| Wed 15 Oct 2003, 13:02 | | INTERIM REPORT FOR THE SIX MONTHS ENDED |
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BURLINGTON INDUSTRIES LIMITED - INTERIM REPORT FOR THE SIX MONTHS ENDED
30 JUNE 2003
BURLINGTON INDUSTRIES LIMITED AND ITS SUBSIDIARIES
REG NO 1946/021549/06
SHARE CODE: BUR
ISIN: ZAE000001194
INTERIM REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2003
CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2003
30.6.2003 30.6.2002 31.12.2002
Audited
TURNOVER 8 171 000 9 117 000 14 434 666
Cost of sales 3 752 000 4 719 000 7 700 212
Gross profit 4 419 000 4 398 000 6 734 454
Other operating costs 3 241 000 3 394 000 5 071 730
Operating profit before 1 178 000 1 004 000 1 662 724
finance charges
Finance charges 805 000 699 000 1 380 493
Profit before taxation 373 000 305 000 282 231
Taxation - - 2 988
Net profit for the period 373 000 305 000 279 243
Weighted average number of 600 000 600 000 600 000
ordinary shares
Earnings per ordinary shares 62.2 50.8 45.5
(cents)
Headline earnings per 65.8 54.5 48.1
ordinary share (Note 3)
Dividends per ordinary share - - -
(cents)
CONSOLIDATED BALANCE SHEET AT 30 JUNE 2003
30.6.2003 31.12.2002
Audited
ASSETS
Non-current assets 11 480 000 11 507 266
Tangible assets (Note 2) 10 659 000 10 619 469
Intangible assets 821 000 887 797
Current assets 17 679 000 16 880 767
29 159 000 28 388 033
EQUITY AND LIABILITIES
Equity and reserves 5 714 000 5 341 245
Ordinary shareholders interest
Non-distributable reserves 5 590 000 5 216 967
24 000 24 278
Preference share capital 100 000 100 000
Non current liabilities 16 855 000 16 391 840
Current liabilities 6 590 000 6 654 948
29 159 000 28 388 033
DIRECTORS REPORT
It gives us pleasure to report on the results achieved during the period of the
first six months of this year. Operating income has increased by 17% compared to
the same period last year. This is mainly due to the profitability of our
Marlboro Originals retail stores, which are all trading well. A further store in
Hyde Park Corner was opened in July this year bringing the total number of
stores to 8. We plan to open further stores in upmarket shopping centers in
Johannesburg during the next six months. Over the last few years we have
steadily moved from manufacturing to retail trade and further rationalization in
our manufacturing sector is taking place. This will in the long run greatly
benefit the group as we phase out all low yield operations, which will allow
us to concentrate on the retail trade. No ordinary dividends have been paid or
declared during the period.
FOR AND ON BEHALF OF THE BOARD
PERRY KAWITZKY ANTHONY KAWITZKY
Joint Chairman Joint Chairman
14 October 2003
CONSOLIDATED CASH FLOW STATEMENT FOR THE 6 MONTHS ENDED 30 JUNE 2003
30.6.2003 30.6.2002 31.12.2002
Audited
R R R
CASHFLOW FROM OPERATING (823 000) 50 000 (1 388 184)
ACTIVITIES
CASH FLOWS FROM INVESTING (234 000) (155 000) (246 936)
ACTIVITIES
CASH FLOWS FROM FINANCING 463 000 64 000 1 109 181
ACTIVITIES
NET DECREASE IN CASH AND (594 000) (41 000) (525 939)
CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS
AT THE
BEGINNING OF THE PERIOD (3 722 000) (3 195 000) (3 195 747)
CASH AND CASH EQUIVALENTS
AT THE END
OF THE PERIOD (4 316 000) (3 236 000) (3 721 686)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Ordinary Preference Non-distri- Distri-
share share butable butable
capital capital reserve reserves Total
Group R R R R R
Balance at 1 300 000 100 000 24 278 4 916 967 5 341 245
January 2003
Net profit for - - - 373 000 373 000
the period
Balance at 30 300 000 100 000 24 278 5 289 967 5 714 245
June 2003
NOTES TO THE FINANCIAL STATEMENTS
1. ACCOUNTING POLICIES
The financial statements are prepared on the historical cost basis,
adjusted by the revaluation of land and buildings as detailed below, and
incorporate the principal accounting policies set out below which are
consistent with those of the previous year. These policies comply with
Statements of South African Generally Accepted Accounting Practice. The
financial statements are prepared on a going concern basis.
