| Fri 18 Oct 2002, 17:38 | | Burlington Industries Limited - Interim report for |
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Burlington Industries Limited - Interim report for the six months ended 30 June
2002
Burlington Industries Limited and its subsidiaries
Reg no 1946/021549/06
Share code: BUR ISIN: ZAE000001194
Consolidated income statement
for the six months ended 30 June 2002
30.6.2002 30.6.2001 31.12.2001
Audited
R R R
Turnover 9 117 000 7 947 000 13 288 239
Cost of sales 4 719 000 4 351 000 7 572
Gross profit 4 398 000 3 596 000 5 716 000
Other operating costs (3 394 000) (2 677 000) (4 255 000)
Operating profit before finance
charges 1 004 000 919 000 1 491 000
Finance charges (699 000) (648 000) (1 383 000)
Profit before taxation 305 000 271 000 108 000
Taxation - - 1 000
Net profit for the period 305 000 271 000 107 000
Weighted average number of
ordinary shares 600 000 600 000 600 000
Earnings per ordinary shares 50,9 45,2 16,9
(cents)
Headline earnings per
ordinary share (Note 3) 54,5 48,8 25,2
Dividends per ordinary share - - -
(cents)
Consolidated balance sheet
at 30 June 2002
30.6.2002 31.12.2001
Audited
R R
Assets
Non current assets 11 645 000 11 729 000
Tangible assets (Note 2) 10 680 000 10 701 000
Intangible assets 965 000 1 028 000
Current assets 14 910 000 15 096 000
26 555 000 26 825 000
Equity and liabilities
Equity and reserves 5 357 000 5 052 000
Ordinary shareholders` interest 5 257 000 4 952 000
Preference share capital 100 000 100 000
Non current liabilities 15 346 000 15 283 000
Current liabilities 5 852 000 6 490 000
26 555 000 26 825 000
Consolidated cash flow statement
for the six months ended 30 June 2002
30.6.2002 30.6.2001 31.12.2001
Audited
R R R
Cashflow from operating 50 000 (995 000) (1 473 000)
activities
Cash flows from investing (155 000) 98 000 (383 000)
activities
Cash flows from financing 64 000 (163 000) 973 000
activities
Net decrease in cash and
cash equivalents (41 000) (1 060 000) (883 000)
Cash and cash equivalents at the
beginning of the period (3 195 000) (2 313 000) (2 313 000)
Cash and cash equivalents at the
end of the period (3 236 000) (3 373 000) (3 196 000)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Ordinary Preference Non-dis- Distrib-
share share tributable utable
capital capital reserve reserves Total
Group R R R R R
Balance at 1
January 2002 300 000 100 000 5 154 000 (502 000) 5 052 000
Net profit for
the period 305 000 305 000
Transfer to
distributable
reserves (5 154 000) 5 154 000
Balance at 30
June 2002 300 000 100 000 - 4 957 000 5 357 000
NOTES TO THE FINANCIAL STATEMENTS
1. Accounting policies
The financial statements are prepared on the historical cost basis, adjusted by
the revaluation of land and buildings as detailed below, and incorporate the
principal accounting policies set out below which are consistent with those of
the previous year. These policies comply with Statements of South African
Generally Accepted Accounting Practice. The financial statements are prepared on
a going concern basis.
1.1 Basis of consolidation
The consolidated financial statements incorporate those of the company and all
of its subsidiaries. The results of subsidiaries acquired or disposed of during
the year are included from the effective dates of acquisition and up to the
effective dates of disposal. Differences between the consideration paid for
subsidiaries acquired and the fair value of their identifiable net assets at
dates of acquisition are expressed as goodwill or reserve on acquisition of
subsidiaries. Unrealised income arising from transactions within the group and
inter-company balances have been eliminated.
1.2 Tangible assets
The group owns two investment properties, both are stated at fair value.
Independent valuations will be obtained yearly.
Gains or losses arising from a change in fair value are included in net profit
or loss for the period in which it arises.
Assets held under finance leases are capitalised. At the commencement of the
leases, these assets are reflected at open market value and the related
liability is recognised at an equivalent amount. Finance charges are written-off
over the periods of the leases based on the effective rates of interest.
