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AWETHU BREWERIES LIMITED - Interim financial results for the 6 months ended 31 December 2012 and cautionary announcement

Release Date: 28/03/2013 17:00
Code(s): AWT     PDF:  
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Interim financial results for the 6 months ended 31 December 2012 and cautionary announcement

AWETHU BREWERIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number: 1992/004352/06)
Share Code: AWT
ISIN Number: ZAE 000013769
(“the company” or “Awethu”)

UNAUDITED CONDENSED INTERIM FINANCIAL RESULTS FOR THE SIX MONTHS ENDED
31 DECEMBER 2012 AND CAUTIONARY ANNOUNCEMENT

COMMENTS
Sector: Breweries
Nature of business: The company manufactures and distributes goods and
services to the informal markets.

BASIS OF PREPARATION
These unaudited condensed financial statements have been prepared in
accordance with International Financial Reporting Standards (IFRS), the
AC500 standards as issued by the Accounting Practices Board, (AFB) (IAS
34), the requirements of the South African Companies Act 71 of 2008 and
the Listings Requirements of the JSE Limited.
These condensed results do not include all the information required for
full annual financial statements, and should be read in conjunction with
the annual financial statements as at the year ended 30 June 2012, which
are available on the company’s website www.awethubreweries.com, or at
the company’s registered office.

REVIEW
These statements have not been reviewed or audited by the company’s
auditors. The financial results have been prepared on the going concern
basis, and were approved by the board on 25 March 2013. There has been
no material changes in judgements or estimates relating to amounts
reported in prior reporting periods. The significant accounting policies
and methods of computation are consistent in all material respects with
those applied in the year ended 30 June 2012.

SYNOPSIS OF OPERATIONS FOR THE PERIOD AND POST BALANCE SHEET EVENTS

It has been a year of consolidation of ideas and soul searching for the
company and a new focus has emerged as to where the company’s future
lies.

As a result of the Chief Executive Officer’s 20 years of experience in
the retail and wholesale liquor trade, and his forte and expertise in
that field, the board has reached consensus to pursue options in, and
steer Awethu towards, that direction.
Five existing liquor outlets (two wholesale and three retail stores)
have been identified for acquisition within the next few months. We
expect these stores to have a positive impact on the earnings of the
company. This general forecast has not been reviewed nor reported on by
the company’s auditors. The interim financial statements of the company
have been prepared by Ms J Caddy and supervised by the Financial
Director, Ms I Vermaak.
No events have occurred between the reporting date and the date of
release of these results which require disclosure, but the attention of
shareholders is drawn to the cautionary announcement included in these
results.

COMPARATIVE FIGURES
The unaudited condensed interim financial statements are for the six
months ended 31 December 2012, and the comparative reviewed interim
statements are for the six months ended 31 December 2011. The audited
annual financial statements for the year ended 30 June 2012 are
presented as published and have not been restated.

OPERATING SEGMENTS
The company has two reportable segments, revenue from sales and revenue
from rental of investment property, both of which are in one
geographical segment, namely the North West Province.

                               Unaudited            Reviewed          Audited
                                6 months            6 months             Year
                                   ended               ended            ended
                              31/12/2012          31/12/2011       30/06/2012
                                      R                    R                R

Revenue – sales               4 859   938           1 180   496     6 798   908
Revenue – rentals               429   000             375   000       831   156
Cost of sales                (4 681   658)          1 121   471     6 581   588
Depreciation                     65   942              67   282       134   563



CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
                              Unaudited        Reviewed           Audited
                              6 months         6 months           Year
                              ended            ended              ended
                              31/12/2012       31/12/2011         30/06/2012
                                    R                R                  R
Revenue                       5 288 938         1 555 496         7 630 065
Operating profit(loss)          (42 943)         (186 957)        2 671 539
before interest
Net interest (paid)/received         (421)         (40 018)            13 916

Net profit/ (loss) before
taxation                          (43 364)       (226 975)    2 685 455
Taxation                        ______-_____________-______________-____
Net profit/ (loss)
for the period                    (43 364)       (226 975)    2 685 455
                                ________________________________________
Supplementary Information

Number of shares in issue       84,556,909      84,556,909           84,556,909
(Loss) / Earnings per share
 (cents)                             (0.05)         (0.27)                3.18

