|
NCS
NCS
NCS - Nictus - Abridged Report and details of the Notice of AGM
NICTUS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1981/001858/06)
JSE Share code: NCS
NSX Share code: NCT
ISIN Code NA0009123481
("Nictus" or "the company")
ABRIDGED REPORT RELATING TO THE AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31
MARCH 2007 AND DETAILS OF THE NOTICE OF ANNUAL GENERAL MEETING
ABRIDGED GROUP INCOME STATEMENTS FOR THE YEAR ENDED 31 MARCH 2007
Audited Audited
2007 2006
R`000 R`000
Revenue 233 110 226 649
Cost of sales (161 947) (145 197)
Claims incurred (20 666) (28 555)
Gross profit 50 497 52 897
Other operating income 8 938 2 584
Administrative expenses (20 096) (15 756)
Other operating expenses (39 015) (39 653)
Operating profit before investment income 324 72
Investment income 10 325 6 353
Operating profit before financing costs 10 649 6 425
Financing costs (5 407) (5 235)
Share of profits of associates 688 105
Profit before taxation 5 930 1 295
Taxation 87 1 792
Profit for the year 6 017 3 087
Attributable to:
Equity holders of the parent 6 501 3 004
Minority interest (484) 83
Profit for the year 6 017 3 087
Earnings per share (cents) 12.63 5.62
Diluted earnings per share (cents) 12.16 5.62
RECONCILIATION BETWEEN EARNINGS AND HEADLINE EARNINGS:
Profit for the year 6 501 3 004
Profit on disposal of interest in (2 154) -
subsidiaries
Profit on disposal of interest in associates (1 240) -
Negative goodwill (823) -
Impairment loss on goodwill - 406
Reversal of impairment losses on loans - (300)
Loss on disposal of property, plant and 219 102
equipment net of insurance proceeds
Write off of plant and equipment - (357)
Headline earnings 2 503 2 855
Headline earnings per share (cents) 4.86 5.34
ABRIDGED GROUP BALANCE SHEETS AS AT 31 MARCH 2007
Audited Audited
2007 2006
R`000 R`000
Assets
Non-current assets
Property, plant and equipment 50 673 37 811
Intangible assets and goodwill 1 894 3 773
Interest in associates - 1 030
Investments 17 817 6 467
Loans and receivables 119 078 101 530
Deferred tax asset 8 675 10 120
Current assets
Inventories 25 779 33 188
Trade and other receivables 73 366 58 772
Cash and cash equivalents 77 060 55 058
Current tax assets 678 678
Total assets 375 020 308 427
Equity
Issued ordinary share capital 25 729 26 722
Revaluation reserve 17 002 -
Contingency reserve 7 199 5 322
Retained income 15 601 11 779
Minority interest - 1 031
Non-current liabilities
Interest bearing loans and borrowings 15 000 17 844
Deferred tax liability 5 666 4 708
Current liabilities
Bank overdraft 18 873 15 401
Interest bearing loans and borrowings 14 920 18 142
Insurance contract liabilities 231 095 183 960
Trade and other payables 23 751 23 435
Current tax liabilities 184 83
Total equity and liabilities 375 020 308 427
ABRIDGED CASH FLOW STATEMENTS FOR THE YEAR ENDED 31 MARCH 2007
Audited Audited
2007 2006
R`000 R`000
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation 5 930 1 295
Adjustment for:
Investment income (10 325) (6 353)
Financing costs 5 407 5 235
Depreciation 1 579 2 193
Amortisation of software 240 228
Loss on disposal of property, plant and
equipment 219 102
Profit on disposal of interest in associate (1 240) -
Profit on disposal of investments (75) (626)
Profit on disposal of subsidiary (2 154) -
Share of profit of associates (688)
Fair value adjustment on investments (2 281) (526)
Property, plant and equipment written off - (357)
Impairment loss of goodwill - 406
Negative goodwill recognized in profit and (823) -
loss
Operating (loss)/ income before working
capital changes (4 211) 1 597
Working capital changes
