| Fri 16 Sep 2011, 8:00 | | DAW - Distribution And Warehousing Network Limited - Audited results for the |
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DAW
DAW
DAW - Distribution And Warehousing Network Limited - Audited results for the
year ended 30 June 2011 condensed consolidated income statement
DISTRIBUTION AND WAREHOUSING NETWORK LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1984/008265/06)
"DAWN" or "the Group" or "the Company")
Alpha code: DAW
ISIN: ZAE000018834
AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2011 CONDENSED CONSOLIDATED INCOME
STATEMENT
for the year ended 30 June
Audited Audited
% 2011 2010
change R`000 R`000
Revenue 4,8 3 792 631 3 618 391
Cost of sales (2 848 747) (2 713 656)
Gross profit 4,3 943 884 904 735
Net operating expenses (842 105) (705 584)
Operating profit before
impairments and derecognition
of investments (49) 101 779 199 151
Impairments of intangibles
and property, plant
and equipment (49 446) -
Net (loss)/gain on derecognition
of previously held interests (19 263) 8 717
Operating profit 33 070 207 868
Finance income 28 629 27 332
Finance expense (75 160) (83 843)
Profit after net financing costs (13 461) 151 357
Impairment of associates (625) -
Results of associates (81) 5 211
(Loss)/profit before income tax (14 167) 156 568
Income tax expense (14 689) (42 088)
(Loss)/profit for the year (28 856) 114 480
(Loss)/profit attributable to:
Owners of the parent (30 325) 109 177
Non-controlling interest 1 469 5 303
(Loss)/profit for the year (28 856) 114 480
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 June
Audited Audited
% 2011 2010
change R`000 R`000
(Loss)/profit for the year (28 856) 114 480
Other comprehensive income:
- Exchange differences on
translating foreign
operations (1 190) (14 221)
- Effects of cash flow hedges 1 563 (5 893)
- Taxation related to cash
flow hedges (306) 1 650
Net other comprehensive
income/(loss) 67 (18 464)
Total comprehensive (loss)/
income for the year (28 789) 96 016
Total comprehensive (loss)/
income attributable to:
Owners of the parent (30 077) 90 713
Non-controlling interest 1 288 5 303
(28 789) 96 016
Included above:
Depreciation and amortisation 68 330 59 296
Operating lease rentals 73 032 72 600
Determination of headline earnings
Attributable (loss)/earnings (30 325) 109 177
Adjustment for the after-tax effect of:
Net profit on disposal of property,
plant and equipment (720) (1 546)
Loss/(gain) on derecognition of
previously held interests 19 263 (8 717)
Impairment of intangible assets 48 714 -
Impairment of associate 625 -
Impairment of property, plant
and equipment 528 -
Headline earnings 38 085 98 914
Statistics
Number of ordinary shares (`000)
- in issue 240 243 240 243
- held in treasury (8 718) (7 847)
- Share Incentive Trust - (12 967)
Deferred ordinary shares
in issue (`000) 2 000 2 000
Weighted average number
of shares (`000)
- for earnings per share 233 681 202 235
- for diluted earnings per share 233 681 216 676*
(Loss)/earnings per share (cents) (124) (13,0) 54,0
Headline earnings per share (cents) (67) 16,3 48,9
Diluted earnings per share (cents) (126) (13,0) 50,3*
Diluted headline earnings
per share (cents) (64) 16,3 45,6
Operating profit (%) 0,9 5,7
*Dilutionary impact of shares to be issued in terms of the Share Incentive Trust
and Share Option Scheme.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 June
Audited Audited
2011 2010
R`000 R`000
ASSETS
Non-current assets 737 819 827 449
Property, plant and equipment 373 996 353 986
Intangible assets 218 099 271 253
Investment in associates 88 416 87 450
Deferred tax assets 57 308 77 934
Trade and other receivables - 36 826
Current assets 1 778 512 1 671 087
Inventories 852 424 746 636
Trade and other receivables 773 497 725 471
Cash and cash equivalents 150 903 198 980
Derivative financial instruments 165 -
Current tax receivable 1 523 -
Assets held for sale
Subsidiary held for sale 42 466 -
