|
EXCELLERATE HOLDINGS LIMITED
Registration number 1997/009884/06
Share code: EXL ISIN: ZAE000026092
- TURNOVER 58%
- OPERATING PROFIT 47%
- HEADLINE EARNINGS PER SHARE 9,4%
- HEADLINE EARNINGS PER SHARE excluding unrealised forex differences
54%
- ISSUE OF COMPULSORILY CONVERTIBLE DEBENTURES RAISES CAPITAL OF R26
m
- INSTITUTIONAL INVESTOR ON BOARD
RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2002
FINANCIAL OVERVIEW
Excellerate has delivered good results with turnover increasing by 58%
to R191 million (2001: R121 million) and operating profit by 47% to
R11,9 million (2001: R8,1 million).
Headline earnings per share increased by 9,4% to 3,5 cents (2001:
3,2 cents). Headline earnings per share has been impacted by:
- Unrealised foreign exchange differences resulting from changes in
the Rand exchange rate. Excluding the effects of these unrealised
differences, headline earnings per share would have increased
by 54%.
- A significantly higher interest charge due to the funding of
acquisitions by way of a short-term loan from the Rooibos Trust prior
to the advent of an institutional investor (BoE) and the issue of
Compulsorily Convertible Debentures (CCD) to raise capital of R26
million and the increased working capital requirements of
the group.
Cash generated from trading operations is higher than that of prior
periods. However, cash flow was affected by:
- A substantial export order for which payment was received shortly
after the half year ended 31 December, 2002.
- The strong growth and working capital requirements of the
ExcellTrade Division due mainly to an excellent Christmas trading
season and substantial export orders.
OPERATIONAL REVIEW
Excellerate invests in businesses that focus on services, trading and
distribution, with the emphasis on customer-centricity and specialised
markets. We are focused into two groupings, Services and Trading-
Distribution. Our unique business recipe focuses on operational
excellence and the extraction of maximum value from our business
operations. This is amply demonstrated by the impressive growth in the
operating profit of the group.
The ExcellTrade Division, which houses the Trading-Distribution
grouping, performed well. Growth was mainly organic with turnover
growing by 67% to R134 million (2001: R80 million) and operating profit
in this division 78% to R7,7 million (2001: R4,3 million).
The merged business of Hypertrade-Louis Smiedt contributed positively
to the earnings of this division, whilst Goldenmarc performed well
above expectation. Ferrengi Household Products ("Ferrengi") was
acquired during the period under review. Ferrengi is a manufacturer and
distributor of kitchen sponges, textiles and brass and steel scourers
and wools to mass merchant retailers and independents. The Ferrengi
business is synergistic with and complimentary to Goldenmarc. The
bedding down process has been completed and it is expected that the
manufacturing capability of Ferrengi will add another dimension to
Goldenmarc`s trading capabilities.
The ExcellServ Division continued to perform well with turnover growing
by 40% to R57,2 million (2001: R40,9 million) and operating profit by
12% to R4,2 million (2001: R3,7 million). The PEM (Parking Environment
Management) Division which houses the various businesses providing
outsourced services within the car park environment, continued to
improve on the mangement of parking facilities in South Africa through
its new innovative service offerings. The businesses driving these new
developments constituted start-up operations which have affected the
operating profit of the division in the short term but are expected to
contribute positively in the future.
The cleaning, hygiene and pest divisions housed within the Sterikleen
business continued to grow steadily by concentrating on gaining market
share and on improving efficiencies within the business, improving
management skills and adhering to strict financial disciplines.
The acquisition of the Levingers dry clean shoe repair and tailoring
business has been bedded down. New branches have been opened at
Eastgate and Dainfern shopping centres with further expansion on a
national level planned for the future.
PROSPECTS
The effect and contribution of new acquisitions have to some extent
been felt in the period under review and their contribution to the
group at year end is expected to be significant.
These results have been achieved against a backdrop of difficult market
conditions and changing environments within both the ExcellTrade and
ExcellServ divisions.
The group will continue to rely on strong organic growth, small niche
acquisitions and sound business practices which employ methods that
motivate, empower and encourage our management teams to express dynamic
entrepreneurial skills in a decentralised environment.
The group remains optimistic about its prospects.
ACCOUNTING POLICIES
The financial information contained in this announcement has been
prepared in accordance with policies, which are consistent with
Statements of South African Generally Accepted Accounting Practice and
those of the previous year.
The group`s auditors KPMG Inc have reviewed the financial information
for the period ended 31 December 2002. Their report is available for
inspection at the registered office of the company.
DIVIDEND
Consistent with the group`s current policy, no dividend has been
declared in light of the group`s desire to grow existing businesses
organically and to finance selective acquisitions.
