| Tue 18 Mar 2003, 15:22 | | Iliad Africa Limited - Audited results for the yea |
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Iliad Africa Limited
(Incorporated in the Republic of South Africa)
(Registration number 1997/011938/06)
Share code: ILA
ISIN: ZAE000015038
("Iliad" or "the Company")
- HEPS up 92%
- Dividend up 33,3%
- Strong cash flow
Abridged balance sheet
Audited Audited
R000s 31 Dec 2002 31 Dec 2001
ASSETS
Non-current assets
Tangible assets 14 861 13 643
Financial assets 2 596 3 622
Deferred taxation 11 493 14 972
Current assets 258 283 195 303
Total assets 287 233 227 540
EQUITIES AND LIABILITIES
Capital and reserves 124 156 96 568
Interest-bearing non-current liabilities 839 1 048
Interest-bearing current liabilities 2 357 4 966
Non interest-bearing current liabilities 159 881 124 958
Total equity and liabilities 287 233 227 540
Abridged income statement
% Audited Audited
R000s change 31 Dec 2002 31 Dec 2001
Turnover 752 764 593 757
Continuing operations 27 752 764 592 193
Discontinued operations 1 564
Trading profit 59 849 33 456
Continuing operations 64 59 849 36 577
Discontinued operations (3 121)
Financing charges (net) (3 818) (4 465)
Exceptional items - see below (1 709) 1 609
Profit before taxation 54 322 30 600
Taxation (13 818) (4 911)
Earnings for the year 58 40 504 25 689
Number of ordinary shares in issue
including 7 358 879 treasury shares
(2001: 969 600 treasury shares) 75 269 000 74 658 982
Weighted average number of ordinary
shares in issue 68 104 952 74 582 728
Headline earnings per share (cents) 92 62,0 32,3
Earnings per share (cents) 73 59,5 34,4
Diluted headline earnings
per share (cents) 57,6 31,0
Diluted earnings per share (cents) 55,2 33,0
Dividend per share (cents) 12,0 9,0
Headline earnings reconciliation
Earnings for the year 40 504 25 689
Exceptional items 1 709 (1 609)
Loss (profit) on sale of steel
forming assets - United Steel & Pipe
Supplies (Pty) Limited 1 620 (1 592)
Loss (profit) on disposal of
tangible assets 89 (17)
Headline earnings 75 42 213 24 080
Abridged cash flow statement
Audited Audited
R000s 31 Dec 2002 31 Dec 2001
Cash flows from operating
activities 33 409 25 481
Cash utilised in investment activities (7 024) (4 206)
Cash effect on financing activities (6 281) (4 357)
Increase in cash and cash equivalents 20 104 16 918
Cash and cash equivalent at beginning
of the year 1 025 (15 893)
Cash and cash equivalents at end of
the year 21 129 1 025
Supplementary information
Year ended Year ended
R000s 31 Dec 2002 31 Dec 2001
Net asset value per share (cents) 164,9 129,3
Capital expenditure (R000s) 6 895 6 065
Capital commitments (R000s)
- approved and contracted 3 500 500
- approved not contracted 4 000 4 000
Depreciation (R000s) 5 123 4 338
Statement of changes in shareholders" equity
Stated Retained
R000s capital income Total
Balance at 1 January 2002 23 742 72 826 96 568
Shares re-acquired and
Cancelled per special
resolution (936) (936)
1 449 000 options exercised and
shares allotted and issued 832 832
Treasury shares acquired (6 837) (6 837)
Earnings for the year 40 504 40 504
Dividend paid (5 975) (5 975)
Balance at 31 December 2002 16 801 107 355 124 156
COMMENTS
The Group is pleased to announce its audited results for the year ended 31
December 2002.
NATURE OF BUSINESS
Iliad Africa focuses on the sourcing, distributing and retailing of ceramic
tiles and sanitaryware, bathroom fittings, hardware, building materials,
ironmongery, finished wood products and related accessories. A range of
customers, from large-scale companies and developers, to do-it yourself
homeowners are serviced through a number of branded stores each concentrating
their efforts into an identified customer-focused market niche.
Iliad Africa maintains a 60% residential customer base, with the balance
commercial. The company is a well-established supplier in its niche markets and
geographical locations.
