| Mon 11 Mar 2002, 0:00 | | Excellerate Holdings Limited - Results For The Six |
|
2001
Excellerate Holdings Limited
(formerly CedarGro Holdings Limited, registration number 1997/009884/06)
Share code: EXL ISIN code: ZAE000026092
Results for the SIX months ended 31 DECEMBER 2001
Headline earnings up 26%
Operating profit up 20%
Turnover up 11%
Streamlining and merger of Louis Smiedt and Hypertrade begins
Excellerate is moving to the Business Support Services Sector of the JSE
FINANCIAL OVERVIEW
Excellerate experienced earnings growth in all major areas of its business,
except for the Louis Smiedt international housewares business. Most
businesses in the group achieved strong organic growth despite the Rand's
volatility and vulnerability in the final quarter, following the 11
September 2001 events, which particularly affected the ExcellTrade Division.
Against the background of difficult trading conditions, an ailing retail
sector and the highly volatile Rand exchange rate, headline earnings
increased by 26%, operating profit by 20% and turnover by 11%. No
acquisitions were made during the period and the growth was purely organic.
OPERATIONAL REVIEW
The ExcellTrade Division, which houses the Trading-Distribution grouping,
performed satisfactorily, in light of the volatile exchange rate and a
general slow-down in the sector. Although profitable, Louis Smiedt did not
meet the group's earnings growth expectations and, accordingly, the group's
results have been somewhat affected by Louis Smiedt's performance. A
decision was taken at the end of the first quarter, to merge Louis Smiedt
with the Hypertrade housewares business to take advantage of rationalisation
benefits and enhance earnings growth.
The merger process commenced in January 2002 to prevent interference in the
trading of the businesses over the Christmas season.
The ExcellServ Division performed well due to ongoing efficiencies and the
introduction of new product offerings within the businesses. An investment
was made in the infrastructural costs of Sterikleen to manage its expected
organic and acquisitive growth effectively.
Interpark incurred substantial costs in its tender for the parking at
Johannesburg and Durban International Airports. The Airports Company
terminated the tender process, following its decision to handle the parking
in-house. Interpark continues to have very good prospects.
At ExcellCorp, the group's headquarters, an investment was made in
strengthening management and infrastructure to ensure that divisional
performance is optimised and that solid foundations are laid for acquisitive
growth.
In line with the group's empowerment philosophy, costs were incurred in
assisting Katanga X Holdings, Excellerate's empowerment partner, to expand
its operational platform.
PROSPECTS
The group began an export drive within its various businesses, particularly
FoodServ and Goldenmarc, in the second quarter to offset the negative
earning implications of the weaker Rand. These initiatives will be felt in
the second half of the financial year.
With effect from 24 February 2002, the group acquired certain selected
assets of the Alpine Food importing and distributing business and the Fruti
Flow frozen confectionary business, which traded within the Afribrand group
(in liquidation). These profitable businesses will form part of the
ExcellTrade division.
The acquisition marks the group's entrance into the distribution of fast
moving consumable food products. This is a natural extension to the
ExcellTrade Division, which distributes branded international and local non-
food products to a homogenous customer base.
With effect from 1 March 2002, Sterikleen acquired certain assets, employees
and contracts of the Cleancare Group (Proprietary) Limited, which is to be
absorbed into the enhanced Sterikleen infrastructure.
The group is confident that the results for the full financial year will
reflect an above average earnings growth.
NEW JSE SECTOR
The JSE, in consultation with FTSE, has advised that Excellerate will be
transferred to the Industrial Sector: Support Service, under Subsector:
Business Support Services, which most appropriately describes the group's
nature of business.
DIVIDEND
As indicated previously, no dividend has been declared in the light of the
group's desire to utilise its resources to finance selective acquisitions
and other growth within the existing divisions.
INDEPENDENT REVIEW
The financial information contained in this announcement has been prepared
in accordance with Generally Accepted Accounting Practices in South Africa
and policies which are consistent with those of the previous period and the
2001 financial statements.
The group's auditors, KPMG Inc., have reviewed, but not audited, the
financial information for the six month period ending 31 December 2001.
Their report is available for inspection at the registered office of the
company.
