Wrap Text
Reviewed Condensed Consolidated Interim Results for the Six Months Ended 31 December 2014
Beige Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration No: 1997/006871/06)
Share code: BEG ISIN code: ZAE000034161
("Beige" or "the Company" or “the Group”)
REVIEWED CONDENSED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED
31 DECEMBER 2014
Directors Commentary
The directors of Beige present the reviewed results for the half year ended 31 December 2014. These
results show the consolidated position of Beige compared to results for the half year ended 31 December
2013 and the audited results for the year ended 30 June 2014.
1. Nature of business
The Beige Group primarily operates as a contract and packaging manufacturer, manufacturing and
distributing cosmetics, soaps, laundry soaps, packaging, pharmaceutical and nutraceutical and
allied products on behalf of brand owners for both the local and international home and personal
care industry. The Group is the largest fully empowered contract manufacturer in the South African
home and personal care industry.
2. Listing information
Beige is listed on the Alternative Exchange (“AltX”) of the Johannesburg Stock Exchange (“the
JSE”) under the share code: BEG and ISIN number is ZAE 000034161.
During the period under review, the Company had unlisted cumulative, non-participating,
convertible, redeemable preference shares in issue, which preference shares were held by the
holding company. The terms of the preference shares provided that the preference shares may be
converted to ordinary shares on a date not less than three years and one day after the issue date
and should a holder not elect to convert all or part of the preference shares into ordinary shares,
then the Company shall be obliged to redeem them. The preference shares were issued on 16 May
2011 and were open to conversion at the election of the holder from 18 May 2014. The sole
preference shareholder elected not to convert the preference shares and the Company was
accordingly obliged to redeem them. Given the financial position of the Company, it had not as at
the period end redeemed the preference shares and, it was accordingly obliged to pay interest on
the redemption price at prime plus 8% until the preference shares were redeemed. The preference
shares are considered to have been redeemed with effect from 5 January 2015 as disclosed below
in “Event after reporting period.”
3. Business review
Economic growth in South Africa has fared poorly compared to that of its peers in the emerging
market sector. Growth has been hampered by strikes in the industrial sector and the electricity
blackouts as Eskom struggles to meet demand in the face of critical downtime at its plants. The
investment grading of South Africa has been further lowered. All these factors have contributed to a
devaluation of the South African Rand versus the major currencies. This coupled with the bounce
back in the oil prices have served to fuel inflationary pressures at a manufacturing level as
evidenced by the rising input price index. The Purchasing Managers Index has been below the 50-
point neutrality point for two consecutive months while new sales orders have declined.
At a company level, Beige has certainly felt the impact of the higher energy prices and exchange
rates that have driven up the price of key raw materials. The contract manufacturing sector continues
to labour under the twin effects of higher costs of manufacturing and lower throughput.
Revenue from the Outsourced Manufacturing segment have grown 6% compared to that of the
period ended 31 December 2013. Margins were eroded having been indirectly impacted by the
economic conditions and also the increase in volumes of lower margin product. The strategy to drive
increased relevancy of the outsourced manufacturing segment deeper into the value chain of our
customers is unlocking value and has resulted in a more robust sales order book for the second six
months of the year. The two new multinational customers secured during the latter part of the
previous financial year have steadily increased sales orders and new products and variants are
being secured.
Herbal & Homeopathic (“H&H”) has produced a positive set of results. Management have built on the
growth of throughput and profitability that was achieved in the previous financial year. It must also be
noted that Beige has, during the course of the current reporting period, increased its shareholding in
H&H from 61.4% to 68.6%.
The Packaging operation revenues have declined compared to the same period of the previous year
due to the loss of the agency to sell imported pumps and glass bottles, although revenue from
manufactured product remained stable. Raw material prices have increased significantly during the
period due to the weak exchange rate. The profit improvement plan that was implemented has
yielded significant benefits as evident in the significantly reduced losses incurred by this business
unit compared to June 2014.
