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ABL ABLP
ABL
ABL/ABLP - African Bank Investments Limited - Reviewed final results for the
twelve months ended 30 september 2008 and cash dividend declaration
African Bank Investments Limited
(Registration Number 1946/021193/06)
(Incorporated in the Republic of South Africa)
(Registered bank controlling company)
Ordinary Share Code: ABL ISIN: ZAE000030060
Preference Share Code: ABLP ISIN: ZAE000065215
("ABIL" or "the Company")
REVIEWED FINAL RESULTS FOR THE TWELVE MONTHS ENDED 30 SEPTEMBER 2008 AND CASH
DIVIDEND DECLARATION
FEATURES
Results include a first time contribution from Ellerines for nine months
Gross advances increased by 92% to R20,9 billion (2007: R10,9 billion)
Headline earnings of R1 519 million. Headline earnings before the BEE charge
increased by 36% to R1 810 million (2007: R1 334 million)
Headline earnings per share before the BEE charge declined by 6% to 252.1 cps
(2007: 268.4 cps)
Dividends per share declined by 7% to 210 cps (2007: 225cps)
OVERVIEW
The consolidated results of ABIL for 2008 reflect the different levels of
progress achieved by its two business units. African Bank commenced with its
price/volume elasticity strategy three years ago, and as a result has
experienced significant growth which, combined with strong cost control, has
driven an expansion of the market it serves. On the other hand, Ellerines has
only begun to implement its restructuring programme and therefore its under-
performance largely reflects present market dynamics.
ABIL achieved headline earnings before the BEE charge of R1 810 million (2007:
R1 334 million) for the year ended 30 September 2008. Headline earnings per
share before the BEE charge declined by 6% to 252,1 cents (2007: 268,4 cents),
with the weighted average number of ordinary shares in issue increasing by 44%
to 717,9 million.
Group headline earnings was negatively affected by the once-off BEE charge of
R291 million, relating to the issue of 11,6 million ABIL ordinary shares to the
Masonge BEE programme, which were reserved out of the Ellerines purchase
consideration. After this charge, headline earnings increased by 14% while
headline earnings per share declined by 21%.
African Bank increased headline earnings by 8% to R1 442 million. Ellerines`
headline earnings of R368 million was disappointing, being negatively impacted
by a relatively weak sales performance, higher bad debts incurred on business
written in its previous financial year, and the fact that the group`s peak
trading quarter was not consolidated in these results.
Return on equity (RoE) declined to 19,5% from 60,6% in the prior year, as a
result of the R9.1 billion equity issued for the acquisition of Ellerines, while
tangible net asset value increased by 41% to 704,1cps.
BUSINESS UNIT RESULTS ANALYSIS
African Bank:
Sales of new loans grew by 36%, with larger loan sizes and longer average terms
resulting in a 45% increase in gross advances.
Overall yields declined by 6,5%, given the effect of price reductions on the
portfolio and an increasing bias towards medium and low risk clients during
2008.
The bad debt charge for the year, at 10,1% of average advances (after reaching a
peak 10,7% for H1 2008), breached African Bank`s targeted range of 8,5% to 9,5%.
Operating costs increased by 11% to R1 209 million (2007: R1 091 million) whilst
cost to average advances fell to 9,0% for the year (2007: 11,8%) due to strong
growth in the advances book.
The total cost of funding increased to R1 136 million (2007: R636 million) as a
result of higher gearing, and a higher average funding rate of 10,6% (2007:
9,7%).
Ellerines:
Retail division
The retail division incurred a headline loss of R223 million for the nine months
ended September 2008.
Sales of merchandise at R3 092 million was 13% lower than the equivalent period
in 2007, with cash sales rising 11,3% and credit sales declining by 31,6%.
Gross margins declined by 2,6% to 42,5% as a result of price cuts and
competitive repositioning.
Operating costs grew by 6,6% to R1 861 million in the nine month period.
Excluding non-comparable charges, operating costs were flat over the previous
period.