For and on behalf of the Board
L Rottanburg Bruce Bernstein
Executive Chairman Financial Director
Sandton, 11 March 2002
INCOME STATEMENT
Reviewed Reviewed Audited
6 months ended 6 months ended 12 months ended
31 December 2001 31 December 2000 30 June 2001
R'000 R'000 R'000
Turnover 120 940 109 045 219 352
Operating profit 8 002 6 650 13 822
Net interest received 200 95 827
Net income before taxation 8 202 6 745 14 649
Taxation (2 171) (1 993) (4 343)
Net income after taxation 6 031 4 752 10 306
Attributable to minority
Shareholders (95) (28) (96)
Headline earnings 5 936 4 724 10 210
Capital items (1 259) 33 (1 005)
- Amortisation of goodwill (1 287) (787) (2 010)
- Net profit on sale of
fixed assets 40 929 1 242
- Tax thereon (12) (109) (237)
Attributable to ordinary
Shareholders 4 677 4 757 9 205
Shares in issue (000's) 184 762 184 762 184 762
Weighted average number of
shares in issue (000's) 184 762 158 918 171 436
Earnings per share (cents) 2,5 3,0 5,4
Headline earnings per share
(cents) 3,2 3,0 6,0
CASH FLOW STATEMENT
Reviewed Reviewed Audited
6 months ended 6 months ended 12 months ended
31 December 2001 31 December 2000 30 June 2001
R'000 R'000 R'000
Cash generated by
Operations 5 670 20 172 30 696
Net interest received 200 95 827
Taxation paid (256) - (31)
Cash flow from operating
Activities 5 614 20 267 31 492
Cash flow from investing
Activities (7 864) (29 198) (37 262)
Cash flow from financing
Activities (244) 28 010 27 700
Net cash resources
(utilised)/retained
for the period (2 494) 19 079 21 930
Foreign exchange gain - 125 216
Net cash resources at
beginning of period 25 765 3 619 3 619
Net cash resources at
end of period 23 271 22 823 25 765
BALANCE SHEE
Reviewed Reviewed Audited
6 months ended 6 months ended 12 months ended
31 December 2001 31 December 2000 30 June 2001
R'000 R'000 R'000
Assets
Non current assets 67 463 63 081 66 874
Fixed assets 7 886 6 421 7 842
Investments 1 688 271 270
Intangibles 48 331 45 545 48 717
Deferred taxation 9 558 10 844 10 045
Current assets 88 141 85 536 87 932
Liquid funds 23 271 22 823 25 765
Other current assets 64 870 62 713 62 167
Total assets 155 604 148 617 154 806
Equity and liabilities
Equity and reserves 104 028 94 662 99 256
Ordinary shareholders' interest 103 774 94 634 99 097
Outside shareholders' interest 254 28 159
Non current liabilities
Long term loans 1 390 1 723 1 601
Current liabilities 50 186 52 232 53 949
Other current liabilities 50 186 45 131 48 767
Amounts due to vendors - 7 101 5 182
Total equity and liabilities 155 604 148 617 154 806
Shares in issue (000's) 184 762 184 762 184 762
Net asset value per share
(cents) 56,3 51,2 53,7
Net tangible asset value
per share (cents) 30,1 26,6 27,4
STATEMENT OF CHANGES IN ORDINARY SHAREHOLDERS'
rdinary Non-
Share Share distributable Retained
Capital premium reserve earnings Total
R'000 R'000 R'000 R'000 R'000
Balance at 1 July 2000 1 381 29 798 18 734 13 671 63 584
Shares issued 467 27 408 - - 27 875
Foreign currency
Translation - - 216 - 216
Net profit for the year - - - 9 205 9 205
Retribution for breach of
Warranty - - (1 783) - (1 783)
Balance at 30 June 2001 1 848 57 206 17 167 22 876 99 097
Net profit for the period - - - 4 677 4 677
Balance at 31 December 2001 1 848 57 206 17 167 27 553 103 774
SEGMENTAL REPORT
Reviewed Reviewed Audited
6 months ended 6 months ended 12 months ended
31 December 2001 31 December 2000 30 June 2001
R'000 R'000 R'000
Turnover 120 940 109 045 219 352
Service 40 864 35 933 84 243
Trading 80 076 73 112 135 109
Operating Profit 8 002 6 650 13 822
Service 3 735 2 629 7 993
Trading 4 267 4 021 5 829
Transactions between segments are conducted on an arm's length market-
related basis
REGISTERED OFFICE: Block F, Ground Floor, Pin Mill Farm, 164 Katherine
Street, Sandown 2169. PO Box 785448, Sandton 2146. Tel: (+27 11) 444-0474.
Fax: (+27 11) 262-6280. E-mail: lise@excellerate.co.za
DIRECTORS: L Rottanburg (Executive Chairman), B Bernstein, H Bloch, J
Joseph, S Lewis*, Dr. D Molapo*, A Stewart (*Non-executive Director)
COMPANY SECRETARY: ER Goodman Secretarial Services cc (represented by E
Goodman). Ground Floor, 25 Rudd Road, Illovo 2196. Tel: (+27 11) 447-1713
SHARE TRANSFER SECRETARY: Computershare Services Limited, 2nd Floor, Edura
House, 41 Fox Street, Johannesburg 2001. PO Box 61051, Marshalltown 2107.
Tel: (+27 11) 370-7700. Fax (+27 11) 836-0792
Date: 11/03/2002 04:01:00 PM Produced by the JSE SENS Department
