| Thu 27 Nov 2003, 17:04 | | REVIEWED INTERIM RESULTS FOR THE SIX MONTHS ENDED |
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FORIM HOLDINGS LIMITED - REVIEWED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31
AUGUST 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")
REVIEWED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2003
* Continued improvement in returns
* Increase in operating margins and profits
* Results affected by significant Rand strength
* Increase in earnings per share
COMMENTARY
Overview
In addition to the letting of the group"s properties in and around the
Johanneburg Central Business District, the group"s major activities are
conducted by its listed subsidiary, Alliance Pharmaceuticals Limited
("Alliance"), which operates in the health care and consumer personal care
market sectors. Shareholders are referred to the interim results of Alliance
which are published contemporaneously with this notice. As anticipated
in the Trading Statement published in the press on 6 September 2003, the group"s
earnings are substantially higher than those of the same period last year. This
was achieved through the improved trading results of Alliance and the
elimination of gearing in the group as a result of the disposal of some of the
group"s investment properties, as previously reported.
Earnings per share for the period increased by 3,7 cents to 5,2 cents compared
to 1,5 cents for the corresponding period last year and headline earnings
increased by 3,8 cents to 6,2 cents compared to 2,4 cents for the same period.
Prospects and dividend policy
It is anticipated that, given a stable currency and the absence of unforeseen
circumstances, the group will continue to deliver improved results for the
second half of the year.
It is the company"s policy to consider a dividend at the end of each financial
year.
Accounting policies
The results have been compiled in accordance with South African Statements of
Generally Accepted Accounting Practice, the Listings Requirements of the JSE
Securities Exchange South Africa and Schedule 4 of the South African Companies
Act. The accounting polices used in the preparation of the results are
consistent with those adopoted in the comparative reporting periods.
Review of results by auditors
The interim report has been reviewed by the company"s auditors, Grant Thornton.
A copy of their unqualified review report is available for inspection at the
registered office of the company.
By order of the Board
H R Levin M Gelbart
Chairman Chief Executive Officer
27 November 2003
Directors: H R Levin* (chairman), M Gelbart (Chief Executive Officer),
Y Bhayat*, J E Forman (*non-executive)
Transfer Secretaries: Computershare Limited,
PO Box 1053, Johannesburg, 2003
Company secretary: Executive Secretarial Services CC,
P O Box 261269, Excom, 2023
Sponsors: Sasfin Corporate Finance, a division of Sasfin Bank Limited
GROUP INCOME STATEMENT
Six months Six months Year
Ended ended ended
31 August 31 August 28 Feb
2003 2002 2003
% Reviewed Reviewed Audited
change R"000 R"000 R"000
Turnover 9 115 829 106 609 213 880
Cost of sales (76 852) (75 933) (150 080)
Gross profit 27 38 977 30 676 63 800
Other operating income 563 714 992
Operating expenses (31 138) (26 781) (53 748)
Operating profit before amortisation
and fair value adjustment 8 402 4 609 11 044
Amortisation of goodwill,
patents and trademarks (742) (750) (1 500)
Fair value adjustment of
investment property (28) - 40
Operating profit 98 7 632 3 859 9 584
Interest received 1 555 114 547
Finance costs (1 169) (1 179) (2 681)
Profit before taxation 187 8 018 2 794 7 450
Taxation 206 (3 590) (1 175) (3 755)
Profit from ordinary activities 174 4 428 1 619 3 695
Minority share of profits (1 839) (862) (1 940)
Net profit for the period 242 2 589 757 1 755
Earnings per share (cents)
Basic earnings 5,2 1,5 3,5
Headline earnings 6,2 2,4 5,3
Number of ordinary shares
in issue (000"s) 50 000 50 000 50 000
Reconciliation of headline
earnings to earnings
Earnings 2 589 757 1 755
Amortisation of goodwill 460 460 920
Fair value adjustment of
investment property 28 - (40)
Headline earnings 3 077 1 217 2 635
GROUP BALANCE SHEET
31 August 31 August 28 Feb
2003 2002 2003
Reviewed Reviewed Audited
R"000 R"000 R"000
ASSETS
Property, plant and equipment 9 655 10 049 10 012
Investment properties 10 400 23 040 23 040
Goodwill, pharmaceutical registrations,
patents and trademarks 27 845 29 197 28 587
Financial assets 35 379 35
Deferred taxation 645 305 434
Current assets 93 529 83 811 80 524
Inventories 43 326 41 806 42 146
Trade and other receivables 36 517 34 533 28 909
Deferred expenditure 1 403 1 279 1 463
Taxation 1 168 766 367
Cash and cash equivalents 11 115 5 427 7 639
Total assets 142 109 146 781 142 632
EQUITY AND LIABILITIES
Shareholders" interest 58 460 55 014 55 871
Minority interest in subsidiaries 36 062 32 806 34 132
Long-term borrowings 669 3 338 1 011
Deferred taxation 839 1 400 1 395
Current liabilities 46 079 54 223 50 223
Short-term borrowings 195 2 151 3 171
Taxation 8 189 1 111 2 968
Trade and other payables 36 588 40 290 33 916
Bank overdraft - 9 215 9 149
Provisions 1 107 1 456 1 019
Total equity and liabilities 142 109 146 781 142 632
Net asset value per share (cents) 116,9 110,0 111,7
GROUP CASH FLOW STATEMENT
Six months Six months Year
ended ended ended
31 August 31 August 28 Feb
2003 2002 2003
Reviewed Reviewed Audited
R"000 R"000 R"000
Cash generated from operations 3 801 4 256 10 690
Net interest received/(paid) 505 (1 065) (2 134)
Taxation paid (57) 19 (439)
Cash flow from operating activities 4 249 3 210 8 117
Cash flow from investing activities 11 602 (918) (2 346)
Cash flow from financing activities (3 226) (219) (1 420)
Net cash flow for the period 12 625 2 073 4 351
Cash and cash equivalents
at beginning of period (1 510) (5 861) (5 861)
CCash and cash equivalents a end of period 11 115 (3 788) (1 510)
STATEMENT OF CHANGES IN EQUITY
Non-
Share distri- Distri-
capital and butable butable
premium reserves reserves Total
R"000 R"000 R"000 R"000
Balance at 28 February 2002 23 757 405 30 095 54 257
Net profit for the period - - 757 757
Balance at 31 August 2002 23 757 405 30 852 55 014
Share of accumulated loss of subsidiary
not previously consolidated - - (141) (141)
Net profit for the period - - 998 998
Transfer from non-distributable reserves - (45) 45 -
Balance at 1 March 2003 23 757 360 31 754 55 871
Net profit for the period - - 2 589 2 589
Transfer from non-distributable reserves - (23) 23 -
Balance at 31 August 2003 23 757 337 34 366 58 460
Date: 27/11/2003 05:00:05 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
