Final Results
June 27 2003 - 11:10AM
UK Regulatory
RNS Number:8939M
Dimension Resources Ld
27 June 2003
DIMENSION RESOURCES LIMITED
and its subsidiaries
Chairman's statement
31 December 2002
Dimension Resources Ltd is the parent company for a group quarrying and
processing decorative stone in the Republic of South Africa. Its products are
primarily intended to be exported worldwide but are also sold in South Africa.
Financial Results
The results for the year continue to show losses, although all indicators show
an improving position. I had expected that the Group would be profitable at an
operating level in South Africa during 2002, but this expectation was not met
due to the substantial decline in the rate of exchange between the US dollar, in
which sales are priced, and the South African Rand, which applies to most costs.
Nevertheless I am pleased to record that the trend remains an improvement in
trading which should result in a positive position in the near future.
Sales demand remains strong, and the limiting factor on growth is production
capacity rather than orders. For this reason, the Directors are seeking ways of
obtaining finance for new equipment in order to increase production levels.
The group remains virtually debt free, having a small overdraft facility and a
finance lease on a front end loader, together with a loan of #10,000 from me,
which is intended to be capitalized in due course. So far as assets are
concerned, the group has both a freehold processing plant in Vredendal and a
freehold office in Somerset West, both in South Africa, in addition to its
quarries and equipment.
Stone Quarries
Bowenite
The Group supplies bowenite blocks under an exclusive contract with Antolini
Luigi & Cie, one of the leading Italian stone companies. All blocks produced by
the Group to date have been accepted by Antolini. During 2002 the quarry has
been developed to enable blocks of a more consistent quality to be produced
despite the fractured nature of the deposit. This development is now bearing
fruit in increasing levels of production.
Coloured granites
The Group's properties in the Pofadder area of Namaqualand have deposits of a
number of coloured granites. Quarries have been established for grey/blue
("Atlantic Blue"), brown ("Cape Autumn"), red ("Cape Red") and multicoloured
("African Rainbow") granites. Production remains concentrated on Cape Autumn
and African Rainbow.
Cape Autumn is selling well in the South African market in particular, and is
now the fourth biggest selling granite in that country.
African Rainbow is still in the quarry development stage, but test blocks have
been well received both locally in South Africa and abroad. This is one
material where increased prices will offset the dollar devaluation.
Rustenburg black granite
In January 2002, the Company announced that it had agreed to acquire a
Rustenburg Black granite quarry situated near Brits, North West Province, South
Africa. Unfortunately, the mining licence has not yet been obtained by the
vendor, so this proposal remains on hold.
Marble
The Group has now secured a black marble deposit in the area of the Vredendal
processing plant. A mining licence permitting production to commence is now in
place, and the Group is sourcing the necessary equipment and finance to commence
production.
Processed stone
Vredendal plant
The processing plant comprises a freehold factory and offices of some 1,800
square metres on a site of over 18,000 square metres. The factory is fully
equipped for marble tile production, with an automated marble tile cutting line
and facilities for handling and cutting marble blocks. During the year a number
of contracts were supplied, including a hospital in Somerset West. New orders
included strips supplied by container to Italy, and the first container was
shipped late in 2002.
Sales to the local market are also growing, and imported travertine is being cut
at the factory to increase the product range. Further increases in this product
range remain a priority for 2003.
Sales Showroom and Distribution Warehouse
The Group's warehouse and showroom has been relocated from the Airport
Industrial Estate, where its position was not ideal, to Somerset West. Sales
through this outlet continue to increase with the Groups own products being
supplemented by distributorship agreements. The Group has recently commenced
selling and installing special products for bathrooms and kitchens.
Annual General Meeting
The company's annual general meeting will be held on 21 August 2003, and a
notice is included with this document.
Future prospects
The Board believes that the prospects for the Group are constantly improving and
are better than at any time since the Company's flotation. The requirement
remains to increase production to enable the Group to reach profitability, and
the Board is planning to achieve this.
Finally I would like to thank all members of staff for their efforts through a
difficult period.
Brian Moritz
(Chairman)
Dated 27 June 2003
DIMENSION RESOURCES LIMITED
and its subsidiaries
Consolidated income statement
for the year ended 31 December 2002
Note Group
2002 2001
GBP GBP
Turnover 2 234,259 184,463
Cost of sales 120,790 104,273
----------------------------
Gross profit 113,469 80,190
Administrative expenses (401,192) (507,643)
----------------------------
Operating loss 3 (287,723) (427,453)
Interest receivable and similar income 2,407 7,910
Interest payable and similar charges (8,367) (10,294)
----------------------------
Net loss before taxation (293,683) (429,837)
Taxation - -
----------------------------
Net loss for the year (293,683) (429,837)
============================
Earnings per share (pence) (0.28) (0.51)
Weighted average number of shares in issue 104,042,498 85,030,000
DIMENSION RESOURCES LIMITED
and its subsidiaries
Consolidated balance sheet
for the year ended 31 December 2002
Note Group
2002 2001
GBP GBP
ASSETS
Non-current assets 15,696,061 15,580,648
Tangible assets 5 1,360,850 1,240,213
Stone deposits 6 14,306,101 14,306,101
Pre-production costs 7 29,110 28,085
Investments 8 - 6,249
Current assets 311,424 417,262
Inventories 9 243,053 182,667
Trade and other receivables 10 53,831 48,100
Cash at bank and on hand 14,540 186,495
---------- ----------
Total assets 16,007,485 15,997,910
========== ==========
EQUITY AND LIABILITIES
Shareholders' funds 15,769,817 15,393,395
Called up share capital 11 6,706,000 6,706,000
Share premium account 11 11,577,856 11,577,857
Profit and loss account -2,514,039 -2,890,462
Long-term liabilities 15 48,597 32,446
Foreign currency translation reserve 41,597 500,739
Creditors: amounts falling due within
one year 147,473 71,329
Trade and other payables 16 125,383 70,689
Provisions 16 22,090 640
---------- ----------
Total equity and liabilities 16,007,485 15,997,909
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