Vtech 2009 Annual Report Download - page 9

VTech Holdings Ltd Annual Report 2009 7
Basic earnings per share for the year ended 31st March 2009 were US58.5
cents as compared to US89.4 cents in the previous financial year. During
the year, the Group declared and paid an interim dividend of US12.0 cents
per share, which aggregated to US$29.5 million. The directors have
proposed a final dividend of US41.0 cents per share, which will aggregate
to US$100.8 million.
LIQUIDITY AND FINANCIAL RESOURCES
Shareholders’ funds as at 31st March 2009 were US$440.2 million, a 2.7%
decrease from the US$452.3 million reported for the financial year 2008.
The net assets per share decreased by 3.8% from US$1.86 to US$1.79.
As at 31st March 2009 and 2008 2009
US$ million
2008
US$ million
Deposits and cash 287.2 285.4
Less: Total interest bearing liabilities ––
Net cash position 287.2 285.4
Currency-linked deposits 4.9 14.7
292.1 300.1
As at 31st March 2009, the net cash plus currency-linked deposits with
principal protection had decreased to US$292.1 million, which fell 2.7%
from US$300.1 million at the previous year-end. The Group is debt-free
as at 31st March 2009.
TREASURY POLICIES
The Group’s treasury policies are designed to mitigate the impact of
fluctuations in foreign currency exchange rates arising from the Group’s
global operations and to minimise the Group’s financial risks. The Group
cautiously uses derivatives, principally forward foreign exchange contracts as
appropriate for risk management purposes only, for hedging transactions
and for managing the Group’s assets and liabilities. It is the Group’s policy
not to enter into derivative transactions for speculative purposes.
WORKING CAPITAL
As at 31st March 2009 and 2008
All figures are in US$ million unless
stated otherwise 2009 2008
Stocks 128.0 132.4
Average stocks as a percentage of
Group revenue 9.0% 8.3%
Turnover days 67 days 72 days
Trade debtors 154.0 182.2
Average trade debtors as a percentage
of Group revenue 11.6% 11.6%
Turnover days 73 days 65 days
The stock balance as at 31st March
2009 decreased by 3.3% over the
balance at 31st March 2008 to
US$128.0 million. The turnover days
decreased from 72 days to 67 days.
The trade debtor balance as at
31st March 2009 was US$154.0 million
as compared to US$182.2 million
in the previous financial year. The
turnover days increased from 65 days
to 73 days. The decrease in trade
debtor balance as at 31st March 2009
was mainly due to a decrease in
revenue in the fourth quarter when
compared with the corresponding
period of the previous financial year.
CAPITAL EXPENDITURE
For the year ended 31st March 2009,
the Group invested US$27.1 million
in the construction of buildings,
purchase of plant and machinery,
equipment, computer systems and
other tangible assets. All of these
capital expenditures were financed
from internal resources.
CAPITAL COMMITMENTS
AND CONTINGENCIES
In the financial year 2010, the Group
will incur capital expenditure of
US$21.2 million for ongoing business
operations.
All of these capital expenditures will
be financed from internal resources.
As of the financial year end date, the
directors have been advised that
certain accusations of infringements
of patents have been lodged against
the Company and its subsidiaries. In
the opinion of the legal counsels, it is
too early to evaluate the outcome of
these cases and provisions have been
made only to the extent that the
amounts can be reliably estimated.