| Fri 30 May 2003, 9:24 | | RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2003 |
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Alliance - AUDITED group
ALLIANCE PHARMACEUTICALS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1981/006145/06)
Share code ALN ISIN ZAE000011110
Share code ACN ISIN ZAE000011847
("Alliance", "the company" or "the group")
AUDITED group RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2003
* Strong recovery over prior year
* Increase in operating margins and profits
* Increase in cash generated
* Increase in earnings per share
INCOME STATEMENT
2003 2002
R"000 R"000
Turnover 211 541 190 717
Cost of sales 153 358 140 922
Gross profit 58 183 49 795
Operating expenses 48 927 47 780
Operating profit before amortisation 9 256 2 015
Amortisation of patents and trademarks 580 580
Operating profit 8 676 1 435
Net interest received/(paid) 35 (716)
Profit before taxation 8 711 719
Taxation 3 436 415
Profit after taxation 5 275 304
Minority share of (losses)/profits (288) 29
Profit for the year 5 563 275
Earnings per share (cents)
Basic earnings 5,8 0,3
Headline earnings 5,8 0,3
Number of ordinary shares in issue ("000) 95 677 95 677
CASH FLOW STATEMENT
2003 2002
R"000 R"000
Cash generated from operations 8 253 4 986
Net interest received/(paid) 35 (716)
Taxation paid (360) (883)
Cash flow from operating activities 7 928 3 387
Cash flow from investing activities (2 346) (4 921)
Cash flow from financing activities (1 420) (116)
Net cash flow for year 4 162 (1 650)
Cash and cash equivalents at beginning of year 3 190 4 840
Cash and cash equivalents at end of year 7 352 3 190
BALANCE SHEET
2003 2002
R"000 R"000
ASSETS
Property, plant and equipment 9 976 10 435
Intangible assets 16 482 16 922
Financial assets 35 35
Deferred taxation 434 305
Current assets 79 658 73 135
Inventories 42 146 37 119
Trade and other receivables 28 717 30 652
Deferred expenditure 1 437 1 216
Taxation 6 958
Cash and cash equivalents 7 352 3 190
Total assets 106 585 100 832
EQUITY AND LIABILITIES
Shareholders" interest 67 608 62 283
Minority shareholders" interest 288 233
Long-term liabilities 1 011 786
Deferred taxation 824 883
Current liabilities 36 854 36 647
Interest bearing liabilities 771 2 521
Taxation 2 530 217
Trade and other payables 32 534 33 179
Provisions 1 019 730
Total equity and liabilities 106 585 100 832
Net asset value per share (cents) 70,7 65,1
STATEMENT OF CHANGES IN EQUITY
Non-
Share capital distributable Distributable
and premium reserves reserves Total
R"000 R"000 R"000 R"000
Balance at 1 March 2001 34 459 28 27 521 62 008
Net profit for the year 275 275
Transfer from non-
distributable reserves (3) 3 -
Balance at 1 March 2002 34 459 25 27 799 62 283
Share of accumulated loss on
joint venture not
previously consolidated (238) (238)
Net profit for the year 5 563 5 563
Transfer from non-
distributable reserves (3) 3 -
Balance at 28 February 2003 34 459 22 33 127 67 608
Commentary
Overview
Alliance operates in pharmaceuticals, medical, surgical and consumable
disposables, manufacture and distribution of generic medicines, admixture of
parenteral nutrition and marketing and distribution of consumer personal care
products, with particular emphasis on the manufacture and development of own
brands and products.
Despite difficult trading conditions, the group benefitted from increased
manufacturing efficiencies, tight expense control and the strengthening of the
local currency towards the latter end of the financial year, all contributing to
improved operating margins and growth in profits and cash flow.
The manufacturing facility of Laminated Technologies, a manufacturer of
medical consumable products, was relocated from Ladysmith to Johannesburg in
early 2003. This move will result in a significant reduction in overheads and,
although incurring further losses in the year to February 2003, that company is
now better positioned to contribute to group earnings over the coming years.
Turnover, excluding that of Laminated Technologies, increased by over 16%.
The group is pleased to report a strong recovery in earnings and headline
earnings per share of 5.8 cents compared to 0.3 cents for 2002.
Prospects
It is anticipated that, given a stable currency and the absence of unforeseen
circumstances, the group will continue to deliver improved results for the
coming year.
Accounting policies
The results have been compiled in accordance with South African Statements of
Generally Accepted Accounting Practice, the listing requirements of the JSE
Securities Exchange South Africa and Schedule 4 of the South African Companies
Act. The accounting policies used in the preparation of the results are
consistent in all material respects with those adopted in the annual financial
statements for the year ended 28 February 2002.
The results for the year ended 28 February 2003 have been audited by Grant
Thornton Kessel Feinstein. Their unqualified audit opinion is available for
inspection at the registered office of the company.
Capital distribution
The directors of Alliance have proposed a capital distribution out of share
premium of 2,0 cents (2002: Nil) per share to ordinary and "N" ordinary
shareholders, recorded in the register at close of business on Friday, 12
September 2003, being the record date, in lieu of a dividend. The capital
distribution is subject to the passing by shareholders at the annual general
meeting of the company, scheduled for Friday, 22 August 2003, of an ordinary
resolution approving the capital distribution. Should the capital distribution
be approved by shareholders the following salient dates will be applicable
thereto:
Last date to trade "CUM" the cash distribution Friday, 5 September 2003
Trading commences "EX" the cash distribution Monday, 8 September 2003
Record date Friday, 12 September 2003
Date of payment Monday, 15 September 2003
Share certificates may not be dematerialised or rematerialised between Monday, 8
September 2003 and Friday, 12 September 2003, both dates inclusive.
By order of the Board
H R Levin M Gelbart
Chairman Managing Director
29 May 2003
Directors: H R Levin* (Chairman), M Gelbart (Managing), Y Bhayat*
J Black* (British) R T Ririe* (*Non-executive)
Transfer Secretaries: Computershare Investor Services Limited
Ground Floor
70 Marshall Street
Johannesburg, 2001
(PO Box 1053, Johannesburg, 2000)
Sponsor: Sasfin Corporate Finance, a division of Sasfin Bank Limited
Company Secretary: Executive Secretarial Services CC
PO Box 261269, Excom, 2023
Date: 30/05/2003 08:00:18 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
