Wrap Text
Unaudited interim condensed consolidated results for the six months ended 31 December 2013
AFRICAN & OVERSEAS ENTERPRISES LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NO.: 1947/027461/06)
("THE COMPANY" OR "THE GROUP" OR "AFRICAN & OVERSEAS")
JSE SHARE CODES: AOO - AON - AOVP
ISIN: ZAE000000485 - ZAE000009718 - ZAE000000493
UNAUDITED INTERIM CONDENSED CONSOLIDATED GROUP RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2013
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at As at As at
31 December 31 December 30 June
2013 2012 2013
Unaudited Unaudited Audited
R'000 R'000 R'000
ASSETS
Non-current assets 135 549 99 591 114 458
Property, plant and equipment 108 819 80 516 89 631
Investment property 5 496 5 607 5 551
Intangible assets 9 263 5 835 8 010
Other investments 524 524 524
Deferred taxation 11 447 7 109 10 742
Current assets 164 834 216 188 204 901
Inventories 77 039 71 802 88 231
Trade and other receivables 13 914 3 160 11 187
Forward exchange contracts 2 534 - 3 660
Income tax receivable 1 381 1 989 1 656
Cash and cash equivalents 69 966 139 237 100 167
Total assets 300 383 315 779 319 359
EQUITY AND LIABILITIES
Capital and reserves 247 602 263 750 260 464
Share capital 1 200 1 200 1 200
Share premium 6 076 6 076 6 076
Other reserves 548 535 544
Retained earnings 129 553 137 774 135 692
Non-controlling interest 110 225 118 165 116 952
Non-current liabilities 17 257 14 797 16 123
Post-retirement liability 2 744 3 100 2 776
Accrued operating lease liability 12 608 10 880 11 168
Deferred taxation 1 905 817 2 179
Current liabilities 35 524 37 232 42 772
Provisions - - 3 077
Trade and other payables 35 417 35 984 39 631
Forward exchange contracts - 1 200 -
Income tax payable 107 48 64
Total equity and liabilities 300 383 315 779 319 359
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2013 2012 2013
% Unaudited Unaudited Audited
change R'000 R'000 R'000
Revenue 3.3 265 128 256 743 483 517
Turnover 3.6 261 138 251 973 474 438
Cost of sales (138 432) (130 774) (231 176)
Gross profit 1.2 122 706 121 199 243 262
Employment costs (6.5) (48 406) (51 777) (104 281)
Occupancy costs 9.7 (46 239) (42 154) (84 102)
Depreciation and amortisation 5.5 (9 239) (8 757) (17 585)
Other operating costs (18.7) (26 648) (32 794) (60 252)
Rental income 112.1 1 419 669 1 599
Royalties 25.0 695 556 1 009
Operating loss (56.3) (5 712) (13 058) (20 350)
Dividends received 16 12 13
Interest income 1 860 3 533 6 458
Interest expense (153) (182) (241)
Loss before tax (58.9) (3 989) (9 695) (14 120)
Income tax 921 2 238 3 380
Loss for the period (58.9) (3 068) (7 457) (10 740)
Other comprehensive (loss)/income
Net change in fair value of
available-for-sale financial assets - - -
Total comprehensive loss for the period (3 068) (7 457) (10 740)
Loss attributable to:
Ordinary and 'N' ordinary shareholders (2 153) (4 574) (6 659)
Preference shareholders 165 165 181
(Loss)/profit attributable to equity
holders of the parent (1 988) (4 409) (6 478)
Non-controlling interest (1 080) (3 048) (4 262)
Loss for the period (3 068) (7 457) (10 740)
Total comprehensive loss attributable to:
Ordinary and 'N' ordinary shareholders (2 153) (4 574) (6 659)
Preference shareholders 165 165 181
Loss attributable to equity holders
of the parent (1 988) (4 409) (6 478)
Non-controlling interest (1 080) (3 048) (4 262)
Total comprehensive (loss)/income for
the period (3 068) (7 457) (10 740)
Reconciliation of headline earnings
Loss attributable to equity holders (2 153) (4 574) (6 659)
Adjusted for:
(Profit)/loss from disposal of property,
plant and equipment and intangible assets (473) (21) 43
Impairment loss on equipment and shopfitting - (56) (170)
Headline loss (2 626) (4 651) (6 786)
Basic loss per ordinary share (cents) (52.9) (18.9) (40.2) (58.5)
Headline loss per ordinary share
(cents) (43.5) (23.1) (40.8) (59.6)
Weighted average number of equity
shares used in:
- earnings per share (000's) 11 387 11 387 11 387
The company has no dilutionary instruments in issue.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
As at As at As at
31 December 31 December 30 June
2013 2012 2013
Unaudited Unaudited Audited
R'000 R'000 R'000
Share capital 1 200 1 200 1 200
Share premium 6 076 6 076 6 076
Other reserves
Opening balance 544 535 535
Share-based payment expense 4 - 9
Net change in fair value of available-for-sale
