Wrap Text
Reviewed Condensed Consolidated Results for the Year Ended 30 June 2015
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 PROVISIONAL CONDENSED CONSOLIDATED RESULTS FOR THE YEAR ENDED
30 JUNE 2015
Directors Commentary
The directors of Beige present the reviewed results for the year ended 30 June 2015. These results show
the reviewed consolidated position of Beige compared to 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
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 the ISIN number is ZAE000034161.
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. The preference loan was capitalised by way of a claw-back offer which closed on 8
May 2015.
3. Economic and business review
Economic growth in South Africa averaged a tepid 1.2% per annum and was capped by a quarter on
quarter decline of 1.6% at June 2015. Manufacturing activity declined by 6.3% quarter-on-quarter,
mainly as a result of decreases in two manufacturing divisions, namely basic iron and steel, non-
ferrous metal products, metal products and machinery; and petroleum, chemical products, rubber and
plastic products. The latter industry is the sector within which Beige and its primary customers conduct
business. Growth has been hampered by 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 and commodity based economies like South Africa have seen significant capital flight
from foreign investors in the light of lower demand and falling commodity prices. All these factors have
contributed to a significant devaluation of the South African Rand versus the major currencies. This
has 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 five months
bottoming out at a record low of 46.4 points before improving to 51.1 in August 2015.
The impact of the higher energy prices and exchange rates has driven up the price of key raw
materials during the financial year under review. The contract manufacturing sector continues to
labour under the twin effects of higher costs of manufacturing and lower volumes arising from
economic uncertainty.
Revenues from the Outsourced Manufacturing segment have declined by 22.0% compared to the
previous year. Margins were eroded, having been indirectly impacted by the economic conditions and
also the increase in volumes of lower margin product. However, 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 has built on the
growth of throughput and profitability that was achieved in the previous financial year. It must also be
noted that Beige increased its shareholding in H&H from 61.4% to 68.6% during the financial year
under review.
The Packaging operation revenues have declined compared to the same period in 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. Notwithstanding this and in line with the board’s decision to re-assess non-
performing, non-core assets as part of the turnaround strategy detailed below, the board has resolved
to consolidate the Crystal Pack and Chloorkop plants into one operational unit. Further details of this
proposed consolidation will be released on SENS in due course.
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 is in the process of being implemented, the results for the period ended
30 June 2015 reflect that the full benefits thereof had not, at the conclusion of the period, filtered
through to the Group’s financial performance.
Turnover declined by 23.0% compared to the previous year, comprising an overall decline in sales of
22.0% in Outsource Manufacturing and a reduction of 36.4% in Packaging. Notwithstanding this, the
board was pleased to note a growth in sales of 2% at the half year results. The Packaging segment
sales were depressed largely due to the continued impact of the loss of an agency agreement with
certain overseas principals during the course of the previous financial year.
Sales orders for the Outsource Manufacturing segment were robust. However, the business was
unable to convert the full sales orders into product due to the cash constraints that the business
experienced. These cash constraints resulted in suppliers not being paid timeously and hence the
supply of raw materials was erratic. Production was consequently not evenly spread during the course
of each month and the resultant bottlenecking in the production facilities when raw materials became
available meant that all sales orders could not be fulfilled. Turnover was further negatively impacted by
the change in business model initially implemented with a major customer from May 2015. The new
business model incorporates the supply of raw materials at no cost by the customer. Hence the selling
price to this customer has been reduced to take into account the supply of these materials at no cost;
although margins in Rand terms have been maintained. The impact of new volumes from new
customers was diluted due to this.
Gross margins deteriorated from 7.9% in June 2014 to 6.3% for the year 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. Beige benefits from this in that in an increasing raw material cost environment, as
experienced, the Rand value contribution per product is maintained, although 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 year under review in Outsource Manufacturing and was replaced by the new
multinational customers at a lower margin. The pricing to these new customers has been reviewed
which will result in an improvement in margins going forward. The Packaging segment sales at high
contribution declined during the year, which further served to dilute the group margins.
The Packaging segment contributed R9.5m to the operating loss before impairment charges. This loss
was 41.9% lower than the previous year despite the lower turnover of R25.9m. The operating loss
before impairment charges in Outsource Manufacturing of R27.2m was R14.5m greater than the
previous year. Consequently, the operating loss before impairment charges of the Group amounted to
R38.6m compared to the previous year of R37.2m. The net interest expense was R21.4m and
included the interest on the finance lease capitalised in respect of the buildings and 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, for the Durban, Lornamead and Amcos CGU’s as the
independent valuation of these assets was below the 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
Beige trades in difficult market conditions. However, the volumes from the customers that were
secured in the previous financial year are anticipated to continue to grow 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. The weak exchange rate has
created the opportunity to grow exports.
