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BJM
BJM
BJM - Barnard Jacobs Mellet Holdings - Preliminary Audited Results For The Year
Ended 31 March 2009
BARNARD JACOBS MELLET HOLDINGS LIMITED
Registration number: 1995/004798/06
(Incorporated in the Republic of South Africa)
ISIN: ZAE000014262 & JSE code: BJM
("the Group", "BJM" or "the Company")
PRELIMINARY AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2009
- Headline earnings per share of 43 cents
- Net asset value per share of 499 cents
- Dividend per share of 10 cents
COMMENTARY
OPERATIONS
The year under review witnessed a crisis in the global financial system which
was unprecedented in both its vehemence and immensity. Notwithstanding this dire
macro environment, BJM achieved a measure of growth in several areas of the
business; a direct result of the strategic reorganisation that was initiated two
years ago and the development of additional income streams. The growth achieved
in the diversified income streams helped to a certain extent to offset the
inescapable contraction experienced in equity brokerage revenues which declined
by 16%.
Due to these factors revenue decreased by 2% year-on-year, whereas costs
increased by 4%. As a consequence pre-tax profit margin declined to 10% from 16%
in the prior year. Headline earnings per share declined by 36% to 43,2 cents per
share while normalised earnings per share, being earnings adjusted for the
impact of non-recurring items, withholding taxes and STC, decreased by 32% to
48,2 cents per share. Net asset value increased from 450 cents per share to 499
cents per share. The calculation of net asset value per share is determined with
reference to the IFRS number of shares in issue and ignores the shares held in
the BJMH Share Incentive Trust and the shares held by the BEE Consortium.
BJM Private Client Services enjoyed net inflows, which partially offset the 31%
decline in JSE equity values. Assets under administration reduced 21% year-on-
year to R25 billion.
BJM Corporate Finance won key mandates and increased revenue by 114%. It
broadened its client base significantly and has a healthy deal pipeline.
The depressed equity markets confirmed the need for diversification, and fixed
income market volumes more than doubled during the period. This significantly
benefited the Group`s activity in this market, resulting in an increase of 180%
in revenues from this activity.
Certain balances previously included in Cash and Cash equivalents are now
reflected in Amounts Receivable in Respect of Stockbroking Activities which
better reflect the business model of the Group. The present disclosure is a more
accurate reflection of the nature of these balances based on the current Group
business model. This revised disclosure negatively impacted the cash generated
from operations in the cash flow statement and increased working capital by R235
million.
PROSPECTS
In the coming year, we foresee continued challenges to the economy, yet remain
confident in our ability to meet these challenges.
DIRECTORATE
During the period under review, Merwen Mellet, a founding shareholder and an
integral part of the historic growth of the Group, resigned. Merwen`s decision
was taken after careful consideration for his quality of life, and he leaves to
pursue personal interests. The Board of directors wishes him prosperity in these
ventures, and above all - good health. We thank Merwen for dedicating his career
to the tireless service and stewardship to the firm.
Lionel Wilson was appointed to the board in March 2009 and will serve as an
executive director responsible for financial information.
DIVIDEND
Notice is hereby given that the board of directors has declared a final ordinary
dividend of 10 cents per share in respect of the year ended 31 March 2009.The
current policy of two times cover remains unchanged. The board of directors
considers a deviation of three times cover ratio to be appropriately prudent
under the current economic climate.
Dividend pay date Monday, 6 July 2009
Last day to trade Friday, 26 June 2009
Ex-dividend date Monday, 29 June 2009
Record date Friday, 3 July 2009
Share certificates may not be dematerialised or rematerialised between Monday,
29 June 2009 and Friday, 3 July 2009, both days inclusive.
BASIS OF PREPARATION
The Group annual financial statements for the year ended 31 March 2009 have now
been audited by the Group`s auditors, KPMG Inc. This preliminary report has been
extracted from these audited financial statements and is prepared in accordance
with the recognition and measurement requirements of IFRS and the presentation
and disclosure requirements of IAS 34. The auditor`s report on the annual
financial statements is unqualified and is available for inspection at the
Company`s registered office.
