|
KIR
KIR
KIR - Kairos Industrial Holdings Limited - Unaudited Consolidated Interim
Results for the Six Months Ended 31 August 2009
KAIROS INDUSTRIAL HOLDINGS LIMITED
Incorporated in the Republic of South Africa
Registration number 1987/002927/06
Share code: KIR & ISIN: ZAE000011284
("Kairos" or "the Group")
UNAUDITED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2009
OVERVIEW OF RESULTS
Revenue for the period under review increased marginally by 2%, however as a
result of extremely tough trading conditions, the operating loss increased by
R106 000 to R3,246 million over the corresponding period.
The trading period for the last six months has been severely affected by both
negative sentiment in the market-place arising from the economic downturn and
delays in the start up of the Medupi Power Station contract.
The Group`s brick businesses which service niche markets in Gauteng and
Mpumalanga continue to make losses arising from poor sales, resulting from the
postponement and cancellation of construction developments in the regions.
Smaller developers and home builders, historically the market for the Group`s
brick businesses, are struggling to raise project finance from the banking
sector because of the stringent lending criteria governed by the Credit Act, and
this continues to curtail any form of development in the market.
BroKrew Industrial, the mining ventilation and ducting division of the Group,
has had mixed fortunes over the period. Their core standards business has
performed well and ahead of budget, however the operational contribution from
this division has been eroded by the losses emanating from the special projects
division. Significant start up costs, major increases to inventories and
operational losses have been incurred on the commencement of the Medupi Power
Station contract which is housed in the Special Projects Division. These "once-
off" costs have been taken through the statement of comprehensive income during
the reporting period.
Kairos Coal & Exploration continues to mine its first reserve and the results,
so far, have met with managements` expectations.
The effects of the above translate into a net loss after taxation of R7,873
million, which represents a loss per share of 3,5 cents, an increase of 1,32
cents from the previous loss of 2,18 cents.
Headline loss per share of 3,51 cents was up 1,33 cents on the previous loss per
share of 2,18 cents.
The financial information on which this interim statement is based has not been
reviewed or reported on by the Group`s auditors.
BASIS OF PREPARATION
The unaudited consolidated interim financial statements have been prepared in
accordance with International Financial Reporting Standards ("IFRS"), and in
terms of IAS 34, and in compliance with the Listing Requirements of the JSE
Limited and the South African Companies Act (1973). The accounting policies used
in the preparation of these interim results are consistent with those used in
the annual financial statements for the year ended 28 February 2009.
DIVIDEND
The Board has resolved that no interim dividend will be declared.
PROSPECTS
Current market conditions will remain very flat and overtraded for the brick
manufacturing businesses for the balance of the year. Until such time as
confidence returns to the domestic construction sector, the businesses will be
scaled down to meet the demand for their bricks. During the first quarter of
2010, activity on the Kusile Power Station should provide certain development
opportunities in which these business units will participate.
The Medupi Power Station project is now in full swing and the tempo on the roll-
out of Brokrew`s product will increase significantly over the balance of the
contract. The work in progress that Brokrew Industrial has manufactured during
the last eight months, will commence being shipped to site and this will provide
improved revenues over the balance of the financial year. Increased activities
in both the platinum and gold industries augur well for the standards business
and their performance in the current reporting period should be replicated for
the balance of the financial year.
The coal exploration division has been granted two further prospecting permits
and will commence prospecting the potential reserves on the land held by the
Group. These reserves are expected to be of a longer term nature, however no
revenue will accrue during the current financial year.
The effects of the economic downturn on township developments in South Africa
resulted in the Group taking a cautious view on its own developments.
Discussions are however ongoing in regard to establishing the best options in
the development of both the Groups` commercial and residential properties.
CONTINGENCIES AND SUBSEQUENT EVENTS
There is no obligation, current or pending, which is considered likely to have
an adverse effect on the Group.
On 2 November 2009, the IDC approved a working capital loan facility of R30
million for funding of projects undertaken by Brokrew Industrial (Pty) Limited.
