| Wed 25 Aug 2004, 16:45 | | Audited Results For The Year Ended 30 June 2004 |
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Brandcorp - Audited Results For The Year Ended 30 June 2004 Brandcorp Holdings Limited (Incorporated in the Republic of South Africa) (Registration No. 1992/006647/06) Share code: BRC ISIN number: ZAE000013611 (`Brandcorp`) BRANDCORP HOLDINGS LIMITED AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2004 HEADLINE EARNINGS PER SHARE INCREASED BY 38.1% OPERATING PROFIT INCREASED BY 24.3% NET ASSET VALUE PER SHARE INCREASED BY 12% DISTRIBUTIONS PER SHARE INCREASED BY 50% ABRIDGED GROUP INCOME STATEMENT 30 June 2004 30 June 2003 % change Audited Audited R000 R000 Turnover 720,655 696,832 3.4 Operating profit 88,929 71,521 24.3 Net interest received /(paid) 439 (8,141) Net profit before taxation 89,368 63,380 41.0 Taxation (29,723) (20,725) 43.4 Current (26,284) (18,952) Secondary tax on companies (1,114) (1,128) Deferred taxation (2,325) (645) Net profit after taxation 59,645 42,655 39.8 Number of shares in issue 73,923 70,528 (000)* Weighted ave. no. of shares 74,155 71,224 (000)* Headline earnings per share - 80.4 58.2 38.1 cents Earnings per share - cents 80.4 59.9 34.2 Diluted headline earnings per 75.8 51.4 47.5 share - cents Diluted earnings per share - 75.8 52.9 43.3 cents *Net of treasury shares RECONCILIATION OF HEADLINE EARNINGS 30 June 2004 30 June 2003 Audited Audited R000 R000 Net profit after taxation 59,645 42,655 Profit on disposal of (34) (1,177) tangible assets Headline earnings 59,611 41,478 ABRIDGED GROUP BALANCE SHEET 30 June 2004 30 June 2003 % change Audited Audited R000 R000 ASSETS Non - current assets 24,982 27,304 Tangible assets 15,860 15,557 Intangible assets 900 1,200 Deferred taxation 8,222 10,547 Current assets 329,066 298,677 Inventories 118,203 108,622 Accounts receivable 139,126 118,369 Cash and cash equivalents 71,737 71,686 354,048 325,981 EQUITY AND LIABILITIES Capital and reserves 204,669 174,439 Non-current interest bearing 22,957 39,573 liabilities Current liabilities 126,422 111,969 Non-interest bearing 98,304 84,385 liabilities Interest bearing liabilities 15,831 14,140 Taxation 12,287 13,444 354,048 325,981 Net asset value per share 276.9 247.3 12.0 (cents) ABRIDGED GROUP CASH FLOW STATEMENT 30 June 2004 30 June 2003 Audited Audited R000 R000 OPERATING ACTIVITIES 51,639 59,732 Operating profit before working 92,641 73,980 capital movements Movements in working capital (16,425) 8,809 Net finance income (costs) 439 (8,141) Taxation paid (25,016) (14,916) INVESTING ACTIVITIES (27,652) (8,270) Purchase of tangible assets (3,783) (5,197) Proceeds on disposal of tangible 68 1,236 assets Purchase of trademarks - (1,500) Ordinary shares repurchased (8,205) (1,799) Transactions by share trust (15,732) (1,010) FINANCING ACTIVITIES (23,936) (18,453) Proceeds from issue of share 4,813 - capital Payment of borrowings (14,925) (9,987) Distributions to shareholders (13,824) (8,466) NET MOVEMENT IN CASH RESOURCES 51 33,009 Cash and cash equivalents at the 71,686 38,677 beginning of the year Cash and cash equivalents at the 71,737 71,686 end of the year STATEMENT OF CHANGES IN EQUITY Share Share Distribut Total Capital Premium able R000 R000 R000 Reserve R000 Balance at 1 July 2002 708 18,043 124,353 143,104 Net profit after - - 42,655 42,655 taxation Dividends - - (8,511) (8,511) Ordinary shares (8) (1,791) - (1,799) repurchased and cancelled Net transactions by 6 (1,016) - (1,010) share trust Balance at 1 July 2003 706 15,236 158,497 174,439 Net profit after - - 59,645 59,645 taxation Dividends - - (9,323) (9,323) Capital distribution - (4,507) - (4,507) Ordinary shares (28) (8,177) - (8,205) repurchased and cancelled Ordinary shares issued 34 1,688 - 1,722 Net transactions by 27 (2,398) (6,731) (9,102) share trust Balance at 30 June 2004 739 1,842 202,088 204,669 SEGMENT ANALYSIS Turnover Operati Assets Liabilities R000 ng R000 R000 Profit R000 Tools & Hardware 