| Wed 1 Jul 2009, 7:30 | | BEG - Beige Holdings Limited - Reviewed results for the year ended 31 March 2009 |
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BEG
BEG
BEG - Beige Holdings Limited - Reviewed results for the year ended 31 March 2009
Beige Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration No: 1997/006871/06)
Share code: BEG ISIN code: ZAE000034161
("Beige" or "the company")
REVIEWED RESULTS FOR THE YEAR ENDED 31 MARCH 2009
Consolidated Condensed Balance Sheet
Reviewed Restated
31 March 2009 31 March 2008
R`000 R`000
ASSETS
Non-current assets 275 113 240 804
Property, plant and equipment 139 909 112 250
Intangible assets 118 789 115 223
Deferred income tax assets 16 415 13 331
Current assets 202 917 220 055
Inventories 70 720 57 772
Trade and other receivables 122 792 113 845
Cash and cash equivalents 9 405 48 438
Total assets 478 030 460 859
EQUITY AND LIABILITIES
Capital and reserves 213 084 190 806
Ordinary share capital 16 011 16 885
Ordinary share premium 274 476 280 603
Reserves 10 842 10 626
Accumulated loss (88 245) (117 308)
Non-current liabilities 76 544 84 424
Long-term borrowings 71 656 67 145
Financial instrument 2 362 17 279
Deferred income tax 2 526 --
liabilities
Current liabilities 188 402 185 629
Trade and other payables 117 985 127 421
Current portion of long-term 32 561 30 388
borrowings
Current income tax liabilities 7 777 3 443
Bank overdrafts 30 079 24 377
Total equity and liabilities 478 030 460 859
Ordinary shares (000`s)
In issue (Note 2) 1 596 697 1 684 097
Diluted (Notes 2 and 3) 1 608 260 1 795 107
Net asset value per share
information
Net asset value per share 13.35 11.33
(cents)
Net tangible asset value per 5.91 4.49
share (cents)
Diluted net asset value per 13.25 10.63
share (cents)
Diluted net tangible asset 5.86 4.21
value per share (cents)
Consolidated Condensed Income Statement
Reviewed Restated
Year ended Year ended
31 March 2009 31 March 2008
R`000 R`000
Revenue 599 020 452 212
Cost of sales (480 304) (361 267)
Gross profit 118 716 90 945
Distribution costs (12 068) (9 156)
Administrative expenses (75 700) (61 875)
Operating profit 30 948 19 914
Goodwill impairment - (70 535)
Discount on acquisition - 12 719
Gain on the re-measurement
of an embedded conversion 14 917 1 868
option liability (Note 1)
Profit/(loss) before 45 865 (36 034)
finance costs
Finance income 1 657 2 859
Finance costs (11 982) (6 051)
Profit/(loss) before 35 540 (39 226)
income tax
Income tax expense (6 477) (406)
Profit/(loss) for the year 29 063 (39 632)
Headline earnings
adjustments:
Goodwill impairment - 70 535
Discount on acquisition - (12 719)
Profit on disposal of - (16)
plant and equipment
Headline earnings for the 29 063 18 168
year
Ordinary shares (000`s)
In issue (Note 2) 1 672 843 1 332 425
Diluted (Note 2 and 3) 1 684 405 1 443 436
Earnings per share
information
Earnings per share (cents) 1.74 (2.97)
Headline earnings per 1.74 1.36
share (cents)
Diluted earnings per share 1.73 (2.69)
(cents)
Diluted headline earnings 1.73 1.31
per share (cents)
Notes
1 On 2 July 2007 the company issued to its ordinary shareholders a
capitalisation award of redeemable preference shares that are convertible
into ordinary shares at the holder`s option. Initially the company
classified the preference shares as equity, but has retrospectively
adjusted the classification to a debt instrument, amounting to R13.5
million with an embedded call option liability amounting to R19.1 million.
On initial recognition and subsequent re-measurement the preference shares
and the embedded call option liability were measured at fair value, based
on the prevailing interest rates, the Beige share price, the conversion
ratio, and the strike price of 15 cents per ordinary share. Beige has re-
measured the embedded call option liability to fair value at balance sheet
date to R2.4 million (2008: R17.3 million). As a result, Beige has
recorded a gain of R14.9 million (2008: R1.9 million) in profit and loss,
due to the decrease in the Beige share price.
2 91 716 667 (2008: 4 316 667) shares held as treasury stock have been
subtracted from the respective share totals for purposes of calculating
earnings per share information.
