|
AMA
AMA
AMA - Amalgamated Appliance Holdings - Unaudited Interim Results for the
Six Months Ended 31 December 2009
AMALGAMATED APPLIANCE HOLDINGS LIMITED
(Registration number: 1997/004130/06)
ISIN: ZAE000012647 Share code: AMA
("AMAP" or "the Group")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2009
HIGHLIGHTS:
* Total comprehensive income R24,5 million for the period
* Headline earnings per share increased by 148% to 11,7 cents per share
* Cash of R90,6 million generated from operating activities
* Net cash on hand R198,8 million
Interim results highlights relate to continuing and discontinuing operations
CONDENSED GROUP STATEMENT OF COMPREHENSIVE INCOME
% Unaudited Restated* Restated*
change 6 months unaudited audited
31 December 6 months 12 months
2009 31 December 30 June
R`000 2008 2009
R`000 R`000
Continuing operations
Revenue (35) 399 652 612 489 1 044 294
Operating profit/(loss) 32 136 (54 052) (73 845)
Impairment of goodwill - - (5 766)
and trademarks
Restructuring costs - (734) (5 626) (7 820)
operations
Fair value adjustments (1 096) (5 768) 909
on financial
instruments
Net interest 3 872 (3 590) (2 694)
received/(paid)
Profit/(loss) before 150 34 178 (69 036) (89 216)
taxation
Taxation (10 116) 19 794 25 821
Profit/(loss) for the 149 24 062 (49 242) (63 395)
period from continuing
operations
Discontinued operations
Profit/(loss) from 475 (1 250) (5 621)
discontinuing
operations
Profit/(loss) for the 149 24 537 (50 492) (69 016)
period
Other comprehensive - - -
income
Total comprehensive 149 24 537 (69 016)
income/(loss) for the (50 492)
period
From continuing and
discontinuing
operations
Basic profit/(loss) per 149 11,8 (24,2) (33,1)
share - (cents)
Diluted basic 148 11,7 (24,2) (33,1)
profit/(loss) per share
- (cents)
From continuing
operations
Basic profit/(loss) per 149 11,5 (23,6) (30,4)
share - (cents)
Diluted basic 149 11,5 (23,6) (30,4)
profit/(loss) per share
- (cents)
From discontinuing
operations
Basic profit/(loss) per 138 0,2 (0,6) (2,7)
share - (cents)
Diluted basic 138 0,2 (0,6) (2,7)
profit/(loss) per share
- (cents)
* Restatement - refer to the restatement note
CONDENSED GROUP STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
as at as at as at
31 December 31 December 30 June
2009 2008 2009
R`000 R`000 R`000
ASSETS
Non-current assets 76 339 92 858 87 459
Property, plant and 10 892 15 355 11 890
equipment
Goodwill - 1 170 -
Trademarks 1 645 4 596 1 645
Investment in associate - 2 326 -
Deferred taxation 63 802 69 411 73 924
Current assets 572 821 628 034 514 244
Inventories 132 208 242 780 154 293
Trade and other 196 482 238 869 187 289
receivables
Taxation prepaid 6 652 3 520 6 649
Bank and cash on hand 195 711 116 229 124 943
531 053 601 398 473 174
Current assets classified 41 768 26 636 41 070
as held for sale
Total assets 649 160 720 892 601 703
EQUITY AND LIABILITIES
Total equity 459 877 457 332 438 672
Capital and reserves 459 877 457 332 438 672
Non-current liabilities 1 066 1 779 1 433
Long-term borrowings 319 1 667 676
Deferred taxation 747 112 757
Current liabilities 188 217 263 185 161 598
Trade and other payables 119 772 145 862 96 729
Derivative financial 2 797 6 271 2 077
liability
Capital distribution 157 159 157
and dividends payable
Taxation - 8 371 318
Bank overdraft 24 74 176 868
Short-term portion of long- 823 1 791 1 125
term liability
Provisions 22 010 17 507 19 254
145 583 232 819 120 528
Liabilities directly associated 42 634 7 644 41 070
with assets classified as held
for sale
Total equity and liabilities 649 160 720 892 601 703
CONDENSED GROUP STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
6 months 6 months 12 months
31 December 31 December 30 June
2009 2008 2009
R`000 R`000 R`000
Cash flow from operating 90 561 63 487 138 591
activities
Cash generated/(utilised) 36 028 (60 207) (77 848)
by trading
Working capital changes 51 331 132 327 230 699
Cash generated by 87 359 72 120 152 851
operations
Net interest 3 872 (3 588) (2 694)
received/(paid)
Taxation paid (670) (5 045) (11 564)
Dividends paid and capital - - (2)
distribution
Cash flow used in (1 171) (902) (301)
investing activities
Additions to property, (1 809) (1 593) (2 636)
plant and equipment
Proceeds on disposal of 638 691 2 335
property, plant and
equipment
Cash flow used in (5 870) (2 469) (5 524)
financing activities
Net movement in treasury (4 143) 40 74
shares
Decrease in long-term borrowings (1 727) (2 509) (5 598)
Net increase in cash and 83 520 60 116 132 766
cash equivalents
Cash surplus/(deficit) 115 316 (17 450) (17 450)
beginning of year
