To view the PDF file, sign up for a MySharenet subscription.

ARGENT INDUSTRIAL LIMITED - Abridged Audited Condensed Consolidated Results for the year ended 31 March 2914 and Notice of AGM

Release Date: 27/06/2014 11:40
Code(s): ART     PDF:  
Wrap Text
Abridged Audited Condensed Consolidated Results for the year ended 31 March 2914 and Notice of AGM

Argent Industrial Limited
Registration number 1993/002054/06
(Incorporated in the Republic of South Africa)
Share code : ART       ISIN code : ZAE000019188
(“the group” or “the company”)

ABRIDGED AUDITED CONDENSED CONSOLIDATED RESULTS FOR THE YEAR
ENDED 31 MARCH 2014 AND NOTICE OF ANNUAL GENERAL MEETING

FINANCIAL HIGHLIGHTS
REVENUE                                   R1.88 billion
OPERATING LOSS                            R184.1 million
NET ASSET VALUE per share (cents)         1,242.4 cents
GEARING                                   12.1%
LOSS BEFORE INTEREST, TAXATION,
DEPRECIATION AND AMORTISATION (EBITDA)    R145.8 million

The condensed financial statements are presented on a consolidated basis

Consolidated income statements for the year           Audited      Audited
ended 31 March 2014                                      2014         2013

R’000

Revenue                                             1,880,476    1,850,430
Operating profit before finance costs and
restructuring                                          79,303      126,233
Restructuring adjustments                            (263,460)           -
Operating(loss)/profit before finance costs          (184,157)     126,233
Finance income                                            987        1,824
Finance costs                                         (27,246)     (30,125)
(Loss)/profit before taxation                        (210,416)      97,932
Taxation                                               17,359      (21,660)
(Loss)/profit for the year                           (193,057)      76,272
Attributable to equity holders of the
 - Parent                                            (193,575)      76,182
 - Non-controlling interest                               518           90
                                                     (193,057)      76,272

Basic (loss)/earnings per share (cents)                (211.4)        83.2
Diluted (loss)/earnings per share (cents)              (211.4)        83.2
Headline earnings per share (cents)                      14.6         85.9
Diluted headline earnings per share (cents)              14.6         85.9
Dividends per share (cents)                              14.0         12.0
Supplementary information
Shares in issue (‘000)
- At end of period                                     91,540       91,540
- Weighted average                                     91,561       91,540
- Diluted weighted average                             91,561       91,540
Cost of sales (R'000)                               1,464,253    1,364,725
Depreciation and amortisation (R'000)                  38,388       35,772
Restructuring adjustments (R'000):
Impairment of property, plant and equipment            93,221            -
Impairment of intangible assets                       121,803            -
Automotive stock losses                                31,524            -
Retrenchments                                             850            -
Closure of loss-generating businesses                  16,062            -
         Impairment of plant and equipment              3,192            -
         Stock losses                                   9,507            -
         Retrenchments                                  3,363            -

Restructuring adjustments                             263,460            -

Calculation of headline earnings (R’000)
(Loss)/earnings attributable to ordinary
shareholders                                       (193,575)        76,182
Loss on disposal of property, plant and
equipment                                             2,532          2,279
Impairment of property, plant and equipment          96,413            799
Impairment of intangible assets                     121,803              -
Total tax effects of adjustments                   (13,770)          (638)

Headline earnings attributable to ordinary
shareholders                                          13,403        78,622



Consolidated statement of comprehensive income     Audited        Audited
for the year ended 31 March 2014                      2014           2013

R’000

(Loss)/profit for the year                        (193,057)       76,272
Other comprehensive income for the period
Items that may be subsequently reclassified to
profit and loss
Exchange differences on translating foreign
operations                                            (529)         185
Items that will not be subsequently
reclassified to profit and loss
Revaluation of land and buildings                   (6,931)      (27,969)
Tax effect of above transactions                      1,334        6,649
Total other comprehensive (loss)/income for the 
year                                               (199,183)      55,137
Attributable to equity holders of the
 - Parent                                          (199,701)      55,047
 - Non-controlling interest                              518          90
                                                    (199,183)     55,137


