| Wed 16 May 2001, 0:00 | | Chet Industries Limited - Interim Results |
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(Registration Number 1997/013498/06)
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INTERIM RESULTS
For the six months ended 28 February 2001
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INTRODUCTION
Difficult trading conditions persisted during the half-year with continuous
pressure on margins.
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REVIEW OF OPERATIONS
Chet Chemicals has made satisfactory profits in difficult trading conditions
and continues to broaden its product offering locally and internationally.
The cosmetics and toiletries division continues to invest in the future by
developing ranges of both toiletries and cosmetics. It is expected that
these product launches will reach the market by the end of the calendar
year.
To date losses in this division have been incurred due in the main to the
long lead times, which were underestimated, from conceptualisation to
delivery of ranges. However, once the first ranges are launched, those
following will result in a continuous supply of ever changing merchandise to
meet consumer demand.
The manufacturing facility has been fully accredited by major customers and
technical skills have been further enhanced, enabling it to fulfil all
customer requirements.
The industrial division has performed poorly in difficult trading conditions
and the board is considering whether this division fits the future strategic
vision for the Group.
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DIVIDENDS
It is the company's policy to consider a dividend once a year in line with
the annual results.
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STRUCTURE
Following the change in control and mandatory offer to minorities, Chester
Investment Holdings Limited now owns 60,78% of the Group's equity.
Accordingly the financial year end has been changed to 31 December each
year.
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PROSPECTS
The chemicals division will continue to develop further off its stable base.
A potential for substantial increase in profitability lies in the cosmetics
and toiletries division, which has now entered the market place and the
directors are optimistic for the future growth and development of the Group.
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Group Balance Sheet
28 Feb 2001 29 Feb 2000 31 Aug 2000
(R'000) Unaudited Unaudited Audited
Assets
Non-current assets 28,896 28,324 30,395
Property, plant
and equipment 23,438 20,983 24,091
Deferred taxation 5,458 7,341 6,304
Current assets 82,210 80,199 82,224
Inventory 35,709 29,647 32,265
Trade and other
receivables 45,661 50,494 49,689
Taxation in
advance 816 - 243
Cash resources 24 58 27
Total assets 111,106 108,523 112,619
Equity and
liabilities
Capital and
reserves 61,088 59,365 58,698
Non-current
liabilities 34 98 61
Interest bearing
debt 34 98 61
Current
liabilities 49,984 49,060 53,860
Trade and other
payables 36,742 40,986 45,978
Short term debt
including bank
overdrafts 13,242 8,074 7,882
Total equity and
liabilities 111,106 108,523 112,619
Net asset value
per share (cents) 32,7 31,8 31,4
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Group Statement of Changes in Equity
28 Feb 2001 29 Feb 2000 31 Aug 2000
(R'000) Unaudited Unaudited Audited
Capital and
reserves
Share capital 31,868 1,868 1,868
Share premium 31,958 32,179 31,958
Balance at
beginning of year 31,958 32,746 32,746
Goodwill and
trademarks set off - (567) (788)
Accumulated profit 27,262 25,318 24,872
Balance at
beginning of year 24,872 21,651 20,637
Balance at
beginning of year
as previously
reported 24,872 12,655 20,637
Change in
accounting policy - 8,996 -
Attributable
profit for the
period 2,390 3,667 4,235
Total capital and
reserves 61,088 59,365 58,698
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Abridged Group Cash Flow Statement
Six months Six months Year
ended ended ended
28 Feb 2001 29 Feb 2000 31 Aug 2000
(R'000) Unaudited Unaudited Audited
Cash flow from
operating
activities (4,609) 120 4,220
Cash utilised by
investing
activities (729) (10,012) (13,914)
Cash flows from
financing
activities (26) (91) (159)
Net decrease
in cash resources (5,364) (9,983) (9,853)
Cash resources at
beginning of
period (7,769) 2,084 2,084
Cash resources at
end of period (13,133) (7,899) (7,769)
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Group Income Statement
Six months Six months Year
ended ended ended
28 Feb 2001 29 Feb 2000 31 Aug 2000
(R'000) Unaudited Unaudited Audited
Revenue 151,117 153,616 297,475
Operating profit 4,161 5,134 6,665
Net finance
(cost)/income (706) 260 (560)
Profit before
taxation 3,455 5,394 6,105
Taxation 1,065 1,727 1,870
Attributable
profit 2,390 3,667 4,235
Weighted average
number of shares
in issue (`000) 186,778 186,778 186,778
Earnings per share
(cents) 1,3 2,0 2,3
Headline earnings
per share (cents) 1,3 2,6 2,9
NOTE
Determination of
headline earnings 2,390 4,806 5,374
Attributable
profit 2,390 3,667 4,235
Redevelopment
costs - 1,627 1,139
Tax on
redevelopment
costs - (488) -
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For and on behalf of the Board
MZ Levine - Chairman
MR Kessler - Chief executive
Directors: MZ Levine (Chairman)* MR Kessler (Chief Executive) AS Bloom GL
Christiane LF Christiane (Alternate)* FJ de Klerk L Freidus* LM Kessler P
Vallet*
*Non-executive
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Registered Office: 40 Steel Road Spartan Industrial Township PO Box 257
Kempton Park 1620
Website: www.chetind.com
