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JOYCE CORPORATION LTD — Management Reports 2012
May 21, 2012
65167_rns_2012-05-21_92589d18-36ac-4805-b10e-62de4e71d65f.pdf
Management Reports
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Joyce Corporation Ltd - est 1886
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Information Handout May 2012
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Joyce Corp Brief Overview
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o is listed on the Australian Securities as Joyce Exchange “JYC”.
o Jo ce's business has links back to 1886. An Australian y company with a history in excess of 125 years.
o was a manufacturer of Joyce originally leading Bedding , Furniture and Foam products. Over a number of years it divested its manufacturing activities up to 2005 when it sold its Foam Manufacturing activities. The divestments occurred following a protracted endeavour to garner support for manufacturing in Australia until it was determined that this was a fruitless pursuit . o 30 years in Franchising.
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Joyce cont..
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o Joyce retains an 4 . 2 hectare industrial property on the Georges River at Moorebank NSW, currently dealt with as an i nves men t t P roper y t i n our b oo k s as a resu lt o f the Joyce Foam manufacturing divestment. o Joyce Corporation Ltd owns 100% of Bedshed Franchising Pty Ltd . o Jo ce's current strate is to create shareholder wealth y gy by expanding its Bedshed brand and looking for growth acquisition and development opportunities leveraging the conservative debt levels.
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Solid Position – Gearing Ratio
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• After sale of the QLD Brendale Industrial Property in Sept 2010, gearing has remained at conservative levels of 23.4% after conversion of all convertible notes.
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$2.9m secured cash deposit is included in debt until March 2013
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• Net Asset backing of 81 cents per share
| st Adjusted effect on 31 December 2011 Balance sheet adjusted for full conversion of convertible notes. |
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| 31st Dec 2011 | Adjusted for Con Notes | |||
| $000‘s | $'000's | |||
| Current Assets | 8,814 | |||
| Current Liabilities | 6,449 | |||
| Debt net of secured deposit | 5,306 | 5,306 | ||
| Net Assets | 21,471 | 22,355 | ||
| Net assetsper share undiluted(cents) | 81.0 | |||
| Resultingadjusted Gearingratio | 23.4% | |||
| Current Ratio | 1.37 |
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Property Information
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Liverpool
- 5 9 Bridges Road , MOOREBANK, NSW
Total area 4.2 hectares
Gross Lettable Area of 19,865 Sq. m.
Valuation taken up at 31 Dec 2011 $13.2 million, based on current subsidised lease conditions that cease at expiration of current lease term in Nov 2015.
Georges River
Valuation report based on Commercial Value at Market Rent $16 Million. Offers of $20 million received, based on a commercial rent prior to Global Financial “ ” Crisis . GFC .
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Joyce Corp Revenue & Trading
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Revenue within Joyce has reduced from targeted store closures in 2010/11 . Joyce is currently trading profitably year to date.
Strong Australian dollar has reduced retail furniture prices. M ar k e compe t titi on as een e g h b h i ht ene d . Product ran . g e reviews have rationalised product lines and inventor y Additional product lines of Sealy Posturpedic and Tempur have assisted . in maintaining sales volumes Consumer confidence at low levels evidenced by falling interest rates. Like for like sales trending up last Qtr, albeit year to date sales down approximately 3% including impact of Australian dollar price deflation.
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Bedshed Retail Outlets
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The Company currently owns 100% of Bedshed Franchising Pty Ltd.
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Vision Statement
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“By 2015 Bedshed will be the most successful specialist bedroom franchise in Australia.”
We antici ate that a otential 60-80 stores are ossible around p p p Australia with our proven robust model.
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Mission Statement
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“We will add value by proactively working with our franchise . and business partners To offer customers value for money products and services in convenient locations. At all times whilst we will act with integrity and transparency , developing our people to provide outstanding services.” We believe that shareholder return will be optimised with a clear focus on these core values.
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Bedshed Current Store Details
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Regional
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Mackay
Reg onai l •Townsville
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Albany
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Bunbury
•Busselton Metropolitan
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Aspley
•Bundall
•Helensvale
•Kawana
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Morayfield
QLD
WA
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1 Regional
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SA Mittagong
•
Warners Bay
Metropolitan
• Beckenham NSW 2
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Cannington Metropolitan
•Claremont •Cheltenham
•Cockburn Metropolitan VIC •Chadstone
•Joondalup •Mile End 12 •Dandenong
•Mandurah North • Hi g h po n i t
•Melville •Hoppers Crossing
•Midland Regional • •Mornington
•Morley Bendigo •Northland
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•O’Connor • Shepparton •Nunawading
• O s b orne ar P k Wodonga •Watergardens
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Rockingham
• 10
Wangara
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- Malaga
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Large Range of Big Australian Brand Bedding
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Unique Bedshed Features
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o Bedshed has a robust business model
o With lar e o en lan g p p layouts o E ki asy par ng o Convenient locations o Same day availability
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Re-structuring achieved
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o A review of Company owned stores in less than optimal locations will take place.
o Senior experienced management with focus on retail profit . growth
o Four franchisees now have multi store holdings.