3 Diluted per share information has been incorporated to show the potential
effect of the dilution for 21 300 090 (2008: 18 233 387) options held by
directors and senior management to subscribe for new shares at 7.5 cents
per share, equating to a dilutive effect of 11 562 423 (2008: 11 010 222)
ordinary shares. The directors and senior management options, which were
approved by shareholders at the general meeting held on 13 November 2006,
were granted with effect from 1 April 2006 and expire on 31 March 2011. In
addition, dilution allowing for the conversion of the redeemable
convertible preference shares has been assumed at nil in the current year
and 99 999 998 dilutive ordinary shares in the prior year.
Consolidated Condensed Cash Flow Statement
Reviewed Restated
31 March 2009 31 March 2008
R`000 R`000
Net cash inflow/(outflow) 12 969 (1 747)
from operating activities
Net cash outflow from (49 814) (224 031)
investing activities
Net cash (outflow)/ inflow (7 890) 227 465
from financing activities
Net (decrease)/increase in
cash and cash equivalents (44 735) 1 687
Cash and cash equivalents at
the beginning of the year 24 061 22 374
Cash and cash equivalents at (20 674) 24 061
the end of the year
Group Statement of Changes in Equity
Ordi Ordi Ordi Pre- Pre- Reva Shar Acum Tota
nary nary nary fere fere l- e u- l
shar Trea Shar nce nce uati base late R`00
e sury e shar shar on d d 0
capi Shar prem e e Rese paym loss
tal es ium capi prem rve ent R`00
R`00 R`00 R`00 tal ium R`00 rese 0
0 0 0 R`00 R`00 0 rve
0 0 R`00
0
Balance at 7 143 123 - - - 1 (62 70
01 April 719 127 544 173) 360
2007
Prior year (576 (576
adjustments ) )
Restated - - -
balance at 7 143 123 1 (62 69
01 April 719 127 544 749) 784
2007
Ordinary 8 - 170 - - - - - 179
shares 775 771 546
issued
Preference - - (15 143 14 - - - -
shares 000) 857
issued
Utilisation
of treasury 100 (100 - - - - - - -
shares )
Revaluation - - - - - 9 - - 9
of property 202 202
Share 191 - 1 - - - - - 1
options 334 525
Employees
share
option
scheme:
- value of
employee - - - - - 219 - 219
services
- proceeds
from shares 57 - 371 - - - - - 428
issued
Loss for
the year as - - - - - - - (24 (24
previously 982) 982)
reported
Balance at
31 March 16 43 280 143 14 9 1 (87 235
2008 842 603 857 202 763 731) 722
Prior year (143 (14 (339 (29 (44
adjustments ) 857) ) 577) 916)
**
Restated
balance at 16 43 280 - - 8 1 (117 190
31 March 842 603 863 763 308) 806
2008
Treasury
shares held (874 - (6 - - - - - (7
by ) 127) 001)
subsidiary
Employees
share
option
scheme:
- value of
employees - - - - - - 216 - 216
services
Profit for - - - - - - - 29 29
the year 063 063
Balance at
31 March 15 43 274 - - 8 1 (88 213
2009 968 476 863 979 245) 084
** The restatement includes total restatements of losses accounted for in the
income statement of R14.7 million, an embedded loss on an embedded call option
liability of R17.4 million and a reversal of a profit of R2.5 million on Beige
shares returned, directly accounted for in equity.
