Reprint 1 January 1999

APPENDIX I (Rule 10.4)

PRELIMINARY FULL YEAR REPORT ANNOUNCEMENT

MICHAEL HILL INTERNATIONAL LIMITED

For Full Year Ended 30 June 1999

(referred to in this report as the "current full year")

Preliminary full year report on consolidated results (including the results for the previous corresponding full year in accordance with Listing Rule 10.4.2.

This report has been prepared in a manner which complies with generally accepted accounting practice and gives a true and fair view of the matters to which the report relates [see Note (X) attached] and is based on audited accounts. If the report is based on audited accounts, any qualification made by the auditor is to be attached.

The Listed Issuer has a formally constituted Audit Committee of the Board of Directors.

 

PLEASE REFER TO ATTACHED NOTES WHEN COMPLETING THIS FORM

CONSOLIDATED OPERATING STATEMENT

1.

OPERATING REVENUE

Current

Full Year

NZ’000

Up

%

Previous Corresponding Full Year

$NZ’000

(a)

Sales revenue

156,940

11.1%

141,254

(b)

Other revenue

187

 

235

(c)

Total operating revenue

157,127

 

141,489

2(a)

OPERATING SURPLUS (DEFICIT) BEFORE TAX

13,549

 

11,059

(b)

Unusual items for separate disclosure

   

-

(c)

OPERATING *SURPLUS (DEFICIT) BEFORE TAX

13,549

22.5%

11,059

(d)

Less tax on operating profit

(4,775)

 

(3,867)

(e)

Operating *surplus (deficit) after tax but before minority interests

8,774

 

7,192

(f)

Less minority interests

     

(g)

Equity earnings [detail in item 19 below]

     

(h)

OPERATING *SURPLUS (DEFICIT) AFTER TAX ATTRIBUTABLE TO MEMBERS OF LISTED ISSUER

8,774

22.0%

7,192

3(a)

Extraordinary Items after tax [detail in 6(a) below]

     

(b)

Less Minority Interests

     

(c)

Extraordinary items after tax attributable to Members of the Listed Issuer

     

4(a)

TOTAL OPERATING *SURPLUS (DEFICIT) AND EXTRAORDINARY ITEMS AFTER TAX [2(e) + 2(g) + 3(a) ABOVE]

8,774

 

7,192

(b)

Operating *Surplus (Deficit) and Extraordinary items after Tax attributalbe to Minority Interests [Items 2(f) + 3(b) above]

     

(c)

OPERATING SURPLUS (DEFICIT) AND EXTRAORDINARY ITEMS AFTER TAX ATTRIBUTABLE TO MEMBERS OF THE LISTED ISSUER [2(h) + 3(c) above]

8,774

22.0%

7,192

*Delete as required Page one

 

Revised April 1995

5.

DETAILS OF SPECIFIC RECEIPTS/OUTLAYS, REVENUES/EXPENSES FORFULL YEAR

CONSOLIDATED

#

Items marked in this way need be shown only where their inclusion as revenue or exclusion from expenses has had a material effect on reported *surplus (deficit)

Current

Full Year

$NZ’000

Previous

Corresponding

Full Year

$NZ’000

(a)

Interest revenue included in Item 2(a) above

86

123

(b)

# Interest revenue included in 5(a) above but not yet received

   

(c)

Interest expense included in Item 2(a)above (include all forms of interest, lease finance charges, etc.)

1,530

1,617

(d)

# Interest costs excluded from 5(c) above and capitalised in asset values

   

(e)

# Outlays (other than those arising from the acquisition of an existing business) capitalised in intangibles

   

(f)

Depreciation including all forms of amortisation and writing down of property/investment

2,903

2,783

(g)

Write-off of intangibles

169

175

(h)

Unrealised changes in value of investments

   

 

6.(a) UNUSUAL AND EXTRAORDINARY ITEMS OF THE GROUP

Items of revenue or expense which are of such size and incidence or such nature that their disclosure is necessary to explain the performance of the entity. - as required by FRS9

 

GROUP - CURRENT FULL YEAR

DETAILS AND COMMENTS

Before tax

$NZ'000

Related income tax

$NZ'000

After Tax

$NZ'000

Unusual Items

 

Total Unusual items

Extraordinary Items

 

Total extraordinary items

6.(b) COMMENTS BY DIRECTORS If no report in any section, state NIL. If insufficient space below, provide details in the form of notes to be attached to this report.

