| Thu 16 Sep 2004, 9:37 | | REVIEWED RESULTS |
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AFRICAN & OVERSEAS ENTERPRISES LIMITED - REVIEWED RESULTS FOR THE
YEAR ENDED 30 JUNE 2004
African & Overseas Enterprises Limited
(Incorporated in the Republic of South Africa)
(Registration Number 1947/027461/06)
Share codes: AOO - AON - AOVP
ISIN Codes: ZAE000000485 - ZAE000009718 - ZAE000000493
REVIEWED RESULTS FOR THE YEAR ENDED 30 JUNE 2004
INCOME STATEMENT Consolidated (R000)
2004 2003
(Reviewed) (Audited)
Revenue 373,612 354,764
Net operating income before
depreciation 14,977 27,007
Depreciation 10,303 8,834
Net operating income 4,674 18,173
Net interest received 2,956 2,512
Net income 7,630 20,685
Income from associated company 551 597
Income before taxation 8,181 21,282
Taxation 3,510 6,976
Income after taxation 4,671 14,306
Attributable to outside
shareholders in subsidiaries 2,140 5,466
2,531 8,840
Preference dividends 151 116
Net income attributable to
ordinary and N ordinary
shareholders 2,380 8,724
Earnings/headline earnings
per share (cents) 20.9 76.6
Proposed dividend per
share (cents)
ased on the years to
which it relates 32.0 32.0
Dividend cover
ased on the years to
which it relates 0.7 2.4
Weighted average number of
equity shares on which
earnings per share is based (000) 11,387 11,387
Number of equity shares in
issue (000) 11,387 11,387
BALANCE SHEET Consolidated (R000)
Assets
Non current assets 41,362 35,214
Fixed assets 36,512 30,900
Investments (unlisted) 2,182 1,912
Deferred taxation 2,668 2,402
Current assets 166,666 180,091
Inventory 73,626 121,213
Debtors 28,338 34,676
Cash 64,702 24,202
Total assets 208,028 215,305
Equity and liabilities
Capital and reserves 98,829 100,266
Share capital 1,200 1,200
Share premium 6,616 6,616
Non distributable reserves 2,319 2,475
Distributable reserves 88,694 89,975
Minority interest 76,857 76,616
Current liabilities 32,342 38,423
Accounts payable 30,918 35,729
Taxation 1,424 2,694
Total equity and liabilities 208,028 215,305
ABRIDGED CASH FLOW STATEMENT Consolidated (R000)
Cash generated by operations 15,242 27,597
Working capital changes 49,468 (11,752)
Interest received (net) 2,956 2,512
Taxation (5,400) (4,544)
Dividends paid (5,585) (3,566)
Net cash inflows from operations 56,681 10,247
Net cash outflows from
investing activities
including additions to
fixed assets (15,899) (10,590)
Net increase/(decrease)
in cash 40,782 (343)
Cash at the beginning
of the period 24,202 24,789
Effect of foreign exchange
rate changes (282) (244)
Cash at the end of the period 64,702 24,202
OTHER INFORMATION Consolidated (R000)
Capital expenditure 17,067 13,520
Capital commitments
Contracted for 1,065 1,044
Authorised not contracted for 8,476 4,449
Current ratio 5.2 4.7
STATEMENT OF CHANGES IN EQUITY Consolidated (R000)
2004 2003
(Reviewed) (Audited)
Share capital 1,200 1,200
Share premium 6,616 6,616
Nondistributable reserves
Opening balance 2,475 2,608
Foreign exchange rate changes (156) (133)
2,319 2,475
Distributable reserves
Opening balance 89,975 83,195
Adjustment AC132 - 333
89,975 83,528
Profit after taxation 2,531 8,840
Dividends (3,812) (2,393)
88,694 89,975
SEGMENTAL REPORTING Consolidated (R000)
Revenue
Manufacturing 244,613 267,679
less: Intersegment sales (153,140) (166,616)
External sales 91,473 101,063
Retail 282,139 253,701
Total 373,612 354,764
Net operating income/(loss)
Manufacturing (10,238) 165
Retail 13,635 22,890
Consolidation adjustment 1,277 (4,882)
Total 4,674 18,173
Depreciation included in net operating income
Manufacturing 3,829 3,721
Retail 6,474 5,113
Total 10,303 8,834
Total segment assets (excl cash)
Manufacturing 106,783 138,875
Retail 65,623 78,601
Consolidation adjustment (33,930) (30,687)
Total 138,476 186,789
Total segment liabilities
Manufacturing (24,444) (29,455)
Retail (32,705) (27,686)
Consolidation adjustment 26,231 21,412
Total (30,918) (35,729)
Capital expenditure
Manufacturing 3,536 5,723
Retail 13,531 7,797
Total 17,067 13,520
Notes
1. Basis of preparation
This report complies with the South African Statement of
Generally Accepted Accounting Practice.
