| Wed 27 Feb 2008, 8:07 | | LMID - Lereko - Unaudited interim results for the period ended 31 December 2007 |
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JSE LMID
LMID
LMID - Lereko - Unaudited interim results for the period ended 31 December 2007
LEREKO MOBILITY (PROPRIETARY) LIMITED
Incorporated in the Republic of South Africa
Registration number: 2004/034154/07
Share code: LMID
ISIN: ZAE000067229
("Lereko Mobility")
Unaudited interim results for the period ended 31 December 2007
CONDENSED BALANCE SHEET
at 31 December 2007
31 Dec 2007 25 Dec 2006 25 June 2007
R`000 R`000 R`000
Assets
Non-current asset
14 516 617 preferred ordinary 1 515 244 2 393 064 2 054 101
shares in Imperial Holdings
Limited
Current assets
Cash and cash equivalents 9 932 8 150 7 497
Current account with shareholder 40 - 385
Total assets 1 525 216 2 401 214 2 061 983
Equity and liabilities
Capital and reserves
Share capital 2 040 2 040 2 040
Non-distributable reserve 125 860 125 860 125 860
Distributable reserve (275 952) 357 266 145 314
(148 052) 485 166 273 214
Non-current liabilities
Interest-bearing borrowings 763 534 749 656 740 556
Financial liabilities 734 355 869 079 785 953
Deferred tax 121 606 243 231 194 110
1 619 495 1 861 966 1 720 619
Current liabilities
Current portion of interest- 53 773 53 160 68 126
bearing borrowings
Taxation - 797 -
Trade and other payables - 125 24
53 773 54 082 68 150
Total equity and liabilities 1 525 216 2 401 214 2 061 983
CONDENSED INCOME STATEMENT
for the period ended 31 December 2007
31 Dec 2007 25 Dec 2006 25 June 2007
R`000 R`000 R`000
Dividends received - - 38 832
Operating expenses (55) (159) (866)
Net fair value adjustments (448 427) 364 520 108 683
Net financing costs (45 212) (43 429) (87 586)
(Loss)/Profit before taxation (493 694) 320 932 59 063
Taxation 72 428 (83 723) (33 806)
(Loss)/Profit after taxation (421 266) 237 209 25 257
CONDENSED STATEMENT OF CHANGES IN EQUITY
for the period ended 31 December 2007
Non-
Issued distributable Distributable
capital reserve reserve Total
R`000 R`000 R`000 R`000
Issue of share 2 040 2 040
capital
Fair value
adjustment on
call option (361 455) (361 455)
Fair value
adjustment on
preferred ordinary 487 315 487 315
shares
Profit for the 120 057 120 057
year
Balance as at
25 June 2006 2 040 125 860 120 057 247 957
Profit for the 25 257 25 257
year
Balance as at
25 June 2007 2 040 125 860 145 314 273 214
Loss for the (421 266) (421 266)
period
Balance as at
31 December 2007 2 040 125 860 (275 952) (148 052)
CONDENSED CASH FLOW STATEMENT
for the period ended 31 December 2007
31 Dec 2007 25 Dec 2006 25 June 2007
R`000 R`000 R`000
Cash flows from operating
activities
Cash generated from/(utilised in) (80) (163) 70 166
operating activities
Net financing costs (45 212) (43 429) (87 586)
Tax paid (75) (1 623) (1 624)
Net cash flows from operating (45 367) (45 215) (19 044)
activities
Cash flows from investing
activities
Investments - - -
Capital distribution 38 832 38 832 38 832
Current account with shareholder 345 - (386)
Net cash flows from investing 39 177 38 832 38 446
activities
Cash flows from financing
activities
Capital raised - - -
Loans raised/(repaid) 8 625 8 638 (17 800)
Net cash flows from financing 8 625 8 638 (17 800)
activities
Increase in cash and cash 2 435 2 255 1 602
equivalents
Cash and cash equivalents at the 7 497 5 895 5 895
beginning of the period
Cash and cash equivalents at the
end of the period
9 932 8 150 7 497
INTRODUCTION
In June 2005 Lereko Mobility (Proprietary) Limited ("the company") concluded a
black economic empowerment transaction with Imperial Holdings Limited
("Imperial").