  1. Material factors affecting the revenues and expenses of the group for the current full year

    See Chairman’s statement

  2. Significant trends or events since end of current full year nil
  3. Changes in accounting policies since last Annual Report nil

 

 

 

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Reprint 1 January 1999

 

7. EARNINGS PER SHARE

CONSOLIDATED

Calculation of basic and fully diluted, EPS in accordance with IAS33: Earnings Per Share

Current

full year

Cents

Previous

corresponding

full year

Cents

(a) Basic EPS

a)

22.8

a)

18.7

(b) Diluted EPS (if materially diferent from (a)

b)

22.8

b)

18.7

8.(a) MATERIAL ACQUISITIONS OF SUBSIDIARIES [see Note (VII) attached]:

(i)

Name of subsidiary or group of subsidiaries.

 

(ii)

Contribution to consolidated operating *surplus (deficit) and extraordinary items after tax from operation of subsidiary.

 

Nil

(iii)

Date from which such contribution has been calculated

 

(iv)

Operating *surplus (deficit) and extraordinary items after tax of the subsidiary for the previous corresponding full year

Nil

 

(b) MATERIAL DISPOSALS OF SUBSIDIARIES [see Note (VII) attached]:

(i)

Name of subsidiary or group of subsidiaries.

 

(ii)

Contribution to consolidated operating *surplus (deficit) and extraordinary items after tax from operation of subsidiary.

 

Nil

(iii)

Date to which such contribution has been calculated

 

(iv)

Contribution to consolidated operating *surplus (deficit) and extraordinary items after tax for the previous corresponding full year

Nil

(v)

Contribution to consolidated operating *surplus (deficit) and extraordinary items from sale of subsidiary.

Nil

9. REPORTS FOR INDUSTRY AND GEOGRAPHICAL SEGMENTS

Information on the industry and geographical segments of the Listed Issuer is to be reported for the *half year/full year in accordance with the provisions of SSAP:23: Financial Reporting for Segments. Because of the differing nature and extent of segments among Listed Issuers, no complete proforma is provided, and the segment information should be completed separately and attached to this report. However, the following shows a suitable list of items for presentation and indicates which amounts should agree with items included elsewhere in the *half year/full year report:

SEGMENTS

*Delete as required Page three

STATEMENT OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY

[Note (VIII) attached has particular relevance for the preparation of this statement]

     

CONSOLIDATED

     

At end of current

Full Year

$NZ’000

As Shown in last

Annual Report

If half yearly as shown in last Half Yearly Report

$NZ’000

10.

CURRENT ASSETS

     
 

(a)

Cash

-

1,327

 
 

(b)

Receivables

7,585

5,987

 
 

(c)

Investments

-

   
 

(d)

Inventories

51,497

41,820

 
 

(e)

Other

     
 

(f)

TOTAL CURRENT ASSETS

59,082

49,134

 
 

NON CURRENT ASSETS

     
 

(g)

Receivables

     
 

(h)

Investments

810

820

 
 

(i)

Inventories

     
 

(j)

Property, plant and equipment

13,773

12,349

 
 

(k)

Intangibles

572

643

 
 

(l)

Expenditure carried forward

184

249

 
 

(m)

TOTAL NON-CURRENT ASSETS

15,339

14,061

 
 

(n)

TOTAL ASSETS

74,421

63,195

 

11.

CURRENT LIABILITIES

     
 

(a)

Accounts payable + provisions

12,642

11,085

 
 

(b)

Borrowings

185

181

 
 

(c)

Tax payable

1,905

1,310

 
 

(d)

Bank Overdraft

789

   
 

(e)

TOTAL CURRENT LIABILITIES

15,521

12,576

 
 

NON-CURRENT LIABILITIES

     
 

(f)

Accounts payable

     
 

(g)

Borrowings

21,049

17,169

 
 

(h)

Deferred Tax

800

1,133

 
 

(i)

Other

     
 

(j)

TOTAL NON-CURRENT LIABILITIES

21,849

18,302

 
 

(k)

TOTAL LIABILITIES

37,370

30,878

 
 

(l)

NET ASSETS

37,051

32,317

 

12.

