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DISTRIBUTION AND WAREHOUSING NETWORK LIMITED - PRELIMINARY REVIEWED RESULTS FOR

Release Date: 27/09/2002 07:46
Code(s): DAW
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DISTRIBUTION AND WAREHOUSING NETWORK LIMITED - PRELIMINARY REVIEWED RESULTS FOR THE YEAR ENDED 30 JUNE 2002 DISTRIBUTION AND WAREHOUSING NETWORK LIMITED (Incorporated in the Republic of South Africa) (Registration number 1984/008265/06) ("DAWN" or "the Group") Alpha code: DAW * ISIN number: ZAE000018834 E-mail: info@dawnltd.co.za * Website: www.dawnltd.co.za JUST-IN-TIME DISTRIBUTION PRELIMINARY REVIEWEd results for the year ended 30 june 2002 Group income statement Reviewed Audited
12 months 12 months 30 June 30 June 2002 2001 R`000 R`000
Turnover 844 922 808 590 - Continuing operations 802 222 691 622 - Discontinued operations 42 700 116 968 Operating profit 33 043 51 025 - Continuing operations 44 111 51 018 - Discontinued operations (11 068) 7 Net finance costs (5 100) (3 332) Profit before exceptional items 27 943 47 693 Exceptional items (1 961) (17 452) Profit before taxation 25 982 30 241 Taxation (6 334) (9 987) Earnings for the year 19 648 20 254 Included above Depreciation 8 968 6 859 Operating lease charges 7 776 8 364 Exceptional items 1 961 17 452 - Loss on discontinued operations 5 899 5 910 - Profit on sale of business (4 138) - - Rationalisation expenditure - 7 688 - Provision for onerous obligations in respect of delay of computer system implementation - 3 654 - Amortisation of goodwill 200 200 Tax relief (1 770) (3 402) 191 14 050 Headline earnings 19 839 34 304 (after adjustment for exceptional items) Statistics Number of shares (`000) - in issue 298 627 298 627 - held in treasury 12 341 - - weighted average 289 992 291 318 Headline earnings per share (cents) 6,84 11,78 Headline earnings per share from continuing operations (cents) 10,66 11,77 Attributable earnings per share (cents) 6,78 6,95 Operating profit (%) 3,91 6,31 GROUP CASH FLOW STATEMENT Reviewed Audited 12 months 12 months
30 June 30 June 2002 2001 R`000 R`000 Cash flow from operating activities 29 781 14 368 Cash flow from investing activities 8 694 (26 090) Cash flow from financing activities (9 769) (1 464) Increase/(decrease) in cash resources 28 706 (13 186) Cash resources at beginning of year (9 922) 3 264 Cash resources at end of year 18 784 (9 922) GROUP BALANCE SHEET Reviewed Audited 30 June 30 June
2002 2001 R`000 R`000 Assets Non-current assets Property, plant and equipment 24 770 26 986 Intangible assets 600 800 Investments - 524 Current assets 262 828 248 946 Inventory 94 199 91 246 Receivables and prepayments 149 845 157 700 Cash and cash equivalents 18 784 - 288 198 277 256
Equity and liabilities Capital and reserves Ordinary shareholders` equity 123 705 108 382 Non-current liabilities 9 779 22 852 Interest-bearing liabilities 5 477 9 990 Convertible debentures - 4 482 Deferred tax liabilities 4 302 8 380 Current liabilities 154 714 146 022 Trade and other payables 144 872 129 328 Convertible debentures 4 000 - Current portion of borrowings 5 842 6 772 Bank overdraft - 9 922 288 198 277 256 Future commitments Finance leases 10 633 16 082 Operating leases 63 070 63 258 73 703 79 340 Value per share Asset value per share - Net asset value (cents) 43,21 36,29 - Market price (cents) 42 45 Financial gearing ratio (%) 12,38 28,76 Current asset ratio (times) 1,70 1,70 STATEMENT OF CHANGES IN EQUITY Reviewed Audited 12 months 12 months 30 June 30 June 2002 2001
R`000 R`000 Opening balance 108 382 87 840 Attributable earnings 19 648 20 254 Treasury shares acquired (4 325) - Repayment of share premium - (10 323) Net shares issued - 10 611 Balance at the end of the year 123 705 108 382 COMMENTARY FINANCIAL RESULTS Trading conditions improved substantially during the second half of the year, after a relatively poor start in the first half of the year under review. Results were adversely affected by the first half and the losses incurred by United Express, which was discontinued effective 1 June 2002. As a result attributable earnings remained relatively flat at R19,6 million. Nevertheless, sales, net asset value and cash flow improved over the previous period. The balance sheet remains strong with a gearing of 12,38%. Post-balance sheet events * Share repurchase The repurchase of 98 million shares at a cost ofR46,35 million was approved by the shareholders with effect from 26 July 2002. This repurchase will have a positive impact on the earnings per share for the 2003 financial year. * Discontinued operations In keeping with the Group`s strategy to focus on its strength of wholesale trading of building and related products, we have discontinued the business of United Express. The Group was not successful in integrating this business into its core activities. * Convertible debentures The 4 074 546 convertible debentures were redeemed for a cash consideration of R4 million on 15 July 2002. PROSPECTS The Group continues to refocus and drive sales and earnings in its core business of wholesaling products in the building and related industries. We expect the momentum in trading conditions experienced in the last two quarters to continue for the foreseeable future, with its resultant positive impact on the results for the 2003 financial year. DIVIDEND The directors decided not to pay any dividends to conserve cash following the share repurchase transaction. DIRECTORS The Board notes with regret the untimely death of Mr Charl van der Merwe on 12 September 2002, and extends its sincere condolences to his family. Charl added substantial value as a member and Chairman of the Board since 1995 until his resignation during November 2001. Lou Alberts was appointed Chairman of the Board on 22 November 2001. APPRECIATION The Board would like to thank all our staff, customers and suppliers for their unwavering and continued support during the period under review. We consider our relationship with them as a vital part of our competitive advantage and the results which we have achieved. NOTES TO THE ABRIDGED FINANCIAL STATEMENTS There has been no changes in accounting policies during the year ended 30 June 2002. The reviewed results have been prepared in accordance with South African Statements of Generally Accepted Accounting Practice. PricewaterhouseCoopers Inc, Chartered Accountants (SA), have reviewed the results and their review opinion is available for inspection at the company`s registered office. On behalf of the Board LMAlberts DATod Chairman Chief Executive Officer Johannesburg 27 September 2002 REGISTERED OFFICE 2 Keerom Road, Heriotdale Ext 10, Cleveland, Johannesburg 2000 DIRECTORS LM Alberts* (Chairman), DA Tod (Chief Executive Officer), JABeukes, RL Hiemstra* *Non-executive TRANSFER SECRETARIES Computershare Investor Services Limited, 70 Marshall Street, Marshalltown 2001. (POBox 61051, Marshalltown 2107) Date: 27/09/2002 07:43:00 AM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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