| Thu 31 May 2001, 0:00 | | Natural Health Holdings Limited - Audited Results |
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(Formerly Coronet Capital Limited)
(Registration number 1998/007365/06)
("NHH" or "the group" or "the company")
audited results FOR THE 18 MONTHS ENDED 28 FEBRUARY 2001
CONSOLIDATED INCOME STATEMENT
Restated
18 months to 12 months to
28 February 31 August
2001 1999
R'000 R'000
Revenue 52 817 45 315
Operating profit before
depreciation 14 984 11 828
Depreciation (1 051) (867)
Operating profit 13 933 10 961
Net interest received 2 970 5 474
Profit before exceptional items 16 903 16 435
Exceptional gain/(loss) 7 106 (9 562)
Profit before taxation 24 009 6 873
Taxation 5 085 5 035
Profit after taxation 18 924 1 838
Attributable to minority
shareholders (157) -
Profit attributable to
ordinary shareholders 18 767 1 838
Adjusted for exceptional
items after taxation (7 237) 9 562
Headline earnings 11 530 11 400
Headline earnings per
share - cents 7,1 7,4
Earnings per share - cents 11,5 1,2
Dividends per share - cents 3,8 1,5
Weighted number of shares
in issue (000's) 163 223 154 117
CONSOLIDATED BALANCE SHEET
Restated
28 February 31 August
2001 1999
R'000 R'000
Assets
Property, plant and equipment 3 562 4 088
Non-current assets 7 493 1 820
Loan to share trust 3 445 558
Deferred taxation 3 748 -
Investments and loans 300 1 262
Current assets 45 089 45 316
Inventory 13 491 1 984
Receivables 12 390 1 770
Proceeds from sold or discontinued
financial businesses 7 500 11 469
Cash at bank 11 708 30 093
Total assets 56 144 51 224
Equity and liabilities
Share capital and reserves 6 755 4 730
Vendor's loans to be
converted to equity - 11 018
Outside shareholders' interest 125 -
Shareholders' funds 6 880 15 748
Deferred taxation 136 68
Interest-bearing debt 19 139 226
Amounts due to vendors 5 127 24 620
Bank overdraft 1 095 -
Accounts and other payables 19 279 3 625
Taxation 2 393 4 575
Shareholders for dividend 2 095 2 362
Total equity and liabilities 56 144 51 224
Net asset value per share - cents 3,4 10,0
Fully diluted net asset value
per share - cents 3,4 9,2
Number of shares in issue - (000's) 201 134 157 483
Diluted number of shares in
issue - (000's) 201 134 170 433
Notes
1. Net interest received is stated after deducting interest paid of R360
036.
2. The group has no committed capital expenditure.
3. There has been no change in accounting policies from the previous year.
Accounting policies are in accordance with South African Statements of
Generally Accepted Accounting Practice.
CONSOLIDATED SUMMARISED CASH FLOW STATEMENT
Restated
18 months to 12 months to
28 February 31 August
2001 1999
R'000 R'000
Cash retained from
operating activities 16 194 15 763
Taxation paid (7 199) -
Dividends paid (6 413) (2 254)
Cash utilised in investing
activities (20 608) (72 700)
Cash effects of financing
activities (480) 86 861
Net (decrease)/increase in cash
and cash equivalents (18 506) 27 670
Cash and cash equivalents
at beginning of year 30 093 2 423
Cash and cash equivalents
acquired with subsidiaries (974) -
Cash and cash equivalents
at end of year 10 613 30 093
STATEMENT OF CHANGES IN EQUITYSTATEMENT OF CHANGES IN EQUITY
Distri- Non-distri-
Share Share butable butable
capital premium reserve reserve Total
R'000 R'000 R'000 R'000 R'000
Restated balance
at 31 August 1999 1 575 3 366 (524) 313 4 730
Attributable profit
for the period - - 18 767 - 18 767
Dividends - - (6 146) - (6 146)
Over issue of shares (3) (417) - - (420)
Proceeds on issue
of shares 436 20 471 - - 20 907
Goodwill written off - (23 420) (7 663) - (31 083)
Balance at
28 February 2001 2 008 - 4 434 313 6 755
EXCEPTIONAL ITEMS
Restated
18 months to 12 months to
28 February 31 August
2001 1999
R'000 R'000
Write back/(write off)
of Coronet Equities
(Pty) Limited 7 500 (15 457)
Loss on investments - (2 154)
Impairment adjustment
- land and buildings - (1 000)
Provision for non-recovery
- loan to share trust (540) (1 521)
Surplus on disposal of
financial sector subsidiaries - 10 570
Profit on sale of property 583 -
Reorganisation costs (437) -
Exceptional gain/(loss) 7 106 (9 562)
COMMENTS
Profile
NHH is an alternative healthcare, nutritional products and beauty group
which has two operations:
- a manufacturer, wholesaler and distributor of healthcare and nutritional
products in South Africa and internationally through Nutri Health, Natural
Health Supplements, Nature's Dispensary, Physician's Own and Global
Nutritional Manufacturers; and
- a distributor of fragrances and cosmetics through Campbell & Thiselton
Group ("C&T Group") for principals including Calvin Klein, Boucheron, Jeanne
Arthes, Guinot, Iman, Juvena, La Prairie, Marbert, Mary Cohr, Mavive,
Orlane, Pier Auge, Ted Lapidus, Chlo and Wet 'n Wild.
