| Tue 12 Nov 2002, 9:53 | | Beige Holdings Limited - Interim Results |
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Beige Holdings Limited - Interim Results
Beige Holdings Limited
Registration No: 1997/006871/06
Share code: BEG ISIN code: ZAE000034161
("Beige" or "the company")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2002
Group Income Statements
Unaudited for Unaudited for Audited for
the 6 months the 6 months the 12 months
ended ended ended
31 August 31 August 28 February
2002 2001 2002
R`000 R`000 R`000
Revenue 28 698 18 828 39 251
Cost of sales (16 675) (11 156) (22 006)
Gross profit 12 023 7 672 17 245
Other operating expenses (10 660) (7 361) (14 276)
Depreciation (223) (146) (394)
Exceptional items 978 - (965)
Operating profit 2 118 165 1 610
Income from investments 30 142 208
Net profit from activities
before finance charges 2 148 307 1 818
Finance charges (319) (248) (235)
Net profit before taxation 1 829 59 1 583
Taxation (156) - 2 270
Net profit for the period 1 673 59 3 853
Calculation of headline earnings R`000 R`000 R`000
Net profit for the period 1 673 59 3 853
Exceptional items (Note 1) (978) - 965
Deferred tax asset raised - - (2 273)
Goodwill amortised 473 - *315
Negative goodwill recognised
as income (32) - *(691)
Loss on disposal and impairment
of plant and equipment - - 47
Headline earnings for the period 1 136 59 *2 216
* Restated from last published
reviewed results to audited results.
Ordinary shares in issue (000`s)
- Total 155 000 90 715 95 125
- Weighted 95 781 90 715 92 552
Earnings per share information
Attributable earnings
per share (cents) 1.75 0.07 4.16
Headline earnings
per share (cents) 1.19 0.07 *2.39
Fully diluted headline earnings
per share (cents) (Note 2) 0.73
Additional information after
minority interest (Note 3)
Attributable earnings per
share (cents) 1.58
Headline earnings per
share (cents) 1.02
Fully diluted headline
earnings per share (cents) 0.63
Notes
1. Represents the recovery of amounts paid over to Nedcor Limited during the
year ended 28 February 2001 in terms of cross-guarantees signed by Beige for
former subsidiary companies that were disposed of by Beige during the February
2001 financial year.
2. Fully diluted headline earnings per share is reflected incorporating the
issue of shares on 28 August 2002 relating to the effective acquisition of 51%
of the business and assets of Get Fresh Cosmetics (SA) (Pty) Ltd ("Get Fresh")
and 100% of Zizmax Investments (Pty) Ltd t/a Dudley Products ("Dudley`s) as
though the shares were in issue for the full period under review, but excludes
the rights offer shares which were issued after 31 August 2002.
3. In terms of South African Statements of GAAP the minority share of profits
will not be reflected in the income statement until such time as the
subsidiary`s assets exceed its liabilities (primarily comprising a loan account
owing to the holding company). In the interest of full disclosure additional
earnings per share information has been disclosed to show the effect of
accounting for minorities` share of profit.
Group Balance Sheets
Unaudited Unaudited Audited
31 August 31 August 28 February
2002 2001 2002
R`000 R`000 R`000
ASSETS
Non-current assets 5 667 686 6 985
Property, plant and equipment 1 076 686 1 076
Investment - intangibles 1 855 - 2 296
Deferred taxation 2 116 - 2 273
Medium term receivable
- Le-Sel Settlement 620 - *1 340
Current assets 25 941 14 901 20 834
Inventories 8 316 6 427 6 890
Accounts receivable - trade 13 369 7 508 *12 945
other 3 789
Taxation prepaid 30 249 202
Cash resources 437 717 797
Total assets 31 608 15 587 27 819
EQUITY AND LIABILITIES
Capital and reserves 10 003 539 4 737
Shareholders` funds 10 003 539 4 737
Non-current liabilities 1 829 1 579 1 924
Long-term liabilities 1 829 1 579 1 924
Current liabilities 19 777 13 469 21 158
Accounts payable - trade 12 261 11 605 19 547
acquisition and other 4 846
Current portion of long-term
Liabilities 209 460 21
Taxation 588 96 588
Bank overdraft 1 873 1 308 1 002
Total equity and liabilities 31 608 15 587 27 819
* Restated from last published
results for improved disclosure
Ordinary shares in issue (000`s) 155 000 90 715 95 125
Net asset value per share (cents) 6.45 0.59 4.98
Net tangible asset
value per share (cents) 5.26 0.59 2.57
Abridged Group Cash Flow Statement
Unaudited for the Unaudited for Audited for the
6 months ended 6 months ended 12 months ended
31 August 2002 31 August 2001 28 February 2002
R`000 R`000 R`000
Net cash outflow from
operating activities (4 694) (1 804) (1 613)
Net cash outflow from
investing activities (223) (32) (743)
Net cash inflow/(outflow)
from financing activities 3 686 (156) 750
Net decrease in cash and
cash equivalents (1 231) (1 992) (1 606)
Cash and cash equivalents
at beginning of period (205) 1 401 1 401
Cash and cash equivalents
at end of period (1 436) (591) (205)
Group Statement of Changes in Equity
Share Share Accumulated Total
Capital premium loss
R`000 R`000 R`000 R`000
Balance at 28 February 2001 907 86 230 (86 657) 480
Shares issued in settlement of debt 44 360 404
Profit for the year 3 853 3 853
Balance at 28 February 2002 951 86 590 (82 804) 4 737
Issue of shares for acquisitions 599 2 994 - 3 593
Profit for the period 1 673 1 673
Balance at 31 August 2002 1 550 89 584 (81 131) 10 003
COMMENTARY
The directors of Beige are pleased to announce solid interim results for the six
months ended 31 August 2002 reflecting a significantly improved performance over
the same period in the prior year. The accounting policies adopted for purposes
of this interim report comply, and have been consistently applied in all
material respects, with South African Statements of Generally Accepted
Accounting Practice.
