| Thu 8 Mar 2001, 0:00 | | Fortune Beverages Limited Audited Results Announce |
|
Fortune Beverages Limited
(Registration no 1986/002814/06)
Audited results for the twelve months ended 31 December 2000
Consolidated Income Statement
Audited Unaudited pro forma Audited
12 months ended 12 months ended 18 months ended
31 December 2000 31 December 1999 31 December 1999
R'000 % R'000 % R'000 %
Revenue 253 186 100 261 434 100 385 112 100
Trading profit before
depreciation 26 834 11 43 387 16 53 662 14
Depreciation (10 902) (12 374) (18 253)
Operating profit 15 932 6 31 013 11 35 409 9
Dividends received 1 093 1 050 1 426
Interest paid (2 052) (5 155) (7 657)
Interest received 549 - 2 602
Other income 2 677 - -
Profit before
taxation 18 199 7 26 908 10 31 780 8
Taxation (3 888) (6 042) (13 944)
Net profit attributable to
ordinary shareholders 14 311 6 20 866 8 17 836 5
Number of ordinary
shares in issue 86 893 250 86 893 250 86 893 250
Earnings per share
(cents) 16,5 24,0 20,5
Headline earnings
per share 13,3 24,0 19,6
Dividends per share - - 8,0
Notes:
1. Generally Accepted Accounting Practice
These statements have been prepared in accordance with statements of Generally
Accepted Accounting Practice and on accounting policies consistent with those
of the prior year, except for a change in the deferred tax accounting policy
which is now provided for in full in terms of AC102.
2. Depreciation
The lower depreciation charge resulted from a realignment of rates used within
the group following the acquisition of Coca-Cola Bottling Mpumalanga (Pty) Ltd
in July 1998.
3. Other Income R'000
Capital profit on sale of shares 3 205
Prior years restructuring costs (528)
2 677
4. Comparative figures
We have set out the unaudited pro-forma results for the twelve months ended 31
December 1999 for comparative purposes only.
Abridged Consolidated Balance Sheet
Audited Audited
12 months ended 18 months ended
31 December 2000 31 December 1999
R'000 R'000
Assets
Property, plant and equipment 100 697 104 906
Unlisted investments 3 349 3 349
Current assets 54 157 75 096
Current liabilities (28 932) (59 832)
Net overdraft (7 136) (17 263)
Total assets 122 135 106 256
Equity and liabilities
Permanent capital 98 062 83 751
Long term liabilities 8 928 8 703
Deferred income 5 026 5 081
Deferred taxation 10 119 8 721
Total funding 122 135 106 256
Net tangible asset value per share
(cents) 112,9 99,4
Consolidated Cash Flow Statement
Audited Audited
12 months ended 18 months ended
31 December 2000 31 December 1999
R'000 R'000
Cash flow from operations
Operating profit before amortisation
and depreciation 26 834 53 662
Other non cash items - (3 746)
Working capital movement
Stock 5 092 (7 054)
Accounts receivable 15 847 (31 722)
Accounts payable (20 811) 25 012
Cash generated from operating
activities 26 962 36 152
Investment income 1 642 4 028
Interest paid (2 052) (7 657)
Taxation paid (7 978) (9 774)
Dividend paid (5 215) (2 263)
Net cash inflow from operating
activities 13 359 20 486
Investing activities
Subsidiary acquisition - (1 791)
Additions to fixed assets (6 607) (30 644)
Surplus on sales of shares 3 205
Net cash outflow from investing
activities (3 402) (32 435)
Financing activities
Long term liabilities raised 170 1 648
Long term liabilities repaid - (4 956)
Net cash inflow / (outflow) from
financing activities 170 (3 308)
Cash movement during period 10 127 (15 257)
Net bank borrowings at beginning of
year (17 263) (2 006)
Net bank borrowings at end of year (7 136) (17 263)
Statement of changes in equity
Share Share Distributable Permanent
capital premium reserves capital
R'000 R'000 R'000 R'000
Balance at 30 June 1998 7 008 17 400 33 740 58 148
Net proceeds on the issue of
shares 14 715 3 096 17 811
Change in accounting policy (3 092) (3 092)
Net profit attributable to
ordinary shareholders 17 836 17 836
Dividends declared (6 952) (6 952)
Balance at 31 December 1999 21 723 20 496 41 532 83 751
Net profit attributable to
ordinary shareholders 14 311 14 311
Comment
The disappointing results for the year ended 31 December 2000 were a function
of lower volumes, which were 9 percent down on the previous year, and the
slower than expected progress in optimising efficiencies in certain areas of
our business. Turnover declined by 3 percent to R253-million and trading profit
was some 37 percent lower at R26,8-million. The trading margin declined from
16,2 percent to 10,6 percent and headline earnings per share declined by 44,6
percent to 13,3 cents per share.