Financial services division
The financial services division generated headline earnings of R591 million.
Advances declined by 4,3% to R5 082 million, from a take-on balance in January
2008 of R5 308 million, due to lower credit sales.
The financial services` yield as a percentage of average advances was 51,6%,
down from the March 2008 interim yield of 53,5%, as a result of the price
reduction process underway.
The bad debt charge as a percentage of average advances was 12,0% after the fair
value provision release, or 21,0% prior to the fair value provision release.
ECONOMIC PROFIT
African Bank grew its economic profit by 6% to R1 060 million (2007: R1 004
million). However, Ellerines incurred a R196 million economic loss, based on
its internal capital, while an additional charge of R541 million was incurred on
the goodwill component of the Ellerines purchase consideration. This resulted
in the ABIL group generating a net economic profit of R323 million for the 2008
financial year.
It is anticipated that the Ellerines acquisition will be dilutive to the
economic profit generated by ABIL until 2010. However, the strategies to
refocus the business and optimise its capital structure are expected to result
in the ROE from this investment approaching 30% by 2012.
CAPITAL MANAGEMENT AND FUNDING
ABIL`s internal capital model indicates an optimal level of core Tier 1 equity
of R3,4 billion. ABIL`s higher core tier 1 equity base of R5,0 billion at 30
September 2008 (after impairments for goodwill, trademarks and dividends
declared) represents a significant competitive advantage, which will enable the
group to maintain its growth momentum and to pursue its strategic objectives,
despite the current macro-economic and capital market uncertainties.
Over the past nine months priority was given to separating the financial
services activities from the retail business within Ellerines. During 2009,
focus will be given to the restructuring of the Ellerines balance sheet by
disposing of non-core assets, transferring the financial services business to
African Bank and raising appropriate gearing on these assets. The successful
implementation of these initiatives within Ellerines will provide further
impetus to the ongoing optimisation of the group`s capital structure.
ABIL has maintained a solid liquidity and funding position over the past year,
in order to support the substantial growth of the African Bank advances book.
African Bank raised R8,0 billion in new funding during the current period,
including R2,4 billion raised through its listed bond programme.
DIVIDEND
ABIL has declared a final ordinary dividend of 105 cents per share, bringing the
total for the year to 210 cents per share, a decline of 7% from the previous
financial year. The ordinary dividend cover, based on headline earnings per
share before the BEE charge, has been maintained at 1,20 times.
While the dividends declared encompass the full number of shares in issue, the
contribution from Ellerines is in respect of the nine month period ended
September 2008. The total ordinary dividends declared for the year of R1 676
million represent 93% of the headline earnings before BEE charge of R1 810
million, and are 50% higher than the R1 119 million declared in the previous
year.
LOOKING AHEAD
The outlook for the 2009 financial year is informed by the strong internal
momentum of the African Bank business unit and the significant restructuring of
Ellerines currently underway.
African Bank`s strategic intent is to double the size of its advances portfolio
over the next 4 years, by continuing to bring credit pricing down, optimising
our weighted average cost of capital and operating costs, growing our active
client base and maximising the value proposition to our clients. We remain
confident that this business unit will achieve these objectives and that this
will further entrench its position as the market leader in a larger, more
competitive and fast changing unsecured credit market.
We expect the restructuring of Ellerines to gain momentum in the 2009 financial
year. Its retail activities will begin to benefit from changes made to its
merchandising strategy, as well as the cost reductions emanating from the
organisational restructure and brand optimisation strategy previously announced.
We expect to complete the migration of Ellerines financial services activities
into African Bank, which should enable us to reduce the cost of credit while
improving the risk parameters of the business. We also expect to largely
complete the restructuring of Ellerines balance sheet and funding base.
Ultimately, we expect these initiatives to double Ellerines` sales over the next
four years, driving appropriate returns on this investment.
Notwithstanding the uncertainties in the macro-economic environment, ABIL enters
the new financial year with a strong balance sheet, clear operational objectives
and every confidence in our ability to make further substantive progress towards
our medium term strategic objectives.
