| Tue 30 Jun 2009, 8:30 | | KNG - King Consolidated Holdings - Reviewed Group Results For The Year Ended |
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KNG
KNG
KNG - King Consolidated Holdings - Reviewed Group Results For The Year Ended
28 February 2009
KING CONSOLIDATED HOLDINGS LIMITED
Registration No: 1992/006472/06
Incorporated in the Republic of South Africa
(Ordinary Share Code: KNG, ISIN code: ZAE000073458)
Reviewed Group results
For the year ended 28 February 2009
ABRIDGED GROUP INCOME STATEMENT
Reviewed Audited
Year Year
ended ended
28/02/2009 29/02/2008
R000`s R000`s
Revenue 235 200 231 197
Operating loss before interest (9 311) (505)
Net interest paid (3 880) (3 625)
Loss before exceptional items (13 191) (4 130)
Exceptional items 0 0
Loss before taxation (13 191) (4 130)
Deferred Taxation (2 410) 0
Loss attributable to ordinary shareholders (15 601) (4 130)
Headline loss per share (cents) (93) (25)
Loss per share (cents) (93) (25)
Dividend per share 0 0
NTAV per share (cents) 10 83
NAV per share (cents) 10 83
Shares in issue (000`s) 16 735 16 735
Weighted Average (000`s) 16 735 16 735
Reconciliation of headline earnings/(loss)
Loss per income statement (15 601) (4 130)
Reconciling entries 0 0
Headline losses (15 601) (4 130)
ABRIDGED GROUP BALANCE SHEET Reviewed Audited
Year Year
ended ended
28/02/2009 29/02/2008
R000`s R000`s
ASSETS
Non-current assets 26 466 21 504
Property, plant and equipment 26 466 18 544
Deferred taxation 0 2 960
Current assets 38 432 45 273
Inventories 15 071 17 349
Accounts receivable 23 074 26 366
Cash and cash equivalents 287 1 558
64 898 66 777
EQUITIES AND LIABILITIES
Capital and reserves 1 682 13 905
Ordinary shareholders funds 1 682 13 905
Non-current liabilities 41 570 27 296
Loans from related parties 38 179 21 041
Other long term liabilities 3 391 6 255
Current liabilities 21 646 25 576
Accounts payable 18 166 20 675
Bank overdraft 3 480 4 901
64 898 66 777
ABRIDGED GROUP CASH FLOW STATEMENT Reviewed Audited
Year Year
ended ended
28/02/2009 29/02/2008
R000`s R000`s
Cash flow from operating activities (8 190) (1 976)
Cash flow from investing activities (6 397) (3 865)
Cash flow from financing activities 14 737 6 941
Net change in cash and cash equivalents 150 1 100
Cash resources at beginning of year (3 343) (4 443)
Cash resources at end of year (3 193) (3 343)
STATEMENT OF CHANGES IN EQUITY
Share Share Revaluation
Capital Premium Reserve
R000`s R000`s R000`s
Balance at 28 February 2007 2 510 18 062 0
Net loss for the year 0 0 0
Balance at 29 February 2008 2 510 18 062 0
Revaluation of Property, Plant & 0 0 3 378
Equipment
Net loss for the year 0 0 0
Balance at 28 February 2009 2 510 18 062 3 378
Accumulated
Loss Total
R000`s R000`s
Balance at 28 February 2007 (2 537) 18 035
Net loss for the year (4 130) (4 130)
Balance at 29 February 2008 (6 667) 13 905
Revaluation of Property, Plant & 0 3 378
Equipment
Net loss for the year (15 601) (15 601)
Balance at 28 February 2009 (22 268) 1 682
ACCOUNTING POLICIES
The accounting policies, as outlined in the 2008 annual report, have been
consistently applied. The abridged annual financial statements have been
prepared in accordance with International Financial Reporting Standards (IFRS),
IAS 34 on Interim Financial Reporting, the interpretations adopted by the
International Accounting Standards Board (IASB) and the requirements of the
South African Companies Act.
REVIEWED BY AUDITORS
The Group`s financial results have been reviewed by its auditors.
The review opinion includes an Emphasis of Matter as there is uncertainty on the
company`s ability to continue as a going concern.
The auditor`s Review Report is available for inspection at the company`s
registered office.
COMMENTS
Sector: Industrial - Hotels and Leisure
Nature of business
The nature of the business is:
1. The establishment, development and operation of franchise restaurants and
pubs, namely; Keg, McGinty`s, Bimbos, Saddles, Keg Cafe and Dockside
Porterhouse.
2. The storage, wholesaling and distribution of frozen, chilled and dry products
under the name of Lusitania Food Products.
FINANCIAL RESULTS
1. The financial year was characterised by tough trading conditions due to the
current economic climate.
2. The Franchise division has increased its turnover and is continuing its
expansion through both franchised and company owned stores. A number of new
franchised stores were opened during the year.
3. The processing division was closed during the year after it continued to be a
major contributor towards the group`s losses. This has resulted in additional
once off expenses incurred for the year.
4. The Kwazulu Natal distribution division and the company owned restaurants
also posted significant operating losses for the year.
5. The distribution division experienced continued cost pressures due to the
high inflation of costs associated with transportation activities.
6. The major shareholder committed additional funds to the group to assist with
its operations and expansion activities.
EXCEPTIONAL ITEM
There were no exceptional items during the year
PROSPECTS
We expect an improvement in results for the forthcoming year as a result of the
curtailment of costs resulting from the rationalisation processes within
Lusitania and the expected reduction in transport related costs.
Management has instituted various corrective measures to improve the results in
loss making divisions.
King Consolidated Food Services is expecting to continue to increase its
franchise network during the year as well as rejuvenating some of the older
brands in their portfolio.
The group expects to benefit from the increased tourism market expected in
South Africa for the period leading up to and including the 2010 Soccer World
Cup.
DIVIDENDS
The Board has resolved not to declare a dividend.
For and on behalf of the board
ACP Cotterell
(CEO) 30 JUNE 2009
DIRECTORS
ACP Cotterell (CEO), VPG Cotterell*, RP Hume*, PJM Cotterell*
Group Secretary: L Turner *-Non-executive
Transfer Secretaries: Computershare Investor Services 2004 (Pty) Ltd
Sponsor: Arcay Moela Sponsors (Pty) Ltd
Registered Office: Kingco Park, 97 Milner Street, Kensington B,
Randburg, 2194.
Auditors: Logista (Johannesburg), Registered Accountants and Auditors,
Chartered Accountants (SA)
Date: 30/06/2009 08:30:03 Produced by the JSE SENS Department.
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