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MVG / MVGP - Mvelaphanda Group - Unaudited Results for the Six Months Ended
31 December 2008
MVELAPHANDA GROUP LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1995/004153/06
Ordinary share code: MVG & Preference share code: MVGP
Ordinary share ISIN: ZAE000060737 & Preference share ISIN: ZAE000073540
("Mvela Group" or "the Group")
UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2008
KEY FEATURES
- Revenue increased by 11% to R1 890 million and increased by 15% on a
comparable basis
- EBITDA increased by 8% to R168 million on a comparable basis
- Cash generated from operations increased to R219 million
- Intrinsic net asset value per ordinary share at 31 December 2008 of R7,36
(2007: R11,64)
Yolanda Cuba, CEO commented: "Deteriorating market conditions caused the
intrinsic net asset value of our investments to decline by almost R2 billion
or 34% from a year ago despite their sound operational nature.
The impact on the income statement was positive however with the fair value
adjustment amounting to R106 million from a loss of R679 million in the
corresponding period.
Our operations in Mvelaserve continued to improve with steady increases in
revenue and profit, though at a slightly reduced margin.
We are confident that our operations and investments are appropriately
structured to withstand the current economic uncertainty and to benefit from
sound financial and operational management in the long run.
Our portfolio is optimally balanced with sufficient diversity and defensive
elements to deliver stronger intrinsic net asset values when the economy
improves, earnings grow and valuations settle."
Enquiries
Mvela Group 011 290 4200
Ernst R?th 011 290 4209
College Hill 011 447 3030
Johannes van Niekerk 082 921 9110
SUMMARISED GROUP BALANCE SHEET
Unaudited Unaudited Audited
31 December 31 December 30 June
2008 2007 2008
R`000 R`000 R`000
ASSETS
Non-current assets 5 638 290 5 496 705 5 521 050
Property, plant and equipment 298 738 437 324 268 150
Intangible assets 859 966 819 011 851 429
Investments in associates 769 614 12 107 779 995
Strategic investments 3 577 455 4 179 937 3 524 859
Financial asset - derivative 3 242 - 3 242
financial instrument
Deferred taxation 129 275 48 326 93 375
Current assets 1 302 857 1 467 522 1 546 227
Strategic investments 37 958 11 717 33 652
Other current assets 726 480 651 575 642 562
Cash and cash equivalents 538 419 804 230 870 013
Assets in disposal group held for - - 280 295
sale
TOTAL ASSETS 6 941 147 6 964 227 7 347 572
EQUITY AND LIABILITIES
Capital and reserves 3 894 713 5 286 705 3 943 488
Shareholders` equity 3 750 508 5 050 759 3 820 259
Minority interest 144 205 235 946 123 229
Non-current liabilities 2 177 129 963 041 1 161 603
Interest-bearing liabilities 1 743 916 431 622 769 541
Non-interest-bearing liabilities 357 2 501 2 653
Deferred taxation 432 856 528 918 389 409
Current liabilities 869 305 714 481 2 065 586
Interest-bearing liabilities 80 779 102 244 61 545
Non-interest-bearing liabilities 2 697 3 337 3 977
Accrued interest-bearing - - 1 288 943
liabilities*
Other current liabilities 785 829 608 900 711 121
Liabilities in disposal group - - 176 895
held for sale
TOTAL EQUITY AND LIABILITIES 6 941 147 6 964 227 7 347 572
Net number of ordinary shares in 406 665 416 641 406 665
issue (000)
Diluted net number of ordinary 465 482 474 039 464 063
shares in issue (000)#
Fully diluted net number of 589 907 598 464 588 488
ordinary shares in issue (000)##
Net asset value per ordinary 805,7 1 065,5 823,2
share (cents)
Net tangible asset value per 593,2 882,5 619,6
ordinary share (cents)
Fully diluted net asset value per 635,8 844,0 649,2
ordinary share (cents)
Fully diluted net tangible asset 468,1 699,0 488,6
value per ordinary share (cents)
*Due to the non-finalisation of the funding structure of the Avusa
transaction, the debt of R1 289 million was credited to current interest-
bearing liabilities. Subsequent to year ended 30 June 2008, R1 010 million
was financed by financial institutions.
