Wrap Text
Unaudited results for 6 months ended 31 December 2012
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 2012
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2012
Unaudited Unaudited Audited
31 December 2012 31 December 2011 30 June 2012
R R R
ASSETS
Non-current assets 24 563 163 39 466 457 37 944 572
Plant and equipment 401 766 468 167 393 095
Intangible assets 22 388 511 37 232 683 35 732 938
Deferred tax 1 772 886 1 765 607 1 818 539
Current assets 9 211 860 15 757 460 13 227 017
Inventories 3 257 321 7 180 748 5 708 267
Trade and other receivables 5 908 227 8 374 784 7 452 671
Cash and cash equivalents 46 312 201 928 66 079
Total assets 33 775 023 55 223 917 51 171 589
EQUITY AND LIABILITIES
Total equity (2 342 702) 17 700 005 13 366 235
Issued capital 291 106 262 136 262 136
Share premium 116 006 578 113 138 607 113 138 607
Share based payments reserve (603 248) 1 638 352
Accumulated loss (118 037 138) (95 700 738) (101 672 860)
Non-current liabilities 6 279 789 3 475 094 6 519 223
Loans and borrowings 6 279 789 3 475 094 6 519 223
Current liabilities 29 837 936 34 048 818 31 286 131
Taxation payable 2 585 650 2 220 826 1 989 445
Trade payables 6 783 045 6 851 673 6 843 478
Other payables and accruals 14 602 179 10 771 439 15 977 673
Short term portion of loans and borrowings 2 169 262 10 123 490 2 450 532
Bank overdraft 3 697 800 4 081 390 4 025 003
Total equity and liabilities 33 775 023 55 223 917 51 171 589
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2012
Unaudited Unaudited Audited
6 months ended 6 months ended 12 months ended
31 December 2012 31 December 2011 30 June 2012
R R R
Revenue 8 365 634 12 235 205 24 515 103
Cost of sales (4 194 268) (5 827 138) (12 009 939)
Gross profit 4 171 366 6 408 067 12 505 164
Operating expenses (8 876 943) (8 711 578) (18 549 710)
Impairment of intangible asset (13 344 427)
Share-based payments expense (655 341) (1 638 352)
Other income 3 009 240 3 431 838
Operating (loss) profit (18 705 345) 705 729 (4 251 060)
Net financing costs (1 315 635) (1 067 800) (2 136 065)
Loss before taxation (20 020 980) (362 071) (6 387 125)
Taxation 3 656 702 140 045 192 977
Loss and comprehensive loss for the period (16 364 278) (222 026) (6 194 148)
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2012
Unaudited Unaudited Audited
6 months ended 6 months ended 12 months ended
31 December 2012 31 December 2011 30 June 2012
R R R
Cash flows from (used in) operating activities 937 574 (1 675 747) 981 316
Cash flows (used in) from investing activities (109 434) (25 490) 1 866 814
Cash flows (used in) from financing activities (520 704) 7 888 662 3 259 833
Net increase in cash and cash equivalents 307 436 6 187 425 6 107 963
Cash and cash equivalents at beginning of period (3 958 924) (10 066 887) (10 066 887)
Cash and cash equivalents at end of period (3 651 488) (3 879 462) (3 958 924)
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2012
Unaudited Unaudited Audited
6 months ended 6 months ended 12 months ended
31 December 2012 31 December 2011 30 June 2012
R R R
Balance at beginning of the period 13 366 235 17 922 031 17 922 031
Issue of share capital 2 896 940
Share-based payments reserve created (2 241 599) 1 638 352
Comprehensive loss for the period (16 364 278) (222 026) (6 194 148)
Balance at end of the period (2 342 702) 17 700 005 13 366 235
The board presents the results for the interim reporting period ended 31 December 2012.
1. BASIS OF PREPARATION AND ACCOUNTING POLICIES
The consolidated financial results of the company and its subsidiaries (together referred to as the "group") have
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
2012.
