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Audited Preliminary Summarised Consolidated Financial Results for the year ended 31 December 2014
ILIAD AFRICA LIMITED
Iliad or the Group
(Incorporated in the Republic of South Africa)
Registered number 1997/011938/06.
Share code ILA
ISIN ZAE000015038
Audited Preliminary Summarised Consolidated Financial Results for the year ended 31 December 2014
- Operating profit R133,0 m (2013: R6,9 m)
- Headline earnings per share 72,3 cents (2013: 40,0 cents)
- Net cash and cash equivalents R97,1 m (2013: R38,8 m)
- Dividend per share 22,0 cents (2013: 20,0 cents)
Nature of Business
Iliad Africa Limited, listed on the JSE in 1998, focuses on sourcing, retailing and redistributing
general and specialised building materials. The Group operates through two focused divisions
leveraging common pools of expertise, enabling each division to focus on its core market. General
Building Materials (GBM) markets a comprehensive range of products primarily sourced locally.
Specialised Building Materials (SBM) trades in differentiated or value-added products. A range of
customers, from large-scale development and construction groups to do-it-yourself homeowners
are serviced country-wide from an established base of 70 stores.
Financial Review
In line with the trading statement issued on 16 February 2015, the Group recorded an earnings of
73,3 cents per share for the year ended 31 December 2014, compared to an earnings loss of 4,8
cents per share for 2013. The Group recorded an EBIT of R133,0 million for the year ended 31
December 2014, compared to R6,9 million for the 2013 period. During the period under review,
an additional 1,8% treasury shares were acquired by the Group. The total treasury shares held is
now 3,0%. The impact of the share buy-back resulted in an estimated EPS improvement of 2,0%.
As per the trading update, the improvement in earnings, amongst others, reflects the continuing
benefits of the Group's portfolio adjustments made in 2013.
The impact of the prior year disposals and portfolio adjustments on the results are as follows:
Revenue Profitability (EBIT)
% 31 December 31 December % 31 December 31 December
Rm change 2014 2013 change 2014 2013
Current portfolio 2,2 4 365 4 271 0,4 139 139
Affected portfolio – – 193 (95,4) (6) (132)
Total (2,2) 4 365 4 464 1 824,9 133 7
Following various portfolio adjustments in 2013, the total Group revenue declined by 2,2%.
Comparable store Group revenue increased by 2,2%, which reflects the continued subdued
trading environment, marginal recovery in building plans passed and the protracted slowdown in
the finishing end of the industry.
Year-on-year expenses have increased by 0,8%, reflecting the impact of the 2013 portfolio
adjustments and the focus on expense management in order to partially negate costs associated
with investing in key strategic initiatives.
The Group ended with net cash of R97,1 million, compared to net cash of R38,8 million at the end
of 2013. The improvement is attributable to significantly improved cash profits and the proceeds
on prior year disposals.
Operational and Market Review
The past few years have been a challenging period for the building material supply industry. Iliad's
ongoing focus on procurement and improving cost structures has countered these conditions to
some extent.
Iliad's GBM division produced a mixed performance under these circumstances. The Inland Sub-
division recorded acceptable results, with a 3,0% increase in revenue, whilst the Coastal Sub-
division recorded a decrease of 2,9% in revenue. The GBM division will continue to identify
opportunities to leverage the BUCO brand.
The SBM division reported a pleasing 8,6% revenue increase on comparable stores. The benefits
of the various portfolio adjustments in 2013 have contributed considerably to the turnaround profit
performance of this Division.
Prospects
In the year ahead, we anticipate leveraging our newly integrated ERP platform to facilitate various
projects that will improve our competitive position. We expect our procurement strategy and other
initiatives to assist in protecting gross margins. Our brands will enjoy further exposure through
various marketing campaigns and we aim to continue to optimise our portfolio and conduct feasibility
studies to expand into new geographic locations. Expanding our footprint and enhancing customer
satisfaction will remain a priority going forward.
We anticipate gradual 2015 revenue growth, in a year that will continue to be challenging and
competitive. We remain convinced that we have set the foundation for sustainable growth into
the future.
Changes to the Board
There were no changes to the Board of Directors for the period under review.
Basis of preparation
The audited summarised consolidated financial results included in this announcement have
been prepared in accordance with the measurement and recognition criteria of International
Financial Reporting Standards ("IFRS") and its interpretations issued by the International
Accounting Standards Board in issue and effective for the Group at 31 December 2014, the
SAICA Financial Reporting Guides and Accounting Practices Committee and Financial Reporting
Pronouncements as issued by the Financial Reporting Standards Council. The results contain,
as a minimum the information required by IAS 34 Interim Financial Reporting and comply with
the Listing Requirements of the JSE Limited and the Companies Act 2008. These preliminary
summarised consolidated financial results do not include all the information required for a set of
full annual financial statements and should be read in conjunction with the consolidated annual
financial statements that the Board of Directors approved on 12 March 2015.
