| Thu 12 Dec 2002, 10:31 | | Mathomo Group Limited - Reviewed Results For The Y |
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Mathomo Group Limited - Reviewed Results for the Year Ended 30 September 2002
Mathomo Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1995/004783/06)
Share code: MTO ISIN: ZAE000010542
("Mathomo" or "the Company")
Reviewed Results for the Year Ended 30 September 2002
CONSOLIDATED INCOME STATEMENT
Reviewed Audited
Year ended Year ended
30 September 30 September
2002 2001 %
R000`s R000`s Change
Revenue 212 502 264 357
Continuing operations 212 502 172 970 22,9
Discontinued operations - 91 387
Operating profit/(loss)
before finance costs 16 120 (14 188)
Continuing operations 16 120 6 323 154,9
Discontinued operations - (20 511)
Net finance costs (12 117) (13 128)
Continuing operations (12 117) (9 972) 21,5
Discontinued operations - (3 156)
Net profit/(loss) before
exceptional items 4 003 (27 316)
Continuing operations 4 003 (3 649) 209,7
Discontinued operations - (23 667)
Exceptional items (12 721) (23 506)
Net loss before taxation (8 718) (50 822)
Taxation (370) (1 220)
Attributable to ordinary shareholders (9 088) (52 042)
Reconciliation of net loss for the
period to headline earnings/(deficit):
Net loss for the period (9 088) (52 042)
Add back exceptional items 12 721 23 506
Headline earnings/(deficit) 3 633 (28 536)
Number of shares in issue 47 179 214 7 258 341
Weighted number of share in issue 26 179 741 7 258 341
Headline earnings/(loss) per share (cents) 13,9 (393,1) 103,5
Loss per share (cents) (34,7) (717,0) 95,2
ABRIDGED CONSOLIDATED CASH FLOW STATEMENT
Reviewed Audited
Year ended Year ended
30 September 30 September
2002 2001
R000`s R000`s
Cash (utilised in)/generated from
operating activities before finance costs (6 658) 4 509
Finance costs paid (12 117) (13 128)
Cash generated from/(utilised in)
investing activities 4 247 (7 424)
Cash generated from/(utilised in)
financing activities 41 145 (6 495)
Net cash inflow/(outflow) for the year 26 617 (22 538)
CONSOLIDATED BALANCE SHEET
Reviewed Audited
as at as at
30 September 30 September
2002 2001
R000`s R000`s
Assets
Non-current assets 14 363 25 120
Property, plant and equipment 14 363 16 785
Investments - 8 335
Current assets 90 018 67 192
Inventories 46 076 31 604
Accounts receivable 43 942 35 588
Total Assets 104 381 92 312
Equity and Liabilities
Capital and reserves 1 065 (7 008)
Ordinary share capital 472 73
Share premium 122 763 106 001
Non-distributable reserve 2 425 2 425
Accumulated loss (124 595) (115 507)
Non-current liabilities 33 631 6 111
Interest bearing liabilities 3 631 6 111
Preference shares 30 000 -
Current liabilities 69 685 93 209
Accounts payable 34 570 27 940
Bank overdrafts 34 962 61 579
Interest bearing liability 153 3 690
Total Equity and Liabilities 104 381 92 312
Net asset value/(deficit) per share (cents) 2,3 (96,6)
ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Reviewed Audited
Year ended Year ended
30 September 30 September
2002 2001
R000`s R000`s
Balance at beginning of the year (7 008) 42 609
Net loss for the year (9 008) (52 042)
Revaluation of property - 2 425
Ordinary shares issued in terms
of the rights offer 17 554 -
Write-off of share issue expenses (393) -
Balance at end of the year 1 065 (7 008)
1. Accounting Policies
The accounting policies of the group conform with Statements of South African
Generally Accepted Accounting Practice and are consistent with those applied
in the previous year.
2. Debt Reduction Programme
Progress on the Debt Reduction Plan as set out in the Annual Report dated, 8
February 2002, is as follows:
* The Rights Offer to raise new capital was successfully concluded. Net
proceeds of R17 554 000 were received on 18 April 2002.
* The winding-up of BRM Marketing (in Liquidation) ("BRM"), the collection of
its debtors` book and the sale of its assets have proceeded as per expectation.
The commercial property previously used by BRM has been sold.
* R30 million of short-term debt was converted to preference share capital on
30 September 2002. Shareholders are referred to the circular to shareholders
dated 3 September 2002.
* An agreement has been concluded for the disposal of the groups` 42,5%
interest in Mathomo Financial Services (Pty) Ltd ("MFS"), a non-core business,
for R3,5 million. This transaction is subject to shareholders` approval in
general meeting.
* Short-term interest bearing debt was reduced from R86,4 million (including
contingent liability exposure at BRM) at 30 September 2001 to R35,8 million
(including contingent liability exposure at BRM) at 30 September 2002.
3. Trading
* Alsafe Protectowear
Alsafe had a very successful trading year with revenue up by 28,8%. The
Cape Town, Johannesburg and Durban divisions are well positioned for the
financial year ahead.
* Select PPE
Progress was made in tightening the operational procedures and sourcing and
distribution model of this division. It recorded it`s first operating profit
since it`s formation four years ago.
* M-Stores
M-Stores performed in accordance with expectations. Significant effort has
been expended in remerchandising and repositioning the stores for growth in the
year ahead.
4. Exceptional Items
2002 2001
Loss on the sale of MFS 4 996 -
Loss on discontinued operations 4 619 4 714
Directors` termination of contract payments 3 074 -
Impairment of loan to share incentive trust 250 1 444
Recovery of losses on Duchini (Pty) Ltd (218) -
Further write-down of Duchini (Pty) Ltd
receivable amount - 16 975
Goodwill write-off - 373
12 721 23 506
Due to the restructuring and closure of all loss making divisions no significant
exceptional items are anticipated in the year ahead.
5. Outlook
The restructuring of the group`s debt along with the refocusing of management
energy and resources on the trading of the business has shown a favourable
outcome. It is anticipated that the group, now relieved of its loss making
divisions and excess debt, will be able to make meaningful strides towards a
secure future.
6. Going Concern
An extensive restructuring exercise was embarked upon during the year, including
the realisation of non-core assets, a rights issue and the issue of preference
shares. The group`s operating entities are trading profitably. The improvement
in the net asset value attributable to ordinary shareholders has improved from a
deficit of R7 million in the prior year to a positive R1 million at year end. In
light of these factors the group is considered, by the directors, to be a going
concern.
7. Review opinion of auditors
The results have been reviewed by the group`s auditors, Fisher Hoffman PKF
(Jhb) Inc. Their unqualified review report is available for inspection at the
company`s registered office.
By order of the Board
Johannesburg
11 December 2002
Date: 12/12/2002 10:02:00 AM Produced by the JSE SENS Department