Price increases been secured from customers in Outsourced Manufacturing to remedy loss making
business. The change in business model with certain customers, which was implemented from May
2015, will improve the working capital requirements of the business. The focus will continue to be to
pursue additional production volumes to utilise excess capacity.
6. Turnaround Strategy
As previously announced, a turnaround strategy has been implemented, the benefits of which were
first evidenced in July 2015. Although challenges with supply issues were again experienced in the
short term which negatively impacting revenue, these supply issues were largely outside the control of
management. The management team remains committed to the continued implementation of this
turnaround strategy, the key elements of which are set out below:
- The recapitalisation of the Group. During the year under review, R60m of loan accounts was
capitalised via a claw back offer which closed in May 2015. Further funding initiatives are set
out in paragraph 7 below.
- Continuing to inculcate a customer centric culture
- Reassessing non-performing, non-core assets and/or products
- Building turnover utilising current unused capacity
- Consolidation of product manufacture to drive efficiencies
- Centralising key services to drive cost savings
- Focusing on key capital improvements
Turnover: Turnover is expected to reduce substantially in light of the new business model. This model
will result in an unusually high margin percentage although the Rand value contribution will only be
slightly improved. A further recapitalisation of the group, as noted 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.
The business has historically succumbed to an extensive and somewhat fragmented “tail” of products
within the portfolio. This position was rectified following a review and rationalisation of all low volume,
low margin SKU’s. All new product development is assessed based on the achievement of targeted
thresholds.
Exports sales are being targeted as an avenue for volume growth.
Margin: Margin improvement measures include implementing price increases to recover margins in
loss making products; targeting production yield improvements; 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: Further exercises are being taken to reduce headcount and streamline the business.
7. Going concern
The Holding company (“Lion Match”) provided a loan facility of R100m of which a total of R28m has
been advanced to date. The ability of the holding company to meet its commitment to this loan facility
is dependent on it procuring the necessary funds .The holding company has agreed to advance
R30m in October 2015,further R20m in November 2015 and R10m in December 2015. The loan that
was provided and any advances on the facility will be payable on 1 July 2018.The directors have
satisfied themselves that the holding company has the ability to provide funding in terms of the
funding facility.
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 continuing to successfully implement the turnaround strategies set
out above, the group and the company will have access to sufficient funding to enable them to meet
their foreseeable cash requirements.
The turnaround strategies that the Directors have already successfully implemented include:
- The R60m claw-back offer, completed in May 2015, resulted in a recapitalisation of the balance
sheet;
- Various increases in the conversion costs were secured between 1 April 2015 and 1 August
2015;
- Changes in the business model with key customers have been agreed and will result in reduced
working capital investment together with the injection of funds will support the ability to execute
orders received.
The on-going strategies on which the Directors have already embarked on, but which will only be
implemented during the current financial year include:
- Identifying new products for manufacture, which will contribute to an increase in the sales
volume and margin, improving efficiencies of scale;
- the identification of certain non-core assets for disposal;
- The proposed consolidation of the Crystal Pack into the Chloorkop manufacturing plant.
- 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 AD Sinclair was appointed as a non-executive director with effect from 1 July 2014, but
subsequently resigned on 30 June 2015;
- Mr PW Jooste was appointed as a non-executive director with effect from 7 August 2014; and
- Mr M Tembe resigned as an independent non-executive director with effect from 30 June 2015.
By order of the Board
NMI (Gora) Abdoola Jithan Bridgmohan
Executive Chairman Group Financial Director
30 September 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 (#*)
(#) 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 PROVISIONAL CONDENSED CONSOLIDATED RESULTS FOR THE YEAR ENDED
30 JUNE 2015
1. Basis of preparation
The condensed consolidated reviewed provisional results for the year ended 30 June 2015 were
prepared in accordance with the requirements of the Johannesburg Stock Exchange’s (“JSE”)
Listings Requirements and the requirements of the Companies Act of South Africa. The JSE Listings
Requirements require 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 year ended 30 June 2015
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 provisional financial information for the year ended 30 June 2015, that comprise the
condensed consolidated statement of financial position at 30 June 2015, 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 year 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 provisional financial statements. A copy of the review opinion
is available for inspection at the company’s registered office. Any reference to future financial
performance included in this announcement, 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 financial
statements which indicates that the Group incurred a net loss of R81,2m for the year ended 30 June
2015 and, as of that date, the Group’s current liabilities exceeded its current assets by R123,9m. Note
5 also indicate 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 R79 million relating to the
Durban and Alrode property jointly owned by U housing (Pty) Ltd, in which Beige holds a 50% interest.
