balance
pursuant to the underwritten rights offer which closed in August 2008.
Balance sheet
Balance sheet movements have been compared to 30 June 2008 balances as detailed
information was not previously presented.
* Share capital increased by R14.4 million as a results of the successful
rights offer after 30 June 2008.
* Inventory increased by 28% from June 2008, primarily due to an increase in
raw materials following the importation of large quantities of tomato paste
towards the end of the reporting period.
* Trade and other receivables increased by 95% which is largely due to the
increase in other trade debtors in relation to the Bake Den, Malloys and
Hatnoon Milling contracts.
* Cash & cash equivalents have also increased by 63%, primarily as a result
of the rights offer; and
* Trade payables have increased by R3.7 million, which equates to 36%, of
which R1.5 million relates to Bake Den.
* Financial assets relates to a loan to Africa Heritage Supply Chain
Solutions, which was advanced in anticipation of setting up a centralised
purchasing arrangement for the company.
Issue of shares for cash, acquisitions and disposals
During the period, the company has raised R15 million by way of a rights offer
through the issue of 60 000 000 new shares at 25 cents per share. The rights
offer was underwritten by Africa Heritage Investments (Pty) Ltd ("Africa
Heritage"), which has become the controlling shareholder of AH-Vest. This has
resulted in a substantial strengthening of the balance sheet, lower gearing of
the company and lower net finance costs. Pursuant to the change in control of
both the company and the board of directors, the company has implemented a
turnaround strategy, which is now showing results.
There have been no acquisitions or disposals during the period under review.
Segmental Analysis
No segmental analysis has been presented as the company operates in one segment,
within South Africa.
Dividends
No dividends were declared during the period. (2007: Nil)
Board of Directors
During the period and to the date of this announcement, the board of directors
has changed as follows:
Name and designation Date appointed Date resigned
P Mariemuthu (Executive Chairman) 25 August 2008
MT Pather (Chief Executive Officer)
M Hill (Financial director) 16 September
2008
A Gonsalves (Executive director) 25 August 2008
MD Mawere (Non-executive) 25 August 2008
R Manning (Non-executive) 25 August 2008
MJ Janse van Rensburg (Non- 25 August 2008
executive)
S Fanaroff (Non-executive) 25 August 2008
W Parsons (Non-executive) 25 August 2008
JW Walters (Financial Director) 25 August 2008
Change in name of company and year end
The company changed its name from All Joy Foods to AH-Vest Limited on the JSE
with effect from 24 December 2008. The All Joy name and brand will be retained
to house the food interests of the group going forward.
In addition, the company has changed its year end to the end of March each year,
in order to align its year end with that of Africa Heritage. Accordingly, the
company will present audited results for the nine month period ending 31 March
2009.
Change in company secretary and designated advisor
Arcay Moela Sponsors (Proprietary) Limited has been appointed as the new
Designated Advisor pursuant to the change in control in September 2008. The
company secretary has changed to Arcay Client Support (Proprietary) Limited
during November 2008.
Subsequent events and future prospects
A plan to initiate and implement corrective action within AH-Vest has been put
into place over the past few months. This involved the introduction of Africa
Heritage as a strategic investor, the appointment of a substantially new board
of directors, the recent appointment of Mel Hill as the Financial Director and
Tony Gonsalves as Operations Director. A thorough investigation and overhaul of
systems and controls has been actioned as well as policies and procedures. A
focus on maintaining costs until performance is satisfactory will be initiated,
with profits expected after the 31 December 2008 interim results.
We have appointed distributors in Namibia, Swaziland, and Botswana, additional
sales from these neighbouring countries will contribute to our growth.
The groups` traditional products such as tomato sauce, pasta sauces and Veri
Peri continue to perform well and the group intends to build on the range of
products and services in the group, with an initial focus on the food sector.
The company is evaluating an acquisition strategy going forward.
Johannesburg
30 March 2009
Directors:
Executive Directors: P Mariemuthu; MT Pather; M Hill; A Gonsalves.
Non-Executive Directors: MD Mawere; R Manning; MJ Janse van Rensburg
Registered address
103 Booysens Reserve Road, Crown Mines, 2001
Company Secretary
Arcay Client Support (Proprietary) Limited
Transfer secretaries
Computershare Investor Services (Pty) Ltd
Auditors
PKF Chartered Accountants (SA)
Designated Advisors
Arcay Moela Sponsors (Proprietary) Limited
Date: 30/03/2009 15:22:01 Produced by the JSE SENS Department.
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