| Wed 28 Mar 2007, 16:30 | | SBL - SABLE HOLDINGS LIMITED - The unaudited group |
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SBL
SBL
SBL - SABLE HOLDINGS LIMITED - The unaudited group results for the half-
year ended 31 December 2006
SABLE HOLDINGS LIMITED
(`SABLE`)
(Registration No. 1968/010636/06)
Share code: SBL ISIN: ZAE000006383
(Incorporated in the Republic of South Africa)
INTERIM REPORT
The unaudited group results for the half-year ended 31 December 2006 are as
follows:
Abridged consolidated income statement
Six months Six months Year
ended ended ended
31 Dec 2006 31 Dec 2005 30 Jun 2006
(Unaudited) (Unaudited) (Audited)
R`000 R`000 R`000
Revenue 25,066 15,002 25,436
Operating profit 12,444 5,262 16,828
Net interest paid (5,619) (2,107) (5,465)
Depreciation (325) (182) (650)
Dividends received 2,511 774 1,487
Profit on disposal of investment
properties - - 5,283
Revaluation of company held for resale - - 400
Revaluation of investment properties 10,531 - 20,373
Profit before taxation 19,542 3,747 38,256
Taxation (2,419) (662)
(4,002)
Profit after taxation 17,123 3,085 34,254
Profit from associates 23,497 3,411 13,883
Net profit for the period 40,620 6,496 48,137
Number of ordinary shares in
issue during the period excluding
treasury shares (`000) 7,378 7,506 7,506
Earnings per ordinary share (cents) 550.6 86.5 641.3
Headline earnings per ordinary share
(cents) 153.0 88.0 281.6
Dividend per ordinary share (cents) - - 50.0
Reconciliation - headline earnings and earnings
Net profit for the period 40,620 6,496 48,137
Adjustments:
Straight-line rental income accrual
- subsidiaries (393) 106 (243)
- associates - - (69)
Profit on disposal of investment properties - - (4,383)
Revaluation of investment properties and
company held for resale
- subsidiaries (9,004) - (17,734)
- associates (19,937) - (4,567)
Headline earnings for the period 11,286 6,602 21,141
Abridged consolidated balance sheet
Six months to Six months to Year to
31 Dec 2006 31 Dec 2005 30 June 2006
(Unaudited) (Unaudited) (Audited)
R`000 R`000 R`000
Assets
Non-current assets 363,694 213,984 286,096
Properties, vehicles and
equipment 253,943 138,999 199,083
Investments - treasury 16,851 32,784 39,485
Investments - associates 90,685 40,126 45,313
Company held for resale 750 350 750
Deferred taxation asset 1,088 248 1,088
Goodwill - 1,100 -
Loans receivable 377 377 377
Current assets 23,352 22,230 28,524
Inventories 6,306 10,310 13,223
Trade and other receivables 8,811 8,086 7,072
Cash and cash equivalents 8,235 3,834 8,229
Total assets 387,046 236,214 314,620
Equity and liabilities
Capital and reserves 222,698 146,068 187,709
Share capital and premium 16,430 18,397 18,397
Non-distributable reserves 71,640 37,743 48,144
Revaluation reserves 47,116 27,381 51,181
Retained profits 87,512 62,547 69,987
Non-current liabilities 130,322 69,488 101,473
Interest-bearing borrowings 123,735 67,893 96,484
Deferred taxation liability 6,587 1,595 4,989
Current liabilities 34,026 20,658 25,438
Trade and other payables 4,850 6,089 7,020
Interest-bearing borrowings 22,798 10,043 12,144
Current portion of interest-
bearing borrowings 5,541 3,539 5,274
Taxation payable 778 947 961
Shareholders for dividends 59 40 39
Total equity and liabilities 387,046 236,214 314,620
Number of ordinary shares in
issue (`000) 8,420 8,420 8,420
Less: Treasury shares (`000) (1,042) (914) (914)
7,378 7,506 7,506
Net asset value per ordinary
share (cents) 3,018 1,946 2,501
Interest-bearing liabilities to
equity (%) 68.3 55.8 60.7
Abridged consolidated cash flow statement
Six months Six months Year
ended ended ended
31 Dec 2006 31 Dec 2005 30 Jun 2006
(Unaudited) (Unaudited) (Audited)
R`000 R`000 R`000
Cash inflow from operating
activities 6,506 (4,877) (4,397)
Cash generated by operations 11,254 3,698 8,564
Movements in working capital 3,008 (2,853) (3,821)
Net interest paid (5,619) (2,107) (5,465)
Dividends received 2,511 774 1,487
Dividend paid (3,644) (3,730) (3,731)
Taxation paid (1,004) (659) (1,431)
Cash outflow from investing activities (42,705) (44,437) (72,949)
Cash inflow from financing activities 25,551 35,254 65,580
Net decrease in cash and cash
equivalents (10,648) (14,060) (11,766)
Cash and cash equivalents at the
beginning of the period (3,915) 7,851 7,851
Cash and cash equivalents at the
end of the period (14,563) (6,209) (3,915)
Abridged statement of changes in equity
Six months Six months Year
ended ended ended
31 Dec 2006 31 Dec 2005 30 Jun 2006
(Unaudited) (Unaudited) (Audited)
R`000 R`000 R`000
Balance at beginning of the period 187,709 143,325 143,325
Net profit for the period 40,620 6,496 48,137
Repurchase of shares by subsidiary (1,967) - -
Dividends paid (3,664) (3,753) (3,753)
Balance at end of the period 222,698 146,068 187,709
Comments
Basis of preparation and accounting policies
The unaudited group interim results for the six months ended 31 December
2006, have been prepared in accordance with IAS 34, Interim Financial
Reporting, and are covered by International Financial Reporting Standards.