5. Going Concern
The Group incurred a net loss for the year-ended 30 June 2015 of R80.6m (30 June 2014: R100.9m)
and, as at that date its current liabilities (excluding the shareholder loan) exceeded its current assets
by R101.2m (30 June 2014: R63m). The holding company has subordinated its existing loan as at 30
June 2015 of R22.7m 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 and Company access to funding
and turnaround the business:
- The Holding company (“Lion Match”) provided a loan facility of R100m of which a total of
R28m has been advanced to date. The ability of the holding company to meet its
commitment to this loan facility is dependent on it procuring the necessary funds .The
holding company has agreed to advance R30m in October 2015, further R20m in November
2015 and R10m in December 2015
- The board has agreed, as further headroom for the funding of the group, to dispose of non-
core assets that will release R50m in cash flow. The final amount that will be received is
dependent on market conditions.
- Securing of additional volumes through existing customers.
The attainment of the budget for 2016 and 2017 is dependent on the ability of the Group to procure
and manufacture budgeted volumes, successfully negotiate increases in conversion margins,
managing working capital in order to execute orders received, and achieving the planned budgeted
cost reduction. The Board has approved a budget for the 2016 year which reflects a loss and a
marginal profit for the 2017 financial year.
These conditions give rise to a material uncertainty which may cast significant doubt about the Group
and 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 holding company will be able to meet its commitment and
advance funds to the business in terms of its loan facility and the group will successfully dispose of
non-core assets, attain the budgeted revenue, margins, costs and working capital and realise assets
and settle liabilities in the ordinary course of business.
6. Impairment of Fixed Assets
An amount of R20.8m has been recognised as an impairment charge in the statement of
comprehensive income during the 2015 financial year. The impairment of assets related mainly to an
impairment of the plant and machinery in the Quality Products Durban cash-generating unit ("CGU")
of R8.4m and the Lornamead CGU of R9.9m. These CGUs form part of the Outsource
Manufacturing Segment. The impairment charges arose as the fair value less costs to sell of these
assets were below their carrying values.
7. Claw-back Offer
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, was completed during the year. The impact of the claw-back
arrangement is presented as part of the statement of changes in equity. The claw-back arrangement,
which is effectively a rights issue, has also been taken into account in the computation of the
earnings per share information.
8. Events after reporting period
The board has approved consolidation of the Crystal Pack business into the Chloorkop manufacturing
plant to drive efficiencies. The consolidation will improve the internal integration of manufacturing of
packaging and contract manufacturing in one unit. Surplus equipment in the Crystal Pack segment will
be disposed after the completion of the consolidation process.
9. Accounting Policies
The accounting policies applied in the preparation of these condensed consolidated provisional
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.
10. Related party transactions
The group, in the ordinary course of business, entered into various sale and purchase transactions
with related parties.
The interim financial statements are presented on a condensed consolidated basis.