Proven trading skills and the owner-manager philosophy at operational level have
been positive contributors to the company"s overall success in the local
building materials market.
TRADING ENVIRONMENT AND OPERATIONAL REVIEW
All four operating divisions namely General Building Materials, Ceramic Tiles,
Boards and Ironmongery performed exceptionally well. As forecast at the half
year the robust demand for product continued throughout the period under review
with the private residential market showing particularly strong growth.
The residential market was driven and underpinned by a groundswell of the man in
the street viewing property as a safe and good investment whether as a primary
residence or on a buy to rent basis. Property in South Africa now represents in
excess of 20% of the total assets held by residents. The USA sits at similar
levels but Europe is above 30%.
The growth was predominately organic with G&M Building Supplies in Pretoria
being the only acquisition in 2002. This business, which was rebranded
Ferreira"s Buildware Lyttelton, has performed above expectations.
The Ferreira"s Decor World store in Northriding continued to show phenomenal
growth and as a result a further upgrade of R1million to showcase bathroom
furniture was completed towards the end of the review period.
FINANCIAL HIGHLIGHTS
Turnover increased by 27% to R753 million (2001: R594 million) of which 11% can
be attributed to real growth while 16% is as a result of inflation.
Trading profit margins in continued operations improved to 7,9% (2001: 6,2%) due
predominantly to the maintenance of gross margins and a well controlled and
improved expense to sales ratio.
The foreign exchange gain of R1,6 million represented the forecasted recovering
of the significant foreign exchange loss experienced in 2001.
The year on year working capital to sales ratio continued to improve for the
fifth consecutive year highlighting the operational management disciplines.
The Group has maintained a powerful conviction to generate strong cash flows and
ended the financial year with a cash balance of R21 million (2001: R1 million)
not withstanding the increased levels of capital applied to share buy backs,
acquisitions and development activities. The capital expenditure has positioned
the Group to manage increased levels of trading going forward.
For the fifth successive year the company has posted improved earnings. In 2002
earnings rose to R40,5 million (2001: R25,6 million). This represents a 73%
increase in earnings per share.
The variation in earnings and headline earnings per share is mainly represented
by a R1,6 million loss on the impairment of United Steel and Pipes Supplies
debt. The original purchaser was unable to meet its obligation so the machinery
was repossessed and sold to the Argent Group.
PROSPECTS
The drive in 2003 is to conclude a significant acquisition to add critical mass
to the Group. Organically Iliad Africa will role out three more Knob & Knocker
retail stores, as well as a new Ferreira"s Decor World store at Lion Match Park
in Durban.
Due to the macro environment within which the Group operates of fluctuating
interest rates and cyclical demand patterns, management will not exceed an
average gearing of 30% during this period of expansion.
DIVIDEND (NUMBER 5)
Notice is hereby given that the Board has declared a dividend of 12 cents per
share (2001:
9 cents). Shareholders are advised that the last day to trade "cum dividend"
will be Friday, 4 April 2003. The shares will trade "ex dividend" from the
commencement of business on Monday, 7 April 2003. The record date will be
Friday, 11 April 2003 and the payment date will be Monday, 14 April 2003.
Shareholdings may not be dematerialised or rematerialised between Wednesday, 26
March 2003 and Friday, 11 April 2003 both days inclusive.
AUDIT OPINION
Grant Thornton Kessel Feinstein have signed an unqualified audit opinion on the
financial statements for the year. These have been approved by the Board and
abridged for the purposes of this report. Both the auditor"s opinion and the
financial statements are available for inspection at the company"s registered
office.
The results comply with South African Statements of Generally Accepted
Accounting Practice and are consistent with accounting policies applied for the
year ended 31 December 2001.
For and on behalf of the Board
18 March 2003
Ralph Patmore Chief Executive Officer
Neil Goosen Financial Director
Registered address First Floor East Block Pineslopes Office Park c/o The
Straight & Witkoppen Road Lonehill PO Box 2572 Honeydew 2040
Transfer secretaries Ultra Registrars (Pty) Limited 11 Diagonal Street
Johannesburg 2001 PO Box 4844 Johannesburg 2000
(Incorporated in the Republic of South Africa) (Registration number
1997/011938/06) Share code ILA ISIN code ZAE000015038
