| Thu 28 May 2009, 8:00 | | QPG - Quantum Property - Unaudited condensed consolidated interim results for |
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QPG
QPG
QPG - Quantum Property - Unaudited condensed consolidated interim results for
the six months ended 28 February 2009
QUANTUM PROPERTY GROUP LIMITED
(formerly Anbeeco Investment Holdings Limited)
Incorporated in the Republic of South Africa
(Registration number 1984/002788/06)
Share code: QPG & ISIN: p
("QPG" or "the company" or "the group")
UNAUDITED CONDENSED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED 28
FEBRUARY 2009
CONDENSED GROUP BALANCE SHEETS
Unaudited Audited
28 February 2009 29 February 2008
(R`000) (R`000)
ASSETS
Non-current assets 290 546 83 645
Investment property 290 546 83 645
Current assets 60 143 9 896
Employee benefits 40 000 -
Accounts receivable 3 498 1 981
Deposits 1 000 -
Deferred taxation 6 221 -
Bank balances 9 424 7 915
Total assets 350 689 93 541
EQUITY AND LIABILITIES
Capital and reserves 78 569 (15 498)
Non-current liabilities 254 776 92688
Long term borrowings 228 251 71 164
Loans from related parties 26 525 21 524
Current liabilities 17 344 16 351
Accounts payable 15 378 14 258
Bank overdraft 1 966 2 093
Total equity and liabilities 350 689 93 541
Number of shares in issue 152 144 365 100
Net asset value and net tangible asset 52 (15 497 462)
value per share (cents)
CONDENSED GROUP INCOME STATEMENTS
Unaudited Unaudited
6 months ended 6 months ended
28 February 2009 29 February 2008
(R`000) (R`000)
Gross revenue - -
Operating costs (2 665) (1 750)
Operating loss (2 665) (1 750)
Fair value adjustment (38) (409)
Interest received 329 337
Finance costs (1 933) (1 656)
Loss before taxation (4 307) (3 478)
Taxation 9 911 -
Net profit/(loss) for period 5 604 (3 478)
Weighted average number of shares in 114 108 299 100
issue
Earnings/(loss) per share (cents) 5 (3 478 059)
Headline earnings/(loss) per share 5 (3 478 059)
(cents)
Diluted earnings/(loss) per share 5 (3 478 059)
(cents)
Diluted headline earnings/(loss) per 5 (3 478 059)
share (cents)
CONDENSED GROUP CASH FLOW STATEMENTS
Unaudited Unaudited
6 months ended 6 months ended
28 February 2009 29 February 2008
(R`000) (R`000)
Cash flows from operating activities (9 001) 7 940
Cash flows from investing activities (125 630) (43 425)
Cash flows from financing activities 123 355 42 423
(Decrease)/increase in cash and cash (11 276) 6 938
equivalents
Cash and cash equivalents at beginning 18 734 (1 116)
of period
Cash and cash equivalents at end of 7 458 5 822
period
CONDENSED STATEMENT OF CHANGES IN EQUITY
Unaudited for the period ended 28 February 2009
Share Share Acquisition Retained
Capital Premium reserve earnings Total
(R`000) (R`000) (R`000) (R`000) (R`000)
Balance 1 September 2007 - - - (12 020) (12 020)
Net loss for the period (3 478) (3 478)
Balance 29 February 2008 - - - (15 498) (15 498)
Net profit for the period 49 609 49 609
Balance 1 September 2008 - 34 111 34 111
Issue of ordinary shares 305 50 640 50 945
Acquisition reserve arising (7 595) (7 595)
on reverse take-over
Net profit for the period 5 604 5 604
Listing costs written off
against share premium (4 496) (4 496)
Balance 28 February 2009 305 46 144 (7 595) 39 715 78 569
COMMENTARY
Introduction
The directors are pleased to present the maiden interim results for the six
months ended 28 February 2009 ("the interim period") for the diversified
property company QPG.
Notwithstanding tough trading conditions as a result of the global financial
crisis, the interim period saw the company debut strongly on AltX, advance
existing development projects and initiate a strategic acquisition and other
corporate activities to position QPG for future growth.
For one month of the interim period the company traded as Anbeeco Investment
Holdings Limited ("Anbeeco") which was listed on the Main Board of the JSE.
The company was subsequently reconstituted as a diversified property group
listed on AltX. On 13 October 2008 Anbeeco acquired the entire issued share
capital of A Million Up Investments 105 (Proprietary) Limited ("AMU"), which
holds identified property assets, for R30 million settled by the issue of 120
million shares in Anbeeco at 25 cents per share. This resulted in the reverse
takeover of Anbeeco by AMU ("the AMU acquisition").
On the AMU acquisition date the company`s listing was transferred to AltX
under the new name of Quantum Property Group Limited. QPG`s positive entry
onto AltX was preceded by an initial successful capital raising.
Profile
QPG has a three-pronged growth strategy encompassing:
Developments
Investments
Trading
This is intended to build a quality, sustainable portfolio with diversified
revenue streams.
`15 on Orange` is a landmark integrated development in Cape Town and currently
forms the bedrock of QPG`s property portfolio. The benchmark 5-star hotel,
boutique retail centre and parking garage is set to revolutionise leisure in
the Western Cape ahead of international competitors in the region, and is
forecast to generate significant returns for the company as set out in the
Revised Listings Particulars dated 25 August 2008 (the "RLPs"). QPG is set to
derive ongoing income from the leasing and operation of the 15 on Orange
Hotel, the latter to be performed jointly with Protea Hotel Group and which
will be managed by African Pride (the premier 5-star brand in the Protea Hotel
Group`s stable), and from the parking bays and retail tenant rentals. 15 on
Orange will be valued at almost R1 billion on completion in July 2009.
