| Wed 5 Dec 2007, 8:13 | | SKJ - Sekunjalo Investments - Sekunjalo Consolidates Gains And Delivers Another |
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SKJ
SKJ
SKJ - Sekunjalo Investments - Sekunjalo Consolidates Gains And Delivers Another
Set Of Excellent Financial Results
SEKUNJALO INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number: 1996/006093/06)
ISIN: ZA000017893
Share Code: SKJ
PRESS RELEASE
SEKUNJALO CONSOLIDATES GAINS AND DELIVERS ANOTHER SET OF EXCELLENT FINANCIAL
RESULTS
(Full results and commentary live on SENS)
JSE-listed Sekunjalo Investments Limited ("Sekunjalo") today announced a 78%
increase in headline earnings (R117m), a 107% increase in operating profits
(R186m), and a 41% increase in headline earnings per share (29 cents) for the 12
months ended 31 August 2007.
Mo Kajee, CEO of Sekunjalo said that he was satisfied with the performance of
the Group. "We have demonstrated that Sekunjalo can deliver the results and most
of our investments have performed very well in the last financial year. These
include our investments in the Technology and Innovation Driven sectors such as
ICT, and in the Manufacturing and Resource Driven Investments such as fishing."
Sekunjalo is rapidly gaining in stature as a successful, diversified,
financially driven Group, which is innovative, with an aggressive strategy to
achieve growth in the value of its investments. This was confirmed when
Sekunjalo was recognised as a Global Growth Company, one of the founding 125
New Champions, by the World Economic Forum.
Mo Kajee said, "We have seen that the strategic shift made two years ago to
diversify into Technology and Innovation Driven Investments has been the correct
move for Sekunjalo. There are increasing opportunities in areas which are driven
by innovation such as technology and communications."
Premier Fishing had an excellent year largely due to good catches in both West
and South Coast Rock Lobster, and buoyant demand for South African lobster and
Squid in international markets. Premier Fishing`s low gearing and excellent
balance sheet has positioned the company for future organic and acquisitive
growth.
The Group`s aquaculture division, consisting primarily of its Atlantic Fishing
Enterprises ("AFE") Gansbaai abalone farm, had an excellent year, validating the
decision to expand in this sector. Abalone aquaculture has been identified as an
area of potential growth and development due to the decimation of wild abalone,
reinforced by recent moves by the authorities to close the wild abalone sector.
Future prospects are therefore, promising as South African abalone continues to
be highly prized abroad, particularly in the Far East.
The company`s ICT interests housed in Sekunjalo Informatics and
Telecommunications Africa ("SITCA") produced consistent results, positioning
SITCA for a proposed listing on the JSE in the second half of 2008, market
conditions permitting.
The four main operating ICT companies - Synergy, FIOS, Health System
Technologies (HST) and Saratoga performed well. Both Synergy and Saratoga
received prestigious ICT awards. Synergy was named the Cognos South African
Reseller Partner of the Year whilst Saratoga was acknowledged as a leading
innovator of mobile software when it won a DTI award for its `Shine` Initiative
project. `Shine` is a DTI-sponsored initiative to create service delivery by
creating a field worker productivity suite for local government and utilities.
The Group`s financial services interest is held through its wholly owned
subsidiary Sekunjalo Capital (Pty) Ltd. Sekunjalo Financial Services has
developed an integrated electronic financial services platform to enable it to
distribute of its products. This division is currently in the process of
implementing an agreement with one of the larger SA trade unions. During the
past year Sekunjalo sold its shareholding in Sekunjalo Capital International
(Pty) Ltd in order for Sekunjalo Capital to focus on its core South African
business.
The Healthcare division, Sekunjalo Health Care ("SHC") has produced
unsatisfactory results due largely to continued losses in the Pharmaceuticals
business unit. Significant contracts have been secured in an open-tender process
in the public sector for most SHC business units. However, SHC has not been able
to penetrate the private sector, which has had an impact on this division.
The group`s investment in Biotechnology, Bioclones, is housed in African
Biotechnological and Medical Innovation Investments ("ABMI") a wholly owned
subsidiary of Sekunjalo. During the year under review, Bioclones concluded a
licensing and technology transfer agreement with Solidago AG, a Swiss based
company that develops and licenses strains of micro-organisms and cell lines.
This was the first time Solidago AG gave rights to this technology and cell
lines to a company based in the developing world - which made it a first for
South Africa and a first for Africa. Bioclones is exploring the possible listing
on two international Stock Exchanges in New York and London, market conditions
permitting. The Biotechnology sector continues to afford significant world wide
growth opportunities.
Commenting on the prospects for the Group, Mo Kajee said that he was confident
that the group would achieve significant expansion as planned, through
acquisition and organic growth. He said, "The effective partnerships formed with
multinational companies in ICT, Fishing, Biotechnology and Health Care augur
well in this regard. In addition, in line with the Group`s strategy, we will
pursue larger BEE transactions by taking minority interests of up to 30%."
Ends - contact numbers follow
Contact details: Sekunjalo Investments Limited
Mo Kajee, CEO
Tel: 2721 702 7700
Fax: 2721 702 7744
email: mo@sekunjalo.com
Zenariah Barends: Executive Director: Sekunjalo Corporate Services
Tel: 2721 702 7700
Fax: 2721 702 7744
email: zenariahb@sekunjalo.com
Date: 05 December 2007
Date: 05/12/2007 08:13:27 Produced by the JSE SENS Department.
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