Wrap Text
Audited Provisional Condensed Financial Results For The Year Ended 29 February 2016
NUTRITIONAL HOLDINGS LIMITED
Registration number 2004/002282/06
(Incorporated in the Republic of South Africa)
("the Group" or "the Company")
Share code : NUT ISIN : ZAE000156485
AUDITED PROVISIONAL CONDENSED FINANCIAL RESULTS FOR THE YEAR
ENDED 29 FEBRUARY 2016
AUDITED PROVISIONAL CONDENSED CONSOLIDATED
STATEMENT OF PROFIT AND LOSS AND COMPREHENSIVE INCOME
Audited Audited
year ended year ended
Figures in R thousands 29 February 28 February
2016 2015
Revenue 38 269 37 753
Operating loss before interest and
taxation (4 692) (4 063)
Finance costs (710) (786)
Loss before taxation (5 403) (4 849)
Taxation (12) 1 671
Loss for the year (5 415) (3 178)
Other comprehensive income for the (59) 4 921
year net of taxation
Total comprehensive (loss) profit (5 474) 1 743
Loss per share (cents) – basic and
diluted (0.16) (0.15)
Headline loss per share (cents) -
basic and diluted (0.16) (0.15)
Number of ordinary shares in issue
(000)
- issued net of treasury shares 3 407 368 3 407 368
- weighted-average 3 407 368 2 133 053
- Diluted weighted-average 3 458 193 2 172 414
Calculation of headline loss
(R’000)
Loss attributable to ordinary
shareholders (5 474) (3 178)
Profit on disposal of property,
plant and equipment (19) (60)
Headline loss attributable to
ordinary shareholders (5 493) (3 238)
AUDITED PROVISIONAL CONDENSED CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
Audited Audited
year ended year ened
Figures in R thousands 29 February 28 February
2016 2015
ASSETS
Non-current assets
Property, plant and equipment 24 764 20 055
Intangible assets 13 834 12 791
Deferred taxation 10 310 9 896
48 908 42 742
Current assets
Inventories 4 819 6 184
Trade and other receivables 4 758 5 675
Loans receivable - 59
Cash and cash equivalents 67 1 693
9 644 13 611
Non-current assets held for sale 20 20
TOTAL ASSETS 58 572 56 373
EQUITY AND LIABILITIES
Stated capital 145 750 145 750
Reserves 10 818 10 729
Accumulated loss (116 358) (110 943)
Total shareholders’ funds 40 210 45 536
Non-current liabilities
Loans from related party 7 374 -
Instalment sale creditors 20 98
Deferred taxation 5 222 4 737
12 616 4 835
Current liabilities
Trade and other payables 4 499 5 356
Loans from related parties 250 -
Bank overdraft 920 577
Instalment sale creditors 77 69
5 746 6 002
Total liabilities 18 362 10 837
TOTAL EQUITY AND LIABILITIES 58 572 56 373
Net asset value per share (cents) 1.2 1.3
AUDITED PROVISIONAL CONDENSED CONSOLIDATED STATEMENT OF CASH
FLOWS
Audited Audited
year ended year ended
29 February 28 February
2016 2015
Figures in R thousands
Cash used in operations (2 146) (5 035)
Finance costs (710) (786)
Cash flows from operating
activities (2 856) (5 821)
Cash flows from investing
activities (6 667) (770)
Cash flows from financing
activities 7 554 12 957
Net (decrease)/increase in cash
and cash equivalents (1 969) 6 366
Cash and cash equivalents at
beginning of year 1 116 (5 250)
Cash and cash equivalents at end
of year (853) 1 116
AUDITED PROVISIONAL CONDENSED CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY FOR THE YEAR ENDED 29 FEBRUARY 2016
Total
Stated Treasury share
Figures in R thousands capital shares capital
Balance at 28 February 2014
- audited 138 463 (6 741) 131 722
Issue of shares 14 028 - 14 028
Share-based payment reserve - - -
Total comprehensive loss for
the year - - -
Balance at 28 February 2015
– audited 152 491 (6 741) 145 750
Share-based payment reserve - - -
Total comprehensive loss for
the year - - -
Balance at 29 February 2016 152 491 (6 741) 145 750
- audited
Share-based Revaluation Accumulated
payment
reserve reserve loss
Figures in R thousands
Balance at 28 February
2014 - audited - 5 659 (107 765)
Issue of shares - - -
Share-based payment
reserve 149 - -
Total comprehensive loss