John Bester Andile Mazwai
Chairman Chief Executive Officer
Johannesburg 11 June 2009
CONSOLIDATED INCOME STATEMENT
for the year ended 31 March 2009
2009 2008
R`000 R`000
Operating income 474 414 474 569
Interest income 31 574 44 316
REVENUE 505 988 518 885
Profit on sale of investments - 156
TOTAL INCOME 505 988 519 041
Operating costs (444 015) (419 050)
OPERATING PROFIT BEFORE FINANCE COSTS 61 973 99 991
Finance costs (10 794) (17 043)
PROFIT BEFORE TAX 51 179 82 948
Income tax expense (21 266) (28 709)
PROFIT FOR THE YEAR 29 913 54 239
EARNINGS PER SHARE
Basic earnings per share (cents) 43,1 67,6
Diluted earnings per share (cents) 36,2 57,7
CONSOLIDATED BALANCE SHEET
as at 31 March 2009
2009 2008
R`000 R`000
ASSETS
NON-CURRENT ASSETS
Equipment 33 096 22 531
Investments 511 740
Intangible assets 19 582 15 658
Deferred tax assets 12 601 12 625
TOTAL NON-CURRENT ASSETS 65 790 51 554
CURRENT ASSETS
Amounts receivable in respect of
stockbroking activities 5 593 804 8 172 137
Margin on derivative financial - 5 832
instruments
Trade and other receivables 45 482 33 733
Listed securities holdings 723 955 993 422
Current tax assets 5 239 2 303
Cash and cash equivalents 200 485 399 068
TOTAL CURRENT ASSETS 6 568 965 9 606 495
TOTAL ASSETS 6 634 755 9 658 049
EQUITY AND LIABILITIES
EQUITY
Share capital 700 762
Share premium 33 641 52 001
Non-distributable reserves 65 619 57 725
Retained earnings 249 625 232 689
TOTAL EQUITY 349 585 343 177
NON-CURRENT LIABILITIES
Loans, borrowings and deferred payments 50 000 56 880
Deferred tax liabilities 1 502 217
TOTAL NON-CURRENT LIABILITIES 51 502 57 097
CURRENT LIABILITIES
Amounts payable in respect of
stockbroking activities 5 486 488 8 118 475
Listed securities sold short 640 853 1 012 821
Trade and other payables 101 887 116 479
Current tax liabilities 910 9 549
Shareholders for dividends 195 201
Bank overdraft 3 335 250
TOTAL CURRENT LIABILITIES 6 233 668 9 257 775
TOTAL LIABILITIES 6 285 170 9 314 872
TOTAL EQUITY AND LIABILITIES 6 634 755 9 658 049
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 March 2009
Non-dis-
Share Share tributa- Retained
ble
capital premium reserves earnings Total
R`000 R`000 R`000 R`000 R`000
BALANCE AT 1 APRIL 833 87 856 38 642 205 008 332 339
2007
Income and expenses
recognised directly
in equity:
Exchange - - 17 017 - 17 017
differences in
translating foreign
operations
Fair value - - (6) - (6)
adjustment on
available-for-sale
instruments
Profit realised on - - (1 383) - (1 383)
sale of available-
for-sale
instruments
Total income and - - 15 628 - 15 628
expenses recognised
directly in equity
Profit for the year - - - 54 239 54 239
Total recognised - - 15 628 54 239 69 867
income and expenses
Equity-settled - - 2 727 - 2 727
share-based
payments to
employees
IFRS 2 recognition - - 606 - 606
of BEE credential
Additional - - 122 - 122
settlement on BEE
transaction
Treasury stock (105) (47 727) - - (47 832)
acquired
Treasury stock 34 11 872 - - 11 906
issued
Dividends paid - - - (26 558) (26 558)
BALANCE AT 1 APRIL 762 52 001 57 725 232 689 343 177
2008
Income and expenses
recognised directly
in equity:
Exchange - - 943 - 943
differences in
translating foreign
operations
Fair value - - (23) - (23)
adjustment on
available-for-sale
instruments
Total income and - - 920 - 920
expenses recognised
directly in equity
Profit for the year - - - 29 913 29 913
Total recognised - - 920 29 913 30 833
income and expenses
Equity-settled - - 5 985 - 5 985
share-based
payments to
employees
IFRS 2 recognition - - 606 - 606
of BEE credential
Additional - - 383 - 383
settlement on BEE
transaction
Cancellation of (29) (10 924) - - (10 953)
ordinary shares
Treasury stock (71) (29 545) - - (29 616)
acquired
Treasury stock 38 22 109 - - 22 147
issued
Dividends paid - - - (12 977) (12 977)
Balance at 31 March 700 33 641 65 619 249 625 349 585
2009
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 March 2009
2009 2008
R`000 R`000
