| Fri 30 May 2003, 10:02 | | AUDITED GROUP RESULTS FOR THE YEAR ENDED 28 FEBRUA |
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FORIM HOLDINGS LIMITED -
2003
Forim Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1986/004111/06)
Share code FOM ISIN ZAE000002689
("Forim", "the company" or "the group")
AUDITED GROUP RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2003
INCOME STATEMENT
2003 2002
R"000 R"000
Turnover 213 880 193 262
Cost of sales 151 414 140 921
Gross profit 62 466 52 341
Operating expenses 51 422 48 060
Operating profit before amortisation
and fair value adjustment 11 044 4 281
Amortisation of goodwill, patents and trademarks 1 500 1 500
Fair value adjustment of investment property (40) -
Operating profit 9 584 2 781
Net finance costs (2 134) (2 267)
Profit before taxation 7 450 514
Taxation 3 755 719
Profit after taxation 3 695 (205)
Minority share of profits 1 940 140
Profit for the year 1 755 (345)
Earnings per share (cents)
Basic earnings 3,5 (0,7)
Headline earnings 5,3 1,2
Number of ordinary shares in issue ("000) 50 000 50 000
Reconciliation of headline earnings to earnings
Earnings 1 755 (345)
Amortisation of goodwill 920 920
Fair value adjustment of investment property (40) -
Headline earnings 2 635 575
BALANCE SHEET
2003 2002
R"000 R"000
ASSETS
Property, plant and equipment 10 012 10 488
Investment properties 23 040 23 000
Intangible assets 28 587 29 947
Financial assets 35 379
Deferred taxation 434 305
Current assets 80 524 74 406
Inventories 42 146 37 119
Trade and other receivables 28 909 31 335
Deferred expenditure 1 463 1 216
Taxation 367 1 326
Cash and cash equivalents 7 639 3 410
Total assets 142 632 138 525
Equity and liabilities
Shareholders" interest 55 871 54 257
Minority shareholders" interest 34 132 31 945
Long-term liabilities 1 011 2 986
Deferred taxation 1 395 1 400
Current liabilities 50 223 47 937
Interest bearing liabilities 3 171 2 722
Taxation 2 968 476
Trade and other payables 33 916 34 738
Overdraft 9 149 9 271
Provisions 1 019 730
Total equity and liabilities 142 632 138 525
Net asset value per share (cents) 111,7 108,5
CASH FLOW STATEMENT
2003 2002
R"000 R"000
Cash generated from operations 10 690 7 450
Net finance costs (2 134) (2 267)
Taxation paid (439) (896)
Cash flow from operating activities 8 117 4 287
Cash flow from investing activities (2 346) (4 921)
Cash flow from financing activities (1 420) (316)
Net cash flow for year 4 351 (950)
Cash and cash equivalents at beginning of year (5 861) (4 911)
Cash and cash equivalents at end of year (1 510) (5 861)
STATEMENT OF CHANGES IN EQUITY
Non-
Share distribu- Distribu-
capital and table table
premium reserves reserves Total
R"000 R"000 R"000 R"000
Balance at 1 March 2001 23 757 450 30 395 54 602
Net loss for year (345) (345)
Transfer from non-distributable
reserves (45) 45 -
Balance at 1 March 2002 23 757 405 30 095 54 257
Share of accumulated loss on joint
venture not previously consolidated (141) (141)
Net profit for year 1 755 1 755
Transfer from non-distributable reserves (45) 45 -
Balance at 28 February 2003 23 757 360 31 754 55 871
COMMENTARY
Overview
The major activities of the group are conducted by its listed subsidiary,
Alliance Pharmaceuticals Limited ("Alliance"), in healthcare and consumer
personal care market sectors. In addition, the group continues to own properties
situated in and around the Johannesburg Central Business District.
The group benefited from the improved operating margins, growth in profits and
cash flow achieved by Alliance. This was largely responsible for the strong
increase in both earnings per share, which rose to 3.5 cents (2002: loss of 0.7
cents), and headline earnings per share, which increased to 5.3 cents (2002: 1.2
cents).
Sale of investment properties
The group has recently concluded agreements in terms of which it will dispose
of certain of its investment properties. The anticipated net cash consideration
for the disposals is R1,64 million after taking into account the purchaser"s
obligations to settle certain outstanding debts.
Prospects
It is anticipated that earnings for the coming year will again benefit from
improved results generated by the company"s interest in Alliance.
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 Forim have proposed a capital distribution out of share
premium of 5,0 cents (2002: Nil) per ordinary share to 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 capital distribution Friday, 5 September 2003
Trading commences "EX" the capital 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 days 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 E Forman (*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 08:00:27 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
