Wrap Text
Provisional reviewed results for the year ended 30 June 2013
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”)
PROVISIONAL REVIEWED RESULTS FOR THE YEAR ENDED 30 JUNE 2013
Condensed Statement of Comprehensive Income
Year ended Year ended
30 June 2013 30 June 2012
Reviewed Audited
R R
Continuing operations
Revenue 11 421 059 7 630 065
Cost of sales (10 150 024) (6 581 588)
Gross profit 1 271 035 1 048 477
Fair value adjustment - 4 419 824
Operating expenses (924 843) (2 796 762)
Investment revenue 524 40 254
Finance costs (593 208) (26 338)
Operating (loss)/profit (246 492) 2 685 455
Taxation - -
Total comprehensive (loss)/income (246 492) 2 685 455
Basic and diluted (loss)/earnings per
share (cents) (0.29) 3.18
Reconciliation between basic (loss)/
earnings and headline loss:
Net (loss)/profit for year (246 492) 2 685 455
Fair value adjustment on
investment property - (4 419 824)
Total tax effect of adjustments
Headline loss for the year (246 492) (816 972)
Headline loss per share (cents) (0.29) (0.97)
(Loss)/Profit for the year (246 492) 2 685 455
Basic number of shares outstanding 84 556 909 84 556 909
Weighted average number of shares on which:
Basic (loss)/earnings per share
is based 84 566 909 84 566 909
Headline loss per share is based 84 566 909 84 566 909
Condensed Statement of Changes in Equity
Share Share Total Share Accumulated Total
Capital Premium Capital Loss Equity
R R R R R
Balance at
30 June 2011 845 569 9 901 507 10 747 076 (15 113 967)(4 366 891)
Changes in equity
Total comprehensive
profit for the year - - - 2 685 455 2 685 455
Balance at
30 June 2012 845 569 9 901 507 10 747 076 (12 428 512)(1 681 436)
Changes in equity
Total comprehensive
loss for the year - - - (246 492) (246 492)
Balance at
30 June 2013 845 569 9 901 507 10 747 076 (12 675 004)(1 927 928)
Condensed Statement of Financial Position
30 June 30 June
2013 2012
Reviewed Audited
R R
Assets
Non-Current Assets
Property, plant and equipment 36 426 42 761
Investment Property 7 427 199 7 427 199
7 463 625 7 469 960
Current Assets
Trade and other receivables 495 792 1 331 666
Cash and cash equivalents 152 803 480 751
Straight-lining of lease asset 84 762 133 056
Total current assets 733 357 1 945 473
Total assets 8 196 982 9 415 433
Equity and Liabilities
Equity
Share capital 10 747 076 10 747 076
Accumulated loss (12 675 004) (12 428 512)
(1 927 928) (1 681 436)
Liabilities
Non-Current Liabilities
Loan from shareholder 8 006 782 9 498 440
8 006 782 9 498 440
Current Liabilities
Trade and other payables 448 558 521 071
Provisions 1 669 570 1 077 358
2 118 128 1 598 429
Total Equity and Liabilities 8 196 982 9 415 433
Condensed Statement of Cash Flows
30 June 30 June
2013 2012
Reviewed Audited
R R
Cash flows from operating activities:
Cash used in operations (327 475) (4 278 816)
Finance costs (997) (26 338)
Net cash from operating activities (328 472) (4 305 154)
Cash Flows from investing activities:
Interest income 524 40 254
Net cash from investing activities 524 40 254
Cash flows from financing activities:
Investment debtor – proceeds - 3 017 071
Movement in shareholder’s loan – inflow - 1 500 000
Movement in shareholder’s loan – outflow - (133 145)
Net cash from financing activities - 4 383 926
Total cash movement for the year 327 948 119 026
Cash at beginning of year 480 751 361 725
Total cash at end of year 152 803 480 751
Segmental Information
The segment revenues, operating profit and other expenses generated by
each reportable segment is summarised as follows:
2013 2012
Sales of goods
Revenues 10 589 903 6 798 908
Investment revenue 524 40 254
Cost of sales (10 150 024) (6 581 588)
Depreciation (6 335) (134 563)
Impairment of assets - (1 245 703)
Operating lease charges (60 000) (60 000)
Employee costs (61 827) (94 925)
Finance costs (593 208) (26 338)
Segment profit (2012 : loss) 311 244 (1 303 955)
Rental of premises
Rental income 831 156 831 156
Fair value adjustments - 4 419 824
Segment profit 831 156 5 250 980
Other expenses (915 289) (244 491)
Director’s remuneration (81 600) (60 547)
Listing costs (181 069) (551 172)
Audit and accounting (210 934) (405 361)
Company(loss)/profit from continuing (246 492) 2 685 455
operations before tax.
