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AHL - AH-Vest Limited - Reviewed consolidated condensed results for the year ended 31 March 2012 AH-VEST LIMITED (Incorporated in the Republic of South Africa) (Registration number 1989/000100/06) Share code: AHL ISIN code: ZAE000129177
REVIEWED CONSOLIDATED CONDENSED RESULTS FOR THE YEAR ENDED 31 MARCH 2012 Condensed statement of financial position As at As at 31 March 2012 31 March 2011
R R Assets Non-current Assets 13 847 812 15 704 204 Property, Plant & Equipment 12 565 157 14 143 998 Deferred tax 450 000 450 000 Intangible asset 832 655 1 110 206 Current Assets 34 800 064 28 435 725 Inventories 16 063 276 10 267 639 Advances paid to employees 17 775 28 715 Trade & other receivables 15 615 905 12 366 198 Cash & cash equivalents 3 103 108 5 773 173 Total Assets 48 647 876 44 139 929 Equity and Liabilities Capital and Reserves 19 096 075 15 439 874 Share capital 21 293 071 21 293 071 Revaluation Reserves 4 688 610 4 688 610 Accumulated loss (6 885 606) (10 541 807) Non current liabilities 11 407 586 11 845 571 Finance lease obligation 193 811 442 484 Other financial liabilities 11 213 775 11 305 986 Operating lease liability - 97 101 Current liabilities 18 144 215 16 854 484 Other financial liabilities 1 195 418 1 169 470 Finance lease obligation 248 673 286 266 Trade and other payables 16 650 245 15 398 748 Operating lease liabilities 49 879 Total Equity and Liabilities 48 647 876 44 139 929 Net asset value per share (cents) 18.73 15.14 Tangible net asset value per share 17.91 14.05 (cents) Share in issue at year end 101 973 333 101 973 333 Condensed statement of comprehensive income Year Year ended ended
31 March 2012 31 March 2011 R R Revenue 106 639 879 88 284 479 Cost of Sales (64 859 794) (55 741 723) Gross profit 41 780 085 32 542 756 Other income 280 405 134 026 Operating expenses (37 192 244) (34 264 594) Operating profit before finance 4 868 246 (1 587 812) costs Investment revenue 9 783 474 423 Finance costs (1 221 828) (1 334 760) Profit/(Loss) before tax 3 656 201 (2 448 149) Taxation - Profit/(Loss) for the period 3 656 201 (2 448 149) Attributed to: Equity holders of the company 3 656 201 (2 448 149) Minority interest - - Headline earnings/(loss) calculation: Profit/(Loss) attributed to equity 3 656 201 (2 448 149) holders of the company Adjusted for: - - Impairment of PPE 324 033 Headline earnings/(loss) 3 980 234 (2 448 149) Weighted average shares in issue 101 973 333 101 973 333 Diluted weighted average shares in 101 973 333 101 973 333 issue Earnings/(Loss) per share (cents) Earnings/(Loss) per share 3.59 (2.40) Diluted earnings/(loss) per share 3.59 (2.40) Headline (earnings/(loss) per 3.90 (2.40) share Diluted Headline earnings/(loss) 3.90 (2.40) per share Adjusted headline earnings/(loss) 3.90 (2.40) per share Statement of changes in equity Share Share Total share Capital premium capital R R R Balance at 01 April 2010 1 019 734 20 273 337 21 293 071 Changes in equity Total comprehensive - - - income for the year Total changes - - - Balance at 01 April 2011 1 019 734 20 273 337 21 293 071 Changes in equity - - - Total comprehensive loss - - - for the year Total changes - - - Balance at 31 March 2012 1 019 734 20 273 337 21 293 071 Statement of changes in equity (continued) Revaluation Accumulated Total Equity
reserve Loss R R R Balance at 01 April 2010 4 688 610 (8 093 658) 17 888 023 Changes in equity Total comprehensive loss - (2 448 149) (2 448 149) for the year Total changes - (2 448 149) (2 448 149) Balance at 01 April 2011 4 688 610 (10 541 807) 15 439 874 Changes in equity - - - Total comprehensive income - 3 656 201 3 656 201 for the year Total changes - 3 656 201 3 656 201 Balance at 31 March 2012 4 688 610 (6 885 606) 19 096 075 Condensed statement of cash flows Year ended Year ended 31 March 31 March
2012 2011 R R Cash flows from operating activities
Cash generated from operation (569 013) 7 641 959 Interest income 9783 474 423 Finance costs (1 221 828) (1 334 760) Net cash from operating activities (1 781 058) 6 781 622 Cash flows from investing activities Purchases of property, plant and (547 418) (3 025 300) equipment Proceeds on sale of property, plant - - and equipment Loans advance to employees 10 940 (28 715) Loans advanced to group companies - - Interest capitalised to fellow - (454 636) subsidiary loan Net cash from investing activities (536 478) (3 508 651) Cash flows from financing activities Repayment of other financial (66 263) (1 877 865) liabilities Finance lease payments (286 266) (300 824) Net cash from financing activities (352 529) (2 178 689)