The preparation of the consolidated financial results for the year ended 31 December 2014 was
supervised by the Chief Financial Officer: Chris Booyens CA (SA).
Accounting Policies
The accounting policies adopted in the preparation of the preliminary summarised consolidated
annual financial statements are in terms of IFRS and are consistent with those applied in the
summarised annual financial statements for the year ended 31 December 2013, except for the
adoption of new or revised accounting standards and interpretations, that became applicable
during the current reporting period. None of these have had a significant impact on the Group's
accounting policies and methods of computation, nor have they resulted in a restatement or re-
presentation of the 31 December 2013 statement of financial position and related notes.
Events after the reporting date
There have been no material events after the reporting date.
Audit Opinion
The Group's external auditors, Deloitte & Touche, have issued their unmodified opinion on
the consolidated annual financial statements and summarised consolidated annual financial
statements for the year ended 31 December 2014. The audit was conducted in accordance
with International Standards on Auditing. These summarised condensed consolidated financial
statements have been derived from the Group annual financial statements and are consistent in
all material respects with the consolidated annual financial statements. A copy of both opinions
are available for inspection at the registered offices of Iliad Africa Limited.
Any reference to future financial performance included in this announcement, has neither been
audited nor is it reported on by the Company's external auditors.
Dividend to owners of the Parent
The Group has declared a final dividend of 22 cents per share (2013: 20 cents per share) for the
12 month period ended 31 December 2014.
The dividend is payable from income reserves. Iliad has no secondary tax on companies
credits available to cover the South African dividend tax at a rate of 15% on shareholders not
exempt. The net amount payable to shareholders who are not exempt from dividend tax is 18,7
cents per share, while it is 22 cents per share to those shareholders who are exempt. The issued
share capital at the declaration date is 138 217 794 ordinary shares. Iliad Africa Limited's tax
reference number is 9269/002/71/4.
Set out below are the salient dates applicable to the dividend:
Last date to trade "cum dividend" Wednesday 22 April, 2015
Trading commences "ex dividend" Thursday 23 April 2015
Record date Thursday 30 April 2015
Payment date Monday 4 May 2015
Share certificates may not be dematerialised or rematerialised between Thursday, 23 April 2015
and Thursday, 30 April 2015, both dates inclusive.
For and on behalf of the Board of Directors.
12 March 2015, Johannesburg
Andile Sangqu Eugene Beneke Chris Booyens
Independent Non-executive Chairman Chief Executive Officer Chief Financial Officer
SUMMARISED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Audited Audited
R'000 2014 2013
Assets
Non-current assets
Property, plant and equipment 152 524 140 309
Intangible assets 231 601 232 881
Non-current financial assets 4 482 6 074
Deferred taxation 56 896 48 849
Total non-current assets 445 503 428 113
Current assets
Inventories 603 687 609 246
Trade and other receivables 446 636 459 817
Cash and cash equivalents 142 501 48 515
Short-term portion of financial assets 2 293 22 131
Total current assets 1 195 117 1 139 709
Total assets 1 640 620 1 567 822
EQUITY AND LIABILITIES
Equity
Ordinary share capital 122 122
Retained income 800 341 746 621
Total equity 800 463 746 743
Non-current liabilities
Long-term borrowings 8 537 5 592
Total non-current liabilities 8 537 5 592
Current Liabilities
Trade and other payables and provision 776 139 801 890
Bank overdraft 45 374 9 732
Taxation 5 969 1 341
Short-term borrowings 4 138 2 524
Total current liabilities 831 620 815 487
Total equity and liabilities 1 640 620 1 567 822
SUMMARISED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Audited Audited
R'000 2014 2013
Revenue 4 365 448 4 464 056
Cost of sales 3 145 531 3 272 662
Gross margin 1 219 917 1 191 394
Administration, selling and distribution expenses 1 051 036 1 042 179
EBITDA before restructuring costs 168 881 149 215
Loss on disposal of business assets – 15 197
Fair value adjustment on available-for-sale assets – 70 232
