| Fri 21 Dec 2001, 0:00 | | Conafex Holdings Societe Anonyme - Results For The |
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Conafex Holdings Societe Anonyme
(Incorporated in Luxembourg - RC Luxembourg No. B 17789)
Registered office
6 rue Adolphe Fischer, L-1520,
(PO Box 1361, L-1013)
Luxembourg
NATURE OF OPERATIONS
Conafex was reorganized in 1998 into a pan African agri-resource group
focused on horticulture, niche and value-added agriculture. A high
proportion of the Group's produce is exported. Currently, most of Conafex's
operations are located in Zimbabwe.
OVERVIEW
* All enterprises experienced a satisfactory agricultural season.
* Black tea production was at an all time high, but international prices
were lower than the previous year.
* Flue-cured Virginia tobacco had a bumper year.
* Following an orchard rehabilitation programme, deciduous fruit production
and quality improved
* Macadamia nut production is on the increase and for the first time made a
meaningful contribution.
* Poultry had an exceptionally good year.
* The off take of beef cattle was low due to a planned increase in the size
of the breeding herd.
* Coffee prices and production were low but citrus was considerably better
than the previous year.
* Flower prices in Europe were firm and offset disappointing production
yields.
* Profit margins in seed maize and wheat were unusually high.
* Operations did not suffer any financial prejudice as a result the current
land crisis in Zimbabwe.
FINANCIAL
Group profit arising from ordinary activities amounted to US$2,074,000
(2000: US$985,000). The contribution from our listed Zimbabwean associate,
Ariston Holdings, was outstanding. Profit attributable to shareholders
increased to US$2,103,000 (2000: US$ 1,841,000). The exceptional item
relates to the disposal of investments. Dividend remittances from
subsidiaries and associates have been satisfactory.
The Group's performance in 2001 has benefited materially in Zimbabwe from a
fluctuating premium paid above the official pegged Zimbabwe dollar exchange
rate on hard currency export receipts. This unusual situation did not
pertain in the previous year when there was no premium and the official rate
was also pegged. The official Zimbabwe/United States dollar exchange rate
has however been used in the Group's financial statements as the directors
are of the opinion that this is the most reliable published exchange rate
available at the present time.
PROSPECTS
The current agricultural season has had a normal start but generally many
commodity prices remain weak. The Group however is well hedged by virtue of
its crop diversity but remains vulnerable through its high exposure to
Zimbabwe and the inherent risks posed at present.
On 1st March 2001, Conafex acquired a 40% stake in Cape Natural Tea
Products, a company based in Cape Town, South Africa which processes and
markets rooibos, honeybush and other herbal teas. Performance since
acquisition has been on target and prospects for the current year and future
appear excellent. Conafex has also acquired a 40% interest in Accord
Services Limited with effect from 1st October 2001. Accord was established
in 1984 in the United Kingdom and fills a niche in the quality tea market
supplying over 80 different teas as well as unique packaging solutions to a
range of exclusive clients in Europe. Conafex has the right to increase its
stake over time.
The 50% interest in St James's Tea was disposed of during the year.
The Group continues to seek opportunities to broaden its regional and
product base through acquisitions. The strategic focus remains on export
related and value-added agricultural products.
DIVIDEND
The Directors consider it prudent to maintain a high dividend cover owing to
the need to conserve cash for future growth and to cover the uncertainty
prevailing in Zimbabwe. Accordingly, a dividend of US 1.5 cents per share
for the year ended 30th September 2001 is recommended to be paid on 3rd May
2002 to shareholders registered at the close of business on 28th March 2002.
Members will be offered the option of a scrip alternative to the cash
dividend.
M.W. BURRELL C.P. JOUSSE
CHAIRMAN MANAGING DIRECTOR
NOTICE OF MEETING
According to the Company's Articles of Incorporation ("Articles"), the
Annual General Meeting of Shareholder's ("AGM") is required to be held on
the last Friday in the month of March. The Articles further state that if
the AGM cannot take place on that date, it should take place on the first
preceding day. Because Friday 29th March 2002 is Good Friday, the AGM
should take place on Thursday 28th March 2002. However, as it will not be
possible for either the Chairman or any of the Directors to attend the
meeting in person and to properly present the Annual Report and Accounts to
the meeting on that date, it has been decided to bring forward the meeting.
Accordingly the Annual General Meeting will take place on Tuesday 26th March
2002 at 3.00 p.m. at the registered office of the Company, 6 rue Adolphe
Fischer L-1520 Luxembourg.
