| Wed 21 Sep 2005, 8:06 | | Alex White Holdings Limited - Audited results for |
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Alex White Holdings Limited - Audited results for the year ended 30 June 2005
Alex White Holdings Limited
INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA
(REGISTRATION NUMBER 1949/035016/06)
SHARE CODE: ALX & ISIN: ZAE00000386
(`Alex White` or `the Group`)
AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2005
CONSOLIDATED INCOME STATEMENT
Audited Audited
year ended year ended
30 June 2005 30 June
2004
(R`000) (R`000)
REVENUE 125 754 131 656
OPERATING PROFIT BEFORE INTEREST AND 9 677 11 676
DEPRECIATION
Interest (4 589) (2 017)
Depreciation (6 826) (5 438)
PROFIT/(LOSS) BEFORE UNUSUAL ITEM (1 738) 4 221
Unusual item - 1 018
PROFIT/(LOSS) BEFORE TAXATION (1 738) 5 239
Taxation 724 (1 468)
PROFIT/(LOSS)ATTRIBUTABLE TO ORDINARY (1 014) 3 771
SHAREHOLDERS
Shares in issue (`000) 18 125 18 125
Basic(loss)/earnings per share (cents) (5,6) 20,8
Headline (loss)/earnings per share (10,8) 6,9
(cents)
The following adjustment to earnings
was taken into account in the
calculation of headline earnings
Earnings/(Loss) - used for basic (1 014) 3 771
earnings /(loss) per share
Profit on sale of subsidiary - (1 018)
Profit on sale of fixed assets (after (945) (1 510)
taxation)
Headline earnings (1 959) 1 243
STATEMENT OF CHANGES IN EQUITY
Share capital
Ordinary shares
At beginning of year 1 812 1 812
At end of year 1 812 1 812
Share premium
At beginning of year 5 878 5 878
At end of year 5 878 5 878
Reserves
Non-distributable reserve
At beginning of year 7 890 7 890
At end of year 7 890 7 890
Distributable reserve
At beginning of year 7 049 6 031
Transfer from retained earnings - 1 018
At end of year 7 049 7 049
Retained earnings
Restated At beginning of year 16 775 14 747
balance
Net profit for the period (1 014) 3 771
Dividend paid - (725)
Transfer to distributable reserve - (1 018)
At end of period 15 761 16 775
TOTAL EQUITY 38 390 39 404
ABRIDGED CONSOLIDATED BALANCE SHEET
30 June 2005 30 June
2004
(R`000) (R`000)
ASSETS
Fixed assets 49 849 50 159
Intellectual property 178 519
Goodwill 115 154
Investments 12 12
Current assets 55 691 53 349
TOTAL ASSETS 104 193
105 845
EQUITY AND LIABILITIES
Capital and reserves 38 390 39 404
Non-current liabilities
Interest bearing borrowings 23 561 26 640
Deferred taxation 1 203 2 091
Current liabilities 42 691 36 058
TOTAL EQUITY AND LIABILITIES 105 845 104 193
Net asset value per share (cents) 212 217
Net tangible asset value per share 210 214
(cents)
Audited Audited
year ended year ended
30 June 2005 30 June
2004
(R`000) (R`000)
ABRIDGED CONSOLIDATED CASH FLOW
STATEMENTS
Cash inflow/(outflow) from operating 6 475 (2 574)
activities
Cash inflow/(outflow) from investing (4 805) (24 201)
activities
Cash inflow/(outflow) from financing (2 944) 23 628
activities
Decrease in cash and cash equivalents (1 274) (3 147)
Cash and cash equivalents at beginning
of year (5 102) (1 955)
Cash and cash equivalents at end
of year (6 376) (5 102)
BASIS OF PREPARATION
1. The financial statements of the group have been prepared in accordance
with South African Statements of Generally Accepted Accounting Practice.
The accounting policies used are consistent with those of the prior year.
2. The group`s auditors, Horwath Leveton Boner, have audited the financial
information for the year ended 30 June 2005. Their unqualified report is
available for inspection at Alex White`s registered office.
