| Tue 30 Mar 2010, 15:20 | | AGI - AG Industries Limited - Reviewed Interim Results For The Six Months Ended |
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AGI
AGI
AGI - AG Industries Limited - Reviewed Interim Results For The Six Months Ended
31 December 2009
AG Industries Limited
("AGI" or "the Group")
Registration number: 1980/004051/06
Share code: AGI & ISIN: ZAE000039467
Reviewed interim results
for the six months ended 31 December 2009
Salient features
* Performance in line with the restructuring plan developed for the turnaround
of AGI
- Revenue from continuing operations decreased by 22% to R358 million (2008:
R460 million)
- Operating loss from continuing operations R44 million (2008: profit of R16
million)
- Headline loss per share from continuing and discontinuing operations of 37,2
cents per share (2008: loss of 0,8 cents per share)
* Operational restructuring implemented from December 2009
* Disposal of International business completed in January 2010
* Disposal of Sheerline business due for completion at end March 2010
* Recapitalisation to take place in April 2010
Commentary
Introduction
AGI has previously reported to shareholders on the difficult position in which
the Group found itself during 2009 and the plan of action adopted to remedy this
situation. During the six months ended 31 December 2009 ("the period under
review"), significant progress was made towards achieving a comprehensive
financial and operational restructuring.
Performance was in accordance with the restructuring plan while the Group
continued to operate under challenging conditions. Sales, costs and working
capital for continuing operations were generally in line with the restructuring
plan. The Group continued to incur losses due to the overhead cost structure
that has since been reduced as a result of the restructuring. Costs of
implementing the restructuring plan were incurred during the period. The losses
impacted on the net asset value of the Group which will be improved by an
increase in equity of R205 million on completion of the rights offer in April
2010.
Status of restructuring
The plan for the restructuring of AGI required the sale of certain assets to be
completed in order to generate funds to cover the cost of restructuring. In
addition, a commitment for the recapitalisation process had to be obtained
before any restructuring activities could be conducted. These restructuring
activities were scheduled to begin in December 2009 and continue through the
first quarter of 2010 which is seasonally a quiet trading period and would
therefore be least disruptive in an already difficult economic climate.
The recapitalisation, which takes the form of a rights issue that effectively
converts debt to equity and also introduces R45 million of fresh equity will
result in an increase in equity of R205 million on completion of the rights
offer in April 2010.
The restructuring plan will reduce headcount, rationalise sites, as well as
improve organisational integration.
At the time of publication of this announcement, the following has been
achieved:
1. The disposal of the International business has been completed.
2. Approval for the disposal of the Sheerline business has been received from
the competition authorities and this disposal is now unconditional.
3. Recapitalisation agreements have been finalised and are unconditional. A
fully underwritten rights offer process is in progress. Proceeds of R205 million
will be received in April 2010. Shareholders are referred to the various
announcements made and the circular posted on 23 March 2010 in this regard.
4. Banking facilities have been committed by the Group`s lenders until 28
February 2011 in order to provide the Group with adequate working capital
following the restructuring.
5. Gauteng manufacturing facilities have been consolidated onto a single site,
reducing three factories into a single integrated operation.
6. A reduction of approximately 30% of the total employee numbers has taken
place as a result of restructuring activities throughout the Group.
Whilst much has been achieved, certain plans remain to be completed, including a
rationalisation of the Cape operations, which is currently underway.
It was previously advised that the restructure was expected to cost around R36
million, which includes retrenchment, consolidation programmes and lease
breakage costs. To date the estimates of the costs to be incurred by completion
of the restructuring project remains at this level. As yet no lease breakage
costs have been incurred nor committed to.
Financial review
As a result of the status of the implementation of the disposal of the
International and Sheerline businesses, the results of these businesses are
reported as discontinuing operations. Consequent upon the disposal of the
International business, all the Group`s operations are located in Southern
Africa.
Income statement
Continuing Operations
Group revenue from continuing operations decreased by 22% to R358 million (2008:
R460 million) as a result of a significantly lower level of sales activity that
the Group has experienced since January 2009.
An operating loss on continuing operations of R44 million (2008: R16 million
profit) was incurred which should be compared to the R85 million loss incurred
in the six months from January to June 2009, showing an improvement in trading
results in the period under review compared to that period. In the period under
review, a loss was incurred due to the depressed economic environment coupled
with the fact that the Group had not yet been able to implement the operational
restructure and thereby significantly reduce the fixed cost base. The lower
level of loss for the period compared to the period January to June 2009 was due
to a combination of better sales and cost reduction.