SHAREHOLDERS’ EQUITY

     
 

(a)

Share Capital

7,712

7,712

 
 

(b)

Reserves (I) Revaluation reserve

256

266

 
 

(ii)

Other reserves

3,488

3,075

 
 

(c)

Retained profits (accumulated losses)

25,595

21,264

 
 

(d)

Convertible Notes

     
 

TOTAL CAPITAL FUNDS

37,051

32,317

 
 

(e)

Outside equity interests in subsidiaries

     
 

(f)

TOTAL SHAREHOLDERS’ EQUITY

37,051

32,317

 

*Delete as required Page four

STATEMENT OF CASH FLOWS FOR FULL YEAR

(See Note (IX) attached

     

Current Full Year

$NZ’000

Previous Corresponding Full Year $NZ’000

13.

CASHFLOWS RELATING TO OPERATING ACTIVITIES

   
 

(a)

Receipts from customers

155,613

140,890

 

(b)

Interest received

93

123

 

(c)

Rent received

94

111

 

(d)

Payment to suppliers and employees

(146,794)

(127,151)

 

(e)

Interest paid

(1,545)

(1,586)

 

(f)

Income taxes paid

(4,567)

(3,786)

 

(g)

GST

(113)

(99)

 

(h)

NET OPERATING CASH FLOWS

2,781

8,502

14.

CASHFLOWS RELATED TO INVESTING ACTIVITIES

     
 

(a)

Cash proceeds from sale of property, plant and equipment

222

238

 

(b)

Cash proceeds from sale of equity investments

   
 

(c)

Loans repaid by other entities

   
 

(d)

Cash paid for purchases of property, plant and equipment

(4,502)

(2,652)

 

(e)

Interest paid - capitalised

   
 

(f)

Cash paid for purchases of equity investments

   
 

(g)

Loans to other entities

   
 

(h)

Payment of Key Money

(30)

(82)

 

(i)

NET INVESTING CASH FLOWS

(4,310)

(2,496)

15.

CASHFLOWS RELATING TO FINANCING ACTIVITIES

     
 

(a)

Cash Proceeds from issues of shares, option, etc

   
 

(b)

Borrowings

3,455

0

 

(c)

Repayment of borrowings

-

(1,750)

 

(d)

Dividends paid

(4,059)

(3,091)

 

(e)

Convertible Note Interest Paid

   
 

(f)

NET FINANCING CASH FLOWS

(604)

(2,841)

16.

NET INCREASE (DECREASE) IN CASH HELD

(2,133)

1,165

 
 

(a)

Cash at beginning of full year

1,327

150

 

(b)

Exchange rate adjustments to item 16(a) above

17

12

 

(c)

CASH AT END OF FULL YEAR

(789)

1,327

17. NON-CASH FINANCING AND INVESTING ACTIVITIES

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Reprint 1 January 1999

18. RECONCILIATION OF CASH

For the purposes of the above statement of cash flows, cash includes

Cash at the end of the full year as shown in the statement of cash flows is reconciled to the related items in the accounts as follows:

Current

Full Year

$NZ'000

Previous Corresponding

Full Year

$NZ'000

Cash on hand and at bank

88

76

Deposits at call

1,611

2,187

Bank Overdraft

(2,488)

(936)

Other (provide details)

TOTAL = CASH AT END OF FULL YEAR [Item 16(c) above]

(789)

1,327

 

 

19. EQUITY ACCOUNTED ASSOCIATED COMPANIES AND OTHER MATERIAL INTERESTS

Information attributable to the reporting group's share of investments in associated companies and other material interests is to be disclosed by way of separate note below (refer SSAP:8 Accounting for Business Combinations).

