| Thu 15 Feb 2001, 0:00 | | Brandcorp Holdings Limited Unaudited Results |
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BRANDCORP HOLDINGS LIMITED
Incorporated in the Republic of South Africa
Registration number 1992/006647/06
("Brandcorp" or "the group")
Earnings per share up 23.3%
Net asset value per share up 27.2%
UNAUDITED INTERIM RESULTS FOR THE 6 MONTHS ENDED 31 DECEMBER 2000
GROUP INCOME STATEMENT
31 Dec 2000 31 Dec 1999 30 June 2000
Unaudited Unaudited Audited
R000 R000 R000
Turnover 244,174 251,967 464,244
- Continuing operations 244,174 236,319 449,189
- Discontinued operations - 15,648 15,055
Operating profit 20,751 22,336 37,198
- Continuing operations 20,751 21,632 36,340
- Discontinued operations - 704 858
Net interest received 1,547 (155) 1,797
- Continuing operations 1,547 549 2,643
- Discontinued operations - (704) (846)
Net profit before taxation 22,298 22,181 38,995
- Continuing operations 22,298 22,181 38,983
- Discontinued operations - - 12
Exceptional items 2,550 - -
Taxation (7,403) (5,829) (7,820)
- Current (5,206) (4,616) (8,229)
- Secondary tax on companies (713) (475) (1,273)
- Deferred taxation (1,484) (738) 1,682
Net profit after taxation 17,445 16,352 31,175
- Continuing operations 17,445 16,352 31,163
- Discontinued operations - - 12
Number of shares in issue (000) 149,460 190,159 171,143
Weighted ave. no. of shares (000 164,840 190,159 188,367
Headline earnings per share -
cents 9.0 8.6 16.5
Earnings per share - cents 10.6 8.6 16.6
Diluted earnings per share -
cents 10.5 8.6 16.6
RECONCILIATION OF HEADLINE EARNINGS
31 Dec 2000 31 Dec 1999 30 June 2000
Unaudited Unaudited Audited
R000 R000 R000
Net profit attributable to
shareholders 17,445 16,352 31,175
Profit from discontinued
operations - - 12
Profit on disposal of investment 560 - -
Recovery of vendor claims 1,990 - -
Headline earnings 14,895 16,352 31,163
ABRIDGED GROUP BALANCE SHEET
31 Dec 2000 31 Dec 1999 30 June 2000
Unaudited Unaudited Audited
R000 R000 R000
ASSETS
Non - current assets 27,656 21,703 21,047
Tangible fixed assets 14,080 9,352 6,317
Share incentive trust 1,012 721 682
Deferred taxation 12,564 11,630 14,048
Current assets 230,689 251,885 243,395
Inventories 92,971 84,528 91,324
Accounts receivable 114,779 135,186 97,750
Bank balances and cash 22,939 32,171 54,321
258,345 273,588 264,442
EQUITY AND LIABILITIES
Capital and reserves 197,002 189,424 194,387
Shareholders equity 188,569 188,675 193,881
Long term liabilities 8,433 749 506
Current liabilities 61,343 84,164 70,055
Non-interest bearing liabilities 61,273 73,464 69,709
Interest bearing liabilities 70 321 346
Bank overdraft - 10,379 -
258,345 273,588 264,442
Net asset value per share (cents) 126.2 99.2 113.3
SUMMARISED CASH FLOW STATEMENT
31 Dec 2000 31 Dec 1999 30 June 2000
Unaudited Unaudited Audited
R000 R000 R000
CASH FLOWS FROM OPERATING
ACTIVITIES (7,049) 7,579 50,360
Profit before working capital
movements 24,456 23,959 42,313
(Increase) decrease in working
capital (31,297) (14,462) 8,785
Net finance income (charges) 1,547 (155) 1,797
Taxation paid (1,755) (1,763) (2,535)
CASH UTILISED IN INVESTING
ACTIVITIES (23,449) (1,115) (11,148)
Purchase of fixed assets (9,026) (1,052) (2,055)
Proceeds on disposal of fixed
assets 106 163 710
Ordinary shares repurchased (14,200) - (9,616)
Increase in loan to share trust (329) (226) (187)
CASH FLOWS FROM FINANCING
ACTIVITIES (884) (4,693) (4,912)
Proceeds from (payment of) long
term borrowings 7,651 (890) (1,109)
Dividends paid (8,535) (3,803) (3,803)
NET MOVEMENT IN CASH RESOURCES (31,382) 1,771 34,300