1 Segmental analysis
for the year ended 31
March 2009 Outsource Plasti
Manufactu c Other Group
ring Produc R`000 R`000
R`000 ts
R`000
Segment revenue
- year ended 31 March 504 438 94 582 - 599
2009 020
- year ended 31 March 386 715 65 497 - 452
2008 212
Segment operating
profit/(loss)
- year ended 31 March 38 701 (7 19 30 948
2009 772)
- year ended 31 March 24 753 (5 1 127 19 914
2008 966)
Segment profit/(loss)
before taxation
- year ended 31 March 35 197 (11 11 35 540
2009 279) 622
- year ended 31 March 37 394 (78 2 012 (39
2008 632) 226)
Segment assets
- year ended 31 March 320 119 153 4 160 478
2009 751 030
- year ended 31 March 307 637 127 25 460
2008 950 272 859
Segment liabilities
- year ended 31 March 169 466 47 644 47 264
2009 836 946
- year ended 31 March 171 769 45 789 52 270
2008 495 053
2. Prior year adjustments
The following restatements in respect of prior year adjustments can be
summarised as follows:
2008
R`000
Total equity 236 298
previously reported
Adjustments to
prior year income
statement, increase (14
/ (decrease) in 650)
profit
Income Income
before after
Note tax Tax tax
Increase in
operating expenses 1 (7 831) 2 068 (5 763)
due to Crystal Pack
irregularities
Stock valuations
previously 2 (1 951) 546 (1 405)
overstated
Fair value
adjustment on
acquisition of 3 (2 160) (403) (2 563)
business and
expenses restated
Deferred tax
adjustment on 3 - (2 393) (2 393)
acquisition of
business
Amortisation of
customer 3 (2 133) 597 (1 536)
relationships
Fair value
adjustments on 5 (497) 139 (358)
loans and
preference shares
Gain on the re- 5 1 868 - 1 868
measurement of an
embedded conversion
option liability
Profit reversed on
Beige shares 4 (2 500) - (2 500)
returned
(15 554 (14
204) 650)
Adjustments to
other changes
(increase) /
decrease in equity
Income Income
before after
Note tax Tax tax
Deficit in fair
value of preference 5 (17 427)
share and option
liability
Decrease in
preference share
capital (restated
as debt at fair 5 (15 000)
value)
Profit on Beige
shares returned 4 2 500
accounted for in
equity
Other (915)
Total equity 190 806
restated
Adjustments to the cash flow
The cash flow results for the previous period were restated in order to account
for the businesses acquired from date of acquisition and not for the full
financial year. The restatements had the effect of increasing the net cash
generated from operating activities with R13.1 million, increasing cash used in
investing activities with R8.2 million and decreasing the cash used in financing
activities with R4.9 million.
Adjustments to number of diluted shares
The diluted numbers of shares were adjusted for the full effect of the
conversion of preference shares into ordinary shares and an adjustment to the
calculation of the option held by directors and senior management to subscribe
for ordinary shares. This restatement had the effect of increasing the number of
dilutive weighted average shares from 1 350 659 to 1 443 436.
Notes:
1. As a result of certain material accounting irregularities
identified at Crystal Pack Pty Ltd ("Crystal Pack"), the
prior year results are required to be restated.
2. Overheads were incorrectly allocated in previous years to
inventory of certain subsidiaries instead of cost of sales.
3. As part of business combinations previously acquired by the
group (Quality Products Pty Ltd ("Quality Products"),
Crystal Pack and Lornamead Pty Ltd ("Lornamead")), certain
restatements were required on the purchase price allocation.
This resulted in the restatement of intangible assets namely
customer relationships and goodwill, changes to the fair
value of loans, as well as an increase in deferred tax
assets.
4. During the previous financial year shares to the value of
R2.5 million were returned to Beige as part of a settlement.
This was treated as income, but was subsequently allocated
to reserves.
5. In the previous financial year the company issued to its
ordinary shareholders a capitalisation award of redeemable
preference shares that are convertible into ordinary shares
at the holder`s option. Initially the company classified the
preference shares as equity, but has retrospectively
adjusted the classification to a debt instrument amounting
to R13.2 million with an embedded call option liability
amounting to R19.1 million. Beige has re-measured the
embedded call option liability to fair value at 31 March
2008 at R17.3 million.