REVIEWED PROVISIONAL CONDENSED CONSOLIDATED RESULTS FOR THE YEAR ENDED
30 JUNE 2015
Provisional Condensed Consolidated Statement of Financial Position as at 30 June 2015
Reviewed Audited
12 months 12 months
30 June 2015 30 June 2014
R’000 R’000
ASSETS
Non-current assets 161 407 185 075
Property, plant and equipment 145 704 172 408
Investment in joint venture 15 047 12 507
Other receivables 0 160
Deferred income tax assets 656 0
Current assets 126 705 195 962
Inventories 47 214 78 205
Trade and other receivables 66 530 101 166
Cash and cash equivalents 12 961 16 591
Total assets 288 112 381 037
EQUITY AND LIABILITIES
Equity attributable to equity holders of the company (35 581) (13 031)
Ordinary share capital 75 087 15 442
Ordinary share premium 179 262 179 898
Other reserves 9 470 10 622
Accumulated loss (299 400) (218 993)
Non-controlling interest 2 259 1 953
Total equity (33 322) (11 078)
Liabilities
Non-current liabilities 70 810 72 985
Borrowings 66 876 70 954
Deferred income tax liabilities 3 934 2 031
Holding company loan 0 0
Current liabilities 250 624 319 130
Trade and other payables 151 514 190 864
Current portion of long-term borrowings 13 020 15 094
Current income tax liabilities 1 198 1 198
Preference share loan 0 24 363
Bank overdrafts 62 139 51 748
Holding company loan 22 753 35 863
Total liabilities 321 434 392 115
Total equity and liabilities 288 112 381 037
Weighted Average number of Ordinary shares (000’s)
In issue 4 544 197 1 544 197
Net asset value per share information (net of non-
controlling interest)
Net asset value per share (cents) (0.001) (0.001)
Net tangible asset value per share (cents) (0.001) (0.001)
Provisional Condensed Consolidated Statement of Comprehensive Income for the year ended
30 June 2015
Reviewed Audited
12 months 12 months
30 June 2015 30 June 2014
R’000 R’000
Revenue 478 074 620 454
Cost of sales (448 138) (571 716)
Gross profit 29 936 48 738
Distribution costs (10 213) (8 706)
Administrative expenses (58 287) (77 201)
Operating loss before impairment (38 564) (37 169)
Impairment charge – Fixed Assets (20 848) (0)
Impairment charge – Goodwill (0) (32 945)
Operating loss (59 412) (70 114)
Finance income 1 424 1 049
Finance costs (22 866) (21 509)
Loss after net financing costs (80 854) (90 574)
Share of profit of joint venture 1 467 1 658
Loss before income tax (79 387) (88 916)
Income tax expense (1 247) (12 025)
Loss for the year (80 634) (100 941)
Other comprehensive income:
Other comprehensive income for the year net of tax - -
Total comprehensive loss for the year (80 634) (100 941)
Total comprehensive loss attributable to:
Equity holders of the company (81 254) (101 612)
Non-controlling interest 620 671
(80 634) (100 941)
Loss for the year (80 634) (100 941)
Non-controlling interest (620) (671)
Loss for the year attributable to equity holders of the
company (81 254) (101 612)
Headline earnings adjustments:
Total comprehensive loss for the year attributable to
equity holders of the company (81 254) (101 612)
Adjustments:
Profit on sale and leaseback of property net of tax (18) (18)
Impairment of fixed assets 20 848 317
Impairment of intangible asset 0 32 945
Headline earnings for the year attributable to equity
holders of the company (60 424) (68 368)
Ordinary shares (000’s):
Weighted average shares in issue (Note 1) 2 526 671 1 969 383
Diluted (Note 2) 2 526 671 1 969 383
Earnings per share information*
Earnings per share (cents) (3.22) (5.16)
Headline earnings per share (cents) (2.39) (3.47)
Diluted earnings per share (cents) (3.22) (5.16)
Diluted headline earnings per share (cents) (2.39) (3.47)
* Prior year information has been adjusted for effects of claw
back offer concluded in May 2015
Notes:
1. Nil (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. Basic earnings per share is calculated using the weighted average number of ordinary shares in issue
during the year.
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 June 2014 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, 30 June 2014 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.
3. 2 912 375 983 shares were issued on 13 April 2015 in respect of the claw back offer.
Provisional Condensed Consolidated Statement of Cash Flows for the year ended 30 June 2015
Reviewed Audited
12 months 12 months
30 June 2015 30 June 2014
R’000 R’000
Cash flows from operating
activities:
Net cash generated from operating
activities (19 397) 8 729
Cash flows from investing
activities:
Net cash used in investing activities 55 388 (12 996)
Cash flows from financing
activities:
Net cash generated from financing
activities (50 012) 4 772
Net decrease in bank overdrafts
including cash and cash
equivalents (14 021) 505
Bank overdrafts including cash and
cash equivalents at the beginning of
