| Thu 26 Sep 2002, 9:18 | | Rex Trueform Clothing Company Limited - Profit Ann |
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REX TRUEFORM CLOTHING COMPANY LIMITED - PROFIT ANNOUNCEMENT FOR THE YEAR ENDED
30 JUNE 2002
Rex Trueform Clothing Company Limited
Registration number 1937/009839/06
JSE Share Codes RTO - RTN
ISIN Codes ZAE000006144 - ZAE000009700
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 12 699 8 495
Depreciation 8 516 8 613
Net operating income 4 183 (118)
Net interest received 2 690 3 661
Income before taxation 6 873 3 543
Taxation 1 966 1 429
Income after taxation 4 907 2 114
Preference dividends 16 16
Net income attributable to ordinary and
`N` ordinary shareholders 4 891 2 098
Headline earnings per share (cents) 23.7 10.2
Proposed dividend per share (cents) 12.5 12.5
Weighted average number of equity shares
on which earnings per share is based (000) 20 642 20 642
Number of equity shares in issue (000) 20 642 20 642
BALANCE SHEET
Assets
Non-current assets 36 684 36 423
Fixed assets 29 004 30 905
Investments (unlisted) 5 744 4 765
Deferred taxation 1 936 753
Current assets 157 788 152 003
Inventory 100 093 94 683
Debtors 36 250 24 965
Taxation 364 182
Cash 21 081 32 173
Total assets 194 472 188 426
Equity and liabilities
Capital and reserves 165 825 163 144
Share capital 1 777 1 777
Share premium 25 847 25 847
Non-distributable reserves 379 9
Distributable reserve 137 822 135 511
Current liabilities 28 647 25 282
Accounts payable 28 647 25 282
Total equity and liabilities 194 472 188 426
ABRIDGED CASH FLOW STATEMENT
Cash generated by operations 12 608 8 420
Increase in working capital (13 330) (7 975)
Interest received (net) 2 690 3 661
Taxation paid (3 331) (5 331)
Dividends paid (2 596) (5 177)
Net cash outflows from operations (3 959) (6 402)
Net cash outflows from investing activities
including additions to fixed assets (7 503) (12 737)
Net decrease in cash (11 462) (19 139)
Cash at the beginning of the period 32 173 51 312
Effect of foreign exchange rate changes 370 -
Cash at the end of the period 21 081 32 173
OTHER INFORMATION
Capital expenditure 6 646 12 494
Capital commitments
Contracted for 3 196 117
Authorised - not contracted for 3 303 1 712
Current ratio 5.5 6.0
STATEMENT OF CHANGES IN EQUITY
Share capital 1 777 1 777
Share premium 25 847 25 847
Non-distributable reserves
Opening balance 9 1 104
Transfer 370 (1 095)
379 9
Distributable reserve
Opening balance as previously reported 135 352 134 292
Effect of AC135 (2 743) (2 619)
Effect of AC107 2 902 5 806
Opening balance restated 135 511 137 479
Income after taxation 4 907 2 114
Dividends (2 596) (5 177)
Transfer from non-distributable reserves - 1 095
137 822 135 511
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 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.
Prospects
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.
Dividend
In view of the underlying strength of the group, the board decided in 2001 to
distribute the full attributable earnings for the June 2001 financial year.
While earnings for the June 2002 financial year have shown a marked improvement,
the board considers that it would be prudent to rebuild the dividend cover to a
more appropriate level. The board has accordingly recommended to shareholders
that the dividend on the ordinary and `N` ordinary shares be maintained at 12.5
cents per share. 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.
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 Alan A Hodgkinson
(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), A J Badenhorst, G Bradley, M R Danford
(British), V Hardy (British), A A Hodgkinson, J C O`Brien,
C E A Radowsky, A M Shub, P E Shub, C A Stride, D R Sykes,
G M Thomas
Secretary: African & Overseas Enterprises Limited
Date: 26/09/2002 07:29:00 AM Produced by the JSE SENS Department
