| Fri 4 Sep 2009, 17:08 | | CMG - Cenmag Holdings - Audited Results For The Year Ended 28 February 2009 And |
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CMG
CMG
CMG - Cenmag Holdings - Audited Results For The Year Ended 28 February 2009 And
Notice Of Annual General Meeting
CENMAG HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/004821/06)
Share code: CMG ISIN code: ZAE000001533
(`Cenmag" or `the company`)
AUDITED RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2009 AND NOTICE OF ANNUAL GENERAL
MEETING
AUDITED RESULTS
Shareholders are advised that the audited results for the year ended 28 February
2009 have been restated from the reviewed results published on 1 June 2009 due
to reallocations within the income statement and balance sheet categories. The
reallocations are not material and the attributable earnings for the year has
not changed from the results previously published.
NOTICE OF GENERAL MEETING
Notice is hereby given that the annual general meeting of the company will be
held at 09h30 on Monday, 7 September 2009 at Number 3 Sandown Valley Crescent,
Sandown, Johannesburg, in order to transact the business as stated in the notice
of annual general meeting included in the Annual Report which was posted to
shareholders on 6 August 2009.
GROUP BALANCE SHEET Audited Audited
28 February 29 February
2009 2008
R`000 R`000
ASSETS
Non-current assets 7 142 7 422
Property, plant and equipment 7 029 7 422
Deferred tax 113 --
Current assets 16 041 11 623
Inventories 1 500 2 238
Trade and other receivables 5 421 4 920
Directors loan -- 3
Bank balances 9 120 4 462
Total assets 23 183 19 045
EQUITY AND LIABILITIES
Capital and reserves 14 209 10 022
Issued capital 2 186 2 186
Non-distributable reserves -- --
Distributable reserves 11 571 7 414
Non Controlling Interest 452 422
Non-current liabilities 160 2 342
Long term liabilities 32 2 252
Deferred taxation 128 90
Current liabilities 8 815 6 681
Trade and other payables 4 086 5 269
Provisions 400 4
Taxation 1 823 942
Current portion of long term 2 277 434
liabilities
Shareholders for dividend 2 2
Bank overdraft 227 30
Total equity and liabilities 23 183 19 045
Number of shares in issue (000`s) 9 600 9 600
Net asset value per share information
Net asset value per share (cents) 148.01 104.40
Net tangible asset value per share 148.01 104.40
(cents)
GROUP INCOME STATEMENTS Audited year Audited year
ended ended
28 February 29 February
2009 2008
R`000 R`000
Gross Revenue 36 286 35 702
Cost of sales (23 913) (25 346)
Gross profit 12 373 10 356
Operating costs (6 924) (6 749)
Profit from operations 5 449 3 607
Finance income 488 350
Finance cost (57) (113)
Profit before taxation 5 880 3 844
Taxation (1 693) (1 122)
Profit after taxation 4 187 2 722
Minority interest 30 40
Profit attributable to shareholders 4 157 2 682
Reconciliation of headline earnings
Net profit for the year 4 157 2 682
Adjustment for:
Profit on disposal of fixed assets 17 15
Headline earnings 4 174 2 697
Earnings per share information
Number of shares in issue (000`s) 9 600 9 600
Attributable earnings per ordinary 43.30 27.93
share (cents)
Headline earnings per share (cents) 43.48 28.09
ABRIDGED GROUP CASH Audited Audited
FLOW STATEMENTS 28 February 29 February
2009 2008
R`000 R`000
Cash flows from operating activities 4 840 6 291
Cash flows from investing activities (3) (6 545)
Cash effects of financing activities (377) 2 644
Net increase in cash and cash 4 460 2 390
equivalents
Bank at beginning of year 4 433 2 043
Cash at the end of period 8 893 4 433
SEGMENTAL REPORTING Audited year Audited year
ended ended
28 February 29 February
2009 2008
R`000 R`000
Revenue
Manufacturing and Service 16 510 16 542
Wholesaling 19 776 19 160
Total 36 286 35 702
Profit from operating activities
Manufacturing and Service 5 148 3 197
Wholesaling 301 425
Total 5 449 3 622
GROUP STATEMENT OF Share Share Distributa Minority Total
CHANGES IN EQUITY capital premium ble Interest
R`000 R`000 Reserves R`000
R`000
Balance at 01 March 96 2 090 4 732 382 7 300
2007
Net profit for the -- -- 2 682 40 2 722
year
Balance at 29 February 96 2 090 7 414 422 10 022
2008
Net profit for the -- -- 4 157 30 4 187
year
Balance at 28 February 96 2 090 11 571 452 14 209
2009
COMMENTARY
RESULTS
The board presents its audited results for the year ended 28 February 2009 in
accordance with IAS 34: Interim Financial Reporting. The company is an
investment holding company and its subsidiaries are primarily involved in the
manufacture and servicing of electromagnets and motor rewinding and the
wholesaling of electrical and related equipment.
BUSINESS OVERVIEW
In line with prevailing economic conditions, the group experienced an
exceptional increase in demand for its products. Group headline earnings per
share rose strongly by 55% on a 1.64% volume growth, from 27.93 cents earnings
per share to 43.3 cents earnings per share. Another major contributing factor to
our good results was the successful consolidation of two of our manufacturing
companies. Based on a judgement call by the directors, the company have not
appointed an audit committee for the year in terms of section 269A(1), the
benefit and the effect of it is an additional earnings of 4.00 cents per share
which is included into the bottom line of the group.
FUTURE PROSPECTS
Prospects for the year ending February 2010 are not as good, as the local and
international mining sectors entered into a recession cycle, the effect of it is
that we are facing a lower demand for material handling goods. In view of the
above, the directors are of the opinion that our future earnings per share will
be badly affected.
ACCOUNTING POLICIES AND REVIEW
The financial results have been prepared in accordance with accounting policies
that comply with International Financial Reporting Standards ("IFRS") and the
Companies Act of 1973. The accounting policies and methods of measurement and
recognition are consistent with those applied in the previous financial period.
The results have been audited by Horwath Leveton Boner, whose modified report is
available for inspection at the registered office of the company. The
modification relates to the company`s failure to appoint an audit committee as
disclosed in the Business Overview paragraph above.
DIRECTORS
Shareholders attention is drawn to the fact that Mr Victor Farkas fulfils the
roles of Chairperson, Chief Executive Officer and Financial Director of the
Company, which is a contravention of the corporate governance requirements of
the JSE Listings Requirements. The Company is aware of this contravention and
has justified it based on the size of the company, that Mr Farkas has the
necessary skills and experience and that it represents a cost saving to the
Company.
GENERAL
1. No new shares were issued and no special resolutions were passed during the
period under review.
2. No dividends were recommended or declared for the period.
3. There were no changes to the board of directors for the year under review.
Johannesburg
4 September 2009
Company Secretary Registered Office
V. Farkas M. Econ C.A. (S.A.) 30 Bisset Road, Jet Park,
PO Box 870, Isando, 1600 Boksburg
PO Box 870, Isando, 1600
Directors
V.Farkas (CEO), C.J.B. Le Roux (Executive director), B.I. Mazibuko
(Non-executive director), E.M. Greenblatt (Non-executive director)
Sponsor Transfer Office
Arcay Moela Sponsors Computershare Investor Services
(Proprietary) Limited (Proprietary) Limited
Date: 04/09/2009 17:08:02 Produced by the JSE SENS Department.
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