| Thu 17 Sep 2009, 7:05 | | WTL - William Tell Holdings - Abridged Audited Results for the Year Ended 30 |
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WTL
WTL
WTL - William Tell Holdings - Abridged Audited Results for the Year Ended 30
June 2009 and Notice of Annual General Meeting
WILLIAM TELL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2004/030045/06)
Share code: WTL & ISIN: ZAE000098133
("William Tell" or "the Company" or "the Group")
ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2009 AND NOTICE OF ANNUAL
GENERAL MEETING
Commentary
Overview of the business
William Tell is a focused manufacturer of wood-based panels. The Group produces
chipboard, adds value by applying melamine surfaces and adds further value by
producing systems and components for the building and related industries.
Products are marketed under the Evopan and William Tell brand names. The client
base ranges from individual contractors to large businesses in the built-in
furniture, office furniture, shop-fitting, exhibition, case goods, wholesale,
merchandising, retailing and related industries in Southern Africa.
Operational review
Trading has been exceptionally difficult since December 2007 and sales for the
period under review were 18% below 2008. Gross margins have been reduced by
aggressive pricing, higher input costs (energy, resin and timber) and a change
in the product mix. Operating profit has fallen 74% to R8.9m compared to R33.7m
last year.
Operating costs were 14% lower as a result of tight management control over
distribution transport and staff costs.
The total investment to date on the Chamdor facility is R187.9m, of which R58.2m
was spent in the period under review. The final cost is estimated to be R205m.
The capital expenditure spent in this period together with increased working
capital requirements in particular trade and other receivables has reduced cash
balances to R14.6m and increased interest bearing debt to R106.1m at the end of
the period. Management continues to control working capital effectively.
Prospects
Our competitors have closed four plants during the year. Whilst this has reduced
the supply/demand imbalance, there is still a surplus of wood based panel
production and profit margins will continue to be under pressure.
Good progress has been made at the Chamdor plant and we are pleased with the
quality of the board produced. The plant is expected to be in full production by
30 September 2009. The flexibility of our plant and the increase in our product
range will provide better opportunities.
The capacity of the Chamdor facility will allow us to establish our thin board
plant at the appropriate time.
Directors
Ralph Patmore joined the board on 1 February 2009 and was appointed Chairman on
that date. Nirvana Govender was appointed Financial Director on 1 June 2009.
Subsequent events
The Group entered into a binding sale agreement to dispose of the Booysens
property in line with our long term strategy of consolidating all our operations
on our new Chamdor site. The proposed date of transfer is 1 October 2009. The
consideration receivable for this sale is R46 million. The holding cost of this
property is classified as "Non-current assets held for sale" at year end.
Dividends
In the light of the current market conditions, the directors regard it prudent
not to declare a dividend.
Basis of preparation
These abridged consolidated annual financial statements have been prepared in
accordance with International Financial Reporting Standards ("IFRS"), IAS 34:
"Interim Financial Reporting", the South African Companies Act, as amended, and
the Listings Requirements of the JSE Limited. The principal accounting policies
used in the preparation of the reviewed results for the period ended 30 June
2009 are consistent with those applied for the year ended 30 June 2008.
Audit opinion
The audited results for the year ended 30 June 2009 have been reviewed by the
Group`s auditors, BDO Spencer Steward (Jhb) Inc, and the unmodified audit report
is available for inspection at the Company`s registered office.
Notice of annual general meeting
Notice is hereby given that the Annual General Meeting of shareholders will be
held at 11/23 Andrea Road, Reuven Estates, Booysens on Wednesday, 18 November
2009 at 09:00, to transact the business stated in the notice of the Annual
General Meeting contained in the Annual Report, which Annual Report is in the
process of being prepared and which will be posted to shareholders by no later
than 30 September 2009.
