|
RAH
RAH
RAH - Real Africa Holdings - Profit and Dividend Announcement for the Year ended
30 June 2008
Real Africa Holdings Limited
(Registration number 1994/003919/06)
Share code: RAH
ISIN code: ZAE000008702
("Real Africa" or "RAH" or "the company")
Profit and Dividend Announcement for the Year ended 30 June 2008
GROUP INCOME STATEMENTS
Fifteen months
Year ended 30 to 30 June
June 2008 2007
Reviewed Audited
R`000
Revenue 67,408 83,507
Net investment profits 95,389 163,040
Share of profits of associates 48,946 69,449
Interest income 4,450 10,508
Litigation settlement 110,000 -
Operating income 326,193 326,504
Operating costs (14,349) (34,709)
Interest and preference dividends (5,647) (14,268)
Profit for the period 306,197 277,527
Taxation (33,720) (12,477)
Profit after taxation 272,477 265,050
Attributable to:
Minorities 44,713 13,350
Ordinary shareholders 227,764 251,700
272,477 265,050
Earnings per share (cents) 63.0 69.7
Headline earnings per share (cents) 37.7 28.0
GROUP BALANCE SHEETS
As at 30 June As at 30 June
2008 2007
Reviewed Audited
R`000
ASSETS
Non current assets
Investments in associates 132,073 160,511
Other investments 862,003 1,180,154
994,076 1,340,665
Current assets
Non current assets held for sale - 71,295
Trade and other receivables 245 245
Taxation 2,374 -
Cash and cash equivalents 42,234 37,156
44,853 108,696
Total assets 1,038,929 1,449,361
EQUITY AND LIABILITIES
Capital and reserves
Ordinary shareholders` equity 899,002 1,147,838
Minorities` interests 67,663 150,656
966,665 1,298,494
Non current liabilities
Preference shares 37,392 140,464
Deferred tax 264 264
Taxation 14,548 -
52,204 140,728
Current liabilities
Trade and other payables 2,003 2,129
Provisions 18,000 -
Taxation 57 8,010
20,060 10,139
Total liabilities 72,264 150,867
Total equity and liabilities 1,038,929 1,449,361
GROUP CASH FLOW STATEMENTS
Fifteen months
Year ended 30 to 30 June
June 2008 2007
Reviewed Audited
R`000
Cash flows from operating activities 73,610 (31,670)
Cash flows from investing activities 278,774 436,615
Cash flows from financing activities (347,306) (648,354)
Net cash flows 5,078 (243,409)
HEADLINE EARNINGS PER SHARE
Fifteen months
Year ended 30 to 30 June
June 2008 2007
Reviewed Audited
R`000
Headline earnings per share (cents) 37.7 28.0
Weighted average number of shares (million) 361.6 361.3
Reconciliation of headline earnings (R`000)
Earnings 227,764 251,700
Loss on disposal of equipment and furniture - 43
Adjustment for realised investment profits (114,930) (163,360)
Provision for pension fund exposure 18,000 -
Taxation on above 5,560 12,678
Headline earnings 136,394 101,061
NET ASSET VALUE
30 June 30 June
2008 2007
R`000 Reviewed Audited
Afrisun Leisure (1) 1,041,836 1,693,863
Life Esidimeni - 157,116
Other net liabilities (22,610) (9,350)
Cash 30,722 16,167
Borrowings (7,584) (94,475)
Share of litigation settlement - 62,355
Net asset value 1,042,364 1,825,676
Issued shares, net of treasury shares
(million) 361.6 361.3
Net asset value per share (cents) 288 505
Special dividend paid to shareholders
(cents) - 35
Value per share after distribution to
shareholders (cents) 288 470
Notes
(1) Afrisun Leisure value is net of preference share debt and cash.
(2) All the investments held by Afrisun Leisure have been valued using the
Discounted Cash Flow (DCF) valuation method applying a discount rate of 15,10%
(2007:12,46%) at 30 June 2008, to directors` current estimated future cash
flows. A minority discount of 15% has been applied to the valuation of the
gaming company investments.
GROUP STATEMENT OF CHANGES IN EQUITY
Share Capital Non-
capital and redemption controlling Retained
premium reserve reserve earnings
R`000 R`000 R`000 R`000
Balance at 1 July
2007 85,161 1,080 (3,751) 262,014
Profit - - - 227,764
Fair value
adjustments - - - -
Dividends paid - - - (198,824)
Preemptive rights
exercised - - - -
Acquisition of
minorities`
interests - - (14,192) -
Movement in
treasury shares 1,881 - - -
87,042 1,080 (17,943) 290,954
Fair value Minorities`
reserve interests Total
R`000 R`000 R`000
Balance at 1 July 2007 803,334 150,656 1,298,494
Profit - 44,713 272,477
Fair value adjustments (265,465) (22,350) (287,815)
Dividends paid - (41,644) (240,468)
Preemptive rights exercised - - -
Acquisition of minorities` interests - (63,712) (77,904)
Movement in treasury shares - - 1,881
537,869 67,663 966,665
ACCOUNTING POLICIES
The condensed consolidated financial information has been prepared in
accordance with the recognition and measurement criteria of all applicable
statements and interpretations of International Financial Reporting Standards
and is presented in terms of the disclosure requirements set out in IAS 34 -
Interim Financial Reporting. The accounting policies applied to the condensed
consolidated financial information are consistent with those as set out in the
annual financial statements for the fifteen months ended 30 June 2007.