Depreciation for the period decreased by 42% to R8 million (2008: R14 million)
as a result of the significant impairment of the value of plant and equipment
that took place at 30 June 2009. Although levels of borrowing increased, net
financing costs decreased by 14% to R18 million (2008: R21 million) due to the
lower interest rate environment. The Group continued not to raise deferred tax
assets in the period under review. Certain profitable subsidiaries continued to
pay tax and therefore a tax charge of R4,3 million was incurred.
All of the above factors resulted in an attributable loss from continuing
operations of R65,4 million (2008: R17,2 million) and a basic loss per share of
32,3 cps (2008: 8,6 cps).
Discontinuing Operations
Discontinuing operations added a further R11,1 million loss due to the poor
performance of the Sheerline business.
Therefore there was a loss attributable to ordinary shareholders for the period
of R77 million (2008: loss R13,8 million) after minority interest was deducted.
This equated to a basic and diluted headline loss from continuing and
discontinuing operations per share attributable to ordinary shareholders of 37,2
cents (2008: 0,8 cps).
Balance sheet and cash flow
The working capital to revenue ratio (calculated based on 2X revenue for the
period) improved to 18% (2008: 29%) as a result of improved working capital
management, despite difficult operational conditions which included reduced
credit facilities being available from suppliers. Improvements in the level of
stockholding and implementation of the supply chain initiatives were largely
responsible for these improvements.
Cash outflow from operations was R32,2 million (2008: inflow R39,9 million) and
cash outflow from operating activities was R23,2 million (2008: inflow R6,4
million).
Due to operational losses, the Group`s equity reduced to R7,6 million. As a
result, gearing levels were unsustainably high and the Group could not have
continued as a going concern without the introduction of fresh equity capital
through the implementation of the rights offer.
Total capital expenditure for the period under review was R3 million (2008: R16
million) as a programme to utilise the existing asset base effectively was
implemented.
Operational review
Continuing operations
Glass
Revenue decreased by 16,1% to R258 million (2008: R307,5 million). The
operational result for the period under review was a loss of R36,3 million
(2008: R10,8 million profit).
The Glass division provided a reasonable performance in terms of revenue given
the difficult trading environment and generally met or exceeded the targets set
in a revised financial plan which takes into account the realities of both the
economic conditions and the difficult financial environment of the Group. This
performance reflects the sound geographic footprint of the business as well as
the experience of the management in this market. This base will be important for
the re-establishment of the AGI business and is the platform from which the
reconstruction will take place.
Aluminium finished goods
Revenue decreased by 26% to R137,9 million (2008: R186,4 million). The
operational result for the period under review was a loss of R11,8 million
(2008: R18,6 million loss). The lower loss in relation to the decreased sales
base was the result of overhead reductions in this area of the Group`s business
and the impairment of fixed assets at June 2009.
The Aluminium finished goods business suffered from depressed demand, increased
competition and the inevitable disruption caused by the closure of the
manufacturing facility at Alrode and its relocation to Roodekop.
Residential property development remained depressed during the period under
review and, although more recently there have been reports of an improving
market sentiment for this sector, it is anticipated that overall levels of
demand will remain sluggish for the foreseeable future. The rapid growth in
demand experienced prior to 2009 prompted numerous start-ups and expansion in
the industry which increased the competitive environment and adds further
pressure as all manufacturers of aluminium doors, windows and showers try to
cope in a depressed economy. In addition, the planned move to consolidate
operations had an obvious negative impact on the Alrode site following the
announcement of the plant closure and subsequent retrenchments which were
implemented in mid-December.
However, an improvement in productivity and output levels has been experienced
at the consolidated Roodekop factory since the start up in late January 2010
which gives confirmation to the decision to undertake the rationalisation.
Although it is anticipated that the market conditions will remain difficult,
AGI`s flexible sourcing options from either its own extrusion presses, local or
international suppliers, combined with the geographic footprint and scale,
provide a source of competitive advantage in this market.
Extrusions
Revenue for the period under review decreased by 31,4% to R92,2 million (2008:
R134,5 million). The operational result was a loss of R17,2 million (2008: R9,4
million loss).
The operational performance of the extrusion presses has been very satisfactory,
which validates the decision to remain in this business sector.
