| Wed 13 Mar 2002, 0:00 | | Iliad Africa Limited - Audited results for the yea |
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Iliad Africa Limited
(Incorporated in the Republic of South Africa)
(Registration number 1997/011938/06)
Share code ILA ISIN code ZAE000015038
Audited results for the year ended 31 December 2001
Strong cash flow
Dividend up 28,5%
EPS up 15%
COMMENTS
The Group is pleased to announce its annual results for the year ended 31
December 2001.
NATURE OF BUSINESS
Iliad Africa focuses on the sourcing, distributing and retailing of ceramic
tiles and sanitaryware, bathroom fittings, hardware, building materials,
ironmongery and finished wood products.
Iliad has a 60% residential customer base, the balance being commercial. The
company is a well-established supplier in its niche markets and geographic
locations. Proven trading skills as well as the owner manager philosophy at
operational level, have been positive contributions to Iliad's overall
success.
OPERATIONAL REVIEW
The 6% growth in the residential market was offset by an equitable decrease
in the commercial market.
All four well-established operating divisions namely, General Building
Materials, Ceramic Tiles, Boards and Ironmongery, have performed in line
with Group budgets.
A new Knob & Knocker outlet was launched in Menlyn Pretoria, which turned in
a profit within the first six months of operation. During November last
year, the Group broadened its trading footprint in KwaZulu-Natal with the
opening of a Knob & Knocker store situated in Umhlanga Ridge.
The phenomenal success of our upgrade of the Ferreira's D cor World showroom
in Northriding, following the repositioning of our business from selling the
customer a product to offering a complete shopping experience, has prompted
management to upgrade its Just Tiles showroom in Natal and the Cape. Both
outlets now stock a comprehensive range of sanitaryware and taps to augment
their ceramic tile stock holding.
FINANCIAL HIGHLIGHTS
Building on previous successes, the Group's turnover increased by 14% to
R594 million (December 2000: R519 million). The Group posted attributable
profits of R25,7 million (2000: R24,4 million), and increased headline
earnings per share by 12% to 36,5 cents (2000: 32,5 cents).
In line with GAAP the financial statements reflect a R4 million foreign
exchange loss incurred in restating foreign creditors in our books at R11,97
to the dollar at year-end. More than half of this amount will be recovered
in higher trading margins and lower settlement rates on due dates due to the
recovery of the rand.
A deferred tax asset has been raised as the recoverability of this amount is
considered certain.
The strong cash flow eliminated last year's R15 million bank borrowings.
BUSINESS STRATEGY
The company aims to continue the repurchase of its shares on the JSE
Securities Exchange while a 30% return can be achieved.
The Group traded under cautionary during the last quarter. The cautionary
has subsequently been withdrawn.
PROSPECTS
The first two months of the new financial year have started well, and the
Group believes that even if the prime lending rate increases by an
additional one or two points, profitability will be sustained. Although
revenue growth may be stunted, the Group is able to out-trade the current
recessionary market due to its policy of not dominating any particular
market segment.
DIVIDEND (NUMBER 4)
Notice is hereby given that the Board has declared a dividend of 9 cents per
share (2000: 7 cents). Shareholders are advised that the last day to trade
"cum dividend" will be Friday, 5 April 2002. The shares will trade "ex
dividend" from the commencement of business on Monday, 8 April 2002. The
record date will be Friday,
12 April 2002 and the payment date will be Monday, 15 April 2002.
Shareholdings may not be dematerialised or rematerialised between Wednesday,
27 March 2002 and Friday, 12 April 2002 both days inclusive.
For and on behalf of the Board
Ralph Patmore
Chief Executive Officer
Neil Goosen
Financial Director
14 March 2002
Registered address First Floor East Block Pineslopes Shopping Centre &
Office Park c/o The Straight & Witkoppen Road Lonehill PO Box 2572
Honeydew 2040
Transfer secretaries Ultra Registrars (Pty) Limited 11 Diagonal Street
Johannesburg 2001 PO Box 4844 Johannesburg 2000
ABRIDGED BALANCE SHEET
Audited Audited
R000s 31 Dec 2001 31 Dec 2000
ASSETS
Non-current assets
Tangible assets 13 643 14 494
Financial assets 3 622 306
Deferred taxation 14 972 14 782
Current assets 195 303 175 600
Total assets 227 540 205 182
EQUITIES AND LIABILITIES
Capital and reserves 96 568 78 934
Interest-bearing non-current liabilities 1 048 1 574
Interest-bearing current liabilities 4 966 22 566
Non interest-bearing current liabilities 124 958 102 108
Total equity and liabilities 227 540 205 182
ABRIDGED INCOME STATEMENT
% Audited Audited
R000s change 31 Dec 2001 31 Dec 2000
Turnover 14 593 757 518 995
Continuing operations 592 193 489 122
Terminated operations 1 564 29 873
Trading profit 33 473 35 600
Continuing operations 36 594 37 743
Terminated operations (3 121) (2 143)
Exceptional item 1 592 -
Financing charges (net) (4 465) (3 644)
Profit before taxation 30 600 31 956
Taxation (4 911) (7 510)
Earnings for the year 25 689 24 446
Number of ordinary shares in issue
(including treasury shares) 74 658 982 77 239 582
Weighted average number of
ordinary shares in issue 74 582 728 81 778 873
Headline earnings per
share (cents) 12 36,5 32,5
Earnings per share (cents) 15 34,4 29,9
Diluted headline earnings
per share (cents) 35,0 32,1
Diluted earnings per share (cents) 33,0 29,5
Dividend per share (cents) 9,0 7,0
Headline earnings reconciliation
Earnings for the year 25 689 24 446
Exceptional item
Profit on sale of steel forming
assets - United
Steel & Pipe Supplies (Pty) Limited (1 592) -
Discontinued operations - loss 3 121 2 143
Headline earnings 27 218 26 589
ABRIDGED CASH FLOW STATEMENT
% Audited Audited
R000s change 31 Dec 2001 31 Dec 2000
Cash flows from operating
activities 26 466 133
Cash utilised in investment activities (5 192) (6 463)
Cash effect on financing activities (4 357) (15 248)
Increase (decrease) in cash and
cash equivalent 16 917 (21 579)
Cash and cash equivalent at beginning
of year (15 893) 5 686
Cash and cash equivalent at
end of year 106 1 024 (15 893)
SUPPLEMENTARY INFORMATION
Year ended Year ended
31 Dec 2001 31 Dec 2000
Tangible net asset value per share (cents) 129,3 102,2
Capital expenditure (R000s) 6 065 6 847
Capital commitments (R000s)
- approved and contracted 500 200
- approved not contracted 2 000 4 500
Contingent liabilities (R000s) 6 404 4 803
Depreciation (R000s) 4 338 4 206
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
for the year ended 31 December 2001
Stated Retained
R000s capital income Total
Balance at 1 January 2001 26 495 52 439 78 934
Shares re-acquired per Special Resolution (2 075) (2 075)
Share issue expenses (13) (13)
Treasury shares acquired (665) (665)
Earnings for the year 25 689 25 689
Dividend paid (5 302) (5 302)
Balance at 31 December 2001 23 742 72 826 96 568
CITIWOOD
RIETPAN HARDWARE & BUILDING SUPPLIES
FERREIRA'S BUILDWARE
FERREIRAS D COR WORLD
THE TILE DEPOT
JUST TILES
THE KNOB & KNOCKER
