| Wed 14 Oct 2009, 16:00 | | AGI - AG Industries - Reviewed Results For The Year Ended 30 June 2009 |
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AGI
AGI
AGI - AG Industries - Reviewed Results For The Year Ended 30 June 2009
AG INDUSTRIES LIMITED
("AGI" or "the Group")
Registration number: 1980/004051/06
Share code: AGI & ISIN: ZAE000039467
AG Industries Limited
Reviewed results for the year ended 30 June 2009
SALIENT FEATURES
- F2009 the worst year in the Group`s 29-year history
- Revenue decreased by 8% (2008: increased 4%)
- Loss from operations R78,3 million (2008: profit R27,5 million)
- Headline loss per share of 72,8 cents per share (2008: 15,4 cents per
share)
- Focused financial and operational re-engineering process implemented
- Sale of International and Sheerline divisions on track
Commentary
Introduction
The year to 30 June 2009 can be described as the worst in AGI`s 29-year
history. The current international economic climate has been well documented
and the fall-out created from the global credit crisis is well known in
South Africa. Within the construction sector, the residential building
sector has been severely impacted by the dramatic change in economic
conditions. As AGI is heavily dependent on residential development, the
rapid decline from a period of unprecedented market demand to the current
slump has had a dramatic impact on the trading performance of the Group.
During 2007 at the height of the construction boom, AGI embarked on an
aggressive expansion programme to increase its capacity to meet the rising
demand for glass and aluminium building related products. Included were a
number of new premises and an increase in headcount to cope with the
anticipated sales growth. Trading became increasingly difficult in the
second half of the current financial year in all the Group`s markets as the
effects of the credit freeze impacted demand. There was a significant drop
in new building construction in both the residential and commercial sector
of the market, as well as declining volumes in the manufacturing sector. In
South Africa, the strength of the Rand resulted in importers entering the
market, placing further competitive pressure on the Group. The country`s
infrastructure spend programme partially alleviated the position, but could
not compensate for the weak housing construction market. As a result of all
these factors, the Group was left with serious financial and funding issues.
Actions taken
The three-year restructure plan adopted by the Group in the prior financial
year was focused on operational efficiencies but it did not anticipate the
significant decline in demand experienced in the second half of the
financial year. This has now necessitated a further restructure of the
Group.
During the current financial year, the Group continued its focus on
efficiencies by instituting further ongoing cost reduction programmes. In
South Africa, these included short-time working weeks, retrenchments,
consolidation of certain operations and effective working capital
management. However, these actions had little or no impact in buffering the
high fixed costs of the Group`s various large manufacturing facilities as
revenues and margins deteriorated, consequently the Group incurred
significant operating losses, as set out in the financial review below.
In light of these losses, the Group is implementing a financial restructure
programme to further right-size the Group and to retain the support of its
financiers. Management consider that they have explored all options to raise
capital and to sell non-core assets to recapitalise the Group effectively.
The Group signed agreements for the sale of both the International and
Sheerline divisions in September 2009. Although these sales are subject to
regulatory approvals, the Group expects this process to be completed during
the first half of the 2010 financial year where approximately R72 million in
cash will be realised.
During the current financial year, the Group raised additional short-term
funding of R25,0 million to meet its ongoing current commitments which
included some restructure costs. Furthermore, the Group is in discussions
with its bankers regarding the recapitalisation of the Group. Should this be
successful, additional new capital will be injected into the Group and
gearing will be substantially reduced.
The restructure plan includes the simplification of the Group structure,
with a substantially reduced overhead cost structure. Plans to right-size
the Group into a sustainable business include consolidating the Gauteng
manufacturing operations into one location at the Roodekop facility,
centralising operations in the Western Cape, the sale of the non-core
assets, together with the renegotiation of certain rental lease agreements.
This plan will reduce headcount, rationalise sites as well as improve
organisational integration, which would restore the Group to profitability
at current volumes.
