| Thu 10 May 2001, 0:00 | | Natchix Unaudited Interim Results For 31 March 200 |
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National Chick Limited
(Company registration number 1980/008743/06)
(Incorporated in the Republic of South Africa)
INTERIM RESULTS
for 31 March 2001
GROUP INCOME STATEMENT
Unaudited Unaudited % Unaudited % Audited
6 months 6 months change 6 months change 12 months
to to on to on to
31/03/01 31/03/00 1st half 30/09/00 2nd half
prior prior
(R000's) year year
Revenue 127 016 107 149 18,5 106 194 19,6 213 343
Operating income
before depreciation 16 353 15 295 6,9 11 086 47,5 26 381
Depreciation 3 854 3 140 3 525 6 665
Net finance
charges 3 972 3 207 3 871 7 078
Profit before
taxation 8 527 8 948 (4,7) 3 690 131,1 12 638
Taxation 2 814 2 391 17,7 1 271 121,4 3 662
Profit after
taxation 5 713 6 557 (12,9) 2 419 136,2 8 976
Profit attributable
to minority
interests 593 389 197 586
Profit attributable
to ordinary
shareholders 5 120 6 168 (17,0) 2 222 130,4 8 390
Number of ordinary
shares in issue 31 660 31 660 31 660 31 660
Headline earnings
per share (cents) 16,4 19,3 (14,9) 6,7 146,4 25,3
Earnings per share
(cents) 16,2 19,5 (17,0) 7,0 130,4 26,5
Determination of
headline earnings
Profit attributable
to shareholders of
the company 5 120 6 168 2 222 8 390
Less: loss/(profit)
on sale of fixed
assets 75 (67) (114) (386)
Headline earnings 5 195 6 101 2 108 8 004
GROUP BALANCE SHEET
Interim Audited Interim
(R000's) 31/03/01 30/09/00 31/03/00
Assets
Non-current assets 110 704 113 376 97 729
- Fixed assets 110 277 112 949 97 287
- Investments 427 427 442
Current assets 87 158 72 345 67 851
- Inventory 46 115 42 458 39 843
- Accounts receivable 36 899 24 025 21 611
- Cash and bank balances 4 144 5 862 6 397
Total assets 197 862 185 721 165 580
Equity and liabilities
Ordinary share capital and premium 23 720 23 720 23 720
Non-distributable reserves 1 637 1 536 1 498
Retained income 46 260 41 140 38 918
Ordinary shareholders' funds 71 617 66 396 64 136
Minority interests 7 684 6 585 4 798
Shareholders' equity 79 301 72 981 68 934
Non-current liabilities 55 859 61 779 43 041
- Deferred taxation 17 054 16 568 16 267
- Retirement benefit obligation 1 532 1 485 2 000
- Interest bearing 37 273 43 726 24 774
Current liabilities 62 702 50 961 53 605
- Interest bearing 20 687 17 989 26 742
- Non-interest bearing 42 015 32 972 26 863
Total equities and liabilities 197 862 185 721 165 580
Debt to equity (%) 67,9 76,5 65,5
Net asset value (cents) 226,2 209,7 202,6
Statement of changes in equity
Non-
Share Share distributable Distributable
(R000's) capital premium reserves reserves Total
Balance at 30 September
1999 8 29 349 1 498 32 750 63 605
Currency translation
differences 38 38
Attributable income
for the period 8 390 8 390
Write off of intangible (5 637) (5 637)
Balance at 30 September
2000 8 23 712 1 536 41 140 66 396
Currency translation
differences 101 101
Attributable income
for the period 5 120 5 120
Balance at 31 March
2001 8 23 712 1 637 46 260 71 617
Abridged group cash flow statement
Unaudited Audited Unaudited
6 months 12 months 6 months
to to to
(R000's) 31/03/01 30/09/00 31/03/00
Cash flows from operating
activities 3 133 6 820 785
Net profit before taxation 8 527 12 638 8 948
Non-cash adjustments 3 929 6 267 3 073
Operating profit before working
capital requirements 12 456 18 905 12 021
Working capital changes (9 189) (6 521) (6 213)
Taxation paid (134) (1 132) (591)
Dividend paid - (4 432) (4 432)
Cash flows from investing
activities (1 872) (30 087) (11 367)
Net purchase of fixed assets (2 003) (30 630) (11 439)
Proceeds on disposal 131 543 72
Cash flows from financing
activities (7 275) 32 678 7 397
Minority interest loans (337) 3 107 843
Proceeds of long-term borrowings 789 40 446 11 256
Repayment of capital element of
long-term borrowings (7 727) (10 875) (4 702)
Net increase/(decrease) in cash
and cash equivalents (6 014) 9 411 (3 185)
Cash and cash equivalents at
beginning of year 1 002 (8 409) (8 409)
Cash and cash equivalents at end
of period (5 012) 1 002 (11 594)
Segmental report
2001 2000 2000
(R000's) 1st half 1st half 2nd half
Revenue
- Broiler 92 131 87 472 84 537
- Layer 13 604 12 794 13 429
- Animal Health 11 265 6 883 8 063
- Nutrition 10 016 - 165
127 016 107 149 106 194
Attributable income
- Broiler* 5 044 6 300 2 711
- Layer (239) (112) (135)
- Animal Health 502 185 222
- Nutrition (187) (205) (576)
5 120 6 168 2 222
*Includes corporate costs.