ABIL group income statement
for the 12 months ended 30 September 2008
ABIL Group
consolidated and
reviewed consol
adj
reviewed
R million % 12 months to 12 months
change 30 Sep 2008 to 30 Sep
2008
Revenue 144 11,527 (3)
Gross margin on retail 1,313 0
business
Interest income on advances 38 4,285 0
Net assurance income 176 2,045 0
Non-interest income 150 1,768 0
Income from operations 107 9,411 0
Charge for bad and doubtful (126) (1,856) 0
advances
Risk-adjusted income from 103 7,555 0
operations
Other interest and 101 342 (3)
investment income
Interest expense (106) (1,313) 3
Operating costs (242) (3,734) 11
BEE charge (291) (291)
Indirect taxation: VAT and (47) (56) 0
RSC
Profit from operations 18 2,503 (280)
Capital items (11) (11)
Profit before taxation 17 2,492 (291)
Direct taxation: STC (8) (149) 0
Direct taxation: SA normal (27) (783) 0
Profit for the year 13 1,560 (291)
Ellerines African ABIL
reviewed Bank consolidate
reviewed d audited
R million 9 months 12 months 12 months
to 30 Sep to 30 Sep to
2008 2008 30 Sep 2007
Revenue 5,511 6,019 4,717
Gross margin on retail 1,313 0 0
business
Interest income on advances 962 3,323 3,098
Net assurance income 854 1,191 742
Non-interest income 524 1,244 707
Income from operations 3,653 5,758 4,547
Charge for bad and doubtful (495) (1,361) (823)
advances
Risk-adjusted income from 3,158 4,397 3,724
operations
Other interest and 84 261 170
investment income
Interest expense (180) (1,136) (636)
Operating costs (2,536) (1,209) (1,091)
BEE charge 0 0 0
Indirect taxation: VAT and (2) (54) (38)
RSC
Profit from operations 524 2,259 2,129
Capital items 0 0 0
Share of associate 0 0 0
company`s income
Profit before taxation 524 2,259 2,129
Direct taxation: STC (17) (132) (138)
Direct taxation: SA normal (147) (636) (616)
Profit for the year 360 1,491 1,375
ABIL Group
consolidate and
d reviewed consol
adj
reviewed
R million % 12 months 12 months
change to 30 Sep to 30 Sep
2008 2008
Reconciliation of headline
earnings and per share
statistics
Basic earnings (profit for 13 1,560 (291)
the year) attributable to:
Preference shareholders 20 49 0
Ordinary shareholders 13 1,511 (291)
Basic earnings 13 1,511 (291)
attributable to ordinary
shareholders
Adjusted for non-headline
items
Goodwill impaired 0 0
Capital items (impairment 11 0
of trademark)
Tax thereon (3) 0
Headline earnings 14 1,519 (291)
Number of shares in issue 803.7 803.7
(net of treasury) million
Weighted number of shares 717.9 717.9
in issue million
Fully diluted number of 718.0 718.0
shares in issue million
Basic earnings per share cents (22) 210.5 (40.5)
Fully diluted basic cents (22) 210.4 (40.5)
earnings per share
Headline earnings per cents (21) 211.6 (40.5)
share
Fully diluted headline cents (21) 211.6 (40.5)
earnings per share
Dividends per ordinary
share
Interim - paid cents 11 105
Final - declared cents (19) 105
Total ordinary dividends cents (7) 210
R million Ellerines African ABIL
reviewed Bank consolidatd
9 months reviewed audited 12
to 30 Sep 12 months to
2008 months 30 Sep 2008
to 30
Sep 2008
Reconciliation of headline
earnings and per share
statistics
Basic earnings (profit for 360 1,491 1,375
the year) attributable to:
Preference shareholders 0 49 41
Ordinary shareholders 360 1,442 1,334
Basic earnings 360 1,442 1,334
attributable to ordinary
shareholders
Adjusted for non-headline
items
Goodwill impaired 0 0 0
Capital items (impairment 11 0 0
of trademark)
Tax thereon (3) 0 0
Headline earnings 368 1,442 1,334
Number of shares in issue 306.3 497.4 497.2
