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AHL - Ah-Vest Limited - Audited consolidated condensed results for the year ended 31 March 2011 AH-VEST LIMITED (Formerly All Joy Foods Limited) (Incorporated in the Republic of South Africa) (Registration number 1989/000100/06) Share code: AHL ISIN code: ZAE000129177 AUDITED CONSOLIDATED CONDENSED RESULTS FOR THE YEAR ENDED 31 MARCH 2011 Condensed statement of financial position Year Year ended ended 31 March 2011 31 March 2010
R R Assets Non-current Assets 15 704 204 13 110 636 Property, Plant & Equipment 14 143 998 11 550 430 Deferred tax 450 000 450 000 Intangible asset 1 110 206 1 110 206 Current Assets 28 435 725 31 048 039 Inventories 10 267 639 12 160 883 Loans to fellow subsidiary - 2 500 248 Advances paid to employees 28 715 - Trade & other receivables 12 366 198 11 708 017 Cash & cash equivalents 5 773 173 4 678 891 Total Assets 44 139 929 44 158 675 Equity and Liabilities Capital and Reserves 15 439 874 17 888 021 Share capital 21 293 071 21 293 071 Revaluation Reserves 4 688 610 4 688 610 Accumulated loss (10 541 807) (8 093 660) Non current liabilities 11 845 571 160 948 Finance lease obligation 442 484 40 906 Other financial liabilities 11 305 986 Operating lease liability 97 101 120 042 Current liabilities 16 854 484 26 109 706 Other financial liabilities 1 169 470 14 353 321 Finance lease obligation 286 266 41 390 Trade and other payables 15 398 748 11 714 995 Total Equity and Liabilities 44 139 929 44 158 675 Net asset value per share (cents) 15.14 17.54 Tangible net asset value per share (cents) 14.05 16.01 Share in issue at year end (`000) 101 973 333 101 973 333 Condensed statement of comprehensive income Year Year ended ended
31 March 2011 31 March 2010 R R Revenue 88 284 479 77 545 096 Cost of Sales (55 741 723) (50 778 111) Gross profit 32 542 756 26 766 985 Other income 134 026 1 283 354 Operating expenses (34 264 594) (26 156 196) Operating profit before finance costs (1 587 812) 1 894 143 Investment revenue 474 423 351 708 Finance costs (1 334 760) (1 549 983) Profit/(Loss) before tax (2 448 149) 695 868 Taxation - 450 000 Profit/(Loss) for the period (2 448 149) 1 145 868 Attributed to: Equity holders of the company (2 448 149) 1 145 868 Minority interest - - Headline Profit/(loss) calculation: Profit/(Loss) attributed to equity holders (2 448 149) 1 145 868 of the company Adjusted for: Profit on sale of plant - (19 414) Impairment of assets - 74 074 Headline earnings/(loss) (2 448 149) 1 200 528 Weighted average shares in issue 101 973 333 101 973 333 Diluted weighted average shares in issue 101 973 333 101 973 333 (Loss)/Earnings per share (cents) (Loss)/Earnings per share (2.40) 1.12 Diluted (loss)/earnings per share (2.40) 1.12 Headline (loss)/earnings per share (2.40) 1.18 Diluted Headline (loss)/earnings per share (2.40) 1.18 Adjusted headline earnings per share (2.40) 1.18 Statement of changes in equity Share Share premium Total share
Capital capital R R R Balance at 01 April 2009 1 019 734 20 273 337 21 293 071 Changes in equity Total comprehensive income - - - for the year Total changes - - - Balance at 01 April 2010 1 019 734 20 273 337 21 293 071 Changes in equity Total comprehensive loss for - - - the year Total changes - - - Balance at 31 March 2011 1 019 734 20 273 337 21 293 071 Revaluation Accumulated Total Equity reserve Loss
R R R Balance at 01 April 2009 4 688 610 (9 239 526) 16 742 155 Changes in equity Total comprehensive income - 1 145 868 1 145 868 for the year Total changes - 1 145 868 1 145 868 Balance at 01 April 2010 4 688 610 (8 093 658) 17 888 023 Changes in equity Total comprehensive loss for - (2 448 149) (2 448 149) the year Total changes - (2 448 149) (2 448 149) Balance at 31 March 2011 4 688 610 (10 541 807) 15 439 874 Condensed statement of cash flows 12 months 12 months ended ended 31 March 31 March
2011 2010 R R Cash flows from operating activities
Cash generated from operation 7 641 959 4 531 165 Interest income 474 423 344 266 Finance costs (1 334 760) (1 542 541) Net cash from operating activities 6 781 622 3 332 890 Cash flows from investing activities Purchases of property, plant and equipment (3 025 300) (253 919) Proceeds on sale of property, plant and - 34 935 equipment Loans advance to employees (28 715) Loans advanced to group companies - (328 688) Interest capitalised to fellow subsidiary (454 636) - loan Net cash from investing activities (3 508 651) (547 672)
Cash flows from financing activities Repayment of other financial liabilities (1 877 865) (84 852) Finance lease payments (300 824) (74 790) Net cash from financing activities (2 178 689) (159 642) Total cash movement for the year 1 094 282 2 625 576 Cash at the beginning of the year 4 678 891 2 053 315 Total cash at end of the year 5 773 173 4 678 891 COMMENTARY The board presents the audited results for the year ended 31 March 2011. BASIS OF PREPARATION The condensed abridged financial statements of the Group are prepared as a going concern on a historical cost basis. The condensed abridged financial statements conform to International Accounting Standard 34: Interim Financial Reporting, the Listings Requirements of the JSE Limited, and the old Companies Act of South Africa (Act 61 of 1973), as amended. The principal accounting policies, which comply with International Financial Reporting Standards, have been consistently applied in all material