Financial review
Income statement
Group revenue decreased by 8% to R1,1 billion (2008: R1,2 billion) as a
result of a significant drop in revenue in the second half of the financial
year. The decrease in revenue, along with a 6% decrease in material gross
margins resulting from price compression due to all-time low demand,
resulted in the profit before depreciation decreasing to a loss of R48,2
million (2008: profit R54,8 million). This loss includes once-off costs of
around R24,9 million relating to retrenchment costs, together with the
selling of slow moving stock at below cost to generate cash. Although the
Group managed to reduce total overheads in the current year, it was not
enough to offset the decrease in revenue and material gross profit.
The loss before net financing costs and share of profit of associates was
further exacerbated by the impairment of R150,9 million (2008: R1 million)
of goodwill, property, plant and equipment ("PPE") and assets held for sale.
As certain PPE was operating at levels well below capacity, the value of
these assets were impaired, either fully or partially, in line with their
value in use. An impairment of goodwill was also necessary in respect of the
Finished Goods, Extrusions and Services divisions due either to continued
losses or the discontinuation of certain product lines.
There was a further impairment of goodwill in both the International and
Sheerline divisions as these businesses will be sold based on a net tangible
asset valuation. Given the valuation mechanism used in the sale of
Sheerline, a further fair value adjustment was provided for in respect of
the write-down of the assets held for sale, as a result of an expected
shortfall on the disposal of this division.
Although gearing increased significantly from 67% to 346%, net financing
costs decreased by 8% to R43,7 million (2008: R47,4 million) due to interest
rate cuts in the year under review.
A loss before net financing costs and share of profit of associates of
R226,4 million (2008: profit R25,5 million) was incurred due to the lower
operating margins resulting from the Group`s underutilisation in capacity,
increased depreciation and the impairment of assets.
Associate companies contributed a decreased share of profit of R1,1 million
(2008: R2,9 million) as a result of the impact of the decline in the
residential and autoglass sector of the market.
The Group did not receive any tax relief in the current year due to the
reversal of deferred taxation assets previously raised, the non-raising of
deferred taxation assets in the current year and the non-deductibility of
goodwill impairments. Management deemed it prudent to reverse the deferred
taxation assets previously raised on taxation losses following the continued
losses of the previous two years. The Group has approximately R333 million
(2008: R199 million) of tax losses to offset against future taxable income.
All of the above factors resulted in a loss attributable to ordinary
shareholders of R297,4 million (2008: loss R33,2 million) and a basic and
headline loss per share of 145,6 cents per share and 72,8 cents per share
respectively (2008: loss of 16,3 cents per share and 15,4 cents per share
respectively).
Balance sheet and cash flow
The working capital to revenue ratio improved to 21% (2008: 25%) as a result
of improved working capital management, despite some of the Group`s major
creditors reducing both terms and limits. Cash flow from operations before
working capital changes was an outflow of R45,0 million (2008: inflow R59,3
million) due to the operating losses. This was offset by a reduction in
working capital of R78,1 million (2008: increase R38,2 million). This
resulted in the net cash outflow from operating activities decreasing to
R7,6 million (2008: R52,9 million).
Gearing deteriorated to 346% (2008: 67%) as a result of the substantial
decrease in the Group`s equity due to the increased operational losses, the
impairment of unproductive assets and goodwill, the fair value adjustments
on assets held for sale and the reversal and non-raising of deferred
taxation assets on tax losses.
Total capital expenditure ("capex") for the financial year was R22,7 million
(2008: R48,4 million), of which R15,7 million was incurred in the first half
of the year.
Capex on PPE reduced to R19,6 million (2008: R34,3 million). Replacement
capex constituted 68% (2008: 73%) of the capex on PPE. While the Group has
sufficient underutilised capacities at present, capital expenditure
committed or authorised for the 2010 financial year has been drastically
curtailed to R7,6 million. This relates mainly to replacement dies in the
Extrusions Division of R4,9 million.
Additional investments in subsidiaries of approximately R3,1 million (2008:
R14,1 million) were made during the year under review in terms of an
historic agreement to acquire the final 7,3% of West Cape Safety Glass (Pty)
Limited ("West Cape") from the minority shareholder for a cash consideration
of R3,1 million, effective 1 November 2008. West Cape is now a whollyowned
subsidiary.