NHH is quoted in the Healthcare sector of the JSE Securities Exchange South
Africa ("JSE").
Comparative figures and presentation of results
NHH was previously listed as Coronet Capital Limited. The financial services
businesses of the group were discontinued or disposed of during the 1999
financial year to focus on the group's healthcare interests. Accordingly the
reported figures for the twelve months ended 31 August 1999 are not
comparable with the audited results presented for the eighteen months of
this financial year.
The C&T Group was acquired with effect on 28 February 2001. Accordingly, the
consolidated balance sheet includes C&T Group but the C&T Group's trading
figures are not included in the consolidated income statement.
Audited results
The results for the eighteen months were satisfactory with operating profit
of R13,9 million earned on revenue of R52,8 million. Headline earnings per
share of 7,1 cents were in line with projections.
Most of the exceptional gain arises from the recovery of the group's
investment in Coronet Equities (Pty) Limited, which is dealt with in more
detail below.
Coronet Equities (Pty) Limited
The group's investment in this company was written off in full at the end of
the previous financial reporting period and its affairs continue to be
administered and wound up by representatives of the JSE.
NHH agreed a settlement with the JSE on 29 May 2001 relating to the
distribution of the assets of Coronet Equities (Pty) Limited to the JSE and
the NHH Group after settling various creditors. This has given rise to the
recovery of R7,5 million referred to above which has now been received by
NHH and has been utilised to reduce borrowings.
The insurance claims of the JSE and of Coronet Equities are still in the
process of being finalised and submitted. Accordingly there may still be an
additional amount recoverable by the NHH Group.
Directorate
We are pleased to welcome two new directors to the NHH board - Trevor Wall
who is joint chief executive officer and MD of the group's fragrance and
cosmetic operations, and Paul Gray as a non-executive director.
Dividend
A final cash dividend of 1,25 cents per share was declared on 29 January
2001 to shareholders registered in the books of the company at the close of
business on 23 February 2001 and paid on 6 April 2001.
STRATE
Shareholders have been advised that the dematerialisation period applicable
to NHH commenced on 7 May 2001 with trading for electronic settlement on 28
May 2001, for settlement on 4 June 2001. As of 28 May 2001, no paper scrip
will be accepted for settlement. Shareholders are advised to acquaint
themselves with the requirements and implications of this change and to
consult their stockbroker, advisor or the company for assistance.
Strategy and operations
NHH acquired 100% of C&T Group with effect from 28 February 2001. This
acquisition will broaden the product base of the NHH Group in related
markets and enable cross-selling, group promotion and optimisation of
distribution channels for the enlarged group. NHH's alternative healthcare
operation continued to expand its business organically, by the establishment
of new franchisees and master distributors internationally, brand
development locally and acquisitions which enhance distribution channels.
The C&T Group will undergo a strategic review, aimed at increasing volumes
for new brands, market share for existing brands and potential acquisition
or merger opportunities.
Prospects
The group expects a weaker trading environment in the coming financial year
and it will take a period for the absorption of the new acquisitions to be
completed and expected synergies to develop.
The group is well placed for growth once market conditions improve and the
re-organisation is complete.
For and on behalf of the board
Ian Deetlefs
Chairman
Kim Talmage
Joint chief executive officer
Trevor Wall
Joint chief executive officer
Midrand
31 May 2001
Directors: I Deetlefs (chairman), KR Talmage (joint chief executive
officer), TN Wall (joint chief executive officer), PL Gray*, R Pleaner*, NN
Rodrigues, CS Seabrooke*, Dr GL Wenteler.
*Non-executive
Registered address: Natural Health Place, Howick Mews, Waterfall Park,
Midrand 1685. (PO Box 3174, Midrand 1685).
Transfer secretaries: Mercantile Registrars Limited, 10th Floor, 11 Diagonal
Street Johannesburg 2001. (PO Box 1053, Johannesburg 2000).
