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BJM
BJM
BJM - Barnard Jacobs Mellet Holdings - Summarised Audited Results For The Year
Ended 31 March 2008 and dividend declaration
BARNARD JACOBS MELLET HOLDINGS LIMITED
Registration number: 1995/004798/06
Incorporated in the Republic of South Africa
ISIN: ZAE000014262
JSE code: BJM ("the Group" or "BJM")
Summarised audited results for the year ended 31 March 2008
- Revenue up 27%
- Headline earnings per share up 9%
- Full year ordinary dividend per share 31c
Commentary
Operations
Headline earnings increased by 5% to R54 million while headline earnings per
share increased by 9% to 67 cents per share. Net asset value rose by 13% from
399 cents per share to 450 cents per share.
Revenue is 27% higher at R519 million while total costs are 36% higher at R436
million. A major component of this increase relates to the reallocation of
interest received and interest paid due to the requirements of IFRS while the
balance of the increase in costs is attributable to variable cost increases in
manpower and settlement charges.
Normalised operational earnings of R56,4 million are attributable to the
continued retention of highly qualified talent able to meet the challenges of a
changing industry from a cohesive and focused platform. Market conditions have
been tough, but the continued support from our existing and growing client base
has sustained the Group through these times. Our highly rated research, sales
and execution product comprises the core pillar upon which BJM`s business model
is built, and with continued growth in assets under administration from R29
billion to R32 billion, our Private Client Services division has become a major
contributor to Group revenue and profit. Manpower costs increased in line with
industry pressure and a larger staff complement.
Gross equity brokerage rose by 22% to R350 million, notwithstanding continued
pressure on brokerage commission rates during the year. For the second
consecutive year, this growth in brokerage is lower than market turnover growth
and reflects a decreasing proportion of market volume being agency transactions
as opposed to proprietary trade, which BJM does not engage in. The fixed income
markets remained subdued for yet another year but the Group`s activity in this
area remained profitable with a quality product provided to both institutional
and retail clients.
Assets under administration within the retail operation of the Group have grown
by 11% to R32 billion. BJM Private Client Services operates from five offices in
South Africa with the intention of extending these to other areas in the future.
The acquisition of Quaestor Capital, a corporate finance boutique, in the
previous financial year turned out hugely successful with this business unit
having been turned around in a profit centre from previous loss-making
activities.
The Company continued with its share buy back programme during the course of the
year, and currently holds the maximum of 10% of its shares in treasury. The BJM
Share Incentive Trust holds 3,5% of the Company`s shares allocated to senior
employees who have elected to receive stock in lieu of remuneration on a time
deferred basis.
Prospects
Global economic and market conditions have been difficult to forecast since the
onset of the credit crisis. We remain confident of our business model, but will
manage the Group according to the conditions as they prevail.
Dividend
Notice is hereby given that the Board of directors has declared a final ordinary
dividend of 17 cents per share in respect of the year ended 31 March 2008.
Dividend pay date Monday, 7 July 2008
Last day to trade in Friday, 27 June 2008
Ex-dividend date Monday, 30 June 2008
Record date Friday, 4 July 2008
Share certificates may not be dematerialised or rematerialised between Monday,
30 June 2008 and Friday 4 July 2008, both days inclusive.
Basis of preparation
The accounting policies and methods of computation used in the preparation of
these results comply with the recognition and measurement basis of the full IFRS
and the presentation and disclosure requirements of IAS 34. Except for the
adoption of IFRS 7, Circular 8/2007 and IFRIC 11, the accounting policies and
methods of computation are consistent in all material respects with those
adopted for the year ended 31 March 2007.
Auditors` report
The auditors, KPMG Inc, issued their opinion on the Group financial statements
for the year ended 31 March 2008. A copy of the auditors` unqualified report is
available for inspection at the Company`s registered office.