Listing on AltX
Notwithstanding the negative impact of the international economic meltdown on
investor confidence, QPG successfully raised R32.3 million prior to listing.
The share debuted well on AltX at R2.25, a marked premium to the pre-listing
placement price of between R1.50 and R1.80 a share.
Subsequent to listing, QPG has been ranked as one of AltX`s Top 15 Companies.
Proposed Acquisition
Furthering its strategy to accumulate a quality investment-grade portfolio,
QPG is continuing in negotiations with Savana Trust to acquire 25% of the
issued share capital of Savana Property (Proprietary) Limited ("Savana") for a
total investment of R75 million. Savana is developing the R1.4 billion Sandton
Eye, a new mixed-use project currently under construction in the epicentre of
the Sandton business hub. Bonheur 92 General Trading (Proprietary) Limited,
QPG`s management company, will be appointed as the development manager
responsible for construction, leveraging its directors` extensive development
experience of more than R4 billion worth of major projects to date.
Similarly to 15 on Orange, the Sandton Eye development includes 5 000 m2 of
prime boutique retail, 20 000 m2 of offices, a 200-roomed 5-star Radisson Blu
hotel and 12 luxury penthouse suites.
Sandton Eye is of the same exclusive genre and quality standard as 15 on
Orange and is therefore a logical progression for QPG`s property portfolio.
The development is strategically positioned opposite the Gautrain Station
which is expected to see about 12 000 commuters an hour, and the main Bus
Rapid Transit station is situated at the entrance to Sandton Eye.
With Sandton representing one of the highest socio-economic profiles in the
country and the second largest office node in Southern Africa, Sandton Eye is
ideally positioned to capitalise on local affluence, executives, Gautrain and
bus commuters and tourists.
Growth strategy
To enable QPG to give effect to its acquisition and expansion strategy as
outlined in the RLPs, Grindrod Bank was appointed during the interim period as
corporate advisors in respect of capital raising.
While adverse economic conditions have intensified since the initial capital
raising prior to QPG`s listing on AltX, the directors` longstanding track
records in property development and asset management continue to offer comfort
with the proven ability to deliver returns even in difficult markets.
Directorate
With effect from 20 February 2009 Johann Opperman was appointed to the board
as an executive director. As a former Director of Standard Bank`s Property
Finance Division, and with over 20 years` experience, Opperman is expected to
contribute strongly to QPG`s growth prospects.
Prospects
`15 on Orange` positions the group to take advantage of the robust tourism
industry in Cape Town which is set to benefit further from the 2009
Confederations Cup and the 2010 World Cup Soccer event. The development is on
schedule for completion in July 2009.
Capital raising efforts remain ongoing. A number of attractive opportunities
have been identified and are in the process of being assessed.
Basis of preparation and accounting policies
The unaudited condensed consolidated interim results for QPG for the interim
period have been prepared in accordance with International Financial Reporting
Standards, IAS 34: Interim Financial Reporting and in the manner required by
the Companies Act, 1973 (Act 61 of 1973), as amended, and the Listings
Requirements of the JSE, and are consistent with the audited results of
previous periods.
The accounting treatment of the AMU acquisition is not in accordance with the
provisions of IFRS 3 "Business Combinations" on the basis that Anbeeco on its
own did not constitute a sustainable business and therefore does not fall into
the scope of IFRS 3. Pursuant to the AMU acquisition, a parent and subsidiary
relationship exists between Anbeeco, renamed QPG, and AMU and consolidated
accounts will be presented in accordance with IAS 27 and the Companies Act.
This transaction is then accounted for similarly to a reverse acquisition but
without recognising goodwill.
The condensed consolidated interim results have not been audited or reviewed
by the company`s auditors Grant Thornton.
QPG does not have separate identifiable segments and therefore no segmental
report has been prepared.
Comparatives
QPG`s unaudited condensed consolidated interim results are compared, for the
Balance Sheet to the audited Balance Sheet of AMU at 29 February 2008 and for
the Income Statement, Cash Flow Statement and Statement of Changes in Equity
to the unaudited Income Statement, Cash Flow Statement and Statement of
Changes in Equity of AMU for the six months ended 29 February 2008.
BY ORDER OF THE BOARD
28 May 2009
Directors Registered office
C Cohen (Chairman), G Itzikowitz Nineteenth floor, Sandton
(Chief Executive Officer), MR City Office Tower, corner
Taitz (Financial Director), IS 5th Street and Rivonia
Schmidt, JT Opperman, BH Sneech Road, Sandton, 2196
(non-executive), I Levitt (non-
executive), CJ Kupritz (non-
executive), BS Cohen (non-
executive)
Company secretary: Transfer secretaries
Corporate and Merchant Computershare Investor
Administrators (Proprietary) Services (Proprietary)
Limited Limited
70 Marshall Street,
Johannesburg, 2001
(PO Box 61051,
Marshalltown, 2107)
Designated adviser
Merchantec (Proprietary) Limited
Date: 28/05/2009 08:00:02 Produced by the JSE SENS Department.
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