Wrap Text
Unaudited condensed consolidated results for the quarter ended 31 March 2013 and withdrawal of cautionary
LITHA HEALTHCARE GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2006/006371/06);
Share code: LHG, ISIN: ZAE000144671
(Litha or "the Company" or "the group")
UNAUDITED CONDENSED CONSOLIDATED RESULTS FOR THE QUARTER ENDED
31 MARCH 2013 AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
- EBITDA up 52% compared to Q4 2012
- Turnover up 14% compared to Q4 2012
- Earnings per share increased 3,8 cps to 0,7 cps in Q1 2013
- Cautionary around proposed BBBEE transaction withdrawn
The unaudited condensed consolidated results for the quarter ended 31 March 2013 have been prepared by the groups
chief financial officer, Martin Michael Kahanovitz, CA (SA).
The unaudited condensed consolidated results for the quarter ended 31 March 2013 have been prepared in accordance
with the framework concepts and the measurement and recognition requirements of the International Financial Reporting
Standards.
The results are based on management accounts and contain information required by the International Accounting
Standard 34 Interim Financial Reporting "IAS 34" and in the manner required by the Companies Act. However,
the group does not provide comparative figures for the quarter ended 31 March 2012 as formal quarterly
reporting processes were only implemented in the third quarter of 2012. Comparative information would therefore
be misleading and inaccurate. Accordingly, the quarter ended 31 March 2013 has been compared to the quarter ended
31 December 2013. This quarter on quarter comparison will continue in the following quarter. At the start of the third quarter
2013, quarterly results will be compared to the same quarter of the prior year. The quarterly results are being prepared as
a result of the acquisition of a controlling interest in Litha by Paladin Labs Inc. on 2 July 2012. Paladin Labs Inc.,
a Canadian specialty pharmaceutical company listed on the Toronto Stock Exchange, is required to prepare quarterly
financial statements.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Audited 31
31 March 2013 December 2012
(R'000)
ASSETS
Non-current assets 1 333 769 1 347 499
Property, plant and equipment 78 153 79 278
Goodwill and intangible assets 865 092 869 657
Investment in associates 5 424 5 340
Investment in joint venture 250 921 260 034
Loans to joint venture 106 782 104 744
Deferred taxation asset 20 909 21 958
Other non-current assets 6 488 6 488
Current assets 510 686 436 626
Inventories 237 885 194 964
Trade and other receivables 211 911 169 691
Taxation 13 776 22 904
Cash and cash equivalents 46 525 46 687
Other current assets 589 2 380
Discontinued operations 1 295 875
Total assets 1 845 750 1 785 000
EQUITY AND LIABILITIES
Total equity 1 110 586 1 107 596
Share capital and premium 760 473 760 473
Reserves attributable to holders of the parent 330 593 326 236
Non-controlling interest 19 520 20 887
Non-current liabilities 379 978 393 735
Other financial liabilities 285 830 293 957
Deferred taxation liability 94 148 99 778
Current liabilities 344 885 283 468
Accounts payable and provisions 228 409 139 111
Other current liabilities 84 949 84 260
Bank overdraft 31 527 60 097
Liabilities of discontinued operations 10 301 201
Total equity and liabilities 1 845 750 1 785 000
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited
quarter ended quarter
R000
31 March 2013 ended 31
December 2012
Revenue 271 639 240 432
Turnover 271 639 237 502
Cost of sales (157 521) (139 489)
Gross profit 114 118 98 013
Operating expenses (99 681) (110 749)
Other income - 502
Operating profit/(loss) 14 437 (12 234)
Non-operating interest paid (6 286) (7 464)
Profit/(loss) before taxation 8 151 (19 698)
Taxation (6 815) 4 632
Profit/(loss) from continuing operations 1 336 (15 066)