Operational review
Southern African operations
The Southern African operations saw gross revenue (inclusive of inter-group
revenue) decline 13% to R1,3 billion (2008: R1,5 billion), mainly as a
result of a sharp decline in the residential and commercial sectors. This
put pressure on the overhead to revenue ratios and operating margins, as
demand and selling prices dropped, resulting in a loss from operations of
R70,6 million (2008: profit R15,7 million).
Unbeneficiated and Value-Added Glass
This division, which consists of local Unbeneficiated and Value-Added Glass,
contributed around 39% (2008: 36%) to the Group`s revenue. Revenue decreased
by 3% to R568 million (2008: R587 million).
Unbeneficiated Glass
Revenue in Unbeneficiated Glass (wholesale distribution of bulk and cut to
size glass) decreased by 9% to R293 million (2008: R321 million). This was
due to the sharp decline in both residential and commercial activity in the
second half of the year under review.
Although overheads were reduced in the first half of the year, it was
inadequate to counter the effects of the sharp decline in revenue in the
second half of the financial year. The operating margin declined to -1,6%
(2008: 5,6%).
The Group will continue to reduce the overhead to revenue ratio in line with
economic activity.
Value-added Glass
Revenue increased by 3% to R275 million (2008: R266 million) mainly as a
result of the trading operations of Ralphs Mirror and Glass (Pty) Limited
being included for the full 12 months in the current year (the increase
would have been 0,4% had it not been included). However, the increase in the
overhead to revenue ratio following the underutilisation of capacity in all
tempering facilities resulted in the operating margin decreasing
significantly to 3,7% (2008: 11,1%). The division has impaired one of its
tempering furnaces, with a net book value of R6,2 million, as it was idle in
the current year due to excess tempering capacity within the Group.
The Group will continue to right-size this business to the current economic
activity, focusing on the non-residential market.
Value-added Aluminium
This division contributed around 36% (2008: 42%) to Group revenue. It
consists of Finished Goods and the Extrusions manufacturing facility at
Roodekop. Following the sharp economic slowdown in residential markets,
revenue in this division decreased by 22% to R533 million (2008: R686
million). Despite significant overhead reductions in the current year,
operating margins were severely impacted by the drop in revenues and margins
as a result of the decrease in demand and the deflationary effect of the
aluminium commodity price during the year
under review.
Finished Goods
Revenue declined by 18% to R314 million (2008: R385 million). The operating
margin decreased significantly to -4,9% (2008: 1,7%) as a result of the
drastic fall in market demand. Although significant overhead reductions were
achieved, it did not abate the extent of the rapid decline in demand,
particularly in the second half of the financial year.
Consequently, goodwill and PPE of R47,0 million and R14,4 million were
impaired respectively.
The strategy of this division is to right-size the business to the current
economic activity.
Extrusions (Roodekop)
Revenue decreased by 27% to R219 million (2008: R301 million), as a result
of a decrease in inter-group revenue as well as the dramatic decline in
commodity prices, particularly in the second half of the year under review.
The decrease in revenue was substantially offset by a decrease in overheads.
This resulted in the operating loss in this division improving to R9,1
million (2008: loss R21,7 million). Despite the significant improvement year
on year, PPE amounting to R18,5 million was impaired in the current year as
a result of the continued losses in this division.
The focus of this division will be to continue to improve efficiencies,
while maintaining volumes.
Sheerline
Sheerline contributed 14% (2008:12%) to Group revenue. Although revenue
increased by 3% to R203 million (2008: R198 million), both operating margin
and prices were impacted due to the deflationary effects on the aluminium
commodity price, coupled with a sharp decline in the residential sector of
the market in the second half of the financial year. The operating loss
therefore increased to R8,4 million (2008: profit R8,0 million) and the
operating margin decreased significantly to -4% (2008: 4%).
In line with management`s decision to dispose of non-core assets to reduce
the Group debt, an agreement was concluded with AGI Solutions (Pty) Limited,
a subsidiary of the Group, and Wispeco Limited, a creditor of the Group, for
the sale of the going concern of the Sheerline Division for a minimum of R45
million and a maximum of R50 million.