COMMENTS
The group has traditionally supplied packaging to manufacturers of basic food
stuff and healthcare products in the fast moving consumer goods (`FMCG`)
category. Areas of speciality include packaging for food, soaps, detergents,
snack foods and confectionery, horticultural packaging, materials for liquid
packaging and pharmaceutical products. Whilst these products are often stable
purchase lines for income earning consumers, they are also initial purchases
of newly employed consumers. As such, their positive growth is affected more
by increased employment and income generation rather than increased wealth
creation.
In the past few years, the impressive results shown by retailers have largely
been due to buoyant demand for white goods, semi-durables and clothing. During
this time our markets as described above have remained depressed with
concomitant pressures on volumes and margins. Recent research and media
reports lead us to believe however, that market demand for our products is
starting to show positive growth. This trend is supported by State grants to
the poor, increased disposable income from tax cuts and low interest rates,
and is evidenced by the fact that a further 1,3 million people have moved up
to the LSM 4 to 6 economic group.
The benefits that will flow to other packaging suppliers and ourselves will be
tempered by the strength of the South African Rand and the influx of cheap
imported goods. In the absence of a commitment by the major chain stores to
support a `Buy South Africa` campaign, the level of growth the packaging
convertors will enjoy will depend on our, and our customers` ability to
continually re-engineer processes and achieve cost savings.
The past year saw the culmination of a number of strategies concerning both
our product mix, and our technological capacity.
During 2003 and 2004 we took advantage of the low interest rate regime, and
the strong Rand to make important investments in equipment, most of which were
imported. The 8 colour Fischer and Krecke 16S will take advantage of the
noticeable move to shorter print lengths caused largely by variant
proliferation of many major FMCG brands. We have substantially reduced our
make-ready times and start-up costs, and are also achieving excellent print
results with less ink colours. Evidence of this is the numerous print awards
we received both locally and internationally this year.
Our upgraded extrusion coater/ laminator has enhanced our ability to offer
sophisticated packaging constructions with improved barrier properties, thus
offering increased shelf life to many products.
The litho printing division replaced a printing press with a 6 colour
Heidelberg press including a coating unit. Their pre-press department invested
in a new plate baking line and the post-press finishing capacity was greatly
increased with a Busch counter pressure punching machine. All equipment is
performing exceptionally well, but some inevitable disruption was caused by
these installations. The current focus of management is to achieve sufficient
new work to fill this new capacity.
With regard to our product mix, we continue to move into higher growth
markets. The flexible printing company achieved a rating of `Excellent` by AIB
International in respect of food safety programmes and this allowed us to
secure an important contract with a leading snack food manufacturer. After
considerable testing over an extended period, we also made inroads into mouth
care packaging during the year.
The litho division recorded similar product growth. It continued to increase
it`s share of scratch card and telecom card printing and the new press and
punch capacity was instrumental in it developing a unique card process for a
local cellphone operator.
Taking into account the trading conditions described above and the fact that
the forms division was sold during the 2004 financial year, turnover decreased
by 4,5%. However in terms of continuing operations, an increase of 6% was
achieved in the 2005 year. The loss per share for the year amounted to 5,6
cents compared to a profit per share in the 2004 year of 20,8 cents. Net
tangible asset value per share fell to R2,10 (2004: R2,14). The effective
gearing improved marginally to 103,6% (2004: 105,2%).
The group is well positioned in terms of technical expertise and capacity and
will be able to take advantage of any upturn in the FMCG sector. Work
continues on all fronts to extend our product range and broaden our customer
base as well as continuing to identify import replacement options.
In order to consolidate the group`s financial position, the board has decided
not to declare a dividend at this time.
ANNUAL GENERAL MEETING
The Group`s annoual financial statements will be posted to shareholders today.
The annual general meeting of the members of Alex White Holdings Limited will
be held on Monday, 24 October 2005 at 11h00 in the boardroom, 22 Yaron Avenue,
Lea Glen, Roodepoort.
On behalf of the Board
N D Minnie (Chairman)
T P Kane (Executive Chairman)
Johannesburg
21 September 2005
REGISTERED OFFICE
22 Yaron Avenue, Lea Glen, Roodepoort, 1709
(P O Box 825, Florida, 1710)
Directors :
N D Minnie (Non-executive Chairman), T P Kane (Managing Director), H V
Brunner*, M R Thompson. *(German)
TRANSFER SECRETARIES
Computershare Investor Services 2004 (Proprietary) Limited
Date: 21/09/2005 08:00:21 AM
