| Fri 7 Sep 2001, 0:00 | | Excellerate Holdings Limited - Results For The Twe |
|
2001
(formerly CedarGro Holdings Limited
registration number 1997/009884/06)
Share code: EXL ISIN code: ZAE000026092
RESULTS FOR THE TWELVE MONTHS ENDED 30 JUNE 2001
- Headline earnings per share up 650%
- Earnings per share up 575%
- Turnover and operating profit up dramatically
- Cash resources considerably increased
- Acquisitions performed well above expectations
INTRODUCTION
With effect from 4 September 2000, CedarGro Holdings Limited changed its
name to Excellerate Holdings Limited ("Excellerate"). The name derives from
the word "excellent" and depicts delivery and excellence in a fast, focused
fashion.
Excellerate changed its year-end to June and its first reporting period was,
therefore, for the nine-month period from 1 October 1999 to 30 June 2000.
These results represent the first full twelve-month period under the new
executive team, which was appointed shortly before the change of year-end in
June 2000.
As the previous reporting period was for nine months and did not include any
new acquisitions, comparisons besides headline earnings per share, earnings
per share and return on funds invested are not considered meaningful.
YEAR UNDER REVIEW
Market conditions
The South African economy is currently in a low growth trough, which
especially impacts upon the retail sector.
Financial overview
Against this tough trading environment, Excellerate managed to achieve its
primary operational objectives and posted strong results. To ensure
competitiveness, the group was streamlined and refocused into two groupings,
Services and Trading-Distribution. New acquisitions were bedded down and
enhanced.
Headline earnings per share have increased by 650% and earnings per share
have increased by 575%. There has also been a massive turnaround in return
on funds invested. Turnover, operating profit and cash resources have all
increased considerably, mainly due to acquisitions, organic growth and
attention to measuring, controlling and improving the return on funds
invested.
We believe the strong results are clear indicators that the group's strategy
is sound and its turnaround sustainable.
Operational review
Excellerate's strategy is to invest in businesses that focus on services,
trading and distribution, with the emphasis on customer-centricity and
specialised markets.
Decentralisation, coupled with strong incentive programmes, encourages
management to express dynamic entrepreneurial skills, which creates
innovation and a competitive advantage usually found in small companies or
family businesses.
This philosophy has enhanced management capabilities and has changed the way
the group does business.
Acquisitions
In the period under review, two new acquisitions were made.
In July 2000, Excellerate acquired Sterikleen, a company that specialises in
cleaning, washroom hygiene, pest control and hospitality services.
In October 2000, Excellerate acquired Interpark, a company specialising in
parking and related security services. Both new acquisitions form part of
the ExcellServ division of Excellerate. Excellerate has already started to
improve Interpark by introducing two new divisions, SecuriPark and
ParkMedia.
The SecuriPark division specialises in security and security related
services within the carpark environment and ParkMedia specialises in
advertising within parking facilities to create ancillary income and
profitability within real estate environments.
Organic growth
The ExcellTrade division, which houses the Trading-Distribution grouping,
performed satisfactorily, given the state of the mass merchant retail sector
in which most of its current businesses operate. This was mainly due to
effective cost control and a strengthened management structure.
The ExcellServ division performed well above expectation as a result of
group synergies and input which involved rationalisation, cost-control,
cross-pollination of group services, such as cleaning and security.
PROSPECTS
During the period under review, the group focused on bedding down its
acquisitions, integrating cultures within the group and growing organically.
As a result, the new ExcellServ division is poised to grow both organically
and by acquisition. Management capabilities have been enhanced throughout
the group.
We will continue to focus on organic and acquisitive growth, as well as
further streamlining the group. These new initiatives will provide material
earnings growth in the year to come.
DIRECTORATE
During the period under review, Darren Pearlman resigned as Financial
Director in order to answer an unavoidable family calling to join the
family's business. Bruce Bernstein was appointed as the new Financial
Director. Bruce brings with him the unique combination of both
entrepreneurial and financial skills, having been involved in several
companies, both as an operator/trader and in the field of professional
financial management.
DIVIDEND
Excellerate's policy has been to declare dividends annually. The dividend
policy has been reviewed for this reporting period in light of the high
returns, which could be earned on profit retentions. Excellerate is
considering several enticing investment projects and, at this time, intends
to utilise funds for the purposes of financing selective acquisitions and
other growth in existing divisions. Accordingly, no dividend will be
declared for the twelve-month period ending 30th June 2001.