Consolidated statements of financial position    Audited     Audited
for the year ended 31 March 2014                   2014       2013

 R’000

ASSETS
Non-current assets
Property, plant and equipment                     726,018     820,390
Intangible assets                                 172,866     294,671
Long-term loan                                     13,477      12,496
Deferred taxation                                  13,686       6,617
                                                  926,047    1,134,174

Current assets
Inventories                                       471,353     542,949
Trade and other receivables                       338,881     369,522
Bank balance and cash                                 234         348
                                                  810,468     912,819


Non-current assets held for sale                    8,500      14,793
TOTAL ASSETS                                    1,745,015   2,061,786


EQUITY AND LIABILITIES
Capital and reserves
Share capital and premium                         451,366     451,129
Reserves                                           30,626      38,270
Retained earnings                                 655,323     860,225
Attributable to owners of the parent            1,137,315   1,349,624
Non-controlling interest                            9,769       9,251
Total shareholders' funds                       1,147,084   1,358,875


Non-current liabilities
Interest-bearing borrowings                        93,197     111,656
Deferred taxation                                  59,598      74,798
                                                  152,795     186,454
Current liabilities
Trade and other payables                          236,648     308,454
Taxation                                              159       2,272
Bank overdraft                                    162,369     143,616
Current portion of interest-bearing borrowings     45,960      62,115
                                                  445,136     516,457

TOTAL EQUITY AND LIABILITIES                    1,745,015   2,061,786

Net asset value per share (cents)                 1,242.4     1,474.4



Condensed consolidated statements of cash flows         Audited         Audited
for the year ended 31 March 2014                           2014            2013

R’000

Cash generated from operations                          102,780         150,582
Finance income                                              987           1,824
Finance costs                                           (27,246)        (30,125)
Dividends paid                                          (13,216)        (11,073)
Normal taxation paid                                     (5,690)         (2,436)
Cash flows from operating activities                     57,615         108,772
Cash flows from investing activities                    (42,105)        (69,997)
Cash flows from financing activities                    (34,377)        (53,040)
Net decrease in cash and cash equivalents               (18,867)        (14,265)
Cash and cash equivalents at beginning of year         (143,268)       (129,003)
Cash and cash equivalents at end of year               (162,135)       (143,268)


Consolidated statements of changes in
equity for the year ended 31 March 2014  
                                         Share              Share           Treasury
                                        capital            premium         shares

                                          R 000            R 000           R 000
Balance at 31 March 2012                  4,825          540,818         (94,514)
Share-based payments                          -                -               -
Total comprehensive income                    -                -               -
Dividends – current interim and prior
final                                         -                -               -

Less dividend on treasury shares              -                -               -
Balance at 31 March 2013                   4,825          540,818         (94,514)
Net treasury movement                          -               -              237
Share-based payments                           -               -               -
Transfer of reserve to retained
                                               -               -               -
earnings
Total comprehensive loss                       -               -               -
Dividends – current interim and prior
                                               -               -               -
final
Less dividend on treasury shares               -               -               -
Balance at 31 March 2014                   4,825         540,818         (94,277)


Consolidated statements of changes in      Employee                       Foreign
equity for the year ended                    share                       currency
31 March 2014                             incentive        Revaluation translation
(continued)                                reserve           reserve      reserve
                                            R 000             R 000       R 000
Balance at 31 March 2012                      1,907          66,365       (8,994)
Share-based payments                            127               -            -
Total comprehensive income                        -         (21,320)         185
Dividends – current interim and prior
                                                  -               -            -
final
Less dividend on treasury shares                  -               -            -
Balance at 31 March 2013                      2,034          45,045       (8,809)
Net treasury movement                             -               -            -
Share-based payments                            371               -            -
Transfer of reserve to retained
                                             (1,889)              -            -
earnings
Total comprehensive loss                          -          (5,597)        (529)
Dividends – current interim and prior
                                                  -               -            -
final
Less dividend on treasury shares                  -               -            -
Balance at 31 March 2014                          516        39,448       (9,338)

Consolidated statements
of changes in equity for                   Total
the year ended                         attributable     Non-        Total
31 March 2014              Retained    to owners of controlling shareholders’
(continued)                earnings     the parent    interest      funds

