| Thu 30 Aug 2007, 15:37 | | WLO/WLN/WLOP/WLP1 - Wooltru Limited - Year end res |
|
WLO WLN WLP1 WLOP
WLO
WLO/WLN/WLOP/WLP1 - Wooltru Limited - Year end results 30 June 2007
Wooltru Limited
(Registration number: 1936/008278/06)
Share code: WLO ISIN Code: ZAE000007993
Share code: WLN ISIN Code: ZAE000008744
Share code: WLOP ISIN Code: ZAE000008009
Share code: WLP1 ISIN Code: ZAE000008017
Year end results 30 June 2007
Chairman`s Review - June 2007
Group Results
During the year-ended 30 June 2007 Wooltru recorded a profit before taxation of
R1.4 million compared to R4.0 million for the previous year. Wooltru
distributed R155.4 million during January 2006 to shareholders. The decrease in
cash resources resulted in a decrease in interest earnings for the current year.
Due to existing assessed losses no taxation was paid during the current or
previous financial year.
Medical Aid Claims
In regard to the claims by former employees of the business of Central News
Agencies Limited ("CNA") regarding post-retirement medical aid contributions, it
has been held that Wooltru is liable for any claims, which may be proved against
Johnnic Book Retail Limited ("Johnnic") (formerly CNA Gallo Limited) by
erstwhile employees of the business of CNA, as at 1 September 1997. However
there is uncertainty regarding the success of any claims against Johnnic and
consequently the liability of Wooltru.
In December 2005 Wooltru lodged a bank guarantee with Johnnic of R20.8 million
which covered total potential claims as calculated by Johnnic. Wooltru has noted
R13.9 million as a contingent liability in note 6 of the annual financial
statements. Legal action continues.
Taxation Queries
As disclosed in previous communications, South African Revenue Services (SARS)
has raised a revised assessment for Wooltru Property Holdings (Pty) Ltd for the
2001 year of assessment adding back to taxable income an amount of R50.9 million
as a taxable recoupment in respect of leasehold improvements claimed as a
deduction by a taxpayer in terms of section 11(f) of the Act. The case was heard
by the Tax Court of Cape Town in December 2006. The judge ruled in favour of
Wooltru Property Holdings (Pty) Ltd. SARS has since appealed against the ruling.
Wooltru will continue to dispute the claim. A contingent liability of R24.6
million (2006: R23.4 million) is disclosed in note 6 of the annual financial
statements to cover all possible eventualities.
Board Composition
During the period under review there were two executive directors, Messrs A
Groll and AM Louw while Mr M Kaplan and Dr JC van der Horst served as non-
executive directors. There have been no changes in directorship during the year.
Prospects
It is not possible to predict the outcome of the remaining claim for medical aid
contributions of former CNA employees or the unresolved taxation queries with
any accuracy. Shareholders will be advised of any developments regarding these
matters.
Balance sheet
Audited
Year ended 30 June
2007 2006
Rm Rm
ASSETS
Non-current assets
Deferred tax 1,3 2,3
Current assets 57,8 57,1
Listed investments 16,9 23,0
Trade and other receivables 0,3 0,5
Taxation 1,6 1,6
Bank balances and cash equivalents 39,0 32,0
Total assets 59,1 59,4
EQUITY AND LIABILITIES
Capital and reserves attributable to equity holders 57,2 56,8
Ordinary share capital 9,9 9,9
Share premium 464,7 464,7
Non-distributable reserves 8,1 8,1
Accumulated loss (425,5) (425,9)
Total equity 57,2 56,8
Non-current liabilities
Preference share capital 1,5 1,5
Current liabilities
Trade and other payables 0,4 1,1
Total equity and liabilities 59,1 59,4
Net asset value per share (cents) 12,1c 12,1c
Income statement
Audited
Year ended 30 June
2007 2006
Note Rm Rm
Revenue 3 4,5 9,1
Other income 1,2 0,8
Total income 5,7 9,9
Other operating costs (4,2) (6,9)
Profit before: 1,5 3,0
Recovery of loan previously written off - 1,2
Profit from operations 1,5 4,2
Finance costs (0,1) (0,2)
Profit before taxation 1,4 4,0
Taxation (1,0) (8,4)
Profit/(loss) attributable to equity holders 0,4 (4,4)
Earnings per share
Basic earnings per share (cents) 0,1c (0,9c)
Diluted earnings per share (cents) 0,1c (0,9c)
Distribution per share (cents) - 33,0c
Cash flow statement
Audited
Year ended 30 June
2007 2006
Rm Rm
Cash flow from operating activities
Cash flow from trading (4,2) (19,7)
Working capital movements (0,5) 2,7
Cash utilised in operating activities (4,7) (17,0)
Finance income 4,5 9,1
Finance costs (0,1) (0,2)
Distribution paid - (155,4)
Net cash outflow from operating activities (0,3) (163,5)
Cash flow from investing activities
Purchase of listed investments (28,9) (49,1)
Proceeds on sale of listed investments 36,2 42,6
Net cash inflow/(outflow) from investing activities 7,3 (6,5)
Net increase/(decrease) in cash and cash equivalents 7,0 (170,0)
Cash and cash equivalents at beginning of period 32,0 202,0
Cash and cash equivalents at end of period 39,0 32,0
Statement of changes in equity
Audited
Year ended 30 June
2007 2006
Note Rm Rm
Capital and reserves attributable to equity
holders at the beginning of the period 56,8 216,6
Recognised gains and losses
Profit/(loss) attributable to equity holders 0,4 (4,4)
Distribution paid 7 - (155,4)
Capital and reserves attributable to equity
holders at end of the period 57,2 56,8
Notes
1. The annual financial statements were prepared in accordance with
International Financial Reporting Standards (IFRS).