All segment revenue is derived from external sources.
External revenues per geography are summarised as follows:
Ventersdorp
Goods sold 10 589 903 6 798 908
Rental income 831 156 831 156
Total revenue 11 421 059 7 630 065
The operating segment assets by each reportable segment are summarised as
follows:
Sales of goods
Property, plant and equipment 36 426 42 761
Trade and other receivables 480 000 1 331 666
Segment assets 516 426 1 374 427
Rental of premises
Investment property 7 427 199 7 427 199
Segment assets 7 427 199 7 427 199
Unallocated assets:
Cash and cash equivalents 152 803 480 751
Straight-lining of lease asset 84 762 133 056
Company assets 10 488 627 9 415 433
The company does not report on segment liabilities.
Non-current non-financial asset per geography are summarised as follows:
Ventersdorp
Property, plant and equipment 36 426 42 761
Investment property 6 827 199 6 827 199
Total assets 6 863 625 6 869 960
Carletonville
Investment property 600 000 600 000
Total 7 463 625 7 469 960
COMMENTARY
1. Review of the results
Awethu Breweries went through what can only be termed a transitional year
for the year ended 30 June 2013. The decision to move into other informal
markets was made in the 2012 year, however the delay in obtaining a liquor
licence and other financial constraints, including the JSE Listings
Requirements that need to be met since Awethu is a listed company, has
resulted in the move taking a lot longer than anticipated.
Your directors are pleased to advise that the turnover for the year
increased by R3,8 million, and the headline loss for the year was reduced
by R570 480 to an operating loss for 2013 of R246 492. The basic headline
loss per share for the year of (0.29) improved on the prior year’s loss of
(0.97)cents per share.
2. Prospects
The goal of the company is to move into the bottle store business. This is
a business that the directors have expertise and experience in, and have
had a large amount of success therefrom. The first stepping stone, which
has been the hardest, is to get Awethu Breweries registered with its own
liquor licence. Our endeavours to have this done during the year have been
delayed; however, we are optimistic that this licence will be issued
shortly. We are currently considering a number of bottle store
acquisitions, both large and small, over the next two quarters. One
transaction will be concluded during the next month or two, being the
start-up of a bottle store, which will produce a reasonable profit margin
for Awethu. This general forecast has not been reviewed nor reported on by
the Company’s auditors.
3. Dividends
No dividend has been declared for the year.
4. Accounting policies / compliance
These Provisional Reviewed financial statements have been prepared by JM
Caddy, in accordance with International Financial Reporting Standards
("IFRS") and IAS 34 - Interim Reporting, using accounting policies which
are consistent with those for the year ended 30 June 2013 and the interim
financial statements for the six months to 31 December 2012, and these
comply with the relevant sections of the Companies Act of South Africa and
the Listings Requirements of the JSE Limited.
During the year under review the company adopted all of the IFRS and
Interpretations being effective and deemed applicable. None of these had a
material impact.
5. Independent review by the external auditors.
The Condensed provisional results have been reviewed by our auditors,
Logista CA (SA) Incorporated, which review opinion is open for inspection
at the Company’s registered office. This review opinion contains an
Emphasis of Matter contained in paragraph 6.
6. Emphasis of Matter
The auditors draw attention to the fact that the company’s total
liabilities exceeded its total assets by R1 927 928 on 30 June 2013. This
condition indicated the existence of a material uncertainty which may cast
significant doubt on the company’s ability to continue as a going concern.
7. Events after reporting date
There are no events to report after the reporting date.
8. Director changes during the year
Mr Hussein Bismilla resigned from the company on 7 January 2013.
On behalf of the board
TTW Ford
Chief executive
1 October 2013
Vanderbijlpark
Registered Office: 24 Sering Street, SE3 Vanderbijlpark, 1911
Transfer secretaries: Computershare Investor Services (Pty) Ltd –
70 Marshall Street, Johannesburg, 2001
Directors: JA Taylor(Chairman)(ne),TTW Ford(CEO),
I Vermaak(FD),M Lockhat(ne)
Company Secretary: JM Caddy FCIS
Auditors: Logista CA (SA)Incorporated
Chartered Accountants (S.A.)
Registered Auditors
Sponsors: Deloitte & Touche Sponsor Services (Pty) Ltd
Date: 01/10/2013 09:35:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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