|
MCU
MCU
MCU - m Cubed - Abridged audited financial results for the year ended 28
February 2007
m Cubed Holdings Limited
Incorporated in the Republic of South Africa)
Registration number: 1998/014568/06
Share code: MCU & ISIN: ZAE000033353
("m Cubed" or "the company")
Abridged audited financial results for the year ended 28 February 2007
Income statement
for the year ended 28 February 2007
2007 2006
R`000 R`000
Net revenue 100 816 263 156
Cost of revenue (36 837) (137 070)
Gross profit 63 979 126 086
Operating expenditure (62 834) (113 901)
Results of operating activities 1 145 12 185
Finance income 34 938 24 279
Share of profit in associate - 10 590
Impairment of goodwill (3 702) (56 034)
Impairment of investment 1 180 (2 417)
Profit/(Loss) before non-trading items 33 561 (11 397)
Provision for dispute with regulator - (90 420)
Disposal of businesses 498 82 793
Net profit/(loss) before taxation 34 059 (19 024)
Taxation (11 865) (27 445)
Net profit/(loss) for the year 22 194 (46 469)
Reconciliation between headline earnings/(loss)
and net profit/(loss) for the year
Net profit/(loss) for the year 22 194 (46 469)
Disposal of businesses (498) (82 793)
Capital gains tax on disposals - 6 525
Impairment of goodwill 3 702 56 034
Impairment of investment (1 180) 2 417
Headline earnings attributable to shareholders 24 218 (64 286)
Earnings/(loss)per share (cents)
Earnings/(loss) 3,0 (6,3)
Headline earnings/(loss) 3,3 (8,7)
Diluted earnings/(loss) 3,0 (6,3)
Diluted headline earnings/(loss) 3,2 (8,6)
Balance sheet
at 28 February 2007
2007 2006
R`000 R`000
Assets
Non-current assets
Property, plant and equipment 857 2 210
Investments 7 061 370 10 093 153
Insurance contracts 28 238 28 043
Investment contracts 7 033 132 10 065 110
Deferred acquisition cost 21 327 36 000
Goodwill 3 000 6 702
Loans and advances 117 177
Deferred taxation - 200
7 086 671 10 138 442
Current assets
Receivables and prepayments 37 019 183 328
Cash and cash equivalents 277 158 214 379
314 177 397 707
Total assets 7 400 848 10 536 149
Equity and liabilities
Capital and reserves
Share capital 7 382 7 363
Share premium 227 863 226 878
Foreign currency translation reserve 2 123 (1 447)
Accumulated profits 82 121 60 516
Ordinary shareholders` funds 319 489 293 310
Non-current liabilities
Policyholder liabilities 6 988 156 10 045 089
Insurance contracts 31 910 29 760
Investment contracts 6 956 246 10 015 329
Deferred revenue liability 19 380 34 001
7 007 536 10 079 090
Current liabilities
Trade and other payables 73 139 163 224
Current tax liabilities 684 525
73 823 163 749
Total equity and liabilities 7 400 848 10 536 149
Number of shares in issue (`000) 738 285 736 321
Net asset value per share (cents) 43,3 39,8
Net tangible asset value per share (cents) 42,9 38,9
Cash flow statement
for the year ended 28 February 2007
2007 2006
R`000 R`000
Operating activities (3 731 675) (621 671)
Cash utilised by operations (3 755 107) (611 268)
Finance income 34 938 24 279
Taxation paid (11 506) (23 690)
Dividends paid - (10 992)
Investing activities 3 794 219 681 906
Additions to property, plant and equipment (738) (424)
Proceeds on disposal of property, plant and
equipment 616 99
Disposal of businesses 156 885 53 168
Decrease in investments 3 637 396 627 421
(Increase)/decrease in loans receivable 60 1 642
Financing activities 235 2 558
Sale of shares by share incentive trust 235 2 558
Net movement in cash and cash equivalents 62 779 62 793
Net cash and cash equivalents at beginning of
year 214 379 151 586
Net cash and cash equivalents at end of year 277 158 214 379
Statement of changes in equity
for the year ended 28 February 2007
Foreign
currency Accumu-
Share Share translation lated
capital premium reserve profits Total
R`000 R`000 R`000 R`000 R`000
Balance at
28 February 2006 7 363 226 878 (1 447) 60 516 293 310
Opening balance 44 143 44 143
adjustment to assets
Decrease in transfer (44 143) (44
to life fund 143)
Restated balance at 1 7 363 226 878 (1 447) 60 516 293 310
March 2006
Increase in foreign
currency translation
reserve - - 3 570 - 3 570
Net profit for the
year - - - 22 194 22 194
Share-based payments 181 181
Shares sold by share
