| Tue 1 Sep 2009, 9:03 | | RAH - Real Africa Holdings Limited - Profit and Dividend Announcement for the |
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RAH
RAH
RAH - Real Africa Holdings Limited - Profit and Dividend Announcement for the
year ended 30 June 2009
Real Africa Holdings Limited
(Registration number 1994/003919/06)
Share code: RAH
ISIN code: ZAE000008702
("Real Africa" or "RAH" or "the company")
Profit and Dividend Announcement
for the year ended 30 June 2009
ACCOUNTING POLICIES
The condensed consolidated financial information has been prepared in accordance
with the recognition and measurement criteria of all applicable statements and
interpretations of International Financial Reporting Standards (IFRS) and is
presented in terms of the disclosure requirements set out in IAS 34 - Interim
Financial Reporting. The accounting policies applied to the condensed
consolidated financial information are consistent with those as set out in the
annual financial statements for the year ended 30 June 2008.
Shareholders are referred to the restatement of balances at 30 June 2008 as
announced in the profit and dividend announcement for the six months ended 31
December 2008.
In preparing the group`s results the assumption has been made that Emfuleni will
be successful with its bid for the renewal of its casino licence that expires in
October 2010.
AUDIT OPINION
Our auditor, PricewaterhouseCoopers Inc. audited the consolidated annual
financial statements and condensed consolidated financial information contained
herein. Their audit reports in which they expressed unqualified opinions are
available for inspection at the company`s registered office. Without qualifying
these audit opinions, our auditor drew attention to the assumption used in the
preparation of the consolidated financial statements that Emfuleni will be
successful with its bid for the new casino licence. Should this bid not be
successful, an impairment calculation will need to be performed on the Emfuleni
operations, with concomitant adjustments to the valuation of this investment in
the consolidated annual financial statements and condensed consolidated
financial information.
REVIEW OF RESULTS
Revenue comprising of dividends received was above the previous year due to
SunWest and Afrisun KZN having distributed share premium totalling R42,7 million
in that period.
The net investment losses of R6,7 million (2008: R95,4 million profit) relate
primarily to an increase in the Life Esidimeni (Pty) Ltd pension fund provision
following a settlement having been reached between Life Esidimeni and the
curator of various retirement funds in respect of transactions involving the
Lifecare Group Holdings Pension Fund. Included in the comparative period is the
profit on sale of Life Esidimeni of R90,7 million following its disposal for
R180 million.
The share of profits of associates includes the group`s share of income from
Afrisun Gauteng, Zonwabise and the management companies.
Interest expense has been significantly reduced due to the redemption of all the
remaining preference shares during the year.
Tax includes a reduction in the capital gains tax provision in respect of share
premium distributions received in 2008. The comparative period charge includes
capital gains tax arising from the litigation settlement, share premium
distributions and disposal of investments.
Headline earnings per share declined by 20%. In the prior period, headline
earnings included the litigation settlement of R110 million, the impact of which
has been partially offset by higher dividends received in the current period.
The board has declared a final dividend of 14 cents (2008: 16 cents) per
share, bringing the total dividend for the year to 18 cents (2008: 24 cents) per
share.
NON CURRENT ASSETS
During the year, the group`s effective interest in Afrisun Leisure`s underlying
investments remained unchanged, except for the shareholding in SunWest that
decreased from 14,6% to 14,0% due to an increase in the number of issued shares
in SunWest following the exercising of options held by GPI over SunWest shares.
The value of Afrisun Leisure has decreased from R1 247 million at 31 December
2008 to R1 153 million (30 June 2008: R1 042 million). The decrease is primarily
due to difficult trading conditions.
DIRECTORATE
As previously announced, Mr DA Hawton retired from the board of the company on
30 June 2009 and Mr MV Moosa was appointed as chairman on 1 July 2009.
OUTLOOK
Trading at the group`s major investments is expected to remain subdued as little
improvement in the current economic conditions is anticipated.
DIVIDEND
Notice is hereby given that a final dividend of 14 cents per share for the year
ended 30 June 2009 (2008: 16 cents) has been declared, payable to shareholders
recorded in the register of the company at the close of business on the record
date appearing below. The salient dates applicable to the interim dividend are
as follows:
2009
Last day to trade cum final dividend } Thursday, 17 September
First day to trade ex final dividend } Friday, 18 September
Record date } Friday, 25 September
Payment date } Monday, 28 September
No share certificates may be dematerialised or rematerialised between Friday,
18 September and Friday, 25 September 2009, both days inclusive. Dividend
cheques will be posted and electronic payments made, where applicable, to
certificated shareholders on the payment date. Dematerialised shareholders will
have their accounts with their Central Securities Depository Participant or
broker credited on the payment date.
