| Thu 31 May 2001, 0:00 | | Alliance - Audited Results |
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Alliance Pharmaceuticals Limited
(Incorporated in the Republic of South Africa)
(Registration number 1981/006145/06)
("Alliance" or "the company")
AUDITED RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2001
CONSOLIDATED INCOME STATEMENT
Year ended Year ended
28 February 29 February
2001 2000
Audited Audited
R000's R000's
Turnover 157 711 203 568
Continuing operations 157 711 143 192
Discontinued operations - 60 376
Operating profit/(loss) before
amortisation 1 925 6 190
Continuing operations 1 925 10 967
Discontinued operations - (4 777)
Amortisation of patents and
trade marks 580 580
Operating profit 1 345 5 610
Continuing operations 1 345 10 387
Discontinued operations - (4 777)
Net finance income/(costs) 40 (3 065)
Continuing operations 40 (861)
Discontinued operations - (2 204)
Profit before taxation 1 385 2 545
Continuing operations 1 385 9 526
Discontinued operations - (6 981)
Taxation 648 1 072
Profit after taxation 737 1 473
Profit attributable to minority
shareholders (30) (25)
Net profit attributable to members 707 1 448
Shares in issue (000's) 95 677 93 748
Weighted average number of
shares in issue (000's) 94 821 92 435
Earnings per share (cents) 0,7 1,6
Dividend per share (cents) - 3,0
ABRIDGED CONSOLIDATED BALANCE SHEET
28 February 29 February
2001 2000
Audited Audited
R000's R000's
Assets
Tangible fixed assets 8 137 9 382
Pharmaceutical registrations,
patents and trademarks 17 443 17 937
Deferred taxation 176 -
Other financial assets 35 426
Current assets 68 795 88 565
Inventories 33 059 28 727
Accounts receivable 29 167 40 494
Taxation 452 133
Bank and cash 6 117 19 211
Total assets 94 586 116 310
Equities and liabilities
Shareholders' interest 62 008 71 160
Outside shareholders' interest 203 173
Long-term liabilities 2 083 1 126
Interest-bearing 2 083 957
Non-interest-bearing - 169
Deferred taxation 712 1 160
Current liabilities 29 580 42 691
Interest-bearing 1 340 746
Taxation 221 1 192
Accounts payable 26 742 27 925
Bank overdraft 1 277 10 015
Shareholders for dividend - 2 813
Total equity and liabilities 94 586 116 310
Net asset value per share (cents) 64,8 75,9
ABRIDGED CONSOLIDATED CASH FLOW STATEMENT
Year ended Year ended
28 February 29 February
2001 2000
Audited Audited
R000's R000's
Cash generated from operations 10 072 35 013
Net interest received/(paid) 40 (3 065)
Taxation paid (2 259) (2 386)
Secondary tax on companies paid (310) (10)
Dividends paid (2 485) (800)
Net cash flow from operating
activities 5 058 28 752
Net cash flow from investing
activities (779) (7 313)
Net cash flow from financing
activities (8 635) (764)
Net increase/(decrease) in cash
and cash equivalents (4 356) 20 675
Cash and cash equivalents/
(overdrafts) at beginning of year 9 196 (11 479)
Cash and cash equivalents/
(overdrafts) at end of year 4 840 9 196
STATEMENT OF CHANGES IN EQUITY
Share
Share capital Non-
capital - "N" distribu- Distribu-
- ordinary ordinary Share table table
shares shares premium reserves reserves Total
R000's R000's R000's R000's R000's R000's
Balance at
1 March 1999 685 2 58 021 761 28 831 88 300
Change in
accounting policy (28) (659) (687)
Restated
balance 685 2 58 021 733 28 172 87 613
Capitalisation issue 1 919 1 919
Goodwill written off (16 215) (699) (16
914)
Share issue expenses (94) (94)
Net profit for the year 1 448 448
Dividends (2 812) (2 812)
Transfer from non-
distributable reserve (3) 3 -
Balance at 29
February 2000 685 2 43 631 31 26 811 71 160
Repayment of share premium
net of expenditure (10 112) (10
112)
Capitalisation issue 328 328
Share issue expenses (75) (75)
Net profit for the year 707 707
Transfer from non-
distributable reserve (3) 3 -
Balance at
28 February 2001 685 2 33 772 28 27 521 62 008
NOTES
1. Overview
Alliance continues to operate across healthcare and consumer personalcare
market sectors. The group has increased its focus towards the healthcare
sector, with particular emphasis on the manufacture of own brands and
products.
The group faced difficult trading conditions during the year, with increased
pressure on operating margins. The group is continuing with the
implementation of the structural changes previously mentioned. As part of
this programme, the group's sales, marketing and administration is now
centrally located at the head office in Village Main, Johannesburg and the
warehousing and distribution of the Consumer Division products has been
outsourced. This has created the opportunity to upgrade and relocate the
manufacturing facility of the Medical and Surgical Disposables Division to
the head office. These changes are expected to afford improved controls and
efficiencies and the relocation costs will be ultimately offset by the
savings in rentals once the present lease of the manufacturing facility
terminates in July 2002. The benefits of the aforementioned structural
changes are expected to be partially realised in the latter part of the 2002
financial year and more fully thereafter.
Earnings for the year take into account unforeseen costs associated with the
discontinued operations, which were not readily identifiable at the time,
amounting to approximately R1,4 million. The directors believe that the
costs associated with the discontinued operations have now been fully
accounted for.
The major accounting policies are consistent with those applied during the
previous year, except for trademarks and patents which were previously
reflected at cost and which are now amortised in order to comply with the
new changes to South African Statements of Generally Accepted Accounting
Practice. The change resulted in a negative effect on headline earnings of
approximately R580 000 for the year. The group does not amortise
pharmaceutical registrations as the directors believe that the group's
registrations do not have a limited lifespan. The value of pharmaceutical
registrations is assessed on a regular basis and any dimunition in value is
accounted for at the time of occurrence.
2.Prospects
The international partnerships being pursued by the Healthcare divisions are
nearing fruition, with a number of new products already in the process of
registration. These partnerships and their resultant new products are
expected to enhance Alliance's medium-term strategic plans, in addition to
contributing towards the realisation of the group's export opportunities.
3.STRATE
The dematerialisation of the company's shares under the STRATE electronic
settlement system took place on 26 March 2001. Paper scrip is no longer
accepted for settlement and shareholders who have not yet dematerialised
their shares are advised to appoint a Central Securities Depository
Participant (CSDP) as soon as possible.
4.Dividend
In order to preserve the group's cash resources, no dividend has been
declared for the year.
For and on behalf of the board
H R Levin M Gelbart
Chairman Chief Executive Officer
31 May 2001
Directors: H R Levin* (Chairman), M Gelbart (Managing),
J E Forman, R T Ririe*, Dr H A Serebro* (*Non-executive)
Transfer Secretaries: Mercantile Registrars Ltd, 11 Diagonal Street,
Johannesburg, 2001 (PO Box 1053, Johannesburg, 2000)
Company Secretary: Executive Secretarial Services CC,
PO Box 261269, Excom, 2023