International operations
The Group`s international businesses contributed 12% (2008: 11%) to Group
revenue. Revenue increased by 5% to R182 million (2008: R174 million). Due
to a drop in margins as demand slowed, this business posted an operating
loss of R7,7 million (2008: profit R11,9 million).
Both the United Kingdom and German businesses showed decreased revenue,
profits and margins due to tougher market conditions. Mauritius continued to
benefit from the boom in construction, with South East Asia breaking even in
its first full year of trading.
In line with management`s decision to dispose of non-core assets, a heads of
agreement for the sale of the International business was concluded in April
2009 to a related party. The disposal was concluded on 29 September 2009.
The sale was concluded on a net tangible asset basis, which resulted in the
impairment of goodwill amounting to R23,2 million as at 30 June 2009.
In line with the requirements of the JSE Limited an announcement showing the
financial effects of the Sheerline and International disposals will be
published in due course. The effective date of both the Sheerline and
International disposals will be the first business day of the month
following the fulfilment or waiver of certain suspensive conditions.
Prospects
As trading conditions are expected to remain difficult, the Group continues
the implementation of both the operational and financial restructure plan,
the objective of which is to reduce the costs and scope of operations so
that profitability will be restored at present volumes and give the Group a
solid financial structure.
This plan involves further consolidation of manufacturing operations, a
critical review of the organisational structure to eliminate duplication and
realise synergies and a rationalisation of the national footprint, all of
which should result in significant savings. The main focus will be to align
the business to best utilise the Group`s capacity by changing the Group`s
structure to an integrated organisation with a substantially reduced
overhead cost structure. The intention is to substantially reduce headcount
through site and system rationalisation and organisational integration
without damaging the core business of the Group and retaining sufficient
capacity for growth.
The restructure is expected to cost around R36 million, which includes
retrenchment, consolidation programmes and lease breakage costs. This will
be financed out of the sale proceeds of the Sheerline and International
divisions. These costs have not been accrued for at 30 June 2009 as the plan
had not yet been implemented at this date.
As part of the financial restructure programme, the Group is in discussions
with various capital investors, bankers and other financiers to reduce
interest-bearing debt (borrowings) to match the size of the business going
forward and to ensure that the Group has sufficient funding and support from
the bankers for the ensuing year. It is important to note that the
restructure programme could not take place without the continued support of
our bankers in which event the Group would not continue as a going concern.
In this regard, the Group`s bankers have accorded an additional facility of
R25 million to assist the Group until it is able to effect the restructure.
The facilities are reviewed regularly subject to certain milestones being
achieved during the financial restructure of the Group. Furthermore,
significant progress has been made with a potential capital investor and it
is expected that an announcement in this regard may be made early in
November 2009.
Going concern
As a result of the Group`s high gearing and current levels of trading
losses, coupled with the recessionary effects of the economy having a
continued impact on the Group`s liquidity, the priority of the Group remains
cash generation and realising value in both inventory and receivables. The
Group`s financiers remain fully apprised of the Group`s results, liquidity
challenges and future financial restructure plans. The Board acknowledges
the continued support of the Group`s financiers and availability of current
funding facilities, together with a need to recapitalise the business by way
of a capital injection, remains vital to its future and success.
At the time of approving the results for the year ended 30 June 2009, there
were various material uncertainties relating to events or conditions that
might cast significant doubt upon the Group`s ability to continue as a going
concern. With this in mind, the directors advise that the Group still
requires certain approvals from both the regulatory authorities and from
shareholders for the approval of the sale of non-core assets and the
recapitalisation of the Group to affect the financial restructure, as
discussed above. This, together with the support from the Group`s
financiers, should ensure the success of the financial and operational
restructure.
Although the auditors require certain approvals from the regulatory
authorities and shareholders in general meeting, which were not yet
available at the date of this report (see Review report below), the
directors are of the opinion that these requirements will be met. Taking
full cognisance of the issues referred to above, including the proposed sale
of the non-core assets, the current restructure plans and the sales forecast
going forward, the directors believe the going concern assumption to be
appropriate.
Should any of the critical requirements for the restructure not be met, an
appropriate announcement will be made.
Changes in directorate
Mr HF Brown was appointed as an Independent Non-Executive Director with
effect from 28 February 2009.