Decrease / (increase) in inventories 7 409 (6 492)
(Increase)/ decrease in trade and other (18 143) 1 187
receivables
Increase in insurance contract liabilities 47 135 29 450
Increase /(decrease) in trade and other 5 096 (1 138)
payables
Cash generated by operations 37 286 24 604
Interest received 5 520 3 066
Interest paid (4 637) (4 522)
Ordinary dividends received 4 805 3 287
Preference dividend paid (770) (713)
Taxation paid (48) (235)
Ordinary dividends paid (802) -
Net cash flow from operating activities 41 354 25 487
CASH FLOWS FROM INVESTING ACTIVITIES
Replacement of property, plant and equipment (2 703) (4 128)
Expansion of property, plant and equipment (665) -
Proceeds from disposal of property, plant 686 1 081
and equipment
Developments and purchases of intangible (14) (246)
assets
Acquisition of subsidiary (2 059) -
Disposal of subsidiary, net of cash disposal 2 450 -
of
Proceeds from disposal of investments 2 020 4 851
Investments made (10 528) (4 625)
Acquisition of interest in associate - (925)
Proceed on disposal of associate 1 765
Loans and receivables advanced (15 903) (11 500)
Net cash flow from investing activities (24 951) (15 492)
CASH FLOWS FROM FINANCING ACTIVITIES
Interest bearing loans and borrowings raised 3 338 3 000
Interest bearing loans and borrowings repaid (218) -
Treasury shares (993) -
Net cash flow from financing activities 2 127 3 000
Net movement in cash and cash equivalents 18 530 12 995
Cash and cash equivalents at beginning of
year 39 657 26 661
Cash and cash equivalents at end of year 58 187 39 657
ABRIDGED STATEMENTS OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2007
Audited
Share Re- Con- Retained Total
capital valuation tingency Income equity
reserve reserve Minority
Total interest
R`000 R`000 R`000 R`000 R`000 R`000 R`000
Balance at 26 722 - 5 400 8 697 41 767
1 April
2005 40 819 948
Changes in
equity for
the 2006
year
Profit for - - - 3 004 3 087
the year 3 004 83
Total 26 722 - 5400 11 701 44 854
recognised
income and
expenses
for the
year 43 823 1 031
Transfer - - (78) 78 -
from
contingency
reserve - -
Balance at 26 722 - 5 322 11 779 44 854
31 March
2006 43 823 1 031
Transfer to (993) (993)
treasury
shares (993)
Changes in
equity
shares for
the 2007
year
Net income
recognised
directly in
equity
Revaluation 17 002 17 002
of land and
buildings 17 002
Profit / 6 501 6 017
(loss) for
the year 6 501 (484)
Total 25 729 17 002 5 322 18 280 66 880
recognised
income and
expenses
for the
year 66 333 547
Transfer to 1 877 (1 877)
contingency
reserve
Minority (547)
portion of
shares
acquired in
subsidiary (547)
Ordinary (802) (802)
dividend (802)
Balance at 25 729 17 002 7 199 15 601 65 531
31 March
2007 65 531 -
ABRIDGED SEGMENTAL ANALYSIS FOR THE YEAR ENDED 31 MARCH 2007
2007 2006
R`000 R`000
Motor retail 3 342 2 256
Furniture retail (81) (440)
Insurance & Finance 8 139 1 946
Head Office (3 412) 2 663
Eliminations 2 661 -
Total operating profit 10 649 6 425
ACCOUNTING POLICIES
The abridged consolidated annual financial statements have been prepared in
accordance with the recognition and measurement requirements of International
Financial Reporting Standards (IFRSs) and its interpretations adopted by the
International Accounting Standards Board, and the presentation and disclosure
requirements of IAS 34 Interim Financial Reporting. The accounting policies are
consistent with those applied in the consolidated financial statements for the
year ended 31 March 2007.
RELATED PARTIES
The company has a related party relationship with its subsidiaries, fellow
subsidiaries, associates and with its directors and executive officers.
