| Thu 30 Jun 2011, 17:30 | | AHL - Ah-Vest Limited - Audited consolidated condensed results for the year |
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AHL
AHL
AHL - Ah-Vest Limited - Audited consolidated condensed results for the year
ended 31 March 2011
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 CONDENSED RESULTS FOR THE YEAR ENDED 31 MARCH 2011
Condensed statement of financial position
Year Year
ended ended
31 March 2011 31 March 2010
R R
Assets
Non-current Assets 15 704 204 13 110 636
Property, Plant & Equipment 14 143 998 11 550 430
Deferred tax 450 000 450 000
Intangible asset 1 110 206 1 110 206
Current Assets 28 435 725 31 048 039
Inventories 10 267 639 12 160 883
Loans to fellow subsidiary - 2 500 248
Advances paid to employees 28 715 -
Trade & other receivables 12 366 198 11 708 017
Cash & cash equivalents 5 773 173 4 678 891
Total Assets 44 139 929 44 158 675
Equity and Liabilities
Capital and Reserves 15 439 874 17 888 021
Share capital 21 293 071 21 293 071
Revaluation Reserves 4 688 610 4 688 610
Accumulated loss (10 541 807) (8 093 660)
Non current liabilities 11 845 571 160 948
Finance lease obligation 442 484 40 906
Other financial liabilities 11 305 986
Operating lease liability 97 101 120 042
Current liabilities 16 854 484 26 109 706
Other financial liabilities 1 169 470 14 353 321
Finance lease obligation 286 266 41 390
Trade and other payables 15 398 748 11 714 995
Total Equity and Liabilities 44 139 929 44 158 675
Net asset value per share (cents) 15.14 17.54
Tangible net asset value per share (cents) 14.05 16.01
Share in issue at year end (`000) 101 973 333 101 973 333
Condensed statement of comprehensive income
Year Year
ended ended
31 March 2011 31 March 2010
R R
Revenue 88 284 479 77 545 096
Cost of Sales (55 741 723) (50 778 111)
Gross profit 32 542 756 26 766 985
Other income 134 026 1 283 354
Operating expenses (34 264 594) (26 156 196)
Operating profit before finance costs (1 587 812) 1 894 143
Investment revenue 474 423 351 708
Finance costs (1 334 760) (1 549 983)
Profit/(Loss) before tax (2 448 149) 695 868
Taxation - 450 000
Profit/(Loss) for the period (2 448 149) 1 145 868
Attributed to:
Equity holders of the company (2 448 149) 1 145 868
Minority interest - -
Headline Profit/(loss) calculation:
Profit/(Loss) attributed to equity holders (2 448 149) 1 145 868
of the company
Adjusted for:
Profit on sale of plant - (19 414)
Impairment of assets - 74 074
Headline earnings/(loss) (2 448 149) 1 200 528
Weighted average shares in issue 101 973 333 101 973 333
Diluted weighted average shares in issue 101 973 333 101 973 333
(Loss)/Earnings per share (cents)
(Loss)/Earnings per share (2.40) 1.12
Diluted (loss)/earnings per share (2.40) 1.12
Headline (loss)/earnings per share (2.40) 1.18
Diluted Headline (loss)/earnings per share (2.40) 1.18
Adjusted headline earnings per share (2.40) 1.18
Statement of changes in equity
Share Share premium Total share
Capital capital
R R R
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 01 April 2010 1 019 734 20 273 337 21 293 071
Changes in equity
Total comprehensive loss for - - -
the year
Total changes - - -
Balance at 31 March 2011 1 019 734 20 273 337 21 293 071
Revaluation Accumulated Total Equity
reserve Loss
R R R
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 01 April 2010 4 688 610 (8 093 658) 17 888 023
Changes in equity
Total comprehensive loss for - (2 448 149) (2 448 149)
the year
Total changes - (2 448 149) (2 448 149)
Balance at 31 March 2011 4 688 610 (10 541 807) 15 439 874
Condensed statement of cash flows
12 months 12 months
ended ended
31 March 31 March
2011 2010
R R
Cash flows from operating activities
Cash generated from operation 7 641 959 4 531 165
Interest income 474 423 344 266
Finance costs (1 334 760) (1 542 541)
Net cash from operating activities 6 781 622 3 332 890
Cash flows from investing activities
Purchases of property, plant and equipment (3 025 300) (253 919)
Proceeds on sale of property, plant and - 34 935
equipment
Loans advance to employees (28 715)
Loans advanced to group companies - (328 688)
Interest capitalised to fellow subsidiary (454 636) -
loan
Net cash from investing activities (3 508 651) (547 672)
Cash flows from financing activities
Repayment of other financial liabilities (1 877 865) (84 852)
Finance lease payments (300 824) (74 790)
Net cash from financing activities (2 178 689) (159 642)
Total cash movement for the year 1 094 282 2 625 576
Cash at the beginning of the year 4 678 891 2 053 315
Total cash at end of the year 5 773 173 4 678 891
COMMENTARY
The board presents the audited results for the year ended 31 March 2011.
