|
ILA
ILA
ILA - Iliad Africa - Unaudited results for the six months ended 30 June 2009
ILIAD AFRICA LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1997/011938/06)
Share code: ILA ISIN: ZAE000015038
("Iliad" or "the Group")
UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2009
NATURE OF BUSINESS
Iliad focuses on sourcing, distributing, wholesaling and retailing general and
specialised building materials. Through 112 stores countrywide, the Group
services a range of customers, from large-scale contractors to do-it-yourself
homeowners.
FINANCIAL HIGHLIGHTS
In line with the trading statement issued on 23 June 2009, the Group recorded
earnings per share of 21,4 cents for the six months to 30 June 2009, a decrease
of 72,1% on 76,9 cents per share for the six months ended June 2008. Turnover
was R1,94 billion, 13,3% below the prior comparative period, reflecting the
turbulent business environment, a significant decline in building plans passed
and a slowdown in the finishing end of the industry. Despite expense increases
being below inflation, these costs, on the back of lower turnover, contributed
to the 62,4% decline in operating profit to R59,9 million. Overheads do,
however, include certain once-off items incurred as part of the project to
significantly lower Iliad`s overall cost base and to reposition the Group for
the future.
Finance costs on higher monthly borrowings together with an increase in the
average tax rate, further contributed to the earnings decline. Borrowing levels
at half year have improved against that of the prior comparative period.
OPERATIONAL AND MARKET REVIEW
In one of the most challenging trading periods in many years, Iliad`s ongoing
focus on procurement, cost structures and operating efficiencies played a role
in limiting the impact of considerably lower levels of activity in all the
Group`s key markets thereby protecting gross margins.
The residential market continued to slow during the period, particularly in the
second quarter, evidenced by a decline of 30-50% in building plans passed
depending on the region and subdued new residential construction activity.
Metropolitan areas have been worst affected.
The non-residential market and the market for additions and alterations have
also been negatively impacted on by the adverse macro economic circumstances.
Iliad`s General Building Materials Division, which has the greatest exposure to
activity levels in metropolitan areas, mirrored economic conditions and the
impact on consumer spending. Iliad`s operations in outlying areas, however,
continued to trade well and a new D&A Timbers store roll out was approved in
Ballito to service the KwaZulu-Natal`s upmarket North Coast.
In the Specialised Building Materials Division, the trend towards trading down
in the finishing end continued during the review period, exacerbated by
excessive stock levels across the industry. This added to the pressure on
trading margins. Stock related issues are, however, continually being addressed.
Despite prevailing market conditions, Iliad used its conservative debt structure
to conclude acquisitions during the period, expanding its geographic presence in
the North West, Western Cape and Gauteng provinces and adding at least R230
million a year to Group turnover from 2010. The acquisitions, detailed below,
will broaden the retail presence of the Group`s General Building Materials
Division, and augment services in its Specialised Building Materials Division:
TPS (Timber Preservation Services), based in Cape Town, is a treatment plant for
imported timber and offers strong synergies with Iliad`s Thorpe Timber Company,
an established timber merchant that sources both imported and local raw timber
to produce finished products for blue-chip industrial clients.
Iliad has acquired a platform business in DOH, the largest and most-established
general building materials supplier in the Brits area (North West). DOH`s
experienced management team has been retained, in line with Iliad`s focus on
owner-managed enterprises. Regulatory approval is awaited for this transaction.
Iliad has bid for the stock and assets of three well known general building
materials stores in liquidation. Well-located in Wierda Park, Centurion and
Hartebeespoort, Iliad has secured leases for the existing premises and these
stores will trade under an established regional brand, extending its operational
reach and offering considerable distribution efficiencies. Regulatory approval
is awaited for this transaction.
The Vendors / minority shareholders of Campwell Hardware (Pty) Ltd, during the
first half of this year, exercised their rights under the put option, resulting
in a reduction of the deferred purchase consideration and goodwill.
As with earlier acquisitions, Iliad will add value through the Group`s financial
management and procurement expertise, with meaningful contributions expected to
flow from the 2010 financial year onwards.
PROSPECTS
As expected, results for the first half confirmed that 2009 is not business as
usual - at both business and economic levels. With no recovery in the building
industry materialising yet, the trading environment for the balance of 2009 is
expected to remain challenging. During the third quarter, Iliad will complete
its cost-reduction programme, assisting the Group to meet long-term shareholder
expectations.
Supported by strong teams, stable and diversified operations and the Group`s
cash-generative nature, Iliad remains optimistic about the future and confident
of its ability to deliver on its longer term strategic objectives.