Total cash movement for the year (2 670 065) 1 094 282 Cash at the beginning of the year 5 773 173 4 678 891 Total cash at end of the year 3 103 108 5 773 173 COMMENTARY The board is pleased to present the audited results for the year ended 31 March 2012. BASIS OF PREPARATION The condensed abridged financial statements of the Group are prepared on a going concern basis. The condensed abridged financial statements conform to International Accounting Standard 34: Interim Financial Reporting, the Listings Requirements of the JSE Limited, and the Companies Act, 2008 (Act 71 of 2008). 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. These condensed consolidated results have been reviewed by our auditors PKF (Gauteng) Inc. The review was conducted in accordance with ISRE 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". They have issued their unmodified review opinion on the group`s annual financial statements, a copy of which is available for inspection at the registered office of the company. The results have been prepared by the Financial Director, Mr M Hill. RESULTS Sales revenue increased by R18 355 400, representing a 20.8% increase when compared to the prior period. Volumes increased in the period under review by 19% The Company also invested in capacity on its veri peri line and automated the filling process. The veri peri product also won the Product of the Year in the sauce category. Whilst our operating expenses increased by 8% from the previous year, the proportion of these operating costs in relation to revenue actually decreased by 4% from the previous year. We attribute this to non-recurring expenses in the previous year. Gross Profit improved by 2%from the year ended March 2011 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. Operating profits of the company have improved significantly and gross margins are moving in line with the industry sector. This improved performance has also flowed to the bottom line, with fewer once off costs impacting the business. However, we are still working to improve further our Net Profit ratio, in line with industry norm. The group continues to experience cash flow restraints associated with such high growth levels, whilst at the same time continuing to reduce its loan from the Land Bank. The board of directors are considering options to fund the growth of the business. SEGMENTAL ANALYSIS No segmental analysis has been presented as the company operates primarily within one product segment, namely sauces and one geographical segment, namely South Africa. Analysis of revenue by major customer: Revenue from the group`s two principal customers, which individually represent over 10% of revenue is as follows: 2012 2011 Customer A 49% 42% Customer B 31% 27% ACQUISITIONS AND DISPOSALS There were no major acquisitions or disposals of plant and equipment during the year under review. Subsequent to year end the Company entered into an agreement to dispose of its head office in anticipation of relocating both its factory and head office into one location by January 2013, when its factory lease in Tarlton comes to an end. A 10 year lease agreement has been signed for the new custom built factory and the company is planning to upgrade its plant and capacity at the same time as the factory relocation. The rationale for the relocation was to relocate the business closer to the Company`s customers and their distribution centres. The increase in rental costs will mostly be off-set by reduced distribution costs, whilst at the same time upgrading both the plant and improving capacity. ISSUE OF SHARES There were no share issues during the year under review. CHANGE IN BOARD OF DIRECTORS Buhle Mthethwa changed her role to Independent Non-Executive Chairperson of the company during the year under review pursuant to the resignation of the Non-executive chairman. The recent year saw a number of board changes and a change toward appointing additional independent directors to the board of AH- Vest. Details of the resignations and appointments of directors during the year under review and to the date of this announcement are set out below. Director Date appointed Date resigned S Naidoo 02 February 2012 S Soni 29 February 2012 P Mariemuthu 22 August 2008 08 November 2011 MD Mawere 22 August 2008 30 September 2011 R Manning 22 August 2008 23 January 2012 A Gonsalves 22 August 2008 18 July 2011 DIVIDENDS No dividends were declared during the period. (2011: Nil). FUTURE PROSPECTS The focus for the New Year will be to expand our tomato sauce range. We will launch an unpreserved premium tomato sauce packed in glass and we intend bringing our single serve sachets "in-house". This is in line with our strategy to produce and package our products closer to our trade customers` distribution centres. The planned factory move will require a "stock build" to ensure that we defend our shelf space and maintain our service levels to our trade customers. This will impact our cash flow and the directors are dealing with an increased working capital facility. The directors are optimistic about the planned factory move and this is expected to impact the business positively in the future. A new range of flavoured tomato paste single serving sachets was launched in July 2011. The Company has experienced growing sales demand for these new products. SUBSEQUENT EVENTS Other than the disposal of the head office property as previous disclosed and the signing of the new lease agreement, there were no subsequent events that require disclosure at the date of this announcement. M Pather Johannesburg 22 June 2012 Directors: Executive Directors: MT Pather (CEO); M Hill (FD); Independent Non-Executive Directors: B Mthethwa (Chairman); S Soni; S Naidoo. Registered address Arcay House, No. 3 Anerley Road, Parktown 2193 Designated Advisors Transfer secretaries Arcay Moela Sponsors Computershare Investor Services (Proprietary) Limited (Pty) Ltd Auditors Company Secretary PKF (Gauteng) Inc. Arcay Client Support (Proprietary) Limited
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