2. Accounting policies
This report has been prepared on the historical cost basis and
in accordance with the accounting policies which were applied
in the preparation of the group`s annual financial statements
in the prior year, except for the adoption during the period of
AC132: Consolidated financial statements and accounting for
investments in subsidiaries, in so far as it requires a share
trust which meets the definition of a subsidiary to be
consolidated.
3. Comparative figures
To meet the requirements of AC132: Consolidated financial
statements and accounting for investments in subsidiaries,
comparative figures have been restated.
4. Dividend
In line with the policy adopted in Rex Trueform, the board has
recommended that the dividend be maintained.
Accordingly the board has recommended that a dividend of 32,0
cents per share be declared on the ordinary and the `N`
ordinary shares. Shareholders will be asked to consider, and if
deemed fit, approve this recommendation of the directors at the
annual general meeting of the company to be held on 5 November
2004.
In terms of the articles of association, the 6% cumulative
participating preference shares carry the right to receive an
additional 0,5% dividend for every completed 1,25% dividend in
excess of 2,5% declared on the ordinary shares in any one
financial year. Preference shareholders will therefore be
entitled to an extra dividend of 24,5% (49,0 cents per share)
which will be included in the halfyearly payment in December
2004. An announcement detailing the terms of the dividend
declaration will be made on 5 November 2004, following the
annual general meeting.
The annual report containing a detailed review of the
operations of the company together with the audited financial
statements will be posted to shareholders by mid October 2004.
Comment
The principal operating subsidiary, Rex Trueform Clothing Company
Limited reports as follows:
Notwithstanding an increase in Revenue of 5,3% it is
disappointing to report that net operating income fell by almost
70%.
The main reasons for this are threefold:
1. The highly competitive trading conditions in the clothing
and textile industry resulting in a larger than expected
loss in manufacturing.
2. Associated with the above, a high level of redundancy
payments at all levels.
3. The effect of the major initiative to reduce stock levels
and the adoption of a more conservative policy in regard to
stock valuations.
The Queenspark retail chain continues to show pleasing growth. If
the effects of the stock reduction programme are excluded,
revenue increased by 13% over the previous year with no erosion
in margins.
The benefits of the stock reduction initiative can be seen in the
balance sheet where inventory has reduced by almost R50 million
with a commensurate increase in cash of R38 million.
Prospects
Revenue in Queenspark for the first 9 weeks of the current year
is well ahead of the comparable period of the previous year. The
current spring/summer range is being favourably received and with
a pleasing improvement in margins.
Manufacturing however continues to be problematic with the
continued strength of the Rand and, although limited success has
been achieved in the local market, export opportunities are
limited and margins remain under pressure.
The drive to improve efficiencies continues across all sections
of the business.
Review by independent auditors
The financial information has been reviewed by KPMG Inc. whose
unqualified review opinion is available for inspection at the
company`s registered office. It is anticipated that the
unqualified audit opinion will be issued once the detailed
financial statements have been finalised.
Signed on behalf of the Board:
GM Thomas (Chairman)
PE Shub (Chief Executive Officer)
September 15, 2004
Cape Town
Transfer Secretaries Registered office:
Computershare Investor Services Rex Buildings
2004 (Pty) Ltd. 263 Victoria Road
70 Marshall Street Salt River,
Johannesburg 2001 Cape, 7925
Directors: GM Thomas (Chairman), PE Shub (Chief Executive
Officer), ML Krawitz, CEA Radowsky
Secretary: AA Hodgkinson
Date: 16/09/2004 07:00:14 AM Produced by the JSE SENS Department
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