Mr AA Barrell, the previous Group Chief Executive Officer, resigned with
effect from 30 March 2009 and assumed the role of Non-Executive Deputy
Chairman.
Mr RJ Douglas was appointed as the Group Chief Executive Officer with effect
from 30 March 2009.
Mrs J Martingano, the Managing Director of Africa Glass SA Holdings (Pty)
Limited, resigned as Managing Director of the Southern African Operations
with effect from 30 March 2009. She remained with the Group as an Executive
Director until 30 June 2009, after which she resigned to become a Non-
Executive Director.
Mr CP Kalil resigned as the Managing Director of the Aluminium Division and
that of an Executive Director with effect from 30 April 2009.
Accounting policies and basis of preparation
The condensed financial statements for the year ended 30 June 2009 were
prepared in accordance with the International Accounting Standard 34 (IAS
34: Interim Financial Reporting), the Companies Act and the JSE Limited
Listing Requirements. The condensed financial statements are prepared on the
historical cost basis except for the revaluation of financial instruments.
The principle accounting policies adopted for the year ended 30 June 2009
are consistent with those applied for the year ended 30 June 2008 in terms
of IFRS. During the year, the Group adopted IAS 27 (Revised) - Consolidated
and Separate Financial Statements, which is effective for annual periods
beginning on or after 1 July 2009. The Group has elected the early adoption
of this standard which has also resulted in the early adoption of IFRS 3
(Revised) - Business Combinations. The impact of this is that the goodwill
arising on the minority interest acquired in a subsidiary has been
recognised directly to equity.
Review report
The results for the year ended 30 June 2009 have been reviewed by the
Company`s auditors, Deloitte & Touche. An adverse review opinion has been
expressed on the accompanying financial information as follows: "Based on
the information provided to us by management, the Group is in the process of
obtaining new funding and renegotiating current bank facilities, which the
Group is dependent on to continue as a going concern. The Group has the
conditional continued financial support of the banks subject to certain
suspensive conditions with regards to the sale of non-core assets and
recapitalisation of the Group being finalised and the shareholder`s approval
being obtained. These events indicate a material uncertainty which may cast
significant doubt on the Group`s ability to continue as a going concern and
therefore may be unable to realise its assets and discharge its liabilities
in the normal course of business. Our review indicates that the financial
statements are prepared on the going concern basis which, in our judgement,
may be inappropriate in the circumstances." A copy of the review report is
available for inspection at the Company`s registered office.
Subsequent events
No material events have occurred in the period between year-end and the date
of this report other than the sales of the Sheerline and International
divisions.
Distribution to shareholders
Given the current performance and liquidity constraint of the Group, the
current economic climate and the costs of restructure, the Board deems it
prudent not to propose or declare a capital distribution, dividend or
capitalisation share award for the year under review.
For and on behalf of the Board
RJ Douglas
Group Chief Executive Officer
MJE Geldenhuys
Group Financial Director and Company Secretary
14 October 2009
Condensed consolidated income statement
for the year ended 30 June
Reviewed Audited
year ended year ended
30 June 30 June
2009 2008
R`000 R`000
Revenue 1 128 663 1 222 588
(Loss)/profit before depreciation (48 174) 54 842
Depreciation (30 172) (27 306)
(Loss)/profit from operations (78 346) 27 536
Operating margin (%) (7) 2
Non-trading items
Loss on disposal of property,
plant and equipment (2 655) (697)
Profit on disposal of investment 5 556 -
Loss on disposal of associate - (356)
