| Fri 9 Mar 2001, 0:00 | | Rex Trueform Clothing Company Ltd - Interim Profit |
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Rex Trueform Clothing Company Limited
(Registration number 1937/009839/06)
PROFIT ANNOUNCEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2000
INCOME STATEMENT
Consolidated (R'000)
Six months ended Year ended
December 31 June 30
2000 1999 2000
(Unaudited) (Unaudited) (Audited)
Revenue 139 592 140 131 289 104
Net operating (loss)/income
before depreciation (2 652) 9 037 19 970
Depreciation 4 180 4 173 8 182
Net operating (loss)/income (6 832) 4 864 11 788
Net interest received 2 092 3 354 5 359
(Loss)/income before taxation (4 740) 8 218 17 147
Taxation 64 2 675 6 024
(Loss)/income after taxation (4 804) 5 543 11 123
Preference dividends 8 8 16
Net (loss)/income attributable to
ordinary and "N" ordinary shareholders (4 812) 5 535 11 107
Headline (loss)/earnings
per share (cents) (23.3) 26.8 53.8
Weighted average number of
equity shares on which earnings
per share is based (000) 20 642 20 642 20 642
Number of equity shares in
issue (000) 20 642 20 642 20 642
BALANCE SHEET
Assets
Non-current assets 41 161 36 020 33 997
Fixed assets 36 416 31 293 29 886
Investments (unlisted) 4 745 4 727 4 111
Current assets 135 594 155 595 162 083
Inventory 91 679 92 243 86 388
Debtors 23 495 33 261 24 383
Cash 20 420 30 091 51 312
Total assets 176 755 191 615 196 080
Equity and liabilities
Capital and reserves 158 208 162 609 163 020
Share capital 1 777 1 777 1 777
Share premium 25 847 25 847 25 847
Non-distributable reserves 1 104 1 104 1 104
Distributable reserves 129 480 133 881 134 292
Non-current liabilities 208 2 588 187
Deferred taxation 208 2 588 187
Current liabilities 18 339 26 418 32 873
Short-term interest bearing debt - - 3 118
Accounts payable 18 241 26 271 21 045
Taxation 98 147 3 549
Shareholders for dividend - - 5 161
Total equity and liabilities 176 755 191 615 196 080
ABRIDGED CASH FLOW STATEMENT
Cash (applied to)/generated by
operations (2 768) 8 848 19 773
Working capital changes (10 199) (17 357) (5 406)
Interest received (net) 2 092 3 354 5 359
Taxation (3 620) (4 816) (6 490)
Dividends paid (5 169) (5 169) (5 177)
Net cash (outflows)/inflows
from operations (19 664) (15 140) 8 059
Net cash outflows from
investing activities (11 228) (3 126) (5 104)
Net (decrease)/increase in cash (30 892) (18 266) 2 955
Cash at the beginning of the period 51 312 48 357 48 357
Cash at the end of the period 20 420 30 091 51 312
STATEMENT OF CHANGES IN EQUITY
Consolidated (R'000)
Six months ended Year ended
December 31 June 30
2000 1999 2000
(Unaudited) (Unaudited) (Audited)
Share capital 1 777 1 777 1 777
Share premium 25 847 25 847 25 847
Non-distributable reserves 1 104 1 104 1 104
Distributable reserves
Opening balance 134 292 128 346 128 346
(Loss)/profit after taxation (4 804) 5 543 11 123
Dividends (8) (8) (5 177)
129 480 133 881 134 292
OTHER INFORMATION
Capital expenditure 7 021 3 924 6 604
Capital commitments
Contracted for 224 83 2 031
Authorised - not contracted for 2 563 3 338 4 264
Current ratio 7.4 5.9 4.9
Preference dividend
A dividend on the 6% cumulative preference shares for the six months ended
December 31, 2000 in the amount of R8 400 was declared in November 2000.
COMMENT
As was foreshadowed the performance of the company for the six months ended 31
December 2000, has been disappointing and a loss has been incurred.
Under difficult trading conditions internationally, large export orders, which
were a major factor in the results achieved for the comparative period in 1999,
were not repeated. The long production runs normally generated by exports of
this nature, therefore, did not materialise resulting in a significant
under-recovery of overheads and loss of revenue.
The results were also adversely affected by the general lower level of domestic
activity, where margins were under pressure. Notwithstanding these
difficulties, Queenspark continued to trade profitably during the period.
Initiatives are under way to establish alternative export business in the EU
and the USA. Preferential access to these markets is now available and the
medium to long-term outlook for these is encouraging.
In the shorter term, however, it has been necessary to re-organise our
manufacturing facilities in order to match the requirements of the marketplace
and to cope successfully with the shorter production runs which are required in
the domestic market.
In view of the strong position of Queenspark in its niche market and the
initiatives and actions referred to above, it is expected that the performance
for the second half of the financial year should result in the company
returning to profitability.
The balance sheet remains strong and the company is capable of financing future
expansion out of its own cash resources. This financial strength and our
existing infrastructure ensure that the company remains well positioned to take
advantage of an upturn in demand.
Signed on behalf of the Board:
Stewart C Shub (Chairman)
Alan A Hodgkinson (Director)
Cape Town
8 March 2001
Transfer Secretaries: Registered Office:
Mercantile Registrars Ltd Rex Buildings
10th Floor, 11 Diagonal Street 263 Victoria Road
Johannesburg, 2001 Salt River, Cape, 7925
Directors: SC Shub (Chairman), G Bradley, MR Danford (British), AA Hodgkinson,
JC O'Brien, CEA Radowsky, DB Rushmere, AM Shub, PE Shub, CA Stride, DR Sykes,
GM Thomas
Secretary: African & Overseas Enterprises Limited