4. Financial and operational overview
Although the turnaround strategy for the group communicated in the audited results announcement
for the year ended 30 June 2014 has been implemented, the results for the period ended 31
December 2014 reflect that the benefits thereof had not, at the conclusion of the period, filtered
through to the Group’s financial performance.
Turnover grew by 2% compared to the six months ended 31 December 2013, reflecting a growth of
R 15.5m in Outsource Manufacturing but a reduction of R 10.1m in Packaging. The Packaging
segment sales were depressed due to the loss of an agency agreement with certain overseas
principals during the course of the previous financial year. This was further exacerbated by reduced
supply to its major customer due to late payment issues by its customers. The Outsource
Manufacturing segment sales grew by 6% as the closer alignment with our major customers yielded
greater volumes. Further, sales volumes were boosted by the ramping up of production for the new
multi-national contractual customers secured during the last quarter of the previous financial year.
Additional benefits of these contracts will be realised as the financial year progresses.
Gross margins deteriorated from 9.3% in December 2013 to 7.9% in June 2014 to 5.9% for the
period under review. The contributing factors to the deterioration in margins were the growth in
volume of lower margin homecare products, lower than budgeted soap volumes and higher raw
material costs. It must be noted that in terms of the contractual agreements with the multinational
customers of the Outsource Manufacturing segment, raw material price increases are passed on to
the customer at no additional margin. Hence in an increasing raw material environment as
experienced, it results in the Rand value contribution per product being maintained. However, the
margin as a percentage of turnover reduces as was the case in the period under review. A high
margin customer was lost during the current period under review in Outsource Manufacturing and
was replaced by the new multinational customers at a lower margin. The pricing to these new
customers have been reviewed which will result in an improvement in margins in the second half of
the current financial year.
The Packaging segment contributed R4.8m to the operating loss before impairment charges. This
loss was similar to the previous year despite the lower turnover of R16.9m. The operating loss
before impairment charges in Outsource Manufacturing of R 15.8m was R 7.0m greater than the
previous year. Consequently the operating loss before impairment charges of the Group amounted
to R 24.0m compared to December 2013 of R 18.2m. The net interest expense was R9.9 m and
included the interest on the finance lease capitalised in respect of the buildings and recognised the
increased borrowings to finance the working capital requirements of the business.
The impairment of assets relates to, in the main, an impairment of the plant and machinery in the
Outsource Manufacturing Segment as the independent valuation of these assets was below its
carrying value.
The 50% investment in the joint venture, U Housing (Pty) Ltd, is accounted for using the equity
accounting method. Under the equity method, the investment in the joint venture is initially
recognised at cost and the carrying amount is either increased or decreased to recognise the
investor’s share of the profit or loss of the investee after the date of acquisition.
5. Prospects
The volumes from the multi-national customers that were secured in the previous financial year are
anticipated to grow materially in the forthcoming year. These new customers do not have
manufacturing capabilities in South Africa or Sub-Saharan Africa. Further opportunities are being
explored to manufacture a broader range of products for South Africa and other African markets in
addition to certain European markets.
6. Turnaround Strategy
As previously announced, a turnaround strategy has been devised that is expected to reverse the
trading losses of the Group. This turnaround is predicated on recapitalising the business,
immediately rectifying short term issues and ensuring that the positive momentum achieved is
sustained moving forward. The management team have been tasked to ensure the implementation
of this turnaround strategy, the key elements of which are set out below:
Key Strategic Improvement Initiatives:
- Recapitalisation of the current business
- Inculcating a customer centric culture
- Reassessing non-performing, non-core assets and/or products
- Building turnover utilising current capability
- Consolidation of product manufacture to drive efficiencies
- Centralising key services to drive cost saving
- Implementing management and leadership interventions
- Focusing on key capital improvements
Turnover: The recapitalisation strategies set out below combined with the funding line already
provided by the Group’s holding company will help to ensure continuous production and the
improvement of overall manufacturing efficiencies. It is envisaged that a move towards a more
“customer centric” business model will ensure greater focus, improved transparency and better
service delivery which will ultimately deliver superior and profitable growth.
