| Thu 16 Oct 2003, 9:34 | | REVIEWED RESULTS FOR THE YEAR ENDED 30 JUNE 2003 |
|
KELGRAN LIMITED -
KELGRAN LIMITED
Dimension Stone Specialists
Incorporated in the Republic of South Africa
Registration number 1975/04595/06
Code:KLG
ISIN:ZAE000003885
Reviewed Results for the year ended 30 June 2003Condensed Income Statement
Reviewed Audited
2003 2002
R"000 R"000
Revenue 343 935 444 520
Cost of sales (367 546) (393 007)
Gross (loss)/profit (23 611) 51 513
Other operating income 6 533 12 064
Other operating expenses (47 003) (35 794)
(Loss)/profit from operations (64 081) 27 783
Net finance cost (4 749) (4 546)
Exceptional items - (8 933)
(Loss)/profit before taxation (68 830) 14 304
Taxation (19 473) (3 220)
(Loss)/profit after taxation (88 303) 11 084
Minority interest (94) (60)
Attributable to ordinary shareholders (88 397) 11 024
Reconciliation to (loss)/headline
earnings
Attributable to ordinary shareholders (88 397) 11 024
Profit on sale of property, plant and (594) (4 077)
equipment
Profit on sale of investments - (886)
Retrenchment costs - 8 933
Taxation on the above 178 (1 191)
Headline (loss)/earnings (88 813) 13 803
(Loss)/earnings per share (cents)
- basic (94,0) 11,9
- fully diluted (94,0) 11,7
- headline (94,4) 14,9
- fully diluted headline (94,4) 14,7
Dividends paid per share (cents)
- interim - 3,0
- final - -
Weighted average number of shares (`000) 94 034 92 871
Number of shares in issue (`000) 94 034 94 034
Fully dilutive number of shares (`000) 94 034 94 034
Condensed Cash Flow Statement
Reviewed Audited
2003 2002
R"000 R"000
Cash flow from operating activities
Cash (utilised in)/generated from (2 148) 1 010
operations
Net finance costs (4 749) (4 546)
Exceptional items - (8 933)
Taxation paid (8 603) (9 000)
Dividends paid - (2 821)
Net cash outflow - operating activities (15 500) (24 290)
Cash flows from investing activities
Purchase of property, plant and equipment (1 855) (9 281)
Proceeds on disposal of property, plant 2 735 9 234
and equipment
Investments disposed - 911
Loans to contractors 7 019 (11 361)
Net cash inflow/(outflow) - investing 7 899 (10 497)
activities
Cash flows from financing activities
Repayment of long-term borrowings - -
Net cash out flow - financing activities - -
Net decrease in cash and cash equivalents (7 601) (34 787)
Cash and cash equivalents at the (65 996) (31 209)
beginning of the year
Cash and cash equivalents at the end of (73 597) (65 996)
the year
Condensed Statementof Changes in Equity
Reviewed Audited
2003 2002
R"000 R"000
Ordinary share capital
At the beginning of the year 1 881 1 834
Shares issued during the year - 47
At the end of the year 1 881 1 881
Share premium
At the beginning of the year 71 572 69 294
Share premium raised - 2 278
At the end of the year 71 572 71 572
Non-distributable reserves
At the beginning of the year 6 065 6 065
Movements during the year - -
At the end of the year 6 065 6 065
Retained earnings
At the beginning of the year - as 97 305 89 102
restated
Net (loss)/profit for the year (88 397) 11 024
Dividends paid - (2 821)
At the end of the year 8 908 97 305
Capital and reserves 88 426 176 823
Condensed Balance Sheet
Reviewed Audited
2003 2002
R"000 R"000
ASSETS
Non-current assets 54 982 79 241
Property, plant and equipment 48 919 51 611
Deferred taxation 128 17 512
Loans to contractors 5 935 10 118
Current assets 192 473 282 492
Inventories 107 729 123 534
Trade receivables 57 371 92 740
Other receivables 12 859 45 965
Current portion of contractors" loans 6 165 9 001
Tax paid in advance 749 195
Cash and cash equivalents 7 600 11 057
Total assets 247 455 361 733
EQUITY AND LIABILITIES
Capital and reserves 88 426 176 823
Minority interest 427 333
Non-current liabilities 13 596 12 949
Rehabilitation and closure cost 12 203 11 632
obligation
Post-retirement medical benefits 1 393 1 317
obligation
Current liabilities 145 006 171 628
Trade payables 36 721 64 115
Other payables 26 754 24 166
Current tax liabilities 334 6 294
Short-term borrowings 81 197 77 053
Total equity and liabilities 247 455 361 733
NATURE OF BUSINESS
The Group is engaged in the quarrying, marketing and distribution of granite. As
these activities comprise an integrated operation, the Group regards this as a
single primary business segment, on which all information is disclosed in this
announcement.