respects in the current and comparative period. All new interpretations and standards were assessed and adopted with no material impact, except for IAS1: Presentation of Financial Statements that required some modified disclosures and terminology. The Group`s auditors, PKF Pretoria, have audited these results and a copy of their unmodified opinion on this set of condensed financial information is available for inspection at the company`s registered office. RESULTS Sales revenue increased by R10 708 000 representing a 13% increase when compared to the prior period. Volumes increased in the period under review by 21%, this was in line with the strategy to change the packaging used for tomato sauce from glass to plastic which allowed the savings to be passed on to the customer. Tomato sauce volumes increased by more than 25% in this period. The planned investments to increase capacity on the tomato sauce line by 40% and adjustments to fill in plastic bottles were only achieved late in the year under review. This delay on the planned increase in production capacity and decision to temporally increase product costs to protect shelf space contributed to increased expenses from October to January 2011. In addition, the Company could not deliver all the orders placed on the factory in time during the festive period of November/December 2010. This has however been corrected and 40% more volumes on tomato sauce are being produced without incurring additional production costs. The planned investment to increase product on the veri peri line by 60% and automate the filling is also fully operational. Expenses consisting of raw material, fuel costs, electricity, staff wages and co-operative advertising increased by 23% in order to defend shelf space. Gross Profit improved by 3% which is attributed to the improved controls on planned costs and the increase in sales of added value range of products. Production expansion costs for the year under review were funded from cash from operations. Finished stock holdings were reduced by increasing production capacity on tomato sauce and veri peri. A new agreement with Landbank has been entered into converting our "draw down" overdraft facility to a loan repayable over seven years which commenced in October 2010. More than the required monthly repayments have been made in order to reduce costs of borrowing. Operating profits of the company have improved significantly and gross margins are in-line with the industry sector. Once off expenditure, which included a further write off of bad debit of R834K and legal expenses (dealing with matters arising from prior years) of R734K diluted net profit. The results have however been negatively impacted by a once-off provision of approximately R2 million against loans receivable. Whilst the provision has been raised, the directors will continue to pursue the recoverability of this loan. SEGMENTAL ANALYSIS No segmental analysis has been presented as the company operates primarily within South Africa. The Group will adopt the IFRS 8: Operating Segments standard for the first time in the 2011 financial statements. Customer Analysis Customer A 42% of Revenue Customer B 27% of Revenue ACQUISITIONS AND DISPOSALS There were no acquisitions or disposals during the year under review. ISSUE OF SHARES There were no share issues during the year under review. CHANGE IN BOARD OF DIRECTORS Buhle Mthethwa was appointed as an Independent Non-Executive Director of the company on 1 November 2010. No other changes to the board were made during the year under review. DIVIDENDS No dividends were declared during the period. (2010: Nil). PROPOSED DELISTING Ongoing discussions regarding the potential delisting of the Company, as announced on SENS on 31 December 2010, which noted that a proposed offer to minorities be made by AH-Vest by way of a repurchase of shares continue. FUTURE PROSPECTS The following new products have been launched into the market late in the year under review: * 250ml Penny Saver range of sauces; * Single servings of Veri Peri; and * Buy `n Braai 50g sachets. A new range of flavoured tomato paste single serving sachets is planned to be launched in July 2011. Additional production capacity required for the sales demand is in place and producing. A budget to promote the brands to the target markets has been established and a cooking show has been produced to allow customers the opportunity to learn how to prepare meals with AH-Vest`s products. The focus for the coming year will be on effective brand communication and to promote trial purchases using single serve sachets and thereby making added value sauces more accessible to the emerging market. SUBSEQUENT EVENTS There were no subsequent events that require disclosure at the date of this announcement. Johannesburg 30 June 2011 Directors: Executive Directors: MT Pather (CEO); M Hill (FD); Non-Executive Directors: P Mariemuthu (Chairman); MD Mawere; B Mthethwa; R Manning; A Gonsalves Registered address Arcay House, No. 3 Anerley Road, Parktown 2193 Designated Advisors Transfer secretaries Arcay Moela Sponsors Computershare Investor Services (Pty) Ltd (Proprietary) Limited Auditors Company Secretary PKF (Pta) Inc. Arcay Client Support (Proprietary) Limited Date: 30/06/2011 17:30:01 Supplied by www.sharenet.co.za 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 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