Notwithstanding the lower profitability the balance sheet strengthened
considerably over the year. Interest bearing debt was reduced by R10,1-million
to R7,1-million and the current asset ratio improved from 1,3 times to 1,9
times cover. In reviewing the results, we would like to highlight the following
1. The program to optimise efficiences introduced by our new management team is
having a positive impact on our operations and trading margins;
2. Significant performance improvement was attained in the second half of the
financial year;
3. The three new depots opened during the year have greatly relieved congestion
at our facilities and enhanced sales execution;
4. Overheads have been reduced and cost control measures implemented throughout
the group;
5. The lower infrastructure spend referred to in previous reports is a reality
and the group is expected to generate positive cash in the future.
Prospects
The current financial year has started off on a very positive note. The more
settled summer weather conditions have greatly enhanced our volumes. In
addition, with the efficiency and cost containment procedures in place, we are
confident that this year will show a substantial improvement on our
margins and profits over the previous financial year.
Volumes
The graph below reflects the physical case volume trends for the two years
ended 30 June 1997 and for the three calendar years ended 31 December 2000.
Dividends
Notice is hereby given that an ordinary dividend of 5,0 cents per share for the
financial year ended 31 December 2000 has been declared payable to shareholders
registered in the company's books as at 23 March 2001. The register of members
will be closed from 24 March 2001 to 30 March 2001, both days inclusive, to
determine which members qualify for the dividend. Dividends will be paid on or
about 6 April 2001.
Directorate
It is with regret that we announce the resignation of our Chairman, Mr Keith
Kunene, who resigned from the Board on 16 February 2001. On 6 March 2001 Mr MWZ
Kunene was appointed Chairman and Chief Executive Officer.
STRATE
Fortune Beverages Limited (Fortune) has been notified by the JSE Securities
Exchange that we have been selected to transfer the company's share capital to
the electronic STRATE "Share Transactions Totally Electronic" environment as
from 9 April 2001. This is the date from which investors' shares can be
converted into an electronic record in order to become eligible to settle in
the STRATE environment. Trading for electronic settlement begins on 30 April
2001 and from this date there is a legal requirement for investors to deposit
their shares with a CSDP or qualifying stockbroker prior to selling them in
order for the trade to settle in STRATE. This means that with effect from 30
April 2001 investors will not be able to sell their Fortune shares unless they
exist in electronic form in the STRATE environment. Electronic settlement of
trades in Fortune shares will take place for the first time on 8 May 2001.
Cautionary announcement
Shareholders are referred to the cautionary announcement published in the press
on 5 February 2001.
Shareholders of Fortune are advised that the negotiations referred to are
ongoing and if successfully concluded may have a material impact on the share
price of Fortune shares on the JSE Securities Exchange South Africa.
Shareholders of Fortune are advised that they should continue to exercise
caution when dealing in their Fortune shares until a further announcement has
been made in this regard.
By order of the Board
LC Williams
Company Secretary
Signed at Johannesburg on Tuesday 6 March 2001
Transfer secretaries: Registered address:
Mercantile Registrars Ltd Suite 501, The Pinnacle Building
11 Diagonal Street 1 Parkin Street,
2001 Johannesburg 1200 Nelspruit
Directors: MWZ Kunene (Chairman and Chief Executive Officer)*, TL Skweyiya
(Vice Chairman), DM Andrews (Group Managing Director)*, DV Lewis, S McLeod
(Alt), GJ Royston, A Tlakula, AE Wentzel.
* Executive Directors
