| Mon 29 Oct 2007, 8:36 | | SUL - SAB&T Ubuntu Holdings Limited - Abridged int |
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SUL
SUL
SUL - SAB&T Ubuntu Holdings Limited - Abridged interim financial statements and
withdrawal of cautionary
SAB&T UBUNTU HOLDINGS LIMITED
(formerly Abrina 4166 Limited)
(Incorporated in the Republic of South Africa)
Registration number : 2006/029387/06
JSE Share Code: "SUL"
ISIN Code : ZAE000088837
Abridged Interim Financial Statements for the 6 months ended 31 August 2007
Withdrawal of Cautionary
Headline earnings per share increased by 120%
Basic earnings per share increased by 80%
INCOME STATEMENT Unaudited Reviewed* Audited
% 28 Feb 2007
31 Aug 2007 31 Aug 2006 change
R`000 R`000 R`000
Revenue 61,145 36,760 66 85,459
Operating profit 9,860 4,773 107 10,079
Investment revenue 214 266
Fair value adjustments 434
Loss on disposal of associate (1,280)
Income from equity
accounted investments 114 255
Finance cost (45) (51)
Profit before taxation 8,863 4,773 86 10,983
Taxation (3,003) (1,384) (1,069)
Earnings for the period 5,860 3,389 73 9,914
Attributable to:
Equity holders of the company 5,661 3,174 79 9,829
Minority interest 199 215 (7) 85
Reconciliation of headline earnings:
Earnings for the period 5,661 3,174 9,829
Loss on disposal of associate 1,280
Headline earnings 6,941 3,174 119 9,829
Weighted average
number of shares (`000) 282,300 282,300 ** 282,300
Basic and diluted
earnings per share 2.01cps 1.12cps 80 3.48cps
Headline earnings per share 2.46cps 1.12cps 120 3.48cps
*Extracted from Pre-listing Statement of SUL
**Pro Forma
ABRIDGED BALANCE SHEET
As at 31 August 2007
Unaudited Audited
31 Aug 2007 28 Feb 2007
R`000 R`000
ASSETS
Non-current assets 31,180 28,958
Property, plant and equipment 4,828 1,912
Non-current assets held for sale 989 989
Goodwill 21,701 20,869
Investments in associates 678 2,335
Other financial assets 440 801
Deferred taxation 2,544 2,052
Current assets 41,251 38,341
Trade and other receivables 31,875 22,028
Current tax receivables - 43
Cash and cash equivalents 9,376 16,270
TOTAL ASSETS 72,431 67,299
EQUITY AND LIABILITIES
Shareholders` Funds 57,234 54,196
Share capital and premium 44,103 44,103
Accumulated profit 12,668 9,829
Minority interest 463 264
Non-current liabilities 744 814
Loans from shareholders 744 814
Current liabilities 14,453 12,289
Trade and other payables 8,231 8,618
Taxation 3,935 2,211
Provisions 2,287 1,460
TOTAL EQUITY AND LIABILITIES 72,431 67,299
NAV per share 20.29cps 19.20cps
Tangible NAV per share 12.59cps 11.81cps
Shares in issue at year end (`000) 282,300 282,300
ABRIDGED STATEMENTS OF CHANGES IN EQUITY
For the six months ended 31 Aug 2007
STATEMENT OF CHANGES IN EQUITY
R`000 Balance Profit Dividends Total Balance
as at for the paid changes as at
28 Feb period for the 31 Aug
2007 period 2007
Share Capital 28 - - - 28
Share Premium 44,075 - - - 44,075
Total Share Capital 44,103 - - - 44,103
Retained income 9,829 5,661 (2,823) (2,838) 12,668
Total attributable
to equity holders
of the group 53,932 5,661 (2,823) (2,838) 56,770
Minority interest 264 199 - 199 463
Total equity 54,196 5,860 (2,823) 3,037 57,234
ABRIDGED CASH FLOW STATEMENT
Unaudited Audited
31 Aug 2007 28 Feb 2007
R`000 R`000
Cash flows from operating activities
Cash generated from operations 887 6,275
Interest income 75 146
Dividends received/(paid) (2,684) 120
Finance costs (45) (51)
Tax paid (1,736) (882)
Net cash from operating activities (3,503) 5,608
Cash flows from investing activities
Acquisitions of property, plant and equipment (3,305) (63)
Proceeds from loans receivable 361 (769)
Proceeds from disposal of associates 970 -
Acquisition of business combinations (1,347) 955
Net cash from investing activities (3,321) 123
Cash flows from financing activities
Proceeds on share issue - 11,103
Repayment of other financial liabilities - (17)
Loans from group companies - 17
Repayment of shareholders loan (70) (564)
Net cash from financing activities (70) 10,539
Total cash movement for the period (6,894) 16,270
Cash at the beginning of the period 16,270 -
Total cash at end of the period 9,376 16,270
COMMENTARY
The Board of Directors is pleased to present the unaudited interim financial
results of the Group for the six months ended 31 August 2007.
NATURE OF BUSINESS
SUHL operates in the financial consulting services industry and offers a wide
range of consulting products which includes the following:
Accounting, Taxation and Secretarial Services;
Financial and Management Consulting;
Internal Audit and Corporate Governance Services;
Forensic Investigations and Insolvencies;
Human Capital Placement and Consulting;
Entrepreneurial Business Services; and
Information Technology Services, including the provision of internet
connectivity.
FINANCIAL REVIEW AND PERFORMANCE
The Group generated R61,1m (2006:R36,8m) in revenue for the six months under
review. This represents a 66% increase compared to the period ending 31 August
2006.
