| Wed 27 Aug 2003, 16:13 | | AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2003 |
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BRANDCORP HOLDINGS LIMITED - AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2003
BRANDCORP HOLDINGS LIMITED
Incorporated in the Republic of South Africa
("Brandcorp" or "the group")
Registration number 1992/006647/06
JSE Code: BRC
ISIN No.: ZAE000013611
AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2003
* HEADLINE EARNINGS PER SHARE INCREASED BY 97%
* OPERATING PROFIT INCREASED BY 32%
* NET ASSET VALUE PER SHARE INCREASED BY 22%
* DIVIDENDS PER SHARE INCREASED BY 100%
ABRIDGED GROUP INCOME STATEMENT
30 June 2003 30 June 2002 %
Audited Audited change
R000 R000
Turnover 696,832 599,546 16.2
Operating profit 71,521 54,178 32.0
Net interest paid (8,141) (926)
Net profit before taxation 63,380 53,252 19.0
Taxation (20,725) (15,919) 30.2
* Current (18,952) (13,992)
* Secondary tax on companies (1,128) (882)
* Deferred taxation (645) (1,045)
Net profit after taxation 42,655 37,333 14.3
Number of shares in issue (000)* 70,528 70,739
Weighted ave. no. of shares (000)* 71,224 126,305
Headline earnings per share - cents 58.2 29.6 96.6
Earnings per share - cents 59.9 29.6 102.4
Diluted headline earnings per share - cents 51.4 27.0 90.4
Diluted earnings per share - cents 52.9 27.0 95.9
*Net of treasury shares
RECONCILIATION OF HEADLINE EARNINGS
30 June 2003 30 June 2002
Audited Audited
R000 R000
Net profit after taxation 42,655 37,333
Adjust for:
Profit on disposal of tangible assets (1,177) -
Headline earnings 41,478 37,333
ABRIDGED GROUP BALANCE SHEET
30 June 2003 30 June 2002 %
Audited Audited change
R000 R000
ASSETS
Non - current assets 27,304 24,947
Tangible assets 15,557 13,755
Intangible assets 1,200 -
Deferred taxation 10,547 11,192
Current assets 298,677 275,884
Inventories 108,622 123,502
Accounts receivable 118,369 113,705
Cash and cash equivalents 71,686 38,677
325,981 300,831
EQUITY AND LIABILITIES
Capital and reserves 174,439 143,104
Long term liabilities 39,573 52,261
Current liabilities 111,969 105,466
Non-interest bearing liabilities 84,385 85,747
Interest bearing liabilities 14,140 11,439
Taxation 13,444 8,280
325,981 300,831
Net asset value per share (cents) 247.3 202.3 22.2
ABRIDGED GROUP CASH FLOW STATEMENT
30 June 2003 30 June 2002
Audited Audited
R000 R000
OPERATING ACTIVITIES 59,732 25,813
Operating profit before
working capital movements 73,980 57,229
Movements in working capital 8,809 (14,163)
Net finance costs (8,141) (926)
Taxation paid (14,916) (16,327)
INVESTING ACTIVITIES (8,270) (82,081)
Purchase of tangible assets (5,197) (2,971)
Proceeds on disposal of tangible assets 1,236 69
Purchase of trademarks (1,500) -
Ordinary shares repurchased (1,799) (79,179)
Net purchase of shares by share trust (1,010) -
FINANCING ACTIVITIES (18,453) 47,910
(Payment of)/proceeds from borrowings (9,987) 55,637
Dividends paid (8,466) (7,727)
NET MOVEMENT IN CASH RESOURCES 33,009 (8,358)
Cash and cash equivalents at the
beginning of the year 38,677 47,035
Cash and cash equivalents at the
end of the year 71,686 38,677
STATEMENT OF CHANGES IN EQUITY
Share Share Distributable Total
Capital Premium Reserve
R000 R000 R000 R000
Balance at 1 July 2001 1,370 98,641 93,936 193,947
Change in accounting policy (45) (2,036) 1,031 (1,050)
- consolidation of share trust
1,325 96,605 94,967 192,897
Profit after taxation - - 37,333 37,333
Ordinary shares repurchased (583) (74,170) - (74,753)
and cancelled
Treasury shares purchased
and held (34) (4,392) - (4,426)
Dividend - - (7,947) (7,947)
- as previously reported - - (8,214) (8,214)
- prior year adjustments - - 267 267
Balance at 1 July 2002 708 18,043 124,353 143,104
- balances as previously
reported 753 20,079 123,055 143,887
- prior year adjustment (45) (2,036) 1,298 (783)
Profit after taxation - - 42,655 42,655
Ordinary shares repurchased (8) (1,791) - (1,799)
and cancelled
Dividends - - (8,511) (8,511)
Shares issued by share trust 15 760 - 775
Shares repurchased by share trust (9) (1,776) - (1,785)
Balance at 30 June 2003 706 15,236 158,497 174,439
SEGMENT ANALYSIS
Turnover Operating Assets Liabilities
Profit
R000 R000 R000 R000
Tools & Hardware 462,820 55,281 199,925 90,168
Leisure & Accessories 108,253 6,784 50,846 27,969
House & Home 125,759 8,041 41,226 26,263
Corporate - 1,415 33,984 7,142
Total 696,832 71,521 325,981 151,542
TRADING REVIEW
The Directors of Brandcorp have pleasure in presenting the results of the
group for the year ended 30 June 2003.
