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WTL - William Tell - Unaudited Results for the six months ended

Release Date: 23/02/2012 17:05
Code(s): WTL
Wrap Text

WTL - William Tell - Unaudited Results for the six months ended 31 December 2011 WILLIAM TELL HOLDINGS LIMITED (Incorporated in the Republic of South Africa) (Registration Number: 2004/030045/06) Share Code: WTL ISIN: ZAE000098133 ("William Tell" or "the Group") UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2011 Summarised Consolidated Statements Audited of Comprehensive Income Unaudited Unaudited December December June 2010 2010 2011
R`000 R`000 R`000 Revenue 103 933 92 832 181 068 Cost of sales (86 444) (71 370) (150 601) Gross profit 17 489 21 462 30 467 Other income 2 373 270 681 Administrative and other operating (20 883) (16 473) (37 920) expenses Operating profit / (loss) (1 021) 5 259 (6 772) Investment Income 922 658 922 Foreign exchange loss (367) (91) 27 Interest paid (2 847) (3 386) (5 907) Profit / (loss) before taxation (3 313) 2 440 (11 730) Taxation 1 148 (756) 3,338 Profit / (loss) for the period (2 164) 1 684 (8 392) Depreciation and amortisation for 5 197 5 579 10 449 the period Basic and diluted basic earnings / (1.7) 1.3 (6.7) (loss) per share (cents) Headline and diluted headline (1.5) 1.3 (6.7) earnings / (loss) per share (cents) Reconciliation of basic earnings / (loss) to headline earnings / (loss) Basic earnings / (loss) (2 164) 1 684 (8 392) Adjusted by the after tax effect of the following: - Loss/(Profit) on the sale of 296 (27) 3 property, plant and equipment - Impairment of property, plant and - - - equipment Headline earnings / (loss) (1 868) 1 657 (8 389) Number of ordinary shares in 125 000 125 000 125 000 issue(`000) Weighted average number of 125 000 125 000 125 000 shares(`000) Summarised Consolidated Statements Unaudited Unaudited Audited of Changes in Equity December December June 2011 2011 2010 R`000
R`000 R`000 Share Capital Balance at the beginning of the year 1 250 1 250 1 250 Shares issued during the period - - - Balance at the end of the period 1 250 1 250 1 250 Share premium Balance at the beginning of the year 179 265 179 265 179 265 Share issue expenses - - - Balance at the end of the period 179 265 179 265 179 265 Accumulated profit Balance at the beginning of the year 1 918 10 310 10 310 (Loss)/Profit for the period (2 164) 1 684 (8 392) (246) 11 994 1 918 Summarised Consolidated Statements Unaudited Unaudited Audited of Financial Position December December June 2011 2011 2010 R`000 R`000 R`000
ASSETS Non-current assets 214 862 217 859 217 990 Property, plant and equipment 210 915 217 844 215 645 Intangible assets 43 15 52 Deferred taxation 3 904 - 2 293 Current assets 66 963 85 367 95 078 Inventories 23 848 29 563 35 308 Trade and other receivables 30 882 31 711 34 530 Cash and cash equivalents 12 233 24 093 25 240 Non-current assets held for sale - - - 281 825 303 226 313 068 EQUITY & LIABILITIES Capital & reserves 180 269 192 509 182 433 Share capital 1 250 1 250 1 250 Share premium 179 265 179 265 179 265 Accumulated profit/(loss) (246) 11 994 1 918
Non-current liabilities 47 951 59 152 57 777 Interest bearing borrowings 24 417 43 852 33 770 Deferred Taxation - 3 524 - Deferred Income 23 534 11 776 24 007 Current liabilities 53 605 51 565 72 858 Trade and other payables 30 774 29 043 45 095 Interest bearing borrowings 19 637 20 644 23 496 Provisions 2 282 1 282 2 112 Current taxation payable 912 596 908 281 825 303 226 313 068
Net asset value per share (cents) 144 154 146 Capital expenditure for the period 796 1 615 4 588 (R`000) Summarised Consolidated Cash Flow Unaudited Unaudited Audited Statements December December June 2011 2011 2010 R`000 R`000 R`000 Net cash generated by operations 3 308 12 581 12 793 Net finance costs (1 925) (2 728) (4 958) Taxation paid (383) (4 961) (5 179) Cash flow from operating activities 1 001 4 892 2 656
Cash flow from investing activities (796) 15 386 25 999 Cash flow from financing activities (13 212) (7 539) (14 769)