1.1 Basis of Consolidation
The consolidated financial statements incorporate those of the company
and all of its subsidiaries. The results of subsidiaries acquired or
disposed of during the year are included from the effective dates of
acquisition and up to the effective dates of disposal. Differences
between the consideration paid for subsidiaries acquired and the fair
value of their identifiable net assets at dates of acquisition are
expressed as goodwill or reserve on acquisition of subsidiaries.
Unrealised income arising from transactions within the group and inter
company balances have been eliminated.
1.2 Tangible Assets
The group owns two investment properties; both are stated at fair
value. Independent valuations will be obtained yearly. Gains or
losses arising from a change in fair value are included in net profit
or loss for the period in which it arises. Assets held under finance
leases are capitalised. At the commencement of the leases, these
assets are reflected at open market value and the related liability is
recognised at an equivalent amount. Finance charges are written-off
over the periods of the leases based on the effective rates of
interest. Depreciation is provided on all tangible assets, other than
land and buildings, to write down the cost, less estimated residual
value, over their estimated economic lives as follows:
* Electrical equipment - 15% per annum reducing balance method
* Factory furniture - 10% per annum reducing balance method
* Motor vehicles - 10% per annum straight line method
* Office equipment - 10% per annum reducing balance method
* Plant and machinery - 7,5% to 15% per annum reducing balance
method
1.3 Intangible Assets
Goodwill
Goodwill is the excess of the cost of an acquisition over the
company"s interest in the fair value of the identifiable assets and
liabilities accrued at acquisition date. Depreciation is being
provided on goodwill to write down the cost over twenty years.
Development Expenditure
Development costs comprise all costs that are directly attributable to
development activities or that can be allocated on a reasonable basis
to such activities.
Development costs are recognised as an asset only when it is probable
that the costs will give rise to future economic benefits and the
costs can be measured reliably. Development costs are amortised on
the straight line basis at rates considered to be appropriate to the
time period in which benefits are expected from the sale or use of the
products. Development costs are further written down to the extent
that the unamortised balances will in all probability no longer be
recovered from expected future economic benefits.
1.4 Inventories
Inventories are valued at the lower of cost or estimated net
realisable value. Raw materials are valued at invoice cost on a first-
in-first-out basis. Work-in-progress and finished goods include raw
materials, labour and factory overheads.
1.5 Translation of Foreign Currencies- Foreign entities
All assets and liabilities are translated at the closing rate.
Income statement items are translated at an appropriate weighted
average exchange rate for the year. Exchange differences are taken
directly to the foreign currency translation reserve.
1.6 Employee Benefits
Defined contribution plan
Contributions to a defined contribution plan in respect of service in
a particular period are recognised as an expense in that period.
1.7 Revenue
Turnover is defined as sales to customers and finance charges and
excludes value added tax.
1.8 Cost of Sales
Cost of sales consists of the cost of inventories sold during the year
including related overhead costs.
1.9 Cash and Cash Equivalents
Cash and cash equivalents consist of cash on hand and balances with
banks and other financial institutions and investments in money market
instruments.
2. TANGIBLE ASSETS 30.06.2003 31.12.2002
Audited
Cost
Plant, vehicles and equipment 7 440 000 7 213 755
Fair value
Investment property 7 138 079 7 138 079
14 578 079 14 351 834
Accumulated depreciation
Plant, vehicles and equipment 3 919 000 3 732 365
Net carrying value
Investment property 7 138 000 7 138 079
Plant, vehicle and equipment 3 521 000 3 481 390
10 659 000 10 619 469
Movement for year
Capital expenditure
- Investment property 9 080
- Plant, Vehicles and equipment 227 000 258 017
Disposals
- Plant, Vehicles and equipment (2 000)
Depreciation (187 000) (348 487)
40 000 (81 390)
3. HEADLINE EARNINGS:
The calculation of headline earnings per share is based on a profit of
R395 000 (2002: R288 697) and 600 000 (2002: 600 000) ordinary during the
period.
Reconciliation between net earnings and headline earnings:
Net profit and loss per income statement 373 000 279 243
Preference dividend declared - (6 000)
Goodwill amortisation 22 000 44 358
Profit on sale of non-trading assets - 28 904
395 000 288 697
Registered Office:
Cnr 7th Avenue and Nyman Street,
Maitland,
7405
Transfer Secretaries:
Ultra Registrars (Pty) Limited,
11 Diagonal Street,
Johannesburg,
2001
Directors:
P Kawitzky, P Kawitzky, A Kawitzky, R D Hugo
Date: 15/10/2003 12:53:07 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
