| Mon 20 Oct 2003, 16:04 | | Unaudited Results For The Six Months Ended 31 Augu |
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Beige - Unaudited Results For The Six Months Ended 31 August 2003
Beige Holdings Limited
Registration No: 1997/006871/06
Share code: BEG ISIN code: ZAE000034161
("Beige" or "the company")
UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2003
Group Income Statements
Unaudited for Audited for Unaudited for
the 6 months the year ended the 6 months
ended 28 February ended
31 August 2003 2003 31 August 2002
R"000 R"000 R"000
Revenue 34 078 65 728 28 698
Cost of sales (20 013) (37 409) (16 675)
Gross profit 14 065 28 319 12 023
Operating expenses (12 828) (20 480) (9 682)
Depreciation (283) (552) (223)
Operating profit 953 7 287 2 118
Other income 27 120 30
Net profit from activities 980 7 407 2 148
before finance charges and tax
Finance charges (16) (541) (319)
Net profit before taxation 964 6 866 1 829
Taxation (336) 972 (156)
Net profit for the period 628 7 838 1 673
Calculation of headline R"000 R"000 R"000
earnings
Net profit for the period 628 7 838 1 673
Adjustments for:
Recovery of restraint -- (2 142) -
undertaking payment
Liquidation Dividend -- (1 175) (978)
Profit on settlement of -
royalty agreement with PI -- (103)
Product (Proprietary) Limited
(The Like Silk brands)
Amortisation of goodwill 604 1 209 473
Negative goodwill recognised (32) (64) (32)
in the income statement
Loss on disposal and -- 11 -
impairment of plant and
equipment
1 200 5 574 1 136
Tax effect of adjustments - 31 -
Headline earnings for the 1 200 5 605 1 136
period
Ordinary shares in issue
(000"s)
- Weighted 261 881 198 037 95 781
- Fully diluted (Note 1) 309 131 254 037
Earnings per share information
Attributable earnings per 0,24 3.96 1.75
ordinary share (cents)
Headline earnings per share 0,46 2.83 1.19
(cents)
Fully diluted attributable 0,20 3.09 -
earnings per share (cents)
Fully diluted headline 0,39 2.21 -
earnings per share (cents)
Notes
1. Fully diluted earnings per share information is reflected showing the
potential effect of full dilution for 26 000 000 options held by Beige directors
and Mr G Victor and 21 250 000 shares to be issued to Craig van Zeil in relation
to the acquisition of the remaining 49% of Beige Factory Shoppe (Proprietary)
Limited trading as Get Fresh ("Get Fresh"), subject to the achievement of
warranties.
Group Balance Sheets
Unaudited as Audited as Unaudited
at at as at
31 August 28 February 31 August
2003 2003 2002
R"000 R"000 R"000
ASSETS
Non-current assets 6 406 6 663 5 047
Plant, equipment and vehicles 2 082 1 471 1 076
Investment - intangibles 1 277 1 849 1 855
Deferred taxation 3 047 3 343 2 116
Current assets 30 786 24 889 26 561
Inventories 11 667 9 192 8 316
Accounts receivable - trade 17 029 12 410 13 369
1 369 2 499 4 409
- other
Taxation prepaid 531 46 30
Cash resources 190 742 437
Total assets 37 192 31 552 31 608
EQUITY AND LIABILITIES
Capital and reserves 22 798 19 920 10 003
Shareholders" funds 22 798 19 920 10 003
Non-current liabilities 332 2 490 1 829
Long-term liabilities 332 2 490 1 829
Current liabilities 14 062 9 142 19 777
Accounts payable - trade 10 917 6 712 12 261
547 - 4 846
-other
Current portion of long-term 10 147 209
liabilities
Taxation 37 129 588
Bank overdraft 2 551 2 154 1 873
Total equity and liabilities 37 192 31 552 31 608
Ordinary shares in issue
(000"s)
- At period end 282 099 243 375 155 000
- Fully diluted (Note 1) 329 349 308 099 -
Net asset value per share
information
Net asset value per share 8,06 8,18 6.45
(cents)
Net tangible asset value per 7,61 7,43 5.26
share (cents)
Fully diluted net asset value 6,91 6,47 **
per share (cents)
Fully diluted net tangible 6,52 3,87 **
asset value per share (cents)
** Not previously published
Notes
1. Fully diluted net asset value per share information is reflected showing
the potential effect of full dilution for 26 000 000 options held by directors
and Mr G Victor and 21 250 000 shares to be issued to Craig van Zeil in relation
to the acquisition of the remaining 49% of Get Fresh, subject to the achievement
of warranties.