                            R 000         R 000             R 000        R 000

Balance at 31 March 2012    795,116     1,305,523             9,161     1,314,684
Share-based payments              -           127                 -          127
Total comprehensive
                             76,182        55,047                90       55,137
income
Dividends – current
                            (11,578)      (11,578)                  -    (11,578)
interim and prior final
Less dividend on
                                505           505                   -        505
treasury shares
Balance at 31 March 2013    860,225     1,349,624             9,251     1,358,875
Net treasury movement             -           237                 -           237
Share-based payments              -           371                 -           371
Transfer of reserve to
                              1,889                -              -             -
retained earnings
Total comprehensive loss   (193,575)     (199,701)              518     (199,183)
Dividends – current
                            (13,508)      (13,508)                  -    (13,508)
interim and prior final
Less dividend on
                                292           292                   -        292
treasury shares
Balance at 31 March 2014    655,323     1,137,315             9,769     1,147,084
                                                         Steel
Segmental Review                     Manufacturing      trading       Automotive
                                         R 000           R 000          R 000
Business Segments
for the year ended 31 March 2014
Revenue from external sales               967,076        657,920        192,255
Profit/(loss) before taxation              60,655         (2,451)        (9,391)
Taxation
Loss for the year

for the year ended 31 March 2013
Revenue from external sales               913,929        635,551        231,107
Profit/(loss) before taxation              77,768          5,575         11,102
Taxation
Profit for the year


Segmental Review                                     Restructuring
(continued)             Watch list   Properties       adjustments  Consolidated

                          R 000         R 000           R 000           R 000
Business Segments
for the year ended 31
March 2014
Revenue from external
                          60,747          2,478             -          1,880,476
sales
Profit/(loss) before
                          (6,078)        10,309         (263,460)       (210,416)
taxation
Taxation                                                                  17,359
Loss for the year                                                       (193,057)

for the year ended 31
March 2013
Revenue from external
                          67,822          2,021                -        1,850,430
sales
Profit/(loss) before
                          (2,649)         6,136                -           97,932
taxation
Taxation                                                                 (21,660)
Profit for the year                                                       76,272




                                          South       Rest of the
                                         Africa          world    Consolidated
                                          R 000          R 000          R 000
Geographical segments
for the year ended 31 March 2014
Revenue from external sales           1,816,887           63,589      1,880,476
(Loss)/profit before taxation         (216,577)           6,161       (210,416)
Taxation                                                                 17,359
Loss for the year                                                     (193,057)
for the year ended 31 March 2013
Revenue from external sales           1,800,739           49,691      1,850,430
Profit before taxation                   94,857            3,075         97,932
Taxation                                                               (21,660)
Profit for the period                                                    76,272

FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS

Financial assets and financial liabilities measured at fair value in the
statement of financial position are grouped into three levels of a fair
value hierarchy.

The three levels are defined based on the observability of significant
inputs to the measurement, as follows:
- Level 1: quoted prices (unadjusted) in active markets for identical
           assets or liabilities;
- Level 2: inputs other than quoted prices included within Level 1 that are
           observable for the asset or liability, either directly or indirectly;
- Level 3: unobservable inputs for the asset or liability.

The following table sets out the financial assets and liabilities that are
measured and recognised at fair value:

31 March 2014                              Level 1      Level 2   Level 3   Total
                                            R 000        R 000     R 000    R 000
Recurring fair value measurements

Financial liabilities:
Forward exchange contracts                          -       720         -      720

Total recurring financial liabilities               -       720         -      720


31 March 2013                              Level 1      Level 2   Level 3   Total
                                            R 000        R 000     R 000    R 000
Recurring fair value measurements

Financial assets:
Forward exchange contracts                          -     2,203         -    2,203

Total recurring financial assets                    -     2,203         -    2,203


There have been no transfers between levels 1 and level 2 recurring fair
value measurements during 2013 and 2014.

The group's policy is to recognise transfers into and out of the different
fair value hierarchy levels at the date the event or change in circumstances
that caused the transfer occurred.

