Wrap Text
Unreviewed condensed consolidated Interim financial results for the six months ended 31 December 2019
ALVIVA HOLDINGS LIMITED
(incorporated in the Republic of South Africa)
Registration number: 1986/000334/06
ISIN: ZAE000227484 Share code: AVV
“Alviva” or “the Company” or “the Group”
SUMMARY ANNOUNCEMENT OF THE UNREVIEWED CONDENSED CONSOLIDATED
INTERIM FINANCIAL RESULTS
for the six months ended 31 December 2019
AT A GLANCE
REVENUE at R7,4 billion DOWN 4,4%
CORE EPS at 130,2 cents DOWN 24,5%
CASH GENERATED of R595 million
NET TANGIBLE ASSET VALUE at 917,3 cps UP 9,8%
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
Six Six 12 months
months months ended
ended ended 30 Jun
31 Dec 31 Dec 2019
% 2019 2018 Audited
change R’000 R’000 R'000
Revenue -4,4 7 381 484 7 721 683 15 922 641
EBITDA* -7,6 424 669 459 845 859 784
Operating profit
before interest -26,1 273 831 370 787 669 773
Profit before tax -41,6 178 987 306 679 536 724
Profit for the period -43,9 121 927 217 195 390 858
– Owners of
the Company -41,4 125 277 213 729 394 500
– Non-controlling
interests -196,7 (3 350) 3 466 (3 642)
* Earnings before interest, tax, depreciation and amortisation.
FINANCIAL REVIEW
Six Six 12 months
months months ended
ended ended 30 Jun
31 Dec 31 Dec 2019
% 2019 2018 Audited
change cents cents cents
Performance per
ordinary share
Basic EPS -35,7 94,1 146,3 275,3
Diluted EPS -35,2 92,6 143,0 268,1
Basic HEPS -35,7 94,0 146,2 297,1
Diluted HEPS -35,2 92,5 142,8 289,3
Core EPS -24,5 130,2 172,4 352,9
Diluted core EPS -23,9 128,2 168,5 343,6
Net asset value 11,8 1 717,4 1 536,0 1 658,2
Net tangible
asset value 9,8 917,3 835,7 985,0
EPS: Earnings per ordinary share.
HEPS: Headline earnings per ordinary share.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at
As at As at 30 Jun
31 Dec 31 Dec 2019
2019 2018 Audited
R’000 R’000 R'000
Total assets 6 831 903 6 287 987 6 494 468
Total liabilities 4 467 093 3 973 507 4 159 441
Total net asset value 2 364 810 2 314 480 2 335 027
Investment in working
capital 1 227 689 1 137 643 1 380 711
COMMENTARY
OVERVIEW
The Group has produced below par results for the period, impacted
mainly by the ICT Distribution segment.
Revenue decreased by 4% in an environment where business remained
difficult. We were able to slightly improve our gross profit
margins although not sufficiently to offset the lost revenue.
Expenses have been reasonably controlled throughout the period.
It should be noted that expenses generally lag revenue and there
remains an absolute focus in each entity within the Group to
manage expenditure where possible so as to be aligned with
expected revenues.
Cash generated by operating activities in the six months to 31
December 2019 was a healthy R595 million, compared to R130
million for the comparable reporting period. This improvement was
mainly due to better working capital management.
Headline earnings per share was down 36% to 94,0 cents per share
(cps) (H1 2018: 146,2 cps).
PROSPECTS AND STRATEGIC INITIATIVES
The outlook for the year to 30 June 2020 is looking uncertain.
The first six months’ results will make it hard for the Group to
match last year’s earnings and the Board does not see any change
to the economic conditions that will create an environment of
growth. In addition, the Group nervously awaits the resolution of
the coronavirus which, if not speedily resolved, could have an
impact on Alviva’s ability to source products quickly and
efficiently. Consequently, the Board expects a reduction in
earnings for the Group compared to the previous year.
SHORT-FORM ANNOUNCEMENT
This short-form announcement is the responsibility of the
directors and is only a summary of the information contained in
the full announcement. The information in the short-form
announcement has been extracted from the unreviewed condensed
consolidated interim financial results for the six months ended
31 December 2019 (“the full announcement”) and has not been
reviewed or audited by the Company’s auditors. Any investment
decisions by investors and/or shareholders should be based on the
full announcement which is available on
https://senspdf.jse.co.za/documents/2020/JSE/ISSE/AVVE/Int20.pdf
and published on the Company’s website on
https://alvivaholdings.com/wp-content/uploads/2020/02/Alviva-
Interim-Results-31-December-2019.pdf
on 2 March 2020. Copies of the full announcement may be requested
from the Company’s registered office and the offices of the
Sponsor during office hours at no cost at the contact details
below and is also available for inspection at the registered
office of the Company and the offices of the Sponsor.
By order of the Board
A Tugendhaft P Spies Midrand
Chairperson Chief Executive Officer 2 March 2020
ALVIVA HOLDINGS LIMITED
(incorporated in the Republic of South Africa)
Registration number: 1986/000334/06
ISIN: ZAE000227484 Share code: AVV
“Alviva” or “the Company” or “the Group”
DIRECTORS:
A Tugendhaft * (Chairperson), P Spies (Chief Executive Officer),
SH Chaba *^, RD Lyon (Chief Financial Officer), PN Masemola *^,
MG Mokoka *^, P Natesan *^ (Lead Independent Director)
* Non-Executive ^ Independent
REGISTERED OFFICE:
The Summit, 269, 16th Road, Randjespark, Midrand, 1685
PREPARER OF RESULTS:
RD Lyon CA
COMPANY SECRETARY:
SL Grobler CA(SA)
TRANSFER SECRETARIES:
Computershare Investor Services (Pty) Ltd, Rosebank Towers, 15
Biermann Avenue, Rosebank, 2196
AUDITORS:
SizweNtsalubaGobodo Grant Thornton Incorporated, Registered
Auditors, Summit Place Office Park, Building 4, 221 Garstfontein
Road, Menlyn, 0081
SPONSOR:
Deloitte & Touche Sponsor Services (Pty) Ltd, Building 8,
Deloitte Place, The Woodlands, 20 Woodlands Drive, Woodmead, 2196
www.alvivaholdings.com
Date: 02-03-2020 05:25:00
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