for the year - 4 921 (3 178)
Balance at 28 February
2015 – audited 149 10 580 (110 943)
Share-based payment
reserve
Total comprehensive loss
for the year - (59) (5 415)
Balance at 29 February
2016 297 10 521 (116 358)
Total
equity
Figures in R thousands
Balance at 28 February
2014 - audited 29 616
Issue of shares 14 028
Share-based payment
reserve 149
Total comprehensive loss
for the year 1 743
Balance at 28 February
2015 – audited 45 536
Share-based payment
reserve 148
Total comprehensive loss
for the year (5 474)
Balance at 29 February
2016 40 210
AUDITED PROVISIONAL CONDENSED GROUP SEGMENTAL ANALYSIS
Business Nutritional
Segments Foods Pharmaceuticals Services Consolidated
R'000
For the year
ended 29
February 2016 -
audited
Revenue from
external sales 37 070 1 199 - 38 269
Revenue from
internal sales - - 1 380 1 380
Segment
(loss)/profit (728) 722 (5 397) (5 403)
before tax
Taxation (12)
Loss for the
year (5 415)
Total assets 41 176 7 221 12 366 60 763
For the year
ended 28
February 2015 -
audited
Revenue from
external sales 33 904 3 849 - 37 753
Revenue from
internal sales - - 2 640 2 640
Segment (loss)
profit before 4 764 282 (4 974) 72
tax
Taxation 1 671
Loss for the
year 1743
Total assets 37 893 6 471 12 287 56 651
For management purposes the Group is organised into three
major operating divisions, namely Nutritional Foods,
Pharmaceuticals and Services. These divisions are the basis on
which the company reports its primary segment information.
The Nutritional Foods division involves the manufacture of
high-protein, fortified dry foods and food supplements. The
Pharmaceuticals division involves the sale of registered
pharmaceuticals, complimentary and natural medicines. The
Services division involves the providing of administration and
management services.
These operating segments are monitored by the Group’s chief
decision maker and strategic decisions are made on the basis
of adjusted segment operating results.
BASIS OF PRESENTATION
The provisional financial results for the year ended 29
February 2016 have been prepared in accordance with
International Financial Reporting Standards (“IFRS”), the
presentation and disclosure requirements of IAS 34: Interim
Financial Reporting, the SAICA Financial Reporting Guides as
issued by the Accounting Practices Committee, Financial
Pronouncements as issued by the Financial Reporting Standards
Council, the Listing Requirements of the JSE Limited and the
requirements of the Companies Act, No 71 of 2008. The results
have been prepared in terms of IFRS on the historical cost
basis and are consistent, in all material respects, with the
accounting policies and methods applied in the previous
corresponding period, except for the measurement of land and
buildings and certain financial instruments which are measured
at fair value and the adoption of improved, revised or new
standards and interpretations. The aggregate effect of these
Accounting Changes in respect of the year ended 29 February
2016 is nil. The condensed financial results have been
prepared under the supervision of RS Etchells, in his capacity
as Chief Financial Officer.
NATURE OF BUSINESS
The Group’s primary business focus is to manufacture, market
and sell fortified dry food products and supplements,
manufactured from maize, sorghum and soya as well as the sale
of scheduled pharmaceuticals registered with the Medicines
Control Council and other complimentary/natural medicines.
OVERVIEW
Having concluded the BEE transaction in the 2015 financial
year the group has continued to face adverse market conditions
due to high increases in the price of basic foods resulting in
consumers reducing their spending patterns. Though our prices
were adjusted the price adjustment achieved was less than the
increase in the cost of raw inputs thus having a negative
impact on margins.