2. EARNINGS, HEADLINE EARNINGS AND NET ASSET VALUE PER SHARE
Unaudited Unaudited Audited
6 months ended 6 months ended 12 months ended
31 December 2012 31 December 2011 30 June 2012
Cents per share Cents per share Cents per share
Loss per share
- Basic and diluted (0.55) (0.01) (0.23)
Headline loss per share
- Basic and diluted (0.10) (0.01) (0.24)
Net asset value per share (0.08) 0.68 0.51
Net tangible asset value per share (0.85) (0.75) (0.85)
Weighted average shares in issue ('000) (Basic and diluted) 2 995 315 2 621 363 2 719 510
Shares in issue at period end ('000) (Basic and diluted) 2 911 057 2 621 363 2 621 363
R R R
Calculation of headline earnings:
Comprehensive loss for the period (16 364 278) (222 026) (6 194 148)
Adjustments for:
Loss on disposal of property, plant and equipment 1
Profit on disposal of intangible asset (420 379)
Impairment of intangible asset 13 344 427
Headline(loss)/profit for the period (3 019 851) (222 026) (6 614 526)
3. COMMENTARY
During the period under review, BioScience continued its strategy to correct balance sheet weaknesses.
Several of the actions pursued were at an advanced stage at period end, but had not yet been finalised and
thus could not be accounted for. In addition, BioScience continues to reflect Wellco legacy liabilities on its
balance sheet.
Specifically, two entities that were either not trading or trading at extremely low levels were liquidated in July
2012 but the effects have not been raised to balance sheet as the liquidation process is still in process.
Additionally, a capital gains tax provision carried at R4,3 million was finalised and assessed at R0,4 million.
In the year under review, BioScience took the view that the vitamin and supplement sectors have grown
increasingly distinct and that the synergies which existed between these sectors have been largely eroded.
This prompted BioScience to review its portfolio and the decision was made to sell the Bioharmony brand,
allowing the company to focus on the supplement range.
A sale agreement was concluded and announced on SENS on 11 December 2012; the transaction had an
effective date of 1 February 2013. The effect is that, as with the above, the positive impact of the sale as well
as a R2,0 million profit impact as a result of a reduction in secured liabilities negotiated as part of the release of
security held over the Bioharmony brand, are post balance sheet events and not shown. However the sale
value resulted in an impairment of brand value of R13,3 million which has been reflected in the results for the
period ended 31 December 2012.
Although the continued losses affect owners' equity, as described, the statements do not reflect the positive
impact of the actions undertaken, nor the opportunity to settle legacy Wellco liabilities. This has resulted in
negative equity at balance sheet date.
Sales were down overall, but were particularly lower within the Bioharmony range which is down 42%. Muscle
Science sales fell by 11%, partly due to stock shortages in the last quarter, but new listings at national retailers
showed good growth. Gross profit percentage and operating expenditures in line with the prior period.
A segmental analysis has not been prepared as the group does not have more than one segment and operates
within South Africa.
4. DIRECTOR APPOINTMENTS
M Allan, the CEO, resigned with effect from 11 January 2013; J Fenster, the Chairman, is acting in the role of
CEO.
5. CONTINGENCIES AND COMMITMENTS
Other than a 2006 claim for R1 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.
6. DIVIDENDS
No dividends have been declared for the period under review.
7. ACQUISITIONS, DISPOSALS AND ISSUES OF SHARES
A sale agreement of the Bioharmony brand for R12 million plus stock was concluded on 11 December 2012,
with an effective date of 1 February 2013.
On 26 September 2012, 289,694,044 shares were issued to Akacia Healthcare (Pty) Ltd in terms of the
management agreement approved by shareholders on 27 February 2012.
8. PROSPECTS
Shareholders are referred to the SENS announcement on 4 March 2013 where it was announced that
BioScience is in negotiations with third parties to purchase the Muscle Science business and related assets.
Negotiations are still on-going and shareholders will be updated in due course.
By order of the Board
J Fenster R Jubber
Chairman and Acting Chief Executive Officer Financial Director
28 March 2013
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 and Acting Chief Executive Officer), RP Jubber (Financial Director),
Y Bhayat*, S Schutz*.
(*Non-executive)
Designated Advisor Transfer Office
Exchange Sponsors 2008 (Pty) Ltd Computershare Investor Services (Pty) Ltd
Date: 28/03/2013 07:30:00 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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