(net of treasury) million
Weighted number of shares 220.7 497.3 497.1
in issue million
Fully diluted number of 220.7 497.4 497.4
shares in issue million
Basic earnings per share cents 163.1 290.0 268.4
Fully diluted basic cents 163.1 289.9 268.2
earnings per share
Headline earnings per cents 166.8 290.0 268.4
share
Fully diluted headline cents 166.8 289.9 268.2
earnings per share
Dividends per ordinary
share
Interim - paid cents 95
Final - declared cents 130
Total ordinary dividends cents 225
ABIL group balance sheet
as at 30 September 2008
ABIL Group
consolidate and
d reviewed consol
adj
reviewed
R million % change 30 Sep 2008 30 Sep
2008
Assets
Short-term deposits and cash 52% 2,984 0
Statutory assets - bank and 109% 1,396 (64)
insurance
Inventories 767 0
Other assets 216% 142 (27)
Taxation (38%) 8 0
Net advances 91% 16,702 0
Gross advances 92% 20,908 0
Deferred administration fees (55%) (110) 0
Impairment provisions 116% (4,096) 0
Deferred tax asset 176% 394 0
Assets held for sale 215 0
Policyholders` investments 27% 19 0
Property and equipment 220% 496 0
Intangible assets 978 0
Goodwill 5,292 4,537
Total assets 150% 29,393 4,446
Liabilities and equity
Bank overdraft 844 0
Short-term money market 318% 3,375 (64)
funding
Other liabilities 221% 1,332 (1)
Taxation 61% 238 0
Deferred tax liability 294 0
Liabilities held for sale 37 0
Life fund reserve 13% 18 0
Bonds and other long-term 46% 10,332 0
funding
Subordinate 68% 511 0
d bonds
Total 93% 16,981 (65)
liabilities
Ordinary shareholders` equity 381% 11,929 4,511
Preference shareholders` 0% 483 0
equity
Total equity (capital and 319% 12,412 4,511
reserves)
Total liabilities and equity 150% 29,393 4,446
African ABIL
Ellerine Bank consol
s reviewed idated
reviewed audite
d
R million 30 Sep 30 Sep 30 Sep
2008 2008 2007
Assets
Short-term deposits and cash 77 2,907 1,961
Statutory assets - bank and 538 922 668
insurance
Inventories 767 0 0
Other assets 124 45 45
Taxation 4 4 13
Net advances 3,527 13,175 8,752
Gross advances 5,082 15,826 10,890
Deferred administration fees (46) (64) (246)
Impairment provisions (1,509) (2,587) (1,892
)
Deferred tax asset 319 75 143
Assets held for sale 215 0 0
Policyholders` investments 0 19 15
Property and equipment 304 192 155
Intangible assets 978 0 0
Goodwill 755 0 0
Total assets 7,608 17,339 11,752
Liabilities and equity
Bank overdraft 844 0 0
Short-term money market 440 2,999 808
funding
Other liabilities 1,048 285 415
Taxation 111 127 148
Deferred tax liability 294 0 0
Liabilities held for sale 37 0 0
Life fund reserve 0 18 16
Bonds and other long-term 14 10,318 7,095
funding
Subordinate 0 511 305
d bonds
Total 2,788 14,258 8,787
liabilities
Ordinary shareholders` equity 4,820 2,598 2,482
Preference shareholders` 0 483 483
equity
Total equity (capital and 4,820 3,081 2,965
reserves)
Total liabilities and equity 7,608 17,339 11,752
ABIL group statement of changes in equity
for the 12 months ended 30 September 2008
Ordinary shares
R million Share Distri- Share- Cashflo
capital butable based w
and reserve payment hedging
share s reserve reserve
premium
Balance at 30 September 2006 12 1,910 309 0
Dividends paid 0 (1,070) 0 0
Shares purchased into the 0 0 0 0
ABIL Employee Share Trust
less shares issued to
employees (cost)
Loss incurred on group 0 (1) 0 0
employees acquiring ABIL
Share Trust shares less
dividends received
IFRS 2 reserve transactions 0 0 7 0
(employee incentives)
Profit for the year 0 1,334 0 0
Balance at 30 September 2007 12 2,173 316 0
