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AH-VEST LIMITED - Unaudited Condensed Group Interim Financial Results for the Six Months Ended 31 December 2019

Release Date: 30/03/2020 08:10
Code(s): AHL     PDF:  
Wrap Text
Unaudited Condensed Group Interim Financial Results for the Six Months Ended 31 December 2019

AH-VEST LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1989/000100/06)
(“AH-Vest” or “the Company”)
Share code: AHL      ISIN code: ZAE000129177


SHORT-FORM ANNOUNCEMENT:
UNAUDITED CONDENSED GROUP INTERIM FINANCIAL RESULTS FOR THE SIX MONTHS ENDED
31 DECEMBER 2019



Salient Features
Net revenue has increased to R93.1 million for the half year ended 31 December 2019
(HY2020), compared to R92.2 million for the half year ended 31 December 2018
(HY2019), a marginal increase of 1%. Sales for this period were flat as the business
experienced some challenges with electricity supply and other operational/supply
chain disruptions.

Operating expenses have decreased by 6% from R31.6 million to R29.8 million from the
prior period. The improvement in operating expenses is largely attributed to improved
operational efficiency.

Profit before taxation increased by 16.5% from R4.3 million to R5 million from the prior
period. This was due to the improvement in sales of higher margin products as well as
cost containment.

Profit after taxation increased by 16.5% from R3.1 million to R3.6 million from the prior
period.

Extracted from the unaudited group interim financial results for the six months ended
31 December 2019.

                                                          Unaudited            Unaudited
                                                           6 Months             6 Months
                                                        31 Dec 2019          31 Dec 2018
                                                                  R                    R
 Revenue                                                 93,124,573           92,184,215
 Operating Profit                                         6,762,553            5,603,182
 Earnings per share                                            3.51                 3.01
 Headline earnings per share                                   3.51                 3.09

Going Concern
The interim financial statements have been based on accounting policies applicable
to a going concern. This basis presumes that funds will be available to finance future
operations and that the realisation of assets and settlement of liabilities, contingent
obligations and commitments will occur in the ordinary course of business.

Whilst we are aware that the COVID-19 situation is evolving, we have a robust business
model and are confident that the business will be able to withstand this disruption
having, in anticipation, already taken proactive measures to minimise costs and
maximise production into the period of the lockdown as our customers remain open for
business in this difficult period. We are in touch with our suppliers to make sure that we
keep costs under control to avoid any disruptive price increases along the supply chain.

The focus is on the management of our cash resources and maintaining liquidity in the
business. Management is continuously reviewing the order well and ensuring that orders
are satisfied as much as possible. Management continues to assess the impact of
COVID-19 on the business and adapting its activities accordingly while adhering to the
latest guidelines issued by the government.

Subsequent Events
On the 15th of March 2020, the President of the Republic of South Africa declared the
COVID-19 outbreak a national disaster. Further to this, the President then announced a
mandatory lock down for 21 days except for essential services from midnight on the 26
March 2020 to the 16th April 2020. Food manufacturing has been classified as an
essential service exempted from the lockdown, and the business is continuing with its
manufacturing activities.

The business has activated its disaster management procedures and has implemented
enhanced food, employee and visitor safety protocols in order to operate under the
threat of the COVID-19 conditions. Management has endeavoured to ensure that the
supply chain into the business remains operational to sustain production throughout the
lockdown period and is in constant communication with suppliers to ensure
uninterrupted supply.

As a key player in the food chain of South Africa’s food and FMCG market, the business
is focused on ensuring continued availability of our products with minimal disruption to
our operations. Management applauds the pro-active and swift decision taken by the
South African government to enforce a 21-day nationwide lockdown and the relevant
legislation and regulations that have been promulgated to support the enforcement.

Changes to the Board
Following Mr Ismail Darsot’s decision to retire as Chief Executive Officer with effect from
24 January 2020, Mr Muhammed Naasif Darsot, an executive director of the Company
since 2012 and the Sales and Marketing Director of the Darsot Group was appointed as
CEO with effect from 24 January 2020.

Mr Ismail Darsot continues to hold the position of Executive Chairman.

Short-Form Announcement
The short-form announcement is the responsibility of the board of directors of AH-Vest
and is only an extract of the information contained in the Unaudited Condensed Group
Interim Financial Results for the Six Months Ended 31 December 2019. This
announcement does not contain full or complete details of the financial results. Any
investment decisions by investors and/or shareholders should be based on
consideration of the full announcement which stakeholders are encouraged to review.
The full announcement is available on the Company’s website (www.alljoy.co.za) and
on the JSE Website:
https://senspdf.jse.co.za/documents/2020/JSE/ISSE/AHL/AHLHY20.pdf

Copies of the full announcement may be requested from the Company
(ChrisS@alljoy.co.za) or inspected at the registered office and/or the Designated
Advisors’ office, at no charge, during office hours.

Johannesburg
30 March 2020
Executive Directors: IE Darsot (Chairman); MNI Darsot (CEO); BI Darsot; SI Darsot;
R Darsot; MT Pather; C Sambaza
Non-Executive Directors: H Takolia*; MS Appelgryn*; J Du Plooy* U Speirs*
(*independent)
Registered address: 15 Misgund Road, Eikenhof, Johannesburg
Designated Advisor: Arbor Capital Sponsors
Transfer Secretaries: Computershare Investor Services (Pty) Ltd
Company Secretary: Light Consulting (Pty) Ltd t/a Arbor Capital Company Secretarial


Designated Advisor
Arbor Capital Sponsors

Date: 30-03-2020 08:10:00
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