Profit/(loss) from discontinued operations 889 (1 668)
Profit/(loss) for the period 2 225 (16 734)
Total comprehensive income/(loss) 2 225 (16 734)
Profit/(loss) attributable to equity holders of Litha Healthcare Group Limited:
Profit/(loss) from continuing operations 2 703 (15 127)
Profit/(loss) from discontinued operations 889 (1 668)
Profit/(loss) attributable to equity holders of Litha Healthcare Group Limited 3 592 (16 795)
Non-controlling interest (1 367) 61
Total profit 2 225 (16 734)
Total comprehensive income/(loss) attributable to:
Equity holders of Litha Healthcare Group Limited 3 592 (16 795)
Non-controlling interest (1 367) 61
Total comprehensive income for the year 2 225 (16 734)
Earnings per share (cents) 0,7 (3,1)
From continuing operations 0,5 (2,8)
From discontinued operations 0,2 (0,3)
Diluted earnings per share (cents) 0,6 (3,0)
From continuing operations 0,5 (2,7)
From discontinued operations 0,2 (0,3)
COMMENTARY TO THE CONSOLIDATION STATEMENT OF COMPREHENSIVE INCOME
Headline earnings reconciliation
Profit from continuing operations 2 703 (15 127)
Adjusted for:
Write-off of intangible assets 242 507
Tax effect of write-off of intangible assets (68) (142)
Loss on disposal of property, plant and equipment (13) 164
Tax effect of loss from disposal of property, plant and equipment 4 (45)
Headline earnings from continuing operations 2 868 (14 643)
Loss from discontinued operations 889 (1 668)
Headline earnings 3 757 (16 331)
Headline earnings per share (cents) 0,7 (3,0)
From continuing operations 0,5 (2,8)
From discontinued operations 0,2 (0,3)
Diluted headline earnings per share (cents) 0,7 (2,9)
From continuing operations 0,5 (2,6)
From discontinued operations 0,1 (0,3)
Share Ordinary
Share based Reserve Accum- share- Non-
capital and payment on equity ulated holders controlling
(R'000) premium reserve transaction profits interest interest Total
Balance at 1 October 2012 760 473 18 455 (67 213) 390 217 1 101 932 20 826 1 122 758
Total comprehensive income - - - (16 795) (16 795) 61 (16 734)
Share based payment reserve
adjustment - 1 572 - - 1 572 - 1 572
Balance at 1 January 2013 760 473 20 027 (67 213) 373 422 1 086 709 20 887 1 107 596
Total comprehensive income - - - 3 592 3 592 (1 367) 2 225
Share based payment reserve
adjustment - 765 - - 765 - 765
Balance at 31 March 2013 760 473 20 792 (67 213) 377 014 1 091 066 19 520 1 110 586
CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited Unaudited
quarter ended quarter ended
31 March 31 December
(R'000) 2013 2012
Cash generated by operating activities 22 636 (10 926)
Cash flows from operating activities 48 593 11 451
Cash flows from investing activities (11 435) (5 776)
Cash flows from financing activities (8 750) (11 520)
Net (decrease)/increase in cash and cash equivalents 28 408 (5 845)
Cash and cash equivalents at beginning of period (13 410) (7 565)
Cash and cash equivalents at end of period 14 998 (13 410)
Cash and cash equivalents included in discontinued
Operations 399 377
COMMENTARY
1. NATURE OF BUSINESS
Litha Healthcare Group Limited is a diversified healthcare business providing services, products and solutions to public
and private hospitals and government healthcare programmes in Southern Africa. It has three divisions Litha Biotech
(vaccines), Litha Medical (medical devices and equipment) and Litha Pharma (pharmaceuticals and complementary medicines).
2. FINANCIAL OVERVIEW
Statement of Comprehensive Income
Turnover for the three months ended 31 March 2013 (Q1 2013) was R271,6 million. (Three months ended 31 December
2012 (Q4 2012): R237,5 million). This increase was mostly driven by turnover increases in the Litha Pharma and Litha
Biotech divisions, while the Litha Medical division turnover decreased. This is discussed in further detail in the
operational review.
