| Mon 5 Mar 2001, 0:00 | | Excellerate Holdings Limited - Interim Results |
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Excellerate Holdings Limited
(formerly CedarGro Holdings Limited, registration number 1997/009884/06)
Results for the six months ended 31 December 2000
Fast, focused excellence
SALIENT FEATURES
Acquisitions bedded down
Cash resources considerably increased
Massive turnaround on return on funds invested
Financial highlights
Turnover up 53%
Operating profit up 262%
Headline earnings per share up 2900%
Six months smashes nine months
Highlight Six-months Nine-months
Turnover (R) 109 045 million 101 103 million up 8%
Operating profit (R) 7 579 million 3 175 million up 139%
Headline earnings per share 3,0 cents 0,6 cents up 400%
Consolidated income statements
Reviewed Reviewed Audited
6 months 6 months 9 months
ended ended ended
31 December 31 March 30 June
2000 2000 2000
R'000 R'000 R'000
Turnover
continuing operations 109 045 70 770 100 399
- discontinued operations - 701 704
109 045 71 471 101 103
Operating profit -
continuing operations 7 579 2 860 4 015
- discontinued operations - (768) (840)
Non-recurring items - (1 724) (1 724)
Net income before interest
and taxation 7 579 368 1 451
Net interest received/(paid) 95 (225) (225)
Net income before taxation 7 674 143 1 226
Taxation (2 102) (48) (420)
Net income after taxation 5 572 95 806
Attributable to minority
shareholders (28) - -
Amortisation of goodwill (787) - -
Attributable to ordinary
shareholders 4 757 95 806
Weighted average number of
shares in issue (000's) 158 918 138 095 138 095
Earnings per share (cents) 3,0 0,1 0,6
Headline earnings per
share (cents) 3,0 0,1 0,6
Sustainable headline earnings
per share (cents) 3,0 1,3 1,9
Reconciliation of headline
and sustainable headline
earnings:
Attributable to ordinary
shareholders 4 757 95 806
adjust for:
- Amortisation of goodwill 787 - -
- Capital profits (929) - -
- Tax thereon 109 - -
Headline earnings 4 724 95 806
adjust for
- Discontinued operations - 768 840
- Non-recurring items - 1 724 1 724
- Tax thereon - (748) (769)
Sustainable headline
earnings 4 724 1 839 2 601
Consolidated balance sheets
Reviewed Reviewed Audited
31 December 31 March 30 June
2000 2000 2000
R'000 R'000 R'000
Assets
Non-current assets 63 081 12 836 13 824
Fixed assets 6 421 3 454 3 078
Investments 271 - -
Intangibles 45 545 - -
Deferred taxation 10 844 9 382 10 746
Current assets 85 536 61 356 72 946
Liquid funds 22 823 1 615 3 619
Other current assets 62 713 59 741 69 327
Total assets 148 617 74 192 86 770
Equity and liabilities
Equity and reserves 94 662 55 354 63 584
Ordinary shareholders'
interest 94 634 55 354 63 584
Outside shareholders'
interest 28 - -
Non-current liabilities
Long-term loans 1 723 749 550
Current liabilities 52 232 18 089 22 636
Other current liabilities 45 131 18 089 22 636
Amounts due to vendors 7 101 - -
Total equity and liabilities 148 617 74 192 86 770
Shares in issue (000's) 184 762 138 095 138 095
Net asset value per share
(cents) 51,2 40,1 46,0
Net tangible asset value
per share (cents) 26,6 40,1 46,0
Consolidated cash flow statements
Reviewed Reviewed Audited
6 months 6 months 9 months
ended ended ended
31 December 31 March 30 June
2000 2000 2000
R'000 R'000 R'000
Cash generated by operations 20 172 697 3 107
Net interest received/(paid) 95 (225) (225)
Taxation paid - (545) (1 062)
Cash flow from operating
activities 20 267 (73) 1 820
Cash flow from investing
activities (29 198) (102) 59
Cash flow from financing
activities 28 010 (444) (528)
Net cash resources retained/
(utilised) for the period 19 079 (619) 1 351
Foreign exchange gain 125 44 78
Net cash resources at
beginning of period 3 619 2 190 2 190
Net cash resources at end
of period 22 823 1 615 3 619
Statement of changes in
ordinary shareholders' interest
Non-
Ordinary distribut-
share Share able Retained
capital premium reserve earnings Total
R000's R000's R000's R000's R000's
Balance at 30
September 1999 1 381 29 798 6 15 297 46 482
Prior year adjustment
for deferred taxation - - 11 165 (2 432) 8 733
Balance at
1 October 1999 1 381 29 798 11 171 12 865 55 215
Foreign currency
translation - - 44 - 44
Net profit for
the year - - - 95 95
Balance at
31 March 2000 1 381 29 798 11 215 12 960 55 354
Foreign currency
translation - - 34 - 34
Net profit for the
year - - - 711 711
Retribution for
breach of warranty - - 7 485 - 7 485
Balance at
30 June 2000 1 381 29 798 18 734 13 671 63 584
Shares issued
(net of expenses) 467 27 484 - - 27 951
Foreign currency
translation - - 125 - 125
Net profit for the
year - - - 4 757 4 757
Retribution for
breach of warranty - - (1 783) - (1 783)
Balance at
31 December 2000 1 848 57 282 17 076 18 428 94 634
Additional information
Reviewed Reviewed Audited
6 months 6 months 9 months
ended ended ended
31 December 31 March 30 June
2000 2000 2000
R'000 R'000 R'000
1 Capital expenditure
for the period 849 146 1 024
2 Depreciation for
the period 626 648 863
3 Net interest
received/(paid) 95 (225) (225)
Interest received 658 69 405
Interest paid (563) (294) (630)
4 There are no material capital expenditure commitments
5 During the course of the previous financial year, the company changed its
year-end from 30 September to 30 June. Accordingly the reported results for the
previous six-months are those for the period ended 31 March 2000, which are
considered to be comparable to the period under review.
