| Tue 23 Apr 2002, 0:00 | | Natural Health Holdings Limited - Audited Results |
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February 2002
Natural Health Holdings Limited
(Registration number: 1998/007365/06)
("NHH" or "the group" or "the company")
Share code: NTL
ISIN number: ZAE000022638
Audited results for the year ended 28 February 2002
Consolidated income statement
Pro forma*5 Audited Audited
12 months to 12 months to 18 months to
28 February 28 February 28 February
2002 2002 2001
R'000 R'000 R'000
Revenue 83 612 83 612 52 817
Operating profit (EBITDA) 3 946 3 946 14 984
Amortisation of goodwill (300) (300) -
Depreciation (1 425) (1 425) (1 051)
Operating profit before
interest (EBIT) 2 221 2 221 13 933
Net interest (paid)/received (2 667) (2 667) 2 970
(Loss)/profit before
exceptional items (446) (446) 16 903
Exceptional gain 6 885 2 627 7 106
Profit before taxation 6 439 2 181 24 009
Taxation (827) (827) 5 085
Profit after taxation 7 266 3 008 18 924
Attributable to minority
shareholders (750) (750) (157)
Profit attributable to ordinary
shareholders 6 516 2 258 18 767
Adjusted for exceptional
items after
taxation (7 045) (2 787) (7 237)
Adjusted for amortisation of
goodwill 300 300 -
Headline earnings (229) (229) 11 530
Headline earnings per share
- cents (0,12) (0,12) 7,1
Earnings per share - cents 3,44 1,19 11,5
Dividends per share - cents - - 3,75
Weighted number of shares
in issue
- (000's) 189 465 189 465 163 223
Consolidated balance sheet
Pro forma*5 Audited Audited
28 February 28 February 28 February
2002 2002 2001
R'000 R'000 R'000
Assets
Non-current assets 10 144 11 093 11 055
Intangible assets 2 172 2 172 -
Property, plant and equipment 1 835 2 784 3 562
Deferred taxation 6 019 6 019 3 748
Investments and loans 118 118 3 745
Current assets 24 314 30 840 45 089
Inventory 5 104 15 859 13 491
Trade and other receivables 8 692 8 692 12 390
Proceeds from sold or
discontinued businesses 4 229 - 7 500
Taxation receivable 612 612 -
Bank balances and cash 5 677 5 677 11 708
Total assets 34 458 41 933 56 144
Equity and liabilities
Share capital and reserves 14 843 13 585 6 755
Minority interest 680 680 125
Total shareholders' equity 15 523 14 265 6 880
Non-current liabilities 747 7 976 12 519
Interest-bearing debt 659 7 888 12 383
Deferred taxation 88 88 136
Current liabilities 18 188 19 692 36 745
Bank overdraft 307 307 1 095
Factoring creditor 2 423 2 423 6 179
Trade finance creditor 4 655 4 655 6 034
Trade and other payables 10 306 11 810 13 822
Vendor loans - - 5 127
Taxation payable 497 497 2 393
Shareholders for dividends - - 2 095
Total equity and liabilities 34 458 41 933 56 144
Net asset value per share
- cents 7,9 6,7 3,4
Fully diluted net asset value per
share - cents 7,9 6,7 3,4
Number of shares in issue
- (000's) 187 835 202 835 201 134
Diluted number of shares in
issue - (000's) 187 835 202 835 201 134
Notes
1. Net interest paid is stated after deducting interest received of R503
473.
2. The group has no committed capital expenditure.
3. Accounting policies are in accordance with South African Statements of
Generally Accepted Accounting Practice. Accounting policies have been
consistently applied with the exception of goodwill which is now capitalised
and amortised.
4. During the period 18 299 039 shares were cancelled and delisted and 20
000 000 shares were listed.
*5. The pro forma unaudited income statement and balance sheet are prepared
on the basis that the C&T disposal became effective on 28 February 2002.