EQUITY EARNINGS

    (i) GROUP SHARE OF RESULTS OF ASSOCIATED COMPANIES

Current

*half year/full year

$NZ'000

Previous

corresponding

*half year/full year

$NZ'000

    (a) OPERATING *surplus (deficit) BEFORE TAX

    (b) Less tax

    (c) OPERATING *surplus (deficit) AFTER TAX

    (d) (i) Extraordinary items (gross)

    (ii) Less tax

    (iii) Extraordinary items (net)

    (e) OPERATING *surplus (deficit) AND EXTRAORDINARY ITEMS AFTER TAX

    (f) Less dividends paid to group

    (g) NET *ADDITION TO (REDUCTION IN) EQUITY CARRYING VALUE OF INVESTMENTS FROM CURRENT PROFITS (ITEM 2(e) ABOVE)

 

 

 

 

 

*Delete as required Page six

 

 

(ii) MATERIAL INTERESTS IN CORPORATIONS NOT BEING SUBSIDIARIES:

(a) The Group has a material (from group's viewpoint) interest in the following corporations:

 

Name

Percentage of ordinary

shares held at end of

*half year/full year

Combinations of operating

*surplus (deficit) and extraordinary

items after tax

Equity accounted

associated companies

Current

*half year/

full year

Previous

Corresponding

*half year/

full year

Current

*half year/full year

$NZ'000

Previous

Corresponding

*half year/full year

$NZ'000

 

 

 

Equity Accounted

 

 

 

 

 

 

 

 

 

 

 

Other material interests

 

 

Not Equity Accounted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(b) INVESTMENTS IN ASSOCIATED COMPANIES

Current

*half year/full year

$NZ'000

Previous

Corresponding

*half year/full year

$NZ'000

Carrying value of investments in

associated companies (CV)

 

 

Share of associated companies' retained

profits and reserves not included in CV:

 

 

    Retained profits

    Reserves

 

Equity carrying value of investments

 

*Delete as required Page seven

 

 

20. ISSUED AND QUOTED SECURITIES AT END OF CURRENT FULL YEAR

  Number Number Par Value Paid-Up Value
Category of Securities Issued Quoted Cents Cents
PREFERENCE SHARES: NIL      
# (Description)        
Issued during current *half year/full year NIL      
ORDINARY SHARES: 38,558,600 38,558,600 .20 cents .20 cents
Issued during current full year NIL      
CONVERTIBLE NOTES NIL      
# (Description)        
Issued during current *half year/full year        
OPTIONS   Exercise Price Expiry Date  
Issued during current *half year/full year NIL      
DEBENTURES - Totals only: $ NIL $    
UNSECURED NOTES - Totals only: $ NIL $    
OTHER SECURITIES $ NIL $    
# Description includes rate of dividend or interest and any redemption or conversion rights together with the prices and dates thereof.

 

21. DIVIDEND: If a decision regarding a dividend has been made, file a completed copy of Appendix 7 with this form.

 

22. ANNUAL MEETING

(a) To be held at Ellerslie Racecourse

(b) Date Friday 19th NOVEMBER 1999 Time 2.00PM

 

If this full year report was approved by resolution of the Board of Directors, please indicate date of meeting: 19/8/99

 

_________________________________________________ 19/8/99

(signed by) Authorised Officer of Listed Issuer (date)

 

 

*Delete as required Page eight

Revised April 1995

 

 

 

9. SEGMENT RESULTS FOR THE TWELVE MONTHS ENDED 30 June 1999

 

MHJ New Zealand

 

MHJ Australia

 

Consolidation

 
                   
 

1999

$000,s

1998

$000,s

%

+-

1999

$000,s

1998

$000,s

%

+-

1999

$000,s

1998

$000,s

%

+-

Operating Revenue
Sales to Customers

56,600

50,845

+11.3%

100,340

90,409

11.0%

156,940

141,254

11.1%

                   

Total Revenue

56,600

50,845

+11.3%

100,340

90,409

 

156,940

141,254

 

Segment Results

                 

Operating

7,002

6,117

+14.5%

8,663

7,158

+21.0%

15,665

13,275

+18.0%

As % of Revenue

12.4%

12.0%

 

8.6%

7.9%

 

10.0%

9.4%

 

Unallocated Expenses

           

(6,891)

(6,083)

 
                   

Group Operating Profit

           

8,774

7,192

+22.0%

                   

Segment Assets

27,671

23,559

 

46,120

38,913

 

73,791

62,472

 

Unallocated Assets

           

630

723

 
                   

TOTAL ASSETS

           

74,421

63,195

+17.8%

The Company Operated in two geographical segments - New Zealand and Australia. Inter segment pricing is at arms length or market value.

Unallocated expenses comprise interest, taxation and unallocated corporate expenses.



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