A severe adverse working capital impact was experienced following the unilateral
decision of the local aluminium billet supplier to reduce credit available
following the fall in the Group`s share price during the course of 2009. Further
complexity was added when this supplier exited the local market and all local
extruders were forced to utilise international sources for aluminium billet. A
priority for the business is to re-establish lines of credit once the
recapitalisation process is complete.
Discontinuing operations
Sheerline
It has previously been reported that AGI Solutions (Pty) Limited, a subsidiary
of the Group, and Wispeco Limited, a creditor of the Group, had entered into an
agreement for sale to Wispeco of the Sheerline business as a going concern on 3
September 2009.
The business experienced disruption in the period after the sale was announced
that negatively affected its trading performance as the intention to sell the
business was known but competition authority approval was still required.
Revenue decreased by 39,3% to R70 million (2008: R115,5 million). The business
made an operating loss in relation to its revenue of R11 million (2008: R0,9
million).
International operations
It has previously been reported that an agreement for the sale of the
International business was concluded on 29 September 2009. The conditions
precedent to this sale were completed in December 2009 and the sale became
effective on 3 January 2010. Sale proceeds of R25,5 million were received by the
Group.
During the period under review, revenue of the International business was R56,4
million (2008: R108 million) and an operating loss of R0,1 million was incurred
(2008: profit of R4,6 million).
Prospects
As trading conditions are expected to remain difficult, the Group continues with
the implementation of the restructuring plans.
The Group`s market is expected to remain difficult for the foreseeable future.
There are reports of improving confidence in the residential development sector
and it is hoped that this confidence translates into activity. However, the
Group`s business plan does not anticipate any relief and concentrates on
ensuring that the organisation is right-sized with the focus on improving
operational efficiencies and productivity.
The Group`s recapitalisation provides an opportunity for the business to re-
establish lines of credit which will have a beneficial effect on working capital
and cash flows. In addition, the focus areas will be:
* reducing stocks and improving supply chain processes for increased stock turn;
* addressing internal business processes to improve service and lead times; and
* procurement activities to lower input costs and improve margin.
Going concern
At the time of approving the results for the period under review, the Group`s
situation was such that there existed a degree of uncertainty relating to future
events or conditions that might cast doubt upon the Group`s ability to continue
as a going concern. However, given the advanced status of the Group`s
restructuring process, the committed support of the Group`s bankers and the
expected performance against the plan, the directors believe the going concern
assumption to be appropriate.
Changes in directorate
Mr MJ Geldenhuys resigned as the Acting Financial Director with effect from 31
January 2010.
Mr MD Aitken was appointed as Financial Director with effect from 1 February
2010. He resigned, however, with effect from 19 February 2010.
Mr HF Brown`s nomination to be re-appointed as a Non-executive Director at the
Annual General Meeting of the Company held on 15 January 2010 was withdrawn at
the meeting. He was subsequently re-appointed by the Board on the same date.
Mrs J Martingano`s nomination to be re-appointed as a Non-executive Director at
the Annual General Meeting of the Company held on 15 January 2010 was withdrawn
at the meeting.
Accounting policies and basis of preparation
The condensed financial statements for the interim period under review were
prepared in accordance with the International Accounting Standards 34 (IAS 34:
Interim Financial Reporting), the Companies Act and the JSE Limited Listings
Requirements. The condensed financial statements are prepared on the historical
cost basis except for
the revaluation of financial instruments. The principal accounting policies
adopted for the period under review are consistent with those applied for the
year ended 30 June 2009 in terms of IFRS. In addition, the following new
standards have been adopted, IAS 1 - Presentation of financial statements and
IFRS 8 - Operating segments, which introduced changes to the presentation of the
financial information with no impact on the Group`s accounting policies or
methods of computation. The condensed consolidated income statement has been
restated to disclose continuing and discontinuing operations in terms of IFRS 5
- Non-current assets held for sale and discontinued operations.
Adverse review report
The results for the period under review have been reviewed by the Company`s
auditors, Deloitte & Touche. While normal practice for AGI is to publish
unaudited interim results, the requirement for a review arose from Rule 3.18 (b)
of JSE Listings Requirements in terms of which a review is required if the
auditors gave an adverse or qualified opinion in the issuer`s last annual
financial statements.