Total assets 2 558 797 2 498 536
EQUITY AND LIABILITIES
Capital and reserves 1 174 930 1 215 960
Equity attributable to equity
holders of the Company 1 173 669 1 197 163
Non-controlling interest 1 261 18 797
Non-current liabilities 116 802 398 886
Borrowings 40 862 268 585
Deferred profit 37 735 61 536
Deferred tax liabilities 25 236 62 239
Derivative financial instruments 6 990 6 526
Retirement benefit obligation 5 979 -
Current liabilities 1 267 065 883 690
Trade and other payables 766 601 646 389
Current portion of borrowings ** 476 186 215 712
Derivative financial instruments 464 67
Deferred profit 8 150 -
Income tax liabilities 15 664 21 522
Total equity and liabilities 2 558 797 2 498 536
Capital commitments 16 969 63 180
Capital expenditure incurred 94 271 63 518
Contingencies *** 29 244 51 265
Future commitments
Operating leases 459 351 419 292
Value per share
Asset value per share
- net asset value (cents) 488,5 512,1
- net tangible asset value (cents) 397,8 396,2
- market price (cents) 639,0 770,0
Market capitalisation (R`000) 1 535 152 1 849 870
Net financial gearing ratio (%)* 30,3 21,1
Current asset ratio (times) 1,4 1,9
* Includes cash and cash equivalents.
** Refer to financial results commentary.
*** The Group makes estimates and judgments concerning the future, particularly
with regards to provisions, arbitrations and claims and various fair value
accounting policies. The resulting accounting estimates and judgments can, by
definition, only approximate the actual results. Estimates and judgments are
continually evaluated and are based on historical experience and other factors,
including expectations of future events that are believed to be reasonable under
the circumstances.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 30 June
Audited Audited
2011 2010
R`000 R`000
Opening balance 1 215 960 839 700
Total comprehensive (loss)/income
for the year (28 789) 96 016
Incentive trust distribution - 8 995
Share-based payment charge 4 924 6 340
Foreign currency translation reserve
movements on derecognition of joint
ventures and subsidiaries 20 592 (10 627)
Treasury shares acquired (3 522) (4 605)
Non-controlling interest derecognised (18 469) (4 693)
Rights issue - 300 004
Share issue expense - (14 372)
Changes in ownership reserve as a
result of increase in investment
in subsidiary (15 411) (798)
Dividends (355) -
Balance at the end of the year 1 174 930 1 215 960
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 30 June
Audited Audited
2011 2010
R`000 R`000
Cash generated from operations 163 400 243 868
Working capital changes (18 562) (24 660)
Net finance charges paid (50 796) (62 308)
Income tax paid (37 688) (62 130)
Cash flow from operating activities 56 354 94 770
Cash flow from investing activities (92 326) 16 047
Cash flow from financing activities (38 456) 206 834
Total cash movement for the year (74 428) 317 651
Cash resources at beginning of year 39 902 (277 749)
Cash resources at end of year (34 526) 39 902
CONDENSED CONSOLIDATED SEGMENTAL ANALYSIS
for the year ended 30 June
Segment Share of
results profit of
(operating) asso-
Revenue profit ciates Assets
R`000 R`000 R`000 R`000
2011
Building 2 494 827 115 819 (358) 1 881 157
Infrastructure 1 315 544 (32 348) 277 770 613
DAWN Solutions 241 083 (10 547) - 322 181
Head office and
consolidation * (258 823) (39 854) - (415 154)
3 792 631 33 070 (81) 2 558 797
2010
Building 2 434 015 246 851 3 810 1 848 536
Infrastructure 1 213 701 (33 514) 1 401 659 352
Support Services 213 755 8 269 - 184 606
Head office and
consolidation * (243 080) (13 738) - (193 958)
3 618 391 207 868 5 211 2 498 536
Depre-
ciation
Capital and
expen- amorti-
Liabilities diture sation
R`000 R`000 R`000
2011
Building 1 241 896 56 069 32 690
Infrastructure 508 463 23 377 17 902
DAWN Solutions 335 186 13 915 15 826
Head office and
consolidation (701 678) 910 1 912
1 383 867 94 271 68 330
2010