For and on behalf of the Board
L Rottanburg B Bernstein
Executive Chairman Financial Director
Sandton, 5 March 2003
INCOME STATEMENT
Reviewed Reviewed Audited
6 months 6 months 12 months
ended ended ended
31 December 31 December 30 June
2002 2001 2002
R`000 R`000 R`000
Turnover 191 022 120 940 249 097
Operating profit 11 892 8 055 17 812
Capital items - profit on
disposal of fixed assets 4 40 140
Capital write off - impaired
value of investments - - (177)
Amortisation of trademarks (54) (53) (106)
Amortisation of goodwill (1 757) (1 287) (3 131)
Net income before interest
and taxation 10 085 6 755 14 538
Net interest (paid)/received (2 696) 200 (1 332)
Net income before taxation 7 389 6 955 13 206
Taxation (2 819) (2 183) (4 872)
Net income after taxation 4 570 4 772 8 334
Attributable to
minority shareholders (89) (95) (168)
Attributable to ordinary
shareholders 4 481 4 677 8 166
Shares in issue (000`s) 179 122 184 762 181 068
Weighted average
number of shares
in issue (000`s) 179 992 184 762 181 942
Fully diluted weighted average
number of
shares in issue (000`s) 202 522 184 762 200 730
Earnings per share (cents) 2,5 2,5 4,5
Headline earnings
per share (cents) 3,5 3,2 6,3
Fully diluted headline
earnings per share (cents) 3,3 3,2 6,0
Reconciliation of headline
earnings:
Attributable to
ordinary shareholders 4 481 4 677 8 166
adjust for:
- Amortisation of goodwill 1 757 1 287 3 131
- Capital write off -
impaired value
of investments - - 177
- Net profit on disposal
- of fixed assets (4) (40) (140)
- Tax thereon 1 12 42
Headline earnings 6 235 5 936 11 376
BALANCE SHEET
Reviewed Reviewed Audited
31 December 31 December 30 June
2002 2001 2002
R`000 R`000 R`000
Assets
Non current assets 95 717 67 463 89 637
Fixed assets 15 054 7 886 12 264
Investments 247 1 688 1 526
Intangibles 68 613 48 331 64 935
Deferred taxation 11 803 9 558 10 912
Current assets 133 275 88 141 101 426
Liquid funds 6 112 23 271 3 014
Other current assets 127 163 64 870 98 412
Total assets 228 992 155 604 191 063
Equity and liabilities
Equity and reserves 123 397 104 028 105 107
Ordinary shareholders`
interest 122 981 103 774 104 780
Outside shareholders`
Interest 416 254 327
Non current liabilities 11 259 1 390 1 455
Long term loans 2 293 1 390 1 455
Compulsory convertible
debenture
liability 8 966 - -
Current liabilities 94 336 50 186 84 501
Other current liabilities 82 924 50 186 70 577
Compulsory convertible
debenture
liability 2 017 - -
Amounts due to vendors 9 395 - 13 924
Total equity and liabilities 228 992 155 604 191 063
Shares in issue (000`s) 179 122 184 762 181 068
Net asset value per
share (cents) 68,9 56,3 58,0
Net tangible asset value
per share (cents) 30,4 30,0 22,0
CASH FLOW STATEMENT
Reviewed Reviewed Audited
6 months 6 months 12 months
ended ended ended
31 December 31 December 30 June
2002 2001 2002
R`000 R`000 R`000
Net income before interest
and taxation 10 085 6 755 14 538
Non-cash items 4 117 2 773 6 813
Cash generated from
trading operations 14 202 9 528 21 351
Increase in working capital (18 627)* (3 858) (7 747)
Cash (utilised)/generated
by operations (4 425) 5 670 13 604
Net interest (paid)/received (2 696) 200 (1 332)
Taxation paid (2 387) (256) (2 101)
Cash flow from operating
activities (9 508) 5 614 10 171
Cash flow from investing
activities (14 305) (7 864) (28 909)
Cash flow from financing
activities 26 911 (244) (3 723)
Net cash resources
retained/(utilised)
for the period 3 098 (2 494) (22 461)
Foreign currency translation - - (290)
Net cash resources at
beginning of period 3 014 25 765 25 765
Net cash resources at
end of period 6 112 23 271 3 014
Note :
* Includes an amount of R 8 093 000 in respect of a substantial export
order for which full payment was
received shortly after 31 December 2002
SEGMENTAL REPORT
Reviewed Reviewed Audited
6 months ended 6 months ended 12 months ended
31 December 31 December 30 June
2002 2001 2002
R`000 R`000 R`000
Turnover 191 022 120 940 249 097
Services 57 197 40 864 89 492
Trading-Distribution 133 825 80 076 159 605
Operating profit 11 892 8 055 17 812
Services 4 196 3 735 10 444
Trading-Distribution 7 696 4 320 7 368
Transactions between segments are conducted on an arm`s length market-
related basis
STATEMENT OF CHANGES IN SHAREHOLDERS` INTEREST
Ordinary Non- Compulsory
Share Share distribu- Retained conver-
capital premium table earnings tible
reserves deben- Total
tures
R000`s R000`s R000`s R000`s R000`s R000`s
Balance at
30 June 2001 1 848 57 206 17 167 22 876 - 99 097
Repurchase
of shares (37) (2 156) (2 193)
Foreign currency
translation (290) (290)
Net profit for
the year 8 166 8 166
Balance at
30 June 2002 1 811 55 050 16 877 31 042 - 104 780
Repurchase
of shares (12) (602) (614)
Net profit for the period 4 481 4 481
Compulsory convertible
debentures issued (net) 15 017 15 017
Compulsory convertible
debentures issue
expenses (683) (683)
Balance 31
December 2002 1 799 53 765 16 877 35 523 15 017 122 981
REGISTERED OFFICE: Block F, Ground Floor, Pin Mill Farm, 164 Katherine
Street, Sandown 2169. PO Box 785448, Sandton 2146. Tel: (+27 11) 444-
0474. Fax: (+27 11) 262-0360. E-mail: anne@excellerate.co.za
DIRECTORS: L Rottanburg (Executive Chairman), B Bernstein, H Bloch, A
Stewart, S Lewis*, P Kramer, A Lipchin, M Molapo*, R Stumpf* (*Non-
executive Director)
COMPANY SECRETARY: ER Goodman Secretarial Services CC (represented by E
Goodman). Ground Floor, 25 Rudd Road, Illovo 2196. Tel: (+27 11) 268-
0562. Fax: (+27 11) 268-0564
SHARE TRANSFER SECRETARY: Computershare Investor Services Limited, 70
Marshall Street, Johannesburg 2001. PO Box 1053, Johannesburg 2000.
Tel: (+27 11) 370-5000. Fax (+27 11) 836-0792
Date: 06/03/2003 08:49:00 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
