| Thu 24 May 2007, 14:58 | | NAI/NAN - NAIL - Unaudited Interim Results For The |
|
NAI NAN
NAI
NAI/NAN - NAIL - Unaudited Interim Results For The Six Months Ended 30 June 2006
NEW AFRICA INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1993/002467/06)
(Share codes: NAI and NAN)
(ISIN: ZAE000033338 and ZAE000033346)
(`NAIL` or `the Group`)
UNAUDITED INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 JUNE 2006
CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited
six months six months
30 June 30 June
2006 2005
Notes R`000 R`000
Revenues - 86 962
Cost of sales - (39 368)
Gross profit - 47 594
Administration expenses (1 573) (48 278)
Selling expenses - (11 940)
Other income - 8 989
Other gains/(losses) - net 1 - 1 724
Operating loss (1 573) (1 911)
Finance income 4 019 3 100
Share of profit of associates 1 086 473
Profit before taxation 3 532 1 662
Income tax expense 2 10 227 (247)
(Loss)/profit for the period (6 695) 1 909
Attributable to:
Equity holders of the company (6 695) 507
Minority interest - 1 402
(6 695) 1 909
(Loss)/earnings per share (5,3) 0,4
(cents)
Diluted (loss)/earnings per (5,3) 0,4
share (cents)
Number of shares taken into 126 760 126 760
account in calculating EPS
(000)
NOTES
1. OTHER GAINS/(LOSSES) - net
Loss on sale of Kaya SPVs - (32)
Provision for losses incurred in - (1 247)
African Bank debtors book
Write back of provision against Hertz - 3 003
- 1 724
2. INCOME TAX EXPENSE
South African normal tax 720 (247)
Secondary taxation on companies 9 507 -
10 227 (247)
HEADLINE LOSS
Unaudited Unaudited
six months six months
30 June 30 June
2006 2005
R`000 R`000
(Loss)/profit attributable to (6 695) 507
ordinary shareholders
Loss on sale of associates - 32
Provision reversed against Hertz - (3 003)
Profit on sale of fixed assets - (25)
Minority portion and tax effect - 1 201
(6 695) (1 288)
Headline loss per share (cents) (5,3) (1,0)
Segmental analysis
Segmental revenue
Car rental - 86 962
Segmental result
Car rental - 3 507
African Bank debtors book - (1 247)
Head office (1 573) (4 171)
Total Group (1 573) (1 911)
CONSOLIDATED BALANCE SHEET
Unaudited Audited
30 June 31 December
2006 2005
R`000 R`000
Assets
Non-current assets
Investments in associates 14 139 13 052
Current assets
Trade and other receivables 30 84
Income tax receivable 24 596 24 634
Cash and cash equivalents 74 538 160 839
TOTAL ASSETS 113 303 198 609
Total equity and liabilities
Share capital and premium 4 814 4 814
Reserves 85 360 168 111
Minority interest (9 363) (9 363)
Total equity 80 811 163 562
Current liabilities
Trade and other payables 11 020 10 555
Borrowings 9 172 9 174
Provisions for other liabilities and 12 300 15 318
charges
TOTAL EQUITY AND LIABILITIES 113 303 198 609
Net asset value per share (cents) 71 136
Number of shares in issue at end of 126 760 126 760
period (000)
STATEMENT OF CHANGES IN EQUITY
for the period ended 30 June 2006
Share
capital and Minority
premium Reserves interest Total
R`000 R`000 R`000 R`000
Balance at 31 4 814 185 011 (5 505) 184 320
December 2004
Loss for the year - (16 900) (3 971) (20 871)
Sale of - - 113 113
subsidiaries
Balance at 31 4 814 168 111 (9 363) 163 562
December 2005
Loss for the period - (6 695) - (6 695)
Dividends - (76 056) - (76 056)
Balance at 30 June 4 814 85 360 (9 363) 80 811
2006
CONSOLIDATED CASH FLOW
Unaudited Unaudited
six months six months
30 June 30 June
2006 2005
R`000 R`000
Cash utilised in operating activities (10 243) (18 222)
Cash utilised by operations (4 595) (19 283)
Interest received 4 019 3 100
Taxation paid (9 667) (2 039)
Cash effects of investing activities - 22 605
Proceeds on sale of financial assets - 18 500
at fair value through profit and loss
Proceeds on disposal of property, - 4 105
plant and equipment
Cash effects of financing activities
Dividend paid (76 056) -
Net (decrease)/increase in cash and (86 299) 4 383
cash equivalents
Cash and cash equivalents at 160 837 132 575
beginning of the period
Cash and cash equivalents at end of 74 538 136 958
the period
COMMENTARY
DIRECTORS` STATEMENT
Your directors take pleasure in presenting the unaudited interim results of the
Group for the six months ended 30 June 2006.
BASIS OF PRESENTATION
The Group`s interim financial statements for the six months ended 30 June 2006
have been prepared in terms of International Financial Reporting Standards
("IFRS") in compliance with IAS34: Interim Financial Reporting.
