| Wed 15 Jul 2009, 15:31 | | AHL - AH-Vest Limited - Reviewed results for the 9 months ended 31 March 2009 |
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AHL
AHL
AHL - AH-Vest Limited - Reviewed results for the 9 months ended 31 March 2009
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
("All Joy" or "the Group")
REVIEWED RESULTS FOR THE 9 MONTHS ENDED 31 MARCH 2009
Condensed consolidated balance sheet Reviewed Audited
As at As at
31 March 30 June
2009 2008
ASSETS
Non- current assets 13 736 963 13 976 032
Property, plant and equipment 12 552 350 12 791 419
Intangible assets 1 184 613 1 184 613
Current Assets 28 940 008 19 801 330
Inventories 11 918 933 9 398 565
Loans receivable 2 171 560 -
Trade and other receivables 12 796 200 8 627 902
Cash and cash equivalents 2 053 315 1 774 863
Total Assets 42 676 971 33 777 362
EQUITY AND LIABILITIES
Capital and reserves 17 292 155 5 184 633
Share capital 21 293 071 6 843 578
Reserves 4 688 610 4 169 678
Accumulated loss (8 689 527) (5 828 623)
Non-current liabilities 90 830 66 882
Finance lease obligation 90 830 66 882
Current liabilities 25 293 986 28 525 847
Loans payable - Land Bank Ltd 14 438 173 15 667 306
Finance lease obligations 66 256 170 138
Current tax payable - 1 663 986
Trade and other payables 9 738 623 10 290 401
Operating lease liability 6 407
Provisions 1 044 528 646 095
Bank overdraft - 87 921
Total equity and liabilities 42 676 971 33 777 362
Net asset value per share (cents) 16.96 12.35
Tangible net asset value per share 15.80 9.53
(cents)
Shares in issue at year end 101 973 333 41 973 333
Condensed consolidated income Reviewed Audited
statement Nine months Year
ended ended
31 March 30 June
2009 2008
Revenue 55 001 576 55 119 893
Cost of Sales (37 847 739) (40 292 953
Gross profit 17 153 837 14 826 940
Other income 2 163 309 21 420
Other operating expenses (21 077 348) (21 995 505)
Operating profit before finance (1 760 203) (7 147 145)
costs
Investment income 405 192 17 763
Finance costs (1 505 893) (1 850 149)
Loss before tax (2 860 904) (8 979 531)
Taxation - (1 256 935)
Loss for the period (2 860 904) (10 236 466)
Earnings before interest, taxation, (770 272) (5 957 887)
depreciation and amortisation
("EBITDA")
Depreciation (989 931) (1 189 258)
Investment income 405 192 17 763
Finance cost (1 505 893) (1 850 149)
Loss before taxation (2 860 904) (8 979 531)
Taxation - (1 256 935)
Loss for the period (2 860 904) (10 236 466)
Attributed to:
Equity holders of the company (2 860 904) (10 236 466)
Minority interest - -
Headline loss calculation:
Loss attributable to equity holders (2 860 904) (10 236 466)
of the company
Adjusted for: - -
Headline earnings / (loss) (2 860 904) (10 236 466)
Number of shares
- Weighted average shares in issue * 96 249 125 50 455 460
- Diluted weighted average shares in 96 249 125 50 455 460
issue
* The weighted average number of
shares has been adjusted by the
bonus element as a result of the
rights issue. This bonus element has
been adjusted retrospectively as
required by IAS 33.
Weighted average number of shares
disclosed in the prior year
41,973,333
Earnings per share information
(cents)
Loss per share (2.97) (20.29)
Diluted loss per share (2.97) (20.29)
Headline loss per share (2.97) (20.29)
Diluted headline loss per share (2.97) (20.29)
Condensed consolidated statement of Reviewed Audited
changes in equity Nine months Year
ended ended
31 March 30 June
2009 2008
Capital and reserves 5 184 633 15 507 021
Revaluation of Land and Buildings 518 932 -
Shares issued 14 449 493 -
Share issue expenses - (85 922)
Net loss for the period (2 860 904) (10 236 466)
Capital and reserves 17 292 154 5 184 633
Condensed consolidated cash flow Reviewed Audited
statement Nine months Year
ended ended
31 March 30 June
2009 2008
Net cash flow from operating (10 370 565) (1 774 392)
activities
Net cash flow used in investing (2 403 491) (984 371)
activities
Net cash flow used in financing 13 140 429 3 206 941
activities
Net increase in cash and cash 366 373 448 178
equivalents
Cash and cash equivalents at 1 686 942 1 238 764
beginning of year
Cash and cash equivalents at end of 2 053 315 1 686 942
period
COMMENTARY
The board presents the reviewed results for the nine months ended 31 March
2009.
