| Thu 22 Aug 2002, 0:00 | | Brandcorp Holdings Limited - Audited Results For |
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BRANDCORP HOLDINGS LIMITED - AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2002
BRANDCORP HOLDINGS LIMITED
Incorporated in the Republic of South Africa
Registration number 1992/006647/06
("Brandcorp" or "the group")
JSE Code: BRC
ISIN No.: ZAE000013611
These results can be viewed on our website: www.brandcorp.co.za
HEADLINE EARNINGS PER SHARE INCREASED BY 47%
OPERATING PROFIT INCREASED BY 35%
NET ASSET VALUE PER SHARE INCREASED BY 35%
DIVIDEND PER SHARE INCREASED BY 33%
AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2002
ABRIDGED GROUP INCOME STATEMENT
30 June 2002 30 June 2001 %
Audited Audited change
R000 R000
Turnover 599,546 490,134 22.3
Operating profit 54,178 40,002 35.4
Net interest (paid)/received (926) 2,277
Net profit before taxation 53,252 42,279
Capital items (as detailed below) - 2,242
Taxation (15,919) (12,474)
- Current (13,992) (9,950)
- Secondary tax on companies (882) (713)
- Deferred taxation (1,045) (1,811)
Net profit after taxation 37,333 32,047 16.5
Number of shares in issue (000)* 75,194 136,889
Weighted ave. no. of shares (000) 130,760 152,916
Headline earnings per share - cents 28.6 19.5 46.7
Earnings per share - cents 28.6 21.0 36.2
Diluted earnings per share - cents 27.6 20.7
Dividend per share - cents 8.0 6.0 33.3
*Net of treasury stock
RECONCILIATION OF HEADLINE EARNINGS
30 June 2002 30 June 2001
Audited Audited
R000 R000
Net profit after taxation 37,333 32,047
Adjust for:
Capital items - (2,242)
Profit on disposal of investment (560)
Recovery of vendor claims - (1,990)
Goodwill write-off - 308
Headline earnings 37,333 29,805
ABRIDGED GROUP BALANCE SHEET
30 June 2002 30 June 2001 %
Audited Audited change
R000 R000
ASSETS
Non - current assets 25,689 27,153
Tangible assets 13,755 13,904
Share incentive trust 742 1,012
Deferred taxation 11,192 12,237
Current assets 275,925 257,232
Inventories 123,502 106,533
Accounts receivable 113,746 103,664
Cash and cash equivalents 38,677 47,035
301,614 284,385
EQUITY AND LIABILITIES
Capital and reserves 143,887 193,947
Long term liabilities 52,261 7,296
Current liabilities 105,466 83,142
Non-interest bearing liabilities 85,747 72,642
Interest bearing liabilities 11,439 767
Receiver of Revenue 8,280 9,733
301,614 284,385
Net asset value per share (cents) 191.4 141.7 35.1
ABRIDGED GROUP CASH FLOW STATEMENT
30 June 2002 30 June 2001
Audited Audited
R000 R000
OPERATING ACTIVITIES 25,810 28,055
Operating profit before working
capital movements 57,229 42,678
Increase in working capital 14,166) (9,657)
Net finance (charges)/income (926) 2,277
Capital items - 2,242
Taxation paid (16,327) (9,485)
INVESTING ACTIVITIES (81,811) (34,017)
Purchase of fixed assets (2,971) (10,558)
Proceeds on disposal of fixed
assets 69 295
Ordinary shares repurchased (79,179) (23,424)
Decrease/(increase) in loan
to share trust 270 (330)
FINANCING ACTIVITIES 47,643 (1,324)
Proceeds from borrowings 55,637 7,211
Dividends paid (7,994) (8,535)
NET MOVEMENT IN CASH RESOURCES (8,358) (7,286)
Cash and cash equivalents at the
beginning of the year 47,035 54,321
Cash and cash equivalents at the
end of the year 38,677 47,035
STATEMENT OF CHANGES IN EQUITY
Share Share Distributable Total
Capital Premium Reserve
R000 R000 R000 R000
Balance at 30 June 2000 1,712 121,723 70,446 193,881
Net profit for the period - - 32,047 32,047
Shares repurchased (342) (23,082) - (23,424)
Dividend - - (8,557) (8,557)
Balance at 30 June 2001 1,370 98,641 93,936 193,947
Net profit for the period - - 37,333 37,333
Shares repurchased (617) (78,562) - (79,179)
Dividend - - (8,214) (8,214)
Balance at 30 June 2002 753 20,079 123,055 143,887
SEGMENT ANALYSIS
Turnover Operating Operating Liabilities
Profit Assets
R000 R000 R000 R000
DIY, Tools & Hardware 387,724 40,982 177,752 85,459
Leisure & Accessories 96,846 10,463 56,865 37,054
House & Home 114,976 4,047 41,590 21,051
Other - (1,314) 14,215 14,163
Total 599,546 54,178 290,422 157,727
THE GROUP IS A DISTRIBUTOR OF BRANDED PRODUCTS
MATUS - Tools and hardware
INTERBRAND - CELLINI luggage, handbags and accessories
MIC - Dinnerware, tableware and gifting
PRESTIGE - Kitchen utensils, bakeware and braai accessories
TRADING OVERVIEW
The directors are delighted to report that Brandcorp has delivered an
exceptional set of results for the financial year ended 30 June 2002.
