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WTL
WTL
WTL - William Tell - Audited Results for the 12 Months ended 30 June 2011
WILLIAM TELL HOLDINGS LIMITED
(Registration number 2004/030045/06)
Share code: WTL
ISIN: ZAE000098133
("William Tell" or "the Company" or "the Group")
AUDITED RESULTS FOR THE 12 MONTHS ENDED 30 JUNE 2011
COMMENTARY
HIGHLIGHTS
- 30% revenue growth
- 4 distribution centres opened
- Received R22.6m from government grants
- Settled R17.7m debt
OVERVIEW OF THE BUSINESS
William Tell is a mass producer of wood-based panels. The Group is vertically
integrated with all manufacturing operations consolidated on one site in the
industrial area of Chamdor in Krugersdorp. Activities range from production of
chipboard from wood waste, application of melamine and other decorative surfaces
to production of furniture elements and ready to assemble furniture. The
integration strategy was expanded through the establishment of seven regional
sales outlets between April 2010 and June 2011 covering the major centres in 6
provinces.
12 MONTH OPERATIONAL REVIEW
Despite tough trading conditions, we increased market penetration through our
new distribution centres and grew revenue by 30%. Gross margins also improved
marginally and would have been better had it not been for a breakdown of the
chipper in the last month of the year. This disrupted production in the last
quarter including non-recurring expenditure of R2.1m.
Administrative, sales and marketing expenses increased in line with the
increased activity through the distribution centres. We also incurred non-
recurring expenditure of R1.8m spent as a result of the resignation of the
former MD and termination of the employment of the former CEO and R1.4m on the
establishment of the distribution centres.
The poor economic conditions had an effect on our customers` ability to pay and
it has been necessary to increase the provision for doubtful debts by a further
R3.4m. Management has exercised tight controls over debtors collections.
During this year we received R22.6m from the DTI, as well as R8m proceeds from
assets held for sale as at 30 June 2010.
PROSPECTS
We are not expecting a substantial increase in demand for our products as market
conditions are expected to remain subdued but additional revenues should be
generated through the distribution centres.
A further tranche of R7.5m of the DTI tax free cash grant is expected before
December 2011.
DIRECTORS
Warwick Lok retired as a director and employee during November 2010. We wish him
a happy retirement and thank him for his considerable contribution to the
development of the group over the past 17 years.
Barry Lok`s contract was terminated in April 2011. We wish him well and thank
him for his significant contribution to the group over the past 31 years.
Wally Van Coller resigned in June 2011.
Clyde Lok was appointed as a non-executive director in April 2011.
Johan Diederiks was appointed as CEO in August 2011.
Richard McElligott was appointed in September 2011 to the Board and audit
committee as an independent non-executive director.
DIVIDENDS
No dividend is recommended.
SUBSEQUENT EVENTS
No matters which are material to the financial affairs of the group have
occurred between the reporting date and the date of this report.
BASIS OF PREPARATION
These abridged financial results have been prepared in accordance with
International Financial Reporting Standards ("IFRS") and AC 500 standards as
issued by the Accounting Practices Board, in particular, IAS 34: Interim
Financial Reporting, the South African Companies Act, as amended, and the
Listings Requirements of the JSE Limited. The principal accounting policies used
in the preparation of the audited results for the period ended 30 June 2011 are
consistent with those applied for the year ended 30 June 2010. The financial
statements have been prepared under the supervision of the Financial Director Ms
N Govender, CA (SA).
AUDIT OPINION
The abridged financial results for the year ended 30 June 2011 have been audited
by the Group`s auditors, BDO South Africa Inc, and the unmodified audit report
is available for inspection at the Company`s registered office.
NOTICE OF THE ANNUAL GENERAL MEETING
Notice is hereby given that the Annual General Meeting of shareholders will be
held at 31 Van Eck Street, Chamdor on Wednesday, 16 November 2011 at 09:00, to
transact the business stated in the notice of the Annual General Meeting
contained in the Integrated Annual Report, which Report is in the process of
being prepared and which will be posted to shareholders by no later than 30
September 2011.