Building 1 286 139 35 817 27 666
Infrastructure 431 662 13 208 17 018
Support Services 206 092 11 734 13 622
Head office and
consolidation (641 317) 2 759 990
1 282 576 63 518 59 296
Impair-
ments
and
dere-
cognitions
Income included in
tax operating
expense profit**
R`000 R`000
2011
Building 32 899 53 039
Infrastructure (14 765) (133)
DAWN Solutions 1 782 -
Head office and
consolidation (5 227) 15 803
14 689 68 709
2010
Building 59 421 (8 717)
Infrastructure (11 529) -
Support Services 378 -
Head office and
consolidation (6 182) -
42 088 (8 717)
* Head office and consolidation predominantly include elimination of intergroup
sales, profits and losses and intergroup receivables and payables and other
unallocated assets and liabilities contained with the vertically integrated
Group.
** Includes impairment of assets and derecognition of previously held interest -
refer to Income Statement.
COMMENTARY
INTRODUCTION
DAWN manufactures and distributes quality branded hardware, sanitaryware,
plumbing, kitchen, engineering and civil products through a national,
strategically positioned branch network in South Africa, as well as in selected
countries in the rest of Africa and Mauritius.
The Group has two operating segments, namely Building and Infrastructure,
supported by the Solutions segment.
The Building segment has five clusters - Wholesale Trading and Business
Development, Watertech, Sanitaryware, Kitchen and International (including AST)
and two associates - Apex Valves and Heunis Steel. The Infrastructure segment
consists of two businesses, DPI and Incledon, and two associates - Sangio Pipe
and Angolan-based Fibrex.
The Group`s focused cluster approach allows for the extraction of synergies,
including cost reduction, while capacity can be better rationalised.
The Group`s strategy is to optimise the mix of trading, brands and manufacturing
to maximise the economies of scale created as the largest, low-cost South
African building and infrastructure industry distributor. Even though the
Group`s operations have been right-sized to adapt to current activity levels and
certain excess commodity capacity has been mothballed, the Group has ensured
sufficient capacity to take up opportunities when they present themselves. There
is no plan to sell any of its businesses in total at this stage.
RESULTS OVERVIEW
Although activity in both the building and, more particularly, the
infrastructure markets improved somewhat in the second half, industry data
confirms that the Group experienced its toughest trading environment to date.
Building segment - 62% of Group revenue (before intergroup eliminations)
The Building sector experienced a further decline in activity levels in the 2011
financial year, with the total decline in buildings completed now 25% off the
peak levels achieved in the 2009 financial year. The current low level of
building activity has had a marked impact on the Building segment`s economies of
scale and, therefore, a negative impact on earnings.
Despite the 12% decline in buildings completed in the market during this
financial year, the Building cluster`s organic revenue did not decline. It
delivered a six percentage point average market share gain across the brands in
this segment, although of a much smaller pie and at lower margins than the 2010
financial year. The market trend towards more affordable products exacerbated
the lower margins prevalent in the market due to an extremely competitive
environment. The market share gain was achieved due to the Group`s just-in-time
business model which provides a particularly strong competitive advantage as
clients had to continue keeping lower stockholdings in tough markets.
However, operating profit decreased by 32% from R247 million to R169 million and
operating margins declined from 10,5% to 6,8%, excluding the impact of
impairments and non-operational once-off costs. See financial review for more
information.