MEASUREMENT OF FAIR VALUE OF FINANCIAL INSTRUMENTS

The group’s finance team performs valuations of financial items for
financial reporting purposes, including Level 3 fair values, in consultation
with third party valuation specialists for complex valuations. Valuation
techniques are selected based on the characteristics of each instrument,
with the overall objective of maximising the use of market-based
information. The finance team reports directly to the financial director
(FD) and to the audit and risk committee. Valuation processes and fair value
changes are discussed among the audit and risk committee and the valuation
team at least every year, in line with the group’s reporting dates. The
valuation techniques used for instruments categorised in Levels 2 are
described below.

FOREIGN CURRENCY FORWARD CONTRACTS (LEVEL 2)
The group’s foreign currency forward contracts are not traded in active
markets. These have been fair valued using observable forward exchange rates
and interest rates corresponding to the maturity of the contract. The
effects of non-observable inputs are not significant for foreign currency
forward contracts.

FINANCIAL OVERVIEW
Argent Industrial Limited has been through a very challenging year,
culminating in a restructuring, which resulted in the closure of four
operations, as well as the commitment to sell a number of non-core assets.

OPERATIONS REVIEW
The worsening economic environment in South Africa over the past number of
years has negatively affected the markets in which the group operates. In
addition, the high number of labour strikes at various customers and a
sharply weakened Rand exchange rate during the reporting period also
impacted on earnings.

Although the diverse nature of the group’s operation compensated for these
negative influences to some extent, it was clear to management that a
thorough investigation into various alternatives to enhance group
performance was necessary. It was therefore decided to restructure the group
to ensure the sustainability of earnings and improved shareholder value in
the medium to long term.

The restructuring had a negative effect in the net amount of R263 million on
the group’s earnings and comprised:
- Impairments of R155 million in the underperforming automotive division,
  necessitated by the effect of continued weak consumer demand, as well as the
  number of new market entrants. A sharp increase in imported product also
  significantly reduced local content off-take;
- Property impairments of R38.3 million, of which R32.5 million relates to
  the group’s automotive factory, mentioned above, which operates in the
  depressed Ga-Rankuwa area;
- Impairments of R49 million regarding the investment in the highly
  competitive and, overtraded, paint and aluminium division; and
- The closure and subsequent consolidation to Durban, Cape Town and
  Johannesburg of four loss-generating retail businesses in the steel trading
  and retail division at a cost of R20.5 million.

Had these abnormal write downs not occurred, the group’s normalised earnings
before tax would have been R82 million instead of the reported loss of
R210.4 million (compared to R113.2 million profit reported in the previous
financial year).

                                                     31 March    31 March
CALCULATION OF NORMALISED EARNINGS R’000
                                                       2014        2013
Profit before taxation as reported                   (210,416)     97,932
Loss on disposal of property, plant and equipment       2,532       2,279
Impairment of plant and equipment                      54,915           -
Impairment of property                                 38,306         799
Impairment of intangible assets                       121,803           -
Closure of loss-generating businesses                  16,062       7,797
Retrenchments (continuing operation)                      850       1,454
Specialist Steel Profiles foreign exchange loss        10,469           -
Automotive stock losses                                31,524           -
Effect of country-wide strikes                         15,911       2,938
Normalised earnings                                    81,956     113,199

It should be noted that the group, as part of its restructuring, is in the
process of selling 12 of its 22 properties, considered to be non-core, for
an amount of approximately R278 million. This positive offset is expected to
be realised by the financial year ended March 2015.

The board is confident that the above restructuring and property realisation
will unlock value and enable the group to focus on its core businesses of
manufacturing and trading. These operations play to the group’s skills and
experience, whilst operating in the areas that will benefit from any growth
in the economy.

The effects of labour strikes at various customers, including the protracted
platinum industry strike, are estimated to have cost the group R15.9
million.

SEGMENT REVIEW
The group has, as a result of the restructuring, changed its segment report
to show the core manufacturing companies, the steel trading companies, the
automotive operations, the watch list segment and the property division.

