| Tue 26 Feb 2002, 0:00 | | The House Of Busby Limited - Interim Results |
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The House of Busby Limited
Incorporated in the Republic of South Africa
Registration number 1997/009173/06
JSE Share code: BSB ISIN ZAE000013637
INTERIM RESULTS
for the six months ended 31 December 2001
GROUP INCOME STATEMENT
Six Six Year
months to months to ended
31 December 31 December 30 June
2001 2000 2001
Unaudited Percentage Unaudited Audited
R'000 change R'000 R'000
Turnover 145 171 217 031 371 540
Continuing operations 145 171 12,3 129 305 281 845
Discontinued operations - 87 726 89 695
Operating income 16 905 22 257 24 872
Continuing operations 16 905 0,4 16 833 23 414
Discontinued operations - 5 424 1 458
Net investment
income/(cost) 494 (303) (414)
Continuing operations 1 741 (7,1) 1 874 4 140
Discontinued operations (1 247) (2 177) (4 554)
17 399 21 954 24 458
Continuing operations 18 646 (0,3) 18 707 27 554
Discontinued operations (1 247) 3 247 (3 096)
Attributable to outside
shareholders 1 635 1 154 3 254
Net income before taxation 19 034 23 108 27 712
Continuing operations 20 281 (1,1) 20 501 29 570
Discontinued operations (1 247) 2 607 (1 858)
Taxation 3 902 3 886 4 472
Continuing operations 3 902 0,4 3 886 4 472
Discontinued operations - - -
Net income before
exceptional items 15 132 19 222 23 240
Continuing operations 16 379 (1,4) 16 615 25 098
Discontinued operations (1 247) 2 607 (1 858)
Exceptional items - 4 350 5 571
Provision for credit
permits - 4 350 6 214
Loss on discontinuance
of clothing divisions - - 2 487
Profit on sale of listed
investments - - (3 130)
Attributable to ordinary
shareholders 15 132 1,7 14 872 17 669
Weighted average number
of shares in issue ('000) 76 095 76 637 76 586
Headline earnings
per share (cents) 19,9 (20,7) 25,1 30,3
continuing operations 21,5 (0,9) 21,7 32,7
discontinued operations (1,6) 3,4 (2,4)
Earnings per share (cents) 19,9 2,6 19,4 23,1
Reconciliation of headline earnings
Six months Six months Year
to to ended
31 December 31 December 30 June
2001 2000 2001
Unaudited Unaudited Audited
R'000 R'000 R'000
Earnings per income statement 15 132 14 872 17 669
Add: Provision for credit permits - 4 350 6 214
Loss on discontinuance of
clothing divisions - - 2 487
Deduct: Profit on disposal of listed
investment - - (3 130)
Headline earnings 15 132 19 222 23 240
ABRIDGED GROUP CASH FLOW STATEMENT
Six months Six months Year
to to ended
31 December 31 December 30 June
2001 2000 2001
Unaudited Unaudited Audited
R'000 R'000 R'000
Cash generated by operations 20 320 18 482 25 224
Retained to finance working capital (40 115) (11 133) (6 754)
Investement income/(cost) 494 (303) (414)
Dividend paid (3 119) (1 497) (6 890)
Taxation paid (2 847) (2 418) (3 057)
Net cash (outflow)/inflow
from operating activities (25 267) 3 131 8 109
Cash outflow from
investing activities (996) (10 191) (11 376)
Cash outflow from financing
activities (34) (19 564) (16 966)
Decrease in cash and
cash equivalents for period (26 297) (26 624) (20 233)
Cash and cash equivalents
at beginning of period 8 945 29 178 29 178
Cash and cash equivalents
at end of period (17 352) 2 554 8 945
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' FUNDS
31 December 31 December 30 June
2001 2000 2001
R'000 R'000 R'000
Balance at beginning of period 212 842 199 332 199 332
Shares issued during the period - 5 392 2 731
Earnings for period 15 132 14 872 17 669
Less: Dividend paid (3 119) (6 890) (6 890)
Balance at end of period 224 855 212 706 212 842
GROUP BALANCE SHEET
31 December 31 December 30 June
2001 2000 2001
Unaudited Unaudited Audited
R'000 R'000 R'000
Assets
Non-current assets 73 843 75 307 75 682
Property plant and equipment 35 149 32 274 33 553
Intangible assets 2 737 3 220 2 898
Investments and non-
current receivables 26 132 28 200 28 512
Deferred tax 9 825 11 613 10 719
Current assets 189 591 192 379 172 089
Inventory 97 743 104 221 88 796
Receivables 91 848 85 604 74 348
Cash and cash equivalents - 2 554 8 945
Total assets 263 434 267 686 247 771
Equity and liabilities
Shareholders' funds 224 855 212 706 212 842
Long-term liabilities - 167 34
Net overdraft and cash equivalents 17 352 - -
Current liabilities 21 227 54 813 34 895
Total equity and liabilities 263 434 267 686 247 771
Tangible net asset value
per share (cents) 291,8 268,6 275,9
COMMENTS
EARNINGS
Trading conditions were difficult during the six months under review.
Turnover from continuing operations increased by 12,3% over the
corresponding period last year, while operating income from continuing
operations was marginally up at R16,9 million. Net income before tax from
continuing operations was in line with the same period last year, while
earnings attributable to ordinary shareholders was 2% above the previous
year. Headline earnings per share from continuing operations was in line
with last year, while earnings per share increased by just under 3%.
Although the discontinued operation contributed significantly to headline
earnings for the six months ended 31 December 2000, it made no positive
contribution for the full year ended 30 June 2001. The finance cost directly
attributable to the overdraft of the discontinued operation has been
disclosed separately for the current six months to enable meaningful
analysis and comparison to the previous financial period.
REVIEW OF ACTIVITIES
The difficult trading conditions experienced in the last six months of the
previous financial year continued for the period currently under review. In
light of these adverse conditions, both the distribution and retail
divisions of the group traded reasonably well. While turnover from
continuing operations showed a pleasing increase, the effects of the
devaluation of the Rand was felt in the lower margins achieved.
The impact of the devaluation of the Rand has also adversely affected the
investment required in working capital, with replacement stock being bought
at prices far exceeding previous levels.
PROSPECTS
While the trading for the first six months of the financial year was
reasonable, the outlook going forward remains tough and challenging. The
continued instability of the Rand remains a major concern for the group and
creates an ongoing element of uncertainty.
The group has entered into negotiations with an international eyewear group
regarding their local operations. The discussions are at an early stage and
no firm details are available at this stage. If the negotiations prove to be
successful, we do not expect a material impact on either earnings or net
asset value in the short to medium term.
Backed up by a strong balance sheet, the group will continue focusing on
working capital management, as well as ensuring that all divisions offer an
acceptable return on investment.
DIVIDEND
In accordance with group policy, no interim dividend has been declared.
The interim financial statements presented above comply with South African
Statements of Generally Accepted Accounting Practice and the accounting
policies used are consistent in all material respects with those used for
the 30 June 2001 audited results.
On behalf of the Board of Directors
K.L. Brouze (Chief Executive Officer)
Johannesburg
26 February 2002
Directors:
A. Rogoff* (Chairman*), K.L. Brouze, M.G. Duarte, M.G. Gordon,
S.N. Melnick, S.M. Moss, S. Stein*, D.S. Brouze*
*Non-executive
Transfer secretaries:
Mercantile Registrars Limited. 11 Diagonal Street Johannesburg 2001
Registered Address:
11 Height Street Doornfontein 2094.
PO Box 16647 Doornfontein 2028