For and on behalf of the Board
L Rottanburg B Bernstein
Chairman Financial Director
7 September 2001
CONSOLIDATED INCOME STATEMENT
Audited Audited
12 months ended 9 months ended
30 June 2001 30 June 2000
R'000 R'000
Turnover
- continuing operations 219 352 100 399
- discontinued operations - 704
219 352 101 103
Operating profit
- continuing operations 15 152 4 015
- discontinued operations - (840)
Amortisation of trademarks (88) -
Amortisation of goodwill (2 010) -
Non-recurring items - (1 724)
Net income before interest and taxation 13 054 1 451
Net interest received/(paid) 827 (225)
Net income before taxation 13 881 1 226
Taxation (4 580) (420)
Net income after taxation 9 301 806
Attributable to minority shareholders (96) -
Attributable to ordinary shareholders 9 205 806
Shares in issue (000's) 184 762 138 095
Weighted average number of shares in issue
(000's) 171 436 138 095
Earnings per share (cents) 5,4 0,6
Annualised earnings per share (cents) 5,4 0,8
Headline earnings per share (cents) 6,0 0,6
Annualised headline earnings per share (cents) 6,0 0,8
Sustainable headline earnings per share (cents) 6,0 1,9
Annualised sustainable headline earnings per
share (cents) 6,0 2,5
Reconciliation of headline and sustainable
headline earnings:
Attributable to ordinary shareholders 9 205 806
adjust for:
- Amortisation of goodwill 2 010
- Net profit on sale of fixed assets (1 242) -
- Tax thereon 237 -
Headline earnings 10 210 806
adjust for:
- Discontinued operations - 840
- Non-recurring items - 1 724
- Tax thereon - (769)
Sustainable headline earnings 10 210 2 601
CONSOLIDATED BALANCE SHEET
Audited Audited
30 June 2001 30 June 2000
R'000 R'000
Assets
Non current assets 66 874 13 824
Fixed assets 7 842 3 078
Investments 270 -
Intangibles 48 717 -
Deferred taxation 10 045 10 746
Current assets 87 932 72 946
Liquid funds 25 765 3 619
Other current assets 62 167 69 327
Total assets 154 806 86 770
Equity and liabilities
Equity and reserves 99 256 63 584
Ordinary shareholders' interest 99 097 63 584
Outside shareholders' interest 159 -
Non current liabilities
Long term liabilities 1 601 550
Current liabilities 53 949 22 636
Other current liabilities 48 767 22 636
Amounts due to vendors 5 182 -
Total equity and liabilities 154 806 86 770
Net asset value per share (cents) 53,7 46,0
Net tangible asset value per share (cents) 27,4 46,0
Consolidated cash flow statement
Audited Audited
12 months ended 9 months ended
30 June 2001 30 June 2000
R'000 R'000
Cash generated by operations 30 696 3 107
Net interest received/(paid) 827 (225)
Taxation paid (31) (1 062)
Cash flow from operating activities 31 492 1 820
Cash flow from investing activities (37 262) 59
Cash flow from financing activities 27 700 (528)
Net cash resources retained 21 930 1 351
Foreign exchange gain 216 78
Net cash resources at beginning of period 3 619 2 190
Net cash resources at end of period 25 765 3 619
STATEMENT OF CHANGES IN ORDINARY SHAREHOLDERS' INTEREST
Ordinary Non-
Share Share distributable Retained
Capital premium reserve earnings Total
R000's R000's R000's R000's R000's
Balance at
30 September 1999 1 381 29 798 6 15 297 46 482
Prior year adjustment for
deferred taxation - - 11 165 (2 432) 8 733
Balance at 1 October 1999 1 381 29 798 11 171 12 865 55 215
Foreign currency translation - - 78 - 78
Net profit for the year - - - 806 806
Retribution for breach
of warranty - - 7 485 - 7 485
Balance at 30 June 2000 1 381 29 798 18 734 13 671 63 584
Shares issued(net of
expenses) 467 27 408 - - 27 875
Foreign currency translation - - 216 - 216
Net profit for the year - - - 9 205 9 205
Retribution for breach of
Warranty - - (1 783) - (1 783)
Balance at 30 June 2001 1 848 57 206 17 167 22 876 99 097
Headline earnings per share, Annualised operating profit and Annualised
turnover (See Press for details)
REGISTERED OFFICE:
Block F, Ground Floor, Pin Mill Farm, 164 Katherine Street, Sandown 2169. PO
Box 785448, Sandton 2146. Tel: (+27 11) 444-0474. Fax: (+27 11) 262-6280. E-
mail: lise@excellerate.co.za
DIRECTORS:
L Rottanburg (Executive Chairman), B Bernstein, H Bloch, D Jacobson, J
Joseph, S Lewis*, Dr. D Molapo*, A Stewart (*Non-executive Director)
COMPANY SECRETARY:
ER Goodman Secretarial Services cc (represented by E Goodman). Ground Floor,
25 Rudd Road, Illovo 2196. Tel: (+27 11) 447-1713.
SHARE TRANSFER SECRETARY:
Computershare Services Limited, 2nd Floor, Edura House, 41 Fox Street,
Johannesburg 2001. PO Box 61051, Marshalltown 2107. Tel: (+27 11) 370-7700.
Fax (+27 11) 836-0792