Abridged Consolidated Statement of
Comprehensive Income
Audited Audited
R`000 June 2011 June 2010
Revenue 181 068 139 484
Cost of sales (150 601) (117 472)
Gross profit 30 467 22 012
681 12 566
Other income
Administrative expenses (24 855) (14 653)
Sales and marketing expenses (5 068) (1 713)
Other operating expenses (7 997) (45 319)
Operating loss (6 772) (27 107)
Investment income 922 425
Foreign exchange profit/(loss) 27 (21)
Interest paid (5 907) (7 198)
Loss before taxation (11 730) (33 901)
3 338 13 210
Taxation
Loss for the year (8 392) (20 691)
Depreciation and amortisation for the 11 470 11 126
period
Basic and diluted loss per share (6,7) (16,6)
(cents)
Headline and diluted loss per share (6,7) (2,5)
(cents)
Reconciliation of basic loss to
headline loss
Basic loss (8 392) (20 691)
Adjusted by the after tax effect of
the following:
- Loss/(Profit) on the sale of 3 (7 447)
property, plant and equipment
- Impairment of property, plant and - 25 026
equipment
Headline loss (8 389) (3 112)
Number of ordinary shares in 125 000 125 000
issue (`000)
Weighted average number of 125 000 125 000
shares (`000)
Abridged Consolidated Statement of
Changes in Equity
Audited Audited
R`000 June 2011 June 2010
Share capital
Balance at the beginning of the year 1 250 1 250
Balance at the end of the year 1 250 1 250
Share premium
Balance at the beginning of the year 179 265 179 265
Balance at the end of the year 179 265 179 265
Accumulated profit and other reserves
Balance at the beginning of the year 10 310 31 001
Loss for the year (8 392) (20 691)
1 918 10 310
Abridged Consolidated Statement of
Financial Position
Audited Audited
R`000 June 2011 June 2010
ASSETS
Non-current assets 217 990 221 538
Property, plant and equipment 215 645 221 506
Intangible assets 52 32
Deferred taxation 2 293 -
95 078 68 376
Current assets
Inventories 35 308 27 051
Trade and other receivables 34 530 29 971
Cash and cash equivalents 25 240 11 354
Non-current assets held for sale - 8 000
313 068 297 914
EQUITY AND LIABILITIES
Capital and reserves 182 433 190 825
Share capital 1 250 1 250
Share premium 179 265 179 265
Accumulated profit 1 918 10 310
Non-current liabilities 57 777 59 800
Interest-bearing borrowings 33 770 54 688
Deferred taxation - 2 151
Deferred income 24 007 2 961
Current liabilities 72 858 47 289
Trade and other payables 45 095 23 775
Deferred income 1 247 281
Interest-bearing borrowings 23 496 17 347
Provisions 2 112 906
Current taxation payable 908 4 980
313 068 297 914
Net asset value per share (cents) 146 153
Capital expenditure for the period 4 629 13 522
(R`000)
Abridged Consolidated Cash Flow
Statement
Audited Audited
R`000 June 2011 June 2010
Net cash generated by operations 12 793 2 809
Net finance costs (4 958) (6 794)
Taxation paid (5 179) (52)
Cash flow from operating activities 2 656 (4 037)
Cash flow from investing activities 25 999 34 857
Cash flow from financing activities (14 769) (34 061)
Movement in cash and cash equivalents 13 886 (3 241)
Cash and cash equivalents at the 11 354 14 595
beginning of the year
Cash and cash equivalents at the end 25 240 11 354
of the year
Segmental report
This is a single segment group and no segmental reporting is provided.
BY ORDER OF THE BOARD
R B Patmore (Chairman)*, J Diederiks (Chief Executive Officer), N Govender
(Financial Director), CD Lok**, N de Winnaar, M G Meehan* R B McElligott*
*Independent, non-executive
** Non-executive
19 September 2011
REGISTERED ADDRESS:
31 Van Eck Street
Chamdor
Krugersdorp
1740
COMPANY SECRETARY:
Sirkien van Schalkwyk
No 1 Carlsberg
430 Nieuwenhuyzen Street
Erasmuskloof, 0048
DESIGNATED AND CORPORATE ADVISOR:
PSG Capital (Proprietary) Limited
Ground Floor, DM Kisch House
Inanda Greens Business Park
54 Wierda Road West
Wierda Valley
Sandton 2196
TRANSFER SECRETARIES:
Computershare Investor Services (Proprietary) Limited
Ground Floor
70 Marshall Street
Johannesburg, 2001
(P O Box 61051, Marshalltown, 2107)
REGISTERED AUDITORS:
BDO South Africa Inc.
13 Wellington Road
Parktown 2193
Date: 19/09/2011 07:44:02 Produced by the JSE SENS Department.
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