| Fri 29 Sep 2006, 10:06 | | All Joy Foods Limited - Audited Results for the pe |
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ALJ
ALJ
All Joy Foods Limited - Audited Results for the period ended 30 June 2006
All Joy Foods Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 1989/000100/06)
Share Code: ALJ
ISIN Code: ZAE000017240
"All Joy" or "the Group"
Audited Results for the period ended 30 June 2006
BALANCE SHEET Audited Restated
16 months to 12 months to
30 June 2006 28 Feb 2005
R"000 R"000
ASSETS
Non current assets 12 638 7 631
Current assets 23 510 22 438
TOTAL ASSETS 36 148 30 069
EQUITY AND LIABILITIES
Shareholders Funds 16 583 14 373
Non-current liabilities 769 1 190
Current liabilities 18 796 14 506
Total equity and liabilities 36 148 30 069
Shares in issue at period end (`000) 41 973 41 973
Net asset value per share (cents) 39.5 34.2
Net asset value per share excl 37.6 32.4
intangible assets (cents)
INCOME STATEMENT Audited Restated
16 months to 12 months to
30 June 2006 28 Feb 2005
R"000 R"000
Gross Revenue 55 768 42 734
Cost of Sales 30 686 22 747
Gross Profit 25 082 19 986
Other Income 884 783
Operating expenses 27 069 16 181
Operating profit/(loss) (1 103) 4 589
Investment income 109 -
Finance charges 1 434 1 487
Profit/(loss) before taxation (2 428) 3 102
Taxation (468) 783
Profit/(loss) attributable to (1 960) 2 319
shareholders
Reconciliation headline earnings
Profit/(loss) for the period (1 960) 2 319
Adjusted for
- Other income (131)
- Profit on disposal of property, (342)
plant and equipment
Headline earnings (loss) for period (2 302) 2 188
Basic and diluted earnings per share (4.7) 5.5
(cents)
Weighted average number of shares 41 973 41 973
(`000)
Headline earnings per share (cents) (5.5) 5.2
CASH FLOW STATEMENTS Audited Restated
16 months to 12 months to
30 June 2006 28 Feb 2005
R"000 R"000
Cash flows from operating activities (3 046) (501)
Cash flows from investing activities (895) (2 005)
Cash flows from financing activities (394) 4 485
Net movement in cash and cash (4 335) 1 979
equivalents (4 828) (6 807)
Cash and cash equivalents at beginning
of year
Cash and cash equivalents at end of (9 163) (4 828)
year
STATEMENT OF Share Share Revaluat Retained Total
CHANGES IN Capital Premium ion Income
EQUITY R"000 R"000 Reserve R"000 R"000
R"000
Balance as at 1 330 1 960 6 098 8 388
March 2004
Net operating 2 194 2 194
profit for the
period 90 5 166 5 256
Issue of share (583) (583)
capital
Share allotment
cost
Balance as at 1 420 6 543 8 292 15 255
March 2005 as
previously
reported
Correction of (712) (712)
2004 Debtors
error (295) (295)
Correction of 125 125
2005 Debtors
error
Revaluation of
intangible
assets
Balance as at 1 420 6 543 7 410 14 373
March 2005 as
restated 4 170 4 170
Revaluation of
property (1 960) (1 960)
Net operating
profit / (loss)
for the period
Balance as at 30 420 6 543 4 170 5 450 16 583
June 2006
COMMENTS
The board of Directors present the audited financial results of All Joy
Foods Limited for the sixteen months ended 30 June 2006. During the period
under review the group changed its year end from February to June.
INTRODUCTION
The turnaround strategy implemented by the company during the six months to
February 2006 to increase sales revenue and net trading profit, has gained
further momentum. The group has managed to contain its trading loss from
the reported figure at 28 February 2006, and has improved financial
performance for the four months ended 30 June 2006.
All Joy"s strategy remains focused to increase its market share and to
reduce manufacturing and infrastructure overhead costs in order to enhance
competitiveness in the market.
FINANCIAL REVIEW
The Group has incurred a net loss after taxation of R1,96 million for the
sixteen months under review. This net trading figure is a further
improvement on the reported loss of R 2,2 million for the twelve months
ended 28 February 2006 and the loss reported for the six months ended 31
August 2005. We believe that this positive trend in profitability over the
last ten months will continue in the next financial year.
