| Mon 29 Oct 2001, 0:00 | | Kairos Industrial Holdings - Interim Results For T |
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KAIROS INDUSTRIAL HOLDINGS LIMITED
Incorporated in the Republic of South Africa. Reg no 1987/002927/06.
Share code: KIR. ISIN number: ZAE000011284
Interim results for the six months ended 31 August 2001
CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited Audited
Six months Six months 12 months
ended ended ended
31 August 31 August 28 February
R'000 2001 2000 2001
Turnover 21 247 3 904 45 218
Operating profit/(loss) 1 173 (1 715) 2 431
Interest on loan to joint venture - 2 256 -
Depreciation (1 469) (361) (3 036)
Finance cost (505) (588) (791)
Dividends 803 - 1 682
Profit/(loss) before taxation 2 (408) 286
Taxation - - -
Profit/(loss) after taxation 2 (408) 286
Equity accounted profit
joint venture - 249 -
Headline profit/(loss)
after taxation 2 (159) 286
Exceptional items
- Section 311 compromise benefit - - 1 071
- Legal settlement payment (250) - -
Net profit/(loss) attributable
to ordinary
shareholders (248) (159) 1 357
Number of shares on which
earnings per share
is based (000's) 252 085 98 224 252 085
Headline profit/(loss)
per share (cents) - (0,2) 0,1
Profit/(loss) per ordinary
share (cents) (0,1) (0,2) 0,5
CONSOLIDATED ABRIDGED BALANCE SHEET
Unaudited Unaudited Audited
31 August 31 August 28 February
R'000 2001 2000 2001
Assets
Non-current assets 32 517 35 773 33 284
Patents and intangibles 2 958 - 3 204
Property, plant and equipment 10 467 8 954 11 453
Investments 18 547 16 865 17 837
Investment in joint venture - 6 736 -
Other 545 3 218 790
Current assets 14 665 8 609 14 752
Inventories 5 699 1 386 5 732
Trade and other receivables 6 625 2 933 7 176
Cash and cash equivalents 2 341 4 290 1 844
TOTAL ASSETS 47 182 44 382 48 036
Equity and liabilities
Stated capital and reserves 26 947 2 758 27 195
Creditors for share issues - 9 943 -
Long-term interest bearing debt 550 1 090 976
Loan from controling shareholder 214 - -
Current liabilities 19 471 30 591 19 865
Trade and other payables 13 340 8 612 14 154
Interest bearing liabilities 5 871 21 676 5 406
Taxation 260 303 305
TOTAL EQUITY AND LIABILITIES 47 182 44 382 48 036
Shares in issue 252 085 98 224 252 085
Net asset value per
share (cents) 10,69 2,81 10,79
CASH FLOW STATEMENT
Unaudited Audited
31 August 28 February
R'000 2001 2001
Net cash flow from operating activities 145 11 197
Net cash flow from investment activities 99 (7 629)
Net cash flow from financing activities 253 (25 270)
Increase in stated capital - 22 920
Net increase/(decrease) in cash 497 1 218
Cash and cash equivalents at
beginning of period 1 844 626
Cash and cash equivalents at end of period 2 341 1 844
STATEMENT OF CHANGES IN EQUITY
Non-
Stated Retained distributable Capital and
R'000 capital losses reserve reserves
Balance at
28 February 2001 210 140 (184 148) 1 203 27 195
Movement for
the period - (248) - (248)
Balance at
31 August 2001 210 140 (184 396) 1 203 26 947
Overview
A strong focus on business operations continued in the six months under
review and cash flows remained positive. Kairos' core operations are stable
and their return to profitability is sustainable. Operations traditionally
experience significantly stronger second half performance than that of the
first half and it is anticipated that this trend will continue through the
remainder of this financial year.
Management has a 70% stake in the organisation, indicating their commitment
to continued profitability and growth. In addition to harnessing this
entrepreneurial spirit, group management is committed to building a
successful and sustainable business. This has meant that the group has taken
a long-term strategic view focusing on long-term goals, which are viewed as
far more important than short-term, and perhaps temporary, gains.
Operational review
Joint Venture - Brokrew
Brokrew manufactures and supplies ventilation equipment to the mining sector
and general industry. For the period under review, Brokrew increased
operating income to R1,33 million.
Witbank Brickworks
Witbank Brickworks produces a broad range of bricks for the trade and retail
markets. Despite tight market conditions, Witbank Brickworks remained
profitable, delivering an operating income of R529 000.
Survivair
Survivair manufactures specialised safety equipment and refuge chambers
which are supplied to the domestic and international mining industry. The
increase in safety standards in this industrial sector, as well as strong
offshore demand, have been positive for Survivair, with operating income
increasing to R266 000 compared to the previous year's loss of R255 000.
Witbank Coal Reserve
Negotiations and discussions are continuing in order to mine the total
Uitspan basin which has a mineable reserve calculated at some 10 million
tons.
Segmental analysis for the half year ended 31 August
2001 2000* %
R'000 Unaudited Unaudited Change
Revenue
Joint Venture - Brokrew 16 756 18 511 (9,5)
Witbank Brickworks 3 183 3 293 (3,3)
Survivair 1 280 156 720,5
Properties** 414 462 (10,4)
Inter Group eliminations (386) (7) -
21 247 22 415 (5,2)
2001 2000* %
R'000 Unaudited Unaudited Change
Operating and investment income
Joint Venture - Brokrew 1 332 249 434,9
Witbank Brickworks 529 640 (17,3)
Survivair 266 (255) n/a
Properties and other*** (954) (2 100) 54,6
Investment income 803 2 256 (64,4)
1 976 790 150,1
*These figures have been restated to conform to current period presentation.
** PROPERTIES, listed under revenue, refers to rental revenue and ***
PROPERTIES AND OTHER, under operating and investment income, refers to
operating income from property rentals but also includes other operating
losses. The decrease in investment income is mainly due to the change in the
basis of consolidation of the joint venture.
Financial
The results were prepared in accordance with statements of GAAP and are
consistent with the accounting policy of the company. Due to a change in the
basis of consolidation of Brokrew from the equity accounting method to
proportional reporting, and as the restating of the results in the
consolidated income statement and balance sheet for August 2000 would not be
meaningful, the figures for the period ended August 2000 are for statutory
purposes only.
The depreciation for the six months to August 2001 is in line with that for
the year ended February 2001.
The substantial increase in shares in issue is as a result of the debt to
equity conversion, discussed in detail in the 2001 annual report.
Prospects
Improved ratios of liquidity, gearing, cash, and the implementation of cost
and operational controls, provides the foundation for future growth.
In the next six months Kairos, together with the support of skilled
advisers, will focus on developing a strategy which will guide the group
towards vigorous, long-term, sustainable growth. It is our intent to
implement this strategy during the course of 2002.
For and on behalf of the board
L Jonker
Company Secretary
30 October 2001
Registered office
1111 Church Street, Hatfield 0083, Pretoria
PO Box 11328, Hatfield 0028, Pretoria
Tel: +27 (0) 12 342 1980, Fax: +27 (0) 12 342 1976
E-mail: info@kairos.co.za
Transfer secretaries
Mercantile Registrars Limited, 11 Diagonal Street, Johannesburg 2001
Directors
WL van Deventer (Executive Chairman), JJ de W Mulder, L Jonker,
CWJ Milligan (Non-executive)* * British
Visit us at www.kairos.co.za