Impairment of property, plant
and equipment (55 696) (962)
Impairment of goodwill (82 760) -
Fair value adjustment of assets held for sale (12 467) -
(Loss)/profit before net financing costs
and share of profit of associates (226 368) 25 521
Net financing costs (43 669) (47 416)
Share of profit of associates 1 110 2 932
Loss before taxation (268 927) (18 963)
Taxation (27 576) (13 290)
Loss for the year (296 503) (32 253)
Attributable to:
Equity holders of the parent company (297 386) (33 242)
Minority interest 883 989
Basic loss per share
Number of ordinary shares in issue (`000) 205 626 205 626
Weighted average number of ordinary
shares in issue (`000) 204 261 204 149
Diluted number of ordinary shares in
issue (`000) 204 261 207 198
Basic loss per ordinary share (cents) (145,6) (16,3)
Diluted basic loss per ordinary share (cents) (145,6) (16,0)
Headline loss per share
Reconciliation:
Loss for the year attributable to
equity holders of the parent company (297 386) (33 242)
Loss on disposal of property,
plant and equipment 2 655 697
Profit on disposal of investment (5 556) -
Loss on disposal of associate - 356
Impairment of property, plant
and equipment 55 696 962
Impairment of goodwill 82 760 -
Fair value adjustment of assets held for sale 12 467 -
Tax effect of headline adjustments 722 (196)
Headline loss (148 642) (31 423)
Headline loss per ordinary share (cents) (72,8) (15,4)
Diluted headline loss per ordinary
share (cents) (72,8) (15,2)
Group segmental analysis
for the year ended 30 June
Inter-
segment
Southern sales Total
Africa International eliminated Group
R`000 R`000 R`000 R`000
Geographical
Revenue:
Reviewed year ended
30 June 2009 1 288 372 182 121 (341 830) 1 128 663
% to total 88 12
Audited year ended
30 June 2008 1 459 569 173 900 (410 881) 1 222 588
% to total 89 11
Result:
(Loss)/profit from
operations
Reviewed year ended
30 June 2009 (70 622) (7 724) - (78 346)
% to total 90 10
Audited year ended
30 June 2008 15 670 11 866 - 27 536
% to total 57 43
Reviewed Audited
year ended year
ended
30 June 30 June
2009 2008
R`000 % R`000 %
Business segment
Revenue:
Unbeneficiated products 460 630 31 483 885 30
Value Added products
- Glass 274 730 19 266 308 16
- Aluminium - Finished goods 313 726 21 385 032 24
- Extrusions 218 812 15 300 548 18
- Sheerline 202 595 14 197 696 12
1 470 493 100 1 633 469 100
Inter-segment
sales eliminated (341 830) (410 881)
1 128 663 1 222 588
Condensed consolidated balance sheet
as at 30 June
Reviewed Audited
30 June 30 June
2009 2008
R`000 R`000
ASSETS
Non-current assets
Property, plant and equipment 111 755 196 105
Goodwill 38 425 121 522
Investments and loans 11 385 10 857
Deferred taxation assets 6 410 36 555
167 975 365 039
Current assets
Inventories 126 550 263 360
Trade and other receivables 142 851 238 968
Assets held for sale 110 413 -
Taxation 6 145 15 579
Cash and cash equivalents 7 634 24 101
393 593 542 008
Total assets 561 568 907 047
EQUITY AND LIABILITIES
Total equity
Equity attributable to equity holders of the
parent company 83 702 388 537
Minority interest 1 667 3 145
85 369 391 682
Non-current liabilities
Deferred taxation liabilities 3 377 11 579
Long-term interest-bearing debt 41 332 68 274
Long-term lease accrual 24 486 20 035
69 195 99 888
Current liabilities
Trade and other payables 112 427 196 983
Liabilities held for sale 36 638 -
Other current liabilities 2 136 2 571
Short-term interest-bearing debt 255 803 215 923
407 004 415 477
Total equity and liabilities 561 568 907 047
Net asset value per ordinary share (cents) 41 189
Net tangible asset value per ordinary share
(cents) 22 130
ADDITIONAL INFORMATION
Capital expenditure for the year 22 653 48 373
Capital expenditure committed or authorised 7 603 23 879
Directors` valuation of investments and loans 11 385 10 857
Finance and operating lease commitments 405 457 496 028
Contingent liabilities 7 396 2 124
Cost of sales 700 758 698 934
Taxation reconciliation
South African normal taxation at 28% (75 300) (5 310)
Deferred taxation assets reversed/not raised 76 935 15 303