#Calculated on the basis that all preference shares will be converted into
ordinary shares after November 2009.
##Calculated on the basis that all preference shares and BEE shares will be
converted into ordinary shares in accordance with their terms.
SUMMARISED GROUP INCOME STATEMENT
Unaudited Unaudited Audited
31 December 31 December 30 June
2008 Change 2007 2008
R`000 % R`000 R`000
Revenue 1 889 659 11 1 699 926 3 538 918
Profit from operations 111 613 (11) 125 450 246 747
Net interest (87 977) 36 050 57 128
(paid)/received
Share of (loss)/profit (12 733) 707 (526 262)
from associates
Net fair value 106 191 116 (679 461) (1 620 105)
adjustments and
profit/(loss) from
investments
Cost of BEE transaction (8 088) (8 524) (16 175)
Goodwill impaired - - (11 486)
Net profit/(loss) before 109 006 121 (525 778) (1 870 153)
taxation
Taxation expense (62 787) 66 192 184 960
Normal, deferred, (50 582) 68 724 189 850
capital gains and
foreign taxation
Secondary tax on (12 205) (2 532) (4 890)
companies
Net profit/(loss) after 46 219 110 (459 586) (1 685 193)
taxation
Attributable to:
Ordinary shareholders 7 680 (402 260) (1 532 789)
Other shareholders 38 539 (57 326) (152 404)
- Preference 14 919 14 919 30 016
shareholders
- Minority shareholders 23 620 (72 245) (182 420)
46 219 110 (459 586) (1 685 193)
Weighted average net 406 665 422 536 416 564
number of ordinary
shares in issue (000)
Diluted weighted average 465 482 479 934 473 962
net number of ordinary
shares in issue (000)#
Earnings/(loss) per 1,9 102 (95,2) (368,0)
ordinary share (cents)
Headline earnings/(loss) 1,3 101 (95,2) (362,6)
per ordinary share
(cents)
Diluted earnings/(loss) 4,9 106 (80,7) (317,1)
per ordinary share
(cents)
Diluted headline 4,3 105 (80,7) (312,4)
earnings/(loss) per
ordinary share (cents)
Dividend/distribution - 6,0 27,0
per ordinary share
(cents)
Interim - 6,0 6,0
Final - - 16,0
Special - - 5,0
Dividends per preference 27,50 27,6 55,0
share (cents)
Interim 27,50 27,6 27,7
Final - - 27,3
#Calculated on the basis that all preference shares will be converted into
ordinary shares after November 2009.
##Calculated on the basis that all preference shares and BEE shares will be
converted into ordinary shares in accordance with their terms.
SUMMARISED GROUP CASH FLOW STATEMENT
Unaudited Unaudited Audited
31 December 31 December 30 June
2008 2007 2008
R`000 R`000 R`000
Profit from operations 111 613 125 450 246 747
Non-cash items 67 885 67 532 144 670
Working capital 39 434 (130 153) (120 268)
Cash generated from operations 218 932 62 829 271 149
Net interest (paid)/received (47 949) 36 050 73 134
Investment income 8 890 5 345 11 263
Normal taxation paid (68 131) (67 525) (85 699)
Cash available from operating 111 742 36 699 269 847
activities before the payment of
capital gains tax
Capital gains tax paid - (61 044) (61 044)
Cash available/(utilised) from 111 742 (24 345) 208 803
operating activities
Cash effects of investing 13 520 (233 653) (1 904 183)
activities
Cash effects of financing (357 485) (274 559) 1 244 770
activities
Dividends paid (100 438) (14 919) (30 016)
Net movement in cash and cash (332 661) (547 476) (480 626)
equivalents
Cash and cash equivalents at the
beginning of the period 871 080 1 351 706 1 351 706
Cash in disposal group held for - - (1 067)
sale
Cash and cash equivalents at the 538 419 804 230 870 013
end of the period
SUMMARISED GROUP STATEMENT OF CHANGES IN EQUITY
