| Fri 26 Oct 2001, 0:00 | | Natural Health Holdings Limited - Interim Results |
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31 August 2001
Natural Health Holdings Limited
INTERIM results
for the six months ended 31 August 2001
Consolidated income statement
Unaudited
Unaudited Pro forma Audited
6 months to 6 months to 18 months to
31 August 31 August 28 February
2001 2000 2001
R'000 R'000 R'000
Revenue 37 053 18 366 52 817
Operating profit (EBITDA) 3 928 5 447 14 984
Amortisation of goodwill (151) - -
Depreciation (714) (375) (1 051)
Operating profit
before interest (EBIT) 3 063 5 072 13 933
Net interest (paid)/
received (1 604) 971 2 970
Profit before
exceptional items 1 459 6 043 16 903
Exceptional gain/(loss) 3 500 (72) 7 106
Profit before taxation 4 959 5 971 24 009
Taxation (256) (1 639) 5 085
Profit after taxation 4 703 4 332 18 924
Attributable to
minority shareholders (301) (80) (157)
Profit attributable to
ordinary shareholders 4 402 4 252 18 767
Adjusted for exceptional
items after taxation (3 500) (59) (7 237)
Adjusted for
amortisation of goodwill 151 - -
Headline earnings 1 053 4 193 11 530
Headline earnings per
share - cents 0,58 2,6 7,1
Earnings per share - cents 2,4 2,6 11,5
Dividends per share - cents - 1,25 3,75
Weighted number of
shares in issue
- (000's) 200 835 160 848 163 223
Less: Number of
clawback shares
- (000's) (18 000) - -
Adjusted weighted
number of shares
in issue - (000's) 182 835 160 848 163 223
Consolidated balance sheet
Unaudited Reviewed Audited
31 August 31 August 28 February
2001 2000 2001
R'000 R'000 R'000
Assets
Non-current assets 13 428 5 056 11 055
Intangible assets 2 133 - -
Property, plant and
equipment 3 598 217 3 562
Deferred taxation 4 350 - 3 748
Investments and loans 3 347 2 839 3 745
Current assets 30 326 30 484 45 089
Inventory 14 053 3 150 13 491
Trade and other
receivables 10 666 1 710 12 390
Proceeds from sold
or discontinued
businesses - 785 7 500
Bank balances and cash 5 607 24 839 11 708
Total assets 43 754 35 540 56 144
Equity and liabilities
Share capital and
reserves 11 097 5 179 6 755
Vendor loans - 6 017 -
Minority interest 402 105 125
Total shareholders'
equity 11 499 11 301 6 880
Non-current liabilities 9 380 302 12 519
Interest-bearing debt 9 336 63 12 383
Deferred taxation 44 239 136
Current liabilities 22 875 23 937 36 745
Bank overdraft 178 - 1 095
Factoring creditor 2 375 - 6 179
Trade and other
payables 17 487 1 992 19 856
Vendor loans - 16 623 5 127
Taxation payable 2 835 3 318 2 393
Shareholders for
dividends - 2 004 2 095
Total equity and
liabilities 43 754 35 540 56 144
Net asset value per
share - cents 6,1 3,2 3,4
Fully diluted net asset
value per share - cents 6,1 6,6 3,4
Number of shares in
issue - (000's) 182 835 162 699 201 134
Diluted number of
shares in issue
- (000's) 182 835 170 433 201 134
Notes
1. Net interest paid is stated after deducting interest received of R217
866.
2. The group has no committed capital expenditure.
3. Accounting policies are in accordance with South African Statements of
Generally Accepted Accounting Practice. Accounting policies have been
consistently applied with the exception of goodwill which is now capitalised
and amortised.
4. The unaudited pro forma income statement reflects the comparative
reporting period extracted from the interim results reported for the twelve-
month period to 31 August 2000.
5. During the period 299 000 shares were cancelled and delisted.
6. The number of shares in issue, diluted number of shares in issue and
weighted number of shares in issue for the period under review have been
adjusted by 18 million clawback shares to be cancelled.
