| Wed 26 Nov 2008, 7:06 | | SKJ - Sekunjalo - Sekunjalo experiences strong turnaround in operational |
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SKJ
SKJ
SKJ - Sekunjalo - Sekunjalo experiences strong turnaround in operational
business performance
Sekunjalo Investments Limited
(Incorporated in the Republic of South Africa)
Registration number 1996/006093/06
Share code: SKJ and ISIN: ZAE000017893
("Sekunjalo" or "the Group")
Date: 25 November 2008
(Full results and commentary live on SENS)
SEKUNJALO EXPERIENCES STRONG TURNAROUND IN OPERATIONAL BUSINESS PERFORMANCE
Black Empowerment Group, Sekunjalo Investments Limited (Sekunjalo), has
continued to increase its business efficiencies by reporting a vast
improvement in its operating profits for the last financial year, from a R68m
operating loss to R16,8m operating profit across all of its major business
units.
Mo Kajee, CEO of Sekunjalo said that he was satisfied with the turnaround in
the Group`s results. The improved operating profits occurred despite the
challenging trading conditions which the businesses operated under during the
last year.
Mo Kajee said, "it is important to note that Sekunjalo is lowly geared with a
debt equity ratio of 12% and had very limited share issues during the year
under review".
The trend in the last five years has seen increased efficiencies resulting in
increased profits and cash flows as well as reducing debt, and a
significantly strengthened balance sheet.
Compared to the same reporting period, revenue of R638,3m is up on R449,2m in
2007 due largely to acquisitions and our partnership with Affinity groups in
the Financial Services division.
Headline earnings are not comparable to last year due to change in
circumstances and hence the accounting for our Biotech investment which has
now become an associate. As a consequence fair valuation adjustments included
in headline earnings are now excluded.
Premier Fishing continues to improve its operating profits due to the
positive performance of both west and south coast rock lobster as well as the
squid division all of which are prized in international markets.
The Group has invested into its aquaculture business through an acquisition
of Marine Growers as well as expanding its capacity in Gaansbaai. This is a
key growth area for the Group due to closure of the wild abalone sector.
Sekunjalo Technology Solutions (TSG) has significantly improved its operating
profits from R7,7m (2007) to R15,2m this year reflecting a 97% increase. This
performance is due largely to the conclusion of major licensing deals,
increased consulting revenue and the conclusion of a major Gauteng department
of health hospital information system (HIS) tender.
The financial services division which is a start up business required
additional investment in the current year to build capacity for its range of
innovative products. The population of these licences and businesses will
only incur marginal costs as the majority of the investment has already been
made in the infrastructure required.
The Healthcare division, Sekunjalo Health Care (SHC) has been significantly
restructured for turnaround which has produced a significant reduction in its
operating loss of R7,9m compared to an operating loss of R41,7m last year
through exiting our healthcare commodities businesses and focussing on the
efficiencies of the pharmaceutical business.
The Group`s investment in Bioclones which owns 22 global patents in the areas
of novel technologies, infectious diseases and cancer treatment molecules and
is Africa`s only producer of Erythropoietin. Bioclones engages in both
research and development for novel therapeutics and the manufacture of
affordable anaemia and cancer recovery treatments.
New acquisitions espAfrika, the Cape Town International Jazz Festival and
Sure Tripos Travel have boosted revenues and contributed to the improved
operating position of the Group.
Sekunjalo acquired a 30% stake after year end in British Telecom`s (BT) South
African business. BT is a world provider of communications solutions and
services operating in 170 countries. This partnership will explore
opportunities for the benefit of both parties.
Commenting on the prospects for the Group, Mo Kajee said that Sekunjalo is
the empowerment partner of choice to many large and small businesses, it has
solid B-BBEE credentials and an international reputation as a founder company
of the World Economic Forum (WEF) New Champions and Community Global Growth
Company (CGGC). Sekunjalo continues to monitor global and local markets as it
is still committed to listing both its ICT and Biotech investments.
ENDS
Contact details: Sekunjalo Investments Limited
Mohamed (Mo) Kajee, CEO
Tel: 2721 419 0124
Fax: 2721 419 0731
Email: mok@sekunjalo.com
Date: 26/11/2008 07:06:01 Produced by the JSE SENS Department.
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