| Wed 3 Apr 2002, 0:00 | | Winecorp Group Financial Results For The Year Ende |
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Winecorp Limited
JSE share code: WNE
ISIN number: ZAE000027710
Group financial results for the six months ended 31 January 2002
Financial results
The financial results of the group for the six months ended 31 January 2002
are set out below. The accounting policies which have been applied are
consistent in all material respects with those applied in the previous year.
Winecorp Limited is proud to report an operating profit before exceptional
items of R4,4 million for the first six months of the financial year (2001:
R1,9 million). While turnover is comparable with the same period last year,
operating expenses are down by R2,5 million and there is other income of
R1,6 million in the form of exchange gains. Ongoing focus on increasing
productivity at all levels and eliminating non-strategic costs in the
company has resulted in the reduction in operating expenses.
The exceptional items represent a profit of R0,6 million on disposal of
associate Vineyards Direct (Pty) Ltd consistent with the strategy of
directing the business to core activities, and a provision against the loan
to the Winecorp employee share incentive scheme of R3,1 million. In line
with the policy of streamlining the balance sheet and given the historic
high volatility of the company's share price on the JSE Securities Exchange
South Africa, the directors of the company believe that it is prudent to
provide for this loan to the underlying net asset value of the Winecorp
shares.
The directors approved that the share incentive scheme be replaced with a
profit participation scheme. The motivation is based on the fact that the
restructuring of the company resulted in a large number of participants of
the scheme no longer being employed by the operating subsidiary. The
directors believe that the profit participation scheme will provide a more
tangible incentive to employees of Winecorp Limited, who are directly
responsible for the performance of the group.
During the current period the company embarked on a R5 million expansion of
its bottling capacity, necessary to meet the expected demand generated by
new clients both in South Africa and internationally. The benefits of this
expansion are expected to be enjoyed in the next financial year.
Prospects
Although the market conditions remain competitive, the directors believe
that the company is well poised to take advantage of opportunities which
arise. Management is focused on expanding the order book for both local and
international sales, while maintaining effective cost management. The
perennial variables of exchange rate fluctuations and timing of customers'
orders remain as uncertainties to year end profitability.
Change in directors
SA Garforth resigned with effect from 28 March 2002.
Abridged income statement
6 months ended 6 months ended Year ended
31 Jan 2002 31 Jan 2001 31 Jul 2001
Unaudited Unaudited Audited
R'000 R'000 R'000
Revenue 40 747 41 238 81 449
Other income 1 659 - 612
Operating expenses (36 203) (38 687) (77 276)
Operating profit 6 203 2 551 4 785
Finance costs (1 953) (826) (2 672)
Operating profit before associates 4 250 1 725 2 113
Share of net income from associates 129 157 225
Operating profit before
exceptional items 4 379 1 882 2 338
Exceptional items (2 463) 357 357
Net profit before taxation 1 916 2 239 2 695
Taxation - - (23)
Net profit for the period 1 916 2 239 2 672
Weighted number of shares
in issue (million) 49 45 46
Earnings per share (cents) 3,88 4,95 5,85
Headline earnings per share (cents) 9,04 4,16 5,70
Reconciliation between headline
profit and net profit
Headline profit 4 463 1 882 2 604
Provision for loan to share trust (3 063) - -
Profit on disposal of associate 600 357 357
Profit/(loss) on disposal of
property, plant and equipment 51 - (17)
Goodwill amortisation (135) - (272)
Net profit 1 916 2 239 2 672
Abridged balance sheet
As at As at As at
31 Jan 2002 31 Jan 2001 31 Jul 2001
Unaudited Unaudited Audited
R'000 R'000 R'000
Assets
Property, plant and equipment 12 471 10 459 10 904
Intangibles and goodwill 2 475 2 379 2 552
Investments in associates 757 114 505
Long-term loans 902 2 763 3 965
Related party loans 1 950 9 282 1 955
Current assets 43 898 40 757 48 166
62 453 65 754 68 047
Equity and liabilities
Shareholders' funds 23 174 18 557 21 258
Long-term liabilities 5 627 6 764 5 526
Related party loans 5 715 6 242 7 548
Current liabilities 27 937 34 191 33 715
Interest bearing 8 156 2 635 9 896
Non interest bearing 19 781 31 556 23 819
62 453 65 754 68 047
Total number of shares
in issue at period end (million) 49 45 49
Net asset value per share (cents) 46,92 41,06 43,05
Statement of changes in equity
6 months ended 6 months ended Year ended
31 Jan 2002 31 Jan 2001 31 Jul 2001
Unaudited Unaudited Audited
R'000 R'000 R'000
Balance at start of period 21 258 16 318 16 318
Attributable profit for the period 1 916 2 239 2 672
Issue of share capital - - 5 383
Write offs against share premium - - (1)
Share premium in respect of net
asset value issue - - (114)
Net effect of shares acquired by
subsidiary company - - (3 000)
Balance at end of period 23 174 18 557 21 258
abridged cash flow statement
Cash inflow/(outflow) from
operating activities 6 608 (12 745) (16 333)
Cash (outflow)/inflow from
investing activities (1 588) 1 553 (1 133)
Cash (outflow)/inflow from
financing activities (1 727) 10 153 17 397
Net increase/(decrease) in cash
and cash equivalents 3 293 (1 039) (69)
Cash and cash equivalents at
beginning of period (1 113) (1 044) (1 044)
Cash and cash equivalents
at end of period 2 180 (2 083) (1 113)
Directors: F Rahmatallah Chairman (British), JC van Reenen Chief Executive
Officer, BS Barraclough (British), AE Jacobs, GJ Knox (Australian),
P McMahon Alternate (British)
Company secretary: ML Potgieter (British), c/o Spier Home Farms (Pty) Ltd,
Annandale Road, Stellenbosch 7600 Company registration number:
1997/012032/06
Transfer secretaries: Mercantile Registrars Ltd, 94 President Street,
Johannesburg 2001
