| Wed 2 Nov 2011, 5:29 | | AWT - Awethu Breweries Limited - Provisional revie |
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AWT
AWT
AWT - Awethu Breweries Limited - Provisional reviewed results for the year ended
30 June 2011 and cautionary announcement
Awethu Breweries Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 1992/004352/06)
Share Code: AWT ISIN Number: ZAE000013769
("the company" or "Awethu")
Condensed Statement of Comprehensive Income
Year ended Year ended
30 June 2011 30 June 2010
Reviewed Audited
R R
Continuing operations
Revenue 814 077 3 144 496
Cost of sales (807 687) (2 626 570)
Gross profit 6 390 517 926
Other income - 10 082
Operating expenses (1 736 304) (2 818 350)
Operating loss (1 729 914) (2 290 342)
Investment revenue 17 071 6 398
Finance costs - (42 497)
Loss from continuing (1 712 843) (2 326 441)
operations
Profit/(loss) from
discontinued operations 3 099 957 (772 247)
Total comprehensive income/(loss) 1 387 114 (3 098 688)
Basic earnings/(loss)per share
(cents) 1.64 (3.66)
Reconciliation between basic earnings/(loss) and headline loss:
Net profit/(loss)for year 1 387 114 (3 098 688)
Discontinued operations (3 099 957) 772 247
Headline loss for the year (1 712 843) (2 326 441)
Headline loss per share (cents) (2.03) (2.75)
Weighted average number of shares on which:
Basic earnings/(loss) per share
is based 84 566 909 84 566 909
Headline loss per share
is based 84 566 909 84 566 909
Condensed Statement of Changes in Equity
Share Share Total Share Accumulated Total
Capital Premium Capital Loss Equity
R R R R R
Balance at
01 July 2009 845 569 9 901 507 10 747 076(12 781 234) (2 034 158)
Changes in equity
Total comprehensive
loss for the year - - - (3 098 688) (3 098 688)
Total changes - - - (3 098 688) (3 098 688)
Balance at
01 July 2010 845 569 9 901 507 10 747 076 (15 879 922)(5 132 846)
Changes in equity
Total comprehensive
profit for the year - - - 1 387 114 1 387 114
Total changes - - - 1 387 114 1 387 114
Balance at
30 June 2011 845 569 9 901 507 10 747 076 (14 492 808) (3 745 732)
Condensed Statement of Financial Position
30 June 30 June
2011 2010
Reviewed Audited
R R
Assets
Non-Current Assets
Property, plant and equipment 3 805 859 3 820 381
Current Assets
Inventories - 492 022
Trade and other receivables 119 998 920 045
Cash and cash equivalents 361 725 216
Investment debtor 3 017 071 -
3 498 794 1 412 283
Non-current assets held for sale and
assets of disposal groups - 2 368 321
Total Assets 7 304 653 7 600 985
Equity and Liabilities
Equity
Share capital 10 747 076 10 747 076
Accumulated loss (14 492 808) (15 879 922)
(3 745 732) (5 132 846)
Liabilities
Non-Current Liabilities
Loan from shareholder 8 131 585 9 324 712
Current Liabilities
Trade and other payables 1 841 442 2 405 830
Provisions 1 077 358 1 003 289
2 918 800 3 409 119
Total Liabilities 11 050 385 12 733 831
Total Equity and Liabilities 7 304 653 7 600 985
Condensed Statement of Cash Flows
30 June 30 June
2011 2010
Reviewed Audited
R R
Cash flows from operating activities
Cash used in operations 285 846 (491 507)
Cash flows from held for sale/discontinued
Operations (2 368 321) (649 081)
Adjustment to assets held for sale 120 040 -
Net cash from operating activities (1 962 435) (1 140 588)
Cash flows from investing activities
Sale of property, plant and equipment 6 500 000 10 000
Interest Income 17 071 6 398
Net cash from investing activities 6 517 071 16 398
Cash flows from financing activities
Repayment of shareholder`s loan (1 193 127) 1 113 521
Finance costs - (42 497)
Investment made (3 000 000) -
Net cash from financing activities (4 193 127) 1 071 024
Total cash movement for the year 361 509 (53 166)
Cash at the beginning of the year 216 53 382
Total cash at end of the year 361 725 216
COMMENTARY
1. Financial review
General
With Carletonville brewery having been sold Awethu henceforth has the necessary
resources to engage in new acquisitions.