The decrease in operating profit and operating margin were due to a number of
factors. Firstly, the Group had to absorb the effect of two salary increases
during the year following an 18-month delay in increases leading up to the first
half of F2011.
Furthermore, profit was impacted by lower volumes and the reduction in
efficiencies, changing customer buying patterns which placed inventory models
under pressure as well as certain time-crucial expansion initiatives, such as
the development of new Vaal products and efficiency-enhancing investments at
Cobra and Vaal.
Infrastructure segment - 32% of Group revenue (before intergroup eliminations)
The backlog of water and sanitation infrastructure needs in South Africa and
Africa is urgent and critical and remains DAWN`s motivation for being in the
infrastructure sector. Historically government infrastructure expenditure
stimulated economies, thereby making infrastructure counter-cyclical to
building. However, infrastructure businesses have been impacted not only by the
consequences of the global financial crisis and the 2010 World Cup projects
draining local government budgets, but also government and its related parties`
inability to spend effectively on infrastructure needs.
The infrastructure market therefore continued to experience lower volumes, with
the value of civil contract awards down 15% in the 2011 financial year, which is
38% lower than the highs achieved in F2009. However, there has been an
improvement in the awarding of civil contracts during the second half of the
2011 financial year.
Revenue showed a pleasing increase of 8%, turning around from a 2% decline in
the first half to a 19% increase in the second half of F2011. Although a full-
year operating loss of R32 million (2010: R34 million operating loss) was
recorded, the loss reduced substantially in the second half of the year from R25
million to R4 million, excluding impairments. Market share increased from 30% to
35%, largely attributable to the new sales structure, successful cost
eradication programmes and some pick-up in volumes due to fewer competitors.
DPI Plastics managed to reduce its loss by 21% for the full year, assisted by
extra volume throughput and a strategic decision to increase prices following
quality improvements during the last quarter, thereby entrenching the
differentiation of the product in the market. However, volumes in the high-
margin buildings fittings business decreased in line with the contraction in the
building market and DPI`s factory in Roodekop struggled to gain momentum due to
electricity cuts which continued to constrain productivity. DPI`s factory
generators could only assist with smooth shutdowns, but were unable to run
production to the level of power required. This business saw 28 electricity cuts
during the year, 12 of which occurred in June 2011.
Against these challenges and with delays in implementing a corrective market
strategy in DPI, the business achieved R16 million in cost reductions, through
focusing on improving the efficiency of raw material consumption, reducing
headcount and reducing transport costs.
Incledon saw a 47% decline in operating profit for the year off a low base of R8
million to R4 million for the 2011 financial year.
DAWN Solutions - 6% of Group revenue (before intergroup eliminations)
Against the impact of higher fuel and electricity costs, DAWN Logistics
(comprising DAWN Cargo and DAWN Distribution Centre), continued to provide a
crucial competitive advantage to the overall Group, enabling distribution costs
at much lower rates than the logistics industry average.
DAWN Solutions experienced inflationary pressures in its predominantly fixed
expense base and incurred a loss of R10,5 million (2010: R8,3 million profit).
Maintaining the correct level of capacity to service the medium- to long-term
growth requirements of the DAWN Group is extremely important, but negatively
impacted earnings in the short term.
DAWN International
DAWN International`s contribution is included in the Building and Infrastructure
results. However, to provide additional disclosure, the revenue of this cluster
is discussed separately.
DAWN International contributed 18% to Group revenue (on a gross level including
100% of joint ventures` and associates` revenue in these regions), spread over
Infrastructure (44%) and Building (56%). Exports from South Africa increased
revenue by 5% to R559 million. Results were curbed by the global recession and
the strong Rand. AST`s operations in Africa increased revenue by 21% to R118
million (after accounting for currency conversion losses) and DPI`s operations
in Africa increased revenue by 13% to R300 million. Challenges to the
international operations included slower infrastructure spend, availability of
foreign currency (mainly US$), the postponement of major contracts and increased
competition. Opportunities in Africa, however, remain attractive due to the vast
infrastructure needs in various countries on the continent. The Group is
continuing its concerted thrust into these markets.