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, as amended, and the disclosure requirements of the Listing
Requirements of the JSE Limited.
The auditor, PKF (Pta) Inc., has issued its modified review opinion on the
group`s reviewed results for the nine months ended 31 March 2009. A copy of
the review report on the summarised financial statements is available for
inspection at the registered office of the group. The review opinion contains
an emphasis of matter in relation to the continued support of The Land Bank
Limited, which provides a short term working capital loan to the company and
which loan is subject to regular review and renewal.
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, with the exception of the adoption of
IFRS 8 - Operating Segments.
Results
Income Statement
The loss and headline loss for the period of R2 860 904 for the nine month
period ended 31 March 2009 showed a substantial improvement compared to the
prior year loss of R10 236 466. This was achieved through an increase in
average monthly turnover. With the company achieving the same level of
turnover for the nine month period, compared to a full 12 month period to 30
June 2008. The company achieved improved gross margins, after higher input
costs were able to be passed through to customers over November and December
2008. The volume of business has also increased marginally and the company
has entered into a number of supply contracts with Hatnoon Milling, Malloys
and Bake Den, which increased turnover by R5 133,361million.
Operating expenses were reasonably well controlled during the period, despite
an increase in key staff. Finance costs decreased on the Land Bank facility
due to interest rates declining over the period. Interest income arose from a
positive bank balance pursuant to the underwritten rights offer which closed
in August 2008.
The results have been negatively impacted by a provision of R1.4 million
against a large receivable. Whilst the company holds more than 200% security
in relation to this debtor, in the event of a fire sale, the amount realisable
may well be lower than the carrying value of the debtor. Accordingly, the
company has elected to be conservative and has decided to provide for 50% of
the amount receivable. The company has stopped supply in the interim.
In addition, the company has incurred a number of once off charges and write
off of prior year amounts that were previously considered collectable. These
once off charges amount to approximately R1 472 000.
Without the above two charges, the company would have demonstrated a positive
EBITDA and a much lower loss for the period.
The company is continuing to implement improved controls, efficiencies and the
turnaround strategy for the company.
Balance sheet
Balance sheet movements have been compared to 30 June 2008 balances.
* Share capital increased by R14.4 million as a results of the successful
rights offer after 30 June 2008.
* Inventory increased by 27% 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 48% 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 21%, primarily as a result
of the rights offer; and
* Trade payables have increased marginally and other liabilities have
declined through proceeds of the rights offer.
* Financial assets relate to a loan to Africa Heritage Power Supply
Solutions, and are repayable at the end of September 2009.
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
During the current period the company entered into supply contracts, within
the same operating segment, within South Africa. The revenue and gross profit
percentage split is set out below:
31 March 30 June
2009 2008
Revenue - Normal 49 868 213 55 119 893
Operations
Gross profit 33.45% 26.9%
percentage
Revenue - Supply 5 133 362 -
contracts
Gross profit 9.17% -
percentage
Total revenue 55 001 576 55 119 893
Total gross profit 31.19% 26.9%
percentage
Dividends
No dividends were declared during the period. (2008: 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 Date resigned
appointed
P Mariemuthu (Executive 25 August
Chairman) 2008
MT Pather (Chief Executive
Officer)
M Hill (Financial director) 16 September
2008
A Gonsalves (Executive 25 August
director) 2008
MD Mawere (Non-executive) 25 August
2008
R Manning (Non-executive) 25 August
2008
MJ Janse van Rensburg (Non- 25 August
executive) 2008
S Fanaroff (Non-executive) 25 August
2008
W Parsons (Non-executive) 25 August
2008
JW Walters (Financial 25 August
Director) 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.
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 small profits expected in the coming year.
The company has 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
15 July 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 Transfer secretaries
Arcay Client Support Computershare Investor
(Proprietary) Limited Services (Pty) Ltd
Auditors Designated Advisors
Arcay Moela Sponsors
PKF (Pta) Inc (Proprietary) Limited
Chartered Accountants (SA)
Registered Auditors
Date: 15/07/2009 15:31:01 Produced by the JSE SENS Department.
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