John Bester Andile Mazwai
Chairman Chief Executive Officer
Johannesburg 11 June 2008
CONSOLIDATED INCOME STATEMENT
for the year ended 31 March 2008
2008 2007
R`000 R`000
Operating income 474 569 371 421
Interest income 44 316 35 976
Revenue 518 885 407 397
Profit on sale of investments 156 71 938
Total income 519 041 479 335
Operating costs (419 050) (318 281)
Operating profit before finance costs 99 991 161 054
Finance costs (17 043) (1 267)
Income from investments - 33
Profit before tax 82 948 159 820
Income tax expense (28 709) (46 864)
Profit for the year 54 239 112 956
Earnings per share
Basic earnings per share (cents) 67,6 136,1
Diluted earnings per share (cents) 57,7 118,1
CONSOLIDATED BALANCE SHEET
as at 31 March 2008
2008 2007
R`000 R`000
Assets
Non-current assets
Equipment 22 531 5 955
Investments 740 4 081
Intangible assets 15 658 12 678
Deferred tax assets 12 625 10 664
Total non-current assets 51 554 33 378
Current assets
Amounts receivable in respect of stockbroking 8 172 137 7 234 741
activities
Margin on derivative financial instruments 5 832 31 080
Trade and other receivables 33 733 60 111
Listed securities holdings 993 422 548 695
Unlisted promissory notes - 5 353
Current tax assets 2 303 -
Cash and cash equivalents 399 068 189 488
Total current assets 9 606 495 8 069 468
Total assets 9 658 049 8 102 846
Equity and liabilities
Equity
Share capital 762 833
Share premium 52 001 87 856
Non-distributable reserves 57 725 38 642
Retained earnings 232 689 205 008
Total equity 343 177 332 339
Non-current liabilities
Loans, borrowings and deferred payments 56 880 3 239
Deferred tax liabilities 217 2 710
Total non-current liabilities 57 097 5 949
Current liabilities
Amounts payable in respect of stockbroking 8 118 475 7 099 758
activities
Listed securities sold short 1 012 821 554 478
Trade and other payables 116 479 88 011
Current tax liabilities 9 549 7 223
Shareholders for dividends 201 194
Bank overdraft 250 14 894
Total current liabilities 9 257 775 7 764 558
Total equity and liabilities 9 658 049 8 102 846
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 March 2008
Non-dis-
Share Share tributable Retained
Capital premium reserves earnings Total
R`000 R`000 R`000 R`000 R`000
Balance at 1 833 96 382 41 637 190 764 329 616
April 2006
Exchange
differences in
translating - - 26 461 - 26 461
foreign
operations
Equity-settled
share-based
payments to - - 4 652 - 4 652
employees
IFRS 2
recognition of
BEE
credential - - 606 - 606
Fair-value
adjustment on
available-for- - - 23 800 - 23 800
sale instruments
Profit realised
on sale of
available-for- - - (58 514) - (58 514)
sale instruments
Treasury stock (35) (18 916) - - (18 951)
acquired
Treasury stock 35 10 390 - - 10 425
issued
Profit for the - - - 112 956 112 956
year
Dividends paid - - - (98 712) (98 712)
Balance at 833 87 856 38 642 205 008 332 339
1 April 2007
Exchange
differences in
translating - - 17 017 - 17 017
foreign
operations
Equity-settled
share-based
payments to - - 2 727 - 2 727
employees
IFRS 2
recognition of
BEE
credential - - 606 - 606
Additional
settlement on
BEE
transaction - - 122 - 122
Fair-value
adjustment on
available-for- - - (6) - (6)
sale instruments
Profit realised
on sale of
available-for- - - (1 383) - (1 383)
sale instruments
Treasury stock (105) (47 727) - - (47 832)
acquired
Treasury stock 34 11 872 - - 11 906
issued
Profit for the - - - 54 239 54 239
year
Dividends paid - - - (26 558) (26 558)
Balance at 762 52 001 57 725 232 689 343 177
31 March 2008
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 March 2008
2008 2007
R`000 R`000
Cash generated from/(utilised in) operating
activities 211 241 (258 408)
Cash (utilised in)/generated from investing
activities (17 247) 56 626
Cash generated from/(utilised in) financing
activities 13 255 (6 362)
Net increase/(decrease) in cash and cash 207 249 (208 144)
equivalents
Cash and cash equivalents at beginning of year 174 594 356 277
Effect of exchange rate fluctuations 16 975 26 461
Cash and cash equivalents at end of year 398 818 174 594
1. Note to the cash flow statement
Cash generated from/(utilised in) operating
activities
Decrease/(increase) in cash tied up in 81 321 (82 251)
settlements
Decrease/(increase) in listed securities 21 385 (61 675)
Taxation paid (32 794) (51 210)
Dividends paid (26 549) (98 639)
Profit before tax adjusted for non-cash items 84 837 94 374
Other working capital changes 83 041 (59 007)
Cash generated from/(utilised in) operating
activities 211 241 (258 408)
Results per share
Weighted average number of ordinary shares
(`000) 80 255 82 982
Headline earnings per share (cents) 67,3 61,8
Diluted headline earnings per share (cents) 57,4 53,7
Dividends per share (cents)
- Ordinary 29,0 52,0
- Special - 57,1
Net asset value per share (cents) 450,4 399,0
Reconciliation of headline earnings
Basic earnings 54 239 112 956
Profit on disposal of equipment (114) 11
Liquidation distribution received - (196)
Profit on sale of investments (156) (71 938)
Total tax effect of adjustments 64 10 485
Headline earnings 54 033 51 318
Diluted earnings- and headline earnings per share are calculated inclusive of
the shares in the Share Incentive Trust and the BEE transaction.