The effect of the prior year adjustments set out above on the consolidated
results of the group for the previous year can be summarised as follows:
Consolidated Condensed Balance As Adjustments Restated
Sheet previously R`000 2008
reported R`000
2008
R`000
Assets
Non-current assets 245 654 (4 850) 240 804
Property, plant and equipment 112 791 (541) 112 250
Intangible assets 118 031 (2 808) 115 223
Deferred income tax assets 14 832 (1 501) 13 331
Current assets 228 038 (7 983) 220 055
Inventories 62 580 (4 808) 57 772
Trade and other receivables 117 020 (3 175) 113 845
Cash and cash equivalents 48 438 - 48 438
Total assets 473 692 (12 833) 460 859
Equity
Capital and reserves 236 298 (45 492) 190 806
attributable to equity holders
of the company
Share capital 17 028 (143) 16 885
Share premium 295 460 (14 857) 280 603
Other reserves 10 965 (339) 10 626
Accumulated loss (87 155) (30 153) (117
308)
Total equity
Liabilities
Non-current liabilities 51 581 32 843 84 424
Borrowings 51 581 15 564 67 145
Preference share option - 17 279 17 279
Deferred tax - - -
Current liabilities 185 813 (184) 185 629
Trade and other payables 127 605 (184) 127 421
Current income tax liabilities 3 443 - 3 443
Borrowings 30 388 - 30 388
Bank overdrafts 24 377 - 24 377
Total equity and liabilities 473 692 (12 833) 460 859
Consolidated Condensed Income As Adjustme Restated
Statement Previous nts 2008
ly R`000 R`000
Reported
2008
R`000
Revenue 454 611 (2 399) 452 212
Cost of sales (356 (4 800) (361
467) 267)
Gross profit 98 144 (7 199) 90 945
Distribution costs (9 156) - (9 156)
Administrative expenses (56 100) (5 775) (61 875)
Operating profit 32 888 (12 974) 19 914
Goodwill impairment (70 535) - (70 535)
Discount on acquisition 12 719 - 12 719
Gain on the re-measurement of an 1 868 1 868
embedded conversion option
liability
Net loss before finance costs (24 928) (11 106) (36 034)
Finance income 6 460 (3 601) 2 859
Finance costs (5 554) (497) (6 051)
Loss before income tax (24 022) (15 204) (39 226)
Income tax expense (960) 554 (406)
Loss for the year (24 982) (14 650) (39 632)
Consolidated Condensed Cash Flow As Adjustme Restated
Statement previous nts 2008
ly R`000 R`000
Reported
2008
R`000
Net cash outflow from operating (14 842) 13 095 (1 747)
activities
Net cash outflow from investing (215 (8 199) (224
activities 832) 031)
Net cash inflow from financing 232 361 (4 896) 227 465
activities
Net increase in cash and cash 1 687 - 1 687
equivalents
Cash and cash equivalents at the 22 374 - 22 374
beginning of the year
Cash and cash equivalents at the 24 061 - 24 061
end of the year
COMMENTARY
The directors of Beige are pleased to announce the reviewed results for the year
ended 31 March 2009. These results show the consolidated position of Beige, the
largest fully empowered contract manufacturer in the personal care industry.
1 Accounting policies
The consolidated results are reported in accordance with International Financial
Reporting Standards ("IFRS").
The condensed consolidated financial statements for the year ended 31 March 2009
were prepared in accordance with IAS 34 `Interim Financial Reporting`, the
requirements of the Companies Act of South Africa and in compliance with the
Listing Requirements of the JSE Limited.
The principal policies used in the preparation of the results for the year ended
31 March 2009 are consistent with those applied for the year ended 31 March
2008.
2 Reviewed results
PricewaterhouseCoopers Inc, the group`s independent auditors, have reviewed the
condensed consolidated financial information for the year ended 31 March 2009,
that comprise the condensed consolidated balance sheet at 31 March 2009, the
condensed consolidated income statement, condensed consolidated statement of
changes in equity, and condensed consolidated cash flow statement for the year
then ended, and have expressed an unqualified review opinion on these condensed
consolidated financial statements. The review opinion is available for
inspection at the company`s registered office.
3. Group review
Beige is a registered holding company operating through thirteen subsidiaries.
The Beige group primarily operates as a contract manufacturer, manufacturing and
distributing cosmetics, soaps, laundry soaps and allied products on behalf of
brand owners for the local and international home and personal care industry.
During 2007, the company diversified its operations through the acquisition of a
manufacturing business to complement its contract manufacturing operations.
Beige is listed on the Alternative Exchange ("AltX") of the JSE Limited.
During the year under review, with the exception of Crystal Pack, which was
acquired in the prior year and further details of which are provided below, all
the operating units performed significantly better than the prior comparative
period. Quality Products, the largest subsidiary, saw continued increase in
organic growth, from both key and new customers. The combined operations at
Chloorkop and Argo Soap and Chemicals (Pty) Ltd have also showed substantially
improved operational and financial results. Beige has made additional
investments in infrastructure and capacity and both the Durban and Johannesburg
operations have been expanded. Amcos Cosmetics International (Proprietary)
Limited ("Amcos") has been included for a full year following its acquisition
with effect from 01 January 2008. RAP Products International (Proprietary)
Limited ("RAP") has been consolidated into the group from September 2008.
The company continues to experience a growth in demand for the goods and
services that it provides. The second six months showed a change in product
demand, with consumers substituting luxury products for more affordable
products.
Update on the acquisition of Crystal Pack
During the previous financial year the company acquired 100% of Crystal Pack and
related manufacturing contracts ("Star"), which acquisition was approved by
shareholders at a general meeting held on 31 May 2007. Shareholders were
previously advised on SENS that the board of directors uncovered material
accounting irregularities at Crystal Pack, a wholly-owned subsidiary of Beige.