Cash surplus at the end of the 198 836 42 666 115 316
year
NOTES TO THE CONDENSED GROUP STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
6 months 6 months 12 months
31 December 31 December 30 June
2009 2008 2009
R`000 R`000 R`000
Cash flow from operating 90 561 63 487 138 591
activities
- Continuing operations 77 549 63 207 126 447
- Discontinuing operations 13 012 280 12 144
Cash flow used in (1 171) (902) (301)
investing activities
- Continuing operations (1 136) (895) (3 090)
- Discontinuing operations (35) (7) 2 789
Cash flow used in (5 870) (2 469) (5 524)
financing activities
- Continuing operations (4 801) (1 125) (2 747)
- Discontinuing operations (1 069) (1 344) (2 777)
Cash surplus/(deficit) at the end 198 836 42 666 115 316
of the year
- Continuing operations 195 687 42 053 124 075
- Discontinuing operations 3 149 613 (8 759)
SUPPLEMENTARY INFORMATION
% Unaudited Unaudited Audited
change 6 months 6 months 12 months
31 December 31 December 30 June
2009 2008 2009
R`000 R`000 R`000
Shares in issue (000`s) 212 190 211 190 211 190
Shares in issue - weighted 208 550 208 419 208 469
(000`s)
Diluted number of shares 209 064 208 449 208 575
- weighted (000`s)
Net asset value per share 217 217 208
(cents)
Cost of sales (R`000) - 278 239 573 559 891 233
continuing operations
Cost of sales (R`000) - 71 153 1 861 26 422
discontinuing operations
Net inventory 3 402 69 969 28 080
(reversal)/raised
- continuing operations
Net inventory - _ 48
(reversal)/raised
- discontinuing operations
Interest received (R`000) (4 606) (4 946) (8 450)
- continuing operations
Interest received (R`000) (5) (2) (38)
- discontinuing operations
Interest paid (R`000) - 734 8 536 11 144
continuing operations
Interest paid (R`000) - 7 - 38
discontinuing operations
Capital expenditure 1 746 1 586 2 583
(R`000) - continuing
operations
Capital expenditure 63 7 52
(R`000) - discontinuing
operations
Capital commitments 455 395 892
(R`000) - continuing
operations
Depreciation, amortisation 2 311 3 144 10 424
and impairment charge
(R`000) - continuing
operations
Depreciation, amortisation - 1 668 1 668
and impairment charge
(R`000) - discontinuing
operations
Operating lease 16 367 23 668 19 004
commitments (R`000)
- continuing operations
Profit/(loss) (R`000) - 24 062 (49 242) (63 395)
continuing operations
Profit on disposal of (174) (242) (83)
property, plant and
equipment (R`000) -
continuing operations
Impairment of goodwill - - 1 170
(R`000) - continuing
operations
Impairment of trade marks - - 4 596
(R`000) - continuing
operations
Total tax effects on 49 68 (1 264)
adjustments (R`000)
- continuing operations
Headline profit/(loss) 23 937 (49 416) (58 976)
(R`000) - continuing
operations
Headline profit/(loss) per 148 11,5 (23,7) (28,3)
share - (cents)
- continuing operations
Diluted headline 148 11,4 (23,7) (28,3)
profit/(loss) per
share - (cents) -
continuing operations
Profit/(loss) (R`000) - 475 (1 250) (5 621)
discontinuing operations
Profit on disposal of (1) - (19)
property, plant and
equipment (R`000) -
discontinuing operations
Impairment of property, - - 179
plant and equipment
(R`000) - discontinuing
operations
Total tax effects on - - (45)
adjustments
(R`000) - discontinuing
operations
Headline profit/(loss) 474 (1 250) (5 506)
(R`000) - discontinuing
operations
Headline profit/(loss) per 138 0,2 (0,6) (2,6)
share - (cents)
- discontinuing operations
Diluted headline 138 0,2 (0,6) (2,6)
profit/(loss) per
share - (cents) -
discontinuing operations
Headline profit/(loss) per 148 11,7 (24,3) (30,9)
share - (cents)
-
continuing and
discontinuing operations
Diluted headline 148 11,6 (24,3) (30,9)
profit/(loss) per
share - (cents) -
continuing and
discontinuing operations
Discontinued operations and assets classified as held for sale
Statement of comprehensive income Unaudited Unaudited Audited
For the period ended 31 December 6 months 6 months 12 months
2009 31 December 31 December 30 June
2009 2008 2009
R`000 R`000 R`000
Revenue 70 600 8 742 18 584
Operating profit/(loss) 667 (1 737) (7 396)
Fair value adjustments on financial - - 885
instruments
Restructuring costs - operations - - (1 296)
Net interest (paid)/received (2) 2 -
Profit/(loss) before tax 665 (1 735) (7 807)
Taxation (189) 485 2 186
Profit/(loss) from discontinuing 475 (1 250) (5 621
operations
The major classes of assets and Unaudited Unaudited Audited
liabilities classified as held for as at as at as at
sale are as follows: Statement of 31 December 31 December 30 June
financial position 2009 2008 2009
R`000 R`000 R`000
Assets classified as held for sale
Property, plant and equipment 21 912 21 839 21 878