Management’s primary focus will be to work with customers to profitably grow the current core
product portfolio and to prioritise its efforts on new key projects that will effectively step change the
growth of the business. The projects are expected to further ensure that the business leverages its
inherent core capabilities and capacity and limits the need to invest in any significant manufacturing
plant in the short term.
The business has historically succumbed to an extensive and somewhat fragmented “tail” of
products within the portfolio. This position will be rectified following a review and rationalisation of all
low volume, low margin SKU’s. Any new product development will be reassessed based on the
achievement of targeted thresholds.
Margin: Margin improvement measures include the immediate implementation of a new shift system;
targeting yield improvements of 1%; a full review of all manning levels; leveraging the group’s central
procurement resource; steadily increasing automation utilising the Group’s in-house engineering
capability; and a move to implement quarterly pricing reviews across all customers as applicable.
Expenses: Immediate interventions and projects have been instituted to generate savings aligned to
the recently mandated “cost savings plan”. Some of these initiatives include: immediate hold on the
filling of vacancies; centralisation of payroll; centralised procurement; containment of travel costs and
significantly reducing legal costs.
7. Going concern
The Lion Match Company (Pty) Ltd (“Lion Match”) has provided a loan of R10m, a guarantee of
R60m for Beige’s overdraft facilities and provided a further funding facility of R90m to support the
cash requirements of the Group, of which an amount of R30m will be advanced in the short term.
This facility is in addition to the loan of R35.8m advanced to the Company as at 30 June 2014.The
loan was provided on 30 October 2014 and any advances on the facility will be payable on 1 July
2017.
Taking into account the above funding lines, the directors have reviewed the group and company’s
budget and cash flow forecasts and, whilst the group and company’s financial position is challenging,
have satisfied themselves that by successfully implementing a combination of the recapitalisation
strategies set out below, the group and the company will have access to sufficient funding to enable
them to meet their foreseeable cash requirements.
The strategies on which the Directors have already embarked on include:
- a claw-back offer of R60m, the effect of which is the capitalisation of R60m of liabilities
comprising R35m of the loan provided by the group’s holding company and a further R25m
loan which arose on redemption of the preference shares;
- the potential disposal of certain non-core assets;
- an increase in the conversion costs paid by the group’s major clients, negotiations in respect of
which are in process; and
- a proposed consolidation of manufacturing plants to drive efficiencies
- changes in the business model with key customers that would result in reduced working capital
investment and an injection of funds and ability to execute orders received.
- Manufacture of new products which contributes to an increase in the sales volume
On the basis of this review, the directors consider it appropriate to adopt the going concern basis in
preparing the Group and Company’s financial statements.
8. Changes to the board
During the period under review and to the date of this announcement:
- Mr C De Jager resigned as a non-executive director with effect from 1 July 2014;
- Mr AD Sinclair was appointed as a non-executive director with effect from 1 July 2014; and
- Mr PW Jooste was appointed as a non-executive director with effect from 7 August 2014.
By order of the Board
NMI (Gora) Abdoola Jithan Bridgmohan
Executive Chairman Group Financial Director
30 April 2015
Johannesburg
Company Secretary and Registered Office
Arbor Capital Company Secretarial (Pty) Ltd (Registration number 1998/025284/07)
Ground Floor, One Health Building, Woodmead North Office Park, 54 Maxwell Drive, Woodmead, 2191
Suite # 439, Private Bag X29, Gallo Manor, 2052
Directors
NMI (Gora) Abdoola (Executive Chairman), AH Trikamjee (Deputy Chairman) ( #*), J Bridgmohan (Group
FD), A Heeralal(#), AMI Abdoola (#), PW Jooste (#), AGS Osman (#*), AD Sinclair(#), M Tembe (Lead
independent non-executive director) (#*)
(#) Non-executive, * independent
Designated Advisor Transfer Office
Arbor Capital Sponsors Proprietary Limited Link Market Services South Africa Proprietary Limited
Auditors
PricewaterhouseCoopers Inc
Beige Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration No: 1997/006871/06)
Share code: BEG ISIN code: ZAE000034161
("Beige" or "the Company" or “the Group”)
REVIEWED CONDENSED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED
31 DECEMBER 2014
1. Basis of preparation
The condensed consolidated interim financial statements for the six months ended
31 December 2014 were prepared in accordance with the requirements of the Johannesburg Stock
Exchange’s Listings Requirements and the requirements of the Companies Act of South Africa.
