| Wed 29 May 2002, 0:00 | | Sweets From Heaven Holdings Limited - Year End |
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SWEETS FROM HEAVEN HOLDINGS LIMITED - YEAR END RESULTS
Sweets From Heaven Holdings Limited
Share Code : HVN
ISIN Code : ZAE000011045
Consolidated Income Statement for the year ended 28 February 2002
Audited 2002 2001
R`000 R`000
Notes
Revenue 36,484 44,470
Profit from operations 853 1,665
Net interest paid (501) (1,558)
Taxation 1 692 (954)
Headline earnings/(loss) 1,044 (847)
Exceptional items 2 (639) (7,833)
Earnings/(loss) for the year 405 (8,680)
Headline earnings/(loss)per 1.31 (1.06)
share(cents)
Earnings/(loss) per share (cents) 0.51 (10.89)
Shares in issue (000`s) 79,795 79,795
Weighted number of shares in issue 79,795 79,795
(000`s)
Consolidated Balance Sheet
As at 28 February 2002
Audited 2002 2001
R`000 R`000
Assets
Non-current assets 8,008 10,149
Fixed Assets 3,974 6,292
Investment in associate company 328 151
Employee share incentive scheme 53 53
Investment in USA 3,653 3,653
Current assets 4,704 4,582
Inventories 1,641 2,317
Trade and other receivables 2,394 1,644
Cash and cash equivalents 669 621
Total assets 12,712 14,731
Equity and liabilities
Capital and reserves 1,847 1,439
Issued capital 20,213 20,213
Accumulated loss (26,733) (27,138)
Subordinated interest free shareholders 8,364 8,364
loans
Non Distributable Reserves 3 0
Non-current liabilities 4,999 6,493
Interest-bearing borrowings 2,211 3,705
Non interest-bearing borrowings 2,788 2,788
Current liabilities 5,866 6,799
Non-interest bearing borrowings 2,242 3,762
Interest bearing borrowings 3,624 3,037
Total equity and liabilities 12,712 14,731
Notes
1. As reported previously the company
objected to certain tax assessments.
The directors together with SARS
have now settled this matter resulting
in a net reversal of R692 000 of
taxation, after expenses incurred.
2. Exceptional items comprise legal
fees incurred in finalising the
subordination
agreements as well as further
overheads specific to the
restructuring.
Abridged Cash Flow Statement
For the year ended 28 February 2002
Audited 2002
R`000
Cash flow from operating activities 389
Cash flow from investing activities 565
Cash flow from financing activities (1,141)
Net decrease in cash and cash (187)
equivalents
Cash and cash equivalents at beginning (1,066)
of the year
Cash and cash equivalents at end of the (1,253)
year
COMMENTARY
It is heartening to report both a headline earnings and net earnings for the
period under review. Three years of hard work has enabled the Heaven Group
to retrace the significant losses of the prior three reporting periods and
emerge as a more resilient, smaller , profitable company. Disposing of our
non performing assets, restructuring the long term debt, and consolidating
into a tight, controlled niche` retail confectionery company, has resulted
in the group now comprising of 20 company owned stores and 38 franchised
outlets in Southern Africa and a strong performing company owned store in
the U.K. Our association with Heaven U.S.A. continues via a structured
franchise arrangement.
In the scenario outlined above the reduced turnover of R 36,484 million from
R 44 ,470 million and the subsequent smaller operational profit of R 853
000, down on last year`s R 1,665 million nevertheless contains the core
elements of a cleaner business with reduced costs and greater earnings.
This is amplified by the significant increase in headline earnings in this
period to R 1,044 million from the headline loss of R847 000 in the 2001
year, and net earnings up to R405 000 from the sizeable loss of R8,680
million in the previous year. This despite tougher trading conditions which
persisted in the second half of the trading period felt mainly as a result
of the fallout from the events of 9/11 in the U.S.A..
The net effect of this filtered through to positive earnings per share
illustrated by the 1.31 cents headline earnings per share in the current
period up from 1.06 cents loss per share in the prior year, and a net profit
of 0.51 cents per share in 2002 displacing the loss of 10.89 cents per share
in 2001.
The balance sheet is also reflective of a leaner business with current and
interest bearing debt further being reduced supported by strong cash flows
from operating and investing activities.
PROSPECTS
With the critical objective of refocusing and restructuring the business now
nearing completion, the platform for future sustainable growth has hopefully
been established.
Select opportunities to open company-owned stores, co-joining with
empowerment partners in exciting retail developments and pursuing a
dedicated franchising model, are all growth strategies with upside
potential.
Continued debt reduction remains a high priority of the group. An area of
concern is the prospect of a further increase in interest rates on the
horizon that could dampen consumer appetites.
Going forward presents the group with more rewarding challenges and the
prudent growth of the group can now gain momentum. The commitment and
passion of our people to fly the Heaven flag high remains our greatest
asset.
ACCOUNTING POLICIES
The financial statement of the group comply in all material respects with
South African statements of Generally Accepted Accounting Practice and are
consistent with those applied in the previous financial year.
DIVIDENDS
No dividends are declared.
On behalf of the board:
Laurie Davidoff Chairman/CEO
Greg Ginsberg Financial Director
27th May 2002
