| Wed 2 Apr 2008, 13:12 | | ABO - Absolute - Unaudited Interim Results For The Six Month Period |
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ABO
ABO
ABO - Absolute - Unaudited Interim Results For The Six Month Period
Ended 31 December 2007
ABSOLUTE HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1986/004649/06)
Share code: ABO & ISIN: ZAE000062998
("Absolute" or "the company")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2007
GROUP BALANCE SHEETS
Unaudited Audited Unaudited
31 Dec 2007 30 June 2007 31 Dec 2006
ASSETS R`000 R`000 R`000
Non-current assets 16 248 16 245 16 475
Property, equipment and 404 481 883
vehicle
Mineral rights 9 797 9 717 9 545
Goodwill 6 047 6 047 6 047
Current assets 2 808 4 631 6 964
Cash and cash equivalents 233 238 225
Inventories 2 256 3 327 6 001
Short term receivables 17 107 104
Trade and other 302 959 634
receivables
Assets held for sale - 3 710 3 780
Total assets 19 056 24 586 27 219
EQUITY AND LIABILITIES
Capital and reserves 1 569 4 817 8 914
Non-current liabilities 10 824 6 217 2 159
Long-term liabilities 10 809 6 202 2 144
Deferred taxation 15 15 15
Current liabilities 6 663 9 954 12 749
Short-term loans 1 32 84
Bank overdraft 4 836 5 009 4 805
Trade and other payables 1 821 4 908 7 855
Taxation payable 5 5 5
Liabilities associated - 3 598 3 397
with assets held for sale
Total equity and 19 056 24 586 27 219
liabilities
Number of shares in issue 739 708 739 708 739 708
(`000)
Net asset value per share 0.21 0.65 1.21
(cents)
Net tangible asset value (1.93) (1.48) (0.89)
per share (cents)
GROUP INCOME STATEMENTS
Unaudited Audited Unaudited
Six months Year Six
ended ended months
31 Dec 2007 30 Jun ended
R`000 2007 31 Dec
R`000 2006
R`000
Revenue 2 443 13 934 9 495
Other income 66 621
Cost of sales and operating (5 263) (18 077) (10 907)
expenses
Net operating (loss)/profit (2 754) (3 522) (1 412)
Loss on sale of fixed (42) - -
assets
Impairment loss on non - (70) -
current asset held for sale
Loss from operations (2 796) (3 592) (1 412)
Finance charges (458) (1 427) (495)
Interest income 6 28 8
Loss before taxation (3 248) (4 991) (1 899)
Taxation - - -
Net loss for the period (3 248) (4 991) (1 899)
from continuing operations
Discontinued operations
Loss for the year from - (1 005) -
discontinued operations
Net loss for the period (3 248) (5 996) (1 899)
Reconciliation between loss
and headline loss
Net loss for the period (3 248) (5 996) (1 899)
Loss on disposal of fixed 42 215 -
assets
Decrease in value of non - 70 -
current asset held for sale
Headline loss (3 206) (5 711) (1 899)
Weighted average shares in 739 708 739 708 739 708
issue (`000)
Loss per share for period (0.44) (0.81) (0.25)
(cents)
Headline loss per share for (0.43) (0.77) (0.25)
period (cents)
ABRIDGED CASH FLOW STATEMENTS
Unaudited Audited Unaudited
Six months Year Six moths
ended ended ended
31 Dec 2007 30 Jun 2007 31 Dec 2006
R`000 R`000 R`000
Net cash outflow from (4 480) (4 717) (424)
operating activities
Net cash inflow/(outflow) 3 580 (84) 17
from investing activities
Net cash from financing 1 069 4 270 67
activities
Net increase/(decrease) in 169 (531) (340)
cash and cash equivalents
Cash and cash equivalents (4 771) (4 240) (4 240)
- beginning of period
Cash and cash equivalents (4 602) (4 771) (4 580)
at end of period
STATEMENT OF CHANGES IN EQUITY
Share Share Accumulated Total
capital premium losses
R`000 R`000 R`000 R`000
Balance at 30 June 7 397 77 985 (74 570) 10 813
2006
Net loss for the - - (5 996) (5 996)
period
Balance at 30 June 7 397 77 985 (80 566) 4 817
2007
Net loss for the - - (3 248) (3 248)
period
Balance at 31 7 397 77 985 (83 814) 1 569
December 2007
COMMENTARY
The directors present the unaudited results for the six month period ended
31 December 2007 in accordance with IAS34 - Interim Financial Reporting. The
accounting policies adopted for purposes of this report comply, and have
been consistently applied in all material respects, with International
Financial Reporting Standards. These interim results have not been audited
or reviewed by the Company`s auditors.
RESULTS
The group has effectively completed its transition to a mining company as
the tile retail operation scales down relative to the mining activity. As at
the date of this report, the group employs approximately 52 employees, 42 of
which are in the mining division and the remainder in the retail operations.
Full scale mining activities commenced at the Diamond Quartzite Quarry in
the second quarter of the financial year following the granting of the
mining right, with revenues expected before the end of June this year due to
the commencement of exports to Europe. A second mining operation will
commence before the end of the financial year, as elaborated further in the
Picture Stone announcement below.