With the exception of this, there are no other material events that have
occurred in the period between 31 August 2009 and the date of this report.
For and on behalf of the board
WL van Deventer WA Lombard
Chief Executive Financial Director
12 November 2009
Statement of Comprehensive Income
Unaudited Unaudited Audited
for the for the for the
6 months 6 months 12 months
ended ended ended
31 Aug 31 Aug 28 Feb
(R`000) 2009 2008 2009
Revenue 118 422 116 101 246 555
Cost of sales (105 191) (106 022) (228 456)
Gross profit 13 231 10 079 18 099
Other income and gains 1 393 - 686
Operating costs (17 870) (13 219) (27 528)
Operating loss before
accounting
for the following: (3 246) (3 140) (8 743)
Investment revenue 2 235 497 3 908
Fair value adjustments - - 11 300
Reversal of impairment of - 1 429 -
financial assets
Finance cost (6 703) (3 612) (10 600)
Loss before taxation (7 714) (4 826) (4 135)
Taxation (140) (62) 2 552
- Normal (140) (117) 262
- Deferred - 55 (2 814)
Net loss attributable to
ordinary shareholders (7 854) (4 888) (1 583)
Determination of headline
loss
Loss after taxation (7 854) (4 888) (1 583)
Profit on disposal of (19) - (95)
fixed assets
Fair value adjustment - - (11 300)
Goodwill impairment - - 1 565
Headline loss (7 873) (4 888) (11 413)
Number of shares on which
loss
per share is based 224 554 224 554 224 554
(000`s)
Headline loss per share (3.51) (2.18) (5.08)
(cents)
Loss per ordinary share (3.50) (2.18) (0.70)
(cents)
Consolidated statement of financial position
Unaudited Unaudited Audited
as at as at as at
31 Aug 31 Aug 28 Feb
(R`000) 2009 2008 2009
ASSETS
Non-current assets 83 922 60 380 85 391
??Investment properties 23 000 11 700 23 000
??Property, plant and 56 113 42 113 57 582
equipment
??Patents and intangibles 2 500 2 500 2 500
??Goodwill 2 309 3 874 2 309
??Mineral and exploration - 193 -
assets
Current assets 100 779 103 835 104 755
??Inventories 60 509 47 682 47 853
??Other financial assets 385 9 297 91
??Trade and other 32 370 42 580 51 547
receivables
??Mineral and exploration 1 066 1 271 2 666
assets
??Taxation overpaid 72 23 -
??Cash and cash equivalents 6 377 2 982 2 598
TOTAL ASSETS 184 701 164 215 190 146
EQUITY AND LIABILITIES
Stated capital and reserves 56 878 60 271 64 732
Non-current liabilities 21 004 21 043 18 644
??Other financial 7 655 9 872 5 476
liabilities
??Instalment sale agreements 7 367 5 866 7 568
??Deferred taxation 5 982 5 305 5 600
Current liabilities 106 819 82 901 106 770
??Loan from shareholder - 509 745
??Other financial 11 832 19 700 24 392
liabilities
??Current taxation payable 214 134 138
??Instalment sale agreements 4 048 5 453 3 924
??Trade and other payables 68 998 47 596 64 262
??Provisions 6 368 7 877 4 573
??Bank overdraft 15 359 1 632 8 736
TOTAL EQUITY AND LIABILITIES 184 701 164 215 190 146
Weighted average shares
(000`s)
Shares in issue (000`s) 224 554 224 554 224 554
Net asset value per share 25.33 26.84 28.83
(cents)
Net tangible asset value per 23.19 24.00 26.69
share (cents)
GROUP CASH FLOW STATEMENT
Unaudited Unaudited Audited
for the for the for the
6 months 6 months 12 months
ended ended ended
31 Aug 31 Aug 28 Feb
(R`000) 2009 2008 2009
Cash (outflows)/inflows (3 272) 1 293 (1 642)
