| Thu 1 Jul 2010, 10:57 | | AHL - AH-Vest Limited - Audited consolidated results for the year ended 31 March |
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AHL
AHL
AHL - AH-Vest Limited - Audited consolidated results for the year ended 31 March
2010
AH-VEST LIMITED
(Formerly All Joy Foods Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1989/000100/06)
Share code: AHL ISIN code: ZAE000129177
AUDITED CONSOLIDATED RESULTS FOR THE YEAR ENDED 31 MARCH 2010
Condensed statement of financial position
Year 9 Months
ended ended
31 March 2010 31 March 2009
R R
Assets
Non-current Assets 13,110,636 13,736,963
Property, Plant & Equipment 11,550,430 12,552,350
Deferred tax 450,000 -
Intangible asset 1,110,206 1,184,613
Current Assets 31,048,039 28,940,008
Inventories 12,160,883 11,918,933
Other financial assets 2,500,248 2,171,560
Trade & other receivables 11,708,017 12,796,200
Cash & cash equivalents 4,678,891 2,053,315
Total Assets 44,158,675 42,676,971
Equity and Liabilities
Capital and Reserves 17,888,021 16,742,153
Share capital 21,293,071 21,293,071
Reserves 4,688,610 4,688,610
Accumulated loss (8,093,660) (9,239,528)
Non current liabilities 160,948 90,830
Finance lease obligation 40,906 90,830
Operating lease liability 120,042
Current liabilities 26,109,706 25,843,988
Other financial liabilities 14,353,321 14,438,173
Finance lease obligation 41,390 66,256
Trade and other payables 11,714,995 10,789,559
Provisions - 550,000
Total Equity and Liabilities 44,158,675 42,676,971
Net asset value per share (cents) 17.54 16.42
Tangible net asset value per share 16.01 15.26
(cents)
Share in issue at year end (`000) 101,973,333 101,973,333
Condensed statement of comprehensive income
Year 9 Months
ended ended
31 March 2010 31 March 2009
R R
Revenue 77,545,096 55,001,578
Cost of Sales (50,778,111) (37,847,739)
Gross profit 26,766,985 17,153,839
Other income 1,283,354 2,163,309
Other operating expenses (26,156,196) (21,627,348)
Operating profit before finance 1,894,143 (2,310,200)
costs
Investment income 344,266 405,192
Finance costs (1,542,541) (1,505,893)
Profit/(Loss) before tax 695,868 (3,410,901)
Taxation 450,000 -
Profit/(Loss) for the period 1,145,868 (3,410,901)
Earning before interest, taxation, 3,134,465 (1,320,269)
depreciation and amortisation
("EBITDA")
Depreciation (1,240,322) (989,931)
Amortisation
Investment Income 344,266 405,192
Finance cost (1,542,541) (1,505,893)
Profit/(Loss) before taxation 695,868 (3,410,901)
Taxation 450,000 -
Profit/(Loss) for the period 1,145,868 (3,410,901)
Attributed to:
Equity holders of the company 1,145,868 (3,410,901)
Minority interest
Headline Profit/(loss)
calculation:
Profit/(Loss) attributed to equity 1,145,868 (3,410,901)
holders of the company
Adjusted for:
Profit on sale of plant (19,414) -
Impairment of assets 74,074 -
Headline earnings/(loss) 1,200,528 (3,410,901)
Weighted average shares in issue 101,973,333 96,249,125
Diluted weighted average shares in 101,973,333 96,249,125
issue
Earnings / (Loss) per share
(cents)
Earnings per share 1.12 (3.54)
Diluted earnings per share 1.12 (3.54)
Headline earnings per share 1.18 (3.54)
Diluted Headline earnings per 1.18 (3.54)
share
Adjusted headline earnings per 1.18 (3.54)
share
Statement of changes in equity
Share Share Total share
Capital premium capital
R R R
Balance at 01 April 2008 419,734 6,423,844 6,843,578
Changes in equity
Total comprehensive loss - - -
for the year
Rights issue of shares 600,000 13,849,493 14,449,493
Total changes 600,000 13,849,493 14,449,493
Balance at 01 April 2009 1,019,734 20,273,337 21,293,071
Changes in equity
Total comprehensive - - -
income for the year
Total changes - - -
Balance at 31 March 2010 1,019,734 20,273,337 21,293,071
Revaluati Accumulated Total Equity
on Loss
reserve
R R R
Balance at 01 April 2008 4,169,678 (5,828,625) 5,184,631
Changes in equity
Total comprehensive loss 518,932 (3,410,901) (2,891,969)
for the year
Rights issue of shares - - 14,449,493
Total changes 518,932 (3,410,901) 11,557,524
Balance at 01 April 2009 4,688,610 (9,239,526) 16,742,155
Changes in equity
Total comprehensive income - 1,145,868 1,145,868
for the year
Total changes - 1,145,868 1,145,868
Balance at 31 March 2010 4,688,610 (8,093,658) 17,888,023
Condensed statement of cash flows
12 months 9 months
ended ended
31 March 31 March
2010 2009
R R
Cash flows from operating activities
Cash generated from operation 4,531,165 (7,605,878)
interest income 344,266 405,192
Finance costs (1,542,541) (1,505,893)
Tax paid - (1,663,986)
Net cash from operating activities 3,332,890 (10,370,565)
Cash flows from investing activities
Purchases of property, plant and (253,919) (233,128)
equipment
Proceeds on sale of property, plant 34,935 1,197
and equipment
Loans advanced to group companies (328,688) (2,171,560)
Net cash from investing activities (547,672) (2,403,491)
Cash flows from financing activities
Proceeds on share issue - 600,000
Net proceeds on share rights issue - - 13,849,496
share premium
Repayment of other financial (84,852) (1,229,133)
liabilities
Repayment of shareholders loan - -
Finance lease payments (74,790) (79,934)
Net cash from financing activities (159,642) 13,140,429
Total cash movement for the year 2,625,576 366,373
Cash at the beginning of the year 2,053,315 1,686,942
Total cash at end of the year 4,678,891 2,053,315
COMMENTARY
The board presents the reviewed results for the year ended 31 March 2010.