Operating profit before tax turned around from a loss of R12,2 million in Q4 2012 to a profit of R14,4 million in Q1 2013.
The improvement in operating profit for the quarter was driven by strong turnover in the Litha Pharma Division and in the
Litha Vaccines business in the Litha Biotech division, as well as foreign exchange gains of R8,0 million during the period
(versus a R10,1 million forex loss in Q4 2012). Although the delayed forensic tender in Litha Medical was adjudicated and
awarded in the previous quarter, orders have only started to come through in April. The operating profit in The Biovac
Institute (Biovac) was impacted by foreign exchange losses of R20,0 million in the first quarter versus a R10,5 million
loss in Q4 2012. This resulted in a loss from the groups 52,5% share in the joint venture of R9,1 million.
Earnings per share turned around from a loss of 3,1 cents per share in Q4 2012 to a profit of 0,7 cents per share for
Q1 2013. Headline earnings per share was 0,7 cents per share for the same period (Q4 2012: (3,0) cents per share).
Reconciliation to EBITDA
Management believes that earnings before interest, tax, depreciation and amortisation (EBITDA) is a very meaningful
measure due to the large amortisation of intangibles and significant increase in finance costs associated with recent
acquisitions. EBITDA allows management to assess the operating performance of its on-going business on a consistent
basis without the impact of amortisation and depreciation expenses. The company excludes depreciation and
amortisation expenses, as these are very dependent on non-operating factors such as the historical cost of property,
plant and equipment and intangible assets.
EBITDA does not have a standardised definition under International Financial Reporting Standards ("IFRS") and therefore
may not be comparable to similar measures presented by other companies. The company defines EBITDA as earnings
before interest income/expense, other expense/income, tax, amortisation, depreciation, foreign exchange gain/losses,
income/loss from joint ventures and equity accounted investments and unusual items, such as write-downs and
gains/losses on investments. EBITDA is calculated and presented consistently from period to period.
3 months ended 3 months ended 31
EBITDA breakdown 31 March 2013 December 2012
R000 R000
(Loss)/ Profit before taxation 8 151 (19 698)
Add back:
Interest expense 8 226 11 815
Depreciation expense 2 223 3 880
Amortisation expense 14 397 17 885
Net (gain)/loss from Joint Venture 9 112 (404)
79 (170)
Net (profit)/loss from equity accounted investment
Foreign exchange loss/(gain) (8 007) 10 079
Write off of intangible assets 242 507
Other finance expense 357 357
Less:
Other Income - (503)
Interest income 2 384 2 428
EBITDA 32 396 21 320
Non-operating interest expense of R6,3 million for the quarter relates to interest expense on the Rand Merchant Bank
(RMB) Preference Shares, which was raised in July 2012 to fund the cash portion of the acquisition of Pharmaplan,
the initial RMB term loan raised in June 2011 and the Industrial Development Corporation (IDC) and Technology and
Innovations Agency (TIA) of South Africa loans within the Litha Biotech division.
The effective tax rate for Q1 2013 before the loss from joint venture and loss from associate was 39,3%, mostly due
to non-deductible interest expense.
Discontinued operations (Litha Cardiac and Litha Critical Care) showed a profit after tax of R0,9 million in Q1 2013
(Q4 2012: R1,7 million loss) due to the fulfilment of tender obligations which have now come to an end. These businesses
will now be wound down.
Statement of Financial Position
The decrease in goodwill and intangibles of R4,5 million during Q1 2013 was mainly from the amortisation of intangible
assets. This was partially offset by the recognition of intangible assets acquired through the acquisition of registered
products for R10,1 million in the Litha Pharma division.
The increase in investment in associates from R5,3 to R5,4 million was as a result of Lithas 30% share of Firefly
Investments 223 (Pty) Ltd (Firefly), an entity which owns the groups office/warehousing building in Midrand.
