| Wed 30 Nov 2005, 16:42 | | All Joy Foods Limited - Interim Results for the pe |
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All Joy Foods Limited - Interim Results for the period ended 31 August 2005
All Joy Foods Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 1989/000100/06)
Share Code: ALJ
ISIN Code: ZAE000017240
Interim Results for the period ended 31 August 2005
BALANCE SHEETS Unaudited Restated As
6 months 6 months previously
to to 31 Aug reported
31 Aug 2004 Unaudited
2005 R"000 6 months to
R"000 31 Aug 2004
R"000
ASSETS
Non current assets 7 360 7 348 7 348
Current assets 27 269 18 074 21 672
Total assets 34 629 25 422 29 020
EQUITY AND LIABILITIES
Shareholders Funds 11 157 6 114 10 350
Non-Current liabilities 1 661 1 165 1 165
Current liabilities 21 811 18 143 17 505
Total equity and liabilities 34 629 25 422 29 020
Shares in issue at period end 41 973 33 640 33 640
(`000)
Net asset value per share (cents) 30,5 21,6 34,2
Unaudited Restated As
INCOME STATEMENTS 6 months 6 months previously
to to reported
31 Aug 31 Aug Unaudited
2005 2004 6 months to
R"000 R"000 31 Aug 2004
R"000
Gross Revenue 22 933 21 961 22 856
Cost of sales 11 514 11 784 9336
Operating expenses 13 723 12 350 11 192
Operating profit (2 305) (1 225) 2 328
Finance charges (706) (594) (594)
Profit before taxation (3 091) (1 819) 1 734
Taxation - - (520)
Net profit for the period (3 091) (1 819) 1 211
Headline earnings (2 993) (1 717) 1 316
Basic and diluted earnings per (7,4) (5,4) 3,6
share (cents)
Weighted average number of shares 41 973 33 640 33 640
(`000)
Headline earnings per share (7,1) (5,1) 3,9
(cents)
CASH FLOW STATEMENTS Unaudited Unaudited
31 Aug 31 Aug
2005 2004
R"000 R"000
Cash flows from operating activities (1 058) (1 067)
Cash flows from investing activities (384) (1 208)
Cash flows from financing activities - 41
Net movement in cash and cash (1 442) (2 234)
equivalents
Cash and cash equivalents at (4 828) (6 807)
beginning of year
Cash and cash equivalents at end of (6 270) (9 041)
year
STATEMENT OF CHANGES IN EQUITY
Share Share Distributable Total
Capital Premium reserve
R"000 R"000 R"000 R"000
Balance as at 1 March 330 1 960 5 387 7 677
2004
Net operating profit - - 1 214 1 214
for the period
Correction of - - (295) (295)
fundamental error
Restatement between
half year periods (2 738) (2 738)
Issue of share capital 7 249 - 256
Balance as at 31 August 337 2 209 3 568 6 114
2004
Net operating profit - - 3 717 3 717
for the period
Issue of share capital 83 4 917 - 5 000
Share allotment cost - (583) - (583)
Balance as at 28 420 6 543 7 285 14 248
February 2005
Write-off listing - -
expenses
Net operating loss for - - (3 091) (3 091)
the period
Balance as at 31 August 420 6 543 4 194 11 157
2005
COMMENTS
The Board of Directors hereby present the interim financial results of the Group
for the six months ended 31 August 2005.
NATURE OF THE BUSINESS
All Joy Foods is a premium food processor, producing and distributing quality
products that are packaged to promote convenience.
RESTATEMENT OF 31 AUGUST 2004 RESULTS
The comparative interim results for the six months ended 31 August 2004 has been
restated to correct certain adjustments made at the year end at 28 February 2005
and which relates to the first six month period.
ACCOUNTING ERROR
Following the Accounting error announced on SENS dated 14 October 2005 the board
of directors appointed a forensic auditor to investigate the matter and report
on it. The forensic auditors report indicated that the accounting errors was not
an intentional misstatement and recommended that the accounting error should be
dealt with as a prior year fundamental error and it is not necessary to withdraw
and re-issue the annual financial statements for the year to 28 February 2005.
The Board of directors is satisfied that they have taken the necessary steps to
ensure adequate accounting systems are in place. Mr JW Walters, the company
secretary, has been appointed as financial director, with effect from 1 December
2005.
UPDATE ON RETAILER BRANDS TRANSACTION
It was announced on SENS on 30 November 2005 that the vendors of Retailer Brands
(Pty) Limited ("Retailer Brands") have informed All Joy that they do not want to
proceed with the transaction by which All Joy would acquire Retailer Brands.
Based on legal advice from Senior Counsel the board of directors have advised
the Retailer Brands vendors that they intend proceeding with the transaction and
will take all the necessary legal actions required. Shareholders will be
informed of any new developments regarding the Retailer Brands transaction and
are advised to exercise caution when dealing in the company"s securities until a
further announcement is made.
