| Tue 31 May 2005, 16:51 | | Results For The Twelve Months Ended 28 February 05 |
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All Joy - Audited Results For The Twelve Months Ended 28 February 2005
All Joy Foods Limited
(`All Joy` or `the Company`)(Incorporated in the Republic of South Africa)
(Registration Number: 1989/000100/06)
(JSE Code: ALJ & ISIN Code: ZAE000017240)
Warning: Investors are warned that investing in companies listed on ALTx isspeculative in nature and the JSE does not guarantee the viability or success of
the Company. In accordance with ALTx`s Listing Requirements, All Joy is
required to appoint a Designated Advisor whose responsibility it will be to
guide and assist the Company in complying with and discharging itsresponsibilities under the Listing Requirements. If All Joy fails to retain a
Designated Advisor, it faces possible suspension and the subsequent termination
of its listing without the prospect of an appropriate offer being made to
shareholders.Audited Results For The Twelve Months Ended 28 February 2005
Audited Audited
INCOME STATEMENTS 28 Feb 2005 28 Feb
2004 R`000 R`000
Gross Revenue 48,776 50,851
Cost of Sales 22,620 22,379
Gross Profit 26,156 28,472Manufacturing costs 6,814 8,709
Supply chain costs 10,539 11,336
Profit after manufacturing 8,803 8,427
costsSundry income 689 -
Marketing costs 291 605
Operating expenses 4,820 3,699
Profit after overheads 4,381 4,123Finance costs (1,404) (1,048)
Profit before taxation 2,977 3,075
Taxation 783 926
Profit after taxation 2,194 2,149Shares in issue (000`s)
- Weighted average 34,415 33,000
- At year end 41,973 33,000
Earnings per ordinary share 6.4 6.5(cents)
Headline earnings per share 6.3 7.0
(cents)
Reconciliation of headlineearnings 2,194 2,149
Net profit attributable to
shareholders
Add back amortisation of (34) 162intangible assets
2,160 2,311
Audited Audited
28 Feb 28 Feb 2005 2004
BALANCE SHEET R`000 R`000
ASSETS
Non-Current Assets 7,507 6,700Fixed Assets 6,842 6,001
Intangible Assets 665 699
Current Assets 23,397 18,348
Inventories 10,030 9,699Trade and other receivables 11,010 8,193
Cash and Cash Equivalents 2,357 456
Total Assets 30,904 25,048
EQUITY AND LIABILITIESCapital and Reserves 15,255 8,388
Share Capital 420 330
Share Premium 6,543 1,960
Distributable Reserves 8,292 6,098Non Current Liabilities
Interest Bearing Debt 1,192 1,380
Current Liabilities 14,457 15,280
Trade and Other Payables 5,772 5,983Current Portion of Interest 448 539
Bearing Debt
Taxation 1,052 1,495
Bank Overdrafts 7,185 7,263Total Equity and Liabilities 30,904 25,048
Net asset value (cents) 36.3 25.4
Tangible net asset value (cents) 34.8 23.3
Audited Audited 28 Feb 28 Feb
CASH FLOW STATEMENTS 2005 2004
R`000 R`000
Cash flows from operatingactivities 2,122 1,220
Cash generated from operating
activities
Interest paid (1,404) (1,048)Taxation paid (1,226) (703)
Net Cash from Operating Activities (508) (531)
Cash flows from investing
activities (1,952) (3,425)Fixed assets acquired
Disposal of fixed assets 115 -
Intangible assets acquired (161) (332)
Net Cash used in Investing (1,998) (3,757)Activities
Cash flows from financing
activities 4,673 -
Capital raisedBorrowing raised/(repaid) (188) 1,016
Net Cash Generated Financing 4,485 1,016
Activities
Increase/(decrease) in cash and 1,979 (3,272)cash equivalents
Cash and cash equivalents at (6,807) (3,535)
beginning of year
Cash and cash equivalents at end (4,828) (6,807)of year
STATEMENT OF CHANGES IN EQUITY
For the twelve months ended 28 February 2005
Share Share Distribut Total Capital Premium able
Reserves
R`000 R`000 R`000 R`000
Balance at 29 Feb 330 1,960 3,949 6,2392003
Net profit for the - - 2,640 2,640
year
Correction of - - (491) (491)fundamental error
Balance at 28 Feb 330 1,960 6,098 8,879
2004
Issue of share 90 4,583 - 4,673capital
Net profit for the - - 2,194 2,194
year
Balance at 28 Feb 420 6,543 8,292 15,7462005
COMMENTS
All Joy announces its sixth set of financial results as a public company for the
twelve-month period ending 28 February 2005.Sales revenue for the year under review was down by 4% (R48,8 million) compared
to the previous twelve months and profit increased by 2% (R2,2 million). The
decrease in revenue can be attributed to, but not limited to, the fact that our
competitors did not increase prices and a new global brand was launched into ourmarket. We absorbed the increases, on certain costs, for the period under
review. These elements placed a significant amount of pressure on our gross
profit. Furthermore, management took the strategic decision to withdraw the
company`s export initiative as a result of the strong rand.We are pleased with the position All Joy holds in the South African food-
manufacturing sector. We value competition as it encourages improvement,
enhancement and most importantly consumption. With this in mind, we are
confident that we will continue to grow our market position in the coming year,the production of our new improved brand commenced in Feb 2005.
