| Wed 23 Apr 2003, 15:36 | | Winecorp Limited - Group financial results for the |
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Winecorp Limited
JSE share code: WNE ISIN number: ZAE000027710
Group financial results for the six months ended 31 January 2003
Financial results
The financial results of the group for the six months ended 31 January 2003 are
set out below. The interim results have been prepared on the historical cost
basis in accordance with South African Statements of Generally Accepted
Accounting Practice. Accounting policies which have been applied are consistent
in all material respects with those applied in the previous year.
Winecorp Limited is pleased to report an increase in revenue to R49,6 million
for the period ended 31 January 2003, an increase of 22% over the same period
last year. This is largely due to the increase in the group"s capacity by at
least two thirds following the completion of the R5 million expansion plan
started in January 2002, together with the shift in the wine sales mix from bulk
sales to case sales and the strong marketing effort of the sales team, resulting
in a 39% increase in export sales and greater profitability.
The strengthening of the rand over the period resulted in a foreign exchange
loss of R2,6 million compared to a foreign exchange gain of R1,6 million in the
prior year. Operating expenses were contained and increased by only 19%. The
strengthening of the rand in this export-orientated business has necessitated
focus on optimum productivity, the maintenance of a competitive cost structure
and cash flow management. Working capital management has improved; debtor and
creditor days have reduced significantly and stockholding has decreased by an
average of 15 days compared to the prior year. The company has reported positive
cash flow from operating activities for the period under review.
The associate, Thales Wine Cellar Services (Pty) Ltd, reflected a loss of R184
000 to 31 January 2003. The group"s share of this was R92 000. This loss is due
to timing of sales and a profit, in line with that of last year, is expected to
year-end.
In the prior year a R3 million exceptional item was recorded, being the
writedown of part of the loan account with the Employee Share Trust. In the six
months to 31 January 2003, R658 000 of this loan was repaid. The balance should
be repaid by year-end and hence no further writedowns should be required.
The above factors have resulted in the net profit after tax of R2,1 million,
earnings per share of 4,26 cents and net asset value per share of 57,8 cents, an
increase of 8% from the prior financial year end and 23% since January 2002.
Prospects
Although the company has performed well in the six months to 31 January 2003,
the board believes that the increased input costs, mainly due to the substantial
increase in the cost of white wines for the 2003 harvest, as well as the
continued strengthening of the rand will put pressure on the sustainability of
these results towards the year end.
Abridged consolidated income statement
6 months 6 months Year
ended ended ended
31 Jan 2003 31 Jan 2002 31 Jul 2002
Unaudited Unaudited Audited
R"000 R"000 R"000
Revenue 49 641 40 747 85 221
Other (losses)/income (2 562) 1 659 4 263
Operating expenses (43 009) (36 203) (77 982)
Operating profit 4 070 6 203 11 502
Net finance costs (886) (1 953) (2 587)
Share of net (loss)/income from
associates (92) 129 60
Profit on disposal of non-current
assets - 600 575
Net operating profit before
exceptional items 3 092 4 979 9 550
Exceptional items - (3 063) (3 063)
Net profit before taxation 3 092 1 916 6 487
Taxation (992) - (1 239)
Net profit for the period 2 100 1 916 5 248
Weighted number of shares
in issue (thousands) 49 286 49 386 49 366
Earnings per share (cents) 4,26 3,88 10,63
Headline earnings per share (cents) 4,15 9,04 16,98
Reconciliation between headline profit and net profit
Headline earnings 2 045 4 463 8 380
Exceptional items - (3 063) (3 063)
Profit on disposal of
non-current assets - 600 575
Profit on disposal of property,
plant and equipment 190 51 41
Goodwill amortisation (135) (135) (270)
Impairment of property - - (416)
Net profit 2 100 1 916 5 247
Abridged consolidated balance sheet
As at As at As at
31 Jan 2003 31 Jan 2002 31 Jul 2002
Unaudited Unaudited Audited
R"000 R"000 R"000
ASSETS
Property, plant and equipment 16 055 12 471 14 944
Intangibles and goodwill 2 359 2 475 2 406
Investment in associates 593 757 694
Long-term loans 244 902 902
Deferred taxation 1 247 - 650
Current assets 42 288 43 898 50 894
Total assets 62 786 60 503 70 490
Shareholders" equity 28 491 23 174 26 391
Long-term liabilities 6 278 5 627 5 628
Related party loans 1 363 3 765 1 536
Current liabilities 26 654 27 937 36 935
- Non-interest bearing 15 437 19 781 26 937
- Interest bearing 11 217 8 156 9 998
62 786 60 503 70 490
Total number of shares in issue
at period end (thousands) 49 286 49 386 49 286
Net asset value per share (cents) 57,81 46,92 53,55
Abridged consolidated statement of changes in equity
6 months 6 months Year
ended ended ended
31 Jan 2003 31 Jan 2002 31 Jul 2002
Unaudited Unaudited Audited
R"000 R"000 R"000
Balance at start of period 26 391 21 258 21 258
Change in accounting policy - - (79)
Opening balance 26 391 21 258 21 179
Attributable profit 2 100 1 916 5 247
Net effect of shares acquired by
subsidiary company - - (35)
Balance at end of period 28 491 23 174 26 391
Abridged consolidated cash flow statement
Cash inflow from operating
activities 659 6 608 13 909
Cash outflow from investing
activities (2 291) (1 588) (5 289)
Cash inflow/(outflow) from
financing activities 1 623 (1 727) (4 419)
Net (decrease)/increase in cash
and cash equivalents (9) 3 293 4 201
Cash and cash equivalents at
beginning of period 3 088 (1 113) (1 113)
Cash and cash equivalents
at end of period 3 079 2 180 3 088
Directors:
Executive: NP Carew Managing Director, AC Kruger Financial
Non-executive: GN Wagener Chairman, GJ Knox Deputy chairman (Australian), BS
Barraclough (British), FA Bicker Caarten, AD Enthoven, RG Freese Alternate: P
McMahon (British)
Company secretary:
ML Potgieter (British), c/o Winecorp, Annandale Road, Stellenbosch 7600
Company registration number:
1997/012032/06
Transfer secretaries:
Computershare Investor Services (South Africa) (Pty) Ltd, 70 Marshall Street,
Johannesburg 2001
