|
BJM
BJM
BJM - Barnard Jacobs Mellet Holdings - Summarised audited results and
dividend declaration
BARNARD JACOBS MELLET HOLDINGS LIMITED
Registration number: 1995/004798/06
Incorporated in the Republic of South Africa
ISIN: ZAE000014262 JSE code: BJM
> Basic earnings per share up 81%
> Normalised earnings per share up 19%
> Normalised ROCE 19,3%
> Total annual dividend of 85,6 cents per share
Summarised audited results for the YEAR ENDED 31 MARCH 2007
COMMENTARY
Operations
Profit of R113 million makes the 2007 financial year the best ever in BJM`s 22-
year history and resulted in an increase of 81% in basic earnings to 136 cps.
Normalised earnings, being earnings adjusted for the impact of non-recurring
items and STC, increased by 19% to 77 cps, while headline earnings, which
include STC charges on normal and special dividends, increased by 3% to 62 cps.
Net asset value, which does not include the value of BJM Private Client Services
and Finsettle Services, rose from 396 cps to 399 cps.
A large component of the profit, R61,5 million, was extraordinary in nature and
related directly to the gains made on the Group`s holding of JSE shares.
Normalised earnings of R63,8 million were influenced by the following factors:
The hiring and continued retention of highly qualified talent able to meet the
challenges of a changing industry from a cohesive and focused platform.
Favourable market conditions.
Continued support from a growing client base with an overall improvement in
client rankings.
A highly rated research, sales and execution product that comprises the core
pillar upon which BJM`s business model is built.
Continued growth in assets under administration from R20 billion to R28 billion.
Disciplined cost control that largely succeeded in avoiding the excesses
normally associated with a bull market, with the important exception of manpower
costs that rose in line with industry pressure and a higher staff complement.
Total income is 29% higher at R479 million while total costs (including finance
costs) are 21% higher at R320 million. The increase in costs is fully
attributable to variable cost increases in manpower and settlement charges.
Revenue rose by 12% to
R407 million.
Gross equity brokerage, including that of the international offices, rose by 13%
to R288 million, notwithstanding significant continued pressure on brokerage
commission rates during the year. Domestic equity brokerage, rose by 27% to R202
million. The fixed income markets remained subdued for yet another year but the
Group`s activity in this area remained profitable with a quality product
provided to both institutional and retail clients.
Assets under administration within the retail operation of the Group have grown
by 40% to R28 billion and represent a vastly different business to that of only
four years ago when the comparative number was R3 billion. BJM Private Client
Services now operates out of five offices in South Africa with the latest
addition in George having been established during the course of this year.
The Group acquired Quaestor Capital, a corporate finance boutique, in the last
quarter of the financial year. The acquired company, now conducting business as
BJM Corporate Finance, is already fully integrated into the Group and meeting
every expectation hoped for and anticipated at the time of the transaction. This
acquisition accounts for the disclosed increase in intangible assets detailed
below.
The R7,65 million claim lodged by Computershare South Africa (Pty) Limited
against Finsettle Services, a wholly-owned subsidiary of BJM, and referred to in
last year`s report is still to be heard in court. Our contention that the claim
is unfounded remains intact and no provision has been raised in the financial
accounts.
The company has returned surplus capital to shareholders by an aggressive policy
of paying all earnings, inclusive of extraordinary items, to shareholders in the
form of dividends. With the current level of equity capital being deemed
appropriate to conduct ordinary business activity, the dividend policy of two
times cover will be resumed.
Prospects
Extraordinary earnings of the kind experienced in the last financial year are
not anticipated for the coming year. It is accordingly envisaged that basic
earnings will closely mirror headline earnings which in turn will be largely
driven by market conditions. While the addition of a viable corporate finance
capability will undoubtedly add to the revenue stream, a continuation of margin
pressure and increased competition may well offset those gains and result in a
similar operational performance provided market conditions remain unchanged.
Dividend
Notice is hereby given that the Board has declared a final ordinary dividend of
15 cents per share in respect of the year ended 31 March 2007. The dividend will
be paid on Monday, 25 June 2007.
The last day to trade in the shares for purposes of entitlement to the dividend
will be Friday, 15 June 2007. The shares will commence trading ex-dividend on
Monday, 18 June 2007 and the record date will be Friday, 22 June 2007.