Unaudited Unaudited Audited
31 December 31 December 30 June
2008 2007 2008
R`000 R`000 R`000
Balance at the beginning of the 3 943 488 6 000 490 6 000 490
period
Disposal/(acquisition) of - (11) 445
subsidiaries
Shares bought back - (175 149) (259 546)
Cost of BEE transaction 8 088 7 310 16 175
Net profit/(loss) after taxation 46 219 (459 586) (1 685 193)
Dividends/distributions (103 082) (86 349) (128 883)
3 894 713 5 286 705 3 943 488
RECONCILIATION BETWEEN NET PROFIT/(LOSS) ATTRIBUTABLE TO ORDINARY
SHAREHOLDERS AND HEADLINE NET PROFIT/(LOSS) ATTRIBUTABLE TO ORDINARY
SHAREHOLDERS
Unaudited Unaudited Audited
31 December 31 December 30 June
2008 2007 2008
R`000 R`000 R`000
Net profit/(loss) 7 680 (402 260) (1 532 789)
attributable to ordinary
shareholders
After tax and minority
interest adjustments:
Disposal/impairment of (1 965) 3 025 12 631
subsidiaries and investments
Profit on sale of property, (460) (3 158) (1 994)
plant and equipment
Impairment of goodwill - - 11 486
(gross of tax and minority
interest)
Headline net profit/(loss) 5 255 (402 393) (1 510 666)
attributable to ordinary
shareholders
SEGMENTAL INFORMATION
31 DECEMBER 2008 UNAUDITED 31 UNAUDITED 31 AUDITED 30
DECEMBER 2008 DECEMBER JUNE 2008
2007
Segmental information
R`000 R`000 R`000
NET ASSETS
Consumer services 2 677 641 2 657 286 2 539 342
Financial services 1 083 032 1 586 694 912 644
Infrastructure and 247 995 483 809 377 555
Construction.
Telecoms, Media and ( 239 620) 61 498 ( 473 636)
Technology
Cash, term deposits and 183 216 554 388 644 536
other investments
Non-current interest bearing ( 50 598) ( 50 017) ( 50 000)
term loan
Share appreciation rights ( 6 953) ( 6 953) ( 6 953)
3 894 713 5 286 705 3 943 488
REVENUE
Consumer services 1 889 659 1 699 926 3 538 918
Financial services - - -
Infrastructure and - - -
Construction.
Telecoms, Media and - - -
Technology
1 889 659 1 699 926 3 538 918
NET PROFIT/(LOSS) AFTER
TAXATION
Consumer services 256 814 3 866 93 942
Financial services 185 211 ( 439 298) (1 139 525)
Infrastructure and ( 119 893) ( 10 068) ( 116 696)
Construction.
Telecoms, Media and ( 267 825) ( 5 562) ( 495 253)
Technology
Impairment of goodwill - - ( 11 486)
Cost of BEE transaction ( 8 088) ( 8 524) ( 16 175)
46 219 ( 459 586) (1 685 193)
COMMENTARY
FINANCIAL REVIEW
INTRODUCTION
The Group derives income from its operating and strategic investment
activities which are more fully detailed in the Investments section.
FINANCIAL PERFORMANCE
Revenue of R1 890 million for the six-month period ended 31 December 2008 is
11% ahead of the R1 700 million for the corresponding period.
Profit from operations amounted to R112 million (2007: R125 million). Net
interest paid for the six-month period ended 31 December 2008 was R88
million compared to net interest earned in the previous corresponding period
of R36 million. Gross interest earned reduced to R32 million from R51
million in 31 December 2008 as a result of lower cash levels. Asset finance
costs remained relatively flat at R12 million for the period.
Income from investments increased to R106 million compared to a loss of R679
million for the comparable period which is mainly attributable to a net fair
value profit adjustment of R95 million. Loss from associates amounted to R13
million (2007: Rnil) which is mainly due to a profit of R40,2 million from
the share of Avusa`s retained profits and R53 million impairment in the
investment in Avusa.
