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Provisional reviewed results for the year ended 30 June 2014.
Awethu Breweries Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 1992/004352/06)
Share Code: AWT ISIN Number: ZAE 000013769
(“the company” or “Awethu”)
PROVISIONAL REVIEWED RESULTS FOR THE YEAR ENDED 30 JUNE 2014
Condensed Statement of Comprehensive Income
Year ended Year ended
30 June 2014 30 June 2013
Reviewed Audited
R R
Continuing operations
Revenue 945 746 11 421 059
Cost of sales (902 029) (10 150 024)
Gross profit 43 717 1 271 035
Operating expenses (755 577) (924 843)
Investment revenue - 524
Finance costs (3 263) (593 208)
Fair value adjustment (2 927 199) -
Operating loss (3 642 322) (246 492)
Taxation - -
Total comprehensive loss (3 642 322) (246 492)
Basic and diluted loss per
share (cents) (4.31) (0.29)
Headline loss per share (cents) (0.85) (0.29)
Basic number of shares in issue 84 556 909 84 556 909
Weighted average number of shares on which:
Basic loss per share
is based 84 566 909 84 566 909
Headline loss per share
is based 84 566 909 84 566 909
Condensed Statement of Financial Position
30 June 30 June
2014 2013
Reviewed Audited
R R
Assets
Non-Current Assets
Property, plant and equipment 30 092 36 426
Investment Property 4 500 000 7 427 199
4 530 092 7 463 625
Current Assets
Trade and other receivables 103 690 495 792
Cash and cash equivalents - 152 803
Straight-lining of lease asset - 84 762
Total current assets 103 690 733 357
Total assets 4 633 782 8 196 982
Equity and Liabilities
Equity
Share capital 10 747 076 10 747 076
Accumulated loss (16 317 326) (12 675 004)
(5 570 250) (1 927 928)
Liabilities
Non-Current Liabilities
Loan from shareholder 8 054 113 8 006 782
8 054 113 8 006 782
Current Liabilities
Trade and other payables 480 265 448 558
Bank Overdraft 84 -
Provisions 1 669 570 1 669 570
2 149 919 2 118 128
Total Equity and Liabilities 4 633 782 8 196 982
Net Liability Value per share (cents) 12.1 12.0
Condensed Statement of Changes in Equity
Share Share Total Share Accumulated Total
Capital Premium Capital Loss Equity
R R R R R
Balance at
30 June 2012 845 569 9 901 507 10 747 076 (12 428 512)(1 681 436)
Total comprehensive
loss for the year - - - (246 492) (246 492)
Balance at
30 June 2013 845 569 9 901 507 10 747 076 (12 675 004)(1 927 928)
Total comprehensive
loss for the year - - - (3 642 322)(3 642 322)
Balance at
30 June 2014 845 569 9 901 507 10 747 076 (16 317 326)(5 570 250)
Condensed Statement of Cash Flows
30 June 30 June
2014 2013
Reviewed Audited
R R
Cash flows from operating activities:
Cash used in operations (196 955) (327 475)
Finance costs (3 263) (997)
Net cash from operating activities (200 218) (328 472)
Cash Flows from investing activities:
Interest income - 524
Net cash from investing activities - 524
Cash flows from financing activities:
Movement in shareholder’s loan – inflow 47 331 -
Net cash from financing activities 47 331 -
Total cash movement for the year (152 887) 327 948
Cash at beginning of year 152 803 480 751
Total cash at end of year (84) 152 803
Notes to condensed financial statements:
1. Basis of preparation
These provisional reviewed condensed financial statements have been
prepared by Mr JA Taylor CA(SA). The condensed financial statements are
prepared in accordance with the requirements of the JSE Limited Listings
Requirements for provisional reports and the requirements of the Companies
Act of South Africa. The Listings Requirements require provisional reports
to be prepared in accordance with the framework concepts and the
measurement and recognition requirements of International Financial
Reporting Standards (IFRS) and the SAICA Financial Reporting Guides as
issued by the Accounting Practices Committee and Financial Pronouncements
as issued by Financial Reporting Standards Council and to also, as a
minimum, contain the information required by IAS 34 Interim Financial
Reporting. The accounting policies applied in the preparation of the
condensed financial statements are in terms of IFRS and are consistent
with those applied in the previous annual financial statements. There were
no effects of changes in new accounting standards for the year.
2. Headline loss
Reconciliation between basic loss
and headline loss:
Net Loss for year (3 642 322) (246 492)
Fair value adjustment on
investment property 2 927 199 -
Total tax effect of adjustments
Headline loss for the year (715 123) (246 492)
3. Segmental Information
The segment revenues, operating profit and other expenses generated by
each reportable segment is summarised as follows:
2014 2013
Sales of goods
Revenues 945 746 10 589 903
Investment revenue - 524
Cost of sales (902 092) (10 150 024)
Depreciation (6 335) (6 335)
Operating lease charges (45 000) (60 000)
Employee costs (53 460) (61 827)
Finance costs (959) (593 208)
Segment loss (2013 : Profit) (62 100) 311 244
Other expenses (134 822) (915 289)
Director’s remuneration (60 000) (81 600)
Listing costs (232 861) (181 069)
Audit and accounting (225 340) (210 934)
Company loss from continuing (653 023) (246 492)
operations before tax.