For and on behalf of the board
MV Moosa RP Becker
Chairman Financial director
31 August 2009
REGISTERED OFFICE
27 Fredman Drive, Sandown, Sandton, 2031
TRANSFER SECRETARIES
Computershare Investor Services (Pty) Ltd, 70 Marshall Street, Johannesburg,
2001
SPONSOR
Investec Bank Limited
DIRECTORS
MV Moosa (Chairman), RP Becker (Financial director), DC Coutts-Trotter, MJ
Leeming, MMT Ramano
SECRETARIES
Sun International Corporate Services (Pty) Limited
GROUP INCOME STATEMENTS
Year ended Year ended
30 June 30 June
2009 2008
R`000 Audited Audited
Revenue 77 041 67 408
Net investment (losses)/profits (6 694) 95 389
Share of profits of associates 47 731 48 946
Interest income 3 582 4 450
Litigation settlement - 110 000
Operating income 121 660 326 193
Operating costs (4 690) (6 765)
Amortisation (7 584) (7 584)
Impairment of intangible asset (11 818) -
Interest expense (602) (5 647)
Profit before tax 96 966 306 197
Tax 1 740 (33 720)
Profit 98 706 272 477
Attributable to:
Minority 6 758 44 713
Ordinary shareholders 91 948 227 764
98 706 272 477
Earnings per share (cents) 25.4 63.0
Headline earnings per share (cents) 30.1 37.7
GROUP BALANCE SHEETS
30 June 30 June
2009 2008
R`000 Audited Restated
ASSETS
Non current assets
Investments in associates 107 334 132 073
Available-for-sale investments 711 518 732 702
818 852 864 775
Current assets
Trade and other receivables 377 245
Tax 2 575 2 374
Cash and cash equivalents 28 867 42 234
31 819 44 853
Total assets 850 671 909 628
EQUITY AND LIABILITIES
Capital and reserves
Ordinary shareholders` equity 780 487 778 617
Minority interest 56 465 58 747
836 952 837 364
Non current liabilities
Preference shares - 37 392
Deferred tax - 264
Tax 12 315 14 548
12 315 52 204
Current liabilities
Trade and other payables 1 404 2 003
Provisions - 18 000
Tax - 57
1 404 20 060
Total liabilities 13 719 72 264
Total equity and liabilities 850 671 909 628
SUMMARISED GROUP CASH FLOW STATEMENTS
Year ended Year ended
30 June 30 June
2009 2008
R`000 Audited Audited
Cash flows from operating activities (6 436) 73 610
Cash flows from investing activities 108 997 278 774
Cash flows from financing activities (115 928) (347 306)
Net cash flows (13 367) 5 078
GROUP STATEMENT OF CHANGES IN EQUITY
Restated
R`000 Ordinary Capital Non-con- Retained
share redemp- trolling earnings
capital tion reserve
and reserve
premium
Balances at 30 June 2007 85 161 1 080 (3 751) 262 014
Profit 227 764
Dividends paid (198 824)
Investment revaluation
Purchase of minorities` (14 192)
interests
Movement in treasury 1 881
shares
Balances at 30 June 2008 87 042 1 080 (17 943) 290 954
Profit 91 948
Dividends paid (72 321)
Investment revaluation
Balances at 30 June 2009 87 042 1 080 (17 943) 310 581
Restated
R`000 Fair Minority Total
value interest
reserve
Balances at 30 June 2007 803 334 150 656 1 298 494
Profit 44 713 272 477
Dividends paid (41 644) (240 468)
Investment revaluation (385 850) (31 266) (417 116)
Purchase of minorities` (63 712) (77 904)
interests
Movement in treasury shares 1 881
Balances at 30 June 2008 417 484 58 747 837 364
Profit 6 758 98 706
Dividends paid (5 613) (77 934)
Investment revaluation (17 757) (3 427) (21 184)
Balances at 30 June 2009 399 727 56 465 836 952
HEADLINE EARNINGS PER SHARE
Year ended Year ended
30 June 30 June
2009 2008
R`000 Audited Audited
Headline earnings per share (cents) 30.1 37.7
Weighted average number of shares 361.6 361.6
(million)
Reconciliation of headline earnings
(R`000)
Earnings attributable to ordinary 91 948 227 764
shareholders
Adjusted for:
Realised investment profits (2 844) (114 930)
Impairment of casino licence 11 818 -
Provision for pension fund exposure 9 000 18 000
Tax on above items (41) 5 560
Minority interest in the above items (957) -
Headline earnings 108 924 136 394
NET ASSET VALUE
30 June 30 June
R`000 2009 2008
Afrisun Leisure 1 152 780 1 041 836
Other net liabilities (4 555) (22 610)
Cash 28 010 30 722
Borrowings - (7 584)
Net asset value 1 176 235 1 042 364
Issued shares net of treasury shares 361.6 361.6
(million)
Net asset value per share (cents) 325 288
Notes
1. Afrisun Leisure`s value is stated net of preference share
debt and cash.
2. All the investments held by Afrisun Leisure have been valued
using the Discounted Cash Flow (DCF) valuation method
applying a discount rate of 12,45% (30 June 2008: 15,10%) at
30 June 2009, to the directors` current estimated future
operating cash flows. A minority discount of 15% has been
applied to the valuation of the gaming company investments.
The significant volatility in the discounted rates used in
the respective valuations is due to the changes in the long
term government bonds used as the risk free rate.
1 September 2009
Sponsor: Investec Bank Limited
Date: 01/09/2009 09:03:05 Produced by the JSE SENS Department.
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