FINANCIAL RESULTS
As outlined above, the downturn in the economy had a material impact on DAWN`s
results. Revenue increased by 4,8% to R3,8 billion (2010: R3,6 billion), with
organic growth amounting to 2,5% despite a volume decrease of 1%. Operating
profit, before the impact of impairments and once-off non-operational write-
offs, decreased by 49% to R102 million (2010: R199 million) Operating expenses
increased by 19% since F2010 mainly as a result of abnormal cost increases such
as electricity (up 43%), catch-up salary increases (up 17%), after no increases
were awarded for the preceding 18 months, as well as R19 million of once-off
costs relating to foreign exchange losses, retrenchment costs and relocation
costs. Operating expenses also increased as a result of investment in new
capacity which management considered to be time crucial. This related to the
development of new products, streamlining efficiencies at Vaal and Cobra
factories as well as new capability investments at DPI, which is expected to
deliver benefits in the future. A substantial portion of the revenue of the
Group is eliminated on consolidation. The Group eliminated a total of R952
million (2010: R908 million) of intergroup revenue.
Earnings per share was a loss of 13,0 cents compared to a profit of 54,0 cents a
year ago. Headline earnings per share of 16,3 cents declined by 66% from 48,9
cents. Headline earnings per share has been adjusted, mainly for an impairment
of goodwill of R48 million, compromising Vaal Sanitaryware (R27 million), the
Acrylic division (Libra Bathrooms and Plexicor) (R19 million) and AST Angola (R2
million), as well as a R16 million loss principally attributable to the
derecognition of accumulated translation losses related to AST since 2007 as a
result of the change in shareholding in AST.
The Group operating margin reduced to 2,7% (before impairment and once-off
adjustments) (2010: 5,5%), mainly due to a further deterioration in the building
market as confirmed by the buildings completed data, where market volumes
decreased by a further 12% during the year. As outlined above, although the
Infrastructure segment improved its performance, it is still in a loss position.
The Building segment operating margin was 6,8% and the Infrastructure margin was
a loss of 2,2%, before the impact of once-off adjustments.
Working capital management continued to be a focus area during a challenging
cycle. Bad debts increased slightly, but remained below 0,1% of revenue. The
volatile demand patterns placed increased pressure on inventory management,
resulting in an expansion in investment in inventory to R852 million (2010: R746
million). This was countered by an elevated focus on creditor management with
the level of funding increased to cover the higher inventory levels. The strong
focus on working capital management prevented further growth in net investment
in working capital.
Cash generated from operations, before working capital, remained a focus area
and amounted to R163 million (2010: R244 million). Investing activities
incorporates the investment into new capacity necessary for future growth as
well as much needed efficiencies in the short term. This resulted in capital
expenditure of R45 million, with a further R49 million being spent on
maintaining the Group`s current required property plant and equipment. Cash
outflows from financing activities related mainly to the R31 million paid for
the purchase of the remaining 6% equity in Cobra Watertech (Pty) Limited.
Interest cost cover (excluding impairments and once-off costs) is 2,2 times
(2010: 4,0 times) and the debt service (including total capital and interest
repayments) covered by free cash flow generated by the Group is 0,5 times (2010:
1,4 times). This reflects the tough economic environment the Group operates in
and is a major focus area for improvement. The Group`s funding agreement with
The Standard Bank of South Africa Limited and FirstRand Bank Limited ("lenders")
specifies that certain liquidity ratios needed to have been complied with as at
30 June 2011. Not all ratios were met and this placed the Group in breach of the
requirements stipulated in the funding agreement. Accordingly, the Group
discloses the related non-current borrowings of R194 million as current
liabilities at 30 June 2011 in the Statement of Financial Position. It is
important to note that, subsequent to year-end, the lenders, having reserved
their rights in terms of the aforementioned breach, are engaged in negotiations
with the Group with a view to restructure the term debt on terms more
appropriate to the economic cycle the Group currently operates in. The Group has
a total of R550 million borrowing facilities with lenders with R314 million
utilised at 30 June 2011.