Two liquor outlets have been targeted and negotiations have begun. It is
anticipated that the acquisitions will be finalised within the next few months.
Further acquisitions will follow once these have been bedded down and properly
managed.
The Directors foresee a brighter year ahead for Awethu and its shareholders.
This general forecast has not been reviewed nor reported on by the company`s
auditors.
2. Dividends
No dividend has been declared for the year.
3. Accounting policies / compliance
These condensed financial statements have been prepared by the financial
director Irene Vermaak, in accordance with International Financial Reporting
Standards ("IFRS") and IAS 34 - Interim Reporting, using accounting policies
which are consistent with those for the year ended 30 June 2010 and comply with
the relevant sections of the Companies Act of South Africa and the Listings
Requirements of the JSE Limited.
During the year under review the company adopted all of the IFRS and
Interpretations being effective and deemed applicable. None of these had a
material impact.
4. Independent review by the auditors
The condensed provisional results have been reviewed by our auditors, Grant
Thornton who have performed their review in accordance with International
Standards on Auditing. The auditors` modified report is available for inspection
at the company`s registered office. Details of the modification are as follows:
Extracts from the audit report:
"In accordance with our responsibilities in terms of sections 44(2) and 44(3) of
the Auditing Profession Act, we report that we have identified certain unlawful
acts and omissions committed by persons responsible for the management of Awethu
Breweries Limited which constitute reportable irregularities in terms of the
Auditing Profession Act, and have reported such matters to the Independent
Regulatory Board for Auditors.
The following matters pertaining to the reportable irregularities have been
reported:
An amount of R3 million representing proceeds on the sale of the company`s
assets has been deposited into the personal account of the financial director.
Subsequent to year end the amount and applicable interest have been repaid to
the company.
Directors have been appointed to the Audit Committee who do not meet the
requirements of Section 94(4) of the Companies Act.
Output VAT was not declared or paid over to SARS on the proceeds from the sale
of property for the reporting months of March/April 2011 and May/June 2011.
The loan from the majority shareholder has reduced below the amount subordinated
in favour of other creditors.
The company has failed to distribute its annual financial statements to all its
shareholders within three months of its financial year end. The company has
further failed to publish or distribute to all its holders of securities
provisional annual financial statements ("provisional reports") within the three
months specified as per the JSE Limited Listings Requirements."
5. Events after reporting date
Subsequent to the year end, the amount of R3 million, temporarily placed in an
interest bearing account earlier in the year in the name of the financial
director to be held for the benefit of the company, together with interest
received, was transferred to the current account of the company.
The new directors appointed to the company on 6 September 2011 have no
beneficial interest in the company, are not suppliers or customers of the
company, nor have they been involved in the company in any position for the
previous three years, neither do their spouses or any other persons juristic or
otherwise, have any interest in the company which would invalidate their
independence.
Part of the VAT received by the company on the sale of assets earlier in the
year was not paid over to the South African Revenue Services in the required VAT
period. The amount of VAT payable, together with penalties and interest, has
been provided for in these financial statements.
The majority shareholder has undertaken to subordinate his loan to the company
in favour of the creditors of the company, in terms of a new, updated
subordination agreement, and will increase his loan account appropriately.
6. Director changes during the year
Resignation : Anton Venter (8 February 2011)
Appointments : Ahmed Seedat (6 September 2011)
Mohamed Lockhat (6 September 2011)
All the above directors are independent non-executives.
7. Cautionary announcement
Shareholders are advised that Awethu has entered into negotiations which, if
successfully concluded, may have a material effect on the price of the company`s
securities. Accordingly, shareholders are advised to exercise caution when
dealing in the company`s securities until a full announcement is made.
On behalf of the board
TTW Ford
Chief executive
2 November 2011
Vanderbijlpark
Registered Office: 24 Sering Street, SE3 Vanderbijlpark, 1911
Transfer secretaries: Computershare Investor Services (Pty) Ltd -
70 Marshall Street, Johannesburg, 2001
Directors: JA Taylor(Chairman)(ne),TTW Ford(CEO),
I Vermaak(FD),H Bismilla(ne),A Seedat(ne),
M Lockhat(ne)
Company Secretary: JM Caddy FCIS
Auditors: Grant Thornton
Chartered Accountants (S.A.)
Registered Auditors
A South African member of Grant Thornton International
Date: 02/11/2011 17:34:03 Produced by the JSE SENS Department.
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