from operating activities
Cash outflows from (1 674) (6 294) (13 906)
investment activities
Cash inflows from financing 2 102 1 850 4 909
activities
Net movement in cash and (2 844) (3 151) (10 639)
cash equivalents
(Overdraft)/cash and cash
equivalents at
beginning of the period (6 138) 4 501 4 501
(Overdraft)/cash and cash
equivalents at
end of the period (8 982) 1 350 (6 138)
STATEMENT OF CHANGES IN EQUITY
Convert-
ible
Revalua- instru- Accumu-
Stated tion ments Total lated Total
(R`000) capital reserve reserve reserve loss equity
s
Balance as
at 1 March
2008
As
previously
reported
(Restated) 200 741 5 615 460 6 075 (148 965) 57 851
Loss for - - - - (4 888) (4 888)
the period
Balance as
at
31 August 200 741 5 615 460 6 075 (153 853) 52 963
2008
Profit for - - - - 3 305 3 305
the period
Revaluation - 11 550 - 11 550 - 11 550
of
properties
Deferred
tax on
revaluation - (3 086) - (3 086) - (3 086)
of
properties
Realisation
of
revaluation
of assets - (242) - (242) 242 -
sold
Realisation
of
revaluation
reserve - (902) - (902) 902 -
through use
Balance as
at
28 February 200 741 12 935 460 13 395 (149 404) 64 732
2009
Loss for - - - - (7 854) (7 854)
the period
Balance at
31 August 200 741 12 935 460 13 395 (157 258) 56 878
2009
Unaudited SEGMENTAL ANALYSIS
Property &
Brick Mining coal
(R`000) enterprises Supplies divisions Group
Six months to August
2009
Turnover 16 038 96 638 5 746 118 422
Net (loss)/profit
before
interest and tax (2 307) (2 634) 1 695 (3 246)
Interest received 17 2 170 48 2 235
Finance cost (705) (5 834) (164) (6 703)
Income tax - - (140) (140)
(expense)/credit
Net (loss)/profit for (2 995) (6 298) 1 439 (7 854)
the period
Segment assets 48 185 114 132 17 575 179 892
Intangible assets - 4 809 - 4 809
Total assets 48 185 118 941 17 575 184 701
Total liabilities 18 991 99 321 9 511 127 823
Depreciation and 1 832 1 273 38 3 143
amortisation
Capital expenditure 94 1 580 - 1 674
Property &
Brick Mining coal
(R`000) enterprises Supplies divisions Group
Six months to August
2008
Turnover 19 298 96 803 - 116 101
Net (loss)/profit
before
interest and tax (5 116) 1 716 1 689 (1 711)
Interest received 41 425 31 497
Finance cost (401) (2 969) (242) (3 612)
Income tax 194 (138) (118) (62)
credit/(expense)
Net (loss)/profit for (5 282) (966) 1 360 (4 888)
the period
Segment assets 47 132 88 549 22 160 157 841
Intangible assets 1 565 4 809 - 6 374
Total assets 48 697 93 358 22 160 164 215
Total liabilities 21 282 77 071 5 591 103 944
Depreciation and 1 154 763 869 2 786
amortisation
Capital expenditure 5 372 121 - 5
Registered office: 1111 Church Street, Hatfield 0083, Pretoria
PO Box 11328, Hatfield 0028, Pretoria
Tel: +27 (0) 12 342 1980 Fax: +27 (0) 12 342 1976
E-mail: info@kairos.co.za
Sponsor: Bridge Capital Advisors (Pty) Limited, 27 Fricker Road, Illovo
Boulevard, Illovo 2196
Share transfer secretaries: Computershare Investor Services (Pty) Limited, 70
Marshall Street, Johannesburg 2001
Directors: JB Oosthuizen (non-executive chairman),
WL van Deventer (chief executive), JJ de W Mulder, WA Lombard,
VD Mazibuko (non-executive)
Visit us at www.kairos.co.za
Date: 12/11/2009 17:50:02 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 ] | |||||||||||||
|
|||||||||||||