(audited)
Issue of ordinary shares 9,139 0 0 0
Dividends paid 0 (1,479) 0 0
Shares purchased into the 0 0 0 0
ABIL Employee Share Trust
less shares issued to
employees (cost)
Loss incurred on group 0 (3) 0 0
employees acquiring ABIL
Share Trust shares less
dividends received
IFRS 2 reserve transactions 0 0 (21) 0
(employee incentives)
IFRS 2 reserve transactions 0 0 291 0
(Masonge BEE transaction)
Movement in cashflow hedge 0 0 0 (14)
reserve
Transfer to insurance 0 (1) 0 0
contingency reserve
Exchange differences in 0 0 0 0
translating foreign
operations
Profit for the year 0 1,511 0 0
Balance at 30 September 2008 9,151 2,201 586 (14)
(reviewed)
Ordinary shares
R million Insurance Foreign Treasury
conti- currency shares
ngency translation
reserve reserve
Balance at 30 September 2006 0 0 (24)
Dividends paid 0 0 0
Shares purchased into the 0 0 5
ABIL Employee Share Trust
less shares issued to
employees (cost)
Loss incurred on group 0 0 0
employees acquiring ABIL
Share Trust shares less
dividends received
IFRS 2 reserve transactions 0 0 0
(employee incentives)
Profit for the year 0 0 0
Balance at 30 September 2007 0 0 (19)
(audited)
Issue of ordinary shares 0 0 0
Dividends paid 0 0 0
Shares purchased into the 0 0 6
ABIL Employee Share Trust
less shares issued to
employees (cost)
Loss incurred on group 0 0 0
employees acquiring ABIL
Share Trust shares less
dividends received
IFRS 2 reserve transactions 0 0 0
(employee incentives)
IFRS 2 reserve transactions 0 0 0
(Masonge BEE transaction)
Movement in cashflow hedge 0 0 0
reserve
Transfer to insurance 1 0 0
contingency reserve
Exchange differences in 0 17 0
translating foreign
operations
Profit for the year 0 0 0
Balance at 30 September 2008 1 17 (13)
(reviewed)
R million Preference Total
share
capital and
share
premium
Balance at 30 September 2006 483 2,690
Dividends paid (41) (1,111)
Shares purchased into the ABIL Employee 0 5
Share Trust less shares issued to
employees (cost)
Loss incurred on group employees 0 (1)
acquiring ABIL Share Trust shares less
dividends received
IFRS 2 reserve transactions (employee 0 7
incentives)
Profit for the year 41 1,375
Balance at 30 September 2007 (audited) 483 2,965
Issue of ordinary shares 0 9,139
Dividends paid (49) (1,528)
Shares purchased into the ABIL Employee 0 6
Share Trust less shares issued to
employees (cost)
Loss incurred on group employees 0 (3)
acquiring ABIL Share Trust shares less
dividends received
IFRS 2 reserve transactions (employee 0 (21)
incentives)
IFRS 2 reserve transactions (Masonge BEE 0 291
transaction)
Movement in cashflow hedge reserve 0 (14)
Transfer to insurance contingency reserve 0 0
Exchange differences in translating 0 17
foreign operations
Profit for the year 49 1,560
Balance at 30 September 2008 (reviewed) 483 12,412
Notes
1. Treasury shares 30 Sep 2008 30 Sep 2007
Treasury shares at cost R million 13 19
Number of shares held million 0.5 0.7
Average cost per share Rand 26.73 25.38
2. Number of ordinary shares Total Weighted Diluted
at
30 September 2008
Number of shares in issue 804,175,200 718,570,367 718,570,367
Treasury shares on hand (486,254) (643,192) (643,192)
Dilution as a result of 0 0 85,370
outstanding options
803,688,946 717,927,175 718,012,545
ABIL group cash flow statement
for the 12 months ended 30 September 2008
ABIL Group
consolid and Ellerine
ated consol s
reviewed adj reviewed
reviewed
R million 12 12 months 9 months
months to 30 Sep to 30
to 30 2008 Sep 2008
Sep 2008
Cash generated from 5,320 0 1,523
