AWETHU BREWERIES LIMITED - Provisional reviewed results for the year ended 30 June 2014.

Release Date: 15/10/2014 07:49
Code(s): AWT
 
Wrap Text
Provisional reviewed results for the year ended 30 June 2014.

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 2014

Condensed Statement of Comprehensive Income
                                        Year ended                Year ended
                                      30 June 2014                30 June 2013
                                        Reviewed                    Audited

                                               R                       R

Continuing operations
  Revenue                                    945   746            11 421 059
  Cost of sales                             (902   029)          (10 150 024)
  Gross profit                                43   717             1 271 035
  Operating expenses                        (755   577)             (924 843)
  Investment revenue                                 -                   524
  Finance costs                             (3     263)             (593 208)
  Fair value adjustment                 (2 927     199)                    -
  Operating loss                        (3 642     322)             (246 492)
  Taxation                                           -                     -
Total comprehensive loss                (3 642     322)             (246 492)

Basic and diluted loss per
share (cents)                                 (4.31)                  (0.29)

Headline loss per share (cents)                (0.85)                (0.29)

Basic number of shares in issue         84 556 909               84 556 909

Weighted average number of shares on which:
Basic loss 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 Financial Position
                                                      30 June         30 June
                                                        2014            2013
                                                      Reviewed        Audited
                                                         R               R
Assets
Non-Current Assets
Property, plant and equipment                           30 092         36 426
Investment Property                                  4 500 000      7 427 199
                                                     4 530 092      7 463 625
Current Assets
Trade and other receivables                            103 690         495   792
Cash and cash equivalents                                    -         152   803
Straight-lining of lease asset                               -          84   762
Total current assets                                   103 690         733   357
Total assets                                     4 633 782       8 196 982

Equity and Liabilities
Equity
Share capital                                   10 747 076      10 747 076
Accumulated loss                               (16 317 326)    (12 675 004)
                                                (5 570 250)     (1 927 928)
Liabilities
Non-Current Liabilities
Loan from shareholder                            8 054 113       8 006 782
                                                 8 054 113       8 006 782
Current Liabilities
Trade and other payables                           480 265         448 558
Bank Overdraft                                          84               -
Provisions                                       1 669 570       1 669 570
                                                 2 149 919       2 118 128

Total Equity and Liabilities                     4 633 782       8 196 982


Net Liability Value per share (cents)                  12.1             12.0

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 2012        845 569 9 901 507 10 747 076 (12 428 512)(1 681 436)
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)
Total comprehensive
loss for the year          -          -        -    (3 642 322)(3 642 322)
Balance at
30 June 2014        845 569 9 901 507 10 747 076 (16 317 326)(5 570 250)




Condensed Statement of Cash Flows
                                              30 June         30 June
                                              2014               2013
                                              Reviewed        Audited
                                                R                R
Cash flows from operating activities:
Cash used in operations                         (196 955)          (327 475)
Finance costs                                     (3 263)              (997)
Net cash from operating activities              (200 218)          (328 472)
Cash Flows from investing activities:
Interest income                                          -                524
Net cash from investing activities                       -                524
Cash flows from financing activities:
Movement in shareholder’s loan – inflow           47   331                -
Net cash from financing activities                47   331                -
Total cash movement for the year                (152   887)         327 948
Cash at beginning of year                        152   803          480 751
Total cash at end of year                                 (84)       152 803

Notes to condensed financial statements:

1.    Basis of preparation
These provisional reviewed condensed financial statements have been
prepared by Mr JA Taylor CA(SA). The condensed financial statements are
prepared in accordance with the requirements of the JSE Limited Listings
Requirements for provisional reports and the requirements of the Companies
Act of South Africa. The Listings Requirements require provisional reports
to be prepared in accordance with the framework concepts and the
measurement and recognition requirements of International Financial
Reporting Standards (IFRS) and the SAICA Financial Reporting Guides as
issued by the Accounting Practices Committee and Financial Pronouncements
as issued by Financial Reporting Standards Council and to also, as a
minimum, contain the information required by IAS 34 Interim Financial
Reporting. The accounting policies applied in the preparation of the
condensed financial statements are in terms of IFRS and are consistent
with those applied in the previous annual financial statements. There were
no effects of changes in new accounting standards for the year.

2. Headline loss
Reconciliation between basic loss
and headline loss:

Net Loss for year                          (3 642 322)           (246 492)
Fair value adjustment on
investment property                        2 927 199                    -
Total tax effect of adjustments
Headline loss for the year                  (715 123)            (246 492)


3. Segmental Information
The segment revenues, operating profit and other expenses generated by
each reportable segment is summarised as follows:
                                                     2014        2013
Sales of goods
Revenues                                          945 746   10 589 903
Investment revenue                                      -          524
Cost of sales                                   (902 092)  (10 150 024)
Depreciation                                       (6 335)      (6 335)
Operating lease charges                           (45 000)     (60 000)
Employee costs                                    (53 460)     (61 827)
Finance costs                                        (959)    (593 208)
Segment loss (2013 : Profit)                      (62 100)     311 244


Other expenses                                     (134   822)       (915   289)
Director’s remuneration                             (60   000)        (81   600)
Listing costs                                      (232   861)       (181   069)
Audit and accounting                               (225   340)       (210   934)
Company loss from continuing                       (653   023)       (246   492)
operations before tax.