The investment in joint venture relates to Lithas 52,5% holding in Biovac. During Q1 2013, the investment decreased
by R9,1 million due to the losses from Biovac and the related amortisation of intangibles. Refer to note 5 below.
Other non-current assets relate to a social responsibility loan to the Disability Empowerment Concerns Trust.
Other current assets relate to amounts receivable from the Biotech division for logistics services provided and net assets
realised on the revaluation of outstanding foreign exchange contracts.
The significant increase in the inventory levels from R194,9 million to R237,9 million stems primarily from the Litha
Pharma division. During the quarter, this division started increasing its stock in anticipation of certain government and
private tenders, as well as to increase safety stock levels due to increased lead times from suppliers. The group manages
stock levels to ensure it has adequate inventory turnover while protecting against stock-outs and overstock. Accounts
receivable increased from Q4 2012 due in part to the new distribution relationship with an outsourced provider,
UTI Pharma. As a result of this new agreement, UTI Pharma collects accounts from customers on behalf of the Litha Pharma
division. As in the past, government reached the end of their budget cycle (the end March of each year) and are awaiting
the availability of funds from their new budgets. This is expected to start flowing through in the second quarter.
The R13,8 million tax receivable relates to the over-provision for taxation in prior periods.
The large increase in accounts payable is as a result of the strong sales in Litha Vaccines during the quarter. Although
the vaccines were sold, payment to the supplier has not yet taken place. In the Litha Pharma division, accounts payable
increased in line with the increase in inventory as a result of longer lead times required by lead suppliers.
Litha raised R125 million through a preference share loan during the prior year to fund the cash portion of the acquisition
of Pharmaplan. The funding for Biovac's manufacturing facility was raised at The Biovac Consortium Proprietary Limited
level, a holding company for Biovac and an 85% subsidiary of Litha. These funds were on-lent to Biovac, resulting in the
loans to joint venture of R106,8 million. As previously noted, the debt relating to Biovac operations should not be used
in determining the groups gearing as Biovac does not rely on the group to provide funding and is operationally separate.
The table below shows the gearing excluding and including debt related to Biovac.
Excluding Biovac Including Biovac
March 2013 December 2012 March 2013 December 2012
Interest bearing debt (R000) 271 186 308 425 372 718 407 919
Equity (R000) 1 110 586 1 107 596 1 110 586 1 107 596
% 24,4% 27,8% 33,6% 36,8%
Cash flow
Cash flow from operating activities was 296% higher at R45,6 million (Q4 2012: R11,5 million).
Cash outflow from investing activities was R11,4 million for Q1 2013 (Q4 2012: R5,8 million). The majority of the cash
outflow was from the investment in registered products in the Litha Pharma division of R10,1 million.
Cash outflow from financing activities was R8,7 million for Q1 2013 (Q4 2012: (R11,5 million)). Cash was primarily used
for debt repayment of R10 million.
Cash and cash equivalents at the end of the period were R15 million for Q1 2013 (Q4 2012: (R13,4 million)).
3. OPERATIONAL OVERVIEW
Litha Healthcare Group Limited consolidated
Quarter one results show a pleasing improvement on prior quarters and indicate that the benefits and efficiencies from
acquisitions made over the last 12 18 months are starting to bear fruit. During the quarter, the group continued to focus
on driving efficiencies and controlling costs through its shared services strategy.
The group benefited from the delivery of a flu contract in Litha Vaccines to the government by the end of March. However,
the Medical division did not realise material sales in the quarter under review from the forensic tender, which was
awarded in the last quarter, as sales only started in April 2013.
The integration of the pharmaceutical division post the acquisition of Pharmaplan has been progressing well,
as evidenced by the divisions performance in this quarter.
Group turnover was up 14% and operating profit increased from a loss of R12,2 million in Q4 2012 to a profit of
R14,4 million in Q1 2013.