Movement in cash & cash equivalents (13 007) 12 739 13 886 Cash & cash equivalents at the 25 240 11 354 11 354 beginning of the year Cash & cash equivalents at the end 12 233 24 093 25 240 of the period Segment report This is a single segment group and no segmental reporting is provided. COMMENTARY HIGHLIGHTS Year on year revenue growth for the 6 months to 31 December 2011 compared to 6 months to 31 December 2010 * 12% revenue growth * Settled R13.2m debt OVERVIEW OF THE BUSINESS SIX MONTH OPERATIONAL REVIEW Revenue showed growth of 12% while gross margins declined by 10%. The retraction in the gross margin was attributable to higher energy and transport costs along with the higher raw material processing costs experienced due to critical plant breakdowns during July. Operating profit decreased by R5m due to higher administrative and other operating expenses. Salaries and wages was the largest contributor to the increased expenses. Salaries and wages increased on average by 8%. This combined with the changes in senior management and along with the new positions being created to assist with operational requirements led to the increase. Inventories reduced by approximately R6m on the back of strong sales. Management of inventory levels is seen as a critical function within the Group going forward. Debtors increased marginally by R1m compared with the same period last year. Management is exercising tight control over debtor collections as the conditions within the industry remain tight. A process of insuring the debtors` book was initiated at the end of the period so as to allow the Group to grow without having to incur the quantum of write offs previously experienced. STATEMENT OF FINANCIAL POSITION NOTE ON LIABILITIES Accounting treatment for government grants gets governed by IAS 20 Accounting for Government Grants and Disclosure of Government Assistance. The accounting treatment gets documented in paragraph 17 of the statement "....grants related to depreciable assets are usually recognised in profit and loss over the periods and in the proportions in which depreciation expense on those assets are recognised." The Grant is reflected in the Statement of Financial Position as a non- current liability (Deferred Income) R23.5m where there in fact is no liability to be repaid. Management is of the opinion that the designated accounting treatment of this Grant does not provide a true reflection of the transaction and may be confusing to users of the financial information. PROSPECTS A further tranche of R6.5m of the DTI tax free cash grant is expected before April 2012. Whilst conditions in our sector remain difficult William Tell has embarked on a growth program to accelerate optimisation of production volumes and cost efficiencies. To this end we have initiated a production committee chaired by Mike Borello and a business development committee chaired by Rob Scott. DIRECTORS William Tell now has a strong well-rounded board of directors focused on growth and delivery to all stakeholders. DIVIDENDS In the light of the current market conditions, the directors regard it prudent not to declare an interim dividend. SUBSEQUENT EVENTS No matters which are material to the financial affairs of the group have occurred between the balance sheet date and the date of this report. BASIS OF PREPARATION These summarised consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS"), IAS 34: "Interim Financial Reporting", the AC500 series as issued by the Accounting Practices Board, the South African Companies Act no 71 of 2008, as amended, and the JSE Listings Requirements and was prepared under the supervision of the Financial Director of the Company, Mr. E Badenhorst CA(SA). The principal accounting policies used in the preparation of the unaudited results for the period ended 31 December 2011 are consistent with those applied for the year ended 30 June 2011 and for the six months ended 31 December 2010. BY ORDER OF THE BOARD B P Lok (Chairman), E Badenhorst (Financial Director), A De La Rue*, M Borello*, R Scott*, CD Lok (non-exec) *Independent, non-executive 23 February 2012 REGISTERED ADDRESS: 31 VAN ECK STREET CHAMDOR KRUGERSDORP 1740 DESIGNATED AND CORPORATE ADVISOR: PSG CAPITAL PROPRIETARY LIMITED GROUND FLOOR DM KISCH HOUSE INANDA GREENS BUSINESS PARK 54 WIERDA ROAD WEST WIERDA VALLEY COMPANY SECRETARY: MERCHANTEC CAPITAL 2ND FLOOR NORTH BLOCK HYDE PARK OFFICE TOWER CNR 6TH RD & JAN SMUTS AVENUE HYDE PARK 2196 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 www.williamtellholdings.co.za Date: 23/02/2012 17:05:02 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`). 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