RESULTS
Turnover decreased by 23 percent from R444,5 million to R343,9 million, mainly
as a result of a substantially stronger Rand versus the US Dollar. Although the
demand for granite remained fairly stable during the period under review, sales
volumes were 14% lower than the previous year. Competition from new entrants in
South Africa negatively affected both sales volumes and pricing. A lack of rail
transport and production difficulties further hampered sales. The Group incurred
an operating loss of R64,1 million compared to an operating profit of R27,8
million in the previous year, due to lower revenue not being able to sustain the
fixed cost base and the impact of inventory being adjusted to net realisable
values in line with the stronger Rand.
Performance deteriorated in the second half of the financial year as the Rand
strengthened substantially against the US Dollar.
The Barracuda tile factory performed to expectation and the production section
of the monumental products will be fully commissioned towards the end of 2003.
Capital expenditure for the period under review amounted to R1,9 million
compared to R11,6 million for the year ended 30 June 2002.
Debt net of cash amounted to R73,6 million at 30 June 2003, increasing from
R66,0 million as at 30 June 2002. The net debt equity ratio was 83,2 percent
(June 2002: 37,3 percent).
Bank guarantees given by the Group to third parties amounted to R6,8 million,
whilst contingencies totalled R0,7 million (R7,8 million and R0,7 million,
respectively as at 30 June 2002).
ACCOUNTING POLICIES
The accounting policies adopted in the preparation of the financial statements
are consistent with those used in the financial statements for the year ended 30
June 2002, with the exception of the adoption of AC133: Financial Instruments:
Recognition and Measurements, which became effective for the year ended 30 June
2003. The accounting policies of the company comply in all material respects
with South African Statements of Generally Accepted Accounting Practice and
Schedule 4 of the Companies Act of 1973.
REVIEW BY THE INDEPENDENT AUDITORS
The results have been reviewed by PricewaterhouseCoopers Inc. and their
unqualified report is available for inspection at Kelgran"s registered office.
The report contains a matter of emphasis relating to the Group"s ability to
continue as a going concern.
PROSPECTS
The focus of the Group in the short term will be on greater synergy between
production and marketing, which is an integral part of managing working capital.
Additionally, Kelgran will focus on re-establishing the company"s traditional
markets with a view to consolidating sales. Increased beneficiation of
monumental products at the Barracuda factory should supplement the tile
turnover.
DIVIDEND
The Directors have resolved not to declare a dividend.
PROPOSED DISPOSAL OF CONTROL OF KELGRAN"S OPERATIONS AND FURTHER CAUTIONARY
ANNOUNCEMENT
It was announced on 13 August 2003 that Kelgran has entered into a transaction
regarding the proposed disposal of control of Kelgran"s operations. A circular
to shareholders providing full details of the transaction and including a notice
of general meeting will be posted to shareholders shortly. Until such time as
financial effects of the transaction are published, shareholders are advised to
continue to exercise caution when dealing in their Kelgran shares on the
Johannesburg Securities Exchange (JSE).By order of the Board
Vittorio di CapuaChief Executive Officer 16
October 2003Registered Office: 4 Homestead Avenue, Bryanston, Sandton 2196
Transfer Secretaries: Computershare Investor Services Ltd, 11 Diagonal Street,
Johannesburg 2001
Executive Directors: V di Capua**, (Chief Executive Officer and Executive Deputy
Chairman), Dato" Choo Eng Guan* and FP van Wyk
Non-executive Directors: Dato" Yap Yong Seong* (Chairman), Dato" Murad Mohamed
Hashim*, Yap Wee Keat* and Yap Wee Chun*
*Malaysian ** Italian
Date: 16/10/2003 08:58:01 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
