| Fri 30 Apr 2004, 16:46 | | Preliminary Report For The |
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Burlington Industries Limited And Its Subsidiaries - Preliminary Report For The
Year Ended 31 December 2003
BURLINGTON INDUSTRIES LIMITED AND ITS SUBSIDIARIES
REG NO 1947/021549/06
SHARE CODE: BUR
ISIN: ZAE000001194
Registered Office: Cnr 7th Avenue and Nyman Street, Maitland, 7405
Transfer Office: Ultra Registrars (Pty) Limited, 11 Diagonal Street,
Johannesburg, 2001
Directors: P Kawitzky, P Kawitzky, A Kawitzky, R D Hugo
DIRECTORS PRELIMINARY REPORT FOR THE YEAR ENDED 31 DECEMBER 2003
CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2003
31.12.03 31.12.02
Reviewed Audited
Turnover 13 108 000 14 434 666
Cost of sales 9 390 000 7 700 212
Gross profit 3 718 000 6 734 454
Other operating costs (5 345 000) (5 071 730)
Operating (loss) / profit (1 627 000) 1 662 724
Finance charges (1 303 000) (1 380 493)
(Loss)/profit before taxation (2 930 000) 282 231
Taxation 2 988
Net (loss)/profit for the year (2 930 000) 279 243
Weighted average number of ordinary 600 000 600 000
shares
Earnings per ordinary share (cents) (488.3) 45.5
Headline earnings per ordinary share (487.8) 45.9
(Note 3)
Dividends per ordinary share (cents) - -
CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2003
31.12.03 31.12.02
Reviewed Audited
Audited
ASSETS
Non-current assets 11 608 000 11 507 266
Property, plant and equipment (Note 2) 10 764 000 10 619 469
Intangible assets 844 000 887 797
Current assets 15 881 000 16 880 767
27 489 000 28 388 033
EQUITY AND LIABILITIES
Equity capital 2 411 000 5 341 245
Ordinary shareholders interest 2 311 000 5 241 245
Preference share capital 100 000 100 000
Non current liabilities 19 116 000 16 391 840
Current liabilities 5 962 000 6 654 948
27 489 000 28 388 033
DIRECTORS REPORT
2003 was a difficult trading year especially in the knitwear industry. Over the
last decade we have experienced a downward trend in earnings in this division.
The knitting mill was therefore closed in the second half of 2003 with the
resultant payment of a retrenchment package to the employees on excess of
R1,250,000.
Trading in the other divisions of the group was satisfactory during 2003. Our
eighth Marlboro Originals Shop was opened in Hyde Park, Johannesburg in July
2003. We are pleased to report that the retail section of our operations is
progressing well and we are looking to open new stores in other up-market
shopping centres.
We expect an improvement in earnings for 2004. The closure of the unprofitable
division with lower overheads will have a positive effect.
No ordinary dividends have been paid or declared during the period.
FOR AND ON BEHALF OF THE BOARD
REVIEW BY INDEPENDENT AUDITORS
The financial information set out above has been reviewed, but not audited, by
the group"s auditors Grant Thornton. Their review report is available for
inspection at the company"s registered office.
PERRY KAWITZKY ANTHONY KAWITZKY
Joint Chairman Joint Chairman
29 April 2004
BURLINGTON INDUSTRIES LIMITED AND ITS SUBSIDIARIES
REG NO 1947/021549/06
SHARE CODE: BUR ISIN: ZAE000001194
Registered Office: Cnr 7th Avenue and Nyman Street, Maitland, 7405
Transfer Office: Ultra Registrars (Pty) Limited, 11 Diagonal Street,
Johannesburg, 2001
Directors: P Kawitzky, P Kawitzky, A Kawitzky, R D Hugo
DIRECTORS PRELIMINARY REPORT FOR THE YEAR ENDED 31 DECEMBER 2003
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2003
31.12.03 31.12.02
Reviewed Audited
R R
CASH FLOWS FROM OPERATING ACTIVITIES (2 881 000) (1 388 184)
CASH FLOWS FROM INVESTING ACTIVITIES (481 000) (246 936)
CASH FLOWS FROM FINANCING ACTIVITIES 2 725 000 1 109 181
NET DECREASE IN CASH AND CASH (637 000) (525 939)
EQUIVALENTS
Cash and cash equivalents at the (3 721 686) (3 195 747)
beginning of the period
Cash and cash equivalents at the end (4 358 686) (3 721 686)
of the period
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Ordinary Preference Non- Distri- Total
share share distri- butable
capital capital butable reserves
reserve
R R R R R
Group
Balance at 1 300 000 100 000 24 278 4 916 967 5 341 245
January 2003
Net profit (2 930 (2 930
for the year 000) 000)
Balance as 300 000 100 000 24 278 1 986 967 2 411 245
at 31
December
2003
BURLINGTON INDUSTRIES LIMITED AND ITS SUBSIDIARIES
REG NO 1947/021549/06
SHARE CODE: BUR ISIN: ZAE000001194
Registered Office: Cnr 7th Avenue and Nyman Street, Maitland, 7405
Transfer Office: Ultra Registrars (Pty) Limited, 11 Diagonal Street,
Johannesburg, 2001
Directors: P Kawitzky, P Kawitzky, A Kawitzky, R D Hugo
DIRECTORS PRELIMINARY REPORT FOR THE YEAR ENDED 31 DECEMBER 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, except as disclosed in note 1.8 and 1.9.
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 Property, Plant and Equipment
The group owns two 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 property, plant and equipment, 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
No depreciation is provided on land and buildings.
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.
BURLINGTON INDUSTRIES LIMITED AND ITS SUBSIDIARIES
REG NO 1947/021549/06
SHARE CODE: BUR ISIN: ZAE000001194
Registered Office: Cnr 7th Avenue and Nyman Street, Maitland, 7405
Transfer Office: Ultra Registrars (Pty) Limited, 11 Diagonal Street,
Johannesburg, 2001
Directors: P Kawitzky, P Kawitzky, A Kawitzky, R D Hugo
DIRECTORS PRELIMINARY REPORT FOR THE YEAR ENDED 31 DECEMBER 2003
NOTES TO THE FINANCIAL STATEMENTS
2. PROPERTY, PLANT AND EQUIPMENT
31.12.03 31.12.02
Reviewed Audited
Cost
Plant, vehicles and equipment 7 735 000 7 213 755
Valuation
Free hold property 7 138 000 7 138 079
14 873 000 14 351 834
Accumulated depreciation
Plant, vehicles and equipment 4 109 000 3 732 365
Net carrying value
Free hold property 7 138 000 7 138 079
Plant, vehicles and equipment 3 626 000 3 481 390
10 764 000 10 619 469
Movement for year
Capital expenditure
- Free hold property 9 080
- Plant, vehicles and equipment 522 000 258 017
Currency translation - plant, 48
vehicles and equipment
Depreciation (377 000) (348 487)
145 000 (81 342)
3. HEADLINE EARNINGS
The calculation of headline earnings
per share is based on earnings of
R (2 927 000) (2002 : R275 390)
Adjustments to net earnings are
detailed below:
Reconciliation between net earnings
and headline earnings
Net (loss)/ profit per income (2 930 000) 279 243
statement
Preference dividend (6 000)
Goodwill amortised 44 000 31 051
Profit on sale of non-trading assets (41 000) (28 904)
Headline earnings (2 927 000) 275 390
Date: 30/04/2004 04:22:13 PM Produced by the JSE SENS Department
