| Wed 11 Sep 2002, 16:49 | | Ventel - Preliminary Audited Results |
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Ventel - Preliminary Audited Results
Venter Leisure and Commercial Trailers Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 1985/070343/06)
Share Code: VTL ISIN: ZAE 000007811
("VENTEL")
PRELIMINARY AUDITED RESULTS FOR THE YEAR ENDED 31
DECEMBER 2001
The audited results of Ventel and its subsidiaries for the year ended 31
December 2001 are set out below:
BALANCE SHEET Audited
31 December
2001 2000
Assets
Non-current assets 7 849 8 185
Property, plant and machinery 7 797 6 049
Investments 52 401
Deferred taxation - 1 735
Current assets 11 109 16 879
Inventories 4 168 5 842
Accounts receivable 6 940 10 967
Cash resources 1 70
Total assets 18 958 25 064
Equity and liabilities
Share capital and reserves 3 663 14 888
Issued capital and share premium 27 729 27 729
Accumulated loss (24 (12
066) 841)
Non-current liabilities 2 600 290
Long-term liabilities 1 909 290
Deferred taxation 691 -
Current liabilities 12 695 9 886
Accounts payable 8 699 7 857
Taxation 232 232
Bank overdraft 3 764 1 797
Total equity and liabilities 18 958 25 064
Net asset value per share (cents) 7.3 29.5
Net tangible asset value per share 7.3 29.5
(cents)
ABRIGED STATEMENT OF CHANGES IN
EQUITY
Equity beginning of year 14 888 14 716
Net profit for the year (11 172
225)
Equity end of year 3 663 14 888
INCOME STATEMENT
Gross revenue 44 444 53 748
Operating profit/(loss) (7 983) 993
Investment income 7 22
Finance expenses (823) (701)
Net profit/(loss) (8 799) 314
Taxation (2 426) (142)
Net profit/(loss) (11 172
225)
Average number of shares in issue 50 495 50 495
(`000)
Earnings/(loss) per share (cents) (22.2) 0.3
Headline earnings/(loss) per share (22.2) 0.3
(cents)
CASH FLOW STATEMENT
Operating activities (1 187) 2 135
Investing activities (2 468) (1
980)
Financing activities 1 619 179
Net cash generated/(utilised) (2 036) 334
Cash and cash equivalents beginning (1 727) (2
of year 061)
Cash and cash equivalents end of year (3 763) (1
727)
Commentary
On 9 April 2002, control of the Ventel Group of Companies was acquired by
Dunrose Investments 143 (Proprietary) Limited, a company in which I have a
direct interest A series of court actions disputing this change of control
ensued, culminating in a meeting of shareholders on 17 May 2002 to reconstitute
the Board of Directors of your company. The appointments made at that meeting
were confirmed by a court order granted on 23 May 2002 and the change of control
was confirmed.
I gained access to the Ventel Group`s operations for the first time on 24 May
2002. It was clear that the business was run down. No investment had been made
in plant and machinery, nor in research or development and it was clear that
very little maintenance had been carried out for some time, owing to a lack of
capital. As the company had limited resources, creditors had not been paid and
stock levels were so low that production had come to a standstill. Staff morale
was understandably low.
I set about negotiating terms of payment with the major creditors of the Ventel
Group. Metropolitan Power Services (Proprietary) Limited, a company I control,
has advanced funding to the Ventel Group in order to pay its creditors, purchase
stock and provide working capital. I have also spent a considerable amount of
time at the production facilities in Naboomspruit overseeing production,
increasing the staff morale and having discussions with the dealer network. I
am pleased to report that Ventel is in full production and that we have trailers
in stock once more.
The Year Review and Post Balance Sheet Events
The turnover during the year reduced from approximately R53 million to
approximately R44 million, thus a fall of approximately 17%. The loss for the
year grew to approximately R11 225 000.
The Year Ahead
Although the year ahead will be difficult, I am confident that the Venter brand
name will once again become the pre-eminent brand in trailers. We are going to
focus on a few core areas in order to achieve this:
Equipment will be updated and the production process revamped to ensure that
quality trailers are produced efficiently;
Continued research and development will be undertaken aimed at ensuring that
Venter and associated leisure products, lead the market;
Venter products will be promoted in every possible way;
The dealer network has and will continue to be enhanced and negotiations are
taking place with existing and new distributors to secure a committed dealer
network; and
We are negotiating the possibility of introducing finance facilities for
prospective buyers of trailers, for both the primary and second-hand markets.
Management
I am sure that the past few years have been very difficult for many of the
management and staff. Their continued support has ensured that the Venter
trailer is still recognised as one of the leaders in the industry. I am very
thankful for that and trust that the year ahead will be more rewarding for us
all.
Change in control and mandatory offer to minorities
Shareholders are referred to Ventel`s announcement made today regarding the
mandatory offer, in terms of the Securities Regulation Code on Takeovers and
Mergers, which is being made as a result of the change in control of Ventel.
Accounting Policies
The results were prepared in accordance with the Statements of Generally
Accepted Accounting Practices.
The company`s accounting policies have been consistently applied in producing
these results.
Report of the independent auditors
The financial information contained in this announcement has been audited by
Ventel`s auditors, Meagher Moynihan. A copy of their report is available for
inspection at Ventel`s registered office.
Dividend
No dividend is proposed for this year.
D P Hamann
Johannesburg
11 September 2002
Directors: D P Hamann, G E Hamann, N Hamann, O J La Grange
Registered office Transfer secretaries
154 Axle Road Computershare Investor Services
Devland,2190 Limited
(PO Box 57178, (Registration number 1987/003382/06)
Springfields, 2137) 10th Floor, 11 Diagonal Street
Johannesburg, 2001
(PO Box 7184, Johannesburg, 2000)
Date: 11/09/2002 04:19:18 PM Produced by the JSE SENS Department