A further strategic introduction of an equity investor with
direct access to their captured market was negotiated and
agreed to, subject to payment of the purchase consideration by
the investor on/or before the 31st of December 2015. The
investor, however, failed to effect payment resulting in the
cancellation of the transaction. We have continued with a
drive to gain access into that captured market and anticipate
a positive outcome in this regard. The impact of this drive
should come through in the second part of the 2017 financial
year.
The Company has continued to seek opportunities to unlock the
full potential of the Klerksdorp factory as well as increase
the sales volumes of our water purification products. Given
the current water crisis in the country and the SADC region,
we are anticipating a growth in this area of business in the
new financial year.
The group, post year end, has entered negotiations to acquire
100% of Kairos (Pty) Ltd via the issue of 70 million
Nutritional Holdings Ltd shares, subject to certain suspensive
conditions which to date have not been met. The successful
conclusion of this transaction will bring a considerable
amount of FMCG experience into the group. Kairos has recently
been awarded certain contracts for the supply of infant feed
to combat malnutrition and will compliment the Company’s
strategy with regards the supply of essential staple foods.
Kairos will continue to be headed up by Mrs Michelle Bristow.
Michelle holds a BSc.Dietetics (Hons) from Stellenbosch
University. Michelle is a registered dietician and has worked
for various pharmaceutical companies both in South Africa and
the United Kingdom over the past 15 years. Her extensive
knowledge will assist the Group in attaining the desired goal
of becoming a primary provider of nutritional staple foods
products throughout Southern Africa.
Mr Ian Murgatroyd, who was a director of Kairos, has been
appointed as executive Commercial Director of the Group with
effect from the 15th April 2016. Ian has over 12 years
experience in both the pharmaceutical and FMCG markets having
worked for various national pharmaceutical and FMCG food brand
companies.
Financial Performance
Group Turnover of R38,269 million, 1 % up on the R 37,753
million of the previous corresponding period. The headline
loss increased by 1c from a headline loss of 15c to 16c per
share.
GOING CONCERN
Shareholders are advised that the audited results for the year
ended 29 February 2016 have been prepared on a going concern
basis. This basis presumes that funds will be available to
finance future operations and that the realization of assets
and settlement of liabilities, contingent obligations and
commitments will occur in the ordinary course of business.
DIVIDEND
No dividend has been declared for the year.
AUDIT OPINION
Grant Thornton have audited the annual financial statements
for the year ended 29 February 2016 and their audit report is
available for inspection at the Company’s registered office.
These provisional condensed results are extracted from audited
information, but are not in itself audited. The directors
therefore take full responsibility for the preparation of the
condensed results and that the financial information has been
correctly extracted from the underlying financial statements.
The auditor’s report does not necessarily cover all of the
information contained in this announcement/financial report.
Shareholders are therefore advised that in order to obtain a
full understanding of the nature of the auditor’s work, they
should obtain a copy of that report, together with the
accompanying financial information, from the registered office
of the company.
Changes to the Group’s board
Mr Ian Murgatroyd, was appointed as executive Commercial
Director of the Group with effect from the 15th April 2016. Mr
Costa Kapnias was appointed as the Chairman of the Audit and
Risk Committee and member of the Remuneration Committee
effective from 26 February 2016. Mr Tony Pinfold was
appointed as a member of the Audit and Risk Committee
effective from 26 February 2016.
On behalf of the Board
RS Etchells Umhlanga Rocks
Chief Executive Officer 24 May 2016
Registered Office:
Unit 20, Boulevard Business Park, 14 Belladonna Road,
Cornubia, Kwa-Zulu Natal
Tel: +27 31 536 8066
Auditors
Grant Thornton (Durban)
Designated advisors
PSG Capital Proprietary Limited
Transfer secretaries:
Trifecta Capital Services Proprietary Limited, Trifecta
Capital House, 13 Beacon Road, Florida-North, 1709
Company secretary
JA Etchells CA(SA)
Directors:
RS Etchells (Chief Financial Officer), C Kapnias (Non-
Executive), TV Mokgatlha (Chief Executive Officer), I
Murgatroyd (Commercial Director), AR Pinfold (Non-Executive),
GR Wambach (Non-Executive Chairman)
Date: 24/05/2016 04:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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