| Tue 1 Sep 2009, 13:31 | | KDV - KayDav - Unaudited Interim Results For The Six Months Ended 30 June 2009 |
|
KDV
KDV
KDV - KayDav - Unaudited Interim Results For The Six Months Ended 30 June 2009
KayDav Group Ltd
Incorporated in the Republic of South Africa
Registration Number: 2006/038698/06
JSE code: KDV & ISIN: ZAE000108940
("KayDav" or "the Group or "the company")
Unaudited Interim Results for the six months ended 30 June 2009
* Revenue R217 million (up 9%)
* Headline earnings per share 1.8 cents (down 47%)
* Tangible net asset value per share 43.4 cents (up 4%)
Consolidated statement of comprehensive income
Unaudited Unaudited Audited
6 months 6 months year
ended ended ended
30 June 30 June 31 December
2009 2008 2008
R R R
Revenue 217 370 707 198 860 060 440 446 378
Cost of sales (147 193 338) (137 753 149) (304 878 293)
Gross profit 70 177 369 61 106 911 135 568 085
Other income 495 070 314 615 464 062
Operating expenses (62 058 144) (46 701 513) (105 004 236)
Goodwill impairment - (89 053 849) (119 233 190)
Operating profit/(loss) 8 614 295 (74 333 836) (88 205 279)
Interest received 368 317 489 416 1 037 795
Interest paid (1 363 389) (1 198 909) (2 508 493)
Profit/(loss) before
taxation 7 619 223 (75 043 329) (89 675 977)
Taxation (2 284 322) (3 954 754) (9 392 892)
Profit/(loss) for the
period 5 334 901 (78 998 083) (99 068 869)
Other comprehensive income - - -
Total comprehensive
income/(loss)attributable
to equity holders of the
parent 5 334 901 (78 998 083) (99 068 869)
Reconciliation between
earnings and headline
earnings
Profit/(loss) for the
period 5 334 901 (78 998 083) (99 068 869)
Profit on disposal of
property, plant and
equipment (41 611) (16 402) (3 317)
Goodwill impairment - 89 053 849 119 233 190
Headline earnings
attributable to equity
holders 5 293 290 10 039 364 20 161 004
Weighted average number
of shares in issue 295 232 716 295 232 716 295 232 716
Basic and diluted
earnings/(loss) per share
(cents) 1.8 (26.8) (33.6)
Headline earnings per
share (cents) 1.8 3.4 6.8
Consolidated statement of financial position
Unaudited Unaudited Audited
6 months 6 months year
ended ended ended
30 June 30 June 31 December
2009 2008 2008
R R R
ASSETS
Non-current assets 51 746 822 76 059 497 52 210 613
Plant and equipment 34 533 009 29 913 677 35 914 574
Goodwill 14 302 804 44 482 145 14 302 804
Deferred taxation 2 911 009 1 663 675 1 993 235
Current assets 145 300 133 151 349 234 162 232 239
Inventories 59 577 249 78 268 527 87 454 624
Trade and other receivables 76 532 431 64 374 360 67 956 516
Cash and cash equivalents 9 190 453 7 685 774 6 821 099
Taxation - 1 020 573 -
197 046 955 227 408 731 214 442 852
EQUITY AND LIABILITIES
Capital and reserves 142 521 573 157 257 458 137 186 672
Share capital 295 295 295
Share premium 229 477 552 229 477 552 229 477 552
Accumulated loss (86 956 274) (72 220 389) (92 291 175)
Non-current liabilities 7 166 850 11 069 815 10 494 405
Instalment sale liabilities 6 603 435 10 153 336 9 195 960
Deferred taxation 563 415 916 479 1 298 445
Current liabilities 47 358 532 59 081 458 66 761 775
Trade and other payables 36 458 235 42 653 185 53 197 846
Current portion of
instalment sale liabilities 2 782 211 4 944 159 3 501 529
Bank overdraft 3 919 999 9 106 778 7 248 796
Taxation 681 978 - 269 085
Provisions 3 516 109 2 377 336 2 544 519
197 046 955 227 408 731 214 442 852
Shares in issue at period-end 295 232 716 295 232 716 295 232 716
Net asset value per share
(cents) 48.3 53.3 46.5
Tangible net asset value per
share (cents) 43.4 38.2 41.6
Condensed consolidated statement of cash flows
Unaudited Unaudited Audited
6 months 6 months year
ended ended ended
30 June 30 June 31 December
2009 2008 2008
R R R
Cash flows from operating
activities 9 803 618 (1 437 575) 10 237 158
Cash flows from investing
activities (793 625) (8 225 937) (16 507 360)
Cash flows from financing
activities (3 311 842) 5 418 358 3 018 355
Net increase/(decrease) in
cash and cash equivalents 5 698 151 (4 245 154) (3 251 847)
Cash and cash equivalents at
beginning of period (427 697) 2 824 150 2 824 150
Cash and cash equivalents at
end of period 5 270 454 (1 421 004) (427 697)
Condensed statement of changes in equity
Unaudited Unaudited Audited
6 months 6 months year
ended ended ended
30 June 30 June 31 December
2009 2008 2008
R R R
Balance at the beginning
of the period 137 186 672 236 255 541 236 255 541
Total comprehensive
income/(loss) for the
period 5 334 901 (78 998 083) (99 068 869)
Balance at the end of
the period 142 521 573 157 257 458 137 186 672
Goodwill reconciliation
Goodwill at the
beginning of the period 14 302 804 133 535 994 133 535 994
Impairment - (89 053 849) (119 233 190)
Goodwill at the end of
the period 14 302 804 44 482 145 14 302 804
Segmental analysis
Unaudited Unaudited Audited
6 months 6 months year
ended ended ended
30 June 30 June 31 December
2009 2008 2008
R R R
Segmental revenue