Rental of premises
Rental income - 831 156
Impairment of assets held for sale (2 927 199) -
Segment (loss)/profit (2 927 199) 831 156
All segment revenue is derived from external sources
External revenues per geography are summarized as follows:
Ventersdorp
Goods sold 945 746 10 589 903
Rental income - 831 156
Total revenue 945 746 11 421 059
The operating segment assets by each reportable segment are summarized as
follows:
Sales of goods
Property, plant and equipment 30 092 36 426
Trade and other receivables 103 690 495 792
Segment assets 133 782 532 218
Rental of premises Investment Property 4 500 000 7 427 199
Segment assets 4 500 000 7 427 199
Unallocated assets:
Cash and cash equivalents 152 803
Straight-lining of lease asset 84 762
Company assets 4 633 782 8 196 982
The company does not report on segment liabilities.
Non-current non-financial asset per geography are summarized as follows:
Ventersdorp
Property, plant and equipment 30 092 36 426
Investment Property 4 100 000 6 827 199
Total assets 4 130 092 6 863 625
Carletonville
Investment property 400 000 600 000
Total 4 530 092 7 463 625
4. Going concern
The company reported a net loss of R3 642 322 and the company’s
liabilities exceeds its assets by R5 570 250. The condensed financial
statements have been prepared on the going concern basis as the
shareholder's loan account has been subordinated in favour of all other
creditors until such time as the company's assets (fairly valued) exceed
its liabilities.
COMMENTARY
1. Review of the results
Awethu Breweries went through a disappointing year where we are still
awaiting our liquor license as well as the sale of the Venterdorp mill.
Neither were successful during the year. Due to current offers on the
mill, we have impaired the value of the Investment property. This resulted
in a current year impairment of R2 927 199, which represents 80% of the
total loss reported for the year. Furthermore, the mill has not been
classified as held for sale as it is not certain that the requirement, per
IFRS 5 Non-Current Assets Held for Sale for the sale to complete within 12
months, will be met. There are no extra comments on the current results to
report on.
2. Synopsis of Operations for the period and post balance sheet events
Awethu is committed to selling the Ventersdorp mill to raise some capital
for working capital and further acquisitions. There are no post balance
sheet updates to be reported on at this time.
3. Dividends
No dividend has been declared for the year.
4. Independent review by the external auditors.
The condensed provisional financial information for the year ended 30 June
2014 has been reviewed by the Company’s auditors, Logista CA (SA)
Incorporated. The review was conducted in accordance with ISRE 2410 Review
of Interim Financial Information performed by the Independent Auditor of
the Entity. The auditors review report does not necessarily cover all the
information in this announcement. Shareholders are therefore advised that
in order to obtain a full understanding of the nature of the auditors work
they should obtain a copy of that report together with the accompanying
financial information from the registered office of the Company. Any
reference to future financial performance included in this announcement
has not been reviewed or reported on by the Company’s auditors.
5. Emphasis of matter:
The auditors review report contains the following conclusion:
“Without qualifying our opinion, we draw attention to note 4 in the
condensed financial statements which indicates that the company incurred a
net loss of R (3 642 322) for the year ended 30 June 2014 and, as at that
date, the company’s total liabilities exceed its total assets by
R(5 570 250).The note 4 also indicates that these conditions, along with
other matters, indicated the existence of a material uncertainty which may
cast significant doubt on the company’s ability to continue as a going
concern.” The review report is open for inspection at the company’s
registered office.
6. Director changes during the year
Mr Salim Bismilla was appointed to the board during the year as an
independent non-executive director of the Company with effect from 28
February 2014, as announced on SENS on 3 March 2014. Ms Irene Vermaak has
been appointed as non-executive director of the company with effect from
30 September 2014 and Mr. Jason Taylor has been appointed as the financial
director with effect from 30 September 2014, both changes were announced
on SENS on 1 0ctober 2014. The board wishes to thank Ms Irene Vermaak for
her contribution over the years and welcome’s her input in her new role.
On behalf of the board
TTW Ford
Chief executive
15 October 2014
Vanderbijlpark
Registered Office: 24 Sering Street, SE3 Vanderbijlpark, 1911
Transfer secretaries: Computershare Investor Services (Pty) Ltd –
70 Marshall Street, Johannesburg, 2001
Directors: TTW Ford(CEO),JA Taylor (FD) I Vermaak(non-
executive),S Bismilla(independent, non-executive)
Auditors: Logista CA (SA)Incorporated
Chartered Accountants (S.A.)
Registered Auditors
Sponsors: Deloitte & Touche Sponsor Services (Pty) Ltd
Date: 15/10/2014 07:49:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
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