The Group generated R5,9m (2006:R3,4m) after tax profits for the six months
under review. This represents a 73% increase compared to the period ending 31
August 2006.
Headline earnings per share and basic earnings per share increased by 120% and
80% respectively from 31 August 2006 to 31 August 2007;
After paying a dividend of R2,8 m and making significant investment in working
capital and enhancing infrastructure, the Group maintained a healthy cash
position with cash balances exceeding R9m.
The analysis below, details the contribution to revenue of the three main
divisions within the Group:
Professional services - 78%
Personnel placements - 16%
IT and related services - 6%
Total 100%
The Group incurred a loss of R1,3m after disposing of it`s 25% investment in BL
Recruitment (Pty) Ltd.
The carrying value of goodwill of R21,7m is considered by the board to be fairly
valued.
PROSPECTS
SUHL has continued to generate solid growth in earnings for the six months under
review and it is expected that the group will continue to achieve reasonable
growth in the second six month period to February 2008.
In order to maintain and grow the SUHL footprint, the Group made the following
acquisitions in the period under review, which both complement the existing
services offered by the Group and are expected to increase SUHL prospects for
growth:
55% in Applebox Accounting (Pty) Ltd, a company involved in bookkeeping and
related services, primarily geared toward the SMME market;
50% of Optimal Digital Technologies (Pty) Ltd, formerly known as El Gondor
Trading 146 (Pty) Ltd, a company involved in software development;
50% of Magnificus Technologies (Pty), a company involved in debt collection
services.
60% of SAB&T Business Innovations Group (North West), a company involved in
business consulting.
In addition, the Group has made the following strategic investments in companies
which complement the existing range of services:
35% in Areth Serfontein and Associates (Pty) Ltd, a company involved in Human
Resources and Industrial Relations Management;
10% of Funanhi Niyothola Solutions (Pty) Ltd, a company involved in Data
Verification for the Financial Services industry.
26% of 4D Employee Benefits (Pty) Ltd, a company providing employee benefit
solutions.
The Group is actively pursuing a number of other opportunities which will
further enhance its earnings capacity.
INTERNATIONAL FINANCIAL REPORTING STANDARDS AND COMPANIES ACT REQUIREMENTS
The interim financial statements were prepared in compliance with International
Financial Reporting Standards (IFRS) and IAS 34 as well as the Companies Act.
ACCOUNTING POLICIES
The accounting policies applied in the preparation of the interim financial
statements are consistent with those applied in the annual financial statements
for the year ended 28 February 2007.
CORPORATE GOVERNANCE
The Board is committed to the promotion of good corporate governance as set out
in King II report on Corporate Governance in South Africa. The Board recognises
the need for adherence to the report and is continuing to implement procedures
in order to ensure that the Group has an effective corporate governance policy
and framework.
DIVIDENDS
No interim dividend has been declared for the period under review.
ACQUISITIONS AND WITHDRAWAL OF STATEMENTS
With reference to the cautionary dated 20 August 2007, the company is pleased to
announce that SUL has agreed, in principle, to terms relating to the following
two acquisitions:
Cortell Consulting SA (Pty) Ltd ("Cortell")
Cortell initially catered for the needs, amongst organizations, for Activity
Based Costing Solutions which led to its development as a specialist Business
Intelligence Solutions Provider. Cortell is a long time business partner of SUHL
and as such the companies share intimate knowledge and to a large extent
subscribe to the same values.
SUL will acquire 50%+1 of Cortell for an acquisition price of R6 million which
will be settled by SUL shares at an issue price of 35 cents per share.
The transaction is subject to due diligence and the signing of final contracts
of agreement.
JMC Accountants ("JMC")
JMC is an accounting practice focusing on SMME`s situated outside London, United
Kingdom.
The rationale for this transaction is SUHL`s strategy to expand its footprint
internationally and to create a base from which to launch its services in
Europe. JMC also provides a narrow range of accounting services and as such is
the ideal platform to introduce SUHL`s skills set and niche services to that
market.
SUHL will acquire JMC`s business, through SAB&T (UK) Limited, a wholly owned
subsidiary of SUL set up specifically in order to enter the UK market. The
acquisition price of GPB110,000 payable in cash in two tranches, 50% upfront and
50% on achievement of certain revenue warranties.
SUHL has also secured the employment of all employees including the vendor to
secure a smooth transition and continuity with the current client base of JMC.
The transaction is subject to the signing of final agreements as well as
exchange control approval being obtained by SUHL.
Withdrawal of cautionary announcement
SUHL is pleased to announce that the cautionary dated 20 August 2007 is hereby
withdrawn.
For and on behalf of the Board:
J van Rooyen B. Adam
Chairman Chief Executive Officer
CORPORATE INFORMATION
Registered Office:
119 Witch-Hazel Avenue
Highveld Technopark
Centurion
0046
Postal address
P.O. Box 10512
Centurion
0046
Transfer Secretary:
Computershare Investor Services 2004 (Pty) Ltd
Registration number: 2004/003647/07
70 Marshall Street
Johannesburg, 2001
Company Secretary:
C. de Beer
119 Witch-Hazel Avenue
Highveld Technopark, Centurion, 0046
Corporate and Designated Advisors:
The River Group
Parc Nouveau Building
225 Veale Street, Brooklyn
Pretoria, 0181
Auditors:
PKF (Pretoria) Incorporated
105 Club Avenue, Waterkloof Heights
Pretoria, 0181
P O Box 98060
Waterkloof Heights, 0065
Directors:
J van Rooyen* (Chairman)
F Jakoet*
B Adam
N Singh
S Makamure
* Non- Executive
Date: 29/10/2007 08:36:01 Produced by the JSE SENS Department.
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