485,973 60,843 211,890 83,165 Leisure & Accessories 100,259 8,066 48,747 24,744 House & Home 134,423 17,737 55,080 31,576 Corporate - 2,283 38,331 9,894 Total 720,655 88,929 354,048 149,379 Nature of Business Brandcorp distributes niche and consumer products to a broad range of customers through three trading divisions. Matus distributes Power Tools, Hand Tools & Hardware, servicing the needs of theindustrial, building and construction, engineering, agricultural and mining sectors. Interbrand which distributes Luggage, Leisure & Accessory products and MIC / Prestige which distributes House & Home products, serve the general consumer through their retail customers. Financial Review All three of Brandcorp`s divisions produced outstanding results for the year. Lower input costs, a consequence of the strength of the local currency, has resulted in improved operating margins. Turnover increased from R696.8m to R720.7m, with unit sales increasing by 11%. Operating profit increased from R71.5m to R88.9m. Earnings per share increased by 34.2% from 59.9 cents to 80.4 cents and headlineearnings per share increased by 38.1% from 58.2 cents to 80.4 cents. The balance sheet remains extremely sound. Net asset value increased from 247.3cents to 276.9 cents. Cash flows from operations, before working capital movements, amounted to R92.6mcompared to R73.9m in the previous year. Generally Accepted Accounting Practice These financial statements have been prepared on the historical cost basis in conformity with South African Statements of Generally Accepted Accounting Practice. The accounting policies applied in the preparation of these financial statements are consistent with the prior year. Distributions to Shareholders The board has declared a final dividend of 18 cents per share, bringing the total distribution for the year (taking into account the capital distribution of6 cents per share declared on 27 February 2004) to 24 cents per share. The salient dates are as follows: Declaration date: Wednesday 25 August 2004 Last date to trade `cum` dividend: Friday 10 September 2004 Date trading commences `ex` dividend: Monday 13 September 2004 Record date: Friday 17 September 2004 Date of payment: Monday 20 September 2004 Share certificates may not be dematerialised or rematerialised between Monday 13September 2004 and Friday 17 September 2004, both days inclusive. Auditors Report These results have been audited by Grant Thornton and their unqualified audit opinion is available for inspection at the company`s registered office. Empowerment Brandcorp has consulted with its advisors and has held numerous discussions withempowerment groups regarding its empowerment initiatives. Brandcorp is optimistic that meaningful progress will be made in the forthcoming year. Prospects The general business environment in which Brandcorp trades is positive and the recent reduction in interest rates augurs well for the continued prosperity of the group. Brandcorp intends to broaden its trading activities through acquisition by pursuing businesses with solid track records and quality management, to which Brandcorp can add value, by the implementation of its proven distribution strategies. On behalf of the board COLIN DATNOW BRAD TAUROG Chief Executive Chief Financial Officer 25 August 2004 Transfer Secretaries Computershare Investor Services 2004 (Pty) Ltd Ground Floor 70 Marshall Street Johannesburg, 2001 Secretary and Registered Office Light and Livingstone Financial Services CC 3rd Floor, Palm Grove 196 Louis Botha Avenue Houghton Estate, 2198 DIRECTORS CS Datnow S Ellerine* JD Goldberg JC Livingstone* HB Marcus BD Taurog M Yachad* (*Non-executive) BRANDCORP HOLDINGS LIMITED. Incorporated in the Republic of South Africa. (`Brandcorp` or `the group`). Registration number 1992/006647/06. JSE Code: BRC.ISIN No.: ZAE000013611. These results can be viewed on our website: www.brandcorp.co.za Date: 25/08/2004 04:08:50 PM Produced by the JSE SENS Department
