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BIO - BioScience Brands Limited - Unaudited results for the six months ended

Release Date: 02/03/2012 11:35
Code(s): BIO
Wrap Text

BIO - BioScience Brands Limited - Unaudited results for the six months ended 31 December 2011 BioScience Brands Limited (Incorporated in the Republic of South Africa) (Registration number: 2005/005805/06) ("BioScience Brands" or "the company") ISIN Code: ZAE000115036 Share code: BIO UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2011 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2011 Unaudited Unaudited Audited 31 December 31 December 30 June 2011
2011 2010 R R R ASSETS Non-current assets 39 466 457 50 002 242 39 401 277 Plant and equipment 468 167 760 889 543 032 Intangible assets 37 232 683 48 159 016 37 232 683 Deferred tax 1 765 607 1 082 337 1 625 562
Current assets 15 757 460 14 729 928 12 382 447 Inventories 7 180 748 7 360 408 4 574 525 Trade and other receivables 8 374 784 7 084 844 7 738 342 Cash and cash equivalents 201 928 284 676 69 580 Total assets 55 223 917 64 732 170 51 783 724 EQUITY AND LIABILITIES Total equity 17 700 005 34 165 049 17 922 031 Issued capital 262 136 262 136 262 136 Share premium 113 138 607 113 138 607 113 138 607 Accumulated loss (95 700 738) (79 235 694) (95 478 712) Non-current liabilities 3 475 094 - 2 037 328 Loans and borrowings 3 475 094 - 2 037 328
Current liabilities 34 048 818 30 567 121 31 824 365 Taxation payable 2 220 826 1 928 433 2 220 826 Trade payables 6 851 673 8 375 634 5 124 812 Other payables and accruals 10 771 439 10 319 839 10 669 666 Short term portion of loans and 10 123 490 748 277 3 672 594 borrowings Bank overdraft 4 081 390 9 194 938 10 136 467
Total equity and liabilities 55 223 917 64 732 170 51 783 724 CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2011 Unaudited Unaudited Audited
6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2011 2011 2010
R R R Revenue 12 235 205 19 471 709 29 762 219 Cost of sales (5 827 138) (9 286 340) 16 402 250)
Gross profit 6 408 067 10 185 369 13 359 969 Operating expenses 8 711 578) (13 087 900) 23 219 510) Impairment of intangible asset - (6 500 000) (14 926 333) Other income 3 009 240 - - Operating profit (loss) 705 729 (9 402 531) (24 785 874) Net financing costs (1 067 800) (694 381) (1 833 092)
Loss before taxation (362 071) (10 096 912) (26 618 966) Taxation 140 045 - 279 036 Loss and comprehensive loss (222 026) (10 096 912) (26 339 930) for the period CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2011 Unaudited Unaudited Audited
6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2011 2010 2011
R R R Cash flows (used in) from (1 675 747) 183 304 (8 447 995) operating activities Cash flows (used in) from (25 490) 39 842 2 552 871 investing activities Cash flows from (used in) 7 888 662 (17 838) 4 943 807 financing activities
Net increase (decrease) in cash 6 187 425 205 308 (951 317) and cash equivalents Cash and cash equivalents (10 066 (9 115 570) (9 115 570) at beginning of period 887) Cash and cash equivalents at end (3 879 462) (8 910 262) 10 066 887) of period CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2011 Unaudited Unaudited Audited 6 months 6 months 12 months ended ended ended
31 31 December 30 June 2011 December 2010 2011 R R R
Balance at beginning of the 17 922 44 261 961 44 261 961 period 031 Comprehensive loss for the (222 026) (10 096 (26 339 930) period 912) Balance at end of the 117 700 34 165 049 17 922 031 period 005 The board presents the results for the interim reporting period ended 31 December 2011. BASIS OF PREPARATION AND ACCOUNTING POLICIES The consolidated financial results of the company and its subsidiaries (together referred to as the "group") has been prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS), the AC 500 standards as issued by Accounting Practices Board, the Companies Act of South Africa, 2008, the disclosure requirements of the Listing Requirements of the JSE Limited, and the information as required by IAS 34: Interim Financial Reporting. The condensed consolidated financial statements were prepared under the supervision of the financial director, R Jubber. BioScience Brands has adopted all the statements and interpretations issued and effective during the current period by the International Accounting Standards Board ("IASB"). The accounting policies adopted are in terms of IFRS and are consistent with those applied in the previous financial year. The Company`s auditors have not reviewed or audited these results for the six months ended 31 December 2011. EARNINGS, HEADLINE EARNINGS AND NET ASSET VALUE PER SHARE Unaudited Unaudited Audited 6 months 6 months 12 months