financial assets - - -
Closing balance 548 535 544
Retained earnings
Opening balance 135 692 146 524 146 524
Loss for the period (1 988) (4 409) (6 478)
Preference dividends declared/paid (165) (165) (181)
Ordinary dividends paid (3 986) (3 986) (3 986)
Net effect of take-up of share options - 142 145
Change in degree of control - (332) (332)
Closing balance 129 553 137 774 135 692
Non-controlling interest
Opening balance 116 952 126 416 126 416
Loss for the period (1 080) (3 048) (4 262)
Preference dividends declared/paid (8) (8) (17)
Ordinary dividends paid (5 643) (5 643) (5 643)
Net effect of take-up of share options - 116 118
Change in degree of control - 332 332
Other 4 - 8
Closing balance 110 225 118 165 116 952
Total capital and reserves 247 602 263 750 260 464
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2013 2012 2013
Unaudited Unaudited Audited
R'000 R'000 R'000
Operating loss before working capital changes (1 671) (3 424) (2 971)
Working capital changes 7 741 2 967 (18 225)
Interest income 1 860 3 533 6 458
Interest expense (153) (182) (241)
Dividends paid (9 629) (9 629) (9 827)
Dividends received 16 12 13
Normal tax refunded/(paid) 260 3 (777)
Net cash outflow from operations (1 576) (6 720) (25 570)
Additions to property, plant and equipment (28 119) (15 785) (36 000)
Additions to intangible assets (1 506) - -
Proceeds from disposal of property, plant
and equipment and intangible assets 1 000 205 195
Net cash outflow from investing activities (28 625) (15 580) (35 805)
Proceeds from delivery of shares by share trust - 258 263
Net cash inflow from financing activities - 258 263
Net decrease in cash and cash equivalents (30 201) (22 042) (61 112)
Cash and cash equivalents at the beginning
of the period 100 167 161 279 161 279
Cash and cash equivalents at the end of
the period 69 966 139 237 100 167
GROUP SEGMENTAL REPORTING
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2013 2012 2013
Unaudited Unaudited Audited
R'000 R'000 R'000
Revenue
Total external retail revenue 261 833 252 529 475 447
Retail segment revenue 263 668 253 994 478 234
Intersegment revenue earned (1 835) (1 465) (2 787)
Total external property revenue 1 419 669 1 599
Property segment revenue 3 540 2 608 5 527
Intersegment revenue earned (2 121) (1 939) (3 928)
Dividends received 16 12 13
Interest income 1 860 3 533 6 458
Total group revenue 265 128 256 743 483 517
Segment operating loss
Retail (3 772) (10 149) (14 754)
Property (169) (96) (243)
Group services* (1 771) (2 813) (5 353)
Total group operating loss (5 712) (13 058) (20 350)
Depreciation and amortisation
Retail 9 001 8 647 17 308
Property 238 110 277
Total depreciation and amortisation 9 239 8 757 17 585
Segment assets
Retail 212 506 215 079 217 474
Property 49 382 23 390 32 672
Group services* 38 495 77 310 69 213
Total segment assets 300 383 315 779 319 359
Segment liabilities
Retail 45 373 45 656 51 333
Property 3 634 2 489 2 606
Group services* 3 774 3 884 4 956
Total segment liabilities 52 781 52 029 58 895
Capital expenditure
Retail 12 783 7 347 19 030
Property 16 842 8 438 16 970
Total capital expenditure 29 625 15 785 36 000
* Group services include corporate costs.
OTHER INFORMATION
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2013 2012 2013
Unaudited Unaudited Audited
R'000 R'000 R'000
Capital commitments
Authorised but not yet contracted for (R'000) 21 808 29 769 56 685
Authorised and contracted for (less
amounts already incurred) (R'000) 8 613 5 154 7 955
Gross profit margin (%) 47.0 48.1 51.3
Operating loss margin (%) (2.2) (5.2) (4.3)
Retail segment operating loss margin (%) (1.4) (4.0) (3.1)
NOTES
1 BASIS OF PRESENTATION OF FINANCIAL STATEMENTS
These condensed consolidated interim financial statements have been prepared in
accordance with the framework concepts and the measurement and recognition
requirements of International Financial Reporting Standards (IFRS), the
interpretations adopted by the International Accounting Standards Board, the
South African Institute of Chartered Accountants' Financial Reporting Guides as
issued by the Accounting Practices Committee and Financial Reporting Pronouncements
as issued by the Financial Reporting Standards Council and include disclosure as
required by IAS 34: Interim Financial Reporting, the Companies Act of South Africa
2008 and the JSE Listings Requirements.