Litha Biotech
Turnover in Litha Biotech was strong in Q1 2013, with an increase of 134% from R23,6 million to R55,4 million.
The primary reason for the increase was due to strong sales in Litha Vaccines based on the traditional higher buying patterns
in the first half of the year in the lead-up to winter.
However, while turnover increased, the division posted an operating loss of R1,1 million for Q1 2013 compared to an
operating profit of R4,7 million in the prior quarter. While the underlying operating performance was sound, the operating
profit was negatively impacted by the groups share of the significant loss in the Biovac joint venture. In Biovac,
the impact of sudden foreign exchange losses cannot always be fully absorbed in the quarter where the change occurs as
pricing to government only changes every quarter. To improve Biovacs ability to buffer the impact of Rand volatility,
a number of supply contracts were renegotiated to share the exchange rate risk with suppliers.
This division contributed (3%) to the groups operating profit before head office expenses.
Litha Medical
Litha Medical had a slow start to the year in terms of turnover, margins and profitability. Turnover for Q1 2013 was
R72,3 million, down 8% from R78,6 million in Q4 2012. The decrease was primarily driven by the loss of certain tenders in Litha
Medical and backorders in the Filterworks business. Q4 2012 turnover was also particularly strong as a result of
competitors not being able to supply certain products. Operating profit for the quarter decreased by 18% to R8,2 million.
ICU Medical SA posted a strong quarter due in part to a new devices contract and Earth Medical sold another two Oertli
Phaco/Vitrectomy machines. These, combined with the machines sold in Q4 2012, resulted in an increase in consumable
sales on the back of equipment sales.
This division contributed 24% of the groups operating profit before head office expenses.
Litha Pharma
Q1 2013 results for Litha Pharma saw a pleasing 6% increase in turnover to R144,0 million from R135,2 million in the
prior quarter. The increase was driven by the strong sales growth of Avonex, Pantocid and Ecotrin versus the prior
quarter. Operating profit for Q1 2013 increased by 386% from R5,6 million to R27,3 million in Q1 2013. The marked
increase was due to the increase in sales and some foreign exchange gains in the period. The impact of fluctuations in
foreign exchange rates is expected to lessen due to forward exchange cover implemented during the latter part of 2012.
The Department of Health (DoH) approved a price increase of 5,8% on Single Exit Price (SEP) products with effect from
12 March 2013 .These will be implemented by the group in April 2013. Consequently, the effect of this increase will only
start to flow though during the second quarter of 2013.
During the quarter, Litha Pharma started outsourcing the majority of its distribution and warehousing through an external
provider, UTI Pharma. Coupled with the integration of Litha Pharma and Pharmaplan and the implementation of single
invoicing of all entities within this division, Litha Pharma is well positioned to realise its planned efficiencies. Following
the move to UTI Pharma in December 2012, there has been a settling down period and the group expects to start seeing cost
savings flow through in the second quarter of 2013.
This division contributed 79% of the groups operating profit before head office expenses.
Shared Services
A programme was launched to develop and action the Shared Service department model for warehousing and logistics
for the Litha Healthcare Group in January 2013. This will form part of the optimisation and rationalisation of staffing,
procurement, in-house deliveries, invoicing and other services within the group model.
Litha Pharmas single invoicing commenced in January 2013, with Litha Medical to follow during the first quarter of 2014.
4. PROSPECTS
Discussions at Litha Biotech (Biovac) are continuing on further technology transfers to fill the pipeline of products to
be manufactured. The Medicines Control Council (MCC) inspection, which was anticipated at the end of 2012, was
completed in mid-April 2013. Trial batch runs (stability batches) can now be developed for MCC validation and
subsequent registration approvals in order to manufacture. Once the results of the MCC inspection are finalised, trial
batch runs complete and the new manufacturing site approved by the regulator, the facility will be ready for commercial
manufacture.
In Litha Medical, Manta Medical signed a distribution agreement with Philips for bedside monitors commencing 1 June 2013.
