| Wed 30 Sep 2009, 13:44 | | RBA - RBA Holdings Limited - Abridged Interim Results For the Six Month Period |
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RBA
RBA
RBA - RBA Holdings Limited - Abridged Interim Results For the Six Month Period
Ended 30 June 2009
RBA HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number: 1999/009701/06)
Share Code: RBