| Mon 2 Oct 2006, 11:57 | | John Daniel - Abridged Annual Financial Statements |
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JDH
JDH
John Daniel - Abridged Annual Financial Statements: year ended 30 June 2006
JOHN DANIEL HOLDINGS LIMITED
Incorporated in the Republic of South Africa
- Registration number: 1998/013215/06
JSE Code: JDH & ISIN: ZAE000044343
("the Company" or "JDH" or "the Group")
ABRIDGED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2006
GROUP GROUP
AUDITED AUDITED
2006 2005
R R
ASSETS
Non-current assets
Property, plant and equipment 6 266 389 3 353 194
Goodwill 1 5 606 993
Intangible assets 849 385 -
Investments - 4 500 000
Deferred tax 3 984 418 2 281 664
Loan receivable - 724 467
Total non-current assets 11 100 193 16 466 318
Total current assets 6 332 452 2 582 766
TOTAL ASSETS 17 432 645 19 049 084
EQUITY AND LIABILITIES
Capital and reserves 1 981 506 11 614 846
Minority interest 7 016 459 4 443 572
Non-current liabilities
Interest-bearing loans 913 021 48 827
Non interest-bearing loans 1 623 704 1 452 694
Total non-current 2 536 725 1 501 521
liabilities
Total current liabilities 5 897 955 1 489 145
TOTAL EQUITY AND LIABILITIES 17 432 645 19 049 084
TOTAL ASSETS 17 432 645 19 049 084
Continued operations 16 094 765 12 436 661
Discontinued operations 1 337 880 6 612 423
TOTAL LIABILITIES 8 434 680 2 990 666
Continued operations 6 853 009 1 827 850
Discontinued operations 1 581 671 1 162 816
Net asset value 8 997 965 16 058 418
Net tangible asset value 8 148 579 10 451 425
Net asset value per share (cents) 0.15 0.27
Net tangible asset value per share (cents) 0.14 0.18
JOHN DANIEL HOLDINGS LIMITED AND ITS SUBSIDIARIES
ABRIDGED INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2006
GROUP GROUP
AUDITED AUDITED
2006 2005
R R
REVENUE 12 240 503 6 151 124
COST OF SALES (9 954 385) (5 260 800)
GROSS PROFIT 2 286 118 890 324
Other income 2 434 551 12 626 181
Selling, distribution and administration (12 774 186) (9 838 241)
expenses
OPERATING PROFIT / (LOSS) (8 053 517) 3 678 264
Net finance costs (79 441) (47 930)
Taxation income 1 356 063 1 387 966
NET PROFIT / (LOSS) FOR THE YEAR (6 776 895) 5 018 300
Attributable to:
Equity holders of the parents (5 133 358) 6 471 063
Minority interest (1 643 537) (1 452 763)
(6 776 895) 5 018 300
NET PROFIT / (LOSS) FOR THE YEAR (6 776 895) 5 018 300
Continued operations 212 152 6 101 359
Discontinued operations (6 989 047) (1 083 059)
Basic earnings / (loss) (5 133 358) 6 471 063
Headline earnings 453 634 6 460 863
Basic earnings / (loss) per share (cents) (0.09) 0.11
attributable to equity holders of the parent
Headline earnings per share (cents) 0.01 0.11
attributable to equity holders of the parent
Weighted average number of shares 5 805 975 905 5 805 975 905
Number of shares in issue 5 805 975 905 5 805 975 905
Reconciliation between basic earnings / (loss)
and headline earnings
Basic earnings / (loss) (5 133 358) 6 471 063
Profit on sale of fixed assets (20 000) (10 200)
Impairment of goodwill 5 606 992 -
Headline earnings 453 634 6 460 863
JOHN DANIEL HOLDINGS LIMITED AND ITS SUBSIDIARIES
ABRIDGED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2006
Capital Non Accumulated Minority Total
Distri- profit / interest
butable (loss)
reserve
R R R R R
GROUP
Balance at 1 July
2004 23 914 777 5 359 358 (24 130 352) (429 455) 4 714 328
Issue of shares in
subsidiary - - - 4 952 519 4 952 519
Sale of shares in
subsidiary - - - 1 373 271 1 373 271
Net profit for the
year - - 6 471 063 (1 452 763) 5 018 300
Balance at 30 June
2005 23 914 777 5 359 358 (17 659 289) 4 443 572 16 058 418
Unrealised profit
on fair value
adjustment upon
acquisition of
control in
subsidiary - - (4 499 982) - (4 499 982)
Acquisition of
subsidiary - - - 4 009 806 4 009 806
Issue of shares in
subsidiary - - - 206 618 206 618
Net loss for the
year - - (5 133 358) (1 643 537) (6 776 895)
Balance at 30 June
2006 23 914 777 5 359 358 (27 292 629) 7 016 459 8 997 965
JOHN DANIEL HOLDINGS LIMITED AND ITS SUBSIDIARIES
ABRIDGED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2006
GROUP GROUP
AUDITED AUDITED
2006 2005
R R
NET CASH (OUTFLOW) / INFLOW FROM OPERATING (4 166 139) (5 645 325)
ACTIVITIES
NET CASH (OUTFLOW) / INFLOW FROM INVESTING (1 881 801) 2 188 062
ACTIVITIES
NET CASH INFLOW/(OUTFLOW) FROM FINANCING 3 853 502 4 917 538
ACTIVITIES
Increase / (Decrease) in cash and cash (2 194 438) 1 460 275
equivalents
Cash and cash equivalents at the beginning of 1 215 922 (244 353)
the year
Cash and cash equivalents at the end of the (978 516) 1 215 922
year
Comments
REVIEW OF RESULTS AND FINANCIAL POSITION
The consolidated financial results under review are acceptable given the stage
of growth of the subsidiary companies. The Group has retained its focus
for the period under review, which was growing the business of the two
subsidiaries, Vinguard Ltd and Lazaron Biotechnologies (SA) Ltd, rather
than investing time and resources in new ventures. To this end, Group
resources were applied internally rather than sourcing additional
funding. The more than doubling of Group turnover during the past year
is attributable to successful market penetration of the subsidiaries in
their respective sectors. Gross profit percentage has increased by 36%
over the prior year. Other income has substantially decreased compared
to the previous year due to Lazaron now being accounted for as a
subsidiary and not as an available for sale financial asset.