This will strengthen the divisions position in the transducer market by providing the group with increased
consumable sales linked to equipment sales. Following the recent purchase of an Ethylene Oxide (ETO) sterilisation
facility and injection moulding equipment, the group will be launching a number of the consumable products in the Manta
Forensic business unit as locally manufactured Litha brands. This will allow the group to balance its product mix between
local and imported products.
Litha Pharma is actively expanding its commercial activities and will continue with an aggressive strategy to penetrate
new markets and defend existing market share. The business development team continues to work with Paladin, the
groups Canadian shareholders and partners, to sign licensing deals for products to be submitted to the MCC.
The relationship with Paladin has exposed the group to international best practice with regard to business development and
has enabled Litha to adopt a number of these practices in its business. Since the acquisition of Pharmaplan, the groups
range of products/brands has expanded from 46 to 128, with an additional nine products which were approved by the
MCC in 2012 and are ready for launch in mid-2013.
NOTES TO THE FINANCIAL STATEMENTS
1. ACCOUNTING POLICIES
The unaudited condensed consolidated financial statements for the three months ended 31 March 2013 have been
prepared in accordance with the framework concepts and the measurement and recognition requirements of the
International Financial Reporting Standards and containing information required by the IAS 34 Interim Financial Reporting
and in the manner required by the Companies Act.
This report has also been prepared in accordance with and containing the information required by AC 500 series, as
issued by the Accounting Practices Board. The unaudited condensed consolidated financial statements are prepared on
the historical cost basis, with the exception of certain financial instruments which are measured at fair value. These
financial statements should be read in conjunction with the audited financial statements for the year ended 31 December
2011. The unaudited condensed financial statements for the three months ended 31 March 2013 are prepared using the
same policies and methods of computation as the audited financial statements for the year ended 31 December 2011.
The condensed consolidated financial statements for the quarter ended 31 March 2013 have been not been audited.
The preparation of condensed consolidated interim financial statements requires the use of estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at period
end and the reported amounts of turnover and expenses during the reporting periods. Although these estimates are based on
management's best knowledge of current events and actions that the group may undertake in the future, actual results
may differ from those estimates.
2. WEIGHTED AVERAGE NUMBER OF SHARES IN ISSUE
Unaudited three months Unaudited three months ended
ended 31 March 2013 31 December 2012
Weighted average number of shares 540 929 406 541 528 868
Weighted average share options outstanding 35 460 696 23 475 335
Diluted weighted average number of shares 565 004 203 565 004 203
3. SUBSEQUENT EVENTS AND WITHDRAWAL OF CAUTIONARY
Litha shareholders (Shareholders) are referred to the announcement published on SENS on
26 February 2013 (Announcement) pertaining to, inter alia, the proposed subscription for ordinary shares in the group
by a selected black economic empowerment party, other transactions ancillary thereto, the intention to seek a voluntary
delisting of Litha from the exchange operated by the JSE Limited (Delisting) and the potential share repurchase offer
to Shareholders (Share Repurchase), pursuant to the Delisting (collectively, the Proposed Transactions).
Shareholders are advised that although negotiations between the parties in relation to the Proposed Transactions
reached an advanced stage, unfortunately the group and the relevant parties could not agree on a number of final terms
to conclude the Definitive Agreements. The Proposed Transactions will therefore not proceed and accordingly caution
is no longer required to be exercised by shareholders when dealing in their Litha securities.
The group will continue to evaluate options around introducing a black economic empowerment shareholder.
The delisting option was a particular element of the Proposed Transactions with these parties and is at this stage not
a strategy for the group.
Subsequent to quarter end, Dr. Gert Hoogland has resigned as a board member from the Litha Healthcare Group Limited.
He is relocating to Europe with his family, but will continue to advise on business development within the greater Litha
and Paladin businesses and play an important role in looking for unique opportunities to expand the two groups
pipelines.
