WTK AND KAP PRESS RELEASE_2014 (1).xls

WILLIAMSON TEA KENYA LIMITED
AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2014
Website: www.williamsontea.com
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Turnover
Profit from operations before tax
Increase in fair value of biological assets
Finance costs
Share of results of associated Companies
Profit before taxation
Tax charge
Profit for the year
Attributable to:
Equity Holders of the parent
Non-controlling interest
Profit after tax attributable to members
Comprising:
Profit arising from operating activities
Profit arising from changes in fair value of biological assets
Non-controlling interest
Issued Shares of Kshs 5 each
Earnings per share (Kshs)
31.03.2014
Kshs'000
31.03.2013
Kshs'000
3,512,086
3,490,681
614,593
346,663
7,747
72,030
1,041,033
(300,312)
740,721
863,292
202,557
(11,265)
101,176
1,155,760
(300,101)
855,659
712,380
28,341
740,721
826,288
29,371
855,659
478,579
233,801
28,341
740,721
694,435
131,853
29,371
855,659
8,756,320
81.36
8,756,320
94.36
Capital and reserves
Share Capital
Revaluation reserves
Revenue reserves
Non-controlling interest
Total Equity
Non current liabilities
Deferred Taxation
Employee benefit obligations
Borrowings & Finance lease
REPRESENTED BY:
Non current assets
Property , Plant and Equipment
Intangible assets
Prepaid Operating Lease Rentals
Investments
Biological Assets
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Revenue Reserves
Share
Capital
Kshs'000
Balance at 1 April 2012
Total comprehensive income for the year
Excess depreciation transfer
Deferred tax on excess depreciation
Final Dividends declared-2012
Balance at 31 March 2013
Balance at 1 April 2013
Total comprehensive income for the year
Excess depreciation transfer
Deferred tax on excess depreciation
Final Dividends declared-2013
Balance at 31 March 2014
43,782
43,782
43,782
Revaluation
Reserves
Kshs'000
586,797
126,000
(109,929)
32,979
1,231,631
131,853
-
635,847
1,363,484
635,847
53,700
1,363,484
233,801
(69,465)
20,841
43,782
Biological Assets
gains/(losses)
Kshs'000
640,923
1,597,285
Non-controlling
Interest
Kshs'000
Other
Kshs'000
Total
Kshs'000
2,917,290
694,435
109,929
(32,979)
(65,672)
165,556
29,371
3,623,003
4,148,921
826,288
109,929
(32,979)
(65,672)
4,986,487
3,623,003
478,579
69,465
(20,841)
(65,672)
4,986,487
712,380
69,465
(20,841)
(65,672)
192,141
28,341
4,084,534
5,681,819
214,003
-2786
192,141
(6,479)
Total
Kshs'000
4,945,056
981,659
(68,458)
5,858,257
Current assets
Inventories
Trade and other receivables
Associated companies
Taxation
Short Term deposits
Bank & Cash
Current liabilities
Trade and other payables
Associated companies
Taxation
Borrowings & finance leases
5,858,257
794,421
(72,151)
The Group realised a profit of Shs 478 million from its operating activities, down from shs 694 million reported last year. The performance is attributable to the weak markets and declining tea prices experienced during the year.
The weather conditions were favourable during the year and our factories continued to receive support from the smallholders throughout the year thus boosting our crop levels.
The Group made significant investments in Changoi solar park which was commissioned on 21st May 2014 to secure a cost effective power supply to the Changoi factory. The project is the largest of its kind in East Africa
and has been recognised by the national and county governments as being a pioneering step in sustainable and renewable energy.
Fair value gain on biological assets is not equivalent to cash realised from operations and therefore not distributable to the shareholders.
The new financial year has started off with weak markets and low tea prices while costs for inputs and labour continue to rise. Our investments in the solar project were targeted towards controlling our costs
and remaining competitive in the market in the midst of these challenging times. We do hope that the tea market forces will become favourable and tea prices improve in the coming months.
NOTICE OF MEETING
NOTICE IS HEREBY GIVEN that the Sixty Forth third ANNUAL GENERAL MEETING of the Shareholders will be held at the Nairobi Club, Ngong Road,
on Thursday 3 July 2014 at 10.00 a.m for the following purpose:
1)
To receive and adopt the report of the directors together with the audited financial statements for the year ended 31 March 2014.
2) To declare dividend.
3) To elect directors:
i)In accordance with Article 108 of the company’s Articles of Association, Mr. Anthony S Marsh, retires by rotation and has decided not to seek re-election.
ii)In accordance with Article 108 of the company’s Articles of Association, Mr. James P Brooks, retires by rotation and offers himself for re-election.
4) To approve the remuneration of the Directors.
5)
To authorise the directors to reappoint /appoint Auditors and agree their remuneration.
6) Any other such business of which notice has duly been served.