ended ended ended 31 December 31 December 30 June 2011 2011 2010 Cents per Cents per Cents per
share share share Loss per share Basic and diluted (0.01) (0.39) (1.00)
Headline loss per share Basic and diluted (0.01) (0.14) (0.43) Net asset value per share 0.68 1.30 0.68 Weighted average shares in issue (`000) Basic and diluted 2 621 363 2 621 363 2 621 363
R R R Calculation of headline earnings: Comprehensive loss for the (222 026) (10 096 912) (26 339 930) period Adjustments for: (Profit) loss on disposal of - (28 179) 41 760 property, plant and equipment Impairment of intangible asset - 6 500 000 14 926 333 Headline(loss)/profit for the (222 026) (3 625 091) (11 371 837) period COMMENTARY BioScience Brands has responded to a difficult consumer environment through a far reaching restructuring which significantly reduced the cost base of the business, whilst the new business capability has been enhanced following the implementation from 1 April 2011 of the Management Agreement concluded between BioScience and Akacia Heathcare (Pty) Ltd ("Akacia") as announced on SENS on 18 February 2011. The six months under review were significant in that they follow the initial implementation phase of the Akacia management contract and includes the listing of the new Bioharmony Ultimate range with all major retail customers. Sales during the reporting period have improved by 19% compared to the first six months of 2011, with a concurrent improvement in gross profit percentage and a reduction in operating expenses of R4,4m. Despite the improvements in these trading activities, cashflow remains constrained and BioScience Brands is grateful to Akacia for the support received in managing these constraints as reflected in the increase in short term borrowings. Over and above the operational restructuring, the Board has undertaken initiatives to redress legacy issues remaining from pre-2008 when the company was known as Wellco Health Limited ("Wellco"). A favourable arrangement with Wellco`s bankers has been reached resulting in a R3m reduction in the amount owing with structured repayment terms, reflected in a reduction in the bank overdraft of R6m and a corresponding increase in borrowings of R3m. The board is constantly exploring working capital opportunities, and has initiated a programme to streamline and simplify trading activities as currently the group trades with its customers and suppliers through multiple subsidiaries. A segmental analysis has not been prepared as the group does not have more than one segment and operates within South Africa. DIRECTOR APPOINTMENTS S Schutz`s appointment as a non-executive director was ratified at the Company`s Annual General Meeting held on 10 February 2012. On 1 March 2012, RP Jubber was appointed to the board as the Financial Director. CONTINGENCIES AND COMMITMENTS Other than a 2006 claim for R 1 425 417 by a previous supplier against Bioharmony, which the directors believe will be successfully defended, there are no other contingencies and commitments that the directors are aware of. DIVIDENDS No dividends have been declared for the period under review. ACQUISITIONS, DISPOSALS AND ISSUES OF SHARES FOR CASH During the period under review, there were no acquisitions, disposals or issue of shares. FUTURE PROSPECTS As reported above, the outsourcing of BioScience Brands` operational functions to Akacia are starting to have a positive impact on sales, in terms of cover and effectiveness, gross profit, as well as the overhead costs of the business. This together with an improved retail trading environment will allow BioScience to finally complete the turnaround from its legacy issues. By order of the Board MG Allan RP Jubber Chief Executive Officer Financial Director 2 March 2012 Johannesburg Company Secretary Statucor (Pty) Ltd Registered Office and Business Address 4 Brewery Street, Isando, Gauteng, 1609 PO Box 195, Isando, 1600 Directors JJ Fenster* (Chairman), MG Allan (Chief Executive Officer), RP Jubber (Financial Director), Y Bhayat*, S Schutz*. (*Non-executive) Designated Advisor Transfer Office PricewaterhouseCoopers Corporate Computershare Investor Services Finance (Pty) Ltd (Pty) Ltd Date: 02/03/2012 11:35:01 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.

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