Other than the above, there have been no events that are material to the understanding of this report that have occurred
in the period between 31 March 2013 and the date of this report.
4. RELATED PARTY TRANSACTIONS
All transactions with related parties are carried out in the normal course of operations. The accounts payable to related
parties are on normal commercial terms and conditions and are non-interest bearing.
Litha Medical Logistics Proprietary Limited charged cold chain logistics fees of R9,1 million for the three months ended
31 March 2013 to The Biovac Institute, a joint venture.
Payments made to Firefly, an associate, relating to a finance lease amounted to R1,6 million for the three months ended
31 March 2013.
5. INVESTMENT IN JOINT VENTURE
Investment in The Biological and Vaccines Institute of Southern Africa Proprietary Limited (Biovac)
On June 30, 2012, the group re-evaluated the accounting treatment of its investment in Biovac. The government, who is a
47.5% shareholder in Biovac, has taken an increasingly significant role in the business decision-making of Biovac and
accordingly, under IFRS 11 Joint Arrangements, is considered to jointly control Biovac along with Litha. As a result,
with effect from 30 June 30 2012, Litha deconsolidated its interest in Biovac and recognised it as an investment in a
joint venture.
R000
Carrying value, beginning of period 260 034
Share of net loss for the period before adjustments (7 422)
Adjustments to net income:
Amortisation of fair value adjustments (2 348)
Deferred taxation effect 657
Share of net loss for the period (9 112)
Carrying values, end of period 250 921
The Company is presenting selected financial information derived from Biovacs IFRS compliant unaudited management
accounts for the three months ended 31 March 2013.
Biovacs statement of income data R000
Turnover 260 732
Cost of sales (232 705)
Gross income 28 027
Operating expenses (37 684)
Earnings (loss) before items noted here-under (9 657)
Interest, depreciation and income taxes (4 480)
Net income (loss) for the period (14 137)
Biovacs Statement of Financial Position data R000
Total assets 967 878
Total liabilities 858 268
6. CAPITAL COMMITMENTS
Biovac has entered into agreements to the value of R58,7 million (2012: R64,8 million) for improvements and to purchase
equipment relating to the manufacturing facility which is expected to take place during 2013.
7. SEGMENT INFORMATION
Segment Medical division Pharmaceutical Biotechnology Group
division division
(R000)
Quarter ended
31 March 2013
Turnover (External) 72 282 143 959 55 398 271 639
Reportable segment profit 8 154 27 298 (1 109) 34 343
Head Office costs (19 906)
Operating profit (before taxation) 14 437
Total Assets 313 283 1 041 217 491 250 1 845 750
Segment Medical division Pharmaceutical Biotechnology Group
division division
(R000)
Quarter ended
31 December 2012
Turnover (External) 78 584 135 275 23 643 237 502
Reportable segment profit 9 912 5 612 4 705 20 229
Head Office costs (32 464)
Operating profit (before taxation) (12 235)
Total Assets 315 605 976 963 492 432 1 785 000
DIVIDEND
No dividend has been recommended or declared for the period. It is anticipated that while the group continues with its
growth strategy, it will continue to reinvest any profit generated back into the businesses. The group will review its
dividend declaration policy in the medium term.
For and on behalf of the board
N Sowazi, Chairman
S Kahanovitz, Chief Executive Officer
Johannesburg
9 May 2013
Directors: N Sowazi*, S Kahanovitz, M Makhoana, M Kahanovitz, AD Bonamour*, W Marshall-Smith*,
M Mzimba*, F Hendricks*, I Jacobson*#, V Mcobothi*, M Beaudet*+, M Nawacki*+
(*non-executive) (+Canadian) (#British)
Sponsor
Rand Merchant Bank (a division of FirstRand Bank Limited)
Registered auditors
Mazars
Transfer Secretaries
Computershare Investor Services
Registered Office
106 16th Road
Midrand
1686
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