The Listings Requirements require interim 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 to also, as a minimum, contain the information required by
IAS 34 Interim Financial Reporting. The principal accounting policies used in the preparation of the
results for the half year ended 31 December 2014 are consistent with those applied for the year
ended 30 June 2014. During the period, the Group adopted all the IFRS and interpretations being
effective and deemed applicable to the Group. None of these had a material impact on the results
of the Group.
The results were prepared under the supervision of the Group’s Financial Director, Mr Jithan
Bridgmohan.
2. Reviewed results
PricewaterhouseCoopers Inc, the Group’s independent auditors, have reviewed the condensed
consolidated interim financial information for the half year ended 31 December 2014, that comprise
the condensed consolidated statement of financial position at 31 December 2014, the condensed
consolidated statement of comprehensive income, the condensed consolidated statement of
changes in equity, and the condensed consolidated statement of cash flows for the period then
ended, and the notes thereto comprising the segmental report, additional information, and contingent
liabilities, going concern and have expressed an unqualified and an unmodified review conclusion
with an emphasis of matter (refer note 5) on the condensed consolidated interim financial
statements, an extract of which is set out below. A copy of the review opinion is available for
inspection at the company’s registered office. Any reference to future financial performance included
under the directors’ commentary above, has not been reviewed or reported on by the Company’s
auditors.
Emphasis of Matter
Without qualifying our conclusion, we draw attention to Note 5 to the condensed consolidated interim
financial statements which indicates that the Group incurred a net loss of R46.2 million for the six-
months ended 31 December 2014 and, as of that date, the Group’s current liabilities exceeded its
current assets by R148.7 million. Note 5 also indicates that these conditions, along with other
matters indicate the existence of a material uncertainty that may cast significant doubt about the
Group's ability to continue as a going concern.
3. Segment reporting
The chief operating decision-maker has been identified as the executive directors being the
Executive Chairman and the Financial Director. These directors consider the business from a
product perspective for purposes of assessing the performance of Outsource Manufacturing and
Packaging products. The operating segments are determined based on these reports.
4. Contingent liabilities
The sellers of Amcos Cosmetics International (Pty) Ltd have instituted a claim for R11.1m including
interest but excluding the legal costs in respect of the balance of the purchase price relating to the
working capital of Amcos Cosmetics International (Pty) Ltd. The company is of the opinion that no
exposure exists in this regard.
The Company has a joint and severally continuing suretyship limited to R79m relating to the Durban
and Alrode property jointly owned by U housing (Pty) Ltd.
5. Going Concern
The Group incurred a net loss for the six months ended 31 December of R46.2m (30 June 2014
financial year: R100.9m) and, as at that date its current liabilities (excluding the shareholder loan and
preference share liability) exceeded its current assets by R86.7m (30 June 2014: R63m). The
holding company has subordinated its existing loan as at 31 December 2014 of R45.6m and future
loan advances to the Group in favour of the other creditors until the assets of the Group, fairly
valued, exceeds its liabilities. The financial statements have been prepared on the basis of
accounting policies applicable to a going concern. This basis presumes that funds will be available to
finance future operations and to realise assets and discharge liabilities in the normal course of
business.
The directors have taken the following steps to provide the group access to funding:
- The Holding company (“Lion Match”) has provided a loan facility of R100m of which an amount
of R10m was advanced on 30 October 2014. The holding company’s application for funding to
enable it to meet its commitment to this loan facility was not finalised at the date of issue of
these interim financial statements.