Investment in associate - (3 731) -
Deferred taxation 360 331 24
Inventory 2 506 651 9 038
Trade and other receivables 13 841 6 929 10 129
Taxation prepaid - 4 -
Bank and cash on hand 3 149 613 1
Assets classified as held for sale 41 768 26 636 41 070
Liabilities directly associated with
assets classified as held for sale
Long-term borrowings (2 174) (3 158) (2 780)
Deferred taxation (2 681) (2 003) (2 499)
Trade, other payables and provisions (36 441) (1 032) (25 230)
Taxation (89) (89) (89)
Investment in associate - 1 405 -
Bank overdraft - - (8 760)
Short-term portion of long-term (1 249) (2 767) (1 712)
liability
Liabilities directly associated with (42 634) (7 644) (41 070)
assets classified as held for sale
Net investment in associate - 2 326 -
Net assets/(liabilities) classified (866) 18 991 -
as held for sale
The discontinued operations and assets held for sale relate to Tedelex
Manufacturing (Pty) Limited and Tedelex Properties (Atlantis) (Pty) Limited
(refer notes 5 and 6).
CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY
Unaudited Unaudited Audited
6 months 6 months 12 months
31 December 31 December 30 June
2009 2008 2009
R`000 R`000 R`000
Balance as at 1 July 438 672 506 337 506 337
Total comprehensive 24 537 (50 492) (69 016)
income/(loss)
for the period
Net treasury movement (4 143) 40 74
Share based payment 811 1 447 1 277
Balance at period end 459 877 457 332 438 672
Trading environment
The retail industry performed below expectations during 2009. Sales were
affected by the high number of retrenchments, inflation and stringent monetary
policies resulting in a contraction of 4,9% in retail sales compared to 2008.
Fierce competition occurred with companies striving to maintain market share in
a competitive environment.
Commentary
The Board is pleased to announce the Group`s interim results for the six months
ended 31 December 2009 ("the period"). Strategically the Group continued to
focus and invest in its brands. AMAP`s policy of above and below the line
advertising and promotion of its brands resulted in the Group increasing its
market share over the festive season and maintaining its price integrity.
The Group enjoyed solid trading results and a return to profitability over the
period. Furthermore, revenue and stock levels were in line with targets and the
Group`s customers reported encouraging sell through of the Group`s products over
the festive season.
The consumer electronics business has been shut down and replaced with a brand
royalty business. This means the business no longer holds stock nor debtors but
earns a royalty from the Group`s brands. The electronic service operation has
been outsourced and the service provider is being closely managed to ensure that
they comply with the service level agreements.
As previously stated, the directors have decided to exit the electronics
manufacturing business and sell the property on which it operates. It is the
Group`s intention to dispose of the business by the end of June 2010.
Consequently this business and the property on which it operates are classified
as "discontinued operations" in the statement of comprehensive income and "held
for sale" in the statement of financial position.
Financial performance
Statement of comprehensive income (continuing operations)
Headline earnings per share from continuing operations improved by 148% to 11,5
cents per share (2008: loss per share 23,7 cents).
While gross revenue was 35% lower than the prior period, there was a significant
improvement in the gross margin as a result of the closure of the consumer
electronics business and the move to a brand royalty business. Expenditure was
rigorously controlled and the operating profit increased by R86,2 million to
R32,1 million (2008: loss R54,1 million).
Total comprehensive income for the period from continuing and discontinuing
operations amounted to a profit of R24,5 million (2008: loss R50,5 million).
Statement of financial position (continuing operations)
Ongoing working capital management ensured positive results on the statement of
financial position.
Trade and other receivables reduced by R42,4 million to R196,5 million (2008:
R238,9 million) in line with lower turnover, similarly there was a slight
decrease of R4,7 million in trade payables to R119,8 million
(2008: R124,5 million).
Exiting the traditional method of selling from stock, as was practised in the
consumer electronics business, as well as improved product category management
resulted in inventories decreasing by R110,6 million to R132,2 million (2008:
R242,8 million).
