| Fri 20 Apr 2001, 0:00 | | Amlac Final Results For The Period Ending 31 Decem |
|
AMLAC LIMITED
(Registration number 1995/08727/06)
(Incorporated in the Republic of South Africa)
("Amlac")
Income statements
Group Company
Audited Audited Audited Audited
Year ended year ended year ended year ended
2000 1999 2000 1999
Revenue 42,272 53,788 - -
Net income for operations 4,305 (1,954) - -
Surplus on restruction of
company 7,000 - - -
Net finance costs (2,925) (3,533) - -
Net income before taxation 8,380 (5,487) - -
Taxation - 3,930 - -
Net income after taxation 8,380 (5,483) - -
Attributable to outside
shareholders 120 (416 786) - -
Income attributable to
shareholders 8,500 (5,066) - -
Retained income at the
Beginning of period 1,353 3,714 4,020 4,020
Retained income at the
end of period 7,747 (1,352) 4,020 4,020
Number of shares
in issue 21,000 21,000 21,000 21,000
Earnings per share (cents) 0,07 (24) - -
Balance sheet
Group Company
Audited Audited Audited Audited
Year ended year ended year ended year ended
2000 1999 2000 1999
Assets
Non-current assets
Property, plant
and equipment 24,014 10,523 - -
Goodwill - 4,038 - -
Trademark 1,072 - -
Interest in subsidiaries - - 9,848 9,848
Investments - - - -
Share incentive trust - 521 521 521
Current assets 13,730 18,842 - -
Total assets 37,744 10,370 10,370 10,370
EQUITY AND LIABILITIES
Capital and reserves
Issued capital 210 210 210 210
Share premium 7,148 6,140 6,140 6,140
Accumulated profits/
(losses) 200 4,020 4,020 4,020
Outside shareholders
Interest - - - -
Non-distributable reserves
Non-current liabilities
Interest bearing borrowings 13,225 - - -
Non interest bearing
borrowing - - - -
Deferred taxation - - - -
Loan from Et Cetera Trust 12,603 - - -
Current liabilities
(Credit & Provisions) 4,358 31,934 - -
Equity and liabilities 37,744 10,370 10,370 10,370
NATURE OF BUSINESS
Suppliers of automotive industrial and decorative paints and related consumable
products to the commercial and industrial markets. In addition, the Amlac group
supplies tools, abrasives, electrodes and various support products to its
markets. Trading brands include Spies Hecker, Du Pont Automotive paints and 3M
Automotive and Industrial products. Subsequent to the change of ownership
during 2000, the Amlac group expanded into the oil lubricant market supplying
all forms of finished oil lubricant products to the wholesale and retail
markets. This was further bolstered with the sole distribution rights awarded
for South Africa with the brand product range of Petromin Oils.
COMMENTS
Amlac Limited during the 3rd and 4th quarters of 2000 was faced with severe
financial difficulties, hence the decision of the former management to search
for an equity partner which materialised with the Goodwill Trust acquiring 68%
control of the holding company on 24 July 2000. It was at that juncture that
the new management realised that significant restructuring of the group was
required in order to restore profitability in the short term.
REMEDIAL STEPS
This was achieved with retrenchment of staff during October 2000 which resulted
in a sizable reduction in the salary costs and coupled with new operational
procedures implemented, direct cost such as motor vehicle expenses, stock theft
reduced to such an extent resulting in enhanced margins being attained. The
operations cashflow was also improved with stringent credit policies being
followed through which resulted in prompt collections of debtors, thus
improving the profitability being evident. Further important factor was the
re-structuring of creditors owing which benefited the operating entity with
reduced commitments thus enhancing the group's cashflow position.
Non viable centres were either sold off or closed, thus further reducing fixed
overhead costs of the group whilst enhancing viable centres in order to further
bolster profitability of these centres for the group. Whilst the re-structuring
has borne fruits to-date, further re-structuring of the group is envisaged for
the 2001 fiscal period, thus ensuring further enhanced profitability for the
group and instilling further positive cashflow growth during this period.
PROSPECTS
Prospects exists for further expansion drive being implemented during the 2001
fiscal period which strategy will be implemented upon finality being reached on
administrative and logistical issues currently being addressed.
Accordingly, it is envisaged that an enhanced profitability situation will be
achieved as that attained during the 2000 fiscal period.
Optimism prevails.
Dividends
In terms of the company's published policy to conserve cash resources, no
dividend will be paid for the period ending 31 December 2000.
By order of the board
SA Bhana (Wits) (Unisa)
Chairman & Chief Executive Officer
Secretary and registered office
V du Plessis Bcom (Acc) RAU, 1 Ruven Road, Benrose, Johannesburg, 2001
PO Box 2829, Edenvale 1610, South Africa
Website: http//www.amlac.co.za
Transfer secretaries
Computershare Services Limited, 14 floor, Edura House, 40 Commissioner Street,
Johannesburg 2001, PO Box 61051, Marshalltown 2107, South Africa
Directors
SA Bhana (Chairman & Chief Executive Officer)
FS Bhana, EC Brown, V du Plessis