RESULTS
During the six months under review, the company experienced significant growth,
both organic and through its acquisition of Dudley`s and Get Fresh, and achieved
good results reporting earnings of R1.67 million and headline earnings of R1.14
million (2001: R59 000). Revenue increased by 52% to R28.7 million whilst
operating profit, excluding exceptional items, increased by just under R1
million from R165 000 in the prior year. The results include those of the two
acquisitions, acquired with effect from 01 November 2001, which acquisitions
were approved at the general meeting of shareholders on 28 August 2002, along
with other transactions.
In addition Beige has strengthened its executive team through the appointment of
three new directors to its board: Marlene von Berg, Mark Di Nicola and Craig van
Zeil. All have been fully integrated into the management structure.
Exceptional items
During the period under review Beige recovered an amount of R978 000 that had
been paid over to Nedcor Limited during the year ended 28 February 2001 in terms
of cross-guarantees signed by Beige for former subsidiary companies that were
disposed of by Beige during the February 2001 financial year. This amount has
been reflected as an exceptional item.
Subsequent events
As announced in the press and included in a circular to shareholders dated 13
August 2002 Beige had a rights offer to shareholders, which rights offer closed
on 06 September 2002 and was fully underwritten. The proceeds of the rights
offer have been utilised primarily to fund the cash portion of the purchase
price of the acquisitions which were included in accounts payable at 31 August
2002 and to reduce old interest bearing debt which had arisen from the prior
restructuring and relisting of Beige.
Dividends
No dividend has been declared for the six months ended 31 August 2002.
GROUP REVIEW
Beige manufactures and distributes cosmetics, soaps, laundry soaps and allied
products for bath and body. The company operates through five, clearly-focused
subsidiaries:
- Argo Soap and Chemical Industries (Proprietary) Limited, manufacture of
laundry soaps;
- Specialty Formulas (Proprietary) Limited, manufacture of high quality
glycerine and vegetable soaps and allied products;
- Sponge Textures (Proprietary) Limited, cutting and distribution of sponge
and allied products to the beauty and retail industry;
- Beige Factory Shoppe (Proprietary) Limited t/a Get Fresh, manufacturer of
high quality soaps, scrubs and bath products for the luxury, gift and export
markets; and
- Zizmax Investments (Proprietary) Limited t/a Dudley Products, manufacturer
specialising in depilatory, epilatory and cosmetic products.
PROSPECTS
The company is trading well, entering its traditionally busier period, and
expects to be on budget for the remainder of the year. The acquired companies,
Dudley`s and Get Fresh, have settled into Group operations very well and as a
result, Beige has expanded its client base, increased its product range and has
increased the export potential of the group, the effects of which should come
through during the next six months.
Beige`s focus will remain on upholding its ranking as a significant player in
its niche market, as well as expanding its reach through the constant sourcing
of export opportunities. With the stronger management team in place, the
restoration of profitability and the finalisation and approval of the
acquisitions, Beige can now focus more intently on growing its business.
By order of the Board
Kevin de Villiers, Chairman John Rawlings, Chief Executive Officer
06 November 2002
Johannesburg
Registered office
Arcay House II, Number 3 Anerley Road, Parktown, 2193 PO Box 62397,
Marshalltown, 2107
Transfer secretaries
Computershare Investor Services Limited
Directors KDD de Villiers* Chairman, JH Rawlings** Chief Executive Officer, IL
Stromin, LI Karp*, MK von Berg, C van Zeil, MM Di Nicola
*Non-executive director
**American
Date: 12/11/2002 07:10:00 AM Produced by the JSE SENS Department
