|
MKX
MKX
Milkworx - Abridged reviewed provisional financial results for the year
ended 30 June 2006
MILKWORX LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/011074/06)
Share code MKX & ISIN ZAE000058020
("Milkworx" or "the company")
ABRIDGED REVIEWED PROVISIONAL FINANCIAL RESULTS FOR THE YEAR
ENDED 30 JUNE 2006
balance sheets
Reviewed Unaudited Audited
30 Jun 2006 31 Dec 2005 30 Jun 2005
R"000 R"000 R"000
ASSETS
Non-current assets 22 591 21 492 22 851
Property, plant and 20 051 20 729 21 743
equipment
Intangible assets 753 759 765
Deferred taxation 1 787 4 343
Current assets 15 985 19 690 15 588
Inventories 8 367 8 950 8 025
Trade and other 7 422 9 260 7 188
receivables
Cash and cash equivalents 196 1 480 375
Total assets 38 576 41 182 38 439
EQUITY AND LIABILITIES
Capital and reserves 19 373 24 205 22 834
Share capital 5 453 5 453 5 453
Share premium 15 353 15 353 15 353
Retained income/(loss) (15 943) (11 111) (12 482)
Non-distributable reserves 14 510 14 510 14 510
Non-current liabilities 5 033 4 371 4 804
Long-term liabilities 1 586 1 591 1 990
Shareholders loans 2 778 2 780 2 814
Loans payable and 669 - -
operating lease liability
Current liabilities 14 170 12 606 10 801
Trade and other payables 8 759 8 413 6 491
Bank overdraft 2 827 3 037 3 057
Provision and accruals 334 252 326
Short-term portion of 2 250 904 927
liabilities
Total equity and 38 576 41 182 38 439
liabilities
Net asset value per share 3.6 4.4 4.2
(cents)
Net tangible asset value 3.4 4.3 4.0
per share (cents)
Closing number of shares 545 248 545 248 545 248
("000)
income statements
Reviewed Unaudited Audited
12 Months 6 Months 12 Months
ended ended31 ended
30 Jun 2006 Dec 2005 30 Jun 2005
R"000 R"000 R"000
Revenue 68 847 43 058 67 794
Cost of sales (53 499) (27 527) (48 863)
Gross profit 15 348 15 531 18 931
Other income 223 77 781
Amortisation of negative - - 1 348
goodwill
Impairment of assets ( 637) - -
Bad debts ( 677) - -
Operating expenses (18 412) (13 586) (17 585)
Profit before interest and ( 4 155) 2 022 3 475
taxation
Finance charges (750) (311) (367)
Profit before taxation ( 4 905) 1 711 3 108
Taxation 1 444 (340) (478)
Net profit for the period ( 3 461) 1 371 2 630
Reconciliation between earnings and headline earnings
Earnings / (Loss) per share (cents) (0.63) 0.25 0.53
Profit on sale of assets (cps) (0.01) - (0.01)
Profit on debt written off and - (0.01) (0.12)
settled (cps)
Impairment of assets (cps) 0.08 - -
Amortisation of goodwill (cps) - - (0.27)
Headline earnings / (Loss) per (0.56) 0.24 0.13
share (cents)
Weighted average number of shares 545 248 545 248 499 793
("000)
CASH FLOW statements
Reviewed Unaudited Audited
12 Months 6 Months 12 Months
ended 30 ended 31 ended
Jun 2006 Dec 2005 30 Jun
R"000 R"000 2005
R"000
Cash flows from operating (230) 2 279 ( 4 263)
activities
Cash flows from investing ( 1 128) (721) (1 405)
activities
Cash flows from financing 1 409 (433) 2 984
activities
Net movement in cash and cash 51 1 125 (2 684)
equivalents
Cash and cash equivalents at ( 2 682) ( 2 682) 2
beginning of period
Cash and cash equivalents at end of ( 2 631) ( 1 557) ( 2 682)
period
Statements OF CHANGES IN EQUITY
Share Share Non- Accumulated Total
capital premium distributable Profit R"000
R"000 R"000 reserve R"000
R"000
Balance at 1 Jul 1 084 5 047 14 408 (15 112) 5 427
2004
Cancellation of (102) - 102 - -
shares
Issue of shares 4 471 10 306 - - 14 777
Net profit for - - - 2 630 2 630
the period
Balance at 1 Jul 5 453 15 353 14 510 (12 482) 22 834
2005
Net - - - ( 3 461) ( 3 461)
profit/(loss)
for the period
Balance at 30 5 453 15 353 14 510 (15 943) 19 373
Jun 2006
Segment results June 2006
Avondale Creamstar Group
12 Months 12 Months 12 Months
ended ended ended
30 Jun 2006 30 Jun 2006 30 Jun 2006
R"000 R"000 R"000
Revenue