Capital profits (1 248) (349)
Change in tax rate (202) 841
Non-deductible expenses 26 616 984
Other items 775 1 821
Taxation per income statement 27 576 13 290
Condensed consolidated cash flow statement
for the year ended 30 June
Reviewed Audited
year year
ended ended
30 June 30 June
2009 2008
R`000 R`000
Cash flows from operations before working
capital changes (45 001) 59 292
Working capital changes 78 109 (38 175)
Net financing costs and taxation paid (40 665) (74 059)
Net cash outflow from operating activities (7 557) (52 942)
Additions to property, plant and equipment (19 569) (34 263)
Proceeds on disposal of property, plant
and equipment 1 673 165 321
Dividend received from associate 191 585
Decrease in investments and loans 5 608 1 813
Minority interest acquired in subsidiary (2 004) (5 844)
Net cash (outflow)/inflow from investing
activities (14 101) 127 612
Other financing activities (23 445) (56 394)
Net cash outflow from financing activities (23 445) (56 394)
Net (decrease)/increase in cash equivalents and
bank borrowings (45 103) 18 276
Cash equivalents and bank borrowings at
beginning of the year (161 901) (183 386)
Movement resulting from FCTR (4 411) 3 209
Cash equivalents and bank borrowings at
end of the year (211 415) (161 901)
Cash and cash equivalents* 17 972 24 101
Bank borrowings* (229 387) (186 002)
Cash equivalents and bank borrowings at
end of the year (211 415) (161 901)
* Includes cash and cash equivalents and bank borrowings of disposal group
included in assets and liabilities held for sale.
Condensed consolidated statement of changes in equity
for the year ended 30 June
Share
capital
and Other Retained
premium reserves earnings
R`000 R`000 R`000
Audited balance at 30 June 2007 81 491 3 343 327 540
Treasury shares 904 - -
Movement in reserves - 7 835 140
Transfer to share-based compensation
reserve - 526 -
Loss for the year - - (33 242)
Dividend paid - - -
Minority interest acquired - - -
Investment by minorities - - -
Audited balance at 30 June 2008 82 395 11 704 294 438
Movement in reserves - (4 355) (775)
Transfer from share-based compensation
reserve - (1 278) -
Loss for the year - - (297 386)
Dividend paid - - -
Minority interest acquired in
subsidiary - - -
Goodwill on minority interest in
subsidiary - (1 041) -
Minority interest transferred to
liabilities held for sale - - -
Reviewed balance at 30 June 2009 82 395 5 030 (3 723)
Attributable to
equity holders
of the parent Minority Total
company interest equity
R`000 R`000 R`000
Audited balance at 30 June 2007 412 374 4 511 416 885
Treasury shares 904 - 904
Movement in reserves 7 975 - 7 975
Transfer to share-based
compensation reserve 526 - 526
Loss for the year (33 242) 989 (32 253)
Dividend paid - (185) (185)
Minority interest acquired - (2 369) (2 369)
Investment by minorities - 199 199
Audited balance at 30 June 2008 388 537 3 145 391 682
Movement in reserves (5 130) - (5 130)
Transfer from share-based
compensation reserve (1 278) - (1 278)
Loss for the year (297 386) 883 (296 503)
Dividend paid - (279) (279)
Minority interest acquired in
subsidiary - (2 047) (2 047)
Goodwill on minority interest
acquired in subsidiary (1 041) - (1 041)
Minority interest transferred
to liabilities held for sale - (35) (35)
Reviewed balance at 30 June
2009 83 702 1 667 85 369
Directors: RJ Douglas+ (CEO), MJE Geldenhuys (Financial), JC Saville,
HR Levin* (Non-Executive Chairman), AA Barrell* (Deputy Non-Executive
Chairman), BE Danoher*?+, HF Brown*+, J Martingano*
*Non-Executive ?Irish +Independent +British
Registered office
Corner Kruger Street and Mimetes Road, Denver Extension 11, Johannesburg
2094
PO Box 40443, Cleveland 2022
Transfer secretaries
Computershare Investor Services 2004 (Pty) Limited
70 Marshall Street, Johannesburg 2001. PO Box 61051, Marshalltown 2107,
South Africa
www.ag-industries.com
Johannesburg
14 October 2009
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 14/10/2009 16:00:01 Produced by the JSE SENS Department.
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