- Final payment of all legal disputes settlement made in March 2012
o . Sale of a Company owned store at Cockburn WA completed
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Capital Structure
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Total Ordinary listed shares currently on issue
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Unlisted Convertible Notes as at 31[st] Dec 2011 ( $1/ par value 100% converted since)
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Net Assets (as at 31[st] Dec 2011)
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Net Assets adjusted for 100% conversion of Convertible Notes
27,588,255
885,000
$21,470,504 $22,355,556
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Net Tangible Assets (as at 31[st] Dec 2011 adjusted for CN)
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Net assets per share (as at 31[st] Dec 2011) adjusted for take up of Convertible Notes (undiluted)
$12,134,041
$0.81
- Debt to net assets (adjusted for CN)
23.4%
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Company Store Break Up
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• N um b er o f C ompany O wne d S tores (COS) : 9 • Inventor currentl held at these stores: y y
$3.9M
- Intangibles associated with Company Stores:
$4M
Bedshed has received interest in some of these COS and will look at the validity of Franchising versus maintaining the company as we review this decisions will be made on a operations, regularly, store by store basis . The company sold its WA Cockburn store and the franchisee has managed to lift its performance considerably since that time.
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Dividend Policy
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“ To pay at least 50% of its earnings in Dividends each year, cash flow permitting.”
• JYC has a solid track record of paying Dividends. Dividend o f 1.5 cents payable July 2012 • Joyce Corporation declared Board Policy :
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ORDINARY FULLY PAID SHARES As of 16 May 2012
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as at 30/4/12
Top 20 shareholders
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JOYCE CORPORATION LTD
Top Holders Snapshot - Ungrouped
Composition : ORD
| 1. ADAMIC PTY LTD 7,711,568 27.95 Rank Name Address Units % of Units 25R KEANE STREET, PEPPERMINT |
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| GROVE WA 6011 2. UFBA PTY LTD 2,759,000 10.00 3. PEDUNCLE PTY LTD 1,948,312 7.06 4. WALLBAY PTY LTD 998,356 3.62 5. TRAFALGAR PLACE NOMINEES PTY LTD 990,233 3.59 6 MR DONALD TEO 990 000 3 59 PO BOX 990N, NORTH CAIRNS QLD, 25R KEANE STREET, PEPPERMINT 10 KINANE STREET, BRIGHTON VIC, C/- MR GEOFF SWANSON, 24 MARY PO BOX Y3046, EAST ST GEORGES , . , . |
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| 7. MR KEITH KNOWLES 933,648 3.38 8. PARKS AUSTRALIA PTY LTD 782,965 2.84 9. MR DANIEL ALEXANDER SMETANA 563,726 2.04 10. PYNLAND PTY LIMITED 425,416 1.54 MR ANTHONY MANKARIOS + MRS CHIARA 49 O'SULLIVAN BEACH ROAD, 25R KEANE STREET, PEPPERMINT 25R KEANE ST, PEPPERMINT GROVE 189 PRINCE EDWARD STREET, 70 ROY TERRACE, CHRISTIES |
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| 11 376 466 1 36 . MANKARIOS , . 12. MR RICHARD HAMILTON BARTLETT 355,400 1.29 13. CONARD HOLDINGS PTY LTD 347,940 1.26 14. ASB NOMINEES LIMITED <130368 - ML A/C> 326,256 1.18 15. MRS EDNA KNOWLES 278,800 1.01 PO BOX 35, AUCKLAND 1015, NEW PO BOX 226, CHRISTIES BEACH SA, MALABAR NSW, 2036 1 CROKE LANE, FREMANTLE WA, PO BOX 60, WEST PERTH WA, 6872 |
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| 16 P B L INVESTMENTS PTY LTD 270 203 0 98 11/58 CLARENDON STREET EAST . , . 17. MR KEITH KNOWLES 259,380 0.94 18. MR JOHN MARTIN WRIGHT 229,463 0.83 19. BELLPAM PTY LIMITED PENSION FUND A/C> |
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| 20,950,682 75.94 6,637,573 24.06 Totals: Top 20 holders of ORDINARY FULLY PAID SHARES Total Remaining Holders Balance |
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For Further Information
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Cha rmani Execut ve i Director Mr Dan Smetana Mr Anthony Mankarios
Company Secretary Mr Keith Gray
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Phone: + 61 8 9445 1055 Fax: +61 8 9445 1011 14 Collingwood St Osborne Park WA 6017
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Disclaimer
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Information contained in this presentation may involve forward looking statements. Possible future performance estimates, estimated earnings, potential growth of the company or its industry or other projections. Actual results differ from those or these forward may expressed implied by looking statements. These statements refer to the future and therefore involve unknown risks and uncertainties . These figures may vary based on full year audit results.
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