| Thu 27 Nov 2003, 17:18 | | REVIEWED INTERIM RESULTS FOR THE SIX MONTHS |
|
ALLIANCE PHARMACEUTICALS LIMITED - REVIEWED INTERIM RESULTS FOR THE SIX MONTHS
ENDED 31 AUGUST 2003
ALLIANCE PHARMACEUTICALS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1981/006145/06)
Share code ALN ISIN ZAE000011110
Share code ACN ISIN ZAE000011847
("Alliance", "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 positively affected by significant Rand strength
* Increase in earnings per share
COMMENTARY
Overview
Alliance operates in pharmaceuticals, the manufacture and distribution of
generic medicines, the manufacture and distribution of medical, surgical and
consumer disposables, admixture of parenteral nutrition and marketing and
distribution of consumer personal care products, with particular emphasis on the
manufacture and development of own brands and products.
As anticipated in the Trading Statement published on 6 September 2003, the
group"s earnings for the six months to 31 August 2003 were substantially higher
than those for the corresponding period last year. Commendable results were
achieved by most of the divisions. Trading margins, in particular, benefited
from the continued strengthening of the Rand and improved trading conditions.
Laminated Technologies incurred a loss during the period under review and is
still in the process of restructuring its operations.
Turnover, excluding that of Laminated Technologies, increased by 12,2%.
Financial review
The group"s earnings are supported by a strong cash flow from operating
activities of R3,9 million which reflects the positive financial position of the
group.
The higher effective tax rate for the current period is attributable to tax
losses in certain companies being carried forward and the provision for a
Secondary Tax on Companies charge of R357 000 relating to a prior period.
Earnings and headline earnings per share increased by 1,7 cents (77%) to 3,9
cents compared to 2,2 cents for the corresponding period last year.
Prospects and dividend policy
It is anticipated that, given a stable currency and the absence of unforseen
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 policies used in the preparation of the results are
consistent with those adopted 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 Black*, R T Ririe* (*non-executive).
Transfer secretaries: Computershare Limited
P O 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 8 114 384 105 439 211 541
Cost of sales (77 169) (75 933) (152 024)
Gross profit 26 37 215 29 506 59 517
Other operating income 61 503 991
Operating expenses (29 821) (26 328) (51 252)
Operating profit before amortisation 7 455 3 681 9 256
Amortisation of patents and trademarks (282) (290) (580)
Operating profit 112 7 173 3 391 8 676
Interest received 231 101 886
Finance costs (299) (304) (851)
Profit before taxation 123 7 105 3 188 8 711
Taxation 185 (3 029) (1 062) (3 436)
Profit from ordinary activities 92 4 076 2 126 5 275
Minority share of (profits)/losses (345) (17) 288
Net profit for the period 77 3 731 2 109 5 563
Earnings per share (cents)
Basic 3,9 2,2 5,8
Headline 3,9 2,2 5,8
Number of ordinary shares in issue (000"s) 95 677 95 677 95 677
GROUP BALANCE SHEET
31 Aug 31 Aug 28 Feb
2003 2002 2003
Reviewed Reviewed Audited
R"000 R"000 R"000
ASSETS
Property, plant and equipment 9 655 10 045 9 976
Pharmaceutical registrations,
patents and trademarks 16 200 16 632 16 482
Financial assets 35 35 35
Deferred taxation 645 305 434
Current assets 90 301 82 540 79 658
Inventories 43 326 41 806 42 146
Trade and other receivables 35 409 33 772 28 717
Deferred expenditure 1 322 1 279 1 437
Taxation 892 404 6
Cash and cash equivalents 9 352 5 279 7 352
Total assets 116 836 109 557 106 585
EQUITY AND LIABILITIES
Shareholders" interest 71 339 64 392 67 608
Minority interest in subsidiaries 725 250 288
Long-term borrowings 669 1 137 1 011
Deferred taxation 715 883 824
Current liabilities 43 388 42 895 36 854
Short-term borrowings 195 1 951 771
Taxation 6 836 748 2 530
Trade and other payables 35 250 38 740 32 534
Provisions 1 107 1 456 1 019
Total equity and liabilities 116 836 109 557 106 585
Net asset value per share (cents) 74,6 67,3 70,7
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 3 861 3 406 8 253
Net interest received/(paid) 51 (203) 35
Taxation paid (48) 23 (360)
Cash flow from operating activities 3 864 3 226 7 928
Cash flow from investing activities (1 038) (918) (2 346)
Cash flow from financing activities (826) (219) (1 420)
Net cash flow for the period 2 000 2 089 4 162
Cash and cash equivalents at
beginning of period 7 352 3 190 3 190
Cash and cash equivalents at end of period 9 352 5 279 7 352
STATEMENT OF CHANGES IN EQUITY
Share Non-
distri- Distri-
capital and butable butable
premium reserves reserves Total
R"000 R"000 R"000 R"000
Balance at 28 February 2002 34 459 25 27 799 62 283
Net profit for the period - - 2 109 2 109
Balance at 31 August 2002 34 459 25 29 908 64 392
Share of accumulated loss of
subsidiary not previously consolidated - - (238) (238)
Net profit for the period - - 3 454 3 454
Transfer from non-distributable reserves - (3) 3 -
Balance at 28 February 2003 34 459 22 33 127 67 608
Net profit for the period - - 3 731 3 731
Transfer from non-distributable reserves - (3) 3 -
Balance at 31 August 2003 34 459 19 36 861 71 339
Date: 27/11/2003 05:01:05 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