Earnings per share and headline earnings per share are 1,9 cents per share
and 1,3 cents per share respectively as compared to a loss of 95,2 cents per
share and 95,2 cents per share respectively in 31 December 2007. The
earnings per share and headline earnings per share calculations are based on
a weighted average net number of ordinary shares in issue of 407 million
shares at 31 December 2008 which decreased by 2,4% from the 417 million
ordinary shares at 31 December 2007 as a result of the share buy-backs
during the previous period. The 465 million diluted weighted average net
number of ordinary shares in issue is calculated on the basis that all the
preference shares will be converted to ordinary shares on 4 November 2009.
CASH POSITION
The Group`s cash position reduced by R333 million to R538 million at 31
December 2008 (30 June 2008: R871 million). The reduction in cash is mainly
due to R267 million paid for the acquisition of Avusa, R100 million paid out
as dividends or distributions, net interest paid of R48 million and taxes
paid of R68 million, off-set by R104 million in shareholders` loan repayment
from Life Healthcare.
FINANCIAL POSITION
Total interest-bearing liabilities at 31 December 2008 decreased to R1 825
million from R2 120 million at 30 June 2008 mainly as a result of the cash
payment of R267 million made in respect of the Avusa investment.
The debt-equity ratio (where debt includes total liabilities) improved to
76% at 31 December 2008 from 86% at 30 June 2008 as a result of a decrease
in the debt level together with the improvement in shareholders` interest
resulting from the positive results achieved for the reporting period.
CAPITAL STRUCTURE
No new ordinary shares or preference shares were issued and no share buy-
backs were done during the reporting period.
The issued share capital comprises of 443 million ordinary shares and 54,7
million preference shares, of which 35,7 million of the ordinary shares are
held as treasury shares.
Net tangible asset value per ordinary share, which is calculated based on
465 million ordinary shares in issue, assuming that the preference shares
are converted into ordinary shares after November 2009, decreased by 3,55%
to R5,93 at 31 December 2008 from R6,20 at 30 June 2008.
After further adjustments following the final dividend for the 2008
financial year, the convertible perpetual cumulative preference shares are
convertible into ordinary shares in the ratio of 1,075 ordinary shares for
each preference share. In practice this relates to a conversion price of
R9,30 (30 June 2008: R9,53) and amount to 58,8 million ordinary shares
being issued (should all preference shareholders exercise the option to
convert). The conversion is at the instance of the holder which can be
exercised between 4 November 2009 and 4 November 2010 after which date the
preference shares are redeemable either at the instance of Mvela Group or
remain as perpetual preference shares.
INTRINSIC NET ASSET VALUE
Intrinsic net asset value per ordinary share decreased by R4,28 (37%) to
R7,36 at 31 December 2008 from R11,64 at 31 December 2007 (30 June 2008:
R8,68). Reduced cash levels and a more conservative approach in the
valuation of subsidiaries gave rise in the above decline in Mvela Group`s
intrinsic net asset value per share at 31 December 2008.
The intrinsic net asset value per ordinary share net of capital gains
taxation and debt is set out in the table below:
31 December 2008 31 December 2007 30 June 2008
Intrinsic Per Intrinsic Per Intrinsic Per
net asset share net asset share net asset share
value 1,2 value 1,2 value 1,2
Rm R Rm R Rm
Absa Group 860 1,85 1 366 2,88 716 1,54
Avusa (516) (1,11) - - (379) (0,82)
Life 1 431 3,07 1 332 2,81 1 425 3,07
Healthcare
Group Five 259 0,56 457 0,96 361 0,78
Mvelaserve 1 039 2,23 1 501 3,16 1 374 2,96
Vox Telecom (184) (0,40) 61 0,13 (14) (0,03)
Other 50 0,11 56 0,11 62 0,13
Net cash 488 1,05 753 1,59 489 1,05
TOTAL 3 427 7,36 5 526 11,64 4 034 8,68
1 Based on the diluted net number of 465 million ordinary shares after share
buy-backs and assuming that all the preference shares will be converted into
ordinary shares after November 2009 (2007: 474 million).