Depreciation is provided on all tangible assets, other than land and buildings,
to write down the cost, less estimated residual value, over their estimated
economic lives as follows:
Electrical equipment 15% per annum reducing balance method
Factory furniture 10% per annum reducing balance method
Motor vehicles 10% per annum straight line method
Office equipment 10% per annum reducing balance method
Plant and machinery 7,5% to 15% per annum reducing balance method
1.3 Intangible assets
Goodwill
Goodwill is the excess of the cost of an acquisition over the company`s interest
in the fair value of the identifiable assets and liabilities accrued at
acquisition date. Depreciation is being provided on goodwill to write down the
cost over twenty years.
Development expenditure
Development costs comprise all costs that are directly attributable to
development activities or that can be allocated on a reasonable basis to such
activities.
Development costs are recognised as an asset only when it is probable that the
costs will give rise to future economic benefits and the costs can be measured
reliably. Development costs are amortised on the straight line basis at rates
considered to be appropriate to the time period in which benefits are expected
from the sale or use of the products. Development costs are further written down
to the extent that the unamortised balances will in all probability no longer be
recovered from expected future economic benefits.
1.4 Inventories
Inventories are valued at the lower of cost or estimated net realisable value.
Raw materials are valued at invoice cost on a first-in-first-out basis.
Work-in-progress and finished goods include raw materials, labour and factory
overheads.
1.5 Translation of foreign currencies - Foreign entities
All assets and liabilities are translated at the closing rate.
Income statement items are translated at an appropriate weighted average
exchange rate for the year.
Exchange differences are taken directly to the foreign currency translation
reserve.
1.6 Employee Benefits
Defined contribution plan
Contributions to a defined contribution plan in respect of service in a
particular period are recognised as an expense in that period.
1.7 Revenue
Turnover is defined as sales to customers and finance charges and excludes value
added tax.
1.8 Cost of sales
Cost of sales consists of the cost of inventories sold during the year including
related overhead costs.
1.9 Cash and cash equivalents
Cash and cash equivalents consist of cash on hand and balances with banks and
other financial institutions and investments in money market instruments.
30.06.2002 31.12.2001
Audited
R R
2. Tangible assets
Cost
Plant, vehicles and equipment 7 014 000 6 977 000
Valuation
Investment property 7 253 000 7 120 000
14 267 000 14 106 000
Accumulated depreciation
Plant, vehicles and equipment 3 587 000 3 405 000
Net carrying value
Investment property 7 253 000 7 129 000
Plant, vehicle and equipment 3 427 000 3 572 000
10 680 000 10 701 000
Movement for year
Capital expenditure
- Investment property 124 000
- Plant, vehicles and equipment 38 000 446 000
Disposals
- Plant, vehicles and equipment (2 000)
Depreciation (182 000) (349 000)
(94 000) 95 000
3. Headline earnings
The calculation of headline earnings per share is
based on earnings of R327 000 (2001: R145 390)
Adjustments to net earnings are detailed below:
Reconciliation between net earnings and headline
earnings
Net profit and loss per income statement 305 000 107 000
Preference dividend - (6 000)
Goodwill amortised 22 000 44 000
Headline earnings 327 000 145 000
Directors` report
We are pleased to report that in the six months period ended 30 June 2002
turnover increased by 14% compared to the same period for last year. This has
resulted in an increase of 9% in operating income to R1 004 000 (previous year
R919 000). Trading conditions in the manufacturing division remains difficult,
however our retail division continues to show strong growth and increased
profitability.
No ordinary dividends have been paid or declared during the period.
For and on behalf of the board
Perry Kawitzky Anthony Kawitzky
Director Director
Cape Town
15 October 2002
Registered Office: Cnr 7th Avenue and Nyman Street, Maitland, 7405
Transfer Office: Ultra Registrars (Pty) Limited, 11 Diagonal Street,
Johannesburg, 2001
Directors: P Kawitzky, P Kawitzky, A Kawitzky, R D Hugo
Date: 18/10/2002 05:30:00 PM Produced by the JSE SENS Department