- The Group is in advanced negotiations with a major customer to implement a new business
model in respect of raw materials which will result in reduced stock holding and the release of
cash from the acquisition of stock by the customer at the implementation date. This is expected
to release R30m in cash.
- The board has agreed that as further headroom for the funding of the group to dispose of
noncore assets that will release R50m in cash flow. The final amount that will be received is
dependent on market conditions.
In addition the company has budgeted a return to profitability on the basis that the implementation of
the new business model will contribute to the company executing orders received, enable an
increase in conversion margins and the manufacture of new products.
These conditions give rise to a material uncertainty which may cast significant doubt about the
company’s ability to continue as a going concern and, therefore that it may be unable to realise its
assets and discharge its liabilities in the normal course of business.
The financial statements are prepared on the basis of accounting policies applicable to a going
concern. This basis presumes that that the company will continue to receive the support of its
holding company, the implementation of the new business model, the disposal of noncore assets,
the attainment of the budgeted increase in revenue from the new business model and new products
and the successful increase in in conversion margins and that the realisation of assets and
settlement of liabilities will occur in the ordinary course of business.
6. Events after reporting period
As announced, the Company has proceeded with a claw back offer, in the amount of R60m which
claw-back offer will close at 12h00 on Friday, 8 May 2015. The effect of the Claw-back Offer will
be to re-finance the Group through the conversion of existing debt to equity. Lion Match has
already injected in excess of R60m into the Company in the form of a shareholder loan of R35.8m
as at 30 June 2014, a loan relating to the R25m plus interest due to Lion Match for the redemption
of the preference shares which, pursuant to the first addendum and re-instatement agreement
relating to the subscription of the claw-back offer shares by Lion Match, are deemed to have been
redeemed with effect from 5 January 2015. Other than normal trading, no other material events
have occurred subsequent to the year-end that require reporting.
7. Accounting Policies
The accounting policies applied in the preparation of these condensed consolidated interim
financial statements are in terms of IFRS and are consistent with those applied in the consolidated
annual financial statements for the year ended 30 June 2014
8. Related party transactions
The group, in the ordinary course of business, entered into various sale and purchase transactions
on an arm’s length basis at market rates with related parties.
The interim financial statements are presented on a condensed consolidated basis.
REVIEWED CONDENSED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED
31 DECEMBER 2014
Reviewed Condensed Consolidated Statement of Financial Position as at 31 December 2014
Reviewed Audited Unaudited
6 months 12 months 6 months
31 December 30 June 2014 31
2014 R’000 December
R’000 2013
R’000
ASSETS
Non-current assets 166 829 185 075 227 490
Property, plant and equipment 151 982 172 408 166 535
Intangible assets 0 0 31 948
Investment in joint venture 13 691 12 507 9 334
Other receivables 160 160 1 571
Deferred income tax assets 996 0 18 102
Current assets 157 153 195 962 201 426
Inventories 66 979 78 205 77 676
Trade and other receivables 86 317 101 166 117 819
Cash and cash equivalents 3 857 16 591 5 931
Total assets 323 982 381 037 428 916
EQUITY AND LIABILITIES
Equity attributable to equity holders of the company
(60 648) (13 031) 70 233
Ordinary share capital 15 442 15 442 15 442
Ordinary share premium 179 898 179 898 179 898
Other reserves 10 046 10 622 13 325
Accumulated loss (266 034) (218 993) (138 432)
Non-controlling interest 2 705 1 953 949
Total equity (57 943) (11 078) 71 182
Liabilities
Non-current liabilities 76 020 72 985 87 196
Borrowings 61 532 70 954 82 767