G K MASAKI
COMPANY SECRETARY
THURSDAY, JUNE 05, 2014
43,782
640,923
5,681,819
6,366,524
214,003
6,580,527
43,782
635,847
4,986,487
5,666,116
192,141
5,858,257
1,257,203
198,826
180,291
1,636,320
8,216,847
1,245,530
181,428
1,426,958
7,285,215
1,794,297
1,893
76,710
927,598
3,019,259
5,819,757
1,720,640
3,746
76,794
874,305
2,663,985
5,339,470
536,237
860,011
14,743
106,616
838,137
373,908
2,729,652
615,738
873,471
90,343
6,469
798,239
300,104
2,684,364
322,353
10,209
332,562
8,216,847
686,309
4,750
41,527
6,033
738,619
7,285,215
31.03.2014
Kshs'000
31.03.2013
Kshs'000
CONSOLIDATED STATEMENT OF CASHFLOWS
Operating activities
Cash generated from operations
Interest paid
Interest received
Taxation Paid
575,488
(11,242)
63,419
(354,483)
273,182
705,301
(2,690)
77,461
(125,500)
654,572
(265,123)
(360)
4,266
(8,614)
11,607
(258,224)
(148,028)
(3,030)
5,169
(20,559)
11,607
(154,841)
(6,033)
178,458
(67,202)
(6,479)
98,744
(27,657)
(65,747)
(2,786)
(96,190)
Increase in cash and cash equivalents
Movement in cash and cash equivalents
113,702
403,541
At 1 April
Increase/(decrease)
At 31 March
694,802
694,802
694,802
694,802
Cash and Bank balances
Short term deposits
373,908
838,137
300,104
798,239
1,212,045
1,098,343
DIVIDEND
PROSPECTS
31.03.2013
Kshs'000
6,580,527
COMMENTARY ON THE RESULTS
In view of the results for this year, the Directors recommend a final dividend of KShs 7.00 per share (2012 - KShs 7.50) to be approved at the forthcoming Annual General Meeting.
The final dividend if approved will accrue to those members on the register at close of business on 30th June 2014.
The register will remain closed from 1st July to 4th July 2014 both days inclusive with the dividend being paid thereafter net of withholding tax as applicable.
31.03.2014
Kshs'000
Investing activities
Purchase of Plant and equipment
Purchase of intangible assets
Proceeds from disposal of plant and equipment
Expenditure on biological assets
Proceeds from disposal of investment property and associated company
Dividend from - Associated company
- other
Financing Activities
Asset finance loans repaid
Asset finance loans received
Dividends paid to shareholders
Dividend paid to minority interest
The above extract is based on the Financial Statements of Williamson Tea Kenya Group for the year ended 31 March 2014 as audited by Deloitte & Touche who have issued an unqualified report. The Financial Statements have been prepared in accordance with the International Financial Reporting Standards.
The Group's annual reports and press release of the annual results can be accessed at the Company's website: www.williamsontea.com
KAPCHORUA TEA COMPANY LIMITED
AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2014
Website: www.williamsontea.com
STATEMENT OF COMPREHENSIVE INCOME
STATEMENT OF FINANCIAL POSITION
31.03.2014
Kshs'000
31.03.2013
Kshs'000
1,192,483
1,353,206
31.03.2014
Kshs'000
31.03.2013
Kshs'000
19,560
150,903
1,210,202
1,380,665
19,560
168,442
1,096,010
1,284,013
330,250
96,391
426,641
318,739
86,738
405,477
1,807,306
1,689,490
396,142
21,669
47
717
888,966
1,307,541
418,509
21,693
255
717
813,964
1,255,138
194,936
263,775
10,340
17,911
134,658
621,620
193,376
314,439
4,750
181,788
128,984
823,337
107,111
14,744
121,855
284,987
90,344
13,654
388,985
1,807,306
1,689,490
31.03.2014
31.03.2013
Kshs'000
Kshs'000
Capital and reserves
Turnover
Profit from operations before tax
Increase in fair value of biological assets
Finance income
Profit before taxation
Tax charge
Profit for the year
Comprising:
Profit arising from operating activities
Profit arising from changes in fair value of biological assets
Issued Shares of Kshs 5 each
Earnings per share (Kshs)
107,970
69,811
4,298
182,079
(56,088)
161,143
81,808
12,802
255,753
(76,035)
125,991
179,718
77,123
48,868
122,452
57,266
125,991
179,718
3,912,000
32.21
3,912,000
45.94
81808
Share Capital
Revaluation reserves
Revenue Reserves
Shareholders funds
Non current Liabilities
Deferred Taxation
Employee benefit obligations
REPRESENTED BY
Non current assets
Property , Plant and Equipment
Prepaid Operating Lease Rentals
Intangible Assets
Investments
Biological Assets
STATEMENT OF CHANGES IN EQUITY
Current Assets
Revenue Reserves
Share
Capital
Kshs'000
Revaluation
Reserves
Kshs'000
Biological Assets
gains/(losses)
Kshs'000
Balance at 1 April 2012
Total comprehensive income for the year
Excess depreciation transfer
Deferred tax on excess depreciation
Dividend declared-2012
Balance at 31 March 2013
19,560
188,357
19,560
168,442
398,585
57,266
455,851
527,133
122,452
28,449
(8,535)
(29,340)
640,159
28,449
(8,535)
(29,340)
1,096,010
1,133,635
179,718
(29,340)
1,284,013
Balance at 1 April 2013
Total comprehensive income for the year
Excess depreciation transfer
Deferred tax on excess depreciation
Dividend declared-2013
Balance at 31 March 2014
19,560
168,442
455,851
48,868
504,719
640,159
77,123
25,058
(7,518)
(29,339)
705,483
1,096,010
125,991
25,058
(7,518)
(29,339)
1,210,202
1,284,013
125,991
(29,339)
1,380,665
(28,449)
8,535
(25,058)
7,518
19,560
150,903
Other
Kshs'000
Total
Kshs'000
925,718
179,718
Total
Kshs'000
COMMENTARY ON THE RESULTS
Following the issue of the profit warning on 19th March 2014, the company recorded a profit of Shs 77 million from its operating activities, which is 37% lower than realised last year.