In line with International Financial Reporting Standards (IFRS), revenue is
reported net of trade discounts allowed. The revenue, before trade
discounts has remained constant compared with the twelve months ended 28
February 2005. We are, however, confident that our market position and
revenue will continue to grow in the coming year.
Gross profit percentage has shown a slight decrease from 46,8 percent to
45,0 percent in the current financial period. We will, however, continue
our endeavours to reduce manufacturing cost and believe that these efforts
will come into fruition in the months ahead.
The increase operating expenditure is largely attributed to investments in
human resources, IT systems and in maintaining our production plant and
distribution facilities. We believe that this expenditure is critical in
our strategy to grow our position in the market and to ensure that our
plant and equipment can deliver on increased demand for our product. The
depreciation charge on plant and equipment is lower than in the previous
financial year in line with our estimates on remaining productive useful
life and residual values of plant and equipment, in compliance with current
financial reporting standards. The increase in operating expenditure has
also been influenced to a lesser extent by the failed merger with Retailer
Brands during the first six months of the financial period. The market
increase in financial performance of the group from the first six months to
the last ten months can be seen from the summary below: increases in
revenue, gross profit and decrease in operating expenditure in the last
four months are clear indicators of our commitment to the group"s financial
success.
30 Jun 28 Feb 31 Aug Total
2006 2006 2006 16 months
4 months 6 months 6 months R"000
R"000 R"000 R"000
Revenue after 14 375 21 806 19 587 55 768
discounts
Gross Profit after 7 378 10 351 8 073 25 082
discounts
Operating 5 812 10 880 10 377 27 069
expenditure
Net profit/(loss) 259 872 (3 091) (1 960)
after tax
The increase in net asset value is attributable to the revaluation of the
group"s land and buildings to R5,5 million. The revaluation was done during
June 2006 by a registered valuator and depicted an increase of R4,1 million
on the previous valuation done in September 2001.
PROSPECTS
The group will continue in producing specialised sauces for the food
services sector, wholesale cash and carry and retail supermarket sector.
The business is well positioned producing these ranges of high quality
sauces that suit its market demands. The benefits of producing new
products under various brands will be realised in the year ahead.
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 represent:
The reclassification of financial instruments in accordance with IAS 32:
Financial instruments: Disclosure and Presentation and IAS39: Financial
instruments: Recognition and Measurement.
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.
INTERNATIONAL FINANCIAL REPORTING STANDARDS AND COMPANIES ACT REQUIREMENTS
The final financial statements were prepared in compliance with
International Financial Reporting Standards (IFRS) for the first time, as
well as the Companies Act.
CORPORATE GOVERNANCE
The group fully subscribes to the principles of, and implements where
possible, the recommendations of the King II Code on Corporate Governance.
AUDIT
The above figures were audited by ARC Chartered Accountants (SA) Inc and
their report is available for inspection during office hours at Unit 5, 299
Pendoring Road, Blackheath Ext 6, 2195.
DIVIDENDS
The directors do not recommend the payment of a dividend.
FOR AND ON BEHALF OF THE BOARD
MT Pather (Executive Chairman)
29 September 2006
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
Executive Directors: MT Pather; JW Walters; Non-Executive Directors: S
Fanaroff, WA Parsons
Auditors: ARC Chartered Accountants (SA) Inc (1996/003163/21) (PO Box 252,
Cresta, 2118)
Designated Adviser : Exchange Sponsors (Pty) Ltd, 39 First Road, Hyde Park,
2196 (PO Box 411216, Craighall, 2124)
Warning: The listing of ordinary shares in the company is on ALTx.
Investors are advised of the risks of investing in a company listed on
ALTx. Investors are advised that the JSE does not guarantee the viability
or the success of a company listed on ALTx. In terms of the Listings
Requirements, the company is obliged to appoint and retain a Designated
Adviser, which is required to, inter alia, attend all board meetings held
by the company to ensure that all the Listings Requirements and applicable
regulations are complied with, approve the Financial Director of the
company and guide the company in a competent, professional and impartial
manner. If the company fails to retain a Designated Adviser, it must make
arrangements to appoint a new Designated Adviser within 10 business days,
failing which the company faces suspension of trading of its securities.
If a Designated Adviser is not appointed within 30 days of its suspension,
the company faces the termination of its listing without the prospect of an
appropriate offer.
Date: 29/09/2006 10:06:38 AM Produced by the JSE SENS Department
