| Thu 14 Mar 2002, 0:00 | | Chester - Abridged Audited Results For The Year En |
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CHESTER INVESTMENT HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1983/005300/06)
Share Code: CES ISIN code: ZAE 0000 13348)
("Chester" or "the company")
Abridged audited results for the six months ended 31 December 2001
Headline earnings per share up 50%
Net asset value per share up 19,4%
CONSOLIDATED INCOME STATEMENT
Year ended Year ended
31 December 31 December
2001 2000
R'000 R'000
Revenue 305,846 -
Net operating income (loss) 6,385 (1,182)
Net interest received 3,673 5,684
Investment surplus 2,506 8,451
Attributable share of income
Of associates 12,266 10,759
- Recurring retained equity
Earnings 9,149 8,144
- Dividends received 3,117 2,615
Amortisation of goodwill 455 -
Income before taxation 25,285 23,712
Taxation 2,820 1,349
Income after taxation 22,465 22,363
Minority interest (837) -
Retained income for the year 21,628 22,363
Number of shares in issue
(000) 147,304 148,417
Weighted average shares in
issue (000) 147,861 166,262
Earnings per share (cents) 14,6 13,5
Headline earnings per share
(cents) 12,6 8,4
CONSOLIDATED BALANCE SHEET
2001 2000
R'000 R'000
ASSETS
Non-current assets 100,147 73,821
Goodwill (4,100) -
Investments 75,426 72,322
Property, plant and equipment 23,472 84
Deferred taxation 3,934 -
Share Incentive Trust 1,415 1,415
Current assets 124,195 67,467
Trade and other receivables 74,054 24,147
Inventories 36,432 -
Prepaid taxation 2,454 865
Bank balances and call
Deposits 11,255 42,455
Total assets 224,342 141,288
EQUITY AND LIABILITIES
Capital and reserves 167,126 141,101
Issued share capital and
Premium 37,658 38,222
Accumulated profit 129,468 102,879
Minority interest 10,125 -
Current liabilities 47,091 187
Trade and other payables 47,068 95
Taxation payable 23 92
Total equity and liabilities 224,342 141,288
Net asset value per share
(cents) 113,5 95,1
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2001
2001 2000
R'000 R'000
Cash flows from operating
Activities 5,410 1,337
Cash generated/(absorbed) by
Operations 1,481 (5,155)
Investment income 11,246 9,025
Interest paid (4,456) (726)
Taxation paid (2,861) (1,807)
Cash flow from investing
Activities (36,046) 3,424
Purchase of business (25,820) -
Acquisition of and additions
to investments (14,260) (1,122)
Disposal of investments 6,391 4,547
Acquisition of equipment (2,357) (1)
Cash flows from financing
Activities (564) (11,649)
Repurchase and cancellation
of shares (564) (4,025)
Treasury shares purchased by
Subsidiary - (7,624)
Net movement in cash
Resources (31,200) (6,888)
Cash resources at beginning
of year 42,455 49,343
Cash resources at end of year 11,255 42,455
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2001
Share Share Accumu- Total
capital premium lated
profit
Balance as at
31 December 1999 17,403 32,468 80,516 130,387
Shares repurchased
and cancelled (821) (3,204) - (4,025)
Shares purchased
by subsidiary (1,740) (5,884) - (7,624)
Net income - - 22,363 22,363
Balance as at
31 December 2000 14,842 23,380 102,879 141,101
Shares repurchased
and cancelled (111) (453) - (564)
Net income - - 21,628 21,628
Prior year
Adjustment - - 4,961 4,961
Balance as at
31 December 2001 14,731 22,927 129,468 167,126
REVIEW OF OPERATIONS
Following an offer to minority shareholders and a scheme of arrangement,
Chet Industries Limited ("Chet")is now the principal operating subsidiary of
Chester.
The Chet household chemical division performed satisfactorily and in line
with expectations. The cosmetics and toiletries division was successfully
established in the market, providing contract packing, its own and dealer's
own brands. With the foundation laid and the beginning of alliances with
overseas brands, this division is expected to contribute meaningfully to
future profitability. The industrial division has been a small contributor
to group profits. Plastoria is in the process of being sold which will
enhance group liquidity and impact positively on headline earnings.
