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NU-WORLD HOLDINGS LIMITED (Registration No. 1968/002490/06)
INTERIM RESULTS FOR 6 MONTHS ENDED 28 FEBRUARY 2001 Turnover Up 39.5% Net Operating Income Up 20.2% Profit Before Taxation Up 18.7% Attributable Income Up 24.3% Headline Earnings Per Share Up 23.1%
Nu-World is on track for 11 Consecutive Years of Growth in Turnover, Operating Income, Headline Earnings Per Share and Dividend.
With the take-over of the Telefunken brand, Nu-World is emerging as the leading player in Consumer Electronics in South Africa.
Nu-World is rated as one of the Top Ten Growth Companies on the J.S.E. over five years - by Gemini Consulting, Brait and Business Report. INCOME STATEMENT
Unaudited Six Months Ended Year Ended
28 Feb 2001 29 Feb 2000 % 31 Aug 2000 (R000) (R000) Change (R000)
Turnover 439 385 315 030 39.5 653 772 Net operating income 24 693 20 545 20.2 54 213
Depreciation 2 302 1 913 20.3 4 052
Interest paid 4 783 3 801 25.8 6 414
Income before taxation 17 608 14 831 18.7 43 747
Taxation 3 737 3 745 (0.2) 12 014
Income after taxation 13 871 11 086 25.1 31 733 Outside Shareholder's
interest 87 2 648
Attributable income 13 784 11 086 24.3 29 085
Dividend 4 900 Retained earnings
for the period 13 784 11 086 24.3 24 185
Headline Earnings 13 784 11 086 24.3 29 085 Earnings per
share (cents) 63.5 51.1 24.3 134.1 Earnings per
share (cents) 63.5 51.6 23.1 134.8 - weighted Headline earnings per
share (cents) 63.5 51.1 24.3 134.1 Headline earnings per
share (cents) 63.5 51.6 23.1 134.8 - weighted Dividend per
share (cents) 22.6
Dividend cover 5.9
Interest cover 4.7 4.9 7.8
Shares in issue 21 695 21 695 21 695
Shares in issue-weighted 21 695 21 471 21 584 BALANCE SHEET
Unaudited Six Months Ended Year Ended 28 Feb 2001 29 Feb 2000 31 Aug 2000 (R000) (R000) (R000) Assets Non-current assets
Fixed assets 29 212 25 244 28 245 Goodwill 7 374 7 567 Current assets
Inventory 189 050 101 941 132 947 Trade and other
receivables 166 650 121 596 157 150 Cash equivalents 18 673 43 089 60 531 Total assets 410 959 291 870 386 440 Equity and liabilities
Shareholders' interest 221 839 194 915 208 101 Minority interest 22 873 22 880 Non-current liabilities 15 486 21 991 17 433 Current liabilities
Trade and other payables 150 643 72 464 136 995 Current portion of interest
bearing liabilities 118 2 500 1 031 Total equity and
liabilities 410 959 291 870 386 440 Debt-equity ratio 0.0% 0.0% 0.0% STATEMENT OF CHANGES IN EQUITY
Unaudited Six Months Ended Year Ended 28 Feb 2001 29 Feb 2000 % 31 Aug 2000 (R000) (R000) Change (R000) Equity at beginning of
the period 208 101 184 157 184 157 Dividend paid (328) (328) Transfer from/(to)
deferred taxation 61 (114) Transfer from/(to)
minority interest 94 (175) Foreign currency
translation reserve (201) 376 Retained earnings for
the period 13 784 11 086 29 085 Dividend proposed (4 900) Equity at end of period 221 839 194 915 208 101 CASH FLOW STATEMENT
Unaudited Six Months Ended Year Ended 28 Feb 2001 29 Feb 2000 % 31 Aug 2000 (R000) (R000) Change (R000) Cash utilized by
operating activities (35 018) (32 701) (4 981) Cash (absorbed)/generated
by operations (13 578) (22 448) 7 491
Interest paid (4 783) (3 801) (6 414) Dividend paid (4 900) (328) (328)
Taxation paid (11 757) (6 124) (5 730) Cash flows from investing
activities (3 242) (2 476) (18 415) Purchase of tangible
fixed assets (3 312) (2 476) (7 417) Proceeds on disposal of
fixed assets 70 128 Acquisition of
subsidiary company (11 126) Cash flows from financing
activities (3 598) (1 152) 4 509 Proceeds from long term
borrowings (3 390) (1 152) (7 167) Proceeds from issue of shares to minority
shareholders (208) 11 676 Net decrease in cash and
cash equivalents (41 858) (36 329) (18 887) Cash and cash equivalents at the beginning of
the period 60 531 79 418 79 418 Cash and cash equivalents
at the end of the period 18 673 43 089 60 531 COMMENTS
The Directors are pleased to present growth results for the eleventh
consecutive interim period, notwithstanding the difficult trading environment in the Southern African economy.