In terms of this transaction the company acquired 14 516 617 preferred ordinary
shares from Imperial which are unlisted and will pay a fixed annual dividend of
535 cents per share for the five years up to and including 30 September 2010.
Thereafter they will be converted into ordinary shares and will be listed on the
JSE Limited ("JSE") ranking pari passu with Imperial`s other ordinary shares.
To fund the acquisition of these shares the company raised senior funding by
issuing to financial institutions preference shares for R377 million and 14 533
096 debentures for R458 million. The debentures are unsecured, subordinate to
the claims of the preference shares and listed on the JSE under the Asset Backed
Securities: Other Securities sub-sector.
The debenture holders are entitled to a coupon of 5% per annum. The debentures
will be redeemed on 1 October 2010 at R41,50 per debenture plus an equity linked
bonus being 25% of the extent to which Imperial`s share price exceeds R145,25 on
that date.
Imperial facilitated the transaction with vendor finance by issuing preferred
ordinary shares at their par value of 4 cents, which discount had a value of
R598 million. This will entitle Imperial to a call option from the company for
sufficient of Imperial`s ordinary shares to be delivered on 15 June 2015 to
settle this amount plus a return which will amount to a minimum of R1 945
million and a maximum of R2 291 million. This liability is subordinated to the
claims of both the preference share and debenture funding.
BASIS OF PREPARATION
The preliminary unaudited financial statements have been prepared in accordance
with IAS 34 - Interim Financial Reporting and are a summary of the company`s
unaudited financial statements. The accounting policies and methods of
computation used in the preparation of the results are consistent, in all
material respects, with those used in the annual financial statements for the
year ended 25 June 2007, which are compliant with International Financial
Reporting Standards.
RESULTS
The company has posted a net loss after tax amounting to R421 million. This
takes into account the decrease in value of the Imperial shares during the year
reduced by the financial liabilities, which have been fair valued and expensed.
The financial liabilities are payable to the debenture holders for the equity
linked bonus and to Imperial for the vendor finance.
The funding costs payable to the preference shareholders and the debenture
holders are included in the interest expense.
The equity of the company now stands at a deficit of R148 million, however
Imperial`s call option is subordinated to the claims of the preference and
debenture holders. The preferred ordinary shares have a market value at the
reporting date of R1 515 million.
The company has changed its financial year-end from 25 June to 30 June and will
for this interim reporting period use the end of December for reporting
purposes.
There have been no facts or circumstances of a material nature that have
occurred between the accounting date and the date of this report other than the
fact that Imperial`s share price has reduced since 31 December 2007.
INTEREST ON DEBENTURES
Notice is hereby given that an interest payment of 103,75 cents per debenture is
payable to debenture holders recorded in the registers of the company at the
close of business on Friday, 28 March 2008.
In compliance with the requirements of STRATE, the electronic settlement and
custody system used by the JSE, the company has determined the following salient
dates for the payment of the interest:
2008
Last day to trade
cum interest payment Wednesday, 19 March
Debentures commence trading
ex interest payment Thursday, 20 March
Record date Friday, 28 March
Payment date Monday, 31 March
Debenture certificates may not be dematerialised/rematerialised between
Thursday, 20 March 2008 and Friday, 28 March 2008, both days inclusive.
On Monday, 31 March 2008, the interest payment will be electronically
transferred to the bank accounts of certificated debenture holders that utilise
this facility. In respect of those who do not, cheques dated 31 March 2008 will
be posted on or about that date. Debenture holders who have dematerialised their
shares will have their accounts, held at their CSDP or broker, credited on
Monday, 31 March 2008.
RA Venter
Company secretary
By order of the Board
27 February 2008
Bedfordview
DIRECTORS
N Gwagwa, H Brody, AH Mahomed, PS Molefe, MV Moosa
COMPANY SECRETARY
RA Venter
Business address and registered office
2nd Floor, 5 Commerce Square
39 Rivonia Road, Sandhurst, 2121
SHARE TRANSFER SECRETARIES
Computershare Investor Services 2004
(Proprietary) Limited
70 Marshall Street, Johannesburg, 2001
SPONSOR
Merrill Lynch SA (Proprietary) Limited
138 West Street, Sandown, Sandton, 2196
Date: 27/02/2008 08:07:16 Produced by the JSE SENS Department.
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