Brandcorp is a distributor of niche and branded consumer products through its
three divisions namely; Tools & Hardware, Leisure & Accessories and House &
Home. All of the group"s divisions performed above expectations and the
directors take this opportunity to extend their sincere thanks and appreciation
to our loyal and devoted employees who were responsible for these results.
Turnover increased by 16.2% from R599.5m to R696.8m. Operating profit
increased by 32.0% from R54.2m to R71.5m
Earnings per share increased by 102.4% from 29.6 cents per share to 59.9 cents
per share.
Headline earnings per share increased by 96.6% from 29.6 cents per share to
58.2 cents per share.
The balance sheet remains sound with interest bearing debt more than covered
by cash and cash equivalents.
Net asset value per share increased by 22.2% from 202.3 cents per share to
247.3 cents per share.
Cash flows from operations before working capital movements amounted to R74.0m
as compared with R57.2m in the previous year.
GENERALLY ACCEPTED ACCOUNTING PRACTICE
These financial statements have been prepared on the historical cost basis and
in conformity with South African Statements of Generally Accepted Accounting
Practice.
Save for the treatment of the share incentive trust, the accounting policies
applied in the preparation of these financial statements are consistent with the
prior year. In the current year the share incentive trust has been consolidated
and the prior year figures have been restated accordingly.
DIVIDENDS
On the 12th February 2003 the company declared a maiden interim dividend of 4
cents per share.
Notice is hereby given that the board has declared a final dividend of 12
cents per share. The following salient dates should be noted:
Declaration date Wednesday 27th August 2003
Last day to trade cum-dividend Friday 12th September 2003
Trading ex-dividend commences Monday 15th September 2003
Record date Friday 19th September 2003
Dividend payment date Monday 22nd September 2002
Share certificates may not be dematerialised or rematerialised between Monday
15 September 2003 and Friday 19 September 2003 (both dates inclusive)
AUDITORS REPORT
These results have been audited by Grant Thornton Kessel Feinstein and their
unqualified audit opinion is available for inspection at the company"s
registered office.
DIRECTORATE
During the year Jeff Miller resigned as a director of the company and we
thank him for his valuable contribution to the group"s affairs.
On the 14th April 2003 Sidney Ellerine was appointed as a non-executive
director and Mandy Yachad as an independent non-executive director. We look
forward to the benefit of their wise counsel.
PROSPECTS
Having regard to the trading environment encountered since the end of the year
under review, the board anticipates trading conditions to remain difficult.
However, the recent stability of the Rand, the increase in disposable income of
the South African consumer (occasioned by the reduction in interest rates) and
the group"s ability to manage and generate strong cash flows augur well for the
continued growth of the group.
ON BEHALF OF THE BOARD
COLIN DATNOW BRAD TAUROG
Chief Executive Chief Financial Officer
27 August 2003
Transfer Secretaries: Secretary and Registered Office:
Computershare Limited Light and Livingstone Financial Services CC
Ground Floor 3rd Floor, Palm Grove
70 Marshall Street 196 Louis Botha Avenue
Johannesburg, 2001 Houghton Estate, 2198
DIRECTORS:
CS Datnow, S Ellerine*, JD Goldberg, JC Livingstone*, HB Marcus, BD Taurog,
M Yachad*
(*Non-executive)
BRANDCORP HOLDINGS LIMITED
Incorporated in the Republic of South Africa
( "Brandcorp" or "the group")
Registration number 1992/006647/06
JSE Code: BRC
ISIN No.: ZAE000013611
These results can be viewed on our website: www.brandcorp.co.za
Date: 27/08/2003 04:01:07 PM
Produced by the JSE SENS Department