Consolidated summarised cash flow statement
Audited Audited
12 months to 18 months to
28 February 28 February
2002 2001
R'000 R'000
Cash flows from operating activities (4 641) 16 194
Taxation paid (3 908) (7 199)
Dividends paid (2 095) (6 413)
Dividends paid to minorities (465) -
Cash flows from investing activities 5 924 (20 609)
Cash flows from financing activities (158) (479)
Net decrease in cash and cash
equivalents (5 343) (18 506)
Cash and cash equivalents at beginning
of year 10 613 30 093
Cash and cash equivalents acquired with
subsidiaries 100 (974)
Cash and cash equivalents at end of year 5 370 10 613
Statement of changes in equity
Distri- Non-distri-
Share Share butable butable
capital premium reserve reserve Total
R'000 R'000 R'000 R'000 R'000
Restated balance at
1 September 1999 1 575 3 366 (524) 313 4 730
Attributable profit
for the period - - 18 767 - 18 767
Issue of shares 436 20 471 - - 20 907
Overissue of shares (3) (417) - - (420)
Dividends - - (6 146) - (6 146)
Goodwill and intangibles
written off - (23 420) (7 663) - (31 083)
Balance at
28 February 2001 2 008 - 4 434 313 6 755
Attributable profit
for the year - - 2 258 - 2 258
Foreign exchange
translation reserve - - - (207) (207)
Proceeds on issue of
shares 200 4 800 - - 5 000
Shares repurchased and
cancelled (180) - - - (180)
Share issue expenses
written off - (41) - - (41)
Balance at
28 February 2002 2 028 4 759 6 692 106 13 585
Exceptional items
Pro forma*5 Audited Audited
12 months to 12 months to 18 months to
28 February 28 February 28 February
2002 2002 2001
R'000 R'000 R'000
Write back of investment in
Coronet Equities (Pty)
Limited 4 000 4 000 7 500
Reversal of impairment - land
and buildings - - 583
Provision for non-recovery of
investments and loans (838) (838) (540)
Cost of fundamental
reorganisation - - (437)
Profit/(loss) on disposal of
cosmetics division 3 723 (535) -
Exceptional gain 6 885 2 627 7 106
Discontinuing operations and segmental analysis
Healthcare* Cosmetics#
12 months to 12 months to
28 February 28 February
2002 2002
R'000 R'000
Revenue 43 740 39 872
Operating profit/(loss) (EBITDA) 7 668 (3 722)
Taxation 1 327 (2 154)
Total assets 19 749 22 184
Total liabilities (excluding
inter-group) 6 873 20 795
*Incorporating group head office.
#See commentary on disposal of the cosmetics division.
Comments
Profile
NHH is an alternative healthcare, nutritional products and beauty group
which has two operations:
- a manufacturer, wholesaler and distributor of healthcare and nutritional
products in South Africa and internationally through Nutri Health, Natural
Health Supplements, Avid Brands, Nature's Dispensary, Physician's Own and
Global Nutritional Manufacturers; and
- a distributor of fragrances and cosmetics through Campbell & Thiselton
Group. Subject to shareholders approval, this business has been sold
effective 28 February 2002.
NHH is quoted in the Healthcare sector of the JSE Securities Exchange South
Africa ("JSE").
Audited results
The results for the year were disappointing with operating profit of R2,2
million earned on revenue of R83,6 million. Headline earnings per share were
a negative 0,12 cents.
The results reflect the soft retail demand in both the healthcare and beauty
sectors. The cosmetics division was severely affected by the depreciation of
the Rand. Forex losses amounting to R2,5 million were incurred in the second
six months of the year.
The exceptional gain includes an amount of R3,7 million recovered from the
insurers in respect of Coronet Equities (Pty) Limited.
Disposal of the fragrance and cosmetics business of Campbell & Thiselton SA
(Pty) Limited ("C&T")
The NHH board resolved on 11 February 2002 to dispose of the fragrance and
cosmetics business of C&T effective 28 February 2002. The disposal
announcement was published on 11 March 2002. The disposal is conditional on
the approval of the NHH shareholders in general meeting to be held on or
about 23 May 2002. The pro forma figures presented show the effects of the
disposal.
Growth and acquisitions
- During the period the group acquired Avid Brands (Pty) Limited, a
marketing and sales orientated company focussed on individual brand
development specific to the retail healthcare sector.
- The group increased its interest in NutriHealth International Limited to
60%.
- The group's international operations are expanding steadily with
additional master franchise agreements having been signed for Russia,
Argentina and Brazil.
Dividend
Dividends may vary or be waived depending on the group's cash requirements.
No dividend has been declared for the current year.
Cautionary announcement
Shareholders' attention is drawn to the cautionary announcement published on
12 April 2002 advising that Nutri Global Limited has made an offer to
acquire all of the ordinary shares in NHH not held by Cabot Janus Private
Equity 1 Limited, RSA Holdings Limited and TN Wall/Wall Family Trust, which
jointly hold 76 002 597 NHH shares, for a cash payment of 25 cents per
share. In this regard a separate announcement is published today.
Directorate
Mr I Deetlefs resigned as non-executive chairman on 1 November 2001 and Mr
TN Wall resigned from the board as executive director on 28 February 2002.
Mr CS Seabrooke was appointed chairman and Messrs M Antonie and C Bothner
were appointed to the board as non-executive directors on 1 November 2001.
Mr PN Jonker was appointed as executive director on 22 April 2002.
Prospects
Trading conditions in Southern Africa have been difficult in the last
financial year and consumer spending remains tight. However we remain
cautiously optimistic for the year ahead.
For and on behalf of the board
Christopher Seabrooke Kim Talmage
Chairman Chief executive officer
Midrand
23 April 2002
Directors: CS Seabrooke* (chairman), KR Talmage (chief executive officer), M
Antonie*, C Bothner*, PL Gray*, PN Jonker, R Pleaner*, NN Rodrigues++, Dr GL
Wenteler. *Non-executive ++Company secretary
Registered address: Natural Health Place, Howick Mews, Waterfall Park,
Midrand 1685. (PO Box 3174, Midrand 1685).
Transfer secretaries: Computershare Investor Services Limited, 10th Floor,
11 Diagonal Street, Johannesburg 2001. (PO Box 1053, Johannesburg 2000).