SEGMENTAL ANALYSIS
Stock Corporate Settlement and
broking finance prime broking
Business segments R`000 R`000 R`000
2008
Revenue from external 482 341 22 302 13 866
customers
Inter-segment revenue 7 262 718 19 813
Total income 489 603 23 020 33 679
Segment result 91 992 10 878 13 839
Finance costs
Income tax expense
Profit for the year
Segment assets 6 631 182 12 255 2 553 413
Segment liabilities 6 292 123 7 218 2 543 639
Non-cash items
Depreciation 2 098 98 191
Amortisation of intangible - - -
assets
IFRS 2 recognition of BEE - - -
credential
2007
Revenue from external 386 575 3 872 18 320
customers
Inter-segment revenue 6 415 110 3 826
Total income 392 990 3 982 22 146
Segment result 90 222 (215) 4 652
Finance costs
Income from investments
Income tax expense
Profit for the year
Segment assets 5 762 412 4 378 2 124 561
Segment liabilities 5 469 447 6 656 2 116 963
Non-cash items
Depreciation 1 568 40 212
Amortisation of intangible - - -
assets
IFRS 2 recognition of BEE - - -
credential
SEGMENTAL ANALYSIS (continued)
Other Eliminations Consolidated
Business segments R`000 R`000 R`000
2008
Revenue from external customers 532 - 519 041
Inter-segment revenue 41 120 (68 913) -
Total income 41 652 (68 913) 519 041
Segment result 5 617 (22 335) 99 991
Finance costs (17 043)
Income tax expense (28 709)
Profit for the year 54 239
Segment assets 743 605 (282 406) 9 658 049
Segment liabilities 580 137 (108 245) 9 314 872
Non-cash items
Depreciation 434 - 2 821
Amortisation of intangible 1 259 - 1 259
assets
IFRS 2 recognition of BEE 606 - 606
credential
2007
Revenue from external customers 70 568 - 479 335
Inter-segment revenue 28 612 (38 963) -
Total income 99 180 (38 963) 479 335
Segment result 79 212 (12 817) 161 054
Finance costs (1 267)
Income from investments 33
Income tax expense (46 864)
Profit for the year 112 956
Segment assets 366 385 (154 890) 8 102 846
Segment liabilities 207 372 (29 931) 7 770 507
Non-cash items
Depreciation 353 - 2 173
Amortisation of intangible 384 - 384
assets
IFRS 2 recognition of BEE 606 - 606
credential
Directors
JA Bester (Chairman), HSC Bester, AM Mazwai* (CEO), AR Martin,
SM Mellet, MS Rebe*, TS Seopa *Executive
Company secretary
L Wilson
Registered office
Barnard Jacobs Mellet House
24 Fricker Road, Illovo Corner,
Illovo, 2196
Transfer secretaries
Link Market Services South Africa (Pty) Limited
11 Diagonal Street
Johannesburg, 2001
www.bjm.co.za
Date: 11/06/2008 17:00:01 Produced by the JSE SENS Department.
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