Suspicions were raised in September 2008 and Beige immediately commissioned a
forensic audit into Crystal Pack`s financial affairs. Crystal Pack was acquired
by Beige from the CAVI consortium from 1 July 2007 and was subject to profit and
other warranties for the year to 31 March 2008. The forensic audit revealed
accounting irregularities, which Beige is of the opinion, constitutes serious
manipulation of financial accounts from both prior to the Crystal Pack
acquisition date, and during the warranty period. The matter has been referred
to the National Prosecuting Authorities and steps are being taken to recover
damages and/or losses from the various parties associated with Crystal Pack.
Subsequent to year end, the CAVI Consortium has signed an agreement with Beige
for the return and cancellation of 56 887 561 shares, being the balance of the
shares received by the CAVI Consortium members, excluding the Giddings family,
and will jointly pursue damages and recovery of losses from the Giddings family,
together with Beige.
The financial effects of the irregularities above have mostly affected the
financial results of the prior year ended 31 March 2008 and these results have
consequently been restated. Since December 2008, Beige has taken management
control of Crystal Pack and has managed to turn the operations around from
incurring large monthly losses to a breakeven position by March 2009. Crystal
Pack is expected to become profitable in the forthcoming year.
Restatement of prior year results
The prior year results have been restated due to, inter alia, the Crystal Pack
accounting irregularities. Full details of all restatements are set out in
section 2.
4. Financial and operational overview
The growth in turnover and business of Beige has continued in the year under
review and the board is pleased with the results, which reflect the continued
implementation of the organic and acquisitive growth strategy underway at Beige.
Revenue increased substantially from R452 million in the comparative period to
R599 million for the year under review, an increase of 33%. The gross profit
increased by 31% to R119 million from R91 million and the gross profit margin
has remained consistent at 20%.
Distribution costs have increased due to the increased levels of business, along
with administration costs which increased by nearly 22%. This increase in costs
was primarily due to increased administration costs from Amcos, which was
consolidated for a full year for the first time as well as RAP, which was
consolidated from September 2008. The group also incurred certain non-recurring
costs such as the relocation of the Amcos factory into the Chloorkop facility.
The incorporation of the RAP facility into the Crystal Pack facility is
currently under way and is due to be completed shortly.
The profit before tax (after adjusting for non-recurring items and unrealised
financial instrument gains) for the group increased by 23% to R21 million from
R17 million. The adjustments can be set out as follows:
2009 2008
R`000 R`000
Group profit/(loss) for the year before 35 540 (39 226)
income taxation
Non-recurring and unrealised financial
instrument positions to be
adjusted to assess the results of the
group, namely:
Gain on re-measurement of embedded
conversion option liability arising from (14 917) (1 868)
the decrease in the Beige share
Headline earning adjustment (mainly net - 57 800
impairment)
20 623 16 706
The profits were adjusted for the headline earnings adjustments, as well as the
re-measurement of the preference shares and the embedded call option liability
measured at fair value, based on the prevailing interest rates, the Beige share
price, the conversion ratio, and the strike price of 15 cents per ordinary
share, namely unrealised gain of R14.9 million (2008: R1.8 million).
Finance costs increased substantially over the prior period due to the company
having to finance Crystal Pack losses and related working capital requirements.
Finance costs include the preference dividend in accordance with IAS32 and
IAS39.
Taxation is approximately R6 million higher due to deferred taxation assets
being raised in the prior year against assessable losses. The taxation rate is
also affected by permanent differences due to the interest on preference shares
not being deductable for taxation.
The Competition Commission gave their unconditional approval for Beige to
acquire 100% of Amcos in December 2007 and the Beige management team, in
conjunction with the Amcos managing director, have been instrumental in turning
this business around, with Amcos now contributing positively to the group.
During the year under review, Amcos has been relocated and integrated into the
Chloorkop facility.
In addition, the Competition Commission gave their unconditional approval for
Beige to acquire 100% of the shares in RAP at the end of August 2008 and the
results of RAP have been consolidated into the group from September 2008. RAP
carries on the business of manufacturing injection and blow moulded plastic
packaging products, primarily for the cosmetics industry.
These initiatives all form part of a strategic decision by management to grow
market share in a controlled fashion and to obtain critical mass at the
factories. The long term benefits of this growth strategy include the
optimisation of available production capacity, improvements in efficiency and
the achievement of greater benefits resulting from consolidated procurement.
