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WTL - William Tell - Audited Results for the 12 Months ended 30 June 2011

Release Date: 19/09/2011 07:44
Code(s): WTL
Wrap Text

WTL - William Tell - Audited Results for the 12 Months ended 30 June 2011 WILLIAM TELL HOLDINGS LIMITED (Registration number 2004/030045/06) Share code: WTL ISIN: ZAE000098133 ("William Tell" or "the Company" or "the Group") AUDITED RESULTS FOR THE 12 MONTHS ENDED 30 JUNE 2011 COMMENTARY HIGHLIGHTS - 30% revenue growth - 4 distribution centres opened - Received R22.6m from government grants - Settled R17.7m debt OVERVIEW OF THE BUSINESS William Tell is a mass producer of wood-based panels. The Group is vertically integrated with all manufacturing operations consolidated on one site in the industrial area of Chamdor in Krugersdorp. Activities range from production of chipboard from wood waste, application of melamine and other decorative surfaces to production of furniture elements and ready to assemble furniture. The integration strategy was expanded through the establishment of seven regional sales outlets between April 2010 and June 2011 covering the major centres in 6 provinces. 12 MONTH OPERATIONAL REVIEW Despite tough trading conditions, we increased market penetration through our new distribution centres and grew revenue by 30%. Gross margins also improved marginally and would have been better had it not been for a breakdown of the chipper in the last month of the year. This disrupted production in the last quarter including non-recurring expenditure of R2.1m. Administrative, sales and marketing expenses increased in line with the increased activity through the distribution centres. We also incurred non- recurring expenditure of R1.8m spent as a result of the resignation of the former MD and termination of the employment of the former CEO and R1.4m on the establishment of the distribution centres. The poor economic conditions had an effect on our customers` ability to pay and it has been necessary to increase the provision for doubtful debts by a further R3.4m. Management has exercised tight controls over debtors collections. During this year we received R22.6m from the DTI, as well as R8m proceeds from assets held for sale as at 30 June 2010. PROSPECTS We are not expecting a substantial increase in demand for our products as market conditions are expected to remain subdued but additional revenues should be generated through the distribution centres. A further tranche of R7.5m of the DTI tax free cash grant is expected before December 2011. DIRECTORS Warwick Lok retired as a director and employee during November 2010. We wish him a happy retirement and thank him for his considerable contribution to the development of the group over the past 17 years. Barry Lok`s contract was terminated in April 2011. We wish him well and thank him for his significant contribution to the group over the past 31 years. Wally Van Coller resigned in June 2011. Clyde Lok was appointed as a non-executive director in April 2011. Johan Diederiks was appointed as CEO in August 2011. Richard McElligott was appointed in September 2011 to the Board and audit committee as an independent non-executive director. DIVIDENDS No dividend is recommended. SUBSEQUENT EVENTS No matters which are material to the financial affairs of the group have occurred between the reporting date and the date of this report. BASIS OF PREPARATION These abridged financial results have been prepared in accordance with International Financial Reporting Standards ("IFRS") and AC 500 standards as issued by the Accounting Practices Board, in particular, IAS 34: Interim Financial Reporting, the South African Companies Act, as amended, and the Listings Requirements of the JSE Limited. The principal accounting policies used in the preparation of the audited results for the period ended 30 June 2011 are consistent with those applied for the year ended 30 June 2010. The financial statements have been prepared under the supervision of the Financial Director Ms N Govender, CA (SA). AUDIT OPINION The abridged financial results for the year ended 30 June 2011 have been audited by the Group`s auditors, BDO South Africa Inc, and the unmodified audit report is available for inspection at the Company`s registered office. NOTICE OF THE ANNUAL GENERAL MEETING Notice is hereby given that the Annual General Meeting of shareholders will be held at 31 Van Eck Street, Chamdor on Wednesday, 16 November 2011 at 09:00, to transact the business stated in the notice of the Annual General Meeting contained in the Integrated Annual Report, which Report is in the process of being prepared and which will be posted to shareholders by no later than 30 September 2011. Abridged Consolidated Statement of Comprehensive Income Audited Audited