The financial statements have been prepared using accounting policies that comply
with IFRS and which are consistent with those applied in the preparation of the
financial statements for the year ended 30 June 2013.
2 UNAUDITED RESULTS
These results have not been reviewed or reported on by the group's auditors. The
condensed consolidated interim financial statements have been prepared under the
supervision of Damian Johnson CA(SA) and were approved by the board of directors
on 4 March 2014.
3 PREFERENCE DIVIDEND
A dividend on the 6% cumulative participating preference shares for the six months
ended 31 December 2013 in the amount of R165 000 was declared by the board of
directors on 26 November 2013 and paid on 13 January 2014.
HIGHLIGHTS
- Revenue increased by 3.3% to R265.1 million (31 December 2012: R256.7 million)
- Operating loss reduced by 56.3% to (R5.7 million)(31 December 2012: (R13.1 million))
- Gross profit margin % decreased to 47.0% (31 December 2012: 48.1%)
- Headline loss per share reduced by 43.5% to (23.1 cents)(31 December 2012: (40.8 cents))
- Earnings loss per share reduced by 52.9% to (18.9 cents)(31 December 2012: (40.2 cents))
- Net asset value per share decreased by 6.1% to 2 174 cents (31 December 2012: 2 316 cents)
- Ordinary dividend per share paid amounted to 35 cents per share (31 December 2012: 35 cents)
COMMENTARY
The principal operating subsidiary Rex Trueform Clothing Company Limited reports as
follows:
"GROUP RESULTS
The group's performance improved for the six months ending 31 December 2013 when
compared to the corresponding period mainly due to the improved performance of the
retail segment. Turnover increased by 3.6% during the period, whereas the gross profit
increased marginally by 1.2%. Initiatives introduced contributed to the reduction in
operating expenses, which decreased by 3.6%.
The reduction in costs and the slight increase in the gross profit were the main
contributors to the improvement in the results for the six months ended
31 December 2013, whereby the loss reduced from R6.8 million (31 December 2012) to
R2.4 million. Accordingly, headline earnings for the six months ended 31 December 2013
amounted to a loss of 15.9 cents per share compared to a loss of 33.8 cents per share
in the corresponding period.
RETAIL
When compared to the corresponding comparable period the Queenspark retail segment
turnover increased by 3.6% from R252 million (31 December 2012) to R261 million,
whereas the gross margin decreased from 48.1% to 47%. The impact thereof resulted
in the gross profit increasing by R1.5 million. The decrease in the gross profit margin
percentage was partly influenced by the higher product costs resulting from the weaker
Rand. The retail segment reduced its operating costs by 3.4% partly as a result of
the reorganisation of this segment.
The above resulted in the retail operating loss of R3.8 million (2012: R12.4 million).
PROPERTY
The development of the Rex Trueform Office Park is nearing completion. Capital
expenditure of R36.5 million has been spent on the project to date, in line with
the budget.
PROSPECTS
RETAIL
The difficult retail market trading conditions will continue to make trading
challenging during the second half of the year. The business will continue to open
new stores, where feasible, in order to increase its trading space. The implementation
of the new ERP system should start to provide benefits during the 2015 financial year.
PROPERTY
It is anticipated that the major construction works in respect of the Rex Trueform
Office Park will be complete by the end of the financial year, whereafter tenancy
levels are expected to increase substantially.
Any reference to the future financial performance included in the above commentary
has not been reviewed or reported on by the company's external auditors and does not
constitute an earnings forecast."
Signed on behalf of the board
ML Krawitz PE Shub
(Chairman) (Chief Executive Officer)
Cape Town
6 March 2013
African & Overseas Enterprises Limited
(Incorporated in the Republic of South Africa) (Reg No.: 1947/027461/06) ("the group")
JSE share codes: AOO - AON - AOVP
ISIN: ZAE000000485 - ZAE000009718 - ZAE000000493
Registered office: Rex Buildings, 263 Victoria Road, Salt River, Cape Town, 7925
Directors: ML Krawitz+ (Chairman), PE Shub (Chief Executive Officer) (alt ML Krawitz),
CEA Radowsky, DS Johnson (FD), PM Naylor*, RV Orlin* and RW Rees (UK)*
+ Non-executive *Independent non-executive
Secretary: AT Snitcher
Transfer secretaries: Computershare Investor Services (Pty) Ltd, 70 Marshall Street,
Johannesburg, 2001
Sponsor: Java Capital
There were no changes to the board of directors during the year.
Websites: www.queenspark.com - www.rextrueform.com - www.rextrueformofficepark.com
Date: 06/03/2014 03:14:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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