Board distribution 206 337 795 195 204 646 430 638 584
Other 20 647 957 13 269 699 32 935 490
Internal revenue (9 615 045) (9 614 285) (23 127 696)
Net revenue 217 370 707 198 860 060 440 446 378
Segmental results
Board distribution 9 983 243 14 768 862 32 898 267
Other (1 368 948) (48 849) (1 870 356)
Operating profit before
goodwill impairment
and interest 8 614 295 14 720 013 31 027 911
Goodwill impairment - (89 053 849) (119 233 190)
Operating profit/(loss) 8 614 295 (74 333 836) (88 205 279)
Commentary
Introduction
KayDav Group Ltd ("KayDav" or "the Group") specialises in the distribution and
adding of value to wood-based panels, which are products manufactured through
the compression of wood waste into a solid panel. Wood-based panels are used
for a variety of purposes in the construction, furniture manufacturing and
shopfitting industries.
Financial results
The difficult trading conditions experienced during the year ended 31 December
2008 continued and intensified during the first six months of the 2009
financial year.
Excluding sales from new businesses opened during the second half of 2008,
turnover for the six months ended 30 June 2009 was 12% below that of the
previous corresponding period. Including sales from these new businesses,
turnover was 9% higher than that of the six months ended 30 June 2008.
The Group`s debtors` book deteriorated significantly during the six months to
30 June 2009. Due to the difficult trading environment the bad debt expense of
R8.1 million was R5.9 million more than that of the corresponding prior period
due largely to an increase in the provision for bad debts of R4.7 million.
The decrease in sales activity and the increase in the bad debt expense had a
significant negative impact on headline earnings. Headline earnings per share
of 1.8 cents represents a decrease of 47% compared to headline earnings of 3.4
cents per share for the six months ended 30 June 2008. When the after-tax
effect of the increase in the bad debts expense is added back to headline
earnings, the adjusted headline earnings per share is 3.2 cents.
With the exception of the 2008 financial year, historically the second half of
the year accounts for the larger part of the full year operating profits.
The Group`s balance sheet remains strong with a tangible net asset base of
R128.2 million (June 2008: R112.8 million) and total interest-bearing debt of
R13.3 million (June 2008: R24.2 million).
There has been a significant reduction in the level of inventories carried
compared to 30 June 2008 and 31 December 2008 due to a management drive to
increase working capital efficiencies.
Consequently, reduced purchasing activity has led to the reduction in the level
of creditors at the period-end.
In addition, the board of directors of KayDav believes that the Group`s solid
financial structure will allow it to weather the current recessionary
environment.
Prospects
Challenging conditions are predicted to persist throughout the current
financial year with moderate growth envisaged during the 2010 financial year.
Management`s focus is the continued implementation of its strategy to increase
the Group`s market share, improve effective working capital management and to
achieve a higher return on capital employed.
Dividends
No dividends were declared during the period under review.
Basis of preparation
The interim financial statements have been prepared in accordance with
International Financial Reporting Standards, the requirements of IAS 34
(Interim Financial Reporting) and in compliance with the JSE Listings
Requirements and the Companies Act of South Africa.
The accounting policies applied in preparing these interim financial statements
are consistent with those presented in the annual financial statements for the
year ended 31 December 2008 except for the application of IAS 1 (Presentation
of Financial Statements) and IFRS 8 (Segmental Reporting) which are applicable
from years commencing 1 January 2009 and require additional disclosure.
Appreciation
The board extends its appreciation to our management and staff for their
efforts during this reporting period. We also thank our customers and suppliers
for their continued support.
On behalf of the board
I H Stern G F Davidson
Chairman Chief Executive Officer
Cape Town, 27 August 2009
Corporate information
Executive Directors: G F Davidson (CEO), G Davidson, M Slier (CFO), J Katz
Non-executive Directors: I H Stern (Chairman), J Hertz
Registration Number: 2006/038698/06
Registered Address: 105 Bamboesvlei Road, Ottery, 7800
Postal Address: PO Box 272, Ottery, 7808
Telephone: 021 704 7060 Facsimile: 021 704 2082
Company Secretary: Probity Business Services (Proprietary) Limited
Transfer Secretaries: Link Market Services South Africa (Proprietary) Limited
Sponsor: Java Capital (Proprietary) Limited
1 September 2009
Date: 01/09/2009 13:31:47 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.
