Wrap Text
Unaudited Condensed Interim Results for the six months ended 31 August 2013
Nutritional Holdings Limited
Reg no 2004/002282/06
(Incorporated in the Republic of South Africa)
("The Group" or "The Company")
Share code : NUT ISIN code : ZAE000156485
UNAUDITED CONDENSED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST
2013
The unaudited financial statements are presented on a consolidated basis
Unaudited Unaudited Audited
Condensed consolidated Six months Six months Year ended
income statement
for the period ended 31 Aug 2013 31 Aug 2012 28 Feb 2013
R’000 R’000 R’000
Revenue 19,224 17,527 34,178
Cost of Sales (11,193) (10,545) (20,367)
Gross Profit 8,031 6,982 13,811
Operating loss before
interest (1,708) (3,689) (5,861)
Reversal of impairment of
intangible asset - - (7,200)
Finance costs (192) (352) (696)
Finance income 14 166 186
(Loss) before taxation (1,886) (3,875) (13,571)
Taxation (51) 11 138
(Loss) for the period (1,937) (3,864) (13,433)
Other comprehensive income
for the period net of - - -
taxation
Attributable to ordinary
shareholders (1,937) (3,864) (13,433)
(Loss) per share (cents) –
basic and diluted (0.10) (0.26) (0.89)
Headline (loss) per share
(cents) – basic and diluted (0.10) (0.26) (0.41)
Number of ordinary shares in issue (000)
- issued net of treasury 1,907,368 1,517,368 1,907,368
shares
- weighted-average 1,907,368 1,512,768 1,515,068
- Diluted weighted-average 1,907,368 1,512,768 1,515,068
Calculation of headline earnings (R’000)
(Loss) for the period (1,937) (3,864) (13,433)
Reversal of impairment of
intangible assets - - 7,200
Loss on disposal of
property, plant and - - (10)
equipment
Headline (loss)attributable
to ordinary shareholders (1,937) (3,864) (6,243)
Condensed consolidated
statement of financial Unaudited Unaudited Audited
Position for the period Six months Six months Six months
ended 31 Aug 2013 31 Aug 2012 28 Feb 2013
R’000 R’000 R’000
ASSETS
Non-current assets
Property, plant and 13,945 14,427 14,052
equipment
Intangibles 12,156 18,966 11,766
Deferred taxation 8,302 8,559 8,410
34,403 41,952 34,228
Current assets
Inventories 5,396 3,434 3,385
Trade and other receivables 6,049 5,323 4,376
Loans receivable 9 9 9
Finance lease receivables - 684 -
Bank balance and cash 165 400 2,588
11,619 9,850 10,358
TOTAL ASSETS 46,022 51,802 44,586
EQUITY AND LIABILITIES
Capital and reserves
Stated capital 131,722 124,059 131,722
Reserves 5,659 5,659 5,659
Retained earnings (103,551) (92,045) (101,614)
Total shareholders' funds 33,830 37,673 35,767
Non-current liabilities
Interest-bearing borrowings 199 259 230
Deferred taxation 3,058 3,392 3,115
3,257 3,651 3,345
Current liabilities
Trade and other payables 3,783 4,210 3,984
Bank overdraft 5,092 5,981 1,433
Current portion of interest- 60 287 57
bearing borrowings
8,935 10,478 5,474
TOTAL EQUITY AND LIABILITIES 46,022 51,802 44,586
Net asset value per share 1.77 2.48 1.88
(cents)
Condensed consolidated Unaudited Unaudited Audited
statement of cash flows for Six months Six months Year ended
the period ended 31 Aug 2013 31 Aug 2012 28 Feb 2013
R’000 R’000 R’000
(Loss) before taxation (1,886) (3,875) (13,571)
Depreciation 404 297 692
Movement on sale of assets - - 40
Interest received (14) (166) (186)
Finance costs 192 352 696
Impairments - - 7,200
(Increase) decrease in
working capital (3,886) 2,277 3,043
Cash utilised by operations (5,190) (1,115) (2,086)
Finance costs (192) (352) (696)
Finance income 14 166 186
-
Cash flows from operating
activities (5,368) (1,301) (2,596)
Cash flows from investing
activities (687) (495) (556)
Cash flows from financing
activities (28) 1,216 9,308
Net (decrease)increase in
cash and cash equivalents (6,083) (580) 6,156
Cash and cash equivalents at
beginning of period 1,155 (5,001) (5,001)
Cash and cash equivalents at
end of period (4,928) (5,581) 1,155
Condensed consolidated statement of changes in equity for the period ended
31 August 2013
Total
ordinary
Stated Trea- Total Reval- Re- Share-
capital sury stated uation tained holders
shares capital reserve earnings funds
R’000 R’000 R’000 R’000 R’000 R’000
Balance at 29
February 2012 -
audited 129,972 (6,741) 123,231 5,659 (88,181) 40,709
Total comprehensive
income for the
period - (3,864) (3,864)
Issue of shares 828 828 828
Balance at 31 August
2012 – unaudited 130,800 (6,741) 124,059 5,659 (92,045) 37,673
Issue of shares 7,663 7,663 7,663
Total comprehensive
income for the
period - (9,569) (9,569)
Balance at 28
February 2013 –
audited 138,463 (6,741) 131,722 5,659 (101,614) 35,767
Total comprehensive
loss for the period - (1,937) (1,937)
Balance at 31 August
2013 – unaudited 138,463 (6,741) 131,722 5,659 (103,551) 33,830
Condensed Group segmental analysis
Nutritional Pharmaceutical Services Consolidated
Foods
R’000 R’000 R’000 R’000
Business segments
for the six months ended 31
August 2013 - unaudited
Revenue from external sales 16,403 2,821 - 19,224
Profit (Loss) before tax (1,397) 184 (673) (1,886)
Taxation (51)
Loss for the period (1,937)
for the six months ended 31
August 2012 - unaudited
Revenue from external sales 14,833 2,694 - 17,527
Profit (Loss) before tax (1,340) 288 (2,823) (3,875)
Taxation 11
Loss for the period (3,864)
for the year ended 28
February 2013 - audited
Revenue from external sales 29,014 5,164 - 34,178
Profit (Loss) before tax (5,242) (3,144) (5,185) (13,571)
Taxation 138
(Loss) for the year (13,433)
COMMENTARY
Basis of presentation
The condensed interim financial statements have been prepared in accordance
with International Financial Reporting Standards (IFRS) and IAS 34 – Interim
Financial Reporting as issued by the International Accounting Standards
Board (IASB), The SAICA Financial Reporting Guides, the Listings
Requirements of the JSE Limited and the South African Companies Act, No 71
of 2008, as amended. They have been prepared on the historical cost basis,
except for certain financial instruments which are measured at fair value or
at amortised cost. The significant accounting policies and methods of
computation are consistent in all material respects with those applied in
the previous financial year, except for the adoption of improved, revised or
new standards and interpretations. The aggregate effect of these changes in
respect of the period ended 31 August 2013 is nil.