Cash and cash equivalents at the
beginning of the period 54,321 20,021 20,021
Cash and cash equivalents at the
end of the period 22,939 21,792 54,321
STATEMENT OF CHANGES IN EQUITY
R000 R000 R000 R000
Share Share Accumulated Total
Capital Premium Profits
Balance at 1 July 1999 1,902 131,149 43,074 176,125
Net profit for the period - - 31,175 31,175
Shares repurchased - (9,616) - (9,616)
Dividend - - (3,803) (3,803)
Balance at 30 June 2000 1,902 121,533 70,446 193,881
Net profit for the period - - 17,445 17,445
Shares repurchased (217) (13,983) - (14,200)
Dividend - - (8,557) (8,557)
Balance at 31 December 2000 1,685 107,550 79,334 188,569
SEGMENTAL ANALYSIS
R000 R000 R000 R000
Turnover Operating Tangible Liabilities
Profit Assets
Leisure & Accessories 36,661 3,653 35,293 8,364
House & Home 54,951 4,497 46,578 15,162
DIY, Tools & Hardware 152,562 13,236 135,475 37,718
Other - (635) 28,435 8,532
Total 244,174 20,751 245,781 69,776
BRANDCORP IS A DISTRIBUTOR OF:
MATUS - Tools and hardware
INTERBRAND - Cellini luggage, handbags and accessories
M.I.C. - Dinner, table and giftware
PRESTIGE - Kitchen utensils
DECOCRAFT - Kitchen and tableware products to the hospitality industry
COMMENT
The results of the group for the 6 months ended 31 December 2000 are
commendable. Having regard to the prevailing difficult economic conditions and
the continued depressed levels of consumer spending, Brandcorp has delivered
highly satisfactory results for the period under review.
Turnover from continuing operations increased by 3.3% to R244.2m and net profit
after taxation increased by 6.7% to R17.4m.
Earnings per share increased by 23.3% from 8.6 cents per share to 10.6 cents
per share. Headline earnings increased by 4.7% to 9.0 cents per share.
During the period the company repurchased 21.7m shares at a cost of R14.2m.
The group's balance sheet remains strong. Interest bearing debt of R7.8m arose
as a result of the acquisition of the fixed property occupied by the House &
Home division, at a cost of R8.0m.
Despite the fact that the group's working capital requirements peak at 31
December each year, cash balances remain substantial at R22.9m. During the
period, the group disbursed approximately R23m in respect of share repurchases
and dividends to shareholders.
The group remains focused on working capital management and cash generation.
These interim financial statements have been prepared in accordance with
Generally Accepted Accounting Practice. The accounting policies used in the
preparation of the interim financial statements are consistent with those used
in the annual financial statements for the year ended 30 June 2000.
DIVIDENDS
The group's policy is to declare a single dividend at the year end.
Accordingly, no interim dividend is proposed.
PROSPECTS
Brandcorp, with its sound management, strong balance sheet and core
competencies in brand management and distribution has laid a solid platform for
growth. The group continues to pursue opportunities that have high growth
potential, strong cash flows and sound management with proven track records.
On behalf of the board
M Z LEVINE C S DATNOW
NON EXECUTIVE CHAIRMAN CHIEF EXECUTIVE OFFICER
15 February 2001
Transfer Secretaries Secretary and Registered Office
Computershare Services Limited Light and Livingstone Financial Services CC
4th Floor Edura House 3rd Floor, Palm Grove
41 Fox Street 196 Louis Botha Avenue
Marshalltown, Johannesburg, 2107 Houghton Estate, 2198
Directors
CS Datnow, L Freidus*, A Gentin, JD Goldberg, MZ Levine*, JC Livingstone*, HB
Marcus, JW Miller*, BD Taurog
(*Non-executive Director)
