| Tue 20 Nov 2001, 0:00 | | Global Village - Interim Report 2001 |
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GLOBAL VILLAGE HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1997/017632/06)
Share code: GLL ISIN: ZAE000015426
INTERIM REPORT 2001
ABRIDGED CONSOLIDATED INCOME STATEMENT
Unaudited Audited
Six months ended Year ended
31 August 31 August 28 February
2001 2000 Change 2001
R'000 R'000 (%) R'000
Turnover 18 454 19 373 (4,7) 36 161
Earnings before interest,
tax, depreciation
and amortisation
(EBITDA) 2 386 2 361 1,1 5 126
Depreciation 1 054 1 085 2,9 2 170
Amortisation 528 526 (0,4) 1 053
Net interest paid 96 110 12,7 254
Net income before
taxation, extraordinary
and non-recurring items 708 640 10,6 1 649
Extraordinary and
non-recurring items 552
Net income before taxation 708 640 10,6 1 097
Taxation
Net income for period 708 640 10,6 1 097
Dividends - - -
Retained income for period 708 640 10,6 1 097
EBITDA (as a percentage
of turnover) 12,9 12,2 5,7 14,2
Earnings per share (cents) 0,8 0,7 14,3 1,2
Headline earnings
per share (cents) 1,3 1,2 8,3 2,9
Number of shares ('000) 94 000 94 000 94 000
Headline earnings are
determined as follows:
Attributable to ordinary
shareholders 708 640 1 097
Amortisation of
Intangible assets 528 526 1 053
Extraordinary and
non-recurring items - - 552
1 236 1 166 2 702
ABRIDGED CONSOLIDATED BALANCE SHEET
Unaudited Audited
Six months ended Year ended
31 August 31 August 28 February
2001 2000 2001
R'000 R'000 R'000
ASSETS
Non-current assets 39 091 39 506 38 933
Fixed assets 20 628 22 281 20 384
Goodwill and trademarks 17 701 17 225 18 010
Loan to share incentive scheme 762 - 539
Current assets 6 717 4 731 3 984
Inventory 205 238 317
Accounts receivable 1 969 2 156 1 314
Bank and call balances and cash 4 543 2 337 2 353
45 808 44 237 42 917
EQUITY AND LIABILITIES
Share capital and reserves 36 978 35 961 36 416
Total shareholders' funds 36 258 35 246 35 550
Settlement to vendors 582 664 627
Long-term liabilities 138 51 239
Current liabilities 8 830 8 276 6 501
Accounts payable 6 604 4 623 2 333
Taxation 2 226 3 653 4 168
45 808 44 237 42 917
Number of ordinary shares
issued ('000) 94 000 94 000 94 000
Net asset value per share (cents) 38,57 37,50 37,82
ABRIDGED CONSOLIDATED CASH FLOW STATEMENT
Cash flow from operating activities 4 076 766 1 985
Cash effects of investing activities (1 740) (145) (1 547)
Cash effects of financing activities (146) (523) (324)
Net increase in cash and cash
equivalents 2 190 96 114
Cash and cash equivalents at
beginning of period 2 353 2 239 2 239
Cash and cash equivalents of period 4 543 2 337 2 353
STATEMENT OF CHANGES IN EQUITY
for the six-month period ended 31 August 2001
Share Share Distributable
capital premium reserves Total
R'000 R'000 R'000 R'000
Balance at 1 March 2001 940 38 676 (4 066) 35 550
Retained income for period 708 708
Balance at 31 August 2001 940 38 676 (3 358) 36 258
COMMENTS
Operating Results
The directors are pleased to announce the results for the first half of
the year ended 31 August 2001.
These results show a small improvement to the bottom line over those for
the same period the previous year.
These consolidated interim financial statements were drawn up in
compliance with South African Statements of Generally Accepted Accounting
Practice and the company has complied with the requirements of the Companies
Act, 1973 (Act 61 of 1973), as amended.
The accounting policies as set out in the 2001 annual report have been
consistently applied in producing these results. During the previous
financial year the company changed its accounting policy regarding the
amortisation of intangible assets. This resulted in an additional charge of
R528 000 (2000: R526 000) to the Income Statement. The company changed its
accounting principals regarding the raising of depreciation and the
elimination of inter company charges on a monthly basis. This has resulted
in additional charges to the income statement of R1 517 000 (2000: R1 620
000). The comparative figures for 2000 have been restated accordingly.
Although turnover has declined, there has been an improvement in margins
reflecting the continued focus of management on improving operating
efficiency.
* The turnover decline has largely been a result of the shelving of Toys for
Boys as a stand-alone exhibition (used to take place in August).
* The decline in Food business Group sales.
* Market business group sales have been almost constant on the whole and the
International Fashion Sale stand sales and gate takings has even improved.
* More executive level management changes have occurred which has resulted
in a slightly smaller and more dynamic executive committee.
Future Prospects
* As for the half-year we expect to show similarly improved results for the
full year to February 2002 against last year.
* The Market at Montecasino launched on 4 November 2001 with over 450 stands
and over 35 000 people in attendance, making it one of the finest launches
in Global Village's history. Operating Saturday, Sunday and public holidays
in this prime location, we expect it to become South Africa's premier
weekend market before year-end.
* The International Fashion Sale in February 2002 is for the third year and
sixth show in a row since being acquired by Global Village, experiencing a
significant improvement in pre-bookings.
* New revised and tighter expenditure budgeting, a reduced head office size,
greater executive focus and a new CFO are expected to contribute to better
operating margins and net profit with positive cash flow.
* The continued extension of our share incentive scheme to directors and
executive committee should create increasing levels of commitment and
motivation. Next year we hope to extend this to staff, traders and
exhibitors.
Chief Executive's Note
Lately my focus on Global Village's business processes and senior
management performance has encouraged me to believe that our ace in the hole
is the unlocking of new improved levels of performance, focus on
competencies and reduced tolerance to under performance. Greater attention
to the quality of staff recruited is also expected to produce an improved
culture of delivery, and accountability to growing corporate value through
better operating results.
On behalf of the Board of Directors
Marc Israelsohn
Chairman and Chief Executive
20 November 2001
