| Fri 12 Apr 2002, 0:00 | | Burlington Industries - Preliminary Report For The |
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2001
Burlington Industries Limited and its Subsidiaries
Registration No. 1946/021549/06
PRELIMINARY REPORT FOR THE YEAR ENDED 31 DECEMBER 2001
CONSOLIDATED INCOME STATEMENT for the year ended 31 December 2001
31/12/01 31/12/00
Reviewed Audited
Turnover 13 484 000 14 040 439
Cost of sales 8 207 000 9 313 105
Gross profit 5 277 000 4 727 334
Other operating costs 3 884 000 4 136 571
Operating profit 1 393 000 590 763
Finance charges 1 352 000 1 417 534
Factory relocation costs - 130 000
Profit (loss) before taxation 41 000 (956 771)
Taxation 750 750
Profit for period 40 250 (957 521)
Preference dividend 6 000 6 000
Net income attributable to
ordinary shareholders 34 250 (963 521)
ORDINARY DIVIDENDS - -
RETAINED PROFIT FOR THE PERIOD 34 250 (963 521)
Weighted average number of
ordinary shares 600 000 600 000
Earnings per ordinary share (cents) 5.7 (160.6)
Headline Earnings per ordinary
share (Note 3) 13.1 (160.6)
DIVIDEND PER ORDINARY SHARE (cents) - -
CONSOLIDATED BALANCE SHEET
31/12/2001 31/12/2000
Reviewed Audited
ASSETS
Non-current assets 11 762 000 11 785 477
Tangible assets (Note 2) 10 700 000 10 605 968
Intangible assets 1 062 000 1 179 509
Current assets 14 866 000 13 864 608
Inventories 13 671 000 12 157 492
Trade and other recievables 1 193 000 1 661 263
Cash 2 000 45 853
26 628 000 25 650 085
EQUITY AND LIABILITIES
Equity and reserves 5 009 000 4 974 352
Ordinary shareholders interest 4 909 000 4 874 352
Preference share capital 100 000 100 000
Non-current liabilties 14 874 000 14 309 240
Current liabilities 6 745 000 6 366 493
26 628 000 25 650 085
CONSOLIDATED CASH FLOW STATEMENT for the year ended
31/12/2001 31/12/2000
Reviewed Audited
CASH FLOW FROM OPERATING ACTIVITIES (1 437 492) 112 593
CASH FLOWS FROM INVESTING ACTIVITIES (349 032) (390 344)
CASH FLOWS FROM FINANCING ACTIVITIES 564 760 78 916
NET DECREASE IN CASH
AND CASH EQUIVALENTS (1 221 755) (198 835)
Cash and cash equivalents at the
beginning of the period (2 313 206) (2 114 371)
Cash and cash equivalents at the end of
the period (3 534 961) (2 313 206)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Ordinary Preference Non- Distri- Total
share share distri- butable
capital capital butable reserves
reserve
R R R R R
Group
Balance at
1 January
2001 300 000 100 000 5 177 689 (603 337) 4 974 352
FCTR
arising
during
the year
Net loss/
profit
for the
year 40 250 40 250
Dividends - -
- Preference (6 000) (6 000)
Balance at
31
December
2001 300 000 100 000 5 177 689 (569 087) 5 008 602
TANGIBLE ASSETS: 31.12.2001 31.12.2000
Reviewed Audited
Cost
Plant,vehicles and equipment 6 915 000 6 565 827
Valuation
Free hold property 7 129 000 7 128 999
14 044 000 13 694 826
Accumulated depreciation - -
Plant, vehicles and equipment 3 344 000 3 088 358
Net carrying value
Free hold property 7 129 000 7 128 999
Plant, vehicle and equipment 3 571 000 3 476 969
10 700 000 10 605 968
Movement for year
Capital expenditure
- Free hold property - 28 999
- Plant, vehicles equipment 348 000 374 449
Disposals
- Plant, vehicles and equipment (11 769)
Depreciation (255 000) (323 559)
(94 000) 68 120
HEADLINE EARNINGS:
The calculation of headline earnings per
share is based on earnings of R78 650
(2000: loss of R963 521).
Adjustments to net earnings are detailed
below:
Reconciliation between net earnings and
headline earnings
Net profit and loss per income statement 34 250 (963 521)
Goodwill amortised 44 400 -
Headline earnings 78 650 (963 521)
DIRECTORS PRELIMINARY REPORT FOR THE YEAR ENDED 31 DECEMBER 2001
It gives us great pleasure to report on the results achieved during the year
under review. These results were achieved notwithstanding the continued poor
trading conditions in the clothing manufacturing industry.
