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Amalgamated Appliance Holdings Limited - Unaudited interim results for the six months ended 31 august 2003.

Article Excerpt
Johannesburg, October 22 /PRNewswire/ -- - Financial highlights

85% in profit after tax

76% Headline earnings per share

19% revenue increase

R106 m net cash on hand

- Comments

Growth

Shareholders were advised in the February 2003 annual report that "better days lie ahead" and management's optimism was well founded, with the Group maintaining the excellent growth rate achieved in 2002 during the six-month period under review. Despite the Rand's strength permitting substantial price reductions, revenue continued to rise in all areas except export sales, where the stronger Rand inhibits profitable sales to international customers.

Financial performance

Escalating demand for DVD, Home Theatre and TVs and the successful launch of the Russell Hobbs and George Foreman ranges saw revenues rise by R102 million in the first six-months to R633 million (2002: R531 million). With tight control from operating costs, profit after tax increasing by 85% to R18,8 million (2002: R10,2 million). Headline earnings per share increased by 76% to 9,0 cents (2002: 5,1 cents) compared with the same period last year. Efficient working capital control saw inventories at the previous year's level in spite of the revenue growth, leaving the Group in a net ungeared position at the end of the reporting period, with net cash on hand of R106 million (2002: R46 million), and interest cover rising from 4,8 to 8,3 times.

Operations

The introduction of updated automatic insertion and surface mount device equipment at the end of last year allowed the television factory to cater for the increased demand in this category. The close links established with key international suppliers ensured that the product line-up in both the electronics and appliance sectors remained aligned with world standards and developments,...