An adverse review opinion has been expressed on the accompanying financial
information as follows: "The restructuring plan developed by company`s directors
to effect the turnaround of the business has been implemented and been in
existence for a very short period of time. As a result, at this early stage, we
are unable to determine whether the restructuring plan and related business plan
will be effective in returning the group to profitability. In addition, in our
opinion, there is further uncertainty relating to the group`s ability to
generate sufficient funds required to meet its operational requirements for the
foreseeable future. These events indicate a material uncertainty, which may cast
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 31 December 2009 and the
date of this report other than the completion of the sales of the International
business, the Sheerline business and the rights offer being implemented as
described above and additional bridging facilities being granted by the Group`s
bankers to provide adequate finance to the date of completion of the
recapitalisation.
Distribution to shareholders
Given the current performance and situation constraint of the Group, a capital
distribution, dividend or capitalisation share award for the period under review
cannot be proposed.
For and on behalf of the Board
RJ Douglas
Group Chief Executive Officer
30 March 2010
Condensed consolidated income statement
for the six months ended 31 December 2009
Restated Restated
Reviewed unaudited audited
six months six months year
ended ended ended
31 December 31 December 30 June
2009 2008 Change 2009
R`000 R`000 % R`000
Continuing operations
Revenue 357 564 459 549 (22) 818 738
(Loss)/profit before
depreciation (35 781) 30 439 (218) (40 106)
Depreciation (8 222) (14 240) (28 606)
(Loss)/profit from
operations (44 003) 16 199 (372) (68 712)
Operating margin (%) (12,3) 3,5 (8,4)
Non-trading items
Profit on disposal of
investment - 6 314 5 553
Profit/(loss) on
disposal of property,
plant
and equipment 129 (639) (2 655)
Impairment of property,
plant and equipment - - (55 696)
Impairment of goodwill - (17 058) (53 444)
(Loss)/profit before
financing costs and
associate income (43 874) 4 816 (1 011) (174 954)
Net financing costs (17 802) (20 869) (36 487)
Share of profits of
associates 571 959 1 110
Loss before taxation (61 105) (15 094) 305 (210 331)
Taxation (4 299) (2 138) (24 742)
- normal activities (4 299) (1 304) (25 464)
- headline adjustments - (834) 722
Loss for the period from
continuing operations (65 404) (17 232) 280 (235 073)
Discontinuing operations
(Loss)/profit for the
period from
discontinuing operations (9 953) 3 699 (369) (48 963)
Fair value adjustment on
assets held for sale (1 152) - (12 467)
(11 105) 3 699 (61 430)
Loss for the period from
continuing and
discontinuing operations (76 509) (13 533) (296 503)
Attributable to:
Equity holders of the
holding company (77 005) (13 832) 457 (297 386)
Minority interest 496 299 883
(76 509) (13 533) (296 503)
Condensed consolidated statement of comprehensive income
for the six months ended 31 December 2009
Reviewed Unaudited Audited
six months six months year
ended ended ended
31 December 31 December 30 June
2009 2008 Change 2009
R`000 R`000 % R`000
Loss for the period from
continuing and
discontinuing operations (76 509) (13 533) 465 (296 503)
Movement in foreign
currency translation
reserve (1 196) 7 538 (4 934)
Income from associate
transferred from
retained earnings 413 690 588
Goodwill on minority
interest acquired
in subsidiary - (1 041) (1 041)
Movement in fair value
on available-for-sale
financial instrument - - (9)
Total comprehensive loss
for the period (77 292) (6 346) 1 118 (301 899)
Attributable to:
Equity holders of the
holding company (77 788) (6 645) 1 071 (302 782)
Minority interest 496 299 883
Total comprehensive loss
for the period (77 292) (6 346) (301 899)
(Loss)/earnings per
share
Number of ordinary
shares in issue (`000) 205 626 205 626 205 626
Weighted average number
of ordinary shares
in issue (`000) 204 261 204 261 204 261
Diluted number of
ordinary shares in
issue (`000) 204 261 204 261 204 261
Basic and diluted
(loss)/earnings per
ordinary share (cents) (37,7) (6,8) (145,6)
- Continuing operations (32,3) (8,6) (115,5)
- Discontinuing
operations (5,4) 1,8 (30,1)