BY ORDER OF THE BOARD
R B PATMORE (Chairman)*, B P LOK (Chief Executive Officer), N Govender
(Financial Director), W H Lok, N de Winnaar, M G Meehan*
*Independent, non-executive
17 September 2009
Abridged Audited Consolidated Income Statement
Audited Audited
June June
2009 2008
R`000 R`000
Revenue 134,551 164,166
Cost of sales (104,110) (105,422)
Gross profit 30,441 58,744
Other income 1,154 1,501
Administrative and other operating (22,800) (26,520)
expenses
Operating profit 8,795 33,725
Investment Income 2,196 9,099
Foreign exchange loss (403) (1,175)
Interest paid (3,418) (4,811)
Profit before taxation 7,170 36,838
- -
Taxation (1,611) (9,553)
Profit for the period 5,559 27,285
Depreciation and amortisation for the 6,103 5,100
period
Basic and diluted basic earnings per 4.4 21.8
share (cents)
Headline and diluted headline earnings 5.1 21.7
per share (cents)
Dividends per share (cents) - 5
Reconciliation of basic earnings to
headline earnings
Basic earnings 5,559 27,285
Adjusted by Loss/(Profit) on sale of 802 (116)
property, plant and equipment
Headline earnings 6,361 27,169
Number of ordinary shares in issue 125,000 125,000
(`000)
Weighted average number of shares 125,000 125,000
(`000)
Abridged Audited Consolidated Statement of Changes in Equity
Audited Audited
June June
2009 2008
R`000 R`000
Share Capital
Balance at the beginning of the year 1,250 1,250
Shares issued during the period - -
Balance at the end of the period 1,250 1,250
Share premium
Balance at the beginning of the year 179,265 179,758
Share issue expenses - (493)
Balance at the end of the period 179,265 179,265
Accumulated profit and other reserves
Balance at the beginning of the year 25,442 4,407
Profit for the period 5,559 27,285
Dividend paid during the period - (6,250)
31,001 25,442
Abridged Audited Consolidated Balance Sheet
Audited Audited
June June
2009 2008
R`000 R`000
ASSETS
Non-current assets 267,151 250,532
Property, plant and equipment 267,097 250,453
Intangible assets 54 79
Current assets 62,067 95,537
Inventories 24,675 26,941
Trade and other receivables 22,410 18,701
Current taxation receivable 387 99
Cash and cash equivalents 14,595 49,796
Non-current assets held for sale 33,321 -
362,539 346,069
EQUITY & LIABILITIES
Capital & reserves 211,516 205,957
Share capital 1,250 1,250
Share premium 179,265 179,265
Accumulated profit 31,001 25,442
Non-current liabilities 104,769 108,069
Interest bearing borrowings 80,515 85,722
Deferred Taxation 21,012 19,149
Deferred Income 3,242 3,198
Current liabilities 46,254 32,043
Trade and other payables 19,460 21,164
Interest bearing borrowings 25,582 9,502
Provisions 1,212 974
Current taxation payable - 403
362,539 346,069
Net asset value per share (cents) 169 165
Capital expenditure for the period 58,572 118,949
(R`000)
Abridged Audited Consolidated Cash Flow Statement
Audited Audited
June June
2009 2008
R`000 R`000
Net cash generated by operations 12,830 31,123
Net finance (costs)/income (1,625) 3,113
Dividends paid - (6,250)
Taxation paid (1,250) (7,634)
Cash flow from operating activities 9,955 20,352
Cash flow from investing activities (56,029) (125,269)
Cash flow from financing activities 10,873 21,860
Movement in cash & cash equivalents (35,201) (83,057)
Cash & cash equivalents at the 49,796 132,853
beginning of the year
Cash & cash equivalents at the end of 14,595 49,796
the period
Segment Report
This is a single segment group and no segmental
reporting is provided.
Registered address:
11/23 Andrea Road
Reuven Estate
Booysens, 2016
Company Secretary:
Sirkien van Schalkwyk
No 1 Carlsberg
430 Nieuwenhuyzen Street
Erasmuskloof, 0048
(P O Box 4896, Rietvalleirand, 0174)
Transfer Secretaries:
Computershare Investor Services (Proprietary) Limited
Ground Floor
70 Marshall Street
Johannesburg, 2001
(P O Box 61051, Marshalltown, 2107)
Designated and Corporate Advisor:
PSG Capital (Proprietary) Limited
Building 8
Woodmead Estate
1 Woodmead Drive
Woodmead, 2198
(P O Box 987, Parklands, 2121)
Registered auditors:
BDO Spencer Steward (Johannesburg) Inc.
13 Wellington Road
Parktown, 2193
www.williamtellholdings.co.za
Date: 17/09/2009 07:05:02 Produced by the JSE SENS Department.
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