| Fri 15 Feb 2002, 0:00 | | Brandcorp Holdings Limited - Unaudited Results For |
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December 2001
Brandcorp Holdings Limited
Turnover up 17.7%
Headline earnings per share up 30.0%
Cash on hand up 28.8%
Net asset value per share up 17.6%
UNAUDITED RESULTS FOR THE 6 MONTHS ENDED 31 DECEMBER 2001
GROUP INCOME STATEMENT
31 Dec 2001 31 Dec 2000 % 30 June 2001
Unaudited Unaudited change Audited
R000 R000 R000
Turnover 287,477 244,174 17.7 490,134
Operating profit 23,286 20,751 12.2 40,002
Net interest received 485 1,547 2,277
Net profit before
taxation 23,771 22,298 4.5 42,279
Capital items
(as detailed below) - 2,550 2,242
Taxation (8,015) (7,403) (12,474)
-Current (5,221) (5,206) (9,950)
-Secondary tax on
companies (882) (713) (713)
-Deferred taxation (1,912) (1,484) (1,811)
Net profit after
taxation 15,756 17,445 32,047
Number of shares
in issue (000) 133,639 149,460 136,899
Weighted ave. no.
of shares (000) 134,602 164,840 152,916
Headline earnings
per share - cents 11.7 9.0 30.0 19.5
Earnings per
share - cents 11.7 10.6 10.3 21.0
Diluted earnings
per share - cents 11.5 10.5 9.5 20.7
RECONCILIATION OF HEADLINE EARNINGS
31 Dec 2001 31 Dec 2000 30 June 2001
Unaudited Unaudited Audited
R000 R000 R000
Net profit after taxation 15,756 17,445 32,047
Adjust for:
Capital items - (2,550) (2,242)
Profit on disposal
of investment - (560) (560)
Recovery of vendor claims - (1,990) (1,990)
Goodwill write-off - - 308
Headline earnings 15,756 14,895 29,805
ABRIGED GROUP BALANCE SHEET
31 Dec 2001 31 Dec 2000 30 June 2001
Unaudited Unaudited Audited
R000 R000 R000
ASSETS
Non - current assets 24,830 27,656 27,153
Tangible assets 13,764 14,080 13,904
Share incentive trust 742 1,012 1,012
Deferred taxation 10,324 12,564 12,237
Current assets 267,902 230,689 257,232
Inventories 115,269 92,971 106,533
Accounts receivable 123,043 114,779 103,664
Cash and cash equivalents 29,590 22,939 47,035
292,732 258,345 284,385
EQUITY AND LIABILITIES
Capital and reserves 198,288 188,569 193,947
Long term liabilities 7,201 8,433 7,296
Current liabilities 87,243 61,343 83,142
Non-interest bearing
liabilities 86,446 61,273 82,375
Interest bearing liabilities 797 70 767
292,732 258,345 284,385
Net asset value per
share - cents 148.4 126.2 141.7
SUMMARISED CASH FLOW STATEMENT
31 Dec 2001 31 Dec 2000 30 June 2001
Unaudited Unaudited Audited
R000 R000 R000
OPERATING ACTIVITIES (5,228) (7,049) 28,055
Operating profit before
working capital movements 24,452 21,906 42,678
(Increase) decrease in
working capital (23,445) (31,297) (9,657)
Net finance income 485 1,547 2,277
Capital items - 2,550 2,242
Taxation paid (6,720) (1,755) (9,485)
INVESTING ACTIVITIES (3,956) (23,449) (34,017)
Purchase of fixed assets (1,045) (9,026) (10,558)
Proceeds on disposal of
fixed assets 20 106 295
Ordinary shares repurchased (3,201) (14,200) (23,424)
Decrease (increase) in
loan to share trust 270 (329) (330)
FINANCING ACTIVITIES (8,261) (884) (1,324)
(Payment of) proceeds from
long term borrowings (65) 7,651 7,211
Dividends paid (8,196) (8,535) (8,535)
NET MOVEMENT IN
CASH RESOURCES (17,445) (31,382) (7,286)
Cash and cash equivalents
at the beginning of the year 47,035 54,321 54,321
Cash and cash equivalents
at the end of the year 29,590 22,939 47,035
STATEMENT OF CHANGES IN EQUITY
Share Share Accumulated Total
Capital Premium Profits
R000 R000 R000 R000
Balance at 30 June 2000 1,902 121,533 70,446 193,881
Net profit for the period - - 32,047 32,047
Shares repurchased (342) (23,082) - (23,424)
Dividend - - (8,557) (8,557)
Balance at 30 June 2001 1,560 98,451 93,936 193,947
Net profit for the period - - 15,756 15,756
Shares repurchased (33) (3,168) - (3,201)
Dividend - - (8,214) (8,214)
Balance at 31 December 2001 1,527 95,283 101,478 198,288
SEGMENTAL ANALYSIS
Turnover Operating Tangible Liabilities
Profit Assets
R000 R000 R000 R000
DIY, Tools & Hardware 176,657 15,329 156,385 41,523
House & Home 63,093 3,825 49,015 18,803
Leisure & Accessories 47,727 4,321 48,479 21,071
Other - (189) 28,529 13,047
Total 287,477 23,286 282,408 94,444
COMMENT
Brandcorp has once again delivered an excellent set of results for the 6
months ended
31 December 2001.
Turnover increased by 17.7% from R244.2m to R287.5m. Operating profit
increased by 12.2% from R20.7m to R23.2m.
Headline earnings per share increased by 30.0% from 9.0 cents per share to
11.7 cents per share and earnings per share increased by 10.3% from 10.6
cents per share to 11.7 cents per share.
The group balance sheet is sound with continued focus on working capital
management. Despite the fact that the group's working capital requirements
peak at December each year, cash balances remain substantial at R29.6m.
During the period the group repurchased 3 259 700 shares at a cost of R3.2m.
These interim financial statements have been prepared in accordance with
South African Statements of Generally Accepted Accounting Practice. The
accounting policies used in the preparation of these results are consistent
in all material respects with those used in the annual financial statements
for the year ended 30 June 2001.
DIVIDENDS
It is the group's policy to declare a single dividend at year end.
Accordingly no interim dividend is proposed.
PROSPECTS
The Directors are cautiously optimistic about the group's prospects for the
remainder of the financial year. Demand for the group's merchandise at the
start of 2002 has been encouraging.
Brandcorp's focus will remain on maintaining operating profit margins and
improving working capital management. Brandcorp's positive cash flow and
strong balance sheet will ensure that it will be able to take advantage of
opportunities that present themselves.
On behalf of the board
M Z LEVINE C S DATNOW
CHAIRMAN CHIEF EXECUTIVE
15 February 2002
Transfer Secretaries Secretary and Registered Office
Computershare Services Limited Light and Livingstone Financial
Services CC
4th Floor Edura House 3rd Floor, Palm Grove
41 Fox Street 196 Louis Botha Avenue
Marshalltown, Johannesburg, 2107 Houghton Estate, 2198
Directors
CS Datnow, L Freidus*, JD Goldberg, MZ Levine*, JC Livingstone*, HB Marcus,
JW Miller*, BD Taurog
(*Non-executive Director)
JSE Code: BRC ISIN No.: ZAE 0000 13611
These results can be viewed on our website: www.brandcorp.co.za
BRANDCORP HOLDINGS LIMITED
Incorporated in the Republic of South Africa
Registration number 1992/006647/06 ( "Brandcorp" or "the group")