Deferred income tax liabilities 6 488 2 031 4 429
Holding company loan 8000 0 0
Current liabilities 305 905 319 130 270 538
Trade and other payables 166 863 190 864 187 118
Current portion of long-term borrowings 17 128 15 094 8 421
Current income tax liabilities 1 198 1 198 1 122
Preference share loan 24 363 24 363 0
Bank overdrafts 58 655 51 748 39 987
Holding company loan 37 698 35 863 33 890
Total liabilities 381 925 392 115 357 734
Total equity and liabilities 323 982 381 037 428 916
Weighted Average number of Ordinary shares (000’s)
In issue 1 544 197 1 544 197 1 544 197
Net asset value per share information (net of non-
controlling interest)
Net asset value per share (cents) (3.92) (0.84) 4.55
Net tangible asset value per share (cents) (3.92) (0.84) 2.48
Reviewed Condensed Consolidated Interim Statement of Comprehensive Income for the six months
ended 31 December 2014
Unaudited
Reviewed six months
6 months Audited ended 31
31 December 12 months December
2014 30 June 2014 2013
R’000 R’000 R’000
Revenue 278 661 620 454 273 232
Cost of sales (262 318) (571 716) (247 787)
Gross profit 16 343 48 738 25 445
Other income 0 0 0
Distribution costs (4 106) (8 708) (5 433)
Administrative expenses (36 247) (77 201) (38 244)
Operating loss before impairment (24 010) (37 169) (18 232)
Impairment charge (9 555) (32 945) 0
Operating loss (33 565) (70 114) (18 232)
Finance income 532 1 049 136
Finance costs (10 411) (21 509) (7 685)
Loss after net financing costs (43 444) (90 574) (25 781)
Share of profit of joint venture 658 1 658 231
Loss before income tax (42 786) (88 916) (25 550)
Income tax expense (3 460) (12 025) 6 869
Loss for the year/period (46 246) (100 941) (18 681)
Other comprehensive income:
Other comprehensive income for the year/period net
of tax - - -
Total comprehensive loss for the year/period (46 246) (100 941) (18 681)
Total comprehensive loss attributable to:
Equity holders of the company (47 312) (101 612) (18 348)
Non-controlling interest 1 066 671 (333)
(46 246) (100 941) (18 681)
Loss for the year/period (46 246) (100 941) (18 681)
Non-controlling interest (1 066) (671) 333
Loss for the year/period attributable to equity holders
of the company (47 312) (101 612) (18 348)
Headline earnings adjustments:
Total comprehensive loss for the year/period attributable
to equity holders of the company (47 312) (101 612) (18 348)
Adjustments:
Profit on sale and leaseback of property net of tax (9) (18) 0
Impairment of fixed assets 9 555 317 0
Impairment of intangible asset 0 32 945 0
Headline earnings for the year/period attributable to
equity holders of the company (37 766) (68 368) (18 348)
Ordinary shares (000’s):
Weighted average shares in issue (Note 1) 1 544 197 1 544 197 1 544 197
Diluted (Note 2) 1 544 197 1 544 197 1 544 197
Earnings per share information
Earnings per share (cents) (3.06) (6.58) (1.19)
Headline earnings per share (cents) (2.45) (4.43) (1.19)
Diluted earnings per share (cents) (3.06) (6.58) (1.19)
Diluted headline earnings per share (cents) (2.45) (4.43) (1.19)
Notes:
1. 87 624 017 (June 2014: 87 624 017) shares held as treasury stock have been subtracted from the
respective share totals for purposes of calculating earnings per share information.
2. Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares
outstanding to assume conversion of all dilutive potential ordinary shares. The company has one
category of dilutive potential ordinary shares: convertible preference shares. Diluted earnings, and the
weighted average number of ordinary shares for December 2014, June 2014 and December 2013, have
however not been adjusted in this regard as the effect of the convertible preference share conversion is
antidilutive, even though the ruling share price at 31 December 2014, 30 June 2014 and June 2013 is
equal to the strike price. Potential ordinary shares are antidilutive when their conversion to ordinary
shares would increase earnings per share or decrease loss per share from continuing operations. The
calculation of diluted earnings per share does not assume conversion, exercise, or other issue of
potential ordinary shares that would have an antidilutive effect on earnings per share.