AUDIT REVIEW OPINION
The condensed consolidated financial information for the year ended 30 June 2008
has been reviewed by the group`s auditors, PricewaterhouseCoopers Inc., and
their unmodified review opinion is available for inspection at the company`s
registered office.
REVIEW OF RESULTS
Revenue comprises dividends received and was below the previous period due to
SunWest International (Pty) Ltd (SunWest) and Afrisun KZN (Pty) Ltd (Afrisun
KZN) having distributed a portion of their share premium in lieu of dividends
in the first half of the year totalling R42.7 million.
The net investment profits of R95.4 million relates predominantly to the profit
on sale of Life Esidimeni Group Holdings (Pty) Limited (Life Esidimeni) of
R90.7 million following its disposal for R180 million.
The share of profits from associates includes the group`s share of income from
Afrisun Gauteng (Pty) Ltd (Afrisun Gauteng), Zonwabise Resort Holdings Limited
as well as the management companies.
The litigation settlement of R110 million was received by Afrisun Leisure
Investments (Pty) Limited (Afrisun Leisure) from Sun International (South
Africa) Limited (SISA).
Profit after taxation was 3% higher than the result achieved for fifteen months
to 30 June 2007 due to lower operating and debt costs offset by a higher
tax charge. Operating costs have reduced due to the closure of RAH`s offices
and costs incurred with the Sun International offer in the prior period.
The higher tax charge was mainly as a result of capital gains taxes
arising from the litigation settlement, share premium distributions and
disposal of investments.
Headline earnings per share were positively impacted by the litigation
settlement.
The board has declared a final dividend of 16 cents per share, bringing the
total dividends for the year to 24 cents per share.
NON CURRENT ASSETS
Investments in associates have decreased due to distributions received from
these investments being in excess of equity accounted earnings. Other
investments have decreased primarily as a result of the discount rates applied
in the valuations of these investments increasing from 12,46% at 30 June 2007 to
15,10% at 30 June 2008.
On 24 August 2007 RAH acquired an additional 10.5% interest in the Afrisun
Leisure ordinary shares for R59.9 million and the remaining 11.8% Afrisun
Leisure KZ shares for R17.1 million that it did not already own. RAH now has a
76.8% interest in the Afrisun Leisure ordinary shares and owns all of the other
classes of shares being the Afrisun Leisure KZ, AG and SW shares. As a result of
the acquisitions RAH`s effective interests in the various underlying investments
has increased as follows:
Effective Interest
Investment %
30 June 30 June
2008 2007
Associates
Afrisun Gauteng 21.6 21.0
SunWest 14.6 14.1
Afrisun KZN 13.7 12.1
Emfuleni 8.1 7.0
Worcester 7.4 -
Gauteng Manco 36.1 30.8
Western Cape Manco 13.0 10.9
Afrisun KZN Manco 13.6 11.4
Emfuleni Manco 26.4 23.5
CONTINGENT LIABILITY
In terms of the Life Esidimeni sale agreement, RAH has warranted its share of
the pension fund exposure in the company which is capped at the proceeds
received from the sale amounting to R180 million. RAH has raised a provision of
R18 million for its share of the provision held in Life Esidimeni, however a
contingent liability exists for the balance of the warranty given.
OUTLOOK
Trading conditions in the underlying gaming operations are expected to remain
challenging in the year ahead. Assuming that long term interest rates remain
at the existing levels, the NAV of RAH is not expected to change significantly.
DIVIDEND
Notice is hereby given that a final dividend of 16 cents per share for the year
ended 30 June 2008 has been declared, payable to shareholders recorded in the
register of the company at the close of business on the record date appearing
below. The salient dates applicable to the final dividend are as follows:
2008
Last day to trade cum final dividend Thursday, 18 September
First day to trade ex final dividend Friday, 19 September
Record date Friday, 26 September
Payment date Monday, 29 September
No share certificates may be dematerialised or rematerialised between Friday,
19 September 2008 and Friday, 26 September 2008, both days inclusive. Dividend
cheques will be posted and electronic payments made, where applicable, to
certificated shareholders on the payment date. Dematerialised shareholders will
have their accounts with their Central Securities Depository Participant or
broker credited on the payment date.
Directorate
On 30 June 2008 Dr Lulu Gwagwa resigned from the board and Ms Tryphosa Ramano
was appointed. The board thanks Dr Gwagwa for her contribution.
For and on behalf of the board
DA Hawton RP Becker
Chairman Director
1 September 2008
REGISTERED OFFICE
27 Fredman Drive
Sandown
Sandton, 2031
TRANSFER SECRETARIES
Computershare Investor Services (Pty) Ltd
70 Marshall Street
Johannesburg, 2001
SPONSOR
Investec Bank Limited
DIRECTORS
DA Hawton (Chairman), RP Becker, DC Coutts-Trotter,
MJ Leeming, MV Moosa, MMT Ramano
SECRETARIES
Sun International Corporate Services (Pty) Limited
Date: 02/09/2008 11:00:02 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.
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