2007 2006
TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL R`000 R`000
Salaries and bonuses 2 549 3 891
TRANSACTIONS WITH RELATED PARTIES
PREMIUMS RECEIVED
Key management personnel and affiliates
E Tromp 21 11
Gecko Consulting (Pty) Ltd 80 154
Hitech Lasers 600 632
Management Outsource Services (Pty) Ltd - 44
Medilase (Pty) Ltd 128 -
NC Tromp Boerdery 17 18
NCT Trust - 89
Premier Services (Pty) Ltd 24 35
PJ de W Tromp & Seuns (Pty) Ltd 12 14
Tromp Consulting International (Pty) Ltd - 13
LOANS ADVANCED TO RELATED PARTIES
Key management personnel and affiliates
Aquaries Properties (Pty) Ltd 53 275
E Tromp - 6
Gecko Consulting (Pty) Ltd 20 184
H & Z Consulting (Pty) Ltd 178 8
Hartelus Farming (Pty) Ltd 199 20
Management Outsource Services (Pty) Ltd - 8
N Prinsloo 175 112
Swart Family Trust 18 39
Tromp Consulting International (Pty) Ltd 168 37
PREFERENCE SHARES REDEEMED
Affiliates
PJ de W Tromp & Seuns (Pty) Ltd - 26
ADVANCES INCLUDED IN LOANS AND RECEIVABLES
Key management personnel and affiliates
Aquaries Properties (Pty) Ltd 781 728
Empty Investments 30 CC 303 303
Gecko Consulting (Pty) Ltd 204 184
H & Z Consulting (Pty) Ltd 186 8
Hartelus Farming (Pty) Ltd 1 087 888
Management Outsource Services (Pty) Ltd 185 185
N Prinsloo 213 38
Swart Family Trust 207 189
Tromp Consulting International (Pty) Ltd 326 158
PREFERENCE SHARES INCLUDED IN LOANS AND
RECEIVABLES
Affiliates
Makalani Grapes (Pty) Ltd 5 000 5 000
Suidwesdrukkery Ltd 1 500 1 500
PJ de W Tromp & Seuns (Pty) Ltd 2 000 2 000
RESPONSIBILITY FOR CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
The abridged consolidated annual financial statements have been prepared in
accordance with the recognition and measurement requirements of International
Financial Reporting Standards (IFRSs) and its interpretations adopted by the
International Accounting Standards Board, and the presentation and disclosure
requirements of IAS 34 Interim Financial Reporting.
Appropriate accounting policies supported by reasonable and prudent judgements
have been applied consistently with those of prior year. The annual consolidated
financial statements for the year ended 31 March 2007 have been audited by KPMG
Inc., and their unqualified audit opinion is available for inspection at the
registered office of the company.
CHAIRMAN`S REPORT
It is once again a privilege and pleasure to report to you on your Group`s
financial results for the past year.
Two key approaches characterised the period in review. Firstly, the Group
experienced some of the benefits resulting from the consolidation process it
embarked upon. Secondly, divesting of a number of unproductive investments made
in the past has also made a positive contribution to the year`s results.
Milestone events:
The acquisition of the remaining 35% of the issued share capital of Futeni
Collections (Pty) Ltd (a Namibian debt collection company) which has already
positively impacted our financial results.
The sale of Parcel Force (Pty) Ltd a subsidiary which incurred losses in
previous years.
The decision by the Board to phase out the carpet wholesale division of the
Group.
The incorporation of the retail carpet divisions into the furniture outlets,
thereby enhancing control and curtailing costs.
The upgrading our furniture outlets, the initial positive effects which have
been seen but will only show their full effects in the coming year.
The appointment of Mr Gielie Swart as Managing Director of Corporate Guarantee
SA and his relocation from Windhoek to Randburg to manage the focused effort in
South Africa.
Financial highlights of the year under review
Profit for the year doubled to R6 million.
The group asset base grew by 22% to R375 million.
The cash position of the group increased by R19 million to R58m
Capital and reserves grew by 46% to R66 million.
Operating environment - the past and coming year
The majority of the Group`s revenue (86%) was earned in Namibia and, as can be
expected, the country`s economy had a major impact on performance of the Group.
The Namibian economy relies to a large extent on the exports and the exchange
rate of its currency (tied to the SA Rand and its monetary influence) vis-a-vis
its major trading partners. The higher than expected SA trade deficit and
disappointing inflation figures were unable to weaken the Rand/(N$) for now as
foreign investors were primarily focused on the higher yield that the Rand/(N$)
offered. We anticipate a further weakening of the Rand/(N$) over the short to
long term. The weakening of the currency will help trading conditions in Namibia
and will, to a limited extent, offset the negative effect of increasing interest
rates and price hikes.
From a Namibian macro economic point of view the following is noted:
Real growth has decelerated to 4.0% in the past year.
Inflation in Namibia was 5.1% on average, - slightly higher than in South
Africa.
Growth is projected to accelerate slightly in 2007 to 4.1%.
The Namibian CPI is expected to peak close to 7.0% in June 2007, due to base
effects 12 months ago, before easing to below 6% toward year end. Sustained high
food inflation underpins this forecast.
A rise in interest rates of 0,5% was announced by the South African Reserve
Bank, which immediately was followed by a similar rise of rates in Namibia. We
believe however that the risk is high to the upside in future. Although the SA
Reserve Bank targets inflation, it is our view that persistently strong credit
growth and pressure on the current account might force the Reserve Bank to
reconsider the increase of the interest rate to protect its credibility in
future.