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 old 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 opinion on this set of condensed financial information is
available for inspection at the company`s registered office.
RESULTS
Sales revenue increased by R10 708 000 representing a 13% increase when
compared to the prior period. Volumes increased in the period under review by
21%, this was in line with the strategy to change the packaging used for tomato
sauce from glass to plastic which allowed the savings to be passed on to the
customer. Tomato sauce volumes increased by more than 25% in this period.
The planned investments to increase capacity on the tomato sauce line by 40%
and adjustments to fill in plastic bottles were only achieved late in the year
under review. This delay on the planned increase in production capacity and
decision to temporally increase product costs to protect shelf space contributed
to increased expenses from October to January 2011. In addition, the Company
could not deliver all the orders placed on the factory in time during the
festive period of November/December 2010.
This has however been corrected and 40% more volumes on tomato sauce are
being produced without incurring additional production costs.
The planned investment to increase product on the veri peri line by 60% and
automate the filling is also fully operational.
Expenses consisting of raw material, fuel costs, electricity, staff
wages and co-operative advertising increased by 23% in order to defend
shelf space.
Gross Profit improved by 3% which is attributed to the improved controls on
planned costs and the increase in sales of added value range of products.
Production expansion costs for the year under review were funded from cash
from operations. Finished stock holdings were reduced by increasing production
capacity on tomato sauce and veri peri.
A new agreement with Landbank has been entered into converting our "draw down"
overdraft facility to a loan repayable over seven years which commenced in
October 2010. More than the required monthly repayments have been made in
order to reduce costs of borrowing.
Operating profits of the company have improved significantly and gross margins
are in-line with the industry sector.
Once off expenditure, which included a further write off of bad debit of R834K
and legal expenses (dealing with matters arising from prior years) of R734K
diluted net profit.
The results have however been negatively impacted by a once-off provision of
approximately R2 million against loans receivable. Whilst the provision has
been raised, the directors will continue to pursue the recoverability of this
loan.
SEGMENTAL ANALYSIS
No segmental analysis has been presented as the company operates primarily
within South Africa. The Group will adopt the IFRS 8: Operating Segments
standard for the first time in the 2011 financial statements.
Customer Analysis
Customer A 42% of Revenue
Customer B 27% of Revenue
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
Buhle Mthethwa was appointed as an Independent Non-Executive Director of
the company on 1 November 2010. No other changes to the board were made
during the year under review.
DIVIDENDS
No dividends were declared during the period. (2010: Nil).
PROPOSED DELISTING
Ongoing discussions regarding the potential delisting of the Company, as
announced on SENS on 31 December 2010, which noted that a proposed offer
to minorities be made by AH-Vest by way of a repurchase of shares continue.
FUTURE PROSPECTS
The following new products have been launched into the market late in the
year under review:
* 250ml Penny Saver range of sauces;
* Single servings of Veri Peri; and
* Buy `n Braai 50g sachets.
A new range of flavoured tomato paste single serving sachets is planned to be
launched in July 2011.
Additional production capacity required for the sales demand is in place and
producing.
A budget to promote the brands to the target markets has been established
and a cooking show has been produced to allow customers the opportunity to
learn how to prepare meals with AH-Vest`s products.
The focus for the coming year will be on effective brand communication and to
promote trial purchases using single serve sachets and thereby making added
value sauces more accessible to the emerging market.
SUBSEQUENT EVENTS
There were no subsequent events that require disclosure at the date of this
announcement.
Johannesburg
30 June 2011
Directors:
Executive Directors: MT Pather (CEO); M Hill (FD);
Non-Executive Directors: P Mariemuthu (Chairman); MD Mawere; B Mthethwa; R
Manning; A Gonsalves
Registered address
Arcay House, No. 3 Anerley Road, Parktown 2193
Designated Advisors Transfer secretaries
Arcay Moela Sponsors Computershare Investor Services (Pty) Ltd
(Proprietary) Limited
Auditors Company Secretary
PKF (Pta) Inc. Arcay Client Support (Proprietary) Limited
Date: 30/06/2011 17:30:01 Produced by the JSE SENS Department.
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