Share certificates may not be dematerialised or rematerialised between Monday,
18 June 2007 and Friday, 22 June 2007, both days inclusive.
Basis of preparation
The accounting policies and methods of computation used in the preparation of
these results comply with the recognition and measurement basis of the full IFRS
and the presentation and disclosure requirements of IAS 34 and are consistent in
all material respects with those adopted for the year ended 31 March 2006.
Auditors` report
The auditors, KPMG Inc, issued their opinion on the Group financial statements
for the year ended 31 March 2007. A copy of the auditors` unqualified report is
available for inspection at the Company`s registered office.
John Bester Kevin Jacobs
Chairman Chief Executive Officer
Johannesburg 30 May 2007
CONSOLIDATED INCOME STATEMENT
for the year ended 31 March 2007
2007 2006
R`000 R`000
Operating income 371 421 333 169
Interest income 35 976 29 037
Revenue 407 397 362 206
Profit on sale of investments 71 938 9 090
Total income 479 335 371 296
Operating costs (318 281) (261 566)
Operating profit before finance costs 161 054 109 730
Finance costs (1 267) (2 097)
Preference Dividends - (1 396)
Income from investments 33 -
Profit before tax 159 820 106 237
Income tax expense (46 864) (37 411)
Profit for the year 112 956 68 826
Basic earnings per share (cents) 136,1 75,4
Diluted earnings per share (cents) 118,1 65,9
CONSOLIDATED BALANCE SHEET
as at 31 March 2007
2007 2006
R`000 R`000
Assets
Non-current assets
Equipment 5 955 3 543
Investments 4 081 45 225
Intangible assets 12 678 3 692
Deferred tax assets 10 664 11 272
33 378 63 732
Current assets
Amounts receivable in respect of 5 526 066 3 498 133
stockbroking activities
Margin on derivative financial instruments 31 080 7 742
Trade and other receivables 60 111 11 861
Listed securities holdings 548 695 187 002
Unlisted promissory notes 5 353 24 276
Cash and cash equivalents 189 488 363 317
6 360 793 4 092 331
Total assets 6 394 171 4 156 063
Equity and liabilities
Equity
Share capital 833 833
Share premium 87 856 96 382
Non-distributable reserves 38 642 41 637
Retained earnings 205 008 190 764
332 339 329 616
Non-current liabilities
Loans and deferred payments 3 239 -
Deferred tax liabilities 2 710 6 225
5 949 6 225
Current liabilities
Amounts payable in respect of stockbroking 5 391 083 3 448 401
activities
Listed securities sold short 554 478 269 360
Trade and other payables 88 011 80 862
Income tax payable 7 223 14 438
Shareholders for dividends 194 121
Bank overdraft 14 894 7 040
6 055 883 3 820 222
Total equity and liabilities 6 394 171 4 156 063
GROUP STATEMENT OF CHANGES IN EQUITY
for the year ended 31 March 2007
Non-
distri-
Share Share butable Retained
capital premium reserves earnings Total
R`000 R`000 R`000 R`000 R`000
Balance at 1 990 156 509 17 473 148 238 323 210
April 2005
Exchange
differences on
translating - - (5 999) - (5 999)
foreign
operations
Equity settled
share-based
payments to - - (2) - (2)
employees
IFRS 2
recognition of
BEE
credential - - 606 - 606
Fair-value
adjustment on
available-for- - - 36 134 - 36 134
sale
instruments
Transfer to - - (6 575) 6 575 -
retained
earnings
Cancellation of (121) (48 179) - - (48 300)
shares
Purchase of (66) (19 535) - - (19 601)
treasury stock
Sale of 30 7 587 - - 7 617
treasury stock
Profit for the - - - 68 826 68 826
year
Dividends paid - - - (32 875) (32 875)
Balance at 1 833 96 382 41 637 190 764 329 616
April 2006
Exchange
differences on
translating - - 26 461 - 26 461
foreign
operations
Equity settled
share-based
payments to - - 4 652 - 4 652
employees
IFRS 2
recognition of
BEE
credential - - 606 - 606
Fair-value
adjustment on
Available-for- - - 23 800 - 23 800
sale
instruments
Profit realised
with sale of