The annual financial statements are prepared on the historical cost basis
except for financial instruments carried at fair value. All significant
accounting policies have been consistently applied throughout the group.
2. The annual financial statements have been prepared on the going concern
basis as the directors have every reason to believe that the group has
adequate resources to continue in operation for the year ahead.
Audited
Year ended 30 June
2007 2006
Rm Rm
3. Revenue
Finance income 4,5 9,1
4. Headline earnings per share is calculated as follows:
Profit before taxation 1,4 4,0
Taxation (1,0) (8,4)
Profit/(loss) attributable to equity holders 0,4 (4,4)
Headline earnings 0,4 (4,4)
Headline earnings per share (cents) 0,1 (0,9)
5. The group has no credit banking facilities, although there is no limit on the
group`s authority to raise interest-bearing debt.
6. Contingent liabilities:
CNA post-retirement medical aid liability* 13,9 13,9
SARS tax re-assessment on leasehold
improvements recoupment** 24,6 23,4
* In regard to the claims by former employees of the business of Central News
Agencies Limited ("CNA") regarding post-retirement medical aid contributions, it
has been held that Wooltru is liable for any claims, which may be proved against
Johnnic Book Retail Limited ("Johnnic") (formerly CNA Gallo Limited) by
erstwhile employees of the business of CNA, as at 1 September 1997. In December
2005 Wooltru lodged a bank guarantee with Johnnic of R20.8 million which covered
total potential claims as calculated by Johnnic. Wooltru`s best estimate of the
possible liability is R13.9 million. Wooltru is disputing the claim.
** SARS raised an assessment for the 2001 year adding back an amount as a
taxable recoupment with interest and penalties. During December 2006 the Tax
Court ruled in favour of Wooltru. SARS has since appealed against the ruling.
7. Distribution paid
Declared and paid during the year
33 cents per share was paid out of share premium - 155,4
Audited
Year ended 30 June
2007 2006
8. Share capital Number of shares Number of shares
Issued
Ordinary share capital 194,767,260 194,767,260
"N" Ordinary share capital 276,092,675 276,092,675
9. PKF (Newlands) Inc. has provided an unqualified audit opinion, which is
available for inspection at the company`s registered office, on the June 2007
annual financial statements, which have been summarised for the purposes of this
report.
Directorate and administration:
Wooltru Limited (Registration number: 1936/008278/06)
Directors:
M Kaplan (chairman)*, Dr JC van der Horst*, A Groll, AM Louw,
* Non-executive
Secretary:
L Moller
Domicile and registered office:
1st Floor, The Spearhead, 42 Hans Strijdom Avenue, Foreshore, Cape Town, 8001,
South Africa
Postal address: PO Box 671, Cape Town, 8000
Web site: http://www.wooltru.co.za
Telephone Number: (021) 421 5550
Fax Number: (021) 421 5551
Transfer secretary:
Computershare Investor Services 2004 (Pty) Limited, 70 Marshall Street,
Johannesburg, 2001
Sponsor:
Bridge Capital Advisors (Pty) Limited
Principal banker:
The Standard Bank of South Africa Limited
Auditors:
PKF (Newlands) Inc
Date: 30/08/2007 15:37:01 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.
