| Wed 30 May 2007, 17:10 | | February 2007 |
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SMSP - Stimulus - Audited Annual Financial Statements For The Year Ended 28
February 2007
Stimulus Investments Limited
(Incorporated in the Republic of Namibia)
(Registration number 2004/482)
("Stimulus")
NSX Share code: SMSP
ISIN: NA000A0DK7D9
STIMULUS INVESTMENTS LIMITED ("STIMULUS")
AUDITED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2007
Abridged Group Income statement
for the year ended 28 February 2007
2007 2006
N$ N$
Revenue 8 678 179 9 323 229
Operating expenditure (3 410 640) (3 480 952)
Profit from operations 5 267 539 5 842 277
Investment revenue 462 354 4 200
Fair value adjustments 4 110 505 -
Net finance costs (5 874 834) (1 995 296)
Profit before tax 3 965 564 3 851 181
Taxation - 34 405
Net profit for the year 3 965 564 3 885 586
Attributable to:
Equity holders of the parent 2 749 415 3 885 586
Minority interest 1 216 149 -
Abridged Group Balance sheet
at 28 February 2007
2007 2006
N$ N$
Assets
Non-current assets
Other financial assets 43 306 564 15 650 000
Current assets 90 966 585 114 253 272
Loans to related parties 301 51
Prepayments 515 333 -
Cash and cash equivalents
90 450 951 114 253 221
Total assets 134 273 149 129 903 272
Equity and liabilities
Capital
Share capital 1 000 1 000
Retained earnings 8 629 740 5 880 325
Minority Interest 1 216 641 -
9 847 381 5 881 325
Non-current liabilities
Redeemable preference share 123 680 000 123 680 000
Loan from related parties 650 000 -
Current liabilities 95 768 341 947
Loan from related parties 38 098 -
Trade and other payables 55 388 339 665
Taxation - -
Shareholders for dividend 2 282 2 282
Total equity and liabilities 134 273 149 129 903 272
Abridged Group Cash flow statement
for the year ended 28 February 2007
2007 2006
N$ N$
Cash (absorbed) by operations (4 210 250) (2 630 328)
Interest received 462 354 4 200
Interest paid (5 874 834) (1 995 296)
Dividends received 8 678 179 9 323 229
Dividends paid - 2 282
Tax paid - (108 293)
Net cash inflow from
operating activities (944 551) 4 595 794
Cash flows from
investing activities (23 545 567) (15 650 000)
Acquisition of
unlisted investments (23 546 059) (15 650 000)
Other non-cash items 492 -
Cash flows from
financing activities 687 848 -
Related part loans raised 687 848 -
Cash flow resulting from
ordinary share issue - -
Proceeds from issue
of preference shares - -
Net (decrease)/increase in
cash and cash equivalents 23 802 270) (11 054 206)
Cash and cash equivalents
at beginning of year 114 253 221 125 307 427
Cash and cash equivalents
at end of year 90 450 951 114 253 221
Independent Auditors: Swart Grant Angula
CHANGE IN AUDITORS
During the course of last year, KPMG was restructured, resulting in two new
partnerships, KPMG and Swart Grant Angula. We opted for the Swart Grant Angula
partnership for purposes of continuity.
RESULTS
During the period under review, Stimulus benefited from an increased positive
awareness and acceptance in the private equity market. This is evidenced by the
four transactions concluded during the year under review totalling N$33.2
million, compared to two investments in 2006 totalling N$15.65 million. The net
profit after tax for the year was N$3 965 564 (previous comparative period:
N$3 885 586). While there was less interest earned on investments due to cash
outflows for investment purposes, dividends have been received from some of the
investee companies and this is reflected in the above figure.
The Stimulus portfolio is well-balanced and comprises leaders within their
respective industries. The portfolio is performing well, and given the
investments made to date, represents a well diversified and balanced private
equity portfolio.
PROSPECTS
At year end, Stimulus was still significantly under-invested, having only
invested approximately N$49 million. This can be largely ascribed to a lack of
attractive Namibian investment opportunities within the ambit of the Stimulus
investment mandate. We do however remain clear in our objective of only
investing in companies that present attractive returns relative to the
investment risks under question, and should we remain substantially under-
invested by 31 December 2007, we will consider mechanisms whereby excess cash
may be returned to investors.
DIVIDEND DECLARATION
The Directors have resolved that the profit after tax, before fair value
adjustment and net finance cost, of N$5,729,893 be declared as a final dividend
to the preference shareholders, which translates into a dividend of 463 cents
per preference share.
The salient details are:
Last day to Register : 22 June 2007
Payment Date : 06 July 2007
CHANGE IN SHAREHOLDING OF STIMULUS
Due to the resignation of Hosea Angula as a shareholder, Stimulus used the
opportunity to re-constitute its shareholding to reflect increased broad-based
credentials. We have thus taken on the following broad-based shareholders:
Vita Thom Scholarship Fund ("VTSF")
The VTSF is a non-profit organisation established with the purpose of, inter
alia, providing scholarships to children of the Kunene region and operating an
educational institution to children in care.
Mukwamhalanga Tukondjeni Community Trust ("MTCT")
MTCT is a registered, non-profit, non-governmental charitable organisation which
was founded with the main aim of working towards the empowerment of all
marginalised groups. Its objectives, inter alia, are to facilitate, design,
promote and support the empowerment of disadvantaged segments of Namibian
society through increased social, economic and educational opportunities with a
view to enable them to attain a better quality of life.
We are also delighted to announce the addition of the following strategic
shareholders:
Wilhelm Shali
With various interests particularly in the North of Namibia, Wilhelm is one of
Namibia`s biggest drilling contractors and brings to Stimulus the kind of
entrepreneurial flair we are constantly looking for.
Sisa Namandje
Sisa Namandje, the Managing Partner of the law firm, Namandje & Co., has been a
shareholder in Stimulus since 2005. Sisa`s expertise has been very valuable to
Stimulus and his purchase of additional shareholding in Stimulus is testament to
this.
ACKNOWLEDGEMENTS
The re-constitution of Stimulus was preceded by the resignation of Hosea Angula
as a Director and Shareholder. We would like to thank Hosea Angula for the
contribution he has made in the formative years of Stimulus. We would further
like to thank all the Shareholders and Investors for their continued support in
the development of private equity in the Namibian market. It is noted that
building a track record in private equity is difficult and we are grateful to
the Management of Stimulus Private Equity for their dedication. A final word of
thanks to the independent, non-executive Board Members for their valuable
contributions over the last year.
Peter Koep
Independent, Non-Executive Chairman
Windhoek
31 May 2007
Sponsor
IJG Securities (Pty) Ltd
Member of the NSX
Date: 30/05/2007 17:10:00 Produced by the JSE SENS Department.
