| Thu 3 May 2007, 9:50 | | SKJ - Sekunjalo - Sekunjalo Posts First Interim Pr |
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SKJ
SKJ
SKJ - Sekunjalo - Sekunjalo Posts First Interim Profit in Five Years
Sekunjalo Investments Limited
(Incorporated in the Republic of South Africa)
(Registration number 1996/006093/06)
Share code: SKJ & ISIN: ZAE000017893
("Sekunjalo" or "the company")
Press Release
Date 3 May 2007
Sekunjalo Posts First Interim Profit in Five Years
Sekunjalo Investments Limited (Sekunjalo) today reported its interim financial
results, for the period ended 28 February 2007, posting a profit at this stage
of the financial year, for the first time in five years.
Sekunjalo is invested in two primary sectors, namely, Manufacturing and Resource
Driven and Technology and Innovation Driven sectors. Within the Manufacturing
and Resource Driven sectors the major investments are in Industrials (primarily
fishing) and within the Technology and Innovation Driven sectors the major
investments are in Healthcare and Pharmaceuticals, Information Technology and
Communication, Financial Services, Aquaculture, Biotechnology and Media.
Compared to the same reporting period for the six months ended 28 February 2006,
revenue was up 7,1 % to R184,4 million from R175 million, operating profit was
up to R 12,1 million from a loss of R16,7 million, while headline earnings per
share came in at 2,9 cents compared to a loss of 3,31 cents per share.
Dr Iqbal Surve, Chairman and CEO of Sekunjalo, said, "We are delighted with
these results. Due to the cyclical nature of many of our investments,
particularly in fishing and healthcare, the Group has traditionally posted a
loss at the half year stage. However, revenue and profit expectations across the
board have either been met or exceeded which is a clear indication that our
investment strategy is delivering.
Premier Fishing is benefiting from the stability in the industry due to the
allocation of long term fishing rights. Its success in the allocation process
has provided the platform for Premier Fishing to roll out its longer term
business strategies. Premier is now well placed to further strengthen its
position as a leading player in the lobster fishery sector (West Coast and South
Coast lobster) and its lobster brand is highly sought after in export markets in
the USA, China, Japan and Europe.
The investments in Healthcare and Pharmaceuticals are showing encouraging signs
of improvement following the implementation of an aggressive turnaround strategy
in the last year. The business has been restructured to focus on
pharmaceuticals, including generics and has grown its product portfolio through
establishing partnerships with large established pharmaceutical multinationals.
It has also secured major tenders in the public sector in the last year, which
has contributed to earnings.
The investments in Information Technology and Telecommunications have performed
solidly. Sekunjalo, through its major investments - Synergy, Fios and Saratoga,
has consolidated its position as a leading provider of Business Intelligence
(BI) software and business solutions in the private sector. The companies have a
number of "blue chips" as clients. Having achieved this success, Dr Surve said
the strategy, includes pursuing ICT opportunities in the public sector, where
the need for effective service delivery has become critical, and where BI and
business solutions can facilitate such delivery.
The investments in financial services continue to perform well. Dr Surve said
that a partnership with a major South African trade union in the roll out of its
newly developed financial products should contribute to increased revenue for
this investment in the year ahead.
The international investments in financial services, based in London and
Mauritius in asset management and intermediary services are strong contributors
to Group earnings. These earnings are annuity and US dollar based and is
expected to continue to contribute to Group profitability in the years ahead.
Sekunjalo`s investment in Bioclones, a leading biotechnology company that
develops, manufactures and markets biotech products for human pharmaceutical
use, has seen Bioclones launch a biotech product into the market with global
revenues of US$ 12 billion. Government investment of US$5,3 million into
Bioclones subsidiary, Ribotech, has enabled it to turn its sights to gaining
part of the market share of the biotech product, GCSF, which has annual global
revenues of about $US3 billion. Dr Surve said that Sekunjalo was very excited
about this investment which is preparing, after considerable investment in
manufacturing facilities, for supply to global markets in the future.
Based on this good half year performance, Dr Surve said that the Group was
confident of delivering good results in line with performance targets set for
2007.
Ends-
Contact numbers follow
Prepared by:
Bruce Hetherington
FD Beachhead
Mobile: 082 458 2199
Contact details:
Sekunjalo Investments Limited
Zenariah Barends
Mobile: 082 441 0433
Dr Iqbal Surve (Chairman and CEO)
Mobile: 082 491 0179
Date: 03/05/2007 09:50:01 Produced by the JSE SENS Department.
