| Thu 12 Jun 2008, 11:30 | | COL - Colliers South Africa Holdings - Reviewed Preliminary Results |
|
COL
COL
COL - Colliers South Africa Holdings - Reviewed Preliminary Results
for the year ended 29 February 2008
Colliers South Africa Holdings Limited
(formerly Quyn Holdings Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1998/012245/06)
(Share code: COL ISIN: ZAE000099461)
("Colliers")
Reviewed Preliminary Results for the year ended 29 February 2008
UP 21%
ATTRIBUTABLE PROFIT
R41 million
(2007: R34 million)
UP 54%
NET ASSET VALUE
R118 million
(2007: R76 million)
UP 34%
GROSS REVENUE
R325 million
(2007: R264 million)
ABRIDGED GROUP INCOME STATEMENT
YEAR ENDED 29 FEBRUARY
2008 2007
R`000 (reviewed) (audited)
Revenue 325 348 263 816
Income before interest and revaluations 11 290 22 400
Revaluation of investment property 46 729 16 912
Interest received 2 281 1 381
Interest paid (12 127) (10 463)
Net income before taxation 48 173 30 230
Taxation (7 089) 3 818
Income after taxation 41 084 34 048
Income attributable to:
Shareholders of the company 40 975 34 004
Minority shareholders 109 44
41 084 34 048
Income before interest and revaluations is
arrived at after:
Audit fees 942 826
Depreciation 2 152 966
Operating lease payments 5 065 5 791
(Profit)/loss on disposal of property, (253) (52)
equipment, vehicles and investment property
ABRIDGED GROUP BALANCE SHEETS
YEAR ENDED 29 FEBRUARY
2008 2007
R`000 (reviewed) (audited)
ASSETS
Non-current assets
Property, plant and equipment 4 806 5 268
Investment properties 175 585 112 598
Investments and loans 959 783
Operating lease debtors 2 385 -
Deferred taxation 9 359 10 081
193 094 128 730
Current assets
Inventory 52 384 31 241
Accounts receivable 49 820 37 915
Cash and equivalents 4 882 13 415
107 086 82 571
Total assets 300 180 211 301
EQUITY AND LIABILITIES
Share capital and reserves 117 502 76 484
Non-current liabilities
Borrowings 61 556 21 938
Deferred taxation 7 642 3 070
69 198 25 008
Current liabilities
Current portion of borrowings 66 721 64 758
Accounts payable 30 091 34 016
Bank overdraft 11 519 4 013
Taxation 5 149 7 022
113 480 109 809
Total equity and liabilities 300 180 211 301
ABRIDGED GROUP CASH FLOW STATEMENT
YEAR ENDED 29 FEBRUARY
2008 2007
R`000 (reviewed) (audited)
Cash generated/(utilised) by operations (38 983) (12 260)
Net cash inflow from investing activities (1 113) (20 202)
Net cash inflow/(outflow) from financing 38 579 27 662
activities
Movement in cash and cash equivalents (16 039) 8 565
Cash and cash equivalents at the beginning 9 402 837
of the period
Cash and cash equivalents at the end of (6 637) 9 402
the period
ABRIDGED GROUP STATEMENTS OF CHANGE IN EQUITY
YEAR ENDED 29 FEBRUARY
2008 2007
R`000 (reviewed) (audited)
Ordinary share capital 559 559
Share premium 8 8
Reserves
Retained income
Balance at the beginning of period 75 819 45 690
Income attributable to ordinary 40 975 34 004
shareholders
Share repurchase (64) (3 875)
Balance at the end of the period 116 730 75 819
Reserves attributable to ordinary 116 730 75 819
shareholders
Reserves attributable to minority 205 98
shareholders
Total reserves 116 935 75 917
Total equity 117 502 76 484
SUPPLEMENTARY INFORMATION
YEAR ENDED 29 FEBRUARY
2008 2007
R`000 (reviewed) (audited)
Number of ordinary shares in issue - end 55 881 55 915
of period (000`s)
Number of ordinary shares in issue - 62 837 70 007
beginning of period (000`s)
Less: Held by Quyn Share Trust (000`s) -
Less: Treasury shares (000`s) * (6 922) (6 922)
Less: Repurchased during period (34) (7 170)
Weighted average (000`s) 55 914 57 254
* These shares have now been cancelled and
delisted
Reconciliation of headline earnings per
share
Earnings per share (cents) 73,5 59,0
- Profit/(loss) on sale of (0,5) (0,1)
assets/investment properties
- Revaluation of investment property (71,5) (25,1)
Impairment of investments 4,5 0,4
Headline earnings per share (cents) 6,0 34,2
Dividends per share (cents) - -
Net asset value per share (cents) 210,3 136,8
Net tangible asset value per share (cents) 210,3 136,8
Contingent liabilities (R000`s) - -
There are no instruments in issue that have a dilutive effect on earnings.