Consolidated Profit and Loss Account
FOR THE YEAR ENDED 30th SEPTEMBER 2001
Notes 2001 2000
US$000 US$000
Group revenue including
Associates 15,126 13,046
Less revenue of Associates (10,027) (7,861)
Revenue 5,099 5,185
Operating costs (4,791) (4,784)
Operating profit 308 401
Share of associated companies results 2,482 899
Income from investments - dividends 1 -
Interest receivable 54 19
Interest paid and similar charges (771) (334)
Profit on ordinary activities
before exceptional items and tax 2,074 985
Exceptional items 580 924
Profit before tax 2,654 1,909
Taxation on ordinary activities (550) (67)
Profit after tax 2,104 1,842
Minority interests (1) (1)
Profit attributable to
shareholders of the Group 2,103 1,841
Appropriation to legal reserve - -
Recommended dividend (172) -
Profit retained for the year 1,931 1,841
Earnings per share US cents 18.3c 8.0c
Headline earnings per share US cents 13.3c 16.1c
Dividend per share US cents 1.5c -
CONSOLIDATED BALANCE SHEET
AT 30th SEPTEMBER 2001
2001 2000
US$000 US$000
Assets
Non current assets
Property Plant & equipment 8,815 9,184
Investments 10,915 9,342
19,730 18,526
Current assets
Inventories 2,796 1,162
Accounts receivable 654 1,089
Cash and bank balances 560 431
4,010 2,682
Current liabilities
Creditors
(falling due within one year) (2,471) (1,487)
Net current assets 1,539 1,195
Total assets less current
Liabilities 21,269 19,721
Provision for liabilities
and charges
Creditors falling due after
more than one year (100) -
Deferred taxation (2,540) (2,532)
18,629 17,189
Capital and reserves
Called up share capital 16,744 16,744
Other reserves (4,290) (3,613)
Retained earnings 5,749 3,592
Shareholders' funds 18,203 16,723
Minority interests 426 466
18,629 17,189
Consolidated Cash Flow Statement
FOR THE YEAR ENDED 30th SEPTEMBER 2001
Notes 2001 2000
US$000 US$000
Cash Flows from
Operating Activities
Cash generated by/
(utilised in) operations 16(a) 190 (503)
Interest paid (161) (334)
Taxation paid (159) 8
Net cash outflow from
operating activities (130) (829)
Investment activities
Purchase of tangible assets (123) (117)
Purchase of investments (502) (1,627)
Disposal of tangible assets 18 1,394
Disposal of investments 1,246 535
(Increase)/Decrease in
amounts due by associated companies (62) -
Interest received and other
investment income 55 19
Dividends received from associates 297 227
Net cash inflow from investment
Activities 929 431
Net cash outflow before financing 799 (398)
Financing activities
Net increase in long term debt 100 -
Foreign exchange cost of
subsidiary's dividend (610) -
Dividend, net of scrip element - (90)
Net cash outflow from financing
Activities (510) (90)
Net increase/(decrease) in funds 289 (488)
Net cash at 1st October 19 401
Effect of foreign exchange rate changes 15 106
Net cash 30th September 323 19
Consolidated Statement of Recognised Gains and Losses
Surplus on revaluation of properties - 3,805
Reduction in interest in associate (42)
Exchange differences on translation
of the financial statements of
foreign entities (409) (2,828)
Net (loss)/gain not recognised
in the income statement (451) 977
Net profit for the period 2,103 1,841
Total recognised profit 1,652 2,818
Proposed dividend (172) -
Scrip dividend options exercised - 138
Increase in shareholders funds 1,480 2,956
Opening shareholders' funds 16,723 13,767
Closing shareholders' funds 18,203 16,723
Notes:
1. These preliminary results for the year ended 30th September 2001 and the
balance sheet at that date, which are unaudited, have been prepared on the
basis of accounting policies adopted for the period ended 30th September
2000. They comply with International Accounting Standards and Luxembourg
law. The results, which have been reviewed by the Company's auditors,
Deloitte & Touche S.A., are unaudited.
2. Capital expenditure during the period was US$123,000. At 30th September
2001, there were no outstanding capital commitments.
3. Bank loans and overdrafts of Z$13,045,000 (2000: Z$21,823,000) are
included in current liabilities.
4. Earnings per share are based on the results attributable to shareholders
and a weighted average number of shares in issue during the year -
11,484,127 (2000 - 11,467,594).
Group Offices
South Africa United Kingdom Zimbabwe
11 Sunbury Park, 25 City Road, 215 Fife Avenue/10th Street,
La Lucia 4051,Durban, London, (P.O. Box 2733),
(P.O. Box 4126, EC1Y 1BQ Harare, Zimbabwe
The Square,
Umhlanga 4320)