2 The redeemable option-holding shares issued in June 2007 have not been
taken into account in calculating the intrinsic net asset value per ordinary
share as the minimum option strike price of R17,50 is greater than the
current Mvela Group ordinary share price.
Based on Mvela Group`s ordinary share price listed on the JSE Limited
("JSE") of R4,95 on 31 December 2008, the ordinary shares were trading at a
discount of 33% to the Group`s intrinsic net asset value per ordinary share
of R7,36 at that date.
INVESTMENTS
Mvelaserve Limited ("Mvelaserve")
Mvelaserve further consolidated its position as one of the leading providers
of outsourced support services to the South African market. The
reorganisation of Mvelaserve into a business capable of delivering
consistent free cash flows was largely complete with the disposal of
Trollope Mining Services ("TMS") on 1 October 2008.
Revenue for the six-month period ended 31 December 2008 increased by 11% to
R1 890 million (2007: R1 700 million). EBITDA for the period was R198
million, in line with prior corresponding period. Operating margin declined
to 6,8% (2007: 7,6%).
The results of TMS are consolidated for the first three months of the
reporting period. If the results of TMS are excluded then, on a comparable
basis, revenue for the remaining businesses of Mvelaserve increased by 15%
to R1 742 million and EBITDA increased by 8% to R168 million. Operating
margin for Mvelaserve, excluding TMS, was 6,9% (2007: 7,3%).
Cash generated from operations for the six-month period ended 31 December
2008 amounted to R219 million compared to R63 million generated in the prior
corresponding period. This pleasing improvement in cash-generation is
principally attributable to improved working capital management within
Protea Coin Group ("Protea Coin") and Total Facilities Management Company
("TFMC").
Capital expenditure on property, plant and equipment, excluding TMS,
amounted to R81 million (2007: R94 million). Approximately 50% of this
capital expenditure was attributable to the replacement of assets with the
balance being used to expand and grow Mvelaserve. The net inflows from asset
financing relating to this capital expenditure were approximately R39
million with the balance of the capital expenditure funded from existing
cash resources.
Depreciation and amortisation for the six-month period ended 31 December
2008 was R69 million (2007: R71 million). Proceeds on disposal of property,
plant and equipment for the six-month period ended 31 December 2008 was R4
million (2007: R8,7 million).
The intrinsic net asset value per share of Mvela Group in Mvelaserve
decreased to R2,23 per Mvela Group ordinary share at 31 December 2008
compared to R3,16 per Mvela Group ordinary share at 31 December 2007. The
decrease is attributable to a decline in market multiples used to value
Mvelaserve and as a result of valuing TFMC on a discounted cash flow basis
over the remainder of the Telkom Contract.
FACILITIES MANAGEMENT
The half-year performance of TFMC in both of its divisions, namely the
Telkom Contract and Customised Solutions, was in line with expectations and
the prior corresponding period. Substantial consensus has been reached on
most of the technical aspects relating to the proposed renewal of the Telkom
Contract
SECURITY
Protea Coin delivered a much improved result for the six-month period ended
31 December 2008 highlighting the continuing turnaround of the ex-Coin
businesses. Growth in year-on-year revenue of 15% was attributable to the
mining, armed response and assets-in-transit (`AIT`) divisions. Management
has improved the working capital cycle within this business unit and
strengthened the brand as a leading force in the security industry.
CATERING AND CLEANING
We are pleased to announce the renaming of our cleaning offering to
Mvelaserve Cleaning to align it with the Mvelaserve brand. The roll-out of
the higher margin offerings of infrastructure project support services and
industrial cleaning, at RoyalSechaba and Mvelaserve Cleaning respectively,
was slower than anticipated but remain attractive revenue streams in the
medium-term. Although the contract base for both businesses grew steadily
over the period, margins are still below the target of 5%. Given the
considerable impact of food price and wage inflation, operational
efficiencies will be an area of focus over the next eight months.
DIVERSIFIED SERVICES
EBITDA was negatively impacted by a sharp reduction in performance fees at
Novare Holdings in line with the rest of the financial services industry.