Cash (utilised in)/generated from operating (153 659) 211 241
activities
Cash utilised in investing activities (23 713) (17 247)
Cash (utilised in)/generated from financing (25 302) 13 255
activities
Net (decrease)/increase in cash and cash (202 674) 207 249
equivalents
Cash and cash equivalents at beginning of year 398 818 174 594
Effect of exchange rate fluctuations on cash 1 006 16 975
held
Cash and cash equivalents at end of year 197 150 398 818
NOTE TO THE CASH FLOW STATEMENT
CASH (UTILISED IN)/GENERATED FROM OPERATING
ACTIVITIES
Net profit before tax adjusted for non-cash 53 297 85 713
items
Working capital changes (162 445) 184 873
Taxation paid (31 528) (32 794)
Dividends paid (12 983) (26 551)
Cash (utilised in)/generated from operating (153 659) 211 241
activities
RESULTS PER SHARE
Weighted average number of ordinary shares 69 336 80 255
(`000)
Headline earnings per share (cents) 43,2 67,3
Diluted headline earnings per share (cents) 36,3 57,4
Ordinary dividend per share (cents) 17,0 29,0
Net asset value per share (cents) 499,2 450,4
RECONCILIATION OF HEADLINE EARNINGS
Basic earnings 29 913 54 239
Loss/(profit) on disposal of equipment 69 (114)
Profit on sale of investments - (156)
Total tax effects on adjustments (19) 64
Headline earnings 29 963 54 033
Diluted earnings and headline earnings per share are calculated inclusive of the
shares in the Share Incentive Trust and the BEE transaction.
SEGMENTAL ANALYSIS
Settlement
Stock- Corporate and prime
broking finance broking
Business segments R`000 R`000 R`000
2009
Revenue from external customers 446 327 47 686 11 036
Inter-segment revenue 24 991 1 571 19 347
Total income 471 318 49 257 30 383
Segment result 54 795 17 708 15 373
Finance costs
Income tax expense
Profit for the year
Segment assets 5 426 718 28 949 1 345 527
Segment liabilities 5 055 716 9 362 1 315 526
Non-cash items
Depreciation 3 679 310 266
Amortisation of intangible 270 - -
assets
IFRS 2 recognition of BEE - - -
credential
2008
Revenue from external customers 482 341 22 302 13 866
Inter-segment revenue 7 262 718 19 813
Total income 489 603 23 020 33 679
Segment result 91 992 10 878 13 839
Finance costs
Income tax expense
Profit for the year
Segment assets 6 631 182 12 255 2 553 413
Segment liabilities 6 292 123 7 218 2 543 639
Non-cash items
Depreciation 2 098 98 191
Amortisation of intangible - - -
assets
IFRS 2 recognition of BEE - - -
credential
Other Eliminations Consolidated
BUSINESS SEGMENTS R`000 R`000 R`000
2009
Revenue from external customers 939 - 505 988
Inter-segment revenue 41 575 (87 484) -
Total income 42 514 (87 484) 505 988
Segment result (21 402) (4 501) 61 973
Finance costs (10 794)
Income tax expense (21 266)
Profit for the year 29 913
Segment assets 19 683 (186 122) 6 634 755
Segment liabilities 59 664 (155 098) 6 285 170
NON-CASH ITEMS
Depreciation 4 501 - 8 756
Amortisation of intangible 322 - 592
assets
IFRS 2 recognition of BEE 606 - 606
credential
2008
Revenue from external customers 532 - 519 041
Inter-segment revenue 41 120 (68 913) -
Total income 41 652 (68 913) 519 041
Segment result 5 617 (22 335) 99 991
Finance costs (17 043)
Income tax expense (28 709)
Profit for the year 54 239
Segment assets 743 605 (282 406) 9 658 049
Segment liabilities 580 137 (108 245) 9 314 872
NON-CASH ITEMS
Depreciation 434 - 2 821
Amortisation of intangible 1 259 - 1 259
assets
IFRS 2 recognition of BEE 606 - 606
credential
DIRECTORS
JA Bester (Chairman), HSC Bester, AM Mazwai* (CEO), AR Martin, MS Rebe*,
TS Seopa, L Wilson* *Executive
COMPANY SECRETARY
S Adam
SPONSOR
Barnard Jacobs Mellet Corporate Finance (Pty) Ltd
REGISTERED OFFICE
Barnard Jacobs Mellet House
24 Fricker Road, Illovo Corner,
Illovo, 2196
TRANSFER SECRETARIES
Link Market Services South Africa (Pty) Limited
11 Diagonal Street
Johannesburg, 2001
www.bjm.co.za
Date: 11/06/2009 17:00:01 Produced by the JSE SENS Department.
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