COMMENTS
Accounting policies
There is no change to the accounting policies reflected in the annual report at
30 September 2000.
Results
After the poor second half in 2000, it is encouraging to see the group
returning to forecast levels of profitability. Revenue improved by 19% over
both the first and second half periods of the previous year.
Operating profit before depreciation and interest rose to R16,35 million. This
is 7% up on the same period last year (R15,3 million) and 47% higher than in
the second half of last year (R11,09 million). Profit before taxation dropped
slightly (5%) from the comparative trading period, mainly as a result of
start-up losses at the new (Nutrex) animal feed mill at Umlaas Road,
KwaZulu-Natal, which was commissioned in September 2000.
Profitability in the layer (Hy-Line SA) section of the genetics division
remains disappointing. This situation will only be corrected once the breeder
facilities expansion programme is complete. Conversely, profitability in the
broiler section was particularly encouraging, especially in the foreign
operations.
The animal health division (National Veterinary Supplies), exceeded all
expectations by increasing market share in sub-Saharan Africa and extending its
export drive into the Middle and Far East.
The R29 million expansion during the year to September 2001 - on the feed mill,
layer division breeding farms and broiler chick hatchery facilities - resulted
in higher depreciation and finance costs compared with the corresponding period
in 2000.
The tax rate, provided at 33% of pre tax income (2000: 29%), is higher owing to
the non-utilisation of trading losses at the feed mill as the group,
conservatively, does not recognise deferred tax assets from trading losses,
which could be used to reduce the tax charge.
Attributable earnings, although 17% down on the corresponding period, are
nevertheless 130% up on the preceding six months.
Financial position
In order to consolidate its position, the group limited capital expenditure in
the six-month period to R2 million, and will continue to do so over the next
six months to further reduce the debt to equity ratio - which declined to 67,9%
from 76,5% at the year-end. The expansion into the feed milling business has
resulted in increased utilisation of working capital.
The net asset value of the company has increased to 226 cents per share
(September 2000: 209,6 cents).
Prospects
The recovery in the broiler market, which has resulted in the maximisation of
hatchery facilities, allows for guarded optimism. The Nutrex milling division
has traded profitably in recent months - and should continue to do so into the
foreseeable future - while National Veterinary Supplies is expected to make
significant contributions.
We do not anticipate any short term improvement from Hy-Line SA.
Collectively, the National Chick Group should perform well in the second half
of 2001.
Strate
The dematerialisation date for shares was 7 May 2001. Shareholders are
encouraged to submit their paper share certificates to a CSDP as soon as
possible.
By order of the board
M Walne JRM Bowmaker
Executive Chairman Company Secretary
11 May 2001
Registered office: Deverton Estates, District Road D234, Umlaas Road 3730 (PO
Box 105, Umlaas Road 3730)
Transfer secretaries: Computershare Services Limited, 2nd Floor, Edura, 41 Fox
Street, Johannesburg 2001 (PO Box 61051, Marshalltown 2107, RSA)
Directors: M Walne* (Chairman), GA Cawood CA(SA), JB Edmondson*, JH Gray, JAS
Pembridge, HG Syme *British
Company secretary: JRM Bowmaker CA(SA)