Headline loss per share
from continuing and
discontinuing
operations
Reconciliation:
Loss for the period
attributable to equity
holders of the holding
company (77 005) (13 832) (297 386)
Profit on disposal of
investment - (6 314) (5 556)
(Profit)/loss on
disposal of property,
plant and equipment (129) 662 2 655
Impairment of property,
plant and equipment - - 55 696
Impairment of goodwill - 17 058 82 760
Fair value adjustment on
assets held for sale 1 152 - 12 467
Tax effect of headline
adjustments - 828 722
Headline loss from
continuing and
discontinuing operations (75 982) (1 598) (148 642)
Basic and diluted
headline loss per
ordinary share from
continuing and
discontinuing operations
(cents) (37,2) (0,8) (72,8)
Condensed consolidated statement of financial position
as at 31 December 2009
Reviewed Unaudited Audited
six months six months year
ended ended ended
31 December 31 December 30 June
2009 2008 2009
R`000 R`000 R`000
Assets
Non-current assets
Property, plant and equipment 106 062 191 843 111 755
Goodwill 38 425 108 619 38 425
Investments and loans 11 796 11 497 11 385
Deferred taxation assets 6 916 38 031 6 410
163 199 349 990 167 975
Current assets
Inventories 114 192 235 818 126 550
Trade and other receivables 115 783 232 756 142 851
Receivable due from sale of
investment - 7 152 -
Taxation 2 058 15 674 6 145
Cash and cash equivalents 29 114 16 943 7 634
Assets held for sale 97 784 - 110 413
358 931 508 343 393 593
Total assets 522 130 858 333 561 568
Equity and liabilities
Total equity
Equity attributable to equity
holders of the parent company 5 501 379 466 83 702
Minority interest 2 052 1 396 1 667
7 553 380 862 85 369
Non-current liabilities
Deferred taxation liabilities 5 736 17 050 3 377
Long-term interest-bearing debt 43 075 74 231 41 332
Long-term lease accrual 30 128 22 336 24 486
78 939 113 617 69 195
Current liabilities
Trade, other payables and
provisions 101 262 149 594 112 427
Liabilities held for sale 25 008 - 36 638
Other current liabilities 7 552 1 577 2 136
Short-term interest-bearing debt 301 816 212 683 255 803
435 638 363 854 407 004
Total equity and liabilities 522 130 858 333 561 568
Net asset value per ordinary
share (cents) 3 185 41
Net tangible asset value per
ordinary share (cents) (16) 132 22
ADDITIONAL INFORMATION
Capital expenditure for the
period 3 175 15 659 22 653
Capital expenditure committed or
authorised - 8 220 7 603
Directors` valuation of
investments and loans 11 796 11 497 11 385
Finance and operating lease
commitments 365 813 442 544 405 457
Contingent liabilities 7 396 6 235 7 396
Cost of sales (continuing and
discontinuing) 284 276 372 613 700 758
Taxation Reconciliation -
continuing
South African normal taxation at
28% (17 109) (4 226) (58 892)
Deferred taxation asset not
raised 20 997 2 673 69 829
Capital profits - (1 407) (1 248)
Non-deductible expenses
(including goodwill impairments) 197 5 026 15 060
Other items 214 72 (7)
Taxation per income statement 4 299 2 138 24 742
Condensed consolidated statement of cash flows
for the six months ended 31 December 2009
Reviewed Unaudited Audited
six months six months year
ended ended ended
31 December 31 December 30 June
2009 2008 2009
R`000 R`000 R`000
Cash flows from operations (32 221) 39 936 (45 001)
Working capital changes 25 663 (8 358) 78 109
Net financing costs and taxation
paid (16 671) (25 218) (40 665)
Net cash (outflow)/inflow from
operating activities (23 229) 6 360 (7 557)
Additions to property, plant and
equipment (3 175) (12 570) (19 569)
Proceeds on disposal of
property, plant and equipment 3 901 1 527 1 673
Dividend received from associate - - 191
Decrease in investments and
loans - - 5 608
Minority interest acquired in
subsidiary - (1 000) (2 004)
Net cash inflow/(outflow) from
investing activities 726 (12 043) (14 101)
Other financing activities (17 680) (9 482) (23 445)
Net cash outflow from financing
activities (17 680) (9 482) (23 445)
Net decrease in cash equivalents (40 183) (15 165) (45 103)
Cash equivalents and bank
borrowings at beginning of the
period (211 415) (161 901) (161 901)
Movements resulting from FCTR (909) (2 432) (4 411)
Cash equivalents and bank
borrowings at end of the period (252 507) (179 498) (211 415)
Cash and cash equivalents* 29 114 16 943 17 972
Bank borrowings* (281 621) (196 441) (229 387)