ACQUISITIONS
On 1 July 2010, DAWN acquired the remaining 24% equity from non-controlling
shareholders in Wholesale Housing Supplies (East London) Proprietary Limited for
a consideration of R1,9 million. Its assets were transferred to Wholesale
Housing Supplies Proprietary Limited. In addition, a non-controlling interest of
49% of the shares in Apex Valves South Africa Proprietary Limited was acquired
with effect from 1 February 2011 for a purchase consideration of R4,2 million.
Apex Valves` main business is the assembling of valves for domestic hot water
systems.
BUSINESS COMBINATIONS
Acquisition of AST as a disposal group - subsidiary held for sale
The Group increased its shareholding in AST by acquiring the remaining 49%
shareholding from the co-joint venture party for a cash consideration of R24,25
million on 30 June 2011. AST was previously proportionately consolidated and the
transfer of control has resulted in the acquisition of a wholly-owned subsidiary
at the end of the reporting period. A loss of R15,8 million was accounted for on
the derecognition of the previously held interest, including recycling of
accumulated foreign currency translation losses through profit/loss. Subsequent
to year-end, the Group sold 49% of its interest in AST to a new joint venture
partner for R24,5 million. Therefore, the consolidated identifiable assets and
liabilities (including goodwill) in AST has been reported as a wholly-owned
subsidiary acquired with a view to disposal.
The investment in AST as a single asset, valued at fair value less cost to sell,
amounts to R42,5 million and has been presented as an asset held for sale in the
Statement of Financial Position. As allowed by IFRS 5, the full fair value
exercise has not been performed by the end of the reporting period.
DPI Fike Mining Supplies
On 1 July 2010 the Group purchased an additional 44% of the shares of DPI Fike
Mining Supplies Proprietary Limited, a supplier of pipes and pipe fittings to
mainly the mining industry in the North West. The business was integrated with
Incledon from the date of acquisition to further enhance synergies and cost-
savings. The remaining 44% shareholding was acquired for a purchase
consideration of R3,0 million. The fair value of these assets and liabilities
amounted to R2,6 million (including intangibles identified) and resulted in
goodwill of R0,4 million being recognised at acquisition date.
Electroline
On 31 December 2010, the Group acquired an additional 41% of the shares of
Electroline Proprietary Limited, (previously Castle King Investments 1012), a
pre-packaging and assembling of electrical components business, for a purchase
consideration of R0,24 million and assumed non-controlling interest of R0,14
million.
The fair value of the assets and liabilities amounted to R0,3 million. This
includes R1,5 million of intangible assets being identified on acquisition.
BASIS OF PREPARATION
These audited results are a summary of the consolidated financial statements and
are prepared in accordance with the recognition and measurement criteria of
International Financial Reporting Standards (IFRS), the presentation and
disclosure requirements of IAS 34 Interim Financial Reporting, the AC 500
Standards as issued by the Accounting Practices Board or its successor, the
Listings Requirements of the JSE Limited and the requirements of the South
African Companies Act on a basis consistent with the prior year. The financial
statements have been prepared by Mr JAI Ferreira, Financial Director and were
approved by the Board on 13 September 2011.
The accounting policies are consistent with those applied in the annual
financial statements for the year ended 30 June 2010.
These results have been audited by the Group`s auditors, PricewaterhouseCoopers
Inc, and their unmodified audit opinion is available for inspection at the
Company`s registered offices.
PROSPECTS
Although there are some positive signs of growth starting to resume in the
building and infrastructure markets, DAWN expects this growth to be both
protracted and erratic.
