| Tue 20 Nov 2001, 0:00 | | Sweets From Heaven Holdings Limited - Results |
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Sweets From Heaven Holdings Limited
Consolidated Income Statement for the year ended 28 February 2001
Audited 2001 2000
R'000 R'000
Notes
Revenue 44,470 50,287
Profit from operations 1,665 957
Net interest paid (1,558) (3,407)
Foreign exchange loss 0 (59)
Headling earnings/(loss) 107 (2,509)
Exceptional item 1 (7,833) (801)
Loss before taxation (7,726) (3,310)
Taxation 2 (954) 0
Retained loss for the
Year (8,680) (3,310)
Headline earnings/(loss)
per share(cents) 0.10 (3.10)
Loss per share (cents) (10.90) (4.10)
Shares in issue (000's) 79,795 79,795
Weighted number of
shares in issue (000's) 79,795 79,795
Consolidated Balance Sheet
As at 28 February 2001
Audited 2001 2000
R'000 R'000
Assets
Non-current assets 10,149 17,327
Fixed Assets 6,292 8,195
Investment in associate company 151 0
Employee share incentive scheme 53 88
Investment in USA 3,653 9,044
Current assets 4,582 14,286
Inventories 2,317 3,794
Trade and other receivables 1,644 3,991
Cash and cash equivalents 3 621 6,501
Total assets 14,731 31,613
Equity and liabilities
Capital and reserves 1,439 1,755
Issued capital 20,213 20,213
Accumulated loss (27,138) (18,458)
Subordinated interest free shareholders
Loans 8,364 0
Non-current liabilities 6,493 15,909
Interest-bearing borrowings 3,705 14,499
Non interest-bearing borrowings 2,788 1,410
Current liabilities 6,799 13,949
Non-interest bearing borrowings 3,762 5,443
Interest bearing borrowings 3,037 8,506
Total equity and liabilities 14,731 31,613
Notes
1. Exceptional items comprise the writedown
of the USA investment to tangible NAV as well
as the costs of withdrawing from the Australian
operation.
2. Taxation has been raised in respect of
revised assessments issued by SARS to which
the group has objected.
3. Cash equivalents of 5,9m pledged as
security to Investec S.A. against the Investec
Australia loan were utilised to settle this
liability in line with the board's decision
to exit that country.
Abridged Cash Flow Statement
For the year ended 28 February 2001
Audited 2001
R'000
Cash flow from operating activities 1,299
Cash flow from investing activities (6,096)
Cash flow from financing activities (315)
Net decrease in cash and cash equivalents (5,112)
Cash and cash equivalents at beginning of the
Year 4,046
Cash and cash equivalents at end of the year 1,066
CHAIRMAN'S REPORT
Period under review
This period is characterised by a number of significant factors, namely:
* The disappointing performance of our offshore investments in USA and
Australia.
* The satisfactory and profitable performance of the local operations.
* The enormous goodwill and support shown by the major creditors to the
group.
Although positive headline earnings were achieved for the year, the group
reported an increased loss per share for the period under review.
Commentary
The exceptional items of R7,8m comprise mainly of a write down of our
investment in Heaven USA due to losses incurred and the further costs
associated with the board's decision to exit completely from our Australian
business during the course of this year.
This is reflected in the lower turnover of R44m compared to R50m in year
2000 and a bigger overall loss of R8.6m as compared to the R3.3m of last
year.
But significantly the strong cash flows from local operations helped reduce
the group's interest paid from R3.4m to R1.5m. Profit generated
predominantly from onshore operations was R1.6m compared to R950k for the
year 2000. This enabled the group to report headline earnings of 0.1c per
share versus the headline loss of 3.1c per share of the prior year.
The Group has restructured its long term debt of R14m as follows:
* R8.4m in subordinated interest free shareholders loans, which are to be
converted to zero coupon redeemable preference shares
* R2.8m repayable in monthly instalments over a period of three years
commencing 1 November 2001 and bearing interest at prime less 1%.
* R2.8m interest free to 1 November 2004 and then repayable in monthly
instalments over a period of three years and bearing interest at prime less
1%.
As a result the balance sheet is much stronger and this reduced the Group's
interest bearing debt to equity ratio from 9.4:1 in 2000 to 4.2:1 in 2001.
Future prospects
The business is striving to get back to its healthy core operations. With
our exit from Australia, and reduced exposure in the USA, this, together
with the demonstrated support of our major creditors, will enable Heaven to
better meet its future challenges with renewed confidence and a sense of
purpose. In this regard, the directors are confident of restoring group to
profitability in the near future.
Directors
During the period under review, Selwyn Nathan and Khehla Mthembu resigned as
non-executive directors.
Dividends
No dividends are declared.
Laurie Davidoff
Chairman
June 5, 2001