Comment
The performance of the Group is to be commended, given the difficult conditions
prevailing during the trading period under review, the prevailing economic
conditions in the country, in general, and the mass merchant retailing sector,
in particular.
In just nine months, the Group has been streamlined and has met the first
operational objectives set. Its performance reflects a balanced start given the
adversities that it was faced with nine months ago. The Group is now prepared
to handle the choreography that will follow upon the solid foundation that has
been laid.
Turnover increased by 53%, operating profit by 262% and headline earnings per
share increased by 2900% to 3,0 cents.
A comparison of the six-month period under review with the previous nine
months, ending 30 June 2000 (Excellerate's new year end) demonstrates
remarkable statistics in that the results for the six-months completely
overshadow those for the longer nine-month period.
Two new acquisitions were bedded down during the period and a massive
turnaround in return on funds invested has been achieved. Cash resources during
the period considerably increased.
The activities of the Group include the earnings of the Sterikleen acquisition
for the full six-month period and the Interpark acquisition for only four
months of the period under review.
Excellerate has a zeal for challenging convention and is determined to
influence the fields of endeavour in which it is involved - trade, distribution
and services. Through its entrepreneurial spirit, both as a Group and in its
individual operations, the work ethic is to innovate and re-invent in order to
inspire and to take advantage of and engineer every opportunity that presents
itself.
During the period under review, further decentralisation took place with the
Group's corporate distribution operations forming part of the ExcellTrade
division, the FoodServ operation falling under the ExcellCater division and the
two acquisitions made, namely, Sterikleen and Interpark, falling under the
newly created ExcellServ division.
The ExcellCater division performed admirably deriving benefit from its export
drive and from broadening its customer base. The two new acquisitions performed
above expectation as a result of Group synergisation and input. The ExcellTrade
division performed satisfactorily, given the declining consumer spending in the
mass merchant retail market as a result of new market forces prevailing in the
retail sector.
Prospects
During the period under review, the Group focused intense concentration on
bedding down the two new acquisitions and on positioning the new ExcellServ
division in the market place.
A fresh set of operational and acquisitive objectives have been set, management
capabilities have been enhanced and the Group is in the process of extracting
maximum advantage from certain opportunities which have presented themselves
and which, hopefully, will become manifest before the year end.
Dividend
As indicated previously, no dividend has been declared in the light of the
Group's desire to utilise its resources to finance selective acquisitions and
other growth within the existing divisions.
Independent review
The financial information contained in this announcement has been prepared in
accordance with Generally Accepted Accounting Practices in South Africa and
policies which are consistent with those of the 2000 financial statements.
Segmental information has not been provided as the directors do not consider
such information to be meaningful and comparable to prior periods, given the
restructuring of the Group activities which has taken place over the last nine
months.
The Group's auditors, KPMG Inc., have reviewed, but not audited the financial
information for the six-month period ending 31 December 2000. Their report is
available for inspection at the registered office of the company.
For and on behalf of the Board
L Rottanburg
(Executive Chairman)
D Pearlman
(Financial Director)
Johannesburg
5 March 2001
Registered Office: Block F, Lower Ground Floor, Pin Mill Farm, 164 Katherine
Street, Sandown, 2196. PO Box 785448, Sandton, 2146. Telephone: (+27 11)
444-0474. Telefax: (+27 11) 262-0360. E-mail: lisek@excellerate.co.za
Directorate: L Rottanburg (Executive Chairman), H Bloch, D Jacobson, J Joseph,
S Lewis*, Dr. D Molapo*, D Pearlman, A Stewart (*non-executive director)
Company Secretary: E R Goodman Secretarial Services cc (represented by E
Goodman)
Share transfer secretary: Computershare Services Limited, 2nd Floor, Edura
House, 41 Fox Street, Johannesburg, 2001. PO Box 61051, Marshalltown, 2107.
Telephone: (+27 11) 370 7700. Telefax: (+27 11) 836 0792