Available-for- - - (58 514) - (58 514)
sale
instruments
Purchase of (35) (18 916) - - (18 951)
treasury stock
Sale of 35 10 390 - - 10 425
treasury stock
Profit for the - - - 112 956 112 956
year
Dividends paid - - - (98 712) (98 712)
Balance at
31 March 2007 833 87 856 38 642 205 008 332 339
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 March 2007
GROUP
2007 2006
R`000 R`000
Cash utilised in operating (258 408) (60 630)
activities
Cash generated from investing 56 626 70 205
activities
Cash utilised in financing (6 362) (181 444)
activities
Net decrease in cash and cash (208 144) (171 869)
equivalents
Cash and cash equivalents at 356 277 534 145
beginning of year
Effect of exchange rate fluctuations 26 461 (5 999)
Cash and cash equivalents at end of 174 594 356 277
year
RESULTS PER SHARE
2007 2006
Weighted average number of ordinary
shares
in issue (`000) 82 982 91 249
Headline earnings per share (cents) 61,8 60,0
Diluted Headline earnings per share 53,7 52,4
(cents)
Dividend per share paid (cents)
- Ordinary 52,0 27,0
- Special 57,1 11,0
Net asset value per share (cents) 399 396
Reconciliation of headline earnings R`000 R`000
Basic earnings 112 956 68 826
Loss on disposal of equipment 8 757
Liquidation distribution received (139) (7 092)
Profit on sale of investments (61 507) (7 772)
Headline earnings 51 318 54 719
SEGMENTAL ANALYSIS
Corporate Settlement and
Stockbroking finance prime broking
BUSINESS SEGMENT 2007 R`000 R`000 R`000
Revenue from external 386 575 3 872 18 320
customers
Inter-segment revenue 6 415 110 3 826
Total income 392 990 3 982 22 146
Segment result 90 222 (215) 4 652
Finance costs
Income from investments
Income tax expense
Profit for the year
Segment assets 5 762 412 4 378 415 886
Segment liabilities 5 469 447 6 656 408 288
Non-cash items
Depreciation 1 568 40 212
IFRS 2 recognition of - - -
BEE credential
BUSINESS SEGMENT 2006
Revenue from external 325 252 5 996 17 673
customers
Inter-segment revenue 3 687 14 5 431
Total income 328 939 6 010 23 104
Segment result 84 903 1 428 5 360
Finance costs
Preference dividend
Income tax expense
Profit for the year
Segment assets 3 516 319 1 429 507 962
Segment liabilities 3 221 046 3 305 502 434
Non-cash items
Depreciation 1 976 16 168
IFRS 2 recognition of - - -
BEE credential
SEGMENTAL ANALYSIS (continued)
Other Eliminations Consolidated
BUSINESS SEGMENT 2007 R`000 R`000 R`000
Revenue from external 70 568 - 479 335
customers
Inter-segment revenue 28 612 (38 963) -
Total income 99 180 (38 963) 479 335
Segment result 79 212 (12 817) 161 054
Finance costs (1 267)
Income from investments 33
Income tax expense (46 864)
Profit for the year 112 956
Segment assets 366 385 (154 890) 6 394 171
Segment liabilities 207 372 (29 931) 6 061 832
Non-cash items
Depreciation 353 - 2 173
IFRS 2 recognition of BEE 606 - 606
credential
BUSINESS SEGMENT 2006
Revenue from external 22 375 - 371 296
customers
Inter-segment revenue 24 572 (33 704) -
Total income 46 947 (33 704) 371 296
Segment result 20 060 (2 021) 109 730
Finance costs (2 097)
Preference dividend (1 396)
Income tax expense (37 411)
Profit for the year 68 826
Segment assets 258 945 (128 592) 4 156 063
Segment liabilities 116 662 (17 000) 3 826 447
Non-cash items
Depreciation 294 - 2 454
IFRS 2 recognition of BEE 606 - 606
credential
Directors
JA Bester (Chairman), HSC Bester, KG Jacobs* (CEO), AM Mazwai*,
AR Martin, SM Mellet, MS Rebe, TS Seopa * Executive
Company secretary
A de Villiers
Registered office Transfer secretaries
Barnard Jacobs Mellet House Link Market Services South Africa
5 Sturdee Avenue (Pty) Limited
Rosebank, 2196 11 Diagonal Street
Johannesburg, 2001
Date: 31/05/2007 08:00:07 Produced by the JSE SENS Department.
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
