| Thu 27 Sep 2007, 16:53 | | ACT/ACTP- AfroCentric - Audited results for the ye |
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ACT
ACT
ACT/ACTP- AfroCentric - Audited results for the year ended 30 june 2007
AFROCENTRIC INVESTMENT CORPORATION LIMITED
(Formerly W B Holdings Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1988/000570/06)
JSE Code: ACT, ACTP
ISIN: ZAE 000078416, ZAE 000082269
("AfroCentric" or "the Company")
AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2007
Group Company
CONDENSED CONSOLIDATED INCOME 2007 2007 2006
STATEMENTS R`000 R`000 R`000
Revenue - - -
Administration Expenses (1,144) (1,144) (758)
Other Expenses - - (4,910)
Net Finance Income 7,826 7,826 26
Finance income 7,844 7,844 26
Finance cost (18) (18) -
Profit (Loss) Before Tax 6,682 6,682 (5,642)
Income Tax Expense (2,009) (2,009) (428)
Profit (Loss) for the Year 4,673 4,673 (6,070)
Attributable to Equity
Holders of the Company 4,673 4,673 (6,070)
EARNINGS ATTRIBUTABLE TO
EQUITY HOLDERS
Profit (Loss) Attributable to
Equity Holders 4,673 4,673 (6,070)
Number of Ordinary
Shares in Issue 94,000,000 94,000,000 9,400,000
Number of Preference
Shares in Issue 16,638,000 16,638,000 -
Weighted Average Number of
Ordinary Shares 83,801,644 83,801,644 9,400,000
Weighted Average Number of
Ordinary Shares and Potential
Ordinary Shares 98,433,967 98,433,967 9,400,000
Earnings (Loss) per Share (cents)
Attributable to Ordinary Shares 5.58 5.58 (64.5)
Diluted Earnings (Loss) per Share 4.75 4.75 (64.5)
Basic Headline Earnings
(Loss) per Share
(cents) Attributable to
Ordinary Shares 5.58 5.58 (0.8)
Diluted Headline Earnings
(Loss) per Share 4.75 4.75 (0.8)
Dividend Per Share (Cents) - - 182.0
Group Company
2007 2007 2006
CONDENSED CONSOLIDATED R`000 R`000 R`000
BALANCE SHEETS
Assets
Non-current assets
Investment in subsidiaries - * -
Current Assets 105,522 105,522 568
Other Assets - - 303
Cash and Cash Equivalents 105,522 105,522 265
Total Assets 105,522 105,522 568
Equity and Liabilities
Capital and Reserves 103,127 103,127 239
Issued Capital 98,309 98,309 94
Distributable Reserves 4,818 4,818 145
Current Liabilities 2,395 2,395 329
Trade and Other Payables 386 386 329
Receiver of Revenue 2,009 2,009 -
Total Equity and Liabilities 105,522 105,522 568
* amount less than R1000
Group Company
2007 2007 2006
CONDENSED CONSOLIDATED R`000 R`000 R`000
STATEMENTS OF CHANGES IN EQUITY
Balance at Beginning of Year 239 239 23,417
Issue of Share Capital 99,740 99,740 -
Rights Issue Expenses (1,525) (1,525) -
Dividends Paid - - (17,108)
Net Profit (Loss) for the Year 4,673 4,673 (6,070)
Balance at 30 June 2007 103,127 103,127 239
Group Company
2007 2007 2006
CONDENSED CASH FLOW R`000 R`000 R`000
STATEMENTS
Net Cash Utilised in Operating Activities (802) (802) (18,275)
Net Cash Inflow from Investing Activities 7,844 7,844 18,540
Capital Raised 99,740 99,740 -
Rights Issue Expenses (1,525) (1,525) -
Net Increase in Cash and
Cash Equivalents 105,257 105,257 265
Cash and Cash Equivalents at
Beginning of Year 265 265 -
Cash and Cash Equivalents at
End of Year 105,522 105,522 265
Accounting Policies & Basis of Preparation
The financial statements have been prepared in accordance with International
Financial Reporting Standards ("IFRS") and IAS 34. No reconciliation between the
previously reported SA GAAP financial information and restated IFRS financial
information has been prepared as the transition to IFRS has had no impact on the
Company.
