New Clicks Holdings Limited   Reviewed Group Results  
       
HomeFinancial highlightsIncome statementSupplementary infoBalance sheetCash flow statementChanges in equityGeographical splitCommentary

 
     
  6 months to  
28 February  
2003  
(unaudited) 
R’000 
6 months to  
28 February 
2002  
(unaudited) 
R’000 

change 
Year to 
31 August 
2002 
(audited) 
R’000 
Turnover 3 436 679  2 792 414  23.1  5 487 791 
Operating profit 214 560  177 034  21.2  318 560 
Net interest paid (42 754) (28 961) 47.6  (67 220)
   Interest paid – excluding PM&A (42 754) (28 961)   (67 220)
   Interest accrued – PM&A 28 835  18 593    45 525 
   Provision – PM&A interest (28 835) (18 593)   (45 525)
Net profit after interest 171 806  148 073  16.0  251 340 
Provision for impairment of loan   (32 475)
Net profit before exceptional items 171 806  148 073  16.0  218 865 
Exceptional item – goodwill amortised (10 519) (3 786)   (11 346)
Net profit before taxation 161 287  144 287    207 519 
Taxation 48 106  41 722  15.3  61 319 
Profit attributable to ordinary shareholders 113 181  102 565  10.4  146 200 
Adjustment for goodwill amortised 10 519  3 786    11 346 
Headline earnings 123 700  106 351  16.3  157 546 
         
Headline earnings per share (cents)        
   Undiluted 38.5  35.4  8.8  52.2 
   Diluted 37.0  33.5  10.4  49.7 
Earnings per share (cents)        
   Undiluted 35.2  34.2  2.9  48.4 
   Diluted 33.9  32.3  5.0  46.1 
Distribution per share (cents) 10.9  9.9  10.1  24.0 
         

Accounting policies and restatement of comparatives
These interim financial statements have been prepared in accordance with the South African Statements of Generally Accepted Accounting Practice, and the accounting policies are consistent with the prior year, other than the changes reflected in the notes below.

1. Loan to Purchase Milton & Associates (PM&A)
For the period under review, PM&A, the pharmacy chain that the group has an association with, traded at a loss of R8,2 million before the interest charge from the group, and had a shareholders’ deficit of R140,8 million as at February 2003. The loan to PM&A from the group amounted to R283,1 million at the end of February 2003 after the impairment disclosed at August 2002 and the interest provision explained in note 2 below. PM&A are however forecasting a trading profit for the full year to August 2003 before interest. The directors are of the opinion that no further impairment of the loan is required on the basis of the value in use calculation, as they are pleased with the progress in the turnaround of the business and its future potential. It is anticipated that the imminent changes in healthcare legislation will allow New Clicks Holdings to acquire the business of PM&A and to consolidate its operations, subject to the relevant regulatory approvals.

2. Net interest
As PM&A traded at a loss for the period, the directors have decided to provide in full for the interest accrued on the loan to PM&A, and will continue to do this until such time as the interest is covered by trading profits.

The comparatives for the six months to February 2002 have been restated on the same basis, which has resulted in a reduction in headline earnings of R13 million and a reduction in undiluted headline earnings per share of 4.4 cents. In addition, for the year to August 2002, to achieve consistency, part of the impairment has been allocated as a provision against interest accrued, with the balance remaining as an impairment. The effect of this on headline earnings is included in note 3 below.

3. Accounting circular on headline earnings
In line with the new definition of headline earnings, any impairment in respect of the loan to PM&A must be taken into account in headline earnings. The comparative figures for the year to August 2002 have been restated in line with this. The effect of this change for the year to August 2002 is to reduce headline earnings by R54,6 million and to reduce undiluted headline earnings per share by 18,1 cents.
 
    Back to top