"Revenue" represents sales to customers of Chet only.
Chester increased its interest in Brandcorp Holdings Limited ("Brandcorp")
to approximately 43%. Brandcorp recently published its interim results for
the half year to 31 December 2001 which reflected an increase in headline
earnings per share of 30% to 11,7 cents per share with earnings per share
rising 10,3% to 11,7 cents. As these are now being ;published prior to the
results of Chester, it is now possible properly to align the reporting
periods of the two groups. Previously Chester was incorporating the results
of Brandcorp six months in arrear. The result is a prior year adjustment at
1 January 2000 amounting to additional income of R4,961,000 which is not
included in current year results.
The market price of the Brandcorp share has remained steady at around 100
cents. The board is constantly evaluating its strategy in relation to these
shares.
CHANGE OF SECTOR
As announced on 11 March 2002, the JSE Securities Exchange Sa has approved
the change in sector of chester from "Private Equity" to "Retail" which more
accurately reflects the nature of the group's operations.
REVIEW OF RESULTS
Results for the current reporting period are not strictly comparable with
the previous year due to the consolidation of Chet. Headline earnings per
share rose by almost 50% to 12,6 cents and attributable earnings amounted to
R21,6 million equivalent to 14,6 cents per share. The consolidated balance
sheet remains strong with low gearing. The net asset value per share
increased by 19,4% to 113.5 cents. The group has adequate resources for
sustained organic growth.
DIVIDENDS
Notice is hereby given that a final dividend of 2 (two) cents per share for
the financial year ended 31 December 2001 has been declared. As envisaged at
the interim stage this is a maiden dividend for Chester and the amount
payable approximates the amount of cash dividends received.
In compliance with the requirement of STRATE, the following dates are
applicable:
Date dividend declared: Thursday 14 March 2002
Last date to trade "cum" the dividend: Friday 5 April 2002
Date trading commences "ex" the dividend: Monday 8 April 2002
Record date: Friday 12 April 2002
Date of payment: Monday 15 april 2002
Share certificates may not be dematerialized or rematerialized between
Thursday 28 March 2002 and Friday 12 April 2002, both dates inclusive.
BASIS OF ACCOUNTING
The audited financial statements have been prepared in accordance with
generally accepted accounting practices, on a basis consistent with that of
the previous year.
By order of the board
Michael Dennill C.A. (S.A.)
Company Secretary
14 March 2002
Directors: M.Z. Levine (Chairman), L. Freidus (Managing),
C.S. dos Santos (Non-executive), L. Levine (Non-executive), M.R. Kessler
(Non-executive)
Registered office: 2nd Floor North Block, Thrupps Illovo Centre, Oxford
Road, Illove, Johannesburg
Tel: 011 442-4571 Fax: 011 442-3126
Email: lewisf@chesterfin.co.za
CHESTER INVESTMENT HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1983/005300/06)
Share code: CES ISIN code: ZAE 0000 13348
("Chester" or "the company")
Abridged audited results for the year ended 31 December 2001
Reconciliation of headline earnings per share to earnings per share
Further to the release of the abridged audited results for the year ended 31
December 2001 released on SENS on the 14 March 2002 shareholders are
referred in this announcement to the reconciliation of headline earnings per
share to earnings per share.
CHESTER INVESTMENT HOLDINGS LIMITED
Audited results for the year ended 31 December 2001
Reconciliation of Headline Earnings per Share
Year ended Year ended
31 Dec 2001 31 Dec 2000
R'000 R'000
Weighted average number of
shares in issue (000's) 147,861 166,262
Earnings per share (cents) 14,6 13,5
Headline earnings per share
(cents) 12,6 8,4
Reconciliation of Headline
Earnings
Income attributable to
shareholders 21,628 22,363
Profit on disposal of
investments 2,506 8,451
Amortisation of goodwill 455 -
Headline earnings 18,667 13,912