In terms of section 291 of the Companies Act, 1973, and with the requisite
approval of the Registrar of Companies at the time, the Directors exercised
their discretion not to present consolidated financial statements for the year
ended 30 June 2006, as the information presented would have been unrelated to
the Company`s business and of no value to Shareholders. The comparative figures
for the year ended 30 June 2006 are again presented on this basis for the same
reasons.
The Company`s auditors are obliged to qualify their audit opinion under such
circumstances. However, the qualification is related to the non consolidation
of comparative information only, which is required in terms of IAS 27. See
extract from auditor`s report below.
Capital Raising
During the first half of the year, the Board of Directors implemented the
recapitalisation of the Company by means of a Rights Offer. The Rights Offer
raised approximately R100 million before expenses in order to provide the
Company with capital for investment. 84,600,000 new ordinary shares were
subscribed for in cash at 100 cents per share, and 16,638,000 new redeemable
preference shares were subscribed for at 91 cents per share. The Rights Offer
was fully subscribed and an amount of R99,740,580 was received on 11 August
2006. At the same time, The AfroCentric Empowerment Trust, a trust with leading
black organisations and institutions as its beneficiaries, acquired a 50,1%
shareholding in the Company.
Results and Activities
The profits after tax for the year of R4,673,000 arise exclusively from
interest earned on the Company`s treasury funds. The nature of this activity,
however, does not reveal or reflect the reality of the Company`s extensive
activities during the year, inter alia, in the promotion of several mineral
exploration and prospecting projects in cooperation with the Company`s
business partner, Rio Tinto Plc.
During September 2006, AfroCentric and Rio Tinto Plc jointly announced the
completion of a broad mutual co-operation agreement covering exploration and
mining related opportunities in South Africa and elsewhere in Africa.
The projects presently being promoted in cooperation with Rio Tinto Plc include
inter alia, the assembly, development and consolidation of rights for mineral
resource prospecting in Limpopo, Mpumalanga, North West Province, and Northern
Cape. During the second half of the financial year, two wholly owned subsidiary
companies, AfroCentric Resources (Pty) Limited and AfroCentric Capital (Pty)
Limited were registered in anticipation of the successful outcome of certain or
all of these mining exploration and prospecting ventures.
Furthermore, the company continues to research and consider other investment
opportunities, consistently maintaining the selective criteria prescribed by
the Board Investment Committee.
Prospects
The strategic agreement with Rio Tinto Plc is working well and, notwithstanding
the protracted processes in mining exploration generally and particularly in
the consolidation of mineral rights, the Board remains optimistic about the
progress being made and the potential results which could evolve through this
relationship.
In addition to AfroCentric`s activities in the mining sector, there continues
to be an ample and compelling flow of commercial proposals in the investment
pipeline. Given AfroCentric`s BEE status, its expertise and financial
resources, absent material adverse circumstances in the South African economy,
AfroCentric will in due time finalise a participation in selected commercial
acquisitions and certain mining and exploration projects presently under
assessment.
Dividends
No dividends were declared or paid during the year under review.
Auditor`s Report
For the reasons detailed above our auditors, SizweNtsaluba VSP have issued a
modified opinion on the non-consolidation of prior period financial information
and an unqualified opinion on the current consolidated financial information. An
unmodified opinion is expressed in relation to the company information
statements as presented. The auditor`s opinion letter is available for
inspection at the Company`s registered office.
By Order of the Board
M.I. Sacks, CA(SA), AICPA (ISR)
Company Secretary
Johannesburg
27 September 2007
Directors
N.B. Bam* (Chairperson) N.M.J. Canca* M.S.V. Gantsho* J.M. Kahn**
M.I. Sacks**# Prof. D.I.Swartz* B. Joffe**
* Independent non-executive
** Non-Executive # Company Secretary
Registered Office
FHS House
15 Girton Road
Parktown
2193
Date: 27/09/2007 16:53:01 Produced by the JSE SENS Department.
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