The results incorporate policies which are consistent with those applied in
the previous period.
Financial results
The group reported a net profit of R40.6 million (December 2005 - R6.5
million) for the period ended 31 December 2006. Earnings per share
increased by 537% from 86.5 cents to 550.6 cents, with headline earnings
per share increasing by 74% from 88.0 cents to 153.0 cents.
Operating profits are represented as follows:
Dec 2006 Dec 2005 June 2006
R`000 R`000 R`000
Net rentals and property trading 11,253 3,820 8,748
Treasury investments 1,191 1,442 8,080
12,444 5,262 16,828
Rental revenue has increased substantially to R14.0 million (December 2005
- R6.4 million) and is reflective of the investment of R91.4 million in
investment property during the last 12 months R11.1 million, being the
balance of revenue, pertains to the sale of sectional title industrial
warehousing. The net asset value per share has increased by 55% to R30.18
(Dec 2005 - R19.46) and the ratio of interest-bearing liabilities to equity
increased from 55.8% to 68.3% during the same period.
Treasury investments
Sable has concluded the disposal of its overseas treasury investment in The
PSG Global Hedge Portfolio. Cash resources of R28.4 million from the
disposal were received in December 2006 and the balance of R5.2 million was
received in January 2007. These funds have been largely deployed in both
property investment and property trading opportunities. The domestic share
portfolio managed by BOE Securities (Pty) Ltd added profits of R1.2 million
through a strong continuation of share performances on the Johannesburg
Stock Exchange Limited.
Property acquisitions and developments
During the first half of the year, Sable has acquired a 12,614mSquared
retail shopping centre in Bryanston, Sandton, costing R55.8 million. In
addition, a 6,784mSquared retail shopping centre in Ferndale, Randburg, was
developed and completed in December 2006 at a cost of R48.8 million.
Sable`s interest in both properties is 50% and comprises a substantial
portion of its retail investment property diversification. Sable has
appointed an independent property valuer to assess the market valuation of
its retail, office, industrial and residential property investments. The
results of this valuation will be included in the June 2007 financial
results.
Associate investments
On 1 December 2006, R16.15 million was invested in 50% of a 34% stake in a
diversified property investment portfolio ("Rotaflex") as detailed in a
press announcement dated 30 November 2006. Other significant investments
were made in strategic industrial and commercial land holdings for the
future development of sectional title industrial and office parks.
Sable Homes added earnings of R3.4 million from residential sales during
the period. As a consequence of the substantial increase in residential
sectional title apartment prices, a revaluation surplus of R19.9 million
was taken to associate profits so as to more accurately reflect the market
prices of the 269 residential investment units which Sable Homes currently
owns and leases.
Prospects
Subsequent to December 2006, Sable, together with Enterprise Risk
Management Limited ("ERM"), has entered into an agreement to jointly
acquire the balance of Rotaflex for a remaining purchase consideration of
R62.7 million. Sable simultaneously entered into an agreement to purchase
ERM`s 50% shareholding in Rotaflex through the issue of 1,187,500 Sable
shares at R40.00 per share as well as the further issue of 392,500 Sable
shares to ERM for a cash consideration of R15.7 million. The specific
details of these transactions together with the relevant conditions
precedent were released in a further press announcement dated 16 February
2007. Sable Homes is developing large land holdings in Hazeldean, Pretoria
East, comprising retail and homeworld centres, office parks, upmarket
residential sectional title and retirement homes estates. The
16,500mSquared retail centre will be completed during September 2007 and
will be complemented by a lifestyle homeworld centre opening in June 2008.
The node is fast developing into a well-established suburb with a
diversified spread of property roll-outs being catered for. Sable has
continued to invest in industrial land so as to take advantage of the
buoyant demand from both small and large industrial users. Material
refurbishments and expansionary investments to two of Sable`s retail
shopping centres are expected to go ahead during the course of 2007.
Dividends
As is customary, no dividend has been declared for the six months ended 31
December 2006.
Changes to the board of directors
As released on SENS, J Nash retired as non-executive chairman of Sable. He
is replaced by PH Nash as executive chairman and GBJ Bowes replaced PH Nash
as managing director. IR Kemp and JA Pelser continue in their capacity as
executive and non-executive directors respectively.
For and on behalf of the board
PH Nash (Chairman)
GBJ Bowes (Managing director)
28 March 2007
Directors: PH Nash (Chairman), GBJ Bowes (Managing), IR Kemp, JA Pelser*
(*non-executive)
Registered office: Sable Place, Fairway Office Park, 52 Grosvenor Road,
Bryanston 2021. PO Box 786390, Sandton 2146.
Transfer secretaries: Computershare Investor Services 2004 (Pty) Limited,
70 Marshall Street, Johannesburg 2001. PO Box 61051, Marshalltown 2107.
Sponsor: Sasfin Capital - a division of Sasfin Bank Limited.
Date: 28/03/2007 16:30:29 Produced by the JSE SENS Department.
