| Thu 16 Sep 2010, 11:40 | | WTL - William Tell Holdings Limited - Audited results for the year ended 30 June |
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WTL
WTL
WTL - William Tell Holdings Limited - Audited results for the year ended 30 June
2010
WILLIAM TELL HOLDINGS LIMITED
(Registration number 2004/030045/06)
Share code: WTL
ISIN: ZAE000098133
("William Tell" or "the Company" or "the Group")
AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2010
Commentary
OVERVIEW OF THE BUSINESS
William Tell is a mass producer of wood-based panels. The Group is vertically
integrated with all manufacturing operations consolidated on one site in the
industrial area of Chamdor in Krugersdorp. Activities range from production of
chipboard from wood waste, application of melamine and other decorative surfaces
to production of furniture elements and ready to assemble furniture.
OPERATIONAL REVIEW
Trading continued to be exceptionally difficult with both prices and margins
under pressure due to aggressive competition and higher input costs. Despite
this, revenues were marginally ahead of last year.
The loss of R20,7 million was affected by non recurring items, namely profit on
the sale of assets which included the profit on the sale of the Booysens
property of R10,3 million, an impairment of R34,7 million on the old Booysens
chipboard plant and relocation costs of R5,8 million. We incurred a trading loss
this year due to the increase in manufacturing costs as a result of the new
Chamdor chipboard plant being commissioned during this financial year.
Trade debtors increased as our customers experienced the pressure of these
difficult trading conditions, however management continues to exercise tight
control over debtor collections. We settled R34,3 million debt which resulted
in the debt gearing ratio decreasing from 50% to 38% during this financial year.
The current taxation payable relates mainly to the capital gains tax which was
levied on the capital gain on the sale of the Booysens property.
PROSPECTS
Whilst demand for our products remains below expectations we are encouraged by
year on year sales growth for the first two months of our new financial year.
The 2010 results were achieved with the factory operating at 50% of capacity and
results will be enhanced once trading improves. We expect to receive R15
million of our approved tax free cash DTI grant before December 2010. The
balance of R15 million is expected to be received before December 2011.
DIVIDENDS
In the light of the current market conditions, the directors regard it prudent
not to declare a dividend.
SUBSEQUENT EVENTS
No material events have occurred between the statement of financial position
date and the date of this announcement that would have a material effect on the
financial statements of the Group.
BASIS OF PREPARATION
These abridged financial results have been prepared in accordance with
International Financial Reporting Standards ("IFRS") and AC 500 standards as
issued by the Accounting Practices Board, in particular IAS 34: Interim
Financial Reporting, the South African Companies Act, as amended, and the
Listings Requirements of the JSE Limited. The principal accounting policies used
in the preparation of the audited results for the period ended 30 June 2010 are
consistent with those applied for the year ended 30 June 2009. The following
standard and amendment to standards have been adopted in accordance with the
transitional provisions of the standard;
IAS 1 - Presentation of Annual Financial Statements
The adoption of the above did not have a material impact on the Group`s
financial statements and only resulted in additional disclosure.
AUDIT OPINION
The abridged financial results for the year ended 30 June 2010 have been audited
by the Group`s auditors, BDO South Africa Inc, and the unmodified audit report
is available for inspection at the Company`s registered office.
NOTICE OF THE ANNUAL GENERAL MEETING
Notice is hereby given that the Annual General Meeting of shareholders will be
held at 31 Van Eck Street, Chamdor on Wednesday, 17 November 2010 at 09:00, to
transact the business stated in the notice of the Annual General Meeting
contained in the Annual Report, which Annual Report is in the process of being
prepared and which will be posted to shareholders by no later than 30 September
2010.