The manufacturing companies delivered growth in revenue of 5.8%, but a
decline in profit before taxes (PBT) of 22.0%. The drop in PBT can be
attributed to a competitive trading environment and increased input costs;
with one of the contributing factors being the weakening exchange rate and
resultant increased costs. The operating margin of the manufacturing
companies, however, remains the highest in the group. The best performers
were Toolroom Services, Tricks Wrought Iron Services and Xpanda Security.

The steel trading companies had a difficult year and were downsized in line
with the market outlook. This segment delivered a 3.5% growth in revenue,
and a 143% decline in PBT. Again, this is the result of an over-traded
market with increased competition on a trade-by-trade basis.

The automotive operations bore the brunt of the restructuring and are now
correctly capitalised to operate in the current market conditions. These
operations made an operating loss of R9.3 million and are expected to turn
profitable by the second half of 2015.

The watch list segment comprises Cedar Paint. This company is not currently
achieving the correct manufacturing margin, a problem which has been further
compounded by the loss of R6.8 million in revenue as a result of the
platinum industry strike. An operating loss of R6 million was reported. The
company has been revalued to what the directors of Argent believe is a
marketable value. Cedar Paint is being closely monitored and, as such, is on
the group’s watch list.

PROPERTIES
The group is in the process of selling 12 of its 22 properties for
approximately R278 million. The remaining ten properties are not being sold
at this stage, as they are either (i) an integral part of a business, (ii) a
business on the watch list or (iii) a property that is in the process of
being expanded. The net book value of the group’s 22 properties is R415.9
million. This will decrease to R137.4 million after the sale of the
properties. It is anticipated that the properties will be sold at, or an
amount exceeding, book value.

OUTLOOK
The effects of labour strikes at various customers, including the protracted
platinum industry strike, are estimated to have cost the group R15.9 million
in the year to March 2014. As a result of the continuous country-wide
strikes, the group has committed itself to an automation programme that will
reduce the number of staff from the existing 2 774 to 2 400 by the end of
2015. The cost of these retrenchments will be absorbed in the 2015 financial
year and the benefit felt from the 2016 financial year onwards.

The group has created its core business around its branded manufacturing
companies and these businesses are closely correlated to general economic
growth. The group’s focus on production automation, improving internal
efficiencies, and on growing the market share of the respective brands will
therefore be pivotal in outperforming the constricted economy. Without
exception, the businesses in manufacturing have strong and positive
outlooks, and a sustained run without the abnormal interruptions of extended
strikes should see this segment grow its contribution to the Argent Group.

The restructured steel division, with a lower cost base, is now better
suited to operating outside the previous constraint of weak government
infrastructure spend. It now has a stock range that covers most fast moving
items used in the manufacturing industry.

Cedar Paint is already producing better results and improved margin, even
with the prolonged mining strikes. The business should therefore become
profitable once the strikes end.

Finally, the board of directors of Argent (“the board”) has earmarked the
approximately R278 million proceeds from the property sale as follows:
- Repayment of bank bonds of R 84.2 million;
- Share buy-backs;
- Investing in existing businesses with growth potential, as well as in new
  businesses, particularly in the high growth area of branded manufacturing in
  which the group has skills and experience and is already performing well;
  and
- Increasing exports to Africa in the medium term.

The Argent management team and the board believe that the group is now in a
much stronger position to provide higher returns for shareholders over time.

JSE LIMITED (“THE JSE”) PRO ACTIVE MONITORING OF ANNUAL FINANCIAL STATEMENTS
The JSE reviewed Argent Industrial Limited’s 2013 Annual Report as part of
their pro-active monitoring process. During the process it was identified
that the group had omitted some disclosure relating to the disposal of the
Hendor Mining Supplies property which was sold at fair value to NWN
Automotive Precision Engineering, a company controlled by certain of the
directors. The selling price was settled in cash.

We would like to present our users with the additional information
previously omitted in the 2013 Annual Report in this SENS announcement.
Certain other matters identified by the JSE have been included in the 2014
Annual Report which will be available on the company’s website on 27 June
2014.