the year (35 157) (35 662)
Bank overdrafts including cash
and cash equivalents at the end of
the year (49 178) (35 157)
Provisional Condensed Consolidated Statement of Changes in Equity for the year ended
30 June 2015
Share
Ordinary Ordinary Ordinary Revaluat based
share treasury Share ion 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 year -- -- -- -- -- --
Total comprehensive
income for the year -- -- -- -- -- --
Realisation of revaluation
reserve -- -- -- (1 153) -- (1 153)
Total contributions by and
distributions to owners of
the company, recognised
directly in equity -- -- -- (1 153) -- (1 153)
Balance at 30 June 2014 16 319 (877) 179 898 8 643 1 979 10 622
Comprehensive income:
Loss for the year -- -- -- -- -- --
Total comprehensive
income -- -- -- -- -- --
Realisation of revaluation
reserve -- -- -- (1 152) -- (1 152)
Clawback Offer 59 645 -- (636) -- -- --
Sale of treasury shares -877 877 -- -- -- --
Purchase of Additional interest
in Herbal and Homeopathic
Proprietary Limited -- -- -- -- -- --
Total contributions by and
distributions to owners of
the company, recognised
directly in equity 58 768 877 (636) (1 152) -- (1 152)
Other comprehensive
income: -- -- -- -- -- --
Other comprehensive income
for the year -- -- -- -- -- --
Balance as at 30 June 2015 75 087 -- 179 262 7 491 1 979 9 470
Provisional Reviewed Condensed Consolidated Statement of Changes in Equity for the year ended
30 June 2015 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 year (101 612) (101 612) 671 (100 941)
Total comprehensive income (101 612) (101 612) 671 (100 941)
Realisation of revaluation reserve 1 153 -- -- --
Total contributions by and
distributions to owners of the
company, recognised directly in
equity 1 153 -- -- --
Other comprehensive income:
Other comprehensive income for the
year -- -- -- --
Balance at 30 June 2014 (218 993) (13 031) 1 953 (11 078)
Comprehensive income:
Loss for the year (81 254) (81 254) 620 (80 634)
Total comprehensive income (81 254) (81 254) 620 (80 634)
Realisation of revaluation reserve 1 152 -- -- --
Clawback Offer -- 59 009 -- 59 009
Sale of treasury shares -- -- -- --
Purchase of additional interest in
Herbal and Homeopathic Proprietary
Limited (305) (305) (314) (619)
Total contributions by and
distributions to owners of the
company, recognised directly in
equity 847 58 704 (314) 58 390
Other comprehensive income:
Other comprehensive income for the
year -- -- -- --
Balance at 30 June 2015 (299 400) (35 581) 2 259 (33 322)
Provisional Condensed
Consolidated Segmental Analysis Outsource Holding
for the year ended 30 June 2015 manufacturing Packaging Company Group
R’000 R’000 R’000 R’000
Total segment revenue
- reviewed as at 30 June 2015 452 129 35 905 -- 488 034
- audited as at 30 June 2014 579 650 49 396 -- 629 046
Inter-segment revenue1
-reviewed as at 30 June 2015 (0) (9 960) -- (9 960)
- audited as at 30 June 2014 -- (8 592) -- (8 592)
Revenue from external customers
-reviewed as at 30 June 2015 452 129 25 945 -- 478 074
- audited as at 30 June 2014 579 650 40 804 -- 620 454
Operating profit/(loss) before
impairments
-reviewed as at 30 June 2015 (27 170) (9 503) (1 891) (38 564)
- audited as at 30 June 2014 (12 710) (16 360) (8 099) (37 169)
Goodwill impairment
-reviewed as at 30 June 2015 -- -- -- --
- audited as at 30 June 2014 (32 945) -- -- (32 945)
Impairment of fixed assets
-reviewed as at 30 June 2015 (19 733) (1 115) -- (20 848)
- audited as at 30 June 2014 -- -- -- --
Operating profit/(loss)
-reviewed as at 30 June 2015 (46 903) (10 618) (1 891) (59 412)
- audited as at 30 June 2014 (45 655) (16 360) (8 099) (70 114)
Net finance costs
-reviewed as at 30 June 2015 (18 339) (3 017) (86) (21 442)
- audited as at 30 June 2014 (15 255) (2 714) (2 491) (20 460)
Profit/(loss) before tax and share
of profit of joint venture
-reviewed as at 30 June 2015 (65 242) (13 635) (1 977) (80 854)
- audited as at 30 June 2014 (60 910) (19 074) (10 590) (90 574)
Total assets
-reviewed as at 30 June 2015 227 510 43 610 16 992 288 112
- audited as at 30 June 2014 329 530 54 161 14 769 398 460
Total liabilities
-reviewed as at 30 June 2015 208 759 24 653 88 022 321 434
- audited as at 30 June 2014 241 106 28 653 122 356 392 115
1
Includes intra-segment revenue.
Additional information
Reviewed Audited
12 months ended Year ended
30 June 2015 30 June 2014
R’000 R’000
Capital Commitments 10 541 14 905
Depreciation of property, plant
and equipment 18 864 18 730
Purchase of property, plant and
equipment 1 407 16 078
Impairment of fixed assets 20 848 316
Impairment of goodwill 0 15 521
Operating lease commitments 93 415 103 859
Date: 01/10/2015 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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