Consolidated summarised cash flow statement
Unaudited
Unaudited Pro forma Audited
6 months to 6 months to 18 months to
31 August 31 August 28 February
2001 2000 2001
R'000 R'000 R'000
Cash flows from
operating activities (2 391) 4 727 16 194
Taxation paid (508) (510) (7 199)
Dividends paid (2 095) (2 039) (6 413)
Cash flows from
investing activities 3 198 (946) (20 609)
Cash flows from
financing activities (3 488) 4 668 (479)
Net (decrease)/increase
in cash and cash
equivalents (5 284) 5 900 (18 506)
Cash and cash
equivalents at
beginning of period 10 613 18 939 30 093
Cash and cash
equivalents acquired
with subsidiaries 100 - (974)
Cash and cash
equivalents at end
of period 5 429 24 839 10 613
Statement of changes in equity
Non-
Distri- distri-
Share Share butable butable
capital premium reserve reserve Total
R'000 R'000 R'000 R'000 R'000
Balance at
28 February 2001 2 008 - 4 434 313 6 755
Attributable profit
for the period - - 4 402 - 4 402
Foreign exchange
translation reserve - - - (60) (60)
Balance at
31 August 2001 2 008 - 8 836 25 11 097
Exceptional items
Unaudited
Unaudited Pro forma Audited
6 months to 6 months to 18 months to
31 August 31 August 28 February
2001 2000 2001
R'000 R'000 R'000
Write back of
investment in
Coronet Equities
(Pty) Limited 3 500 - 7 500
Reversal of impairment
- land and buildings - 365 583
Provision for non-recovery
- loan to share trust - - (540)
Cost of fundamental
reorganisation - (437) (437)
Exceptional gain/(loss) 3 500 (72) 7 106
Segmental analysis
Healthcare* Cosmetics
Unaudited Unaudited
6 months to 6 months to
31 August 31 August
2001 2001
R'000 R'000
Revenue 17 828 19 225
Operating profit (EBITDA) 3 900 28
Total assets 19 960 23 794
Total liabilities
(excluding inter-group) 7 477 24 778
*Incorporating group head office.
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, Avid Brands, Nature's Dispensary, Physician's Own and
Global Nutritional Manufacturers; and
a distributor of fragrances and cosmetics through Campbell & Thiselton
Group for principals including Calvin Klein, Boucheron, Jeanne Arthes,
Guinot, Iman, Juvena, La Prairie, Diesel, Police, Pino Silvestre, Orlane,
Pier Auge, Ted Lapidus, Chlo and Nautica.
NHH is quoted in the Healthcare sector of the JSESecurities Exchange South
Africa ("JSE").
Interim results
The results for the six months were below expectations with operating profit
of R3,1 million earned on revenue of R37,1 million. Headline earnings per
share were 0,5 cents.
The results reflect the soft retail demand in both the healthcare and beauty
sectors. The trading cycle of the cosmetics operation also affected earnings
negatively on a comparative basis.
The exceptional gain arises from an amount recovered from the insurers in
respect of Coronet Equities (Pty) Limited.
Growth strategy
- During the period the group acquired Avid Brands (Pty) Limited, a
marketing and sales orientated company focussed on individual brand
development specific to the retail healthcare sector.
- The group increased its interest in NutriHealth International Limited to
60%.
- The group's international operation is expanding steadily with additional
master franchise agreements having been signed for Russia, Argentina and
Brazil.
Campbell & Thiselton Investment Holdings (Pty) Limited ("C&T")
Pursuant to the acquisition of C&T on 28 February 2001, the group retained
clawback rights against a portion of the consideration shares issued,
depending on the achievement of profit warranties. The clawback process has
now been completed and 18 million shares will be returned for cancellation.
Dividend
The group will consider an annual dividend at the end of the financial year.
Cautionary announcement
Shareholders' attention is drawn to the cautionary announcement published on
15 October 2001. A further announcement is expected early in November 2001.
Prospects
NHH intends to expand its local alternative healthcare operations by
improving the balance between its multi-level and wholesale business units.
Its fragrance and cosmetics division is expected to benefit from a re-
organisation presently being implemented to align its delivery and marketing
systems more closely with its target markets.
Internationally NutriHealth continues to expand its franchise operations
which should benefit the group through fees and purchases of product from
its manufacturing operations.
Overall headline earnings per share for the year are expected to be below
the annualised figure for the previous year but we are confident of positive
growth prospects thereafter.
For and on behalf of the board
Ian Deetlefs Kim Talmage Trevor Wall
Chairman Joint chief Joint chief
executive officer executive officer
Midrand
26 October 2001
Natural Health Holdings Limited
(Registration number 1998/007365/06)
("NHH" or "the group")
Alpha code: NTL
ISIN number: ZAE 0000 22638
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 ++Company secretary
Registered address: Natural Health Place, Howick Mews, Waterfall Park,
Midrand 1685. (PO Box 3174, Midrand 1685).
