| Tue 30 Aug 2011, 17:49 | | KDV - KayDav Group Limited - Unaudited Interim Results for the six months ended |
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KDV
KDV
KDV - KayDav Group Limited - Unaudited Interim Results for the six months ended
30 June 2011
KayDav Group Limited
Incorporated in the Republic of South Africa
Registration number 2006/038698/06
JSE code: KDV
ISIN: ZAE000108940
UNAUDITED INTERIM RESULTS
for the six months ended 30 June 2011
Headline earnings per share 3.2 cents (up 100%)
Earnings from continuing operations R5.8 million (up 4%)
Consolidated statement of comprehensive income
Unaudited Unaudited Audited
six months six months year
ended ended ended
30 June 30 June 31 December
2011 2010 2010
R R R
Continuing operations
Revenue 221 401 673 214 352 457 460 837 937
Cost of sales (152 806 566) (149 121 362) (328 430 134)
Gross profit 68 595 107 65 231 095 132 407 803
Other income 208 389 454 423 1 227 431
Operating expenses (59 529 988) (56 674 526) (116 709 971)
Operating profit 9 273 508 9 010 992 16 925 263
Investment income 109 748 212 682 465 486
Finance costs (1 331 571) (1 535 122) (2 737 521)
Profit before taxation 8 051 685 7 688 552 14 653 228
Taxation (2 247 196) (2 100 727) (20 470)
Profit for the period 5 804 489 5 587 825 14 632 758
Other comprehensive income - - -
Total comprehensive income
attributable to equity
holders of the parent from
continuing operations 5 804 489 5 587 825 14 632 758
Discontinued operation
Loss for the period from
discontinued operation
before loss on disposal - (2 149 350) (6 921 631)
Loss on disposal of
discontinued operation - - (1 125 326)
Loss for the period - (2 149 350) (8 046 957)
Other comprehensive income - - -
Total comprehensive loss
attributable to equity
holders of the parent from
discontinued operation - (2 149 350) (8 046 957)
Total comprehensive income
attributable to equity
holders of the parent from
continuing and
discontinued operations 5 804 489 3 438 475 6 585 801
Reconciliation between earnings
and headline earnings
Total comprehensive income 5 804 489 3 438 475 6 585 801
Profit on disposal of plant
and equipment (19 869) (2 089) (4 186)
Taxation effect of disposal
of plant and equipment 5 563 585 1 172
Loss on sale of business - - 1 125 326
Headline earnings attributable
to equity holders 5 790 183 3 436 971 7 708 113
Weighted average number of
shares in issue 183 566 511 213 504 505 198 961 975
Basic and diluted earnings
per share (cents) 3.2 1.6 3.3
Headline earnings per share (cents) 3.2 1.6 3.9
Consolidated statement of financial position
Unaudited Unaudited Audited
30 June 30 June 31 December
2011 2010 2010
R R R
ASSETS
Non-current assets 51 636 500 51 643 882 51 525 170
Plant and equipment 30 964 026 34 793 222 31 349 411
Goodwill 14 302 804 14 302 804 14 302 804
Deferred taxation 6 369 670 2 547 856 5 872 955
Current assets 158 274 153 162 073 079 151 879 798
Inventories 65 148 524 68 490 264 61 237 708
Trade and other receivables 75 068 012 82 366 693 66 122 323
Cash and cash equivalents 16 060 542 9 531 600 22 747 360
Taxation 1 997 075 1 684 522 1 772 407
Total assets 209 910 653 213 716 961 203 404 968
EQUITY AND LIABILITES
Capital and reserves 111 160 871 112 837 302 115 650 549
Share capital 184 184 184
Share premium 184 556 185 195 184 431 194 850 351
Accumulated loss (73 395 498) (82 347 313) (79 199 986)
Non-current liabilities 13 257 950 18 011 536 15 605 553
Instalment sale liabilities 3 474 920 5 122 402 4 248 936
Interest-bearing liability 9 783 030 12 828 607 11 242 494
Deferred taxation - 60 527 114 123
Current liabilities 85 491 832 82 868 123 72 148 866
Trade and other payables 58 615 158 54 388 910 56 057 241
Short-term portion of instalment
sale liabilities 3 487 803 2 790 474 3 215 677
Short-term portion of
interest-bearing liability 2 841 891 2 499 867 2 707 832
Bank overdraft 16 585 060 19 012 096 8 034 017
Provisions 3 961 920 4 176 776 2 134 099
Total equity and liabilites 209 910 653 213 716 961 203 404 968
Shares in issue at period end 183 087 373 184 586 273 183 637 373
Net asset value per share (cents) 60.7 61.1 63.0
Tangible net asset value per
share (cents) 52.9 53.4 55.2
Condensed statement of changes in equity
Unaudited Unaudited Audited
six months six months year
ended ended ended
30 June 30 June 31 December
2011 2010 2010
R R R
Balance at the beginning of the
period 115 650 549 125 842 799 125 842 799
Distribution to shareholders (10 100 061) - -
Share repurchases (194 106) (16 443 972) (16 778 051)
Total comprehensive income for
the period 5 804 489 3 438 475 6 585 801
Balance at the end of the period 111 160 871 112 837 302 115 650 549
Condensed consolidated statement of cash flows
Unaudited Unaudited Audited
six months six months year
ended ended ended
30 June 30 June 31 December
2011 2010 2010
R R R
Cash flows from operating
activities (1 386 211) (8 011 374) 11 750 263
Cash flows from investing
activities (1 730 191) (1 496 652) 5 096 041
Cash flows from financing
activities (12 121 459) (1 773 908) (3 934 399)
Net (decrease)/increase in cash
and cash equivalents (15 237 861) (11 281 934) 12 911 905
Net cash and cash equivalents at
the beginning of the period 14 713 343 1 801 438 1 801 438
Net cash and cash equivalents at
the end of the period (524 518) (9 480 496) 14 713 343
Segmental analysis
Unaudited Unaudited Audited