BY ORDER OF THE BOARD
R B Patmore (Chairman)*, B P Lok (Chief Executive Officer),
N Govender (Financial Director), W H Lok, N de Winnaar,
M G Meehan*
*Independent, non-executive
16 September 2010
Abridged Consolidated Statements of
Comprehensive Income
Audited Audited
R`000 June 2010 June 2009
Revenue 139 484 134 551
Cost of sales (117 472) (104 110)
Gross profit 22 012 30 441
Other income 12 566 1 154
Profit/(Loss) on the sale of 10 343 (1 114)
property, plant and equipment
Other 2 223 2 268
Administrative and other operating (61 685) (22 800)
expenses
Impairment of property, plant and (34 748) -
equipment
Relocation costs (5 879) -
Other (21 058) (22,800)
Operating (loss)/profit (27 107) 8 795
Investment income 425 2 196
Foreign exchange loss (21) (403)
Interest paid (7 198) (3 418)
(Loss)/Profit before taxation (33 901) 7 170
Taxation 13 210 (1 611)
(Loss)/Profit for the year (20 691) 5 559
Depreciation and amortisation for 11 126 6 103
the period
Basic and diluted (loss)/earnings (16,6) 4,4
per share (cents)
Headline and diluted (loss)/earnings (2,5) 5,1
per share (cents)
Reconciliation of basic
(loss)/earnings to headline
(loss)/earnings
Basic (loss)/earnings (20 691) 5 559
Adjusted by the after tax effect of
the following:
- (Profit)/Loss on the sale of (7 447) 802
property, plant and equipment
- Impairment of property, plant and 25 026 -
equipment
Headline (loss)/earnings (3 112) 6 361
Number of ordinary shares in 125 000 125 000
issue (`000)
Weighted average number of 125 000 125 000
shares (`000)
Abridged Consolidated Statement of
Changes in Equity
Audited Audited
R`000 June 2010 June 2009
Share capital
Balance at the beginning of the year 1 250 1 250
Shares issued during the year - -
Balance at the end of the year 1 250 1 250
Share premium
Balance at the beginning of the year 179 265 179 265
Share issue expenses - -
Balance at the end of the year 179 265 179 265
Accumulated profit and other reserves
Balance at the beginning of the year 31 001 25 442
(Loss)/Profit for the year (20 691) 5 559
10 310 31 001
Abridged Consolidated
Statements of Financial
Position
Audited Audited
R`000 June 2010 June 2009
ASSETS
Non-current assets 221 538 267 151
Property, plant and equipment 221 506 267 097
Intangible assets 32 54
Current assets 68 376 62 067
Inventories 27 051 24 675
Trade and other receivables 29 971 22 410
Current taxation receivable - 387
Cash and cash equivalents 11 354 14 595
Non-current assets held for 8 000 33 321
sale
297 914 362 539
EQUITY AND LIABILITIES
Capital and reserves 190 825 211 516
Share capital 1 250 1 250
Share premium 179 265 179 265
Accumulated profit 10 310 31 001
Non-current liabilities 59 800 104 769
Interest-bearing borrowings 54 688 80 515
Deferred taxation 2 151 21 012
Deferred income 2 961 3 242
Current liabilities 47 289 46 254
Trade and other payables 24 056 19 460
Interest-bearing borrowings 17 347 25 582
Provisions 906 1 212
Current taxation payable 4 980 -
297 914 362 539
Net asset value per share 153 169
(cents)
Capital expenditure for the 13 522 58 572
period (R`000)
Abridged Consolidated Cash Flow Statement
Audited Audited
R`000 June 2010 June 2009
Net cash generated by operations 2 809 12 830
Net finance costs (6 794) (1 625)
Taxation paid (52) (1 250)
Cash flow from operating activities (4 037) 9 955
Cash flow from investing activities 34 857 (56 029)
Cash flow from financing activities (34 061) 10 873
Movement in cash and cash equivalents (3 241) (35 201)
Cash and cash equivalents at the 14 595 49 796
beginning of the year
Cash and cash equivalents at the end 11 354 14 595
of the year
Segmental report
This is a single segment group and no segmental reporting is provided.
Registered address
31 Van Eck Street
Chamdor
1740
Designated and corporate advisor
PSG Capital (Proprietary) Limited
Ground Floor, DM Kisch House
Inanda Greens Business Park
54 Wierda Road West
Wierda Valley
Sandton 2196
Company secretary
S van Schalkwyk
Registered auditors
BDO South Africa Inc.
13 Wellington Road
Parktown 2193
www.williamtellholdings.co.za
Date: 16/09/2010 11:40:01 Produced by the JSE SENS Department.
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