Revenue from the retail sites is below expectation as a result of delays in
finalising the new supply agreement. Further expenses have been incurred in
the streamlining of the retail division prior to its disposal, which should
be completed before the end of the year. The loss for the year is
attributable to the retail division as discussed, mining expenditure, final
expenses incurred in the disposal of the property known as Stand 315 and
other head office costs.
SEGMENTAL ANALYSIS
31 December 2007
R`000 Retail Head Property Mining Total
Office
Revenue 2 443 - - - 2 443
Net Loss (1 650) (484) (199) (915) (3 248)
Mining costs are no longer capitalised as mining operations have commenced.
SUBSEQUENT EVENTS
Qinisele Resources
The Board has approved the appointment of Qinisele Reources as mining
consultants and advisors to assist the company in procuring, acquiring and
developing junior mining exploration projects. Messrs Dennis Tucker and
Danie van den Bergh are actively involved in the support of the existing
mining projects as well as the development of new opportunities for the
group.
Picture Stone Acquisition
As previously announced, the mining holding company for the group was
renamed Lenopodi (Proprietary) Limited (formerly Absolute Colleccions
(Proprietary Limited) ("Lenopodi`). Lenopodi acquired the entire issued
share capital of Niemoller Marmer (Edms) Beperk ("Niemoller Marmer") on 31
March 2008 from R G Niemoller (Proprietary) Limited for R2 000 000 (two
million Rand) which will be settled through the issue of shares by Absolute
at 3 cents per share. Niemoller Marmer holds a valid mining and prospecting
right over a sandstone deposit in the Northern Cape Province, known as
Picture Stone. The company is in the process of finalizing the conversion of
the mining right to a new order mining right and operations at the site are
planned to commence before June this year. The majority of the product to be
mined is earmarked for the export market. No goodwill will arise on the
acquisition as the full cost will be allocated to mining rights.
Pro form financial effects of the acquisition
The table below summarises the financial effects of the acquisition on the
unaudited results presented above for the period ended 31 December 2007. The
financial effects are the responsibility of the directors and have been
prepared for illustrative purposes only, to show the possible financial
effect if the acquisition had been effective on 01 July 2007 for income
statement purposes and as at 31 December 2007 for balance sheet purposes.
The pro forma financial effects, because of their nature, may not give a
true reflection of the financial position, the statement of changes in
equity, the results of operations or cash flows of Absolute.
Before After % Change
Weighted average shares in 739 708.00 806 374.67 9.01%
issue (`000)
Earnings per share 0.21 0.44 110.76%
ordinary share (cents)
Headline earnings per -1.93 -1.77 8.28%
ordinary share (cents)
Shares in issue at period 739 708.00 806 374.67 9.01%
end (`000)
Net asset value per share -0.44 -0.40 8.46%
(cents)
Net tangible asset value -0.43 -0.40 7.54%
per share (cents)
Assumptions:
1. The "Before" column is extracted from the company`s published unaudited
results for the period ended 31 December 2007 as above.
2. The "After" column shows the pro forma effects of the acquisition of
Niemoller Marmer as though the acquisition had been in effect from 01
July 2007. Niemoller Marmer did not trade for the six months to 31
December 2007.
3. No amortisation of intangibles or impairment of goodwill has been
assumed.
4. The shares issued for the consideration are assumed to have been issued
as at 01 July 2007.
Rights Offer
The initiation of the Rights Offer as previously announced has been delayed
due to the proposed issue of shares as discussed above. This issue, along
with others, was negotiated by management in order to settle certain
obligations of the group and shall be completed shortly. The terms of the
Rights Offer are now expected to be in the ratio of 1 (one) rights offer
shares for every 4 (four) share held in the company, at an issue price of 6
(six) cents per rights offer share. Shareholders are reminded of previous
announcements regarding the proposed Rights Offer. Proceeds are intended to
capitalise the two main mining projects as well as provide the company with
some working capital. A formal terms announcements will be made and the
requisite circular will be distributed in due course.
DIVIDENDS PAID AND RECOMMENDED
No dividends were paid or declared during the accounting period under review
and none are recommended at this stage (2006: nil).
SHARE CAPITAL
There have been no shares issues during the period under review.
DIRECTORS
There were no changes to the board during the period.
By order of the board
M K Diale G Sequeira
2 April 2008
Company Secretary and Registered Office
Arcay Client Support (Proprietary) Limited (Registration
number 1998/025284/07)
Arcay House, Number 3 Anerley Road, Parktown,
Johannesburg (PO Box 62397, Marshalltown, 2107)
Directors
MK Diale* Chairman, AM Sher* Deputy Chairman,
JJ Serfontein*, GP Sequeira
(* Non-executive)
Sponsor Transfer Office
Arcay Moela Sponsors Computershare Investor
(Proprietary) Limited Services (Proprietary)
Limited
Date: 02/04/2008 13:12:51 Produced by the JSE SENS Department.
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