Reviewed Condensed Consolidated Interim Statement of Cash Flows for the six months ended
31 December 2014
Reviewed Unaudited 6
6 months Audited months ended
31 December 2014 12 months 31 December
R’000 30 June 2014 2013
R’000 R’000
Cash flows from operating
activities:
Net cash generated from operating
activities (20 365) 8 729 11 629
Cash flows from investing
activities:
Net cash used in investing activities 111 (12 996) (8 494)
Cash flows from financing
activities:
Net cash generated from financing 613 4 772 (1 529)
activities
Net decrease in bank overdrafts
including cash and cash
equivalents (19 641) 505 1 606
Bank overdrafts including cash and
cash equivalents at the beginning of
the year/period (35 157) (35 662) (35 662)
Bank overdrafts including cash
and cash equivalents at the end of
the year/period (54 798) (35 157) (34 056)
Reviewed Condensed Consolidated Interim Statement of Changes in Equity for the six months ended
31 December 2014
Share
Ordinary Ordinary Ordinary Revalua based
share treasury Share tion payment Total other
capital shares premium reserve reserve reserves
R’000 R’000 R’000 R’000 R’000 R’000
Group
Balance at 30 June 2013 16 319 (877) 179 898 9 796 1 979 11 775
Comprehensive income:
Loss for the period -- -- -- -- -- --
Total comprehensive income
for the period -- -- -- -- -- --
Realisation of revaluation reserve -- -- -- 1 550 -- 1 550
Total contributions by and
distributions to owners of the
company, recognised directly
in equity -- -- -- 1 550 -- 1 550
Balance at 31 December 2013 16 319 (877) 179 898 11 346 1 979 13 325
Comprehensive income:
Loss for the period -- -- -- -- -- --
Total comprehensive income
for the period -- -- -- -- -- --
Realisation of revaluation reserve -- -- -- (2 703) -- (2 703)
Total contributions by and
distributions to owners of the
company, recognised directly
in equity -- -- -- (2 703) -- (2 703)
Other comprehensive income:
Other comprehensive income for
the period -- -- -- -- -- --
Balance at 30 June 2014 16 319 (877) 179 898 8 643 1 979 10 622
Comprehensive income:
Loss for the period -- -- -- -- -- --
Total comprehensive income -- -- -- -- -- --
Realisation of revaluation reserve -- -- -- (576) -- (576)
Total contributions by and
distributions to owners of the -- -- -- (576) -- (576)
company, recognised directly
in equity
Other comprehensive income: -- -- -- -- -- --
Other comprehensive income for
the year -- -- -- -- -- --
Balance as at 31 December
2014 16 319 (877) 179 898 8 067 1 979 10 046
Reviewed Condensed Consolidated Interim Statement of Changes in Equity for the six months ended
31 December 2014 cont…
Accumulated Non-controlling
Loss Total interest Total equity
R’000 R’000 R’000 R’000
Group
Balance at 30 June 2013 (118 534) 88 581 1 282 89 863
Comprehensive income:
Loss for the period (18 348) (18 348) (333) (18 681)
Total comprehensive income (18 348) (18 348) (333) (18 681)
Realisation of revaluation reserve (1 550) -- -- --
Total contributions by and
distributions to owners of the
company, recognised directly in
equity (1 550) -- -- --
Other comprehensive income:
Other comprehensive income for the
period -- -- -- --
Balance at 31 December 2013 (138 432) 70 233 949 71 182
Comprehensive income:
Loss for the period (83 264) (83 264) 1 004 (82 260)
Total comprehensive income (83 264) (83 264) 1 004 (82 260)
Accumulated Non-controlling
Loss Total interest Total equity
Realisation of revaluation reserve 2 703 -- -- --
Total contributions by and
distributions to owners of the
company, recognised directly in
equity 2 703 -- -- --
Other comprehensive income:
Other comprehensive income for the period -- -- -- --
Balance at 30 June 2014 (218 993) (13 031) 1 953 (11 078)