operations
Cash received from lending 11,593 0 5,634
and insurance activities and
cash reserves
Recoveries on advances 241 0 49
previously written off
Cash paid to funders, staff, (6,514) 0 (4,160)
suppliers and insurance
beneficiaries
Increase in gross advances (6,116) (293)
(Decrease)/Increase in (546) 26 (377)
working capital
Decrease in inventories 35 0 35
Decrease in other assets 52 27 44
Decrease in other liabilities (633) (1) (456)
Indirect and direct taxation (970) 0 (215)
paid
Cash inflow / (outflow) from 2 0 0
equity accounted incentive
transactions
Cash (outflow) / inflow from (2,310) 26 638
operating activities
Cash outflow from investing (444) (26) (28)
activities
Acquisition of property and (197) 0 (98)
equipment (to maintain
operations)
Disposal of property and 20 0 20
equipment
Direct costs relating to the (26) (26) 0
acquisition of Ellerine
Holdings Limited
Other investing activities (241) 0 50
Cash inflow/(outflow) from 4,029 (64) (184)
financing activities
Cash inflow/(outflow) from 5,557 (64) 1
funding activities
Preference shareholders` (49) 0 0
payments and transactions
Ordinary shareholders` (1,479) 0 (185)
payments and transactions
Increase \ (decrease) in cash 1,275 (64) 426
and cash equivalents
Cash and cash equivalents at 2,094 0 0
the beginning of the period
Cash and cash equivalents (741) 0 (741)
acquired on acquisition of
Ellerine Holdings Limited
Cash and cash equivalents at 2,628 (64) (315)
the end of the period
Made up as follows:
Short-term deposits and cash 2,984 0 77
Bank overdraft (844) 0 (844)
Statutory cash reserves - 488 (64) 452
insurance
2,628 (64) (315)
African ABIL
Bank consolidated
reviewed audited
R million 12 months 12 months to
to 30 Sep 30 Sep 2007
2008
Cash generated from operations 3,797 3,352
Cash received from lending and 5,959 4,771
insurance activities and cash
reserves
Recoveries on advances previously 192 193
written off
Cash paid to funders, staff, (2,354) (1,612)
suppliers and insurance
beneficiaries
Increase in gross advances (5,823) (3,712)
(Decrease)/increase in working (195) (208)
capital
Decrease in inventories 0 0
Decrease in other assets (19) (33)
Decrease in other liabilities (176) (175)
Indirect and direct taxation paid (755) (749)
Cash inflow/(outflow) from equity 2 3
accounted incentive transactions
Cash (outflow)/inflow from (2,974) (1,314)
operating activities
Cash outflow from investing (390) (186)
activities
Acquisition of property and (99) (85)
equipment (to maintain
operations)
Disposal of property and 0 1
equipment
Direct costs relating to the 0 0
acquisition of Ellerine Holdings
Limited
Other investing activities (291) (102)
Cash inflow/(outflow) from 4,277 2,231
financing activities
Cash inflow /(outflow)from 5,620 3,342
funding activities
Preference shareholders` payments (49) (41)
and transactions
Ordinary shareholders` payments (1,294) (1,070)
and transactions
Increase/(decrease) in cash and 913 731
cash equivalents
Cash and cash equivalents at the 2,094 1,363
beginning of the period
Cash and cash equivalents 0 0
acquired on acquisition of
Ellerine Holdings Limited
Cash and cash equivalents at the 3,007 2,094
end of the period
Made up as follows:
Short-term deposits and cash 2,907 1,961
Bank overdraft 0 0
Statutory cash reserves - 100 133
insurance
3,007 2,094
SEGMENTAL ANALYSIS
The ABIL business is currently being managed in terms of two segments, the
African Bank and Ellerines business units. The revenue, profit before tax and
profit after tax are disclosed above.
