| Mon 1 Jun 2009, 14:42 | | CMG - Cenmag Holdings Limited - Reviewed Results for the Year Ended 28 |
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CMG
CMG
CMG - Cenmag Holdings Limited - Reviewed Results for the Year Ended 28
February 2009 and Renewal of Cautionary Announcement
CENMAG HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/004821/06)
Share code: CMG & ISIN code: ZAE000001533
(`Cenmag" or `the company`)
REVIEWED RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2009 AND RENEWAL OF CAUTIONARY
ANNOUNCEMENT
GROUP BALANCE SHEET Reviewed Audited
28 February 29 February
2009 2008
R`000 R`000
ASSETS
Non-current assets 7 142 7 423
Fixed assets 7 029 7 422
Loans receivable --- ---
Deferred tax 113 1
Current assets 16 045 11 623
Total assets 23 187 19 046
EQUITY AND LIABILITIES
Capital and reserves 14 209 9 600
Non Controlling Interest 452 422
Interest bearing liabilities - long 2 536 2 716
and short term
Interest free liabilities 5 990 6 308
Total equity and liabilities 23 187 19 046
Number of shares in issue (000`s) 9 600 9 600
Net asset value per share information
Net asset value per share (cents) 148.01 100.00
Net tangible asset value per share 148.01 100.00
(cents)
GROUP INCOME STATEMENTS Reviewed year Audited year
ended ended
28 February 29 February
2009 2008
R`000 R`000
Gross Revenue 36 286 35 702
Cost of sales 23 913 25 346
Gross profit 12 373 10 356
Operating costs 6 545 6 442
Operating income 5 828 3 914
Depreciation 379 307
Operating income 5 449 3 607
Net finance income 431 237
Profit before tax 5 880 3 844
Taxation 1 693 1 122
Profit after tax 4 187 2 722
Minority interest 30 40
Profit attributable to shareholders 4 157 2 682
Loss on disposal of fixed assets --- 15
Headline earnings 4 157 2 697
Earnings per share information
Number of shares in issue (000`s) 9 600 9 600
Attributable earnings per ordinary 43.3 27.93
share (cents)
Headline earnings per share (cents) 43.3 28.09
ABRIDGED GROUP CASH Reviewed Audited
FLOW STATEMENTS 28 February 29 February
2009 2008
R`000 R`000
Cash flows from operating activities 4 840 6 291
Cash flows from investing activities (3) (6 545)
Cash effects of financing activities (377) 2 530
Net increase in cash and cash 4 460
equivalents 2 390
Bank at beginning of year 4 433 2 043
Cash at the end of period 8 893 4 433
SEGMENTAL REPORTING Reviewed year Audited year
ended ended 29
28 February February
2009 2008
R`000 R`000
Revenue
Manufacturing and Service 16 510 16 542
Wholesaling 19 776 19 160
Total 36 286 35 702
Profit from operating activities
Manufacturing and Service 5 564 3 458
Wholesaling 263 456
Total 5 827 3 914
GROUP STATEMENT OF Share Share Retained Total
CHANGES IN EQUITY capital premium income
R`000 R`000 R`000 R`000
Balance at 01 March 2007 96 2 090 4 732 6 918
Net profit for the year -- -- 2 682 2 682
Balance at 29 February 96 2 090 7 414 9 600
2008
Net profit for the year -- -- 4 157 4 157
Balance at 28 February 96 2 090 11 571 13 757
2009
COMMENTARY
RESULTS
The board presents its reviewed results for the year ended 28 February 2009 in
accordance with IAS 34: Interim Financial Reporting. The company is an
investment holding company and its subsidiaries are primarily involved in the
manufacture and servicing of electromagnets and motor rewinding and the
wholesaling of electrical and related equipment.
BUSINESS OVERVIEW
In line with prevailing economic conditions, the group experienced an
exceptional increase in demand for its products. Group headline earnings per
share rose strongly by 55% on a 1.64% volume growth, from 27.93 cents earnings
per share to 43.3 cents earnings per share. Another major contributing factor
to our good results was the successful consolidation of two of our
manufacturing companies. Based on a judgement call by the directors, the
company have not appointed an audit committee for the year in terms of section
269A(1), the benefit and the effect of it is an additional earnings of 4.00
cents per share which is included into the bottom line of the group.
FUTURE PROSPECTS
Prospects for the year ending February 2010 are not as good, as the local and
international mining sectors entered into a recession cycle, the effect of it
is that we are facing a lower demand for material handling goods. In view of
the above, the directors are of the opinion that our future earnings per share
will be badly affected.
ACCOUNTING POLICIES AND REVIEW
The financial results have been prepared in accordance with accounting
policies that comply with International Financial Reporting Standards ("IFRS")
and the Companies Act of 1973. The accounting policies and methods of
measurement and recognition are consistent with those applied in the previous
financial period. The results have been reviewed by Horwath Leveton Boner,
whose modified report is available for inspection at the registered office of
the company. The modification relates to the company`s failure to appoint an
audit committee as disclosed in the Business Overview paragraph above.
DIRECTORS
Shareholders attention is drawn to the fact that Mr Victor Farkas fulfils the
roles of Chairperson, Chief Executive Officer and Financial Director of the
Company, which is a contravention of the corporate governance requirements of
the JSE Listings Requirements. The Company is aware of this contravention and
has justified it based on the size of the company, that Mr Farkas has the
necessary skills and experience and that it represents a cost saving to the
Company.
GENERAL
1. No new shares were issued and no special resolutions were passed during
the period under review.
2. No dividends were recommended or declared for the period.
3. There were no changes to the board of directors for the year under
review.
RENEWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders are referred to the cautionary announcement dated 17 April 2009
and are advised that the negotiations referred to therein are still in
progress and, if successfully concluded, may have a material effect on the
price at which the company`s securities trade on the JSE Limited.
Shareholders are accordingly advised to continue to exercise caution when
dealing in the company`s securities until a full announcement is made.
Johannesburg
29 May 2009
Company Secretary Registered Office
V. Farkas M. Econ C.A. (S.A.) 30 Bisset Road, Jet Park, Boksburg
PO Box 870, Isando, 1600 PO Box 870, Isando, 1600
Directors
V.Farkas (CEO), C.J.B. Le Roux (Executive director), B.I. Mazibuko (Non-
executive director), E.M. Greenblatt (Non-executive director)
Sponsor Transfer Office
Arcay Moela Sponsors Computershare Investor Services
(Proprietary) Limited (Proprietary) Limited
Date: 01/06/2009 14:42:13 Produced by the JSE SENS Department.
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