| Thu 26 Sep 2002, 8:32 | | African & Overseas Enterprises Limited - Profit An |
|
AFRICAN & OVERSEAS ENTERPRISES LIMITED - PROFIT ANNOUNCEMENT FOR THE YEAR ENDED
30 JUNE 2002
African & Overseas Enterprises Limited
Registration number 1947/027461/06
JSE Share Codes AOO - AON
ISIN codes ZAE000000485 - ZAE000009718
PROFIT ANNOUNCEMENT FOR THE YEAR ENDED 30 JUNE 2002
INCOME STATEMENT
Consolidated (R`000)
2002 2001
(Reviewed) (Audited)
Revenue 331 347 281 133
Net operating income before depreciation 14 453 9 710
Depreciation 8 516 8 613
Net operating income 5 937 1 097
Net interest received 3 035 3 946
Income before exceptional item 8 972 5 043
Exceptional item - 1 191
Income before taxation 8 972 6 234
Taxation 2 716 1 942
Income after taxation 6 256 4 292
Attributable to outside shareholders in subsidiaries 2 225 964
4 031 3 328
Preference dividends
Paid 116 154
Net income attributable to ordinary
and `N` ordinary shareholders 3 915 3 174
Earnings per share (cents) 34.4 27.9
Headline earnings per share (cents) 34.4 17.4
Proposed dividend per share (cents) 20.0 20.0
Weighted average number of equity shares
on which earnings per share is based (000) 11 387 11 387
Number of equity shares in issue (000) 11 387 11 387
BALANCE SHEET
Assets
Non-current assets 35 236 34 974
Fixed assets 27 557 29 457
Investments (unlisted) 5 744 4 765
Deferred taxation 1 935 752
Current assets 161 445 155 688
Inventory 100 093 94 683
Debtors 36 358 25 153
Taxation 205 217
Cash 24 789 35 635
Total assets 196 681 190 662
Equity and liabilities
Capital and reserves 93 619 91 778
Share capital 1 200 1 200
Share premium 6 616 6 616
Non-distributable reserves 2 608 2 405
Distributable reserve 83 195 81 557
Minority interest 75 019 73 808
Current liabilities 28 043 25 076
Accounts payable 28 043 25 076
Total equity and liabilities 196 681 190 662
ABRIDGED CASH FLOW STATEMENT
Cash generated by operations 14 357 9 635
Working capital changes (13 648) (7 755)
Interest received (net) 3 035 3 946
Taxation paid (3 887) (6 084)
Dividends paid (3 576) (5 802)
Net cash outflows from operations (3 719) (6 060)
Net cash outflows from investing activities
including additions to fixed assets (7 497) (9 659)
Net decrease in cash (11 216) (15 719)
Cash at the beginning of the period 35 635 51 354
Effect of foreign exchange rate changes 370 -
Cash at the end of the period 24 789 35 635
OTHER INFORMATION
Capital expenditure 6 646 8 385
Capital commitments
Contracted for 3 196 117
Authorised - not contracted for 3 303 1 712
Current ratio 5.8 6.2
STATEMENT OF CHANGES IN EQUITY
Share capital 1 200 1 200
Share premium 6 616 6 616
Non-distributable reserves
Opening balance 2 405 3 500
Transfer 203 (1 095)
2 608 2 405
Distributable reserve
Opening balance as previously reported 80 416 78 190
Effect of AC135 (1 505) (1 436)
Effect of AC107 2 646 3 836
Opening balance restated 81 557 80 590
Income after taxation 4 031 3 328
Transfer from non-distributable reserves - 1 095
Dividends paid (2 393) (3 456)
83 195 81 557
Accounting policies
The financial statements comply with South African Statements of Generally
Accepted Accounting Practice. Accounting policies used are consistent with those
applied in the prior year, except as follows:
In accordance with the revised statement AC107: Post balance sheet events,
dividends and the related STC charges are now recognised on the date of
declaration. The statement of changes in equity and the relevant comparative
figures have been restated.
Following the introduction of AC135: Investment properties, depreciation is
now provided on owner-occupied properties in accordance with AC123: Property,
plant and equipment. Comparative figures have been restated to reflect the
change as if the policy had been applied retrospectively. This change has the
effect of decreasing profit after tax by R0,124 million (2001: R0,124 million).
Comment
The principal operating subsidiary, Rex Trueform Clothing Company Limited
reports as follows:
"The board is pleased to report a significant turnaround in the group`s
business over the past half year. This improvement is largely due to a solid
performance by Queenspark and a significant increase in exports. Revenue for the
full year at R331 million was 17,9% higher than for the corresponding period of
the previous year. Operating income amounted to R4.183 million compared to a
loss of R118 000 in 2001. Notwithstanding the lower level of interest received
because of lower interest rates and cash balances, headline earnings for the
year at 23.7 cents per share were 132% higher than those achieved in the
previous year. The restructuring of the business is enabling management to focus
more directly on the separate manufacturing and retail operations. Queenspark is
leaner, costs are under control, and it sells highly acceptable products. It is
accordingly well positioned to benefit from any futher upturn in consumer
demand. Having increased its exports, the manufacturing business is now much
more viable. Thus both of these operations are now poised to reap the benefits
of developments which have taken place in the last year. The group remains
financially strong. Substantial cash balances have been maintained and growth of
the business will be financed internally."
Dividends
The board has recommended that a cash dividend of 20.0 cents per share be
declared on the ordinary and `N` ordinary shares. Shareholders will be asked to
consider, and if deemed fit, approve this recommendation of the directors at the
annual general meeting of the company to be held on 8 November 2002. An
announcement advising the last day to trade cum dividend will be made 8 November
2002, following the annual general meeting.
In terms of the articles of association, the 6% cumulative participating
preference shares carry the right to receive an additional 1/2% dividend for
every completed 11/4% dividend in excess of 21/2% declared on the ordinary
shares in any one financial year. Preference shareholders will therefore be
entitled to an extra dividend of 15,0% (30,0 cents per share) which will be
included in the half-yearly payment in December 2002.
Review by independent auditors
The financial information has been reviewed by Arthur Andersen & Co, whose
unqualified review opinion is available for inspection at the company`s
registered office. It is anticipated that an unqualified audit opinion will be
issued once the detailed financial statements have been finalised.
Signed on behalf of the board:
Stewart C Shub George M Thomas
(Chairman) (Director)
Cape Town
23 September 2002
Transfer secretaries: Registered office:
Computershare Investor Services Limited Rex Buildings
10th Floor, 11 Diagonal Street 263 Victoria Road
Johannesburg, 2001 Salt River, Cape, 7925
Directors: S C Shub (Chairman), C E A Radowsky, P E Shub, C A Stride,
G M Thomas Secretary: C J Merrett (British)
Date: 26/09/2002 07:28:00 AM Produced by the JSE SENS Department