Headline loss per share              (0.05)         (0.27)               (0.97)
(cents)

Reconciliation between basic
Earnings/ (loss) and headline loss
Net profit/ (loss) for period   (43 364)         (226 975)           2 685 455
Fair value adjustment on              -                  -          (4 419 824)
investment property
Total tax effect of
adjustments                           -                -              917 397

Headline loss for period          (43 364)       (226 975)           (816 972)


CONDENSED STATEMENT OF FINANCIAL POSITION
                               Unaudited             Reviewed            Audited
                                6 months             6 months             Year
                                 ended                ended               ended
                               31/12/2012          31/12/2011         30/06/2012
                                   R                      R                   R

ASSETS
Non-current Assets                7 404   018        3 117    419     7 469   960
Property, plant and equipment        39   594          441    419        42   761
Investment Property               7 364   424        2 676    000     7 427   199
Current Assets                    2 109   339        3 447    285     1 945   473
Accounts receivable               2 079   274          923    182     1 464   722
Cash and bank                        30   065        2 524    103       480   751

Total Assets                      9 513 357          6 564 704        9 415 433
EQUITY AND LIABILITIES
Capital and Reserves             (1 724 800)        (4 593 866) (1 681 436)
Share capital and reserves        (1 724 800)         (4 593 866) (1 681 436)

Non-current Liabilities            9 498 440           9 486 584     9 498 440
Shareholder’s loan                 9 498 440           9 486 584     9 498 440
Current Liabilities                1 739 717           1 671 986     1 598 429
Accounts payable                     662 359             594 628       521 071
Provisions                         1 077 358           1 077 358     1 077 358

Total Equity and Liabilities       9 513 357           6 564 704     9 415 433

Net liability per share (cents)       (2.03)             (5.43)         (1.98)

Note: The shareholder's loan account has been subordinated in favour of
all other creditors until such time as the company's assets (fairly
valued) exceed its liabilities.

STATEMENT OF CHANGES IN EQUITY
                                      Unaudited        Reviewed         Audited
                                       6 months        6 months            Year
                                          ended           ended           ended
                                      31/12/2012       31/12/2011    30/06/2012
                                          R                 R                R

Balance at beginning of period        (1 681 436)    (4 366 891)    (4 366 891)
Net profit/(loss) for the period         (43 364)      (226 975)     2 685 455
Balance at end of period              (1 724 800)    (4 593 866)    (1 681 436)

CONDENSED CASH FLOW STATEMENT
                                      Unaudited        Reviewed         Audited
                                       6 months        6 months            Year
                                          ended           ended           ended
                                      31/12/2012     31/12/2011      30/06/2012
                                          R                 R                R

Net cash flow from operating           450 686      (2 249 946)       4 305 154
Activities
Net cash flow from discontinued
Activities                                      -            -          -

Net cash flow from investing
activities                                      -       40 254           40 254
Net cash flow from financing
Activities                                      -    4 372 070      (4 383 926)


Net change in cash and bank            450 686       2 162 378          119 026
Cash and bank at beginning
Of period                           480 751       361 725        361 725
Cash and bank at end
Of period                            30 065     2 524 103        480 751




CAUTIONARY ANNOUNCEMENT
Awethu shareholders are advised that the company has entered into
negotiations, which if successfully concluded may have a material effect
on the price of the company’s securities.

Accordingly shareholders are advised to exercise caution when dealing in
the company’s securities until a full announcement is made.


On behalf of the Board
JA TAYLOR (Chairman)               TTW FORD (Chief Executive Officer)
28 March 2013

Registered Office:       24 Sering Street, SE3 Vanderbijlpark, 1911
                         www.awethubreweries.com
Transfer secretaries:    Computershare Investor Services (Pty) Ltd
                         70 Marshall Street, Johannesburg, 2001

Directors: J.A. Taylor (Chairman)* TTW Ford (Chief Executive Officer)
I. Vermaak (Financial Director) MI Lockhat* (* Independent non-
executive)

Company Secretary:       JM Caddy F.C.I.S
Auditors:                Logista CA(SA) Incorporated
Sponsors:                Deloitte & Touche Sponsor Services (Pty) Ltd

Date: 28/03/2013 05:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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