Rental of premises
Rental income                                            -           831 156
Impairment of assets held for sale              (2 927 199)                -
Segment (loss)/profit                           (2 927 199)          831 156
All segment revenue is derived from external sources

External revenues per geography are summarized as follows:
Ventersdorp
Goods sold                                       945 746       10 589 903
Rental income                                          -          831 156
Total revenue                                    945 746       11 421 059

The operating segment assets by each reportable segment are summarized as
follows:
Sales of goods
Property, plant and equipment                    30 092           36 426
Trade and other receivables                     103 690          495 792
Segment assets                                  133 782          532 218

Rental of premises Investment Property         4 500 000        7 427 199
Segment assets                                 4 500 000        7 427 199
Unallocated assets:
Cash and cash equivalents                                         152 803
Straight-lining of lease asset                                     84 762
Company assets                                 4 633 782        8 196 982

The company does not report on segment liabilities.

Non-current non-financial asset per geography are summarized as follows:
Ventersdorp
Property, plant and equipment                     30 092           36 426
Investment Property                            4 100 000        6 827 199
Total assets                                   4 130 092        6 863 625
Carletonville
Investment property                              400 000          600 000
Total                                          4 530 092        7 463 625


4. Going concern
The company reported a net loss of R3 642 322 and the company’s
liabilities exceeds its assets by R5 570 250. The condensed financial
statements have been prepared on the going concern basis as the
shareholder's loan account has been subordinated in favour of all other
creditors until such time as the company's assets (fairly valued) exceed
its liabilities.


COMMENTARY

1.    Review of the results
Awethu Breweries went through a disappointing year where we are still
awaiting our liquor license as well as the sale of the Venterdorp mill.
Neither were successful during the year. Due to current offers on the
mill, we have impaired the value of the Investment property. This resulted
in a current year impairment of R2 927 199, which represents 80% of the
total loss reported for the year. Furthermore, the mill has not been
classified as held for sale as it is not certain that the requirement, per
IFRS 5 Non-Current Assets Held for Sale for the sale to complete within 12
months, will be met. There are no extra comments on the current results to
report on.
2.    Synopsis of Operations for the period and post balance sheet events
Awethu is committed to selling the Ventersdorp mill to raise some capital
for working capital and further acquisitions. There are no post balance
sheet updates to be reported on at this time.


3.    Dividends
No dividend has been declared for the year.


4.    Independent review by the external auditors.
The condensed provisional financial information for the year ended 30 June
2014 has been reviewed by the Company’s auditors, Logista CA (SA)
Incorporated. The review was conducted in accordance with ISRE 2410 Review
of Interim Financial Information performed by the Independent Auditor of
the Entity. The auditors review report does not necessarily cover all the
information in this announcement. Shareholders are therefore advised that
in order to obtain a full understanding of the nature of the auditors work
they should obtain a copy of that report together with the accompanying
financial information from the registered office of the Company. Any
reference to future financial performance included in this announcement
has not been reviewed or reported on by the Company’s auditors.

5. Emphasis of matter:
The auditors review report contains the following conclusion:

“Without qualifying our opinion, we draw attention to note 4 in the
condensed financial statements which indicates that the company incurred a
net loss of R (3 642 322) for the year ended 30 June 2014 and, as at that
date, the company’s total liabilities exceed its total assets by
R(5 570 250).The note 4 also indicates that these conditions, along with
other matters, indicated the existence of a material uncertainty which may
cast significant doubt on the company’s ability to continue as a going
concern.” The review report is open for inspection at the company’s
registered office.

6.   Director changes during the year
Mr Salim Bismilla was appointed to the board during the year as an
independent non-executive director of the Company with effect from 28
February 2014, as announced on SENS on 3 March 2014. Ms Irene Vermaak has
been appointed as non-executive director of the company with effect from
30 September 2014 and Mr. Jason Taylor has been appointed as the financial
director with effect from 30 September 2014, both changes were announced
on SENS on 1 0ctober 2014. The board wishes to thank Ms Irene Vermaak for
her contribution over the years and welcome’s her input in her new role.

On behalf of the board
TTW Ford
Chief executive
15 October 2014
Vanderbijlpark
Registered Office:       24 Sering Street, SE3 Vanderbijlpark, 1911

Transfer secretaries:    Computershare Investor Services (Pty) Ltd –
                         70 Marshall Street, Johannesburg, 2001
Directors:   TTW Ford(CEO),JA Taylor (FD) I Vermaak(non-
              executive),S Bismilla(independent, non-executive)

Auditors:     Logista CA (SA)Incorporated
              Chartered Accountants (S.A.)
              Registered Auditors

Sponsors:     Deloitte & Touche Sponsor Services (Pty) Ltd

Date: 15/10/2014 07:49:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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