| Tue 1 Jun 2010, 13:19 | | CMG - Cenmag Holdings Limited - Reviewed results f |
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CMG
CMG
CMG - Cenmag Holdings Limited - Reviewed results for the year ended 28 February
2010 and renewal of cautionary announcement
CENMAG HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/004821/06)
Share code: CMG ISIN code: ZAE000001533
(`Cenmag" or `the company`)
REVIEWED RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2010
AND RENEWAL OF CAUTIONARY ANNOUNCEMENT
CONDENSED STATEMENT OF FINANCIAL POSITION Reviewed Audited
28 February 28 February
2010 2009
R`000 R`000
ASSETS
Non -current assets 7 633 7 142
Property, plant and equipment 7 405 7 029
Deferred tax 228 113
Current assets 13 585 16 041
TOTAL ASSETS 21 218 23 183
EQUITY AND LIABILITIES
Capital and reserves 16 298 13 757
Non-controlling interest 482 452
Interest bearing liabilities - long and short -- 2 536
term
Interest free liabilities 4 438 6 438
TOTAL EQUITY AND LIABILITIES 21 218 23 183
CONDENSED STATEMENT OF COMPREHENSIVE INCOME Reviewed Audited
year year
ended ended
28 February 28 February
2010 2009
R`000 R`000
Gross Revenue 34 615 36 286
Cost of sales 22 480 23 913
Gross profit 12 135 12 373
Operating costs 9 350 6 545
Operating income 2 785 5 828
Depreciation 382 379
Operating income 2 403 5 449
Net finance income 826 431
Profit before tax 3 229 5 880
Taxation 658 1 693
Profit after tax 2 571 4 187
Non-controlling interest 30 30
Profit attributable to shareholders 2 541 4 157
Headline earnings 2 541 4 157
Earnings per share information
Number of shares in issue (000`s) 9 600 9 600
Basic earnings per share (cents) 26.47 43.3
Headline earnings per share (cents) 26.47 43.3
CONDENSED STATEMENT OF CASH Reviewed Audited
FLOWS 28 February 28 February
2010 2009
R`000 R`000
Cash flows from operating activities 2 405 4 840
Cash flows from investing activities 758 (3)
Cash effects of financing activities (2536) (377)
Net decrease in cash and cash equivalents (627) 4 460
Cash at beginning of year 8 893 4 433
Cash at the end of year 8 266 8 893
SEGMENT REPORTING Reviewed Audited
year ended year ended
28 February 28 February
2010 2009
R`000 R`000
Revenue
Manufacturing and Service 13 864 16 510
Wholesaling 20 751 19 776
Total 34 615 36 286
Profit from operating activities
Manufacturing and Service 2 085 5 564
Wholesaling 700 264
Total 2 785 5 828
GROUP STATEMENT OF Share Share Retained Total
CHANGES IN EQUITY capital premium income
R`000 R`000 R`000 R`000
Balance at 01 March 2008 96 2 090 7 414 9 600
Net profit for the year -- -- 4 157 4 157
Balance at 28 February 2009 96 2 090 11 571 13 757
Net profit for the year -- -- 2 541 2 541
Balance at 28 February 2010 96 2 090 14 112 16 298
COMMENTARY
RESULTS
The board presents its reviewed results for the year ended 28 February 2010 in
accordance with IAS 34: Interim Financial Reporting. The company is an
investment holding company and its subsidiaries are primarily involved in the
manufacture and servicing of electromagnets and motor rewinding and the
wholesaling of electrical and related equipment.
BUSINESS OVERVIEW
In line with prevailing economic conditions, the group experienced a decline in
demand for its products. Group headline earnings per share dropped by 38.87% on
a 4.60% decline in sales, from 43.03 cents earnings per share to 26.47 cents
earnings per share. Based on a judgement call by the directors, the company
have not appointed an audit committee for the year in terms of section 269A (1),
the benefit and the effect of is additional earnings of 4.00 cents per share
which is included into the bottom line of the group.
SUBSEQUENT EVENTS AND FUTURE PROSPECTS
Shareholders are referred to the SENS cautionary announcement dated 14 May 2010
and are advised that the company has entered into various agreements, dated 11
May 2010, which when taken together will result in:
a) the company repurchasing 35.53% of its issued share capital; and
b) the company disposing of its existing subsidiaries
As a result of the above transactions the company will become a cash shell.
ACCOUNTING POLICIES AND REVIEW
The financial results have been prepared in accordance with accounting policies
that comply with International Financial Reporting Standards ("IFRS") and JSE
Listings Requirements of the JSE Limited. The accounting policies and methods
of measurement and recognition are consistent with those applied in the previous
financial period. The results have been reviewed by the external auditors,
Horwath Leveton Boner, whose modified report is available for inspection at the
registered office of the company. The modification relates to a continuing
reportable irregularity of the company`s failure to appoint an audit committee
as disclosed in the Business Overview paragraph above. To date no response has
been received from the relevant regulatory body.
DIRECTORS
Shareholders attention is drawn to the fact that Mr Victor Farkas fulfils the
roles of Chairperson, Chief Executive Officer and Financial Director of the
Company. This does not adhere to King Code III as required by the JSE Listings
Requirements of the JSE Limited. The directors justify this based on the size
of the Group, that Mr Farkas has the necessary skills and experience and that it
represents a cost saving to the Group.
Mr JJ Farkas was appointed to the board with effect from 16 September 2009 in
order to fill the casual vacancy that had arisen as a result of Ms I Mazibuko
not being re-elected as a director at the Annual General Meeting of the company
held on 7 September 2009.
GENERAL
1. No new shares were issued and no special resolutions were passed during the
period under review.
2. No dividends were recommended or declared for the period.
RENEWAL OF CAUTIONARY ANNOUNCEMENT
Further to the cautionary announcement dated 14 May 2010, shareholders are
advised to continue to exercise caution in dealing in the company`s securities
until such time as the dates relating to the proposed specific repurchase of
shares and the cancellation and termination of listing of the shares to be
repurchased and the associated pro forma financial effects of the proposed
specific repurchase of shares are announced on SENS.
Johannesburg
31 May 2010
Company Secretary Registered Office
V. Farkas M. Econ C.A. (S.A.) 30 Bisset Road, Jet Park, Boksburg
PO Box 870, Isando, 1600 PO Box 870, Isando, 1600
Directors
V.Farkas (CEO), C.J.B. Le Roux , J.J. Farkas, E.M. Greenblatt (Non-executive
director)
Sponsor Transfer Office
Arcay Moela Sponsors Computershare Investor Services (Proprietary)
(Proprietary) Limited Limited
Date: 01/06/2010 13:19:01 Produced by the JSE SENS Department.
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