The accounting policies used in preparing the interim financial statements were
consistent with those applied in the 2005 Annual Financial Statements and are in
accordance with IFRS.
AFRICAN BANK DEBTORS BOOK
NAIL is a partner together with Metropolitan Life Limited and Nedbank Limited,
whereby they have assumed all responsibility for the management, collection and
funding of the African Bank Debtors Book, which was excluded from the sale of
the African Bank to African Bank Investments Limited.
The consortium entered into an agreement with CMS Group (Pty) Limited which
requires NAIL to contribute a sum of R12,3 million to exit its exposure to the
African Bank Debtors Book. NAIL has provided for R12,3 million in full in these
financial statements. Subsequent to the interim period all conditions were met
and the exit has been effected.
CONTINGENT ASSET
At the date of the sale of KFM to Primedia, KFM was in the process of
challenging the South African Revenue Services ("SARS") disallowance of a trade
mark write-off to the value of R15 million plus R3 million in interest and
penalties.
In the event that KFM is successful against SARS the purchase price that
Primedia paid to acquire KFM will be increased by 97% of the sums recovered and
the present value of future trade mark deductions. NAIL bears all costs in this
regard.
PRIMEDIA LIMITED ("PRIMEDIA" OFFER
NAIL announced on 17 December 2004 that it had received a firm intention to make
an offer from Primedia to acquire all the issued ordinary and `N` ordinary
shares ("NAIL share") in NAIL as one indivisible transaction. Shareholders are
referred to the announcement for the full terms of the offer.
The salient terms of the offer are:
* The offer price of R0,356 per NAIL share in cash. NAIL will have no assets
except 24,9% of Kaya FM (Pty) Limited ("Kaya"), the various loans to P4 Radio
Cape Town (Pty) Limited and P4 Radio Durban (Pty) Limited (`P4 Loans`) and
various claims and preference shares in Motsamai Media (Pty) Limited and Makana
SPV (Pty) Limited ("the SPV interest"`) which hold 24,9% of Kaya FM.
* The offer price is reduced by R0,146 per NAIL share if the SPV interests have
been sold or recovered and R0,059 per NAIL share if the P4 Loans have been sold
or repaid.
* Interest in the event NAIL has not disposed the SPV interests and the P4 Loans
will amount to 0,228 cents per month from 1 April 2005.
Conditions precedent
* NAIL`s disposal of Hertz
* Regulatory approvals, to the extent required, including but not limited to the
JSE Securities Exchange South Africa, the Securities Regulation Panel and the
Competition Authority.
Hertz was sold during the 2005 financial year. The Competition Tribunal has
approved the merger between Primedia and NAIL unconditionally. However, the
implication of the offer is that NAIL will have no assets or liabilities other
than Kaya before the offer can be operative.
The sale of the SPV interests and P4 Loans (as reported under Asset Disposal
Process) has the effect of reducing the Primedia offer to R0,151 per NAIL share
in cash plus the appropriate interest.
AME OFFER
African Media Entertainment Limited ("AME") made an offer on or about 13 July
2005 to acquire NAIL`s 24,9% shareholding in Kaya FM (Pty) Limited ("Kaya") for
R21 million. The sale by NAIL of Kaya would require shareholder approval. NAIL
received written confirmation from shareholders controlling more than 50% of
NAIL voting interests ("NAIL controlling shareholders") that they would not
support a sale of Kaya out of NAIL. This fact was communicated to AME. On 12
January 2006 AME increased their offer for Kaya to R25 million. The NAIL
controlling shareholders have reviewed the revised offer and have indicated that
their original position has not changed. This fact has been communicated to AME.
JSE SUSPENSION
NAIL was suspended from the JSE for not meeting the deadline for the release of
the 2005 Annual Financial Statements. The 2005 Annual Financial Statements were
delayed as a result of IFRS issues. These financial statements have now been
released to shareholders. However, the 2006 preliminary financial statements are
now due for release. The audit of the 2006 Annual Financial Statements is in the
process of being completed and these financials will be released shortly.
REVIEW OF RESULTS
The results are not comparable with the previous year as Hertz was sold during
the last financial year. The performance this period reflects the results of
24,9% of Kaya and Head Office activities.
DIVIDEND ANNOUNCEMENT
Notice is hereby given that a special dividend of 35 cents per share was
declared on 21 May 2007 payable to shareholders recorded in the register of the
company at the close of business on the record date below. The salient dates
pertaining to the special dividend are:
Last date to trade cum final dividend Friday, 8 June 2007
First date to trade ex dividend Monday, 11 June 2007
Record date Friday, 15 June 2007
Payment date Monday, 18 June 2007
By order of the board
G SNELGAR R KEVAN
24 May 2007
Directors: G Chadwick, R Kevan, K Setzin, G Snelgar, F Titi
Date: 24/05/2007 14:58:01 Produced by the JSE SENS Department.