R`000 June 2011 June 2010 Revenue 181 068 139 484 Cost of sales (150 601) (117 472) Gross profit 30 467 22 012 681 12 566 Other income Administrative expenses (24 855) (14 653) Sales and marketing expenses (5 068) (1 713) Other operating expenses (7 997) (45 319) Operating loss (6 772) (27 107) Investment income 922 425 Foreign exchange profit/(loss) 27 (21) Interest paid (5 907) (7 198) Loss before taxation (11 730) (33 901) 3 338 13 210 Taxation Loss for the year (8 392) (20 691)
Depreciation and amortisation for the 11 470 11 126 period Basic and diluted loss per share (6,7) (16,6) (cents) Headline and diluted loss per share (6,7) (2,5) (cents)
Reconciliation of basic loss to headline loss Basic loss (8 392) (20 691) Adjusted by the after tax effect of the following: - Loss/(Profit) on the sale of 3 (7 447) property, plant and equipment - Impairment of property, plant and - 25 026 equipment Headline loss (8 389) (3 112) Number of ordinary shares in 125 000 125 000 issue (`000) Weighted average number of 125 000 125 000 shares (`000) Abridged Consolidated Statement of Changes in Equity Audited Audited R`000 June 2011 June 2010 Share capital Balance at the beginning of the year 1 250 1 250 Balance at the end of the year 1 250 1 250 Share premium Balance at the beginning of the year 179 265 179 265 Balance at the end of the year 179 265 179 265 Accumulated profit and other reserves Balance at the beginning of the year 10 310 31 001 Loss for the year (8 392) (20 691) 1 918 10 310 Abridged Consolidated Statement of Financial Position Audited Audited R`000 June 2011 June 2010 ASSETS Non-current assets 217 990 221 538 Property, plant and equipment 215 645 221 506 Intangible assets 52 32 Deferred taxation 2 293 - 95 078 68 376 Current assets Inventories 35 308 27 051 Trade and other receivables 34 530 29 971 Cash and cash equivalents 25 240 11 354 Non-current assets held for sale - 8 000 313 068 297 914 EQUITY AND LIABILITIES Capital and reserves 182 433 190 825 Share capital 1 250 1 250 Share premium 179 265 179 265 Accumulated profit 1 918 10 310 Non-current liabilities 57 777 59 800 Interest-bearing borrowings 33 770 54 688 Deferred taxation - 2 151 Deferred income 24 007 2 961 Current liabilities 72 858 47 289 Trade and other payables 45 095 23 775 Deferred income 1 247 281 Interest-bearing borrowings 23 496 17 347 Provisions 2 112 906 Current taxation payable 908 4 980 313 068 297 914 Net asset value per share (cents) 146 153 Capital expenditure for the period 4 629 13 522 (R`000) Abridged Consolidated Cash Flow Statement Audited Audited R`000 June 2011 June 2010 Net cash generated by operations 12 793 2 809 Net finance costs (4 958) (6 794) Taxation paid (5 179) (52) Cash flow from operating activities 2 656 (4 037) Cash flow from investing activities 25 999 34 857 Cash flow from financing activities (14 769) (34 061) Movement in cash and cash equivalents 13 886 (3 241) Cash and cash equivalents at the 11 354 14 595 beginning of the year Cash and cash equivalents at the end 25 240 11 354 of the year Segmental report This is a single segment group and no segmental reporting is provided. BY ORDER OF THE BOARD R B Patmore (Chairman)*, J Diederiks (Chief Executive Officer), N Govender (Financial Director), CD Lok**, N de Winnaar, M G Meehan* R B McElligott* *Independent, non-executive ** Non-executive 19 September 2011 REGISTERED ADDRESS: 31 Van Eck Street Chamdor Krugersdorp 1740 COMPANY SECRETARY: Sirkien van Schalkwyk No 1 Carlsberg 430 Nieuwenhuyzen Street Erasmuskloof, 0048 DESIGNATED AND CORPORATE ADVISOR: PSG Capital (Proprietary) Limited Ground Floor, DM Kisch House Inanda Greens Business Park 54 Wierda Road West Wierda Valley Sandton 2196 TRANSFER SECRETARIES: Computershare Investor Services (Proprietary) Limited Ground Floor 70 Marshall Street Johannesburg, 2001 (P O Box 61051, Marshalltown, 2107) REGISTERED AUDITORS: BDO South Africa Inc. 13 Wellington Road Parktown 2193 Date: 19/09/2011 07:44:02 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.

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