Abridged Group Cash Flow Statement
Unaudited for Audited for Unaudited
the the year for the
6 months ended 6 months
ended 28 February ended
31 August 2003 31 August
2003 R"000 2002
R"000 R"000
Net cash outflow from (774) (8 286) (4 694)
operating activities
Net cash outflow from (257) (958) (223)
investing activities
Net cash inflow from financing 82 8 037 3 686
activities
Net decrease in cash and cash (949) (1 207) (1 231)
equivalents
(Bank overdraft)/cash and cash (1 412) (205) (205)
equivalents at beginning of
period
Bank overdraft at end of (2 361) (1 412) (1 436)
period
Group Statement of Changes in Equity
Share Share Accumulated Other Total
Capital premium loss
R"000 R"000 R"000 (R"000) R"000
Balance at 28 February 907 86 230 (86 657) - 480
2001
Shares issued in 44 360 404
settlement of debt
Profit for the year - - 3 853 - 3 853
Balance at 28 February 951 86 590 (82 804) - 4 737
2002
Issue of shares for 238 1 188 - - 1 426
Dudley"s acquisition
Issue of share for Get 149 744 - - 893
Fresh acquisition
Issue of shares for 1 096 4 385 - - 5 481
rights offer
Cost of issue of shares - (1 153) - - (1 153)
Increase in purchase - - -
price of Dudley"s 698 698
acquisition to be settled
in shares after year end
Profit for the year - - 7 838 - 7 838
Balance at 28 February 2 434 91 754 (74 966) 698 19 920
2003
Issue of 8 723 850 shares 87 611 - (698) -
for Dudley"s acquisition
Issue of 30 000 000 300 1 950 - - 2 250
shares for conversion of
loans
Profit for period - 628 628
Balance at 31 August 2003 2 821 94 315 (74 338) - 22 798
COMMENTARY
The directors of Beige are pleased to announce solid interim results for the six
months ended 31 August 2003. The accounting policies adopted for purposes of
this interim report comply, and have been consistently applied in all material
respects, with South African Statements of Generally Accepted Accounting
Practice (GAAP).
Results
During the six months under review, the company achieved reasonable results
despite significant pressure on export sales due to the strengthening of the
Rand, reporting earnings of R698 000 and headline earnings of R1,2 million
(2002: R1,14 million). Revenue increased by 18,7% to R34,1 million, whilst
operating profit, excluding exceptional items, declined by R187 000 compared to
the same period last year. This was primarily due to costs incurred in relation
to new international marketing initiatives, the creation of a centralised
marketing office and two factory premises moves in the period.
Dividends
No dividend has been declared for the six months ended 31 August 2003. As
previously announced, the directors will be considering declaring a dividend for
the year ending 28 February 2004.
Group review
Beige manufactures and distributes toiletries, soaps, laundry soaps, cosmetics
and allied products for bath and body. The company operates through clearly
focused subsidiaries.
During the period under review, most subsidiaries performed well, showing an
overall increase in both local and export sales, primarily due to increases in
volumes, which impacted positively on profitability, despite the negative impact
of the strengthening Rand on export prices. However, the strong Rand impacted
negatively on both the price and volumes of Argo Soap"s product sales,
particularly with regard to exports.
With effect from 01 March 2003, Beige exercised its option to purchase the
remaining 49% shareholding in Get Fresh from Craig van Zeil, who has since been
appointed as the Group"s International Sales and Marketing Director. His
appointment has resulted in an increase in export sales for the Group"s
subsidiaries. The company also established a centralised marketing office which
will focus on local sales, the impact of which is expected to come through in
the next twelve months.
In June 2003, Dudley"s acquired additional plant and equipment and moved into
bigger premises. At the same time, the Get Fresh soap manufacturing operations
were absorbed into Speciality and its specialised body products into the
Dudley"s operations. This has resulted in increased cost efficiencies going
forward and the larger premises provide a substantial increase in capacity.
The Beige factory shop in Sebenza was sold, effective 01 August 2003, as the
outlet incurred small losses, was not part of Beige"s core focus and did not
warrant management time.
During the period under review, shares were issued to the vendors of Dudley"s
for exceeding profit warranties resulting in the increase in the cost of
investment as reported in the previous period. In addition, loans from Arcay
Group Limited ("Arcay") were converted into equity following the exercise of
options held by Arcay, resulting in the further strengthening of Beige"s balance
sheet.
Prospects
The company is entering its traditionally busier season, and expects to produce
solid results in line with those of the prior year. Increased investments in
additional plant, technology and marketing and continued refinement of
accounting controls are expected to yield results later this year. The
economies of scale, production efficiencies and increased capacity arising from
the merging of Dudley"s and Get Fresh"s manufacturing operations into the larger
premises are already being evidenced.
Looking ahead, Beige"s focus will remain on maintaining its ranking as a
significant player in its niche market, expanding its reach through continuous
marketing efforts, continued focus on internal improvements and seeking out new
export opportunities, while improving profitability and enhancing shareholder
wealth. Beige will continue to evaluate acquisition opportunities in line with
the strategic focus of the Group.
Board appointments
On 18 July 2003 Mr GH Pinches and Mr NP le Roux were appointed as alternate
directors to IL Stromin and JH Rawlings respectively.
By order of the Board
Kevin de Villiers, (Chairman) John Rawlings, (Chief Executive Officer)
20 October 2003
Johannesburg
Registered office Transfer secretaries
Arcay House II, Number 3 Anerley Road, Parktown, Computershare Limited
2193 PO Box 62397, Marshalltown, 2107
Directors Sponsor
KDD de Villiers* Chairman, JH Rawlings** Chief Arcay Group Limited
Executive Officer, IL Stromin, LI Karp*, MK von
Berg, C van Zeil, MM Di Nicola, GH Pinches#, NP le
Roux#
*Non-executive **American #Alternate
Date: 20/10/2003 04:00:14 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
