| Thu 31 May 2007, 7:05 | | New Corpcapital Limited - Unaudited Interim Result |
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NCA
NCA
New Corpcapital Limited - Unaudited Interim Results For The Six Months
Ended 28 February 2007
NEW CORPCAPITAL LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2001/006539/06)
Share code: NCA ISIN: ZAE000067765
("New Corpcapital")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 28 FEBRUARY 2007
CONSOLIDATED BALANCE SHEET
Unaudited Unaudited Audited
6 months 6 months Year
28 Feb 2007 28 Feb 31 Aug
2006 2006
Rm Rm Rm
Non-current assets - 582,2 65,1
Financial product assets - 291,9 -
Investments available for sale - 28,0 -
- surrendered policies
Corpcapital Life policyholder - 262,3 65,1
investments, interest bearing
securities and deposits
Current assets 132,2 96,4 255,8
Cash and cash equivalents 36,9 68,1 59,2
Trading securities and liquid - 0,5 0,2
assets
Advances and other accounts 5,1 21,5 17,4
receivable
Financial product assets - - 45,0
Investments available for sale 0,6 - 15,3
- surrendered policies
Corpcapital Life policyholder 83,9 - 112,7
investments, interest bearing
securities and deposits
Taxation assets 5,7 6,3 6,0
Total assets 132,2 678,6 320,9
Equity and liabilities
Share capital and premium 169,2 214,8 214,8
Accumulated losses (128,4) (123,6) (130,5)
Total shareholders` equity 40,8 91,2 84,3
Total liabilities 91,4 587,4 236,6
Non-current liabilities 2,0 554,3 68,3
Corpcapital Life - 262,3 65,1
policyholders` liabilities
investment contracts
Deferred taxation 2,0 0,1 3,2
Financial product liabilities - 291,9 -
Current liabilities 89,4 33,1 168,3
Short-term debt - 18,9 -
Trading liabilities - 0,5 0,2
Accounts payable 3,9 12,3 10,9
Financial product liabilities - - 45,0
Corpcapital Life 83,9 111,8
policyholders` liabilities
-investment contracts
Taxation liabilities 1,6 1,4 0,4
Total equity and liabilities 132,2 678,6 320,9
Net asset value per share 10,7 24,0 22,2
(cents)
Issued ordinary shares (000) 379 941 379 941 379 941
CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited Audited
6 months 6 months Year
28 Feb 2007 28 Feb 2006 31 Aug 2006
Rm Rm Rm
Revenue 11,6 50,3 75,0
Profit before taxation 2,4 4,7 0,5
Taxation 0,3 - 2,7
Profit/(loss) after taxation 2,1 4,7 (2,2)
Profit/(loss) per ordinary 0,6 1,2 (0,6)
share (cents)
Weighted average number of 379 941 379 941 379 941
ordinary shares in issue
(`000)
ANALYSIS OF HEADLINE EARNINGS ADJUSTMENTS
Unaudited Unaudited Audited
6 months 6 months Year
28 Feb 2007 28 Feb 2006 31 Aug 2006
Rm Rm Rm
Attributable profits/(losses) 2,1 4,7 (2,2)
Headline earnings adjustments - (7,3) -
Profits on sale of associates - (7,3) -
Headline profit/(loss) 2,1 (2,6) (2,2)
Headline profit/(loss) per share 0,6 (0,7) (0,6)
(cents)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Unaudited Unaudited Audited
6 months 6 months Year
28 Feb 2007 28 Feb 2006 31 Aug 2006
Rm Rm Rm
Ordinary shareholder`s equity at 84,3 126,4 126,4
beginning of year
Attributable profit/(loss) 2,1 4,7 (2,2)
Distributions (45,6) (39,9) (39,9)
40,8 91,2 84,3
CONSOLIDATED CASH FLOW STATEMENT
Unaudited Unaudited Audited
6 months 6 months Year
28 Feb 2007 28 Feb 2006 31 Aug 2006
Rm Rm Rm
Operating activities 8,6 (125,1) (1,1)
Taxation paid - (0,1) (0,4)
Investing activities 14,7 52,4 56,6
Financing activities (45,6) (39,7) (176,5)
Net change in cash and cash (22,3) (112,5) (121,4)
equivalents
Opening cash and cash 59,2 180,6 180,6
equivalents
Closing cash and cash 36,9 68,1 59,2
equivalents
ACCOUNTING POLICIES
The unaudited interim results for the six months ended 28 February 2007 have
been prepared in accordance with International Financial Reporting Standards.
The accounting policies used are consistent in all respects with the accounting
policies applied in the financial statements for the year ended 31 August 2006.
These interim results have not been audited or reviewed by the company`s
auditors.
COMMENTARY
New Corpcapital Limited continues to complete the strategy, initiated by
Corpcapital Limited, of realising group assets and returning capital to
shareholders. The remaining assets include Corpcapital Life Insurance Limited, a
dormant life insurance company, and the remnants of a debtors` book. The
anticipated timing of further capital distributions to shareholders depends on
the realisation and discharge of investment products issued some years ago, the
collection of outstanding debts and the final resolution of litigation. The last
tranche of Corpcapital Life policyholder investments matures in December 2007.
Revenue for the interim period arises from interest earned on cash resources.
Included in the current liabilities and corresponding current assets reflected
in the financial statements are the investment products that mature over the
next twelve months. Overhead costs are continually monitored and the board
remains committed to cost effectively winding-up the remaining operations.
Corpcapital`s application for an order directing the Minister of Trade &
Industry to release the report into Corpcapital`s affairs was granted on 24
August 2006. The Minister has applied for leave to appeal against the High Court
judgment and these proceedings remain pending. As previously announced, the
Inspectors` report was released to the company on 28 November 2006. The
investigation is closed. The Minister seeks leave to appeal against certain
legal findings made by the court, which directed the release of the Report.
New Corpcapital distributed 12 cents per share to shareholders on 27 September
2006. This payment formed part of the total amount to be returned to
shareholders pursuant to the realisation strategy. The amount of anticipated
future distributions remains difficult to assess. The reduced scale of the group
means that relatively small variances have a marked effect. Certain claims by
SARS relating to historical group activities are in dispute and under discussion
with SARS. Legal proceedings by the group for recovery of certain historic debts
remain unresolved. The final outcome of the abovementioned legal proceedings and
possible future costs in that regard are uncertain. The outcome of these issues
cannot be predicted and therefore estimates of future distributions cannot be
precisely made. Consequently, the board maintains its range of 10 cents to 14
cents per share that shareholders can reasonably expect from future
distributions.
By order of the board
TA Wixley GB Liebmann
Chairman Executive director
31 May 2007
DIRECTORS: T A WIXLEY** (NON-EXECUTIVE CHAIRMAN)
D BROOKING** N N LAZARUS* G B LIEBMANN
(*NON-EXECUTIVE) (**INDEPENDENT NON-EXECUTIVE)
New Corpcapital Limited
1st Floor, 3 Melrose Square
Melrose Arch, Johannesburg 2196
PO Box 471917, Parklands 2121 South Africa
Telephone +27 11 684 1057
Telefax +27 11 684 1058
Date: 31/05/2007 07:05:00 Produced by the JSE SENS Department.