Each of the group`s 3 divisions namely, Tools & Hardware, Leisure & Accessories
and House & Home excelled during the past year.
Turnover increased by 22.3% from R490.1m to R599.5m. Operating profit increased
by 35.4% from R40.0m to R54.2m. Growth has been organic.
Earnings per share increased by 36.2% from 21.0 cents per share to 28.6 cents
per share.
Headline earnings increased by 46.7% from 19.5 cents per share to 28.6 cents per
share.
The balance sheet remains sound with net interest bearing debt at 17.4% of
shareholders equity and a current ratio of 2.6:1.
Net asset value per share increased by 35.1% from 141.7 cents per share to 191.4
cents per share.
Cash flow from operations before working capital movements amounted to R57.2m
against R42.7m in the previous year.
SHARE REPURCHASES
In terms of an agreement entered into with Chester Investment Holdings Limited
("Chester") and approved by shareholders at a general meeting on 6 June 2002,
Brandcorp purchased Chester`s entire shareholding of 58 445 094 shares at a
price of R1.30 per share equating to a total purchase consideration of R75 978
622. A subsidiary has retained 13 363 905 of these shares as treasury stock and
the balance of 45 081 189 shares have been cancelled.
Following this transaction Milton Levine (non-executive Chairman) and Lewis
Freidus who represented Chester on the board, resigned as directors. We thank
them for their tireless efforts, commitment and loyalty to the group.
In addition, the company repurchased 3 259 700 shares on the open market at an
average price of 98.2 cents per share. These shares have been cancelled.
GENERALLY ACCEPTED ACCOUNTING PRACTICE
These financial statements have been prepared on the historical cost basis and
in conformity with South African Statements of Generally Accepted Accounting
Practice. The accounting policies applied in the preparation of these financial
statements are, other than the application of AC 123 (property, plant and
equipment), consistent in all material respects with those applied in the annual
financial statements for the year ended 30 June 2001. This change in accounting
policy is not material and therefore prior year figures have not been restated.
AUDITORS REPORT
These results have been audited by Grant Thornton Kessel Feinstein and their
unqualified audit opinion is available for inspection at the company`s
registered office.
DIVIDEND
Notice is hereby given that the board has declared a dividend of 8 cents per
share. The following salient dates should be noted:
Declaration date Thursday 22 August 2002
Last day to trade cum-dividend Friday 6 September 2002
Trading ex-dividend commences Monday 9 September 2002
Record date Friday 13 September 2002
Dividend payment date Monday 16 September 2002
Share certificates may not be dematerilised or rematerialised between Monday 9
September 2002 and
Friday 13 September 2002 (both dates inclusive).
PROSPECTS
All divisions continue to trade well, growing market share and generating cash.
Your board is confident that should there be no significant deterioration in the
general status of the South African economy, the group will continue to deliver
acceptable returns for its stakeholders.
APPRECIATION
We salute our fellow directors and devoted staff, without whom these results
would not have been achieved.
We pay special tribute to our customers, suppliers and bankers for their
continued support and loyalty, and our professional advisors for their wise
counsel.
On behalf of the board
COLIN DATNOW
CHIEF EXECUTIVE
BRAD TAUROG
CHIEF FINANCIAL OFFICER
22 August 2002
Transfer Secretaries Secretary and Registered Office
Computershare Investor Light and Livingstone Financial
Services Limited Services CC
4th Floor Edura House 3rd Floor, Palm Grove
41 Fox Street 196 Louis Botha Avenue
Marshalltown, Johannesburg, 2107 Houghton Estate, 2198
Directors
CS Datnow, JD Goldberg, JC Livingstone*, HB Marcus, JW Miller*, BD Taurog
(*Non-executive)
Date: 22/08/2002 05:05:04 PM Produced by the JSE SENS Department