The revised note 3. PROPERTY, PLANT AND EQUIPMENT is disclosed as follows:

                                                     Furniture,
                          Land &   Plant &    Motor  fittings &      Total
2013                    buildings equipment vehicles equipment        2013
                           R 000    R 000     R 000     R 000        R 000

Carrying amount at
beginning of year       455,581    319,358    49,398     6,427       830,764
Gross carrying amount   461,938    455,563    90,663    26,000     1,034,164
Accumulated
depreciation             (6,357) (136,205) (41,265)     (19,573)   (203,400)

Exchange difference
on translation of
foreign operation         1,185        877        29         59       2,150
Change in fair value
of land and buildings
– reversal of
revaluation surplus
due to impairment       (27,969)         -         -          -      (27,969)
Reclassification to
non-current assets
held for sale           (14,792)         -         -         -       (14,792)
Additions                47,849     20,663     7,842     2,537        78,891
Disposals                (6,375)    (1,739)   (3,786)     (191)      (12,091)
Impairments                (799)         -         -         -          (799)
Depreciation               (194)   (25,022)   (8,045)   (2,503)      (35,764)
Carrying amount at
end of year             454,486    314,137    45,438     6,329       820,390
Gross carrying amount   460,604    471,647    87,675    26,287     1,046,213
Accumulated
depreciation             (6,118) (157,510) (42,237)     (19,958)   (225,823)

The carrying amount would have been R395 million had land and buildings been
accounted for using the cost model.

Certain items of property, plant and equipment are encumbered. A register
containing details of the property, plant and equipment is available for
inspection at the registered office of the company. Land and buildings is
recognised at the revalued amount, which is based on directors valuations
prepared every year at year end in terms of the group's accounting policy.
The effective date of the revaluations was 31 March 2013. The carrying
amount of properties is the fair value as determined by the directors less
subsequent accumulated depreciation and impairment losses. Adjustments in
the valuation of the properties are recorded in the revaluation reserve
which is amortised over the remaining useful life of the property. In
determining the fair value of the properties the assumed discount rates
applied for future income streams range between 10% and 12% and take into
account the type of the property and the property's location. The directors
assessed the useful lives of the buildings to be 50 years, and the residual
values to be equal to their carrying values.
In November 2012, a related party proposed to purchase the Hendor Mining
Supplies property. A condition of the sale agreement was to obtain an
independent third party valuation of the property in order to determine the
selling price. This was performed by Icon Valuations CC on 10 December 2012.
The main differences between the independent valuers valuation and the value
previously determined by the directors relates to the capitalisation rate
used for the specific area. The purchase offer was a once off event to a
specific building and did not require a full revaluation of the entire class
of buildings at that stage.

DIVIDEND
The directors of Argent have approved and declared a final gross dividend of
7 cents per share for the year ended 31 March 2014. Total ordinary dividends
per share in respect of the financial year to 31 March 2014 therefore
amounts to 14 cents (2013: 13 cents).

The following dates will apply to the above-mentioned final dividend:

Last day to trade cum dividend:   Friday,   17   October   2014
Trading ex dividend commences:    Monday,   20   October   2014
Record date:                      Friday,   24   October   2014
Dividend payment date:            Monday,   27   October   2014

Share certificates may not be dematerialised or re-materialised between
Monday, 20 October 2014, and Friday, 24 October 2014, both days inclusive.

In determining the dividends tax (DT) of 15% to withhold in terms of the
Income Tax Act (No. 58 of 1962) for those shareholders who are not exempt
from the DT, no secondary tax on companies (STC) credits have been utilised.
Shareholders who are not exempt from the DT will therefore receive a
dividend of 5.95 cents per share net of DT. The company has 96 490 604
ordinary shares in issue and its income tax reference number is
9096/002/71/3. The dividend has been declared from income reserves.

The above dates are subject to change. Any changes will be released on SENS.
Where applicable, dividends in respect of certificated shares will be
transferred electronically to shareholders’ bank accounts on the payment
date. In the absence of specific mandates, dividend cheques will be posted
to shareholders. Ordinary shareholders who hold dematerialised shares will
have their accounts at their central securities depository participant
(CSDP) or broker credited/updated on Monday, 27 October 2014.

