| Thu 30 Aug 2001, 0:00 | | Iliad Africa Limited - Unaudited Results For The S |
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2001
ILIAD AFRICA LIMITED
(Incorporated in the Republic of South Africa)
(Reg no 1997/011938/06)
SHARE CODE: ILA
ISIN CODE: ZAE000015038
COMMENTARY
The Group is pleased to announce its interim results for the period ended
30 June 2001.
NATURE OF BUSINESS
Iliad Africa focuses on the sourcing, distributing and retailing of ceramic
tiles and sanitaryware, bathroom fittings, hardware, building materials,
iron mongery and finished wood products.
Iliad has a 60% residential customer base, with the balance commercial.
Iliad is a well-established supplier in its niche markets and geographic
locations. Proven trading skills and the owner manager philosophy at
operational level have been positive contributors to Iliad's overall
success.
OPERATIONAL REVIEW
All four well-established operating divisions namely General Building
Materials, Ceramic Tiles, Boards and Iron Mongery, have performed in line
with Group budgets with the General Building Materials division showing
particularly good growth for the period under review. The Group has
continued to leverage and build on its brands namely The Knob & Knocker,
Ferreira's D cor World, The Tile Depot, Just Tiles, Citiwood, Rietpan and
Ferreira's Buildware.
The United Steel and Pipe forming operation was sold, as it did not fit the
Group strategy of focused trading. A loss of R800000 was incurred on
disposal. The Port Elizabeth plumbing operation was also closed.
TRADING ENVIRONMENT
The Group experienced a slow first quarter demand for commercial ceramic
tiles but the order book has dramatically increased for the second half.
FINANCIAL HIGHLIGHTS
Building on its previous successes Iliad Africa's turnover has increased to
R264 million (2000: R230 million) up by 14,7%.
The Group posted increased attributable profits of R9,6 million (2000: R8,7
million), and an earnings per share of 12,7 cents (2000: 10,6 cents).
The increased finance charges reflect monies paid to vendors in final
settlement during last year.
The Board's decision to utilise some of its improved cash flow for share
buybacks was justified.
The strong balance sheet reflects the Group's ability to meet future
operating commitments and to finance further share buybacks.
MANAGEMENT
The Group's decentralised owner manager philosophy has created a conducive
operating environment, with the Group retaining the services of all the
original vendors.
PROSPECTS
The company will continue with its stated strategy of purchasing its shares
on the JSE, until such time as its paper is re-rated, which will then
facilitate future acquisitive growth.
The trading environment is tight but sufficient opportunities exist to
ensure the full-year results reflect the half-year growth.
DIVIDENDS
In line with the Group's policy, no interim dividend has been declared.
On behalf of
the Board
Ralph Patmore
Chief Executive Officer
Neil Goosen
Financial Director
30 August 2001
Registered address First Floor East Block Pineslopes Office Park
c/o The Straight & Witkoppen Road Lonehill PO Box 2572 Honeydew 2040
Transfer secretaries Ultra Registrars (Pty) Limited
11 Diagonal Street Johannesburg 2001 PO Box 4844 Johannesburg 2000
ABRIDGED BALANCE SHEET
Unaudited Unaudited Audited
30 June 2001 30 June 2000 31 Dec 2000
R'000 R'000 R'000
ASSETS
Non-current assets
Tangible assets 12 361 12 742 14 494
Financial assets 4 973 265 306
Deferred tax 13 981 14 706 14 782
Current assets 194 986 184 643 175 600
Total assets 226 301 212 356 205 182
EQUITIES AND LIABILITIES
Capital and reserves 80 510 66 530 78 934
Interest-bearing non-current
Liabilities 956 2 024 1 574
Interest-bearing current liabilities 31 812 45 938 22 566
Non interest-bearing current
Liabilities 113 023 97 864 102 108
Total equity and liabilities 226 301 212 356 205 182
ABRIDGED INCOME STATEMENT
Unaudited Unaudited Audited
30 June 2001 30 June 2000 % 31 Dec 2000
R'000 R'000 change R'000
Turnover 264 052 230 218 15 518 995
Trading profit 12 714 13 762 35 600
Continuing operations 15 112 15 051 37 743
Terminated operations (2 398) (1 289) (2 143)
Exceptional items 1 599 - -
Finance charges (net) 1 911 1 415 3 644
Profit before taxation 12 402 12 347 31 956
Taxation 2 784 3 579 7 510
Earnings for the period 9 618 8 768 10 24 446
Number of ordinary
shares in issue 74 658 982 82 592 982 77 239 582
Weighted average
number of ordinary
shares in issue 75 490 880 82 592 982 81 778 873
Headline earnings per
ordinary share (cents) 13,8 12,2 13 32,5
Earnings per ordinary
share (cents) 12,7 10,6 20 29,9
Dividend per share (cents) 7,0
Headline earnings reconciliation
Earnings for the period 9 618 8 768 24 446
Exceptional item
Profit on sale of fixed assets (1 599)
Loss on terminated operations 2 398 1 289 2 143
Headline earnings for
the period 10 417 10 057 26 589
ABRIDGED CASH FLOW STATEMENT
Unaudited Unaudited Audited
30 June 2001 30 June 2000 31 Dec 2000
R'000 R'000 R'000
Cash flows from operating
activities 539 (26 597) 133
Cash utilised in investment
Activities (2 321) (2 354) (6 463)
Cash effect on financing
Activities (4 748) (4 676) (15 249)
Decrease in cash and cash
Equivalent (6 530) (33 627) (21 579)
Cash and cash equivalent at
beginning of period (15 893) 5 686 5 686
Cash and cash equivalent
at end of period (22 423) (27 941) (15 893)
STATEMENT OF CHANGES IN EQUITY
Stated Retained
Capital income Total
R'000 R'000 R'000
Balance at 1 January 2001 26 495 52 439 78 934
Dividend paid (5 302) (5 302)
Shares purchased per special
Resolution (2 740) (2 740)
Earnings for the period 9 618 9 618
Balance at 30 June 2001 23 755 56 755 80 510
SUPPLEMENTARY INFORMATION
30 June 2001 30 June 2000 31 Dec 2000
R'000 R'000 R'000
Tangible net asset value
per share (cents) 107,8 80,6 102,2
Capital expenditure (R'000) 2 336 2 445 6 847
Capital commitments (R'000)
- approved and contracted 1 606 1 750 200
- approved not contracted 558 1 664 4 500
Contingent liabilities (R'000) 5 403 3 202 4 803
Depreciation (R'000) 2 053 1 904 4 206
Citiwood
Rietpan Hardware & Building Supplies
Ferreira's Buildware
Ferreiras Decor World
The Tile Depot
Just Tiles
The Knob & Knocker