ACCOUNTING POLICIES
The principal accounting policies used in the preparation of the condensed
consolidated interim financial results for the half-year ended June 2009 have
been applied consistently over the current year and prior financial periods,
except for the adoption of new and amended accounting standards listed below:
IAS 1 - Presentation of Financial Statements
IFRS 8 - Operating Segments.
BASIS OF PREPARATION
The board acknowledges its responsibility for the preparation of the condensed
consolidated interim financial statements in accordance with the Companies Act,
Act 61 of 1973, as amended, International Financial Reporting Standards (IFRS),
International Accounting Standards 34 (IAS 34) and the Listings Requirements of
the JSE Limited.
These condensed interim financial statements have not been reviewed or audited
by the Group`s auditors.
DISTRIBUTIONS
In line with Group policy, no interim distribution has been declared.
For and on behalf of the board of directors
20 August 2009, Johannesburg
Eugene Beneke, Chief executive officer
Neil Goosen Group financial director
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
R000 30 Jun 2009 30 Jun 2008 31 Dec 2008
ASSETS
Non-current
assets
Property,
plant and
equipment 106 061 101 903 108 861
Intangible
assets 533 034 573 964 580 703
Deferred
taxation 18 958 23 090 19 246
Total non-
current assets 658 053 698 957 708 810
Current assets
Inventories 664 039 779 008 800 250
Trade and
other
receivables 523 057 583 093 519 985
Taxation 10 473 1 131 8 372
Total current
assets 1 197 569 1 363 232 1 328 607
Total assets 1 855 622 2 062 189 2 037 417
EQUITY AND
LIABILITIES
EQUITY:
Ordinary share
capital 122 122 122
Share based
payment
reserve 40 247 40 247 40 247
Retained
earnings 942 006 844 960 984 239
Equity
attributable
to owners of
the parent 982 375 885 329 1 024 608
Minority - 189 1 157
interest
Total equity 982 375 885 518 1 025 765
Liabilities:
Non-current
liabilities
Long-term
borrowings 8 087 74 048 65 981
Total non-
current
liabilities 8 087 74 048 65 981
Current
liabilities
Trade and
other payables 749 865 945 690 920 850
Bank overdraft 112 432 146 774 19 698
Short-term
borrowings 2 602 4 300 4 234
Taxation 261 5 859 889
Total current
liabilities 865 160 1 102 623 945 671
Total
liabilities 873 247 1 176 671 1 011 652
Total equity
and
liabilities 1 855 622 2 062 189 2 037 417
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
% Incr Unaudited Unaudited Audited
R000 (Decr) 30 Jun 2009 30 Jun 2008 31 Dec 2008
Revenue (13,3) 1 942 199 2 240 889 4 610 920
Cost of sales (1 414 658) (1 642 232) (3 261 971)
Gross margin (11,9) 527 541 598 657 1 348 949
Administration
, selling and
distribution
expenses 6,4 (467 655) (439 558) (994 552)
Operating
profit before
investment
income (62,4) 59 886 159 099 354 397
Investment
income 13 384 15 837 52 996
Operating
profit before
finance 73 270 174 936 407 393
charges
Finance (31 980) (24 031) (71 275)
charges
Profit before
taxation 41 290 150 905 336 118
Taxation (12 807) (39 559) (84 524)
Total
comprehensive
income for the
period (74,4) 28 483 111 346 251 594
ATTRIBUTABLE
TO:
Minority
shareholders (1 157) 189 1 157
Owners of the
parent 29 640 111 157 250 437
Total
comprehensive
income for the
period (74,4) 28 483 111 346 251 594
HEADLINE
EARNINGS
RECONCILIATION
FOR THE
PERIOD:
Attributable
to owners of
the parent 29 640 111 157 250 437
Adjusted for:
Profit on
disposal of
property,
plant and
equipment (370) (210) (724)
Headline
earnings for
the period (73,6) 29 270 110 947 249 713
Number of
ordinary
shares in
issue 138 217 794 138 217 794 138 217 794
Weighted
average number
of ordinary
shares in
issue 138 217 794 144 492 195 141 329 209
Diluted
weighted
average number
of ordinary
shares in
issue 138 217 794 149 406 108 142 668 859
Headline
earnings per
share (cents) (72,4) 21,2 76,8 176,7
Earnings per
share (cents) (72,1) 21,4 76,9 177,2
Diluted
headline
earnings per (71,5) 21,2 74,3 175,0
share (cents)
Diluted
earnings per
share (cents) (71,2) 21,4 74,4 175,5
Distribution
per share
(cents) 52,0
ABRIDGED CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
R000 30 Jun 2009 30 Jun 2008 31 Dec 2008
Cash flows
from operating
activities (1 295) 78 723 245 727
Operating
profit before
working 58 800 165 562 368 872?