External sales 33 036 35 811 68 847
Internal segment sales 3 758 145 3 903
Total Revenue 36 794 35 956 72 750
Segment Results 1 112 ( 5 053) ( 3 941)
Unallocated expenses ( 964)
Taxation 1 444
Results ( 3 461)
Segment results June 2005
Avondale Creamstar Group
12 Months 12 Months 12 Months
ended ended ended
30 Jun 2005 30 Jun 2005 30 Jun 2005
R"000 R"000 R"000
Revenue
External sales 22 004 45 790 67 794
Internal segment sales 1 543 223 1 766
Total Revenue 23 547 46 013 69 560
Segment Results 2 229 1 538 3 767
Unallocated expenses ( 659)
Taxation ( 478)
Results 2 630
COMMENTARY
1 Financial and operational overview
In the circular to shareholders, dated 24 August 2004, the board of directors
made a two-year profit forecast of R2.95 million, which is for the full
financial year ending 30 June 2006. Forecast profits were not achieved due
to various factors including:
* Unexpected rainfall patterns were experienced during January up to end
of April 2006. An extended winter period was experienced and as a
result sales for the second six months of the financial year were down
40% compared to the first six months;
* Certain assets were impaired;
* Debt which was previously expected to be collected, has been written
off;
* The gross profit margin for the financial year decreased from 28% to
22%, due to price increases on imported raw materials of which the
prices are rand dollar exchange sensitive. The gross profit percentage
for the first six months did not reflect all overhead costs;
* Continuous increases in fuel prices and massive increases in the price
of plastic packaging (+/- 30 %), have made it difficult to keep sales
prices of finished goods to the final consumer base in line;
* Unfavorable supermarket contracts; and
* Working capital has been financed out of new debt.
2 Prospects
Milkworx Ltd acquired a national contract with a multinational organisation,
which is expected to grow by 10% on a year to year basis. Further
negotiations are underway to secure further contracts.
The board, during the period increased the fleet and acquired an additional
freezer room to satisfy increased demands in the summer periods. The board
of directors believes that this capital expenditure will enhance effective
distribution and lead to potentially increased profits in the long term.
Further cost cutting exercises will be implemented on an ongoing basis, which
will decrease the losses.
The board is in the process of canceling unfavorable contracts with certain
clients and supermarkets.
The board of directors is of the opinion that the above will lead to improved
performance in the next financial year.
3 Accounting policies
The accounting policies of the company comply in all material respects with
International Financial Reporting Standards and the Companies Act of 1973.
The accounting policies and methods of measurement and recognition are
consistent with those applied in the previous financial period.
During the year under review the method of calculating the carrying value of
fixed assets was changed in that the estimated residual values of the asset
was taken into account and remaining useful life of assets were reassessed.
The unqualified reviewed audit report of the auditors is available for
inspection at the registered office of the company.
4 Dividends
No dividends were recommended or declared for the interim period.
For and on behalf of the board
Stephan Roux
Chief Executive Officer
07 November 2006
Directors: SA Roux, T Dajcar, P van Heerden and A Stander (Non Executive)
Transfer secretaries Registered address
Computershare Investor Services 2004 (Pty) Ltd 167 Alumina Street,
Silvertondale, Pretoria
Designated Advisor
River Group
Date: 07/11/2006 11:06:14 AM 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 ] | |||||||||||||
|
|||||||||||||