BASIS OF PRESENTATION
The condensed financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS), the presentation and
disclosure requirements of IAS 34 – Interim Financial Reporting, the South
African Institute of Chartered Accountants’ (“SAICA”) Financial Reporting
Guides as issued by the Accounting Practices Committee, the Financial
Reporting Pronouncements as issued by the Financial Reporting Standards
Council and in compliance with the Companies Act of South Africa (No. 71 of
2008) and the Listings Requirements of the JSE Limited. The accounting
policies are consistent with those of the previous financial period, except
for the adoption of improved, revised or new standards and interpretations.
The aggregate effect of these changes in respect of the year ended 31 March
2014 is nil. The condensed financial statements have been prepared under the
supervision of the Financial Director, Ms SJ Cox CA (SA). Any reference to
future financial performance included in this announcement has not been
reviewed or reported on by the company's auditors.
EVENTS AFTER THE REPORTING PERIOD
Subsequent to year end, the board commenced the process of selling 12 of its
22 non-core properties for an amount of approximately R278 million. This
positive offset is expected to be realised in the financial year ended March
2015. The board has earmarked the proceeds to the repayment of bank bonds,
share buy-backs, investment in new businesses, particularly in high growth
areas of branded manufacture in which the group has the skills and is
already performing well, and investing in existing businesses with growth
potential.

GOING CONCERN
Shareholders are advised that the audited results for the year ended 31
March 2014 have been prepared on the going-concern basis. This basis
presumes that funds will be available to finance future operations and that
the realisation of assets and settlement of liabilities, contingent
obligations and commitments will occur in the ordinary course of business.

CONDENSED ANNUAL FINANCIAL STATEMENTS AND NOTICE OF ANNUAL GENERAL MEETING
The condensed annual financial statements for the financial year ended
31 March 2014, is expected to be posted to shareholders on or about the 27
June 2014 (“the Condensed Annual Financial Statements”). The annual report
will be available on the company’s website, www.argent.co.za, on 27 June
2014.

Notice is hereby given that Argent’s annual general meeting (AGM) of
shareholders will be held in the Argent Industrial Limited boardroom, first
floor, Ridge 63, 8 Sinembe Crescent, La Lucia Ridge Office Estate, Umhlanga,
on Tuesday, 28 October 2014 at 14:00 to transact the business as stated in
the notice of AGM circulated together with the condensed annual financial
statements. The date on which shareholders must be recorded as such in the
share register to be eligible to vote at the AGM is Friday, 17 October 2014,
with the last day to trade being Friday, 10 October 2014.

AUDIT OPINION
The auditors, Grant Thornton (D Nagar as designated auditor), have audited
the group’s financial statements for the year ended 31 March 2014 and their
unqualified audit report is available for inspection at the company’s
registered office.

These condensed results are extracted from audited information, but are not
in itself audited. The directors therefore take full responsibility for the
preparation of the condensed results and that the financial information has
been correctly extracted from the underlying financial statements.

The auditors’ report does not necessarily cover all of the information
contained in this announcement/financial report. In order to obtain a full
understanding of the nature of the auditors’ work, shareholders are advised
to obtain a copy of that report together with the accompanying financial
information from the registered office of the company.

On behalf of the board

TR Hendry CA (SA)
Chief Executive Officer
27 June 2014
Umhlanga Rocks
REGISTERED OFFICE
First floor, Ridge 63, 8 Sinembe Crescent, La Lucia Ridge Office Estate,
4019
Tel: +27 31 791 0061

AUDITORS
Grant Thornton (D Nagar as designated auditor)

SPONSORS
PSG Capital (Pty) Ltd

TRANSFER SECRETARIES
Link Market Services South Africa (Pty) Ltd, 13th floor, Rennies House, 19
Ameshoff Street, Johannesburg, 2001

COMPANY SECRETARY
Jaco Dauth

DIRECTORS
CD Angus (Independent Non-executive), Ms SJ Cox (Financial Director), PA Day
(Independent Non-executive), TR Hendry (Chief Executive Officer), Mrs JA
Etchells (Independent Non-executive), AF Litschka, K Mapasa (Independent
Non-executive) and T Scharrighuisen (Non-executive Chairman).

Date: 27/06/2014 11:40:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story