These results include for the first time, a full six month trading from our Australian acquisition Prima Akai Australasia Pty Ltd. During the period under review, the take-on of the Casio brand business as well as the Telefunken brand of Consumer Electronics are also reflected for the first time.
Turnover for the Group has increased by almost 40% to R439,385m. (Feb 2000: R315, 030m).
Net Operating Income increased by 20.2% to R24,693m. Margins have come under pressure in the more competitive market place as well as from the devaluation of the Rand during the period.
The Tax Rate has decreased to 21.2%. This is primarily a result of permanent timing differences.
Outside Shareholder's Interest is reflected for the first time - arising from the offshore acquisition.
Notwithstanding the difficult economic conditions prevailing in South Africa during the period, Headline Earnings of R13,784m is up 24.3% and Headline Earnings Per Share on a weighted basis of 63.5 cents is up by 23.1%. (Feb 2000:51.6 cents). No dividend is paid at the interim stage.
The effects of the offshore acquisition and the take-on of both the Casio and the Telefunken brands, distort specific year on year comparisons in the Balance Sheet.
In particular, the increases in Inventory and Debtors is a reflection of the acquisitions. The base Inventory levels in comparison have increased in line with the increase in Turnover. In the same light, the D.S.O. Debtors collection measure, is much in line, year on year.
The Group remains in an ungeared position with Cash on hand of R18,673m. Cash absorbed by operation of R13,578m is almost 40% down on the previous year. More stringent controls over Working Capital as well as the rightsizing of Stockholding and Debtors of the acquired companies and brands, is expected to make a positive impact on the generation of funds over the forthcoming six months.
Prima Akai Australasia Pty Ltd - whilst the small appliance division in Australia is performing well, the market for Consumer Electronics is pedestrian following the run-up to the Olympics. It is anticipated however that the contribution from the Australian Operations will improve for the forthcoming period. PROSPECTS
After operating in a difficult trading environment during the period under review and in particular during the first quarter of 2001, Nu-World is experiencing a substantial improvement going forward. The order book for appliances for the winter season is particularly strong and sales of Consumer Electronics are improving daily.
The Telefunken brand taken on in November 2000, is proving to be a strong growth driver within the Consumer Electronics Division. Nu-World's spread of brands now cover the entire Consumer Electronic market. Our Nu-Tec brand is positioned at price entry. At the middle market we have the Telefunken brand and at the top end we market JVC.
The prospects for the forthcoming six months for all other operating divisions, across Small Appliances, Airconditioning, Furniture, Casio branded products and imported Large Appliances, all appear significantly better than for the reporting period under review.
The diversified nature of the group with 22 leading local and international brands, operating across and extensive range of Consumer Durable Products in Subsaharan Africa and Australasia, places Nu-World in a position of strength to continue to produce above average growth across the board. STRATE
Nu-World has been selected by the JSE to transfer it's Share Capital to Share Transaction Totally Electronic ("STRATE"), an electronic settlement environment for transactions to be settled and transfer of ownership to be recorded electronically, as of 3 September 2001. In terms of the JSE's revised Listings Requirements, the move to STRATE is obligatory and it will ensure Nu-World participates in a sophisticated settlement process which is on a par with international best practice. By order of the board M.S. Goldberg G.R. Hindle Managing Director Company Secretary Johannesburg 5 April 2001 DIRECTORS
Dr J.A. Temple PhD (Chairman), M.S. Goldberg BCom MBA (Rand)(Managing), J.A. Goldberg BSc (Eng)(Rand), J.M. Judin Dip Law (Rand), G.R. Hindle CA (SA), P. Gross B.Com L.L.B. (Wits)
Registered office Transfer secretaries
35-3rd Street Mercantile Registrars Ltd
Wynberg, Sandton 11 Diagonal Street 2199 Johannesburg 2000