The positive working capital improvements culminated in cash on hand of R195,7
million at the end of the period (2008: R42,1 million).
Cash flow
During the period the Group was able to generate R90,6 million (2008: R63,5
million) from operating activities.
Introduction of strategic partner
The Bidvest Group Limited ("Bidvest") acquired a 28% interest in the Group
during November 2009. Bidvest`s skill and expertise is expected to provide
invaluable strategic support to the Group. Bidvest`s proven track record
highlights its ability to add value through strategic input.
Prospects
Indications are that the retail business environment will remain extremely
challenging going forward with a strong possibility of further contraction,
consequently the Group has invoked numerous projects to secure its future
revenue, which include:
* Continued investment in its brands;
* Expansion of product categories;
* Focus on export opportunities into Africa; and
* Acquisitions of appropriate brands in line with the Group`s strategy.
The 2010 FIFA World Cup is also expected to increase general demand for consumer
durable goods in the hospitality sector.
In light of the above, and even though historically, revenues and profits are
higher in the first period, the Board is confident of continued positive
performance throughout 2010.
Changes to the Board
The following changes to the Board have taken place since the date of the
Group`s last report:
* Dumisani Dumekhaya Tabata was appointed as an independent non-executive
director, effective 1 July 2009; and
* Myron Cyril Berzack was appointed as a non-executive director with effect from
1 December 2009.
Corporate governance
The Group subscribes to the spirit of good corporate governance as set out in
the King II Report and accepts the need to conduct the enterprise with
integrity, transparency and equal opportunity.
NOTES
1. Basis of preparation
The condensed unaudited Group interim financial statements for the period
have been prepared in compliance with International Accounting Standard IAS
34 - Interim Financial Reporting and in terms of the Listings Requirements
of the JSE Limited. Other than IAS 1, the accounting policies applied in
preparing these condensed unaudited Group interim financial statements are
consistent with those applied in the annual financial statements for the
year ended 30 June 2009 and the six months to 31 December 2008 and comply
with International Financial Reporting Standards ("IFRS") and the South
African Companies Act. Consequently, the comparative information has been
restated for the new disclosures as required in IAS 1.
2. Restatement
The operating profit/(loss) in the statement of comprehensive income has
been re-presented to include the net write up/(write down) of inventory.
The net inventory raised/(reversed) amounts are now disclosed in the
supplementary information section.
The re-presentation noted above has no effect on the statement of financial
position for the current and prior periods.
3. Diluted basic and diluted headline earnings/loss per share
Diluted basic and diluted headline earnings/loss per share are determined
by adjusting the weighted average number of ordinary shares outstanding to
assume conversion of all dilutive ordinary shares.
4. Contingent liability
As disclosed in the Group`s annual report for the year ended 30 June 2007
and its interim results, SARS issued a letter of intent in February 2007 to
levy customs and excise on a wholly owned subsidiary for R28,3 million. The
subsidiary has raised a formal objection, in line with the professional
advice of its external legal customs duty advisers, and remains confident
that its objection will be upheld.
There is no obligation, current or pending, which is considered likely to
have a material adverse effect on the Group.
5. Assets classified as held for sale
During the prior year it was decided to transfer the assets of Tedelex
Manufacturing (Pty) Limited and the Atlantis property to assets held for
sale in line with the requirements of IFRS 5.
6. Discontinuing operations
The results have been adjusted for the effect of the assets held for sale
in Note 5 above.
7. Segmental reporting
The Group markets and distributes consumer durables predominantly in
southern Africa and therefore the Group is not required to report segmental
information in terms of IFRS 8.
Subsequent events
No events material to the understanding of the report have occurred during the
period between 31 December 2009 and the date of this report.
Distribution to shareholders
If trading continues favourably in the second period, the Group will resume
payment of a dividend in terms of its policy. Depending on the success of the
acquisitions strategy as noted under "Prospects", a special dividend will be
considered.
For and on behalf of the Board
Leon Campher Alan Coward
Non-Executive Chairman Group Chief Executive Officer
Johannesburg
08 March 2010
Directors: *PL Campher (Chairman), *MC Berzack, AS Coward, MG Crow,
*WA du Plessis, S Karele, *SA Levitt, *SH M?ller, DB Oliver,
*DD Tabata
*Non-executive
Secretary: BG Drummond
Registered office
29 Heronmere Road, Reuven 2091?PO Box 39186, Booysens 2016, Telephone (011) 490
9000
Transfer secretaries
Computershare Investor Services (Pty) Limited, 70 Marshall Street, Johannesburg
2001 PO Box 61051, Marshalltown 2107
Sponsor
Bridge Capital Advisors (Pty) Limited
2nd Floor, 27 Fricker Road, Illovo Boulevard, Illovo 2196
Date: 08/03/2010 07:45:01 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 ] | |||||||||||||
|
|||||||||||||
