| Fri 29 Jun 2001, 0:00 | | Mathomo Group Limited - Interim Report |
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Mathomo Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1995/004783/06)
("Mathomo")
Interim report for the six months ended 31 March 2001
Consolidated income statement
Unaudited Unaudited Audited
Six months Six months to Year ended
31 March 31 March 30 September
2001 2000 % 2000
R000's R000's Change R000's
Turnover 107 950 130 397 (17) 202 506
Earnings before
finance costs and
depreciation 3 546 3 537 11 939
Net finance costs (5 765) (6 698) (14) (5 468)
Depreciation (1 420) (1 851) (23) (2 547)
Net (loss)/income
before exceptional
item (3 639) (5 012) (27) 3 924
Exceptional item - - (20 952)
Net loss before
taxation (3 639) (5 012) (17 028)
Taxation (41) (689) (735)
Retained loss for
the period (3 680) (5 701) (35) (17 763)
Deficit per share
(cents) (5,1) (7,9) (35) (24,5)
Headline (deficit)/
earnings (3 680) (5 701) (35) 3 189
Weighted number of
shares in issue
(000's) 72 583 72 583 72 583
Headline (deficit)/
earnings per share
(cents) (5,1) (7,9) (35) 4,4
Consolidated balance sheet
Unaudited Unaudited Audited
31 March 31 March 30 September
2001 2000 2000
R000's R000's R000's
ASSETS
Non-current assets 26 588 28 975 23 758
Property, plant and
equipment 18 520 27 571 18 124
Investments 8 068 1 404 5 634
Current assets 132 887 164 517 129 573
TOTAL ASSETS 159 475 193 492 153 331
EQUITY AND LIABILITIES
Capital and reserves 38 929 54 671 42 609
Ordinary share capital
and premium 106 074 106 074 106 074
Accumulated loss (67 145) (51 403) (63 465)
Non-current interest
bearing liabilities 10 076 14 474 11 853
Current liabilities 110 470 124 347 98 869
Interest bearing
liabilities 73 511 73 669 62 967
Non-interest bearing
liabilities 36 959 50 678 35 902
TOTAL EQUITY AND
LIABILITIES 159 475 193 492 153 331
Net asset value per
share (cents) 53,6 58,7
Summarised cash flow
Unaudited Unaudited Audited
31 March 31 March 30 September
2001 2000 2000
R000's R000's R000's
Cash generated
from/(utilised in)
operating activities 1 738 (10 321) 16 966
Cash generated
from/(applied to)
investing activities 2 818 (2 317) (2 716)
Cash (applied to)/
generated from
financing activities (4 398) 8 476 (3 331)
Net cash inflow/
(outflow) 158 (4 162) 10 919
COMMENTS
FINANCIAL COMMENTARY
The period under review has been a difficult one in that the weak trend in
trading conditions within the economy has persisted from the previous year.
Recently published results of listed clothing retailers and clothing
manufacturing companies, bear testimony to just how difficult it has been in
this sector of the market. For all the reasons mentioned in the reports of
these companies and, indeed companies in many other sectors, consumer
spending, has been under extreme pressure, and has been severely diluted.
Within Mathomo group, the workwear and retail store divisions have performed
extremely well while the branded clothing division has been hampered by the
difficult trading conditions within the clothing sector. The Mathomo
Financial Services initiative has made major steps forward and should start
contributing positively in the near future.
When comparing the results to that of the same period last year, the
reduction in group turnover to R108,0 million (2000: R130,4 million) is due
to the closure of Eldon Stationery in July 2000, as part of the group
restructuring programme. Despite the drop in turnover, earnings (before
interest) from operations increased by 26%. The financing costs figure of
R5,8 million (2000: R6,7 million) is a factor of the Duchini and Eldon
closures and should be substantially reduced as and when the liquidation
dividends are received. The loss for the period has reduced to R3,7 million
(2000: R5,7 milllion) and the headline deficit per share has improved to 5,1
cents (2000: 7,9 cents).
PROSPECTS
Improved performance is expected from all trading divisions in the second
half of the year due to the seasonal nature of the group's trading.
Management is continuing to focus on organic growth with specific attention
paid to the dominant trading channels that the group enjoys in the mining
and energy sectors.
The institution of legal claims and recoveries in respect of Duchini are now
at an advanced stage.
The recently announced reduction in the interest rate will hopefully have a
positive effect on the economy and in particular the retail and clothing
sectors.
DIVIDEND
No interim dividend is proposed.
By order of the board
Johannesburg
29 June 2001