The new Khuseti Holdings centralised manufacturing facility of the King Pie
product range was successfully rolled out during the six-month period ended
31 December 2008, although it incurred greater start-up costs than
anticipated. Zonke Monitoring Systems and Contract Forwarding performed in
line with expectations.
STRATEGIC INVESTMENTS
FINANCIAL SERVICES SECTOR
The investment in Absa Group continues to be affected by the general
slowdown in economic activity and the downturn in the equity market. Despite
the tough economic conditions, Absa Group`s results for the year ended 31
December 2008 were above market expectation, with headline earnings
increasing by 5,3%. The Absa Group share price decreased to R108,15 per
share at 31 December 2008 from R111 per share at 31 December 2007. This
decrease of 3% in the Absa Group share price resulted in a decrease in the
intrinsic value (net of CGT and debt) of Mvela Group`s effective interest in
Absa Group, to R860 million at 31 December 2008, from R1 366 million at 31
December 2007. Mvela Group`s effective in Absa Group comprised 25% of Mvela
Group`s intrinsic net asset value at 31 December 2008.
The Absa Group empowerment entity, Batho Bonke Capital (Pty) Limited ("Batho
Bonke"), through which Mvela Group owns its interest in Absa Group, is
currently in its option exercise period which commenced on 1 July 2007. The
last day to exercise the options is 1 June 2009. The current equity and
credit market conditions make raising debt capital to exercise the options a
challenging exercise. Batho Bonke`s intention is to exercise the options
within this option period and is currently working with various parties to
realise value from the structure.
CONSUMER SERVICES SECTOR
Life Healthcare performed well operationally for the 12 months ended 31
December 2008. Life Healthcare produced a recurring EBITDA for the rolling
12 months to December 2008 of R1 638 million excluding the profits from the
sale of the PHG hospitals. Owing to the significant cash flow generation
abilities of the company, the shareholders continue to receive cash
distributions in the form of repayments of shareholder loans.
In line with Life Healthcare`s peer group`s recent share price performance,
we have kept the EBITDA multiple at 8 times, resulting in R1 431 million in
the intrinsic value (net of CGT and debt) of Mvela Group`s effective
interest in Life Healthcare compared to R1 332 million in 31 December 2007.
The reason for the nominal increase in value attributable to Mvela Group is
due to the reduction in EBITDA relating to the sale of the PHG hospitals in
the UK. Mvela Group`s investment in Life Healthcare comprises 42% of Mvela
Group`s intrinsic net asset value at 31 December 2008.
CONSTRUCTION AND INFRASTRUCTURE SECTOR
The investment in Group Five continues to deliver satisfactory returns to
Mvela Group owing to the positive economic climate relating to
infrastructure spend. The company produced good results for the six-month
period ended 31 December 2008 with operating profit before a fair value
adjustment and associates increasing by 35% to R377 million and profit after
tax from continuing operations up 43%. The intrinsic value of Mvela Group`s
investment in Group Five shares decreased to R259 million at 31 December
2008 from R457 million at 31 December 2007 as a result of a decrease in the
Group Five share price to R35,50 per share at 31 December 2008 (2007: R55).
Mvela Group`s investment in Group Five comprises 8% of the Group`s intrinsic
net asset value at 31 December 2008.
TELECOMS, MEDIA AND TECHNOLOGY SECTOR
Mvela Group`s 12,3% shareholding in Vox Telecom has failed to deliver
positive returns owing to the collapse of the Vox Telecom share price in
September 2008. Vox Telecom continues to trade well in a difficult market
with customers looking to lower their telecommunications costs. Mvela Group
deliberately adopted an approach of acquiring a small interest in an
alternative telecom company to ensure that the risk to shareholders is
minimised yet taking advantage of opportunities in the sector. The Vox
Telecom share price on the JSE at 31 December 2008 was 75 cents per share
resulting in a negative intrinsic value of R184 million net of CGT and debt.