New SA passenger vehicle sales for May 2007 showed a drop in the year-on-year
comparison which may indicate that consumers are starting to respond to higher
interest rates. April`s credit figures also suggest that consumer demand for
credit has continued to slow down. Add to this the increase in the petrol and
food prices, as well as the anticipated strong rise in the price of electricity,
and it is evident that we can expect a "slow down" in consumer demand.
It is clear from the above that we will have to prepare ourselves for the same
impact in our retail businesses. The game however, is won or lost on the shop
floor. We believe that our client relationships are the most valued and
important instrument contributing towards success. In our furniture and carpet
outlets, 85% of sales are to previous clients, and our debtors` book increased
by 25% during the year in Rand terms. 60% (55%) of sales are on credit and 40%
(45%) cash. Our bad debts have been strictly managed and have been contained
between 3-5%.
The motor retail segment showed a very positive move compared to 2006. Our
operations will be focused along the lines referred to above.
Our Insurance and Finance segment performed well although a decline was noted in
this industry. It is our view that this will continue in the coming year. We
believe that Corporate Guarantee SA is strategically placed and will continue to
contribute more and more to the revenue of the Group.
Credit Legislation
The Group is confident that its sound credit rating and current IT systems will
assist in meeting the requirements of the Act. Our Group is recognised and
trusted for responsible credit extension, and for building lifetime
relationships with our customers. The effect of the Act on our revenue is
expected to be fairly neutral due to our sound, existing credit criteria. It
will however, have a greater administrative impact and the process will be more
time consuming than the previous methods of credit approval.
Capital Structure
Good progress was made in addressing the capital structure of the Group and this
remains an area of high focus and priority. Capital investment by the Holding
Company in the Group increased by R20 million during the past year. Capital
expenditure of R36 million has been approved by the Board for the next financial
year.
Human Resources
The growth of the Group reached a level which necessitated a focused approach
towards recruitment, retention and development of skills and talent. The Group
plans to bring excellence to this function and thereby remain a preferred
employer.
Dividend
The Board of Directors has approved a final dividend of 3.75 cents per share.
This remains in line with our policy of 3 x cover.
Corporate Governance
The Group is fully committed to the principles of good corporate governance
through transparency, integrity and accountability. These principles comply with
the code of corporate practises and conduct as set out in the King II report on
corporate governance and the JSE listing requirements.
Appreciation
I wish to thank my fellow Board members for their co-operation, their efforts to
focus on the core issues and their support over the past years.
I also wish to thank the Executive Directors and the entire staff for the much
improved results achieved, as can be seen in the financial statements. I am
further encouraged by their commitment to planned improvements in the coming
year. Our customers and other stakeholders are thanked for their support.
I also express my appreciation to the Managing Director, his accounting staff
and our External Auditors who kept to the stringent time limits set to have
these financial reports ready in time.
What we have achieved and what we plan is eventually dependent on the Grace of
God Almighty.
JL Olivier
Chairman: Nictus Group
DECLARATION OF ORDINARY DIVIDEND
The board has declared a final dividend of 3.75 cents per share to ordinary
shareholders of the Company for the year ended 31 March 2007.
The salient dates of this dividend are:
Last day to trade "cum" the dividend Friday, 20 July 2007
Shares commence trading "ex" the dividend
from the commencement of business on Monday, 23 July 2007
Record date Friday, 27 July 2007
Payment date Monday, 30 July 2007
Share certificates may not be dematerialised or rematerialised between Monday 23
July 2007 and Friday 27 July 2007 both days inclusive.
Shareholders are furthermore advised that a 10% non-resident shareholder`s tax
on the declared dividend will be applicable to all shareholders with addresses
outside of Namibia.
By order of the board
ANNUAL REPORT AND NOTICE OF ANNUAL GENERAL MEETING
As the annual report for the year ended 31 March 2007 ("the annual report") was
posted to shareholders on 20 June 2007, within 3 months of Nictus`s year end,
this announcement is not required to appear in the press and will not be sent to
shareholders.
The annual report contains a notice convening the annual general meeting of
Nictus shareholders for the year ended 31 March 2007 ("the AGM"). The AGM will
be held in the boardroom at the Nictus Building, corner of Pretoria and Dover
Street, Randburg, Gauteng on Monday 20nd of August 2007 at 14h00.
J L Olivier
Chairman
2 July 2007
Date: 02/07/2007 16:18:00 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 ] | |||||||||||||
|
|||||||||||||