Comprehensive income:
Loss for the period (47 312) (47 312) 1 066 (46 246)
Total comprehensive income (47 312) (47 312) 1 066 (46 246)
Purchase of additional interest in
Herbal and Homeopathic (305) (305) (314) (619)
Realisation of revaluation reserve 576 -- -- --
Total contributions by and
distributions to owners of the
company, recognised directly in
equity 271 (305) (314) (619)
Other comprehensive income:
Other comprehensive income for
the year -- -- -- --
Balance as at 31 December 2014 (266 034) (60 648) 2 705 (57 943)
Reviewed Condensed Interim
Consolidated Segmental Analysis
for the six months ended 31 Outsource Holding
December 2014 manufacturing Packaging Company Group
R’000 R’000 R’000 R’000
Total segment revenue
- reviewed as at 31 December 2014 263 140 20 810 -- 283 950
- audited as at 30 June 2014 579 650 49 396 -- 629 046
- unaudited six months ended 31
December 2013 251 530 31 915 -- 283 445
1
Inter-segment revenue
-reviewed as at 31 December 2014 (1 434) (3 855) -- (5 289)
- audited as at 30 June 2014 -- (8 592) -- (8 592)
- unaudited six months ended 31
December 2013 (5 349) ( 4 864) -- (10 213)
Revenue from external customers
-reviewed as at 31 December 2014 261 706 16 955 -- 278 661
- audited as at 30 June 2014 579 650 40 804 -- 620 454
- unaudited six months ended 31
December 2013 246 181 27 051 - 273 232
Operating profit/(loss) before
impairments
-reviewed as at 31 December 2014 (15 772) (4 843) (3 395) (24 010)
- audited as at 30 June 2014 (12 710) (16 360) (8 099) (37 169)
- unaudited six months ended 31
December 2013 (8 791) (4 928) (4 513) (18 232)
Goodwill impairment
-reviewed as at 31 December 2014 -- -- -- --
- audited as at 30 June 2014 (32 945) -- -- (32 945)
- unaudited six months ended 31
December 2013 -- -- -- --
Impairment of fixed assets
-reviewed as at 31 December 2014 (8 438) (1 117) -- (9 555)
- audited as at 30 June 2014 -- -- -- --
- unaudited six months ended 31
December 2013 -- -- -- --
Operating profit/(loss)
-reviewed as at 31 December 2014 (24 210) (5 960) (3 395) (33 565)
- audited as at 30 June 2014 (39 036) (40 845) (6 150) (86 031)
- unaudited six months ended 31
December 2013 (8 791) (4 928) (4 513) (18 232)
Net finance costs
-reviewed as at 31 December 2014 (8 173) (716) (990) (9 879)
- audited as at 30 June 2014 (15 255) (2 714) (2 491) (20 460)
- unaudited six months ended 31
December 2013 (3 600) (659) (3 290) (7 549)
Profit/(loss) before tax and share
of profit of joint venture
-reviewed as at 31 December 2014 (32 383) (6 676) (4 385) (43 444)
- audited as at 30 June 2014 (60 910) (19 074) (8 932) (88 916)
- unaudited six months ended 31
December 2013 (12 391) (5 587) (7 803) (25 781)
Total assets
-reviewed as at 31 December 2014 257 783 48 903 16 300 322 986
- audited as at 30 June 2014 329 530 54 161 14 769 398 460
- unaudited six months ended 31
December 2013 358 094 61 398 9 424 428 916
Total liabilities
-reviewed as at 31 December 2014 213 346 26 628 140 955 380 929
- audited as at 30 June 2014 241 106 28 653 122 356 392 115
- unaudited six months ended 31 240 037 25 893 91 804 357 734
December 2013
1
Includes intra-segment revenue.
Additional information
Reviewed Audited Unaudited 6
six months ended Year ended months ended 31
31 December 2014 30 June 2014 December 2013
R’000 R’000 R’000
Capital Commitments 11 536 14 905 0
Depreciation of property, plant
and equipment 10 141 18 730 5 136
Purchase of property, plant and
equipment 730 16 078 2 869
Impairment of fixed assets 9 555 316 0
Impairment of goodwill 0 15 521 0
Operating lease commitments 126 826 103 859 83 638
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