capital
changes
Working
capital
changes for (44 847) (50 270) (33 243)
the period
Taxation paid (15 248) (36 569) (89 902)
Cash flows
from
investment (14 710) (158 191) (189 986)
activities
Cash flows
from financing
activities (76 729) (162 903) (171 036)
Decrease in
cash and cash
equivalents (92 734) (242 371) (115 295)
Cash and cash
equivalents at
the beginning
of the period (19 698) 96 238 96 238
Cash and cash
equivalents
acquired - (641) (641)
Cash and cash
equivalents at
the end of the
period (112 432) (146 774) (19 698)
SUPPLEMENTARY INFORMATION
Unaudited Unaudited Audited
R000 30 Jun 2009 30 Jun 2008 31 Dec 2008
Net asset
value per
share (cents) 710,7 640,0 741,3
Net tangible
asset value
per share 325,1 225,4 321,2
(cents)
Capital
expenditure(R0
00) 16 245 26 133 56 481
Purchase of
new businesses
(R000) 69 525 134 370 141 119
Capital
commitments
(R000):
- approved and
contracted 5 868 14 279 29 120
- approved not
contracted 6 950 27 050 13 460
Depreciation
(R000) 18 024 14 953 33 760
ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Unaudited Unaudited Audited
R000 30 Jun 2009 30 Jun 2008 31 Dec 2008
Total equity
at the
beginning of 1 025 765 936 139 936 139
the period
Transactions
with owners: (71 873) (161 967) (161 968)
Shares
repurchased
and cancelled - (85 822) (85 823)
Distribution
to owners of
the parent (71 873) (76 145) (76 145)
Movement in
retained
earnings:
Attributable
to owners of
the parent 29 640 111 157 250 437
Movement in
minority
interest:
Attributable
to minority
shareholders (1 157) 189 1 157
Total equity
at the end of
the period 982 375 885 518 1 025 765
CONDENSED SEGMENTAL REPORTING
Group
Unaudited Unaudited Audited
R000 30 Jun 2009 30 Jun 2008 31 Dec 2008
Revenue 1 942 199 2 240 889 4 610 920
Profit before interest
and tax 59 886 159 099 354 397
Profit before tax 41 290 150 905 336 118
Total assets 1 855 622 2 062 189 2 037 417
Total liabilities 873 247 1 176 671 1 011 652
Capital expenditure 16 245 26 133 56 481
Depreciation 18 024 14 953 33 760
General Building
Materials
Unaudited Unaudited Unaudited
R000 30 Jun 2009 30 Jun 2008 31 Dec 2008
Revenue 1 337 438 1 557 965 3 171 573
Profit before interest
and tax 59 823 98 070 234 376
Profit before tax 51 722 97 903 234 194
Total assets 966 923 1 107 067 1 107 846
Total liabilities 498 938 734 690 638 626
Capital expenditure 6 920 15 381 26 830
Depreciation 7 743 6 197 13 785
Specialised Building
Materials
Unaudited Unaudited Unaudited
R000 30 Jun 2009 30 Jun 2008 31 Dec 2008
Revenue 604 761 682 924 1 439 347
Profit before interest
and tax 63 61 029 120 021
Profit before tax (10 432) 53 002 101 924
Total assets 888 699 955 122 929 571
Total liabilities 374 309 441 981 373 026
Capital expenditure 9 325 10 752 29 651
Depreciation 10 281 8 756 19 975
CORPORATE INFORMATION
Registered address First Floor, East Block, Pineslopes
Office Park, c/o The Straight and
Witkoppen Road, Lonehill
PO Box 2572, Honeydew 2040
www.iliadafrica.co.za
Directors HC Turner (chairman)*, E Beneke
(chief executive officer),
NP Goosen, RT Ririe*, MY Sibisi*
*non-executive
Transfer secretaries Link Market Services South Africa
(Pty) Ltd
11 Diagonal Street, Johannesburg 2001
PO Box 4844, Johannesburg 2000
Sponsor Bridge Capital Advisors (Pty) Ltd
27 Fricker Road, Second Floor,
Illovo 2196
PO Box 651010, Benmore 2010
Date: 24/08/2009 11:35:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