BUSINESS REVIEW AND PROSPECTS
All Joy incurred a loss of R 3,091 million for the six months to August 2005.
This is an R1.374m additional loss when compared to the previous six months,
this can be attributed to certain extraordinary costs that will not be repeated
in the next six months. These extraordinary costs include but is not limited to,
a pilot production line for Mrs Govender"s product, auditors fees from the prior
year, marketing display stands for our branded products for the competitive
summer season and penalties for late payments to SARS. In addition substantial
management time and resources have been invested in the integration of the
Retailer Brands transaction.
The business is aggressively reducing manufacturing overheads for our low
production months to be in line with our sales demand. These savings will
directly result in increased profits going forward. We are also focused on
expanding into new sales channels, namely the food service catering packs, and
exports into Botswana, Namibia, Mozambique, Swaziland and Angola.
The business has well-established brands, namely All Joy, Big Red Taste, Veri
Peri, Before You Braai, Gourmet, Figure and Pasta/Spaghetti sauces that are
produced at the highest quality standards.
We are a leading BEE manufacturer in South Africa. We are confident that we will
continue to grow and realise our vision of being a diverse, high quality
manufacturer of leading brands promoting convenience to the ever-growing
emerging market in South Africa.
FINANCIAL REVIEW
* The company has realised a loss of R3,1 million for the six months under
review. This mainly attributable to the seasonally nature of the products
supplied.
* In the past the company provided for the seasonal effect. This resulted in an
incorrect presentation of the true quarterly results.
* Trade receivables increased as a result of timing in collections, with
receipts occurring subsequent to period end.
* Cash and cash equivalents increased from that of the previous period under
review due to R5.3 million being raised on a share issue to the National
Empowerment Fund.
* Management has continued to contain operating expenses within expectations.
TRANSITIONAL ADJUSTMENTS IN TERMS OF IFRS
Comparative figures have been restated to reflect the transition from South
African Statements of Generally Accepted Accounting Practice to International
Financial Reporting Standards. The adjustments represents:
* The reclassification of financial instruments in accordance with IAS 32:
Financial instruments: Disclosure and Presentation and IAS39: Financial
instruments: Recognition and Measurement. These adjustments had no effect on
the income statement and the effect on the balance sheet has been disclosed
in the transitional reconciliations presented below.
* The adoption of the new interpretation of IAS17 (AC 105) - Operating leases,
which include fixed rental increases. The effect of the new interpretation of
operating leases was found to be immaterial.
Effect of
RESTATED BALANCE SHEET AS AT 28 SA GAAP transition IFRS
FEBRUARY 2005 R"000 R"000 R"000
ASSETS
Non current assets 7 507 - 7 507
Property, plant and equipment 6 842 - 6 842
Intangible Assets 665 - 665
-
Current assets 2 808 - 2 808
Inventory 10 030 - 10 030
Trade and other receivables 9 377 - 9 377
Cash and cash equivalents 2 357 - 2 357
Total assets 29 271 - 29 271
EQUITY AND LIABILITIES
Shareholders Funds 14 248 - 14 248
Share capital and premium 420 - 420
Distributable reserves 6 543 - 6 543
Non-distributable reserves 7 285 - 7 285
Non current liabilities 1 192 - 1 192
Interest-bearing debt 1 192 1 192
Current liabilities 14 457 - 14 457
Trade and other payables 5 771 - 5 771
Current portion of interest- 448 448
bearing debt
Taxation 427 - 427
Bank overdrafts 7 185 - 7 185
Total equity and liabilities 29 271 - 29 271
INTERNATIONAL FINANCIAL REPORTING STANDARDS AND COMPANIES ACT REQUIREMENTS
The reviewed interim financial statements were prepared in compliance with
International Financial Reporting Standards (IFRS) for the first time, as well
as the Companies Act. The disclosures required by IFRS1 concerning the
transition from South African Statements of Generally Accepted Accounting
Practice to IFRS are as follows:
RECONCILIATION OF EQUITY AT 1 MARCH 2004 (DATE OF TRANSITION TO IFRS)
No adjustment was required at 1 March 2004.
CORPORATE GOVERNANCE
The group fully subscribes to the principles of, and implements where possible,
the recommendations of the King II Code on Corporate Governance.
DIVIDENDS
Dividends will not be paid in respect of the current financial year. Cash
generated will be retained and utilised to grow and expand the business of the
group.
For and on behalf of the Board
MT Pather
Chief Executive Officer
30 November 2005
Registered office:
103 Booysens Reserve Road, Crown Mines, 2001, PO Box 2152, Southdale, 2135
Transfer secretaries:
Computershare Investor Services 2004 (Pty) Limited, Ground Floor, 70 Marshall
Street, Johannesburg
Directors:
Dr. AP Ruiters* (Chairman), MT Pather (CEO), MR Bagus*, S Fanaroff*, WA Parsons*
Company secretary JW Walters
*Non-executive
Date: 30/11/2005 04:42:14 PM Produced by the JSE SENS Department