Restructuring costs – 14 699
EBITDA 168 881 49 087
Depreciation 34 651 40 900
Amortisation of intangibles 1 280 1 280
Operating profit before investment income (EBIT) 132 950 6 907
Investment income 5 617 16 335
Operating profit before finance charges 138 567 23 242
Finance charges (14 754) (30 752)
Profit/(loss) before taxation 123 813 (7 510)
Taxation (25 096) 919
Profit/(loss) for the year 98 717 (6 591)
Other comprehensive income for the year – –
Total comprehensive income/(loss) for the year 98 717 (6 591)
Attributable to:
Non-controlling interest – –
Owners of the parent 98 717 (6 591)
98 717 (6 591)
Headline Earnings Reconciliation
Attributable to owners of the parent 98 717 (6 591)
Adjusted for:
(Profit)/loss on disposal of property, plant and equipment (net of tax) (1 369) 382
Fair value adjustment on available-of-sale assets (net of tax) – 50 567
Loss on disposal of components of businesses (net of tax) – 10 942
Headline earnings for the year 97 348 55 300
Number of ordinary shares in issue at year end 138 217 794 138 217 794
Weighted average number of ordinary shares 134 686 573 138 140 011
Basic and diluted earnings/(loss) per share (cents) 73,3 (4,8)
Headline earnings per share cents 72,3 40,0
Dividends to owners of the parent (cents per share) 22,0 20,0
SUMMARISED CONSOLIDATED STATEMENT OF CASH FLOWS
Audited Audited
R'000 2014 2013
Cash flows from operating activities 123 385 140 039
Operating profit adjusted for non cash items 164 046 135 183
Working capital changes during the year (12 146) (8 355)
Taxation (paid)/refunded (28 515) 13 211
Cash flows from investing activities (23 410) 14 316
Cash flows from financing activities (41 631) (38 655)
Net increase in cash and cash equivalents for the year 58 344 115 700
Cash and cash equivalents at the beginning of the year 38 783 (76 917)
Cash and cash equivalents at end of the year 97 127 38 783
SUPPLEMENTARY INFORMATION
Audited Audited
2014 2013
Net asset value per share (cents) 597,0 546,6
Net tangible asset value per share (cents) 424,3 376,1
Capital expenditure (R'000) 51 105 54 074
Vendor loans repaid/(issued) (R'000) 1 751 (7 522)
Proceeds on disposal of business components (R'000) 21 554 63 880
Capital commitments (R'000)
– approved and contracted 1 063 691
– approved not contracted 57 033 59 180
Depreciation (R'000) 34 651 40 900
SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Audited Audited
R'000 2014 2013
Total equity at the beginning of the year 746 743 789 948
Movement in retained income 53 720 (43 205)
Attributable to owners of the parent 98 717 (6 591)
Treasury shares acquired (18 183) (8 970)
Dividends to owners of the parent (26 814) (27 644)
800 463 746 743
SUMMARISED CONSOLIDATED SEGMENT REPORT
Group General Building Materials Specialised Building Materials
Audited Audited Audited Audited Audited Audited
R'000 2014 2013 2014 2013 2014 2013
Revenue 4 365 448 4 464 056 3 540 894 3 540 396 824 554 923 660
Gross margin 1 219 917 1 191 394 908 619 868 129 311 298 323 265
EBITDA before restructuring 168 881 149 215 98 783 106 214 70 098 43 001
Loss on disposal of business assets _ 15 197 – – – 15 197
Fair value adjustment on available-for-sale assets _ 70 232 – – – 70 232
Restructuring costs – 14 699 – 14 699 – –
EBITDA 168 881 49 087 98 783 91 515 70 098 (42 428)
Depreciation 34 651 40 900 24 010 27 400 10 641 13 500
Amortisation 1 280 1 280 – – 1 280 1 280
EBIT 132 950 6 907 74 773 64 115 58 177 (57 208)
Total assets 1 640 620 1 567 822 1 080 031 1 003 012 560 589 564 810
Total liabilities 840 157 821 079 620 161 515 611 219 996 305 468
Capital expenditure 51 105 54 074 21 781 37 194 29 324 16 880
CORPORATE INFORMATION
Iliad or the Group (Incorporated in the Republic of South Africa) Registered number 1997/011938/06
Share code ILA ISIN ZAE000015038
Registered address Iliad House Block 7 Thornhill Office Park 94 Bekker Road Midrand
Postnet Suite 566 P/Bag x 29 Gallo Manor 2052
Directors AH Sangqu (Chairman)* E Beneke (Chief Executive Officer) CP Booyens (Chief
Financial Officer) T Njikizana* RT Ririe* Prof F Abrahams* A Kalyan*
*Non-executive
Group Secretary SC O'Connor
Transfer secretaries Link Market Services South Africa (Pty) Ltd 13th Floor Rennie House
19 Ameshoff Street Braamfontein 2001
PO Box 4844 Johannesburg 2000
Sponsor Bridge Capital Advisors (Pty) Ltd 27 Fricker Road Second Floor Illovo 2196
PO Box 651010 Benmore 2010
www.iliadafrica.co.za
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