5. Acquisitions and issue of shares
In August 2008, the group acquired 100% of the share capital of RAP for a
cash consideration of R17.1 million
The acquired business contributed revenues of R36.4 million and net profit
of R1.3 million to the group for the period from acquisition to 31 March
2009. If the acquisition had occurred on 1 April 2008, consolidated revenue
and consolidated profit for the year ended 31 March 2009 would have been
R45.6 million and R1.1 million respectively.
Details of net assets acquired and goodwill are as follows:
R million
Purchase consideration:
Cash paid 14.7
Direct costs relating to the 2.4
acquisition
Total purchase consideration 17.1
Purchase price allocated as
follows:
Fair value of net identifiable 11.2
assets acquired
Goodwill 5.9
17.1
No shares have been issued during the year under review. However, shareholders
are referred to paragraph 6 below.
6. Repurchases of and cancellations of shares
During the year under review, Beige repurchased 87 400 000 shares at a
total value of R7 000 740 under its general authority. The repurchased
shares are held as treasury shares.
In addition, shares that were issued in relation to Crystal Pack profit
warranties are to be cancelled ab initio in terms of agreements signed with
CAVI Consortium members as mentioned in paragraph 1 above. At the date of
this announcement agreements have been signed for the cancellation of 56
887 561 shares.
7. Prospects
The group has excellent prospects for strong, sustained growth in earnings.
Improved performance in the coming year is expected with the integration of
Amcos into the Chloorkop facility, the recent operational turnaround of the
Crystal Pack operations, the intended merging of the Crystal Pack and RAP
facilities and the strengthened management at Crystal Pack with the
introduction of the RAP management team. Beige expects synergies and cost
benefits to flow in due course.
8. Director appointments and resignations
Following receipt of Competition Commission approval for the acquisition by
Thebe Investment Corporation (Proprietary) Limited of a 33.45% interest in
Beige, Messrs. V Khanyile and M Fandeso were appointed to the board with
effect from 17 March 2009, whilst Ms L Gadd and Mr J Alderslade were
appointed as alternate directors to Messrs. Khanyile and Fandeso. Messrs.
John Black and Yaseen Bhayat resigned from the board with effect from 16
March 2009, following the disposal by Thebe Medicare (Proprietary) Limited
of its investment in Beige. Mr G Anderson resigned as a director with
effect from 31 December 2008, whilst Mr M ten Hope resigned as a director
with effect from 18 August 2008.
9. Change in auditors
During the year under review, PricewaterhouseCoopers Inc. were appointed as
auditors to the company.
10. Dividends
Pursuant to the acquisition of Crystal Pack in the prior year, a
capitalisation award of redeemable, convertible, cumulative 8% preference
shares was made to ordinary shareholders, prior to the issue of shares to
the vendors of Crystal Pack. The capitalisation award was made in the
ratio of one preference share for every 55.03271 Beige ordinary shares
held. The first preference share dividend of 8.40 cents was paid to all
preference shareholders recorded in the preference share register of the
company at the close of business on 29 August 2008.
No ordinary dividend has been declared for the year ended 31 March 2009.
11. Contingent assets
Beige has initiated legal action against all parties who have been involved
in the material accounting irregularities at Crystal Pack and preliminary
steps to recover all amounts involved, including costs and damages have
commenced. No asset in relation to this claim has been recognised in these
results as the claim is in a preliminary stage.
12. Subsequent events
Subsequent to year end, the company has acquired 51% of Herbal &
Homeopathic (Proprietary) Limited, for an amount of R3 million settled in
cash, which company contract manufactures nutri-ceutical products. The
acquisition is in line with the group`s strategy to become the preferred
contract packing manufacturer in South Africa, supplying more products to
its customer base.
By order of the Board
Monwabisi Fandeso Mark Di Nicola
Chairman Chief Executive Officer
01 July 2009
Johannesburg
Company Secretary and Registered Office
Arcay Client Support (Pty) Ltd (Registration number
1998/025284/07)
Arcay House, Number 3 Anerley Road, Parktown, 2193
PO Box 62397, Marshalltown, 2107
Directors
MP Fandeso*; MM Di Nicola Chief Executive Officer; MC Easter
Financial Director; MM du Preez*; VP Khanyile*; LI Karp*; RH
Weissenberg*
(* Non-executive)
Designated Advisor Transfer Office
Arcay Moela Sponsors (Pty) Ltd Link Market Services South
Africa (Pty) Ltd
Date: 01/07/2009 07:30:01 Produced by the JSE SENS Department.
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