Consequently, it had the same effect on headline earnings.
Selling distribution and administrative expenses in relation to revenue have
decreased by 35%.
Stakeholders are requested to note that the main reason for the Group loss
during the period under review is attributable to the discontinuation of
the historically loss making trailer manufacturing subsidiary, John
Daniel Containers Ltd. In particular shareholders are reminded that the
final goodwill write off has accounted for R5,6M of the Group losses.
As stated in the pervious interim reporting period, Vinguard experienced
substantial losses due to Eskom"s inability to provide either a constant
power supply or a reliable time table for power outages in the Western
Cape during January and February 2006. This contributed to the losses
for the period and consequent decline in headline earnings for the
consolidated Group.
OPERATIONAL OVERVIEW
Group Overview
As reported previously, high technology companies and in particular early stage
technology companies by their very nature are dependent on good market
acceptance of their specialised products or series. The Board is
satisfied that both Lazaron and Vinguard are particularly well positioned
for exponential growth having established their market presence in the
much specialised markets they service.
John Daniel Containers Ltd ("JDC")
Stakeholders have at various times previously been advised of the Board"s
concern surrounding the low margins achieved in the heavy transportation
manufacturing industry. Despite concerted efforts to retain a stake in
this industry, a decision to discontinue operations was taken in order to
prevent further losses and in the interests of stakeholders of the Group.
Vinguard Ltd ("Vinguard")
Vinguard has had a successful season in the Northern hemisphere table grape
industry. Vinguard has continued to penetrate new export markets and is
well positioned to expand its customer base in the Northern hemisphere
during the forthcoming season. A solid order book has been built for the
Southern hemisphere table grape season commencing in November 2006.
Lazaron Biotechnologies (SA) Ltd
Lazaron has completed a successful first year of operations to the extent that
most of the capital expenditures and targets set for a second round
funding exercise were met and internally funded. This included the
establishment of an additional world class adult stem cell laboratory,
the establishment of the Lazaron Heart Clinic and the continued funding
of various research projects such as the tendon regeneration project of
the Animal Bio-cell Division.
This growth has enabled Lazaron to position itself for the expansion of its
services into new markets, without further dilution of shareholders
interests through a second round funding.
PROSPECTS
As in the past, all at JDH remain committed to the principles of sound corporate
governance and the "towards twenty ten" business vision.
Continued growth in turnover and income is expected by the directors in the
current reporting period. Having focussed on establishing and growing
the investments in subsidiaries, the Board has now committed additional
resources towards identifying new investment opportunities.
Three new investment opportunities are currently being investigated and pursued
by JDH and stakeholders will be advised as soon as tangible progress has
been made.
DIVIDENDS
No dividends have been declared or proposed for the period under review.
ACCOUNTING POLICIES
The financial statements have been prepared in accordance with International
Financial Reporting Standards. The principle accounting policies adopted
in the preparation of these financial statements are consistent with
those of the prior year.
AUDIT REPORT
These results have been audited by PKF (Newlands) Inc. and their unqualified
audit report is available for inspection at the company"s registered
office.
For and on behalf of the Board.
S TSHIKI
Chairman
Stellenbosch
29 September 2006
Directors: S Tshiki (Executive Chairman), HD Minnie (CEO), NJ Ackermann
(Financial Director), T Mvusi (Non-Executive Director), S Serex (Non-
Executive Director)
Company Secretary: Capital Commitments Limited
Registered Office: Infruitec Northern Terrain, Lelie Street, Stellenbosch 7600,
PO Box 1243, Stellenbosch, 7599.
Transfer Secretaries: Computershare Investor Services 2004 (Pty) Ltd, 70
Marshall Street, Marshalltown 2001. PO Box 61051, Marshalltown, 2107.
Sponsor: LPC Manhattan Moela (Pty) Ltd
Auditors: PKF (Newlands) Inc.
Date: 02/10/2006 11:57:07 AM Produced by the JSE SENS Department