CHANGES TO THE BOARD OF DIRECTORS
Since our last published interim set of results released on 26 May 2008, there
have been no changes to the ABIL board`s directorship.
REVIEW OPINION
These results have been reviewed by Deloitte & Touche and their unmodified
review opinion is available for inspection at the Company`s office.
ACCOUNTING POLICIES
These condensed group consolidated financial statements comply with
International Accounting Standard (IAS) 34 and the requirements of the South
African Companies Act, Act number 61 of 1973, as amended and the listing
requirements of the JSE Limited.
The accounting policies of the group are in accordance with the IFRS as issued
by the IASB and are consistent with those applied in the previous year after
incorporating the relevant accounting policies, as amended, that were applied by
Ellerine Holdings Limited.
The basis of accounting for monthly servicing fee income has changed in the
current year to its recognition as part of the effective interest rate. The
impact of this change in basis on the prior year`s results is not material. IFRS
7 - Financial Instruments: Disclosures, and the amendments to IAS 1 Presentation
of Financial Statements - Capital disclosures will be adopted this year. These
standards deal with disclosures and do not have any impact on the preliminary
results as published.
DISCLOSURE IN TERMS OF IFRS 3 - BUSINESS COMBINATIONS
ABIL purchased the entire issued share capital of Ellerine Holdings Limited,
excluding treasury shares held by a subsidiary of Ellerines, for a total
consideration settled by the issue of 294 706 784 ABIL ordinary shares. The
market price of an ABIL share on 7 January 2008, being the effective date was
R31,01 resulting in the fair value of the consideration paid being R9 139
million. In addition, direct costs of R26 million were incurred in relation to
this transaction.
Factors that contributed to the recognition of goodwill within the total cost of
acquisition include the value of the control premium, and the potential to
market new loan products through a significantly increased number of stores. The
fair value of these intangibles could not be individually measured.
The profit of Ellerines for the full 12 month reporting period ending 30
September 2008 has not been disclosed as its determination is impracticable,
given the changes to accounting policies that were affected at acquisition,
including the recognition of insurance income.
CASH DIVIDEND DECLARATION
Ordinary shares Preference shares
Share code ABL ABLP
ISIN ZAE000030060 ZAE000065215
Dividend number 16 8
Dividends per share 105 cents 551 cents
(cash dividends)
Declaration date Monday, 24 Monday, 24 November
November 2008 2008
Last date to trade cum- Thursday,11 Thursday, 11
dividend December 2008 December 2008
Shares commence trading Friday, 12 Friday, 12 December
ex-dividend December 2008 2008
Record date Friday, 19 Friday, 19 December
December 2008 2008
Dividend payment date Monday, 22 Monday, 22 December
December 2008 2008
Share certificates may not be dematerialised or rematerialised between Friday,
12 December 2008 and Friday, 19 December 2008, both days inclusive.
On behalf of the board
Ashley Mabogoane, Chairman
Gordon Schachat, Executive deputy chairman
Leon Kirkinis, Chief executive officer
Midrand
24 November 2008
Board of directors
AS Mabogoane (Chairman), G Schachat (Deputy Chairman)*, L Kirkinis (CEO)*, N
Adams, A Fourie*, DB Gibbon, BD Goba, MC Mogase, MEK Nkeli, BPF Steele, TM
Sokutu*, A Tugendhaft, DF Woollam *
* Executive
Group Secretary
C Brighten
For a more detailed discussion of ABIL`s results and outlook for 2009, please
refer to the investor zone on our website, at www.abil.co.za
Sponsor
Rand Merchant Bank (A division of Firstrand Bank Limited)
Date: 24/11/2008 07:05:04 Produced by the JSE SENS Department.
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