| Thu 29 Mar 2001, 0:00 | | Winecorp - Group Financial Results For Six Months |
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WINECORP LIMITED
Group financial results for the six months ended 31 January 2001 and
announcement of issue of shares for cash
Financial results
The financial results of the group for the six months ended 31 January 2001 are
set out below. The accounting policies which have been applied are consistent
in all material respects with those applied in the previous year.
For the first six months of the financial year Winecorp Limited is pleased to
report a net profit of R2,2 million. This is a turnaround from the R8,9 million
loss for the same period last year and confirms the progress being made by the
group following the restructuring last year. Sales are up 56% and margins have
improved. In addition, Ashwood Wines has been successfully integrated from the
start of the trading period. Regarding the associates, Thales has traded well
for the first six months of the year, but the performance of Vineyards Direct
has been below expectation.
The group's investment in Ingwe Wine Estate was disposed of during the period
at a profit. The reason for the disposal was to release capital tied up in a
long term investment, not in line with the core business of Winecorp.
The number of shares in issue was consolidated on a 1 for 10 basis in January.
Prospects
Market conditions remain very competitive and trading conditions in the second
half of the year do not benefit from the pre Christmas promotional rush, but
the enlarged and restructured group is well positioned with the critical mass
and management team to improve its customer mix and to achieve operational and
margin improvements. The biggest uncertainties to year end profitability are
exchange rate fluctuations and precise timing of customers' order schedules.
Issue for cash and introduction of strategic shareholder
The directors are pleased to announce that Winecorp has concluded an agreement
with Private Liquor Brands Limited ("PLB") in terms of which PLB has acquired a
strategic interest in Winecorp.
In terms of the transaction PLB subscribed for 4 522 017 new ordinary par value
shares of 10 cents each in the capital of Winecorp, for cash, at an issue price
of 90 cents per share.
This transaction increases Winecorp's issued share capital by 10% from
approximately 45,2 million shares to approximately 49,7 million shares. The
issue price represents a discount of 10% to the weighted average traded price
of the shares over the 30 business days prior to 12 February 2001, being the
date upon which the issue price was determined.
PLB is Winecorp's distributor in the United Kingdom and is a major player in
the UK market with significant relationships with all the supermarket and
retail chains. The transaction strengthens the relationship between PLB and
Winecorp and provides capital to Winecorp for future growth.
The financial effects of the transaction are as follows:
6 months ended 6 months ended
31 Jan 2001 31 Jan 2001 %
Before After* change
Headline earnings per share (cents) 4,16 3,78 (9,1)
Net tangible asset value per share (cents) 35,78 32,52 (9,1)
Total number of shares in issue 45 220 172 49 742 189 10,0
* Headline earnings per share is based on the assumption that the shares issued
in terms of the transaction were in issue at 1 August 2000.
Dividends
No dividend has been declared in the current period and none is proposed.
ABRIDGED INCOME STATEMENT
6 months ended 6 months ended Year ended
31 Jan 2001 31 Jan 2000 31 Jul 2000
Unaudited Unaudited Audited
R'000 R'000 R'000
Revenue 41 238 26 432 38 913
Operating expenses (38 687) (29 929) (46 335)
Operating profit/(loss) 2 551 (3 497) (7 422)
Net financing costs (826) (4 379) (3 285)
Net profit/(loss) before
exceptional items 1 725 (7 876) (10 707)
Exceptional items - (1 051) (1 111)
Net profit/(loss) before disposals
and taxation 1 725 (8 927) (11 818)
Disposals - - (28 615)
Net profit/(loss) before taxation 1 725 (8 927) (40 433)
Income from associates 157 12 (464)
Profit on disposal of associate 357 - -
Net profit/(loss) for the period 2 239 (8 915) (40 897)
Weighted number of shares
in issue (million) 45 256 341
Earnings/(loss) per share (cents) 4,95 (3,48) (11,99)
Headline earnings/(loss) per
share (cents) 4,16 (3,48) (3,28)
ABRIDGED BALANCE SHEET
As at As at As at
31 Jan 2001 31 Jan 2000 31 Jul 2000
Unaudited Unaudited Audited
R'000 R'000 R'000
ASSETS
Property, plant and equipment 12 838 34 792 12 845
Investments/associates 114 1 730 1 320
Long term loans 2 763 - 2 763
Related party loans 9 282 - 27 926
Current assets 40 757 60 259 31 222
65 754 96 781 76 076
EQUITY AND LIABILITIES
Shareholders' funds 18 557 25 898 16 318
Long term liabilities 6 764 21 476 15 255
Current liabilities 40 433 49 407 44 503
Interest bearing 2 635 37 712 13 206
Non interest bearing 31 556 11 695 24 240
Related party loans 6 242 - 7 057
65 754 96 781 76 076
Total number of shares
in issue (million) 45 256 452
Net asset value per share (cents) 41,06 10,12 3,61
STATEMENT OF CHANGES IN EQUITY
6 months ended 6 months ended Year ended
31 Jan 2001 31 Jan 2000 31 Jul 2000
Unaudited Unaudited Audited
R'000 R'000 R'000
Balance at start of period 16 318 34 813 34 813
Attributable profit/(loss) for the
period 2 239 (8 915) (40 897)
Share issues - - 28 892
Write offs against share premium - - (6 490)
Balance at end of period 18 557 25 898 16 318
abridged cash flow statement
Cash outflow from operating
activities (12 745) (8 490) (15 262)
Cash inflow/(outflow) from
investing activities 1 553 576 (3 023)
Cash inflow/(outflow) from
financing activities 10 153 (3 182) 26 442
Net (decrease)/increase in cash
and cash equivalents (1 039) (11 096) 8 157
Cash and cash equivalents at
beginning of period (1 044) (9 201) (9 201)
Cash and cash equivalents
at end of period (2 083) (20 297) (1 044)
Directors: F Rahmatallah Chairman (British), JH Laubser Joint MD, B Paxton
Joint MD, CL Heyns Financial, GJ Knox (Australian), RC Johnson (British), AE
Jacobs, SA Garforth (British)
Company Secretary: ML Potgieter (British), c/o Spier Home Farms (Pty) Ltd,
Annandale Road, Stellenbosch 7600
Transfer Secretaries: Mercantile Registrars Ltd, 94 President Street,
Johannesburg 2001
