| Fri 15 Oct 2004, 17:42 | | RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2004 |
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BURLINGTON - UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2004
BURLINGTON INDUSTRIES LIMITED
AND ITS SUBSIDIARIES
REG NO 1946/021549/06
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
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2004
CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2004
30.6.2004 30.6.2003 31.12.2003
Audited
TURNOVER 6 399 000 8 171 000 13 108 564
Cost of sales 3 080 000 3 752 000 8 105 223
Gross profit 3 319 000 4 419 000 5 003 341
Other operating costs (4 395 000) (3 241 000) (6 679 752)
Operating profit before (1 076 000) 1 178 000 (1 676 411)
finance charges
Finance charges (405 000) (805 000) (1 280 424)
Profit before taxation (1 481 000) 373 000 (2 956 835)
Taxation - - (750)
Net profit for the (1 481 000) 373 000 (2 957 585)
period
Weighted average number 600 000 600 000 600 000
of ordinary shares
Earnings per ordinary (246.8) 62.2 (493.9)
shares (cents)
Headline earnings per (148.2) 65.8 (493.6)
ordinary share (Note 3)
Dividends per ordinary - - -
share (cents)
CONSOLIDATED BALANCE SHEET AT 30 JUNE 2004
30.6.2004 31.12.2003
Audited
ASSETS
Non-current assets 10 190 000 11 670 262
Tangible assets (Note 2) 2 316 000 3 775 770
Investment property 7 138 000 7 138 079
Intangible assets 736 000 756 413
Current assets 16 052 000 16 353 313
26 242 000 28 023 575
EQUITY AND LIABILITIES
Equity and reserves 928 000 2 408 556
Ordinary shareholders interest 773 000 2 253 382
Non-distributable reserves 55 000 55 174
Preference share capital 100 000 100 000
Non current liabilities 23 787 000 18 990 016
Current liabilities 1 527 000 6 625 003
26 242 000 28 023 575
DIRECTORS` REPORT
Turnover for the 6 months has decreased by approximately 21% compared to the
same period last year. This is due to the closure of the knitting division in
the second half of 2003. The sales in our retail division is up on that of the
previous year. Included in the loss of R1 481 000 is an amount of R571 000 being
a loss on the sale of some knitting plant.
THE REVIEW OF THE INDEPENDENT AUDITORS
The financial information set out above has been reviewed, but not audited, by
the group`s auditors Grant Thornton. Their review is available for inspection at
the company`s registered office.
As advised in the 2003 Annual Report we are contemplating the de-listing of the
company.
FOR AND ON BEHALF OF THE BOARD
PERRY KAWITZKY ANTHONY KAWITZKY
Join Chairman Joint Chairman
15 October 2004
CONSOLIDATED CASH FLOW STATEMENT FOR THE 6 MONTHS ENDED 30 JUNE 2004
30.6.2004 30.6.2003 31.12.2003
Audited
R R R
CASHFLOW FROM OPERATING (1 491 000) (823 000) (2 126 210)
ACTIVITIES
CASH FLOWS FROM INVESTING 725 000 (234 000) (642 725)
ACTIVITIES
CASH FLOWS FROM FINANCING 4 797 000 463 000 2 259 703
ACTIVITIES
NET DECREASE IN CASH AND 4 031 000 (594 000) (509 232)
CASH EQUIVALENTS
Cash and cash equivalents
at the beginning
of the period (4 231 000) (3 722 000) (3 721 686)
Cash and cash equivalents
at the end
of the period (200 000) (4 316 000) (4 230 918)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Ordinary Preference Non- Distri-
distribu-
share share table butable Total
capital capital Reserve reserves
Group R R R R R
Balance 300 000 100 000 55 000 1 953 000 2 408 000
at 1
January
2004
Net (1 481 000) (1 481 000)
profit
for the
period
Balance 300 000 100 000 55 000 472 000 927 000
at 30
June
2004
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. 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 Tangible Assets
The group owns two investment 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 tangible
assets, 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
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.
2. TANGIBLE ASSETS 30.06.2004 31.12.2003
Audited
Cost
Plant, vehicles and equipment 5 972 000 7 841 893
Valuation
Investment property 7 138 000 7 138 079
13 110 000 14 979 972
Accumulated depreciation
Plant, vehicles and equipment 3 655 000 4 066 123
Net carrying value
Investment property 7 138 000 7 138 079
Plant, vehicle and equipment 2 316 000 3 775 770
9 454 000 10 913 849
Movement for year
Capital expenditure
- Plant, Vehicles and equipment 3 000 705 945
Disposals
- Plant, Vehicles and equipment (1 874 000) (84 345)
Depreciation (167 000) (388 534)
Accumulated depreciation eliminated on 578 000 61 330
disposal
Currency translation (16)
(1 460 000) 294 380
3. HEADLINE EARNINGS:
The calculation of headline earnings per
share is based on earnings of (R 1 481
000) (2003 : (R2 957 585))
Adjustments to net earnings are detailed
below:
Reconciliation between net earnings and
headline earnings
Net loss per income statement (1 481 000) (2 957 585)
Preference dividend - (6 000)
Loss (profit) on the sale of non trading 571 000 (40 217)
assets
Goodwill amortised 21 000 42 023
Headline earnings
(889 000) (2 961 779)
