| Thu 7 Oct 2004, 17:31 | | UNAUDITED INTERIM RESULTS |
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GLOBAL VILLAGE HOLDINGS LIMITED - UNAUDITED INTERIM RESULTS
GLOBAL VILLAGE HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1997/017632/06)
(`Glovill` or `the company`)
Share Code: GLL
ISIN: ZAE000015426
ABRIDGED CONSOLIDATED INCOME STATEMENT
Unaudited Audited
Six months ended Year ended
31 August 31 August % 29 February
2004 2003 Change 2004
R`000 R`000 R`000
TURNOVER 19,764 17,293 14, 3 36,993
Earnings before interest, tax
depreciation and
amortisation 3,511 2,792 25,8 4,055
Depreciation (1,317) (1,099) -19, 8 (2,379)
Amortisation (496) (465) -6, 7 (935)
Net interest (paid)/received (60) 249 -124, 1 223
Net income before taxation 1,638 1,477 10, 9 964
Taxation - normal (790) (560) - 41.1 (681)
- prior year
adjustment - 1065
- deferred 413 (154) 368, 2 (760)
Retained income for period 1,261 763 65, 3 588
Earnings per share (cents) 1, 61 0.8 0, 67
Headline earnings per share
(cents) 2, 24 1.3 1, 48
Number of shares (`000) 78,415 94,000 87,909
HEADLINE EARNINGS ARE DETERMINED AS FOLLOWS:
Attributable to ordinary
Shareholders 1,261 763 588
Amortisation of Intangible
assets 496 465 463
Impairment loss - - 194
Write downs - - 60
Headline earnings 1,757 1,228 43,1 1,305
ABRIDGED CONSOLIDATED BALANCE SHEET
As at: 31 August 31 August 29 February
2004 2003 2004
R`000 R`000 R`000
ASSETS
Non-current assets 33,563 32,252 34,298
Property, plant and equipment 19,528 16,990 19,287
Intangible assets 12,655 13,814 13,151
Loans receivable - - 472
Loan to share incentive scheme 1, 380 1,448 1,388
Current assets 9,952 8,903 4,540
Inventory 59 108 81
Accounts receivable 5,388 2,153 1,072
Bank, call balances and cash 4,505 6,642 3,387
TOTAL ASSETS 43,515 41,155 38,838
EQUITY AND LIABILITIES
Capital and reserves 29,561 34,331 28,300
Issued capital 33,760 39,616 33,760
Accumulated loss (4,199) (5,285) (5,460)
Non-current Liabilities 6,840 1,691 5,789
Deferred Tax 1,007 813 1,420
Long term liabilities 5,833 878 4,369
Current Liabilities 7,114 5,133 4,749
Accounts payable 6,251 4,116 4,676
Taxation 863 1,017 73
TOTAL EQUITIES AND LIABILITIES 43,515 41,155 38,838
Number of ordinary shares issued 78,415 94,000 87,909
Net asset value per share (cents) 37,70 36,52 32,19
ABRIDGED CONSOLIDATED CASH FLOW STATEMENT
Unaudited Audited
Six months ended Year ended
31 August 31 August 29February
2004 2003 2004
R`000 R`000 R`000
Cash flow from operating 1,204 3,026 4,341
Cash effects of investing
activities (1,550) (861) (4,845)
Cash effects of financing
activities 1,464 (94) (680)
Net increase /(decrease) in cash and
cash flow equivalents 1,118 2,071 (1,184)
Cash and cash equivalents at
beginning of period 3,387 4,571 4,571
Cash and cash equivalents at the
end of year 4,505 6,642 3,387
STATEMENT OF CHANGES IN EQUITY
For the six-month period ended 31 August 2004
Share Share Distributable Total
capital premium reserves
R`000 R`000 R`000 R`000
Balance at 1 March 2003 940 38,676 (6,048) 33,568
Net profit for the year 588 588
Reduction of share capital (156) (3,740) - (3,896)
Acquisition of Treasury shares (78) (1,882) - (1,960)
Balance at 29 February 2004 706 33,054 (5,460) 28,300
Profit for the period 1,261 1,261
Balance at 31 August 2004 706 33,054 (4,199) 29,561
COMMENTS
Operating Results
The directors are pleased to announce the results for the first half of the year
ended 31 August 2004.
Accounting Policies
These consolidated interim financial statements were drawn up in compliance with
South African Statements of Generally Accepted Accounting Practice and the
company has complied with the requirements of the Companies Act, 1973 (Act 61 of
1973), as amended.
The accounting policies as set out in the 2004 annual report have been
consistently applied in producing these results.
CHAIRMAN COMMENTS
This half year results perhaps reflect our best financial performance in many
years. The reason is that our results must be considered in light of the
closure of the Tyger Valley Emporium at the end of May 2004. Not only was this
the last of our loss making operations but our losses were accelerated for the
first quarter of the year as our tenants and customers knowing we were closing
abandoned us early. It also means that our 14,3% increase in turnover is
calculated without any turnover generated at Tygervalley in the second quarter.
The most pleasing of our accomplishments has been the 72.3% growth in headline
earnings per share which summarises all the elements of our activities
undertaken since last year which are finally producing the desired results. We
have seen turnover increases in beverages, IFS (International Fashion Sale) and
markets. While turnover for market stand sales is largely static, public
attendance has increased.
The Kids World facility has been a winner and the IFS launched in Cape Town
attached to the Cape Town Fashion Week was similarly successful.
Stringent cost control measures were introduced in the form of a financial diet
in July and it will be extended until the end of the financial year and the new
budget period becomes active in March 2005.
Prospects
Having withdrawn from our option to acquire land in Fourways, we secured a lease
over land on William Nichol opposite Montecasino in the Garden Shop premises to
develop a lock up craft market and Kids World. At the time of going to print we
are 95.4% sold out for stands at this new market with a waiting list of
duplicate products and demand increasing as we approach launch day in November.
We have already exceeded last year`s sales for stands at the February IFS with 5
months to go.
Finally we have prioritized our marketing towards traders as the company`s
number one priority and are actively targeting students, pensioners and the
unemployed. We expect to increase our trader base by at least 10% by year end
as a result of this campaign.
Conclusion
Although our financially reported results show improvements either over the same
period last year or the year end, there is hardly a single result that we are
truly comfortable with as we feel there is room for improvement.
Executive management is under terrible strain as we proceed into our second half
of the year like never before in our history to do better.
And finally what other company do you know of that makes its money by targeting
the unemployed and disenfranchised with employment opportunities - I don`t know
of one!
We are the only company I know of whose profit is a reflection of social
responsibility and economic empowerment - we are the coolest company!!!
On behalf of the board of directors
Marc Israelsohn
Chief executive officer
7 October 2004