The condensed financial results have been prepared under the supervision of
the Chief Financial Officer, CD Angus CA(SA).
Nature of business
The Group is a producer of a variety of fortified dry food products across
various categories, as well as pharmaceutical and complementary medicines
and supplements. Its main activities comprise of the extrusion, blending and
packing of its own branded products as well as contract manufacturing for
3rd party principles.
Overview
Improvements in the Groups operating loss were largely as a result of the
operational efficiency and business improvement initiatives presented at the
February 2013 year-end announcement made in May 2013. Those initiatives
remain priority and are expected to continue to bear fruit in the future.
The Group remains committed to providing nutritious high quality staple
foods at affordable prices to all Southern African households as well as
affordable pharmaceuticals to cater for basic family healthcare. The current
focus of the Group is on long-term growth by expanding its revenue streams
via entry into the FMCG trade. To this end the Group has recently attained
listings for some of its branded products with the major mainstream
retailers and will look to go to market during the ensuing 6 months.
The Group has entered into two license agreements for distribution
throughout SADC on an exclusive rights basis. The first agreement is with
Ganeden Biotech, Inc. in the USA for the addition of its patented “BC30”
probiotic into the manufacture of Nutritional Foods range of fortified
instant products.
The second agreement is with ACN Chemicals UK Limited for the distribution
of its range of water purification products that are used in both the
domestic and industrial sectors of the market.
Financial overview
Revenue increased by 10% to R19,2 million from R17.5 million for the same
corresponding period. The operating losses decreased by 54%.
Headline earnings and earnings improved by 62% to a loss of R1,937 million,
from a loss of R3,864 million for the same corresponding period. This
resulted in a Headline and Earnings loss per share of 0,10 cents compared to
0,26 cents per share in the corresponding period.
Gearing remains low at 13,7% compared to 14,8% at 31 August 2012.
Events after the reporting period
Ms GA Verga resigned as Company Secretary with effect from
30 September 2013.
Ms JA Etchells has been appointed as Company Secretary with effect from 14
October 2013.
There are no other material events after the period ended 31 August 2013 to
report on.
Deferred Tax Assets
The group is made up of three trading companies and the holding company. Two
of the companies in the Group earned a taxable income and it is probable
that taxable profit will be available in the future in order to utilise the
assessed losses available. The deferred tax asset was therefore raised on
these two companies assessed losses. These companies (separate taxable
entities) did not suffer a loss in the current period in the tax
jurisdiction to which the deferred tax assets relates. A deferred tax asset
has also been recognised on the assessed loss of the other trading company
to the extent of the deferred tax liability arising from capital allowances
on the property, plant and equipment.
Going concern
Shareholders are advised that the unaudited interim results for the six
months ended 31 August 2013 have been prepared on the going concern concept.
The annual report for the year ended 28 February 2013 contained emphasis of
matter as to going concern.
Changes to the Group’s board
The following changes to the board of directors occurred during the past
financial period:
- Mr Anthony Spanjaard was appointed as Group Sales Director effective 21
August 2013.
On behalf of the board
R.S.Etchells
Chief Executive Officer
Umhlanga Rocks
24 October 2013
Registered office
Suite 3, Ground Floor, 49 Richefond Circle, Ridgeside, 4319
Tel: +27 31 584 7100
Directors
RS Etchells (Chief Executive Officer)
CD Angus (Chief Financial Officer)
JA Etchells (Non-executive)
TR Hendry (Independent Non-executive)
AR Pinfold (Non-executive)
ARJ Spanjaard (Executive-Group Sales Director)
GR Wambach (Independent Non-executive Chairman)
Designated advisors: PSG Capital Proprietary Limited
Transfer secretaries: Link Market Services South Africa Proprietary Limited
13th Floor, Rennie House, 19 Ameshoff Street, Braamfontein, Johannesburg,
2001
Date: 24/10/2013 04:40:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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