The results whilst weak, remain a testament of our considerable effort to strive to cope with very weak markets and very significant price decline.
The weather was however favourable throughout the year and this, together with the support from our partners, the smallholders, contributed to the good crop levels achieved.
Fair value gain on biological assets is not equivalent to cash realised from operations and therefore not distributable to the shareholders.
DIVIDEND
Inventories
Trade and other receivables
Due from related companies
Tax recoverable
Short Term deposits
Bank & Cash
Current Liabilities
Trade and other payables
Due to related companies
Taxation
STATEMENT OF CASH FLOWS
Operating activities
(Deficit)/cash generated from operations
Interest paid
Interest received
Tax Paid
(28,706)
(863)
5,161
(76,142)
207,584
(290)
13,092
(37,530)
(100,550)
182,856
(47,057)
4,461
352
(4,172)
(31,741)
2,026
3
(3,706)
(46,416)
(33,418)
(29,148)
(29,387)
(29,148)
(29,387)
(176,114)
120,051
310,772
(176,114)
190,721
120,051
134,658
310,772
134,658
134,658
128,984
181,788
310,772
Investing activities
In view of the favourable results, the Directors recommend a final dividend of KShs 5.00 per share (2012 - KShs 7.50) to be approved at the forthcoming Annual General Meeting.
The final dividend if approved will accrue to those members on the register at close of business on 29th June 2014
The register will remain closed from 30th June to 3rd July 2014 both days inclusive with the dividend being paid thereafter net of withholding tax as applicable.
Purchase of plant and equipment
Proceeds from disposal of Plant and Equipment
Dividends received
Expenditure on biological assets
PROSPECTS
Financing activities
Dividends paid
The declining tea prices and increase in costs of essential inputs will continue to impact on our profitability in the coming months. We however remain hopeful that the market forces will change
and we will witness an upward trend in the tea prices.
NOTICE OF MEETING
NOTICE IS HEREBY GIVEN that the Sixty Fifth ANNUAL GENERAL MEETING of the Shareholders will be held at the Nairobi Club, Ngong Road, on Wednesday 2 July 2014 at 10.00 a.m for the following purpose:
Increase in cash and cash equivalents
Movement in cash and cash equivalents
At 1 April
(Decrease)/increase
At 31 March
Ordinary Business:
1)
2)
3)
4)
5)
6)
To receive and adopt the report of the Directors together with the audited financial statements for the year ended 31 March 2014.
To declare dividend.
To elect Directors:
i) In accordance with Article 95 of the Company’s Articles of Association, Mr. Ezekiel N K Wanjama, retires by rotation and offers himself for re-election.
ii) In accordance with Article 95 of the Company’s Articles of Association, Mr. James P Brooks, retires by rotation and offers himself for re-election.
To approve the remuneration of the Directors.
To authorise the Directors to reappoint/ appoint Auditors and agree their remuneration.
To transact such other business as may be brought before the meeting.
Cash and Bank balances
Short term deposits
G K MASAKI
COMPANY SECRETARY
THURSDAY, JUNE 05, 2014
The above extract is based on the Financial Statements of Kapchorua Tea Company Limited for the year ended 31 March 2014 as audited by Deloitte & Touche who have issued an unqualified report. The Financial Statements have been prepared in accordance with the International Financial Reporting Standards.
The Company's annual reports and press release of the annual results can be accessed at the Company's website: www.williamsontea.com

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