BASIS OF PREPARATION
The condensed abridged financial statements of the Group are prepared as a going
concern on a historical cost basis. The condensed abridged financial statements
conform to International Accounting Standard 34: Interim Financial Reporting,
the Listings Requirements of the JSE Limited, and the Companies Act of South
Africa (Act 61 of 1973), as amended. The principal accounting policies, which
comply with International Financial Reporting Standards, have been consistently
applied in all material respects in the current and comparative period. All new
interpretations and standards were assessed and adopted with no material impact,
except for IAS1: Presentation of Financial Statements that required some
modified disclosures and terminology.
The Group`s auditors, PKF Pretoria, have audited these results and a copy of
their unmodified review opinion on this set of condensed financial information
is available for inspection at the company`s registered office.
RESULTS
Income statement:
The company`s year end has been changed from June to March each year, therefore
the comparative period that is being reported on is not aligned with the prior
period.
The board is pleased to advise that for the 12 months to 31 March 2010, sales
revenue increased by approximately R23.5 million when compared to the previous
period although the prior period was only 9 months of trading. Sales revenue
for the 12 month period compared to the prior period annualised results
increased by 16.45%. This can be attributed to the strategy and plan to promote
and expand added value brands changing the company`s sales mix to cope with the
expected reduction in volume whilst the company`s reposition the tomato sauce
brand so that it can regain its volume levels without reducing its margin. New
lightweight, environmentally friendly packaging was introduced in February 2010.
Volume was effectively down 1% on annualised revenue.
Gross profit increased by 3.5% which is attributed to the turnaround strategy
and a focus on reducing and controlling costs. Gross profit improved by 11%
compared to the prior period.
Operating expenses reduced by approximately 8% for the period under review when
comparing on an annualised basis. This is an ongoing process which has not been
fully realised as at 31 March 2010.
The company is pleased to report a return to profitability following the
restructuring efforts over the past two years, with earnings per share of 1.12
cents compared to a loss per share of (3.54) cents in the prior period.
Headline earnings have moved from a headline loss of R3.4 million to headline
earnings of R1.2 million, being a loss of (3.54) cents in the prior period and
1.18 cents headline earnings per share for the current year.
Balance sheet:
The company has significantly improved its management of working capital, with
bank balances showing a substantial increase over the prior period.
The net asset value and tangible net asset value of the company improved to
17.54 cents and 16.01 cents respectively.
Segmental analysis
No segmental analysis has been presented as the company operates primarily
within South Africa. It is expected that the second period will include sub-
Saharan exports.
ACQUISITIONS AND DISPOSALS
There were no acquisitions or disposals during the year under review.
ISSUE OF SHARES
There were no share issues during the year under review.
CHANGE IN BOARD OF DIRECTORS
Ms Martie Van Rensburg, non-executive director, rotated off the board with
effect from 30 October 2009. Subsequent to the year end and with immediate
effect, Mr Parmanathan Mariemuthu, will change his role from executive chairman
to non-executive chairman and Mr Antonio Gonsalves, who has resigned as an
employee of the group, will remain as a non-executive director.
DIVIDENDS
No dividends were declared during the period. (2009: Nil).
FUTURE PROSPECTS
The company is committed as a black organically grown enterprise, to be the most
competitive, focusing on its experience to recognise local tastes. The cost
reduction program on packaging material was implemented in March 2010 using
alternate lower cost packaging material and upgrading production lines to handle
the change. This improvement is a process and the company is mindful of
ensuring and maintaining its high quality standard that its brands are known
for. The company also intends to use its 21 year old brand platform to expand
into new products.
The outlook for 2011 is positive and the company aims to increase the
distribution on its Veri Peri brand and extend the range. The new light weight
environmentally friendly 750ml plastic bottle and 2Lt All Joy tomato sauce is
expected to boost the company`s performance and the company will launch an "out-
of-home" range for summer braai`s and eating out.
SUBSEQUENT EVENTS
Subsequent to year end, the company is pleased to advise that the Land Bank
agreed to change the annual working capital facility to a term loan repayable
over 8 years. In addition, a further amount of R1.6 million has been agreed to
be advanced to the company for further capital expansion.
There are no other subsequent events that require disclosure at the date of this
announcement.
Johannesburg
30 June 2010
Directors:
Executive Directors: MT Pather (CEO); M Hill (FD);
Non-Executive Directors: P Mariemuthu (Chairman); MD Mawere; R Manning; A
Gonsalves
Registered address
Arcay House,No. 3 Anerley Road, Parktown 2193
Designated
AdvisorsArcay Moela
Sponsors (Proprietary)
Limited
Transfer secretaries
Computershare Investor
Services (Pty) Ltd
Auditors Company Secretary
PKF Chartered Arcay Client Support
Accountants (SA) (Proprietary) Limited
Date: 01/07/2010 10:57:04 Produced by the JSE SENS Department.
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