incentive trust 19 985 - (770) 234
Balance at
28 February 2007 7 382 227 863 2 123 82 121 319 489
Segmental reporting
Headline Assets under
earnings management
2007 2006 2007 2006
Rm Rm Rbn Rbn
Wealth management 14 7 7 10
Asset management - 10 - -
Specialised investments, lending and
treasury 8 (81) - -
22 (64) 7 10
Net revenue
Recurring Initial
2007 2006 2007 2006
Rm Rm Rbn Rbn
Wealth management 95 130 1 3
Asset management - 3 - 83
Specialised investments, lending and
treasury 5 35 - 9
100 168 1 95
The abridged audited financial results for the year ended 28 February 2007,
contained in the annual report which has been posted to m Cubed shareholders
today, contains differences to the reviewed provisional financial results
published on SENS on 28 June 2007. The abridged audited financial results thus
replace the provisional reviewed financial results for the year ended 28
February 2007.
Basis of preparation
The financial statements have been prepared in accordance with International
Financial Reporting Standards ("IFRS") and in compliance with the Companies Act
of South Africa of 1973, and the Long-term Insurance Act of 1998, and the
listing requirements of the JSE Limited. The accounting policies are consistent
with those of the previous financial period.
Comparative figures
Following completion of the investigation referred to in the 2006 Annual Report
the comparative figures for policyholder liabilities as well related investments
have been restated by R44 million in respect of certain policies previously
omitted in error. The directors are of the opinion that there is no indication
of material misstatement or mismatch of policyholder liabilities and related
assets.
Auditor`s report
The results have been audited by PKF (Jhb) Inc. The auditor`s report is
available for inspection at the registered office of the company.
The auditor`s report places emphasis of matter on the contingent liabilities
referred to below under the heading `Contingent Liabilities`.
Contingent liabilities
m Cubed is exposed to a contingent liability estimated at a maximum of R50
million in respect of settlement with the Regulator, referred to in all previous
communication with shareholders. The R50 million has been retained by the
Regulator for the due performance in unwinding certain transactions, being the
subject matter of the dispute. Jan S de Villiers has been appointed to work
closely with the Regulator`s forensic auditors to unwind and regularise these
transactions.
m Cubed is exposed to an additional contingent liability in respect of tax
claimed by SARS in terms of a revised tax assessment issued to m Cubed
Specialised Lending (Pty) Ltd, in relation to an intellectual property sale and
leaseback transaction concluded in 1999. This contingency has not been
quantified as objections have been lodged against this assessment, and the tax
specialist that has been appointed to deal with this matter is of the opinion
that the company has a strong case.
m Cubed Life had an agency agreement with Ovation Global Investment Services
(Pty) Ltd ("Ovation"). With Ovation having been put under curatorship, it has
not been possible to agree the assets and linked policy liabilities with Ovation
at 28 February 2007. The directors are attending to the matter, in consultation
with the Financial Services Board.
Chairman`s report
The chairman`s report, the details of which were summarised and published in the
provisional reviewed results announcement, released on SENS on 28 June 2007 is
included in the annual report that has been posted to shareholders today.
Notice of annual general meeting
Notice is hereby given that the annual general meeting of m Cubed shareholders
will be held on Friday, 21 September 2007 at 10h00 in the boardroom on the 1st
floor, PSG House, Alphen Park, Constantia Main Road, Constantia, Cape Town, to
transact the business as stated in the notice of the annual general meeting
contained in the annual report.
30 August 2007
Sponsor
PSG Capital(Pty)Limited
Date: 30/08/2007 16:30:10 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
| 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 ] | |||||||||||||
|
|||||||||||||