Operating income increased to R 1 393 000 compared to R 590 763 for the
previous year. This improvement can be attributed to a strong growth in
sales in our retail division as well as reductions in overhead expenditure
in the manufacturing section
No dividends have been paid or declared.
REVIEW BY INDEPENDENT AUDITORS
The financial information set out above has been reviewed, but not audited
by the group's auditors Grant Thornton Kessel Feinstein.
Their review report is available for inspection at the company's registered
office.
FOR AND ON BEHALF OF THE BOARD
PERRY KAWITZKY
Director
ANTHONY KAWITZKY
Director
05 April 2002
NOTES TO THE FINANCIAL STATEMENTS
1. ACCOUNTING POLICIES
The financial statements are prepared on the historical cost basis, adjusted
by the revaluation of land and buildings as detailed below, and incorporate
the principal accounting policies set out below which are consistent with
those of the previous year. These policies comply with Statements of South
African Generally Accepted Accounting Practice except as disclosed in note
1.8 and 1.9. The financial statements are prepared on a going concern
basis.
1.1 Basis on Consolidation
The consolidated financial statements incorporate those of the company and
all of its subsidiaries. The results of subsidiaries acquired or disposed
of during the year are included from the effective dates of acquisition and
up to the effective dates of disposal. Differences between the
consideration paid for subsidiaries acquired and the fair value of their
identifiable net assets at dates of acquisition are expressed as goodwill or
reserve on acquisition of subsidiaries. Unrealised income arising from
transactions within the group and inter-company balances have been
eliminated.
1.2 Non-Distributable Reserves
Amounts arising on revaluation of land and buildings are taken directly to a
non-distributable reserve.
1.3 Tangible Assets
The group owns two properties; both are stated at valuation.
Independent valuations are obtained at least every three years. In the
intervening years such valuations are reviewed by the directors to ensure
that no factors have arisen to render their use and disclosure misleading
and to determine if any permanent decline in value has occurred.
Surpluses or shortfalls on revaluation are transferred directly to or from a
revaluation surplus. If no surplus balance for the asset exists, then
shortfalls will be expensed. A revaluation surplus is recognised as income
to the extent that it reverses a revaluation shortfall of the same asset
previously recognised as an expense.
Assets held under finance leases are capitalised. At the commencement of
the leases, these assets are reflected at open market value and the related
liability is recognised at an equivalent amount. Finance charges are
written-off over the periods of the leases on the effective rates of
interest. Depreciation is provided on all tangible assets, other than land
and buildings, to write down the cost, less estimated residual value, over
their estimated economic lives as follows:
Electrical equipment 15% per annum reducing balance method
Factory furniture 10% per annum reducing balance method
Motor vehicles 10% per annum straight line method
Office equipment 10% per annum reducing balance method
Plant and machinery 7,5% to 15% per annum reducing balance
method
No depreciation is provided on land and buildings.
1.4 Intangible Assets
Goodwill
Goodwill is stated at cost, except where there is a decline in value that is
other than temporary, in which case it is written down.
Development Expenditure
Development costs comprise all costs that are directly attributable to
development activities or that can be allocated on a reasonable basis to
such activities.
Development costs are recognised as an asset only when it is probable that
the costs will give rise to future economic benefits and the costs can be
measured reliably. Development costs are amortised on the straight line
basis at rates considered to be appropriate to the time period in which
benefits are expected from the sale or use of the products. Development
costs are further written down to the extent that the unamortised balance
will in all probability no longer be recovered from expected future economic
benefits.
1.5 Inventories
Inventories are valued at the lower of cost or estimated net realisable
value.
Raw materials are valued at invoice cost on a first-in-first-out basis.
Work-in-progress and finished goods include raw materials, labour and
factory overheads.
1.6 Translation of Foreign Currencies Foreign entities
All assets and liabilities are translated at the closing rate.
Income statement items are translated at an appropriate weighted average
exchange rate for the year.
Exchange differences are taken directly to the foreign currency translation
reserve.
1.7 Retirement Benefits
Current Service Costs
Current contributions to the pension fund are based on current service and
current salary and are recognised in the results for the year.
1.8 Revenue
Turnover is defined as sales to customers and finance charges and excludes
value added tax.
1.9 Cost of Sales
Cost of sales consists of the cost of inventories sold during the year
including related overhead costs.
1.10 Cash and Cash Equivalents
Cash and cash equivalents consists of cash on hand and balances with banks
and other financial institutions and investments in money market
instruments.
Registered Office: Cnr 7th Avenue and Nyman Street,Maitland,7405
Transfer Office: Ultra Registrars (Pty) Limited, 11 Diagonal Street,
Johannesburg, 2001
Directors: P Kawitzky,I Kawitzky,P Kawitzky, A Kawitzky, R D Hugo