Cash equivalents and bank
borrowings at end of the period (252 507) (179 498) (211 415)
* 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 six months ended 31 December 2009
Share
capital and Other Accumulated
premium reserves loss
R`000 R`000 R`000
Balance at 30 June 2008 82 395 11 704 294 438
Total comprehensive loss for the
period - 7 187 (13 832)
Movement in reserves (948)
Transfer from share-based
compensation reserve - (1 478) -
Investment by minorities - - -
Balance at 31 December 2008 82 395 17 413 279 658
Total comprehensive loss for the
period (12 583) (283 554)
Movement in reserves - 173
Transfer from share-based
compensation reserve - 200 -
Minority interest acquired - - -
Dividend paid - - -
Minority interest transferred to
liabilities held for sale
Balance at 30 June 2009 82 395 5 030 (3 723)
Total comprehensive loss for the
period (783) (77 005)
Movement in reserves - (413)
Dividend paid - - -
Balance at 31 December 2009 82 395 4 247 (81 141)
Attributable
to equity
holders
of the parent Minority Total
company interest equity
R`000 R`000 R`000
Balance at 30 June 2008 388 537 3 145 391 682
Total comprehensive loss for the
period (6 645) 299 (6 346)
Movement in reserves (948) (948)
Transfer from share-based
compensation reserve (1 478) - (1 478)
Investment by minorities - (2 048) (2 048)
Balance at 31 December 2008 379 466 1 396 380 862
Total comprehensive loss for the
period (296 137) 584 (295 553)
Movement in reserves 173 - 173
Transfer from share-based 200
compensation reserve 200 -
Minority interest acquired - 1 1
Dividend paid - (279) (279)
Minority interest transferred to
liabilities held for sale (35) (35)
Balance at 30 June 2009 83 702 1 667 85 369
Total comprehensive loss for the
period (77 788) 496 (77 292)
Movement in reserves (413) - (413)
Dividend paid - (111) (111)
Balance at 31 December 2009 5 501 2 052 7 553
Group segmental analysis
Discontinuing
Continuing operations operations
Aluminium
finished
Business segments Glass Extrusions goods Glass Sheerline
R`000 R`000 R`000 R`000 R`000
Revenue:
Reviewed period
ended 31 December
2009 258 046 92 176 137 898 56 441 69 920
% of subtotal
excluding
intercompany
eliminations 42% 15% 22% 9% 11%
Unaudited period
ended 31 December
2008 307 549 134 535 185 851 108 111 115 451
% of subtotal
excluding
intercompany
eliminations 36% 16% 22% 13% 14%
Audited year
ended 30 June
2009 551 431 232 068 319 105 165 295 202 594
% of subtotal
excluding
intercompany
eliminations 37% 16% 22% 11% 14%
Result:
Loss from
operations
Reviewed period
ended 31 December
2009 (36 329) (17 246) (11 829) (100) (11 005)
% to total 47% 23% 15% 0% 14%
Unaudited period
ended 31 December
2008 10 796 (9 403) (18 625) 4 554 (855)
% to total (80%) 69% 138% (34%) 6%
Audited year
ended 30 June
2009 (60 566) (77 332) (97 175) (18 036) (43 394)
% to total 20% 26% 33% 6% 15%
Subtotal
excluding
intercompany Intercompany
Business segments eliminations eliminations Total
R`000 R`000 R`000
Revenue:
Reviewed period ended
31 December 2009 614 481 (142 574) 471 907
% of subtotal excluding
intercompany eliminations
Unaudited period ended
31 December 2008 851 497 (205 358) 646 139
% of subtotal excluding
intercompany eliminations
Audited year ended 30 June
2009 1 470 493 (341 830) 1 128 663
% of subtotal excluding
intercompany eliminations
Result:
Loss from operations
Reviewed period ended
31 December 2009 (76 509)
% to total
Unaudited period ended
31 December 2008 (13 533)
% to total
Audited year ended 30 June
2009 (296 503)
% to total
The continuing operations are all located in Southern Africa. The discontinuing
glass operations are located abroad.
On adoption of IFRS 8 and in terms of the new restructured business, the new
operating segments are Glass, Extrusions and Aluminium finished goods.
Directors: RJ Douglas+ (CEO), JC Saville, HR Levin* (Non-executive Chairman), AA
Barrell* (Deputy Non-executive Chairman), BE Danoher*+, HF Brown*+
*Non-executive Irish +Independent +British
Registered office
1 Setchell road, Roodekop, 1401. 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.
Sponsor
Sasfin Bank Limited
www.ag-industries.com
Date: 30/03/2010 15:20:01 Produced by the JSE SENS Department.
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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.
