|
ALLIANCE - AUDITED RESULTS FOR THE YEAR ENDED 29 FEBRUARY 2004 AND
FURTHER CAUTIONARY ANNOUNCEMENT
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`)
AUDITED RESULTS FOR THE YEAR ENDED 29 FEBRUARY 2004
* Continued improvement in returns
* Increase in operating margins and profits
* Increase in earnings per share
COMMENTARY
Overview
Alliance operates in pharmaceuticals, medical, surgical and consumable
disposables, manufacture and distribution of generic medicines, marketing and
distribution of consumer personal care products, with particular emphasis on the
manufacture and development of own brands and products. The group, through its
subsidiary Isotec Nutrition (Pty) Ltd (`Isotec`), also prepared the admixture of
parenteral nutrition products, which business is in the process of being sold
with effect from 1 March 2004. Isotec`s contribution to the results of the group
is reflected in the note on discontinued operations.
As notified in the Trading Statement published on 16 April 2004, shareholders
of the company were advised that the results for the year to 29 February 2004
would show a substantial improvement on the results for the previous year.
Pleasing results were achieved by most of the divisions. Trading margins, in
particular, benefitted from a stable Rand and improved trading conditions.
Although Laminated Technologies incurred a loss in the period under review,
strategies are in place to improve the returns in this business in the new year.
Financial review
The group`s earnings continue to be supported by a strong cash flow from
operating activities of R13 million. Inventories were reduced significantly as a
result of careful planning and the virtually ungeared balance sheet reflects the
strong cash flows in recent years.
An impairment provision of R1,194 million has been made against the assets of
Laminated Technologies.
Earnings per share increased by 4.8 cents (83%) to 10.6 cents and headline
earnings per share increased by 6.0 cents (103%) to 11.8 cents both compared to
5.8 cents for the previous year.
Discontinued operations
In the notice of 16 April 2004, shareholders were advised that an agreement had
been entered into to dispose of the business of Isotec for a cash consideration
of R25 million subject to the fulfilment or waiver of certain suspensive
conditions. Alliance has an effective 80% interest in Isotec. Isotec`s effective
contribution to the group is set out in the note on discontinued operations.
Prospects
The group`s successful core businesses will continue to provide the base for
future growth.
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 (`JSE`) and Schedule 4 of the South African
Companies Act. The accounting policies used in the preparation of the results
are consistent in all material respects with those adopted in the comparative
reporting periods.
Audit report
The results for the year ended 29 February 2004 have been audited by Grant
Thornton. Their unqualified audit opinion is available for inspection at the
company`s registered office.
Further cautionary announcement
Shareholders are referred to the further cautionary announcement published on
SENS on 16 April 2004. The negotiations referred to in the further cautionary
announcement are continuing and may result in a change in control in the
company, an offer to minority shareholders and/or an affected transaction in
terms of the Securities Regulation Code on Take-overs and Mergers. As these
negotiations may have an effect on the price at which the company`s securities
trade on the JSE, shareholders of Alliance are advised to continue to exercise
caution when dealing in their shares until a further announcement is made.
H R Levin M Gelbart
Chairman Chief Executive Officer
28 May 2004
Directors: H R Levin* (Chairman), M Gelbart (Chief Executive Officer), Y
Bhayat*,
J Black*, R T Ririe* (*non-executive)
Transfer Secretaries: Computershare Investor Services 2004 (Pty) Ltd
PO Box 1053, Johannesburg, 2000
Company secretary: Executive Secretarial Services CC
PO Box 261269, Excom, 2023
Sponsor: Sasfin Corporate Finance, a division of Sasfin Bank Limited
INCOME STATEMENT
2004 2003
Audited Audited
R`000 R`000
Turnover 230 021 211 541
Cost of sales (155 100) (153 358)
Gross profit 74 921 58 183
Operating expenses (56 394) (48 927)
Operating profit before amortisation 18 527 9 256
Amortisation of patents and trademarks (580) (580)
Operating profit 17 947 8 676
Net interest received 479 35
Profit before taxation 18 426 8 711
Taxation (8 054) (3 436)
Profit after taxation 10 372 5 275
Minority share of (profits)/losses (231) 288
Profit for the year 10 141 5 563
Earnings per share (cents)
Basic earnings 10,6 5,8
Headline earnings 11,8 5,8
Number of ordinary shares in issue (`000) 95 677 95 677
Reconciliation of headline earnings to earnings
Profit for the year 10 141 5 563
Profit on disposal of property, plant and equipment (26) (54)
Impairment of assets 1 194 -
Headline earnings 11 309 5 509
DISCONTINUED OPERATIONS
INCOME STATEMENT
2004 2003
Audited Audited
R`000 R`000
Turnover 79 703 68 681
Cost of sales (52 781) (48 064)
Gross profit 26 922 20 617
Operating expenses (13 817) (10 639)
Operating profit 13 105 9 978
Net interest paid (37) (142)
Profit before taxation 13 068 9 836
Taxation (3 938) (2 967)
Profit after taxation 9 130 6 869
Minority share of profits (1 826) (1 374)
Profit for the year 7 304 5 495
Earnings per share (cents)
Basic and headline earnings 7,6 5,7
BALANCE SHEET
2004 2003
Audited Audited
R`000 R`000
ASSETS
Property, plant and equipment 7 718 9 976
Intangible assets 15 916 16 482
Financial assets 35 35
Deferred taxation 424 434
Current assets 89 823 79 658
Inventories 37 728 42 146
Trade and other receivables 35 124 28 717
Deferred expenses 209 1 216
Prepaid expenses 827 221
Taxation 2 6
Cash and cash equivalents 15 933 7 352
Total assets 113 916 106 585
EQUITY AND LIABILITIES
Shareholders` interest 75 836 67 608
Minority interest 614 288
Long-term liabilities 642 1 011
Deferred taxation 804 824
Current liabilities 36 020 36 854
Interest bearing liabilities 331 771
Taxation 8 050 2 530
Trade and other payables 26 517 32 534
Provisions 1 122 1 019
Total equity and liabilities 113 916 106 585
Net asset value per share (cents) 79,3 70,7
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 1 March 2002 34 459 25 27 799 62 283
Share of accumulated loss on joint
venture not previously consolidated - - (238) (238)
Net profit for the year - - 5 563 5 563
Transfer from non-distributable reserves - (3) 3 -
Balance at 1 March 2003 34 459 22 33 127 67 608
Net profit for the year - - 10 141 10 141
Repayment of share premium (1 913) - - (1 913)
Transfer from non-distributable
Reserves - (3) 3 -
Balance at 29 February 2004 32 546 19 43 271 75 836
CASH FLOW STATEMENT
2004 2003
Audited Audited
R`000 R`000
Cash generated from operations 15 047 8 253
Net interest received 488 35
Taxation paid (2 549) (360)
Cash flow from operating activities 12 986 7 928
Cash flow from investing activities (1 778) (2 346)
Cash flow from financing activities (2 627) (1 420)
Net cash flow for the year 8 581 4 162
Cash and cash equivalents at beginning of year 7 352 3 190
Cash and cash equivalents at end of year 15 933 7 352
Date: 31/05/2004 03:27:12 PM Produced by the JSE SENS Department
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