BEE
We are pleased to report that All Joy strengthened further its broad economic
empowerment position during the year under review through its NationalEmpowerment Fund (`NEF`) transaction, to 45%. All Joy further reduced its
borrowings by issuing new shares for cash to the NEF which also resulted in the
Company increasing its net asset value by 44%, compared to the previous twelve-
month period.REVIEW OF OPERATIONS
During the past financial year, All Joy realized its manufacturing targets on
accreditation. Good Manufacturing Practice (GMP) is in place and the factory has
achieved a 94% rating at the last audit conducted by internationally- recognisedinspectors.
The direct benefits of quality and traceability investments and initiatives have
been that All Joy`s products were excluded from the list of products presented
by the Department of Health that contained the banned substance Sudan Red 1, 2.3and 4. Congratulations to the technical team for being vigilant at all times and
maintaining a superior level of quality.
PROSPECTS
The company remains confident and excited about the year ahead. Some of thehighlights and prospects that we have to look forward to include:
* The re-launch of our leading brand - All Joy`s tomato sauce, Big Red Taste.
This new and improved formulation excludes artificial colour and flavour
and is now being packed in a lightweight plastic bottle, which is easy to handle, and now has a built-in, sealed-for-your protection, screw-on
closure/cap. Production on this product commenced in February 2005 and the
launch of the product will be supported by a scheduled below-the-line
marketing programme in the second quarter of the coming year. Production is also scheduled for two new products.
* New production contracts, which came about as a result from investments
made in previous years, have started to come to fruition. However, these
will only come into full effect and will only start to produce positive results for the Company in the year ahead.
* The launch of the newly acquired Mrs Govender`s brand has seen the start of
a pilot-scale plant and production is scheduled for May 2005.
* The planned name change on AltX that will reflect our aim to be a quality manufacture of recognized leading brands.
* To provide a manufacturing solution to the retail chain stores, food
services and industrial trade customers to assist in improving their
overall procurement score-carding, quality and competitiveness.ACQUISITIONS
All Joy has an appetite for quality acquisitions that will extend our
manufacturing capabilities in the FMCG sector. With this in mind, specific
companies have been identified as worthwhile investments and the acquisitionprocess has been commenced.
DIVIDEND
The directors have determined that no dividend will be declared for the year
under review. The funds will be put back into the business to contribute towardsthe funds required for its targeted acquisitions.
APPRECIATION
I would like to thank my fellow directors and advisors for their ongoing support
and guidance. I would also like to welcome Mr Rafique Bagus - a good friend toAll Joy for many years - who has recently been appointed as a director to the
board.
To our trade customers, suppliers, merchandise teams, consultants, bankers,
shareholders and productive staff: a sincere thank you for your commitment andsupport.
To all our loyal customers, we appreciate your continual support and custom. We
continue to work on improving our product offerings to ensure that we deliver on
our original credo: `value makes friends and quality keeps them`.SOUTH AFRICAN STATEMENTS OF GAAP AND COMPANIES ACT REQUIREMENTS
The annual audited financial statements were prepared in compliance with South
African Statements of Generally Accepted Accounting Practice and the Companies
Act. The accounting policies for the year are consistent with those applied forthe year 28 February 2004.
AUDIT OPINION
The annual financial statements have been audited by Horwarth, Leveton & Boner.
The auditors` unqualified audit report is available for inspection at thecompany`s registered office.
On behalf of the Board of Directors
Chief Executive Officer
M.T. PatherSecretary
J.W. Walters
Designated Advisor
Exchange SponsorsTransfer Secretaries
Computershare Investor Services 2004 (Pty) Ltd
31 May 2005Date: 31/05/2005 04:40:35 PM Produced by the JSE SENS Department