The investment in Avusa was concluded on 1 July 2008 and is treated as an
associate in the records of Mvela Group. Since then the general downturn in
economic activity has had its impact on the businesses of Avusa. Avusa
announced its results for the six-month period ended 30 September 2008 on 20
November 2008 and, amidst a tougher macroeconomic environment, the company
delivered an increase of 12% in revenue and a 12% increase in profit after
taxation. Although this investment is equity accounted in the records of
Mvela Group, on 31 December 2008 the value of the investment had declined by
33% from R797 million to R534 million. This decline is in line with the
general adverse performance of the global equity market and the downturn in
economic activity affecting trading conditions. The fundamentals of the
business, however, remain sound and Avusa management is taking all the
necessary measures to rationalise costs.
ACCOUNTING POLICIES AND INTERNATIONAL FINANCIAL REPORTING STANDARDS
These summarised consolidated interim financial statements for the six-month
period ended 31 December 2008 have been prepared in accordance with Interim
Financial Reporting (IAS) 34, the JSE Listing Requirements and in the manner
required by the Companies Act of South Africa.
The summarised consolidated interim financial information should be read in
conjunction with the annual financial statements for the year ended 30 June
2008, which have been prepared in accordance with International Financial
Reporting Standards (IFRS). The accounting policies applied are consistent
with those of the annual financial statements for the year ended 30 June
2008, as described in those financial statements.
ANALYST PRESENTATION
An audiocast of the presentation to analysts and investors will be made
available on the Mvela Group website from 15h00 on 26 February 2009.
BOARD CHANGES
Mark Willcox resigned as a Non-Executive Director of Mvela Group on 4
February 2009. He remains CEO and one of the controlling shareholders in
Mvela Holdings.
The Board thanks him for his valuable contribution to the company.
INTERIM DIVIDEND
ORDINARY SHARES
The directors of Mvela Group have resolved not to declare an interim
dividend for the six-month period ended 31 December 2008 given the current
volatile market conditions.
PREFERENCE SHARES
The directors of Mvela Group have resolved to declare a cash preference
dividend (number 7) of 27,50 cents per preference share, for the six-month
period ended 31 December 2008, to preference shareholders. The last day to
trade "cum" the preference dividend in order to participate in the
preference dividend is Friday, 27 March 2009. The preference shares of Mvela
Group will commence trading "ex" the preference dividend from the
commencement of business on Monday, 30 March 2009 and the record date will
be Friday, 3 April 2009. The preference dividend will be paid to preference
shareholders on Monday, 6 April 2009. Preference share certificates may not
be dematerialised or rematerialised between Monday, 30 March 2009 and
Friday, 3 April 2009, both days inclusive.
PROSPECTS
We are confident that our operations and investments are appropriately
structured to withstand the current economic uncertainty and to benefit from
sound financial and operational management in the long run.
Mvelaserve is particularly well positioned to participate in the increased
flow of outsourcing expected as businesses seek to improve cost base
efficiency.
Our portfolio is optimally balanced with sufficient diversity and defensive
elements to deliver stronger intrinsic net asset values when the economy
improves, earnings grow and valuations settle.
TMG Sexwale YZ Cuba
Chairman Chief Executive Officer
26 February 2009
Sandton
EXECUTIVE DIRECTORS
TMG Sexwale (Executive Chairman), MSM Xayiya (Executive Deputy Chairman), YZ
Cuba (Chief Executive Officer), GE R?th (Chief Financial Officer),
WV Mavimbela
NON-EXECUTIVE DIRECTORS
KD Dlamini*, BD Hopkins*, OA Mabandla*, D Moshapalo*, MZ Mpofu*,
RM Patel*, CD Stein (*Independent)
REGISTERED OFFICE
Hunts End, 36 Wierda Road West, Wierda Valley, Sandton, 2196
Telephone: 27 11 290 4200, Telefax: 27 11 783 0027
TRANSFER SECRETARIES
Computershare Investor Services (Pty) Limited, 70 Marshall Street,
Johannesburg, 2001
A copy of these results are available on the Mvelaphanda Group website at:
www.mvelagroup.co.za
Sandton
26 February 2009
Sponsor to Mvela Group
Deutsche Securities (SA) (Proprietary) Limited
Date: 26/02/2009 08:30:06 Produced by the JSE SENS Department.
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