six months six months year
ended ended ended
30 June 30 June 31 December
2011 2010 2010
R R R
Segmental revenue
Board distribution 215 347 802 208 269 898 449 403 208
Manufacturing 17 067 421 30 648 152 62 870 866
Internal revenue (11 013 550) (8 745 907) (21 622 472)
Net revenue 221 401 673 230 172 143 490 651 602
Discontinued operation -
manufacturing - (15 819 686) (29 813 665)
Revenue from continuing
operations 221 401 673 214 352 457 460 837 937
Segmental results
Board distribution 8 082 537 9 243 774 16 660 984
Manufacturing 12 819 (3 223 872) (8 394 199)
Other 1 178 152 853 875 1 758 273
Operating profit before interest 9 273 508 6 873 777 10 025 058
Discontinued operation -
manufacturing - 2 137 215 6 90 0 205
Loss for the period from
discontinued operation - 2 149 350 6 921 631
Net finance charges from
discontinued operation - (12 135) (21 426)
Operating profit before
interest from continuing
operations 9 273 508 9 010 992 16 925 263
Commentary
Introduction
KayDav Group Limited ("KayDav" or "the Group") specialises in the distribution
and adding of value to wood-based panels, which are products manufactured
through the compression of wood waste into a solid panel. Wood-based panels are
used for a variety of purposes in the construction, furniture manufacturing and
shop fitting industries.
Financial results
Revenue from continuing operations for the first six months of the 2011
financial year was 3.3% higher compared to the same period in 2010. The board
distribution segment experienced revenue growth of 3.4%. Excluding the operation
discontinued during the 2010 financial year, the manufacturing segment
experienced revenue growth of 15% (including internal revenue).
The board distribution segment contributed R8.1 million to operating profit
compared to R9.2 million for the first six months of 2010. The manufacturing
segment contributed R0.01 million to operating profit compared with a loss of
R3.2 million for the previous corresponding period.
Total comprehensive income increased by 69% to R5.8 million from the R3.4
million recorded for the previous corresponding period, while total
comprehensive income from continuing operations increased by 4% to R5.8 million.
During the reporting period KayDav repurchased 550 000 of its own shares at a
cost of 35 cents per share, resulting in 183 087 373 KayDav shares in issue at
30 June 2011.
Save for structural changes in our industry, for example industry wide gross
margin changes, the second half of the financial year normally generates the
greater contribution to annual operating profit.
Basic and diluted earnings per share as well as headline earnings per share of
3.2 cents are 100% higher than the 1.6 cents per share for the previous
corresponding period.
These results are considered satisfactory having regard to the tough trading
conditions in the industry.
Prospects
Activity levels in our industry are determined by consumer demand which is
impacted by consumers` personal debt levels, employment and willingness of
financial institutions to extend credit.
Management anticipates that the increase in lending by financial institutions as
well as increased spending power of consumers will increase activity levels in
our industry. Whilst this improvement is anticipated, the potential negative
macro-economic effect of recent global events and the direction of future
interest rate movements on our industry make the timing of any improvement
uncertain.
Management is focusing on increasing market share and effective cost and working
capital control.
Distributions to shareholders
A distribution to shareholders by way of a reduction of share premium of 5.5
cents per share was made on 30 May 2011.
Subsequent events
No material change has taken place in the affairs of the Group between the end
of the financial period and the date of this report, that requires adjustment or
disclosure.
Basis of preparation
The interim financial statements have been prepared in accordance with
International Financial Reporting Standards, AC 500 standards, the requirements
of IAS 34 (Interim Financial Reporting) and in compliance with the JSE Listings
Requirements and the Companies Act, 2008 of South Africa.
The accounting policies applied in preparing these interim financial statements
are consistent with those presented in the annual financial statements for the
year ended 31 December 2010 and have not been audited or reviewed by the KayDav
auditors.
Appreciation
The board extends its appreciation to our management and staff for their efforts
during this reporting period. We also thank our customers and suppliers for
their continued support.
On behalf of the board
I H Stern G F Davidson
Chairman Chief Executive Officer
Cape Town
26 August 2011
Corporate information
Executive directors: GF Davidson (CEO), M Slier (CFO)
Non-executive directors: IH Stern (Chairman), J Hertz
Registration number: 2006/038698/06
Registered address: 105 Bamboesvlei Road, Ottery, 7800
Postal address: PO Box 272, Ottery, 7808
Telephone: 021 704 7060 Facsimile: 086 519 2014
Company secretary: Probity Business Services (Pty) Limited
Transfer secretaries: Link Market Services South Africa (Pty) Limited
Sponsor: Java Capital
30 August 2011
Date: 30/08/2011 17:49:54 Produced by the JSE SENS Department.
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