NOTES
Basis of Preparation
These abridged consolidated financial statements have been prepared in
accordance with IAS34: Interim Financial Reporting, the requirements of the
Company`s Act of South Africa and the listing requirements of the JSE Limited.
The accounting policies applied are in compliance with International Financial
Reporting Standards and are consistent with those of the previous year.
Comparatives in respect of inventory, accounts receivable and accounts payable
have been restated to eliminate certain inter-company balances.
Reviewed Results
These summarised consolidated annual financial statements have been reviewed by
our auditors, BDO Spencer Steward (Jhb) Inc. A copy of their unmodified review
report is available for inspection at the company`s registered offices.
Segmental Results
Operating revenue and income/(loss) before taxation has been incurred by the
group`s divisions as follows:
YEAR ENDED 29 FEBRUARY
2008 2007
R`000 (reviewed) (audited)
Revenue
Colliers Property division 71 355 90 622
Quyn Outsource division 258 580 177 539
Intergroup income (4 587) (4 345)
325 348 263 816
Profit before taxation
Colliers Property division 40 705 25 404
Quyn Outsource division 7 468 4 782
48 173 30 186
Net assets
Colliers Property division 109 140 76 037
Quyn Outsource division 8 362 447
117 502 76 484
Review of Group Performance
The directors are satisfied with the overall performance of the group for the
year under review. The Quyn outsource division achieved a growth in earnings
before taxation of 56% which is most gratifying. The Colliers Property division
increased its earnings before taxation by R15 million. A large contribution was
in the form of property revaluations which, while not realised in the form of
cash, is a positive creation of wealth for shareholders. Included in property
revaluations is a profit of R15.5 million in respect of a property which was
disposed of during the period reported on. Due to inordinate delays in the
transfer of this property the profit has not been included in the headline
earnings. If it were to have been included headline earnings would increase by
23,7 cents.
The Colliers International Business Park in Cape Town has proven to be a highly
successful venture and is generating a sound cash flow while also creating
wealth with capacity for further growth in the current financial year. Other
development projects nearing completion are the Industrial Park in Nelspruit,
the up-market residential development in Salt Rock and the Residential/Retail
complex in Hout Bay. The group has scope for further developments (including
expansions in Hout Bay and the Cape Town Business Park), however, in the light
of the current interest rate scenario as well as the power problems experienced
recently, the directors have adopted a cautious approach which will only result
in further development projects being undertaken when there is certainty
regarding tenants and/or buyers. The Property Management division performed
well during the period under review and is looking to sustain this momentum
going forward. The Broking and Residential divisions have suffered from the
negative impact of rising interest rates and a decline in demand. This has also
had an impact on the newly created auctioneering division. The ongoing losses
incurred while re-establishing the broking division together with the start up
costs incurred in the residential and auctioneering divisions negated the good
profits achieved in property management and developments. It is believed that
the economy will stabilise towards the end of the current financial year but
growth in the markets served by the property division will be much slower.
The group has experienced an increase of approximately R42 million in borrowings
which is the result of ongoing investment in property (both investment
properties and inventory properties) which increased in value by R84 million.
Borrowings are secured by the individual properties and the asset cover is more
than adequate to provide for an ongoing growth in these assets.
Dividends
Taking into account the aforementioned negative impacts of interest rates and
related problems in the property industry the directors are currently evaluating
the option of declaring a dividend against the need to retain cash in the group
to ensure future growth. As such no final decision regarding the declaration of
dividends has yet been made.
DIRECTORS
S F Cairns* (Non-executive Chairman), R P Fertig (Chief Executive Officer), W P
Alcock, B W Kaiser, B Mothelesi*, M Moela* (*Independent non-executive)
REGISTERED OFFICE
36 Fricker Road, Illovo, Sandton, 2196
TRANSFER SECRETARIES
Computershare Investor Services (Pty) Limited, 70 Marshall Street, Johannesburg
2001
12 June 2008
SPONSOR:
ARCAY MOELA SPONSORS (PTY) LIMITED
Date: 12/06/2008 11:30:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
