| Fri 27 Sep 2002, 9:51 | | DISTRIBUTION AND WAREHOUSING NETWORK LIMITED |
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DISTRIBUTION AND WAREHOUSING NETWORK LIMITED - PRELIMINARY REVIEWED RESULTS FOR
THE YEAR ENDED 30 JUNE 2002
DISTRIBUTION AND WAREHOUSING NETWORK LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1984/008265/06)
("DAWN" or "the Group")
Alpha code: DAW * ISIN number: ZAE000018834
E-mail: info@dawnltd.co.za * Website: www.dawnltd.co.za
JUST-IN-TIME DISTRIBUTION
PRELIMINARY REVIEWEd results for the year ended 30 june 2002
Group income statement
Reviewed Audited
12 months 12 months
30 June 30 June
2002 2001
R'000 R'000
Turnover 844 922 808 590
- Continuing operations 802 222 691 622
- Discontinued operations 42 700 116 968
Operating profit 33 043 51 025
- Continuing operations 44 111 51 018
- Discontinued operations (11 068) 7
Net finance costs (5 100) (3 332)
Profit before exceptional items 27 943 47 693
Exceptional items (1 961) (17 452)
Profit before taxation 25 982 30 241
Taxation (6 334) (9 987)
Earnings for the year 19 648 20 254
Included above
Depreciation 8 968 6 859
Operating lease charges 7 776 8 364
Exceptional items 1 961 17 452
- Loss on discontinued operations 5 899 5 910
- Profit on sale of business (4 138) -
- Rationalisation expenditure - 7 688
- Provision for onerous obligations
in respect of delay of computer
system implementation - 3 654
- Amortisation of goodwill 200 200
Tax relief (1 770) (3 402)
191 14 050
Headline earnings 19 839 34 304
(after adjustment for exceptional items)
Statistics
Number of shares ('000)
- in issue 298 627 298 627
- held in treasury 12 341 -
- weighted average 289 992 291 318
Headline earnings per share (cents) 6,84 11,78
Headline earnings per share from
continuing operations (cents) 10,66 11,77
Attributable earnings per share (cents) 6,78 6,95
Operating profit (%) 3,91 6,31
GROUP CASH FLOW STATEMENT
Reviewed Audited
12 months 12 months
30 June 30 June
2002 2001
R'000 R'000
Cash flow from operating activities 29 781 14 368
Cash flow from investing activities 8 694 (26 090)
Cash flow from financing activities (9 769) (1 464)
Increase/(decrease) in cash resources 28 706 (13 186)
Cash resources at beginning of year (9 922) 3 264
Cash resources at end of year 18 784 (9 922)
GROUP BALANCE SHEET
Reviewed Audited
30 June 30 June
2002 2001
R'000 R'000
Assets
Non-current assets
Property, plant and equipment 24 770 26 986
Intangible assets 600 800
Investments - 524
Current assets 262 828 248 946
Inventory 94 199 91 246
Receivables and prepayments 149 845 157 700
Cash and cash equivalents 18 784 -
288 198 277 256
Equity and liabilities
Capital and reserves
Ordinary shareholders' equity 123 705 108 382
Non-current liabilities 9 779 22 852
Interest-bearing liabilities 5 477 9 990
Convertible debentures - 4 482
Deferred tax liabilities 4 302 8 380
Current liabilities 154 714 146 022
Trade and other payables 144 872 129 328
Convertible debentures 4 000 -
Current portion of borrowings 5 842 6 772
Bank overdraft - 9 922
288 198 277 256
Future commitments
Finance leases 10 633 16 082
Operating leases 63 070 63 258
73 703 79 340
Value per share
Asset value per share
- Net asset value (cents) 43,21 36,29
- Market price (cents) 42 45
Financial gearing ratio (%) 12,38 28,76
Current asset ratio (times) 1,70 1,70
STATEMENT OF CHANGES IN EQUITY
Reviewed Audited
12 months 12 months
30 June 30 June
2002 2001
R'000 R'000
Opening balance 108 382 87 840
Attributable earnings 19 648 20 254
Treasury shares acquired (4 325) -
Repayment of share premium - (10 323)
Net shares issued - 10 611
Balance at the end of the year 123 705 108 382
COMMENTARY
FINANCIAL RESULTS
Trading conditions improved substantially during the second half of the year,
after a relatively poor start in the first half of the year under review.
Results were adversely affected by the first half and the losses incurred by
United Express, which was discontinued effective 1 June 2002.
As a result attributable earnings remained relatively flat at R19,6 million.
Nevertheless, sales, net asset value and cash flow improved over the previous
period. The balance sheet remains strong with a gearing of 12,38%.
Post-balance sheet events
* Share repurchase
The repurchase of 98 million shares at a cost ofR46,35 million was approved by
the shareholders with effect from 26 July 2002. This repurchase will have a
positive impact on the earnings per share for the 2003 financial year.
* Discontinued operations
In keeping with the Group's strategy to focus on its strength of wholesale
trading of building and related products, we have discontinued the business of
United Express. The Group was not successful in integrating this business into
its core activities.
* Convertible debentures
The 4 074 546 convertible debentures were redeemed for a cash consideration of
R4 million on 15 July 2002.
PROSPECTS
The Group continues to refocus and drive sales and earnings in its core business
of wholesaling products in the building and related industries. We expect the
momentum in trading conditions experienced in the last two quarters to continue
for the foreseeable future, with its resultant positive impact on the results
for the 2003 financial year.
DIVIDEND
The directors decided not to pay any dividends to conserve cash following the
share repurchase transaction.
DIRECTORS
The Board notes with regret the untimely death of Mr Charl van der Merwe on 12
September 2002, and extends its sincere condolences to his family. Charl added
substantial value as a member and Chairman of the Board since 1995 until his
resignation during November 2001.
Lou Alberts was appointed Chairman of the Board on 22 November 2001.
APPRECIATION
The Board would like to thank all our staff, customers and suppliers for their
unwavering and continued support during the period under review. We consider our
relationship with them as a vital part of our competitive advantage and the
results which we have achieved.
NOTES TO THE ABRIDGED FINANCIAL STATEMENTS
There has been no changes in accounting policies during the year ended 30 June
2002. The reviewed results have been prepared in accordance with South African
Statements of Generally Accepted Accounting Practice. PricewaterhouseCoopers
Inc, Chartered Accountants (SA), have reviewed the results and their review
opinion is available for inspection at the company's registered office.
On behalf of the Board
LMAlberts DATod
Chairman Chief Executive Officer
Johannesburg
27 September 2002
REGISTERED OFFICE
2 Keerom Road, Heriotdale Ext 10, Cleveland, Johannesburg 2000
DIRECTORS
LM Alberts* (Chairman), DA Tod (Chief Executive Officer), JABeukes, RL Hiemstra*
*Non-executive
TRANSFER SECRETARIES
Computershare Investor Services Limited, 70 Marshall Street, Marshalltown 2001.
(POBox 61051, Marshalltown 2107)
Date: 27/09/2002 07:43:00 AM Produced by the JSE SENS Department