The year ahead will see an intensified focus on returns with direct intervention
by Group executives in working capital management, forecasting and monitoring of
individual companies. The challenge remains to align stockholding with volatile
demand patterns. The Group`s stock systems are being further improved through
the enhancement of customer sales history analysis to strengthen stock
availability. The Group`s just-in-time stock availability offering to merchants
will remain a key focus area to maximise its logistics advantage.
Capital allocation will be monitored continually and it is considered paramount
that cash is generated from improvements in working capital as well as
profitability across the board, with specific focus on loss-making businesses.
Improved volumes will be a necessity to assist factory recoveries.
Benefits should flow through from the development of new products at all
manufacturing entities, with aesthetics and `green` product development enjoying
particular focus. Although these initiatives will ensure increased growth, it
is uncertain over what timeframe due to the current unpredictability of the
markets.
This general forecast has not been reviewed nor audited by the Company`s
auditors.
BOARD CHANGES
As discussed in the interim results, Mr Lou Alberts retired as Chairman of the
DAWN Board on 30 June 2011 and will remain as an independent non-executive
director on the Board. Mr Tak Hiemstra, an executive director of Imperial
Holdings Limited, was appointed as independent non-executive Chairman of the
Board on 1 July 2011.
Mr Hiemstra has been a valuable Board member for a number of years and the Group
welcomes him in his new role. The Board also wishes to thank Mr Alberts for his
valuable contributions over the years and look forward to continue working with
him as a Board member.
Mr Veli Mokoena did not make himself available for re-election at the annual
general meeting held on 14 January 2011. He has however remained involved in the
Group, particularly on transformation and ethics matters, and was re-appointed
to the Board on 22 June 2011 as an independent non-executive director. Veli is
also currently a non-executive director of Eqstra Holdings Limited and the
founder and chairman of Ninathi Investment Holdings (Pty) Limited. He brings
with him an extensive business network.
Mr Mohammed Akoojee, an Executive Committee member of Imperial Holdings Limited,
was appointed to the Board as a non-executive director on 23 June 2011 as an
Ukhamba Holdings (Pty) Limited representative. Mohammed gained experience from
his background in financial services and will bring valuable additional skills
to the DAWN Board.
The directors look forward to their contribution to the Group`s Board.
EVENTS AFTER THE REPORTING PERIOD
Subsequent to the end of the reporting period, the Group has entered into
negotiations with its lenders to restructure the term debt on terms more
appropriate to the economic cycle in which the Group currently operates.
Furthermore, on 8 July 2011 DAWN disposed of its 49% stake in AST to Kwikot, for
a purchase consideration of R24,5 million (subject to certain guarantees and
warranties) which was settled in cash.
DIVIDEND
The Board considers it prudent to conserve cash until the market recovers and
therefore does not propose a dividend in respect of the 2011 financial year.
On behalf of the Board
RL Hiemstra DA Tod Johannesburg
Chairman Chief Executive Officer 16 September 2011
The presentation to investors is available on the DAWN website.
www.dawnltd.co.za
E-mail: info@dawnltd.co.za
Registered office: Cnr Barlow Road and Cavaleros Drive, Jupiter Ext 3,
Germiston, 1401
Directors: RL Hiemstra (Chairman), DA Tod (Chief Executive Officer), LM Alberts,
M Akoojee*, OS Arbee*, JA Beukes, JAI Ferreira, VJ Mokoena,
S Mthembi-Mahanyele, RD Roos
* Non-executive
Independent non-executive
Company secretary: JA Beukes
Transfer secretaries: Computershare Investor Services Proprietary Limited, 70
Marshall Street, Marshalltown, 2001 (PO Box 61051, Marshalltown, 2107)
Sponsor: Deloitte & Touche Sponsor Services (Pty) Limited
Date: 16/09/2011 08:00:01 Produced by the JSE SENS Department.
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