|
Heritage Collection Holdings Limited - Audited Financial Results For The Year
Ended 31 December 2003
HERITAGE COLLECTION HOLDINGS LIMITED
INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA
REGISTRATION NUMBER 1998/07269/06
ISIN : 000023594
SHARE CODE: HCL
AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2003
GROUP INCOME STATEMENT Audited Audited
31-Dec-03 31-Dec-02
(R"000) (R"000)
Revenue 99,748 110,545
Operating (loss) / profit (7,980) (1,803)
Investment income 811 1,021
(Loss) / Profit on ordinary activities (7,169) (782)
before finance cost
Finance costs (4,558) (4,831)
Loss before exceptional items (11,727) (5,613)
Profit on sale of building - 5,085
Forex loss (3,774) -
Operating loss before taxation (15,501) (528)
Taxation 3,671 (1,211)
Total loss for the year (11,830) (1,739)
Headline loss per share (cents) (13,3) (7,6)
Loss per share (cents) (13,3) (1,9)
Number of shares in issue (R"000) 88,913 88,913
Reconciliation of Headline Loss
Net loss for year (11,830) (1 739)
Profit on disposal fixed assets (10) (5 085)
Headline loss (11,840) (6 824)
GROUP BALANCE SHEET
Audited Audited
31-Dec-03 31-Dec-02
(R"000) (R"000)
Assets
Non-current assets 17,926 18,901
Current Assets
Inventory 10,350 12,518
Accounts receivable 56,173 65,193
Cash and cash equivalents 3,984 6,873
70,507 84,584
Total assets 88,433 103,485
Capital employed
Shareholders" interest 26,049 39,000
Non-current liabilities
Long-term liabilities 6,694 8,887
Provision for post-retirement medical 2,829 2,933
aid benefits
9,523 11,820
Current liabilities
Accounts payable 15,072 17,995
Deferred income 17,169 12,883
Bank liabilities 20,620 21,746
Taxation - 41
52,861 52,665
Total equity and liabilities 88,433 103,485
Net asset value per share (cents) 29,3 43,9
GROUP CASH FLOW STATEMENT
Audited Audited
31-Dec-03 31-Dec-02
(R"000) (R"000)
Cash flows from operating activities (151) 431
Cash generated from operations 2,534 3,956
Investment income 811 1,021
Finance costs (4,558) (4,831)
Taxation received 1,062 285
Cash flows from investing activities 556 7,095
Cash flows from financing activities (2,168) (1,229)
(Decrease) / increase in cash & cash (1,763) 6 297
equivalents
Cash & cash equivalents at beginning of (14,873) (21 170)
year
Cash & cash equivalents at end of year (16,636) (14 873)
STATEMENT OF CHANGES IN EQUITY
Audited Audited
31-Dec-03 31-Dec-02
(R"000) (R"000)
Balance at beginning of year 39,000 42,949
Net loss for the year (11,830) (1 739)
Realisation of deferred tax on (1,121) (2 210)
intangibles
Balance at end of year 26,049 39 000
SEGMENTAL ANALYSIS 2003 2002
South Africa Other South Africa Oth
African Afr
Countries Cou
(R"000) (R"000) (R"000) (R"
Revenue 89,691 10,057 98 709 11
Operating (loss) / profit (8,445) (3,385) (3 068) 1,3
Assets employed 84,537 3,896 91 613 11
DIRECTORS" COMMENTS
The results for the year reflect the final stages of the refocussing and
restructuring of the group. The revenue of the company (which is down by 10,8%
compared to the previous year) is largely due to a flat first six months
trading.
The second half of the year has shown considerable improvement and we anticipate
such
improvements continuing into 2004.
The group has done a considerable amount of work over the past three years to
streamline the business so as to ensure it is ready to meet new challenges. The
benefits of these changes are now starting to materialise.
The process of consolidation of overheads has continued and was largely
completed with a number of major initiatives being taken at the end of the year
under review. The major benefit of these initiatives will only be felt during
the latter half of the 2004 year. Most notable are large savings that will be
made as a result of the relocation of warehousing and office
accommodation. A substantial write-down of the exposure to the Zimbabwean
currency was taken during the year and is reflected under the exceptional items.
The company continues to focus on cash flow with a return to a positive position
in the second six months of the reporting period. The resources of the business
continue to be carefully managed with debt collection receiving high priority,
resulting in an improvement in the quality of the current debtors" book.
PROSPECTS
The positive initiatives taken in marketing and product development and the
continued cost reductions should return the group to profitability in the
future.
The non-current assets do not include any intangible value attributed to the
cost of acquiring the licence of the Reader"s Digest trademark in South Africa
or the value of the mailing list. Reader"s Digest Incorporated continues to
provide up-to-date material at competitive prices in the form of best-selling
books and musical titles which enhance the business prospects.
In order to reduce the risks associated with the total reliance on Reader"s
Digest, the group is in the process of building its own brand of products in
South Africa. As a result of this strategic initiative, a publishing programme
is underway and the results of that programme will also be felt during the
latter half of 2004 and 2005.
ACCOUNTING POLICIES
The audited results of the group for the year ended 31 December 2003 have been
prepared on a basis consistent with the prior year. The principal accounting
policies applied in the preparation of these financial statements conform with
the South African Statements of Generally Accepted Accounting Practice.
The financial results have been audited by BDO Spencer Steward (Cape Town) Inc.
and their unqualified audit opinion is available for inspection at the company"s
registered office.
AGM
Notice is hereby given that the annual general meeting of the company will be
held at 10 Mill Street, Newlands, Cape Town, on Friday 30 April 2004 at 09h00 to
transact the business as stated
in the notice of the annual general meeting included in the Annual Report.
B L LLOYD J A BESTER
Managing Director Financial Director
30-Mar-04
Registered address: 10 Mill Street,
Newlands, 7708
Transfer Secretaries: Computershare
Limited
70 Marshall Street, Johannesburg, 2001
Website: www.readersdigest.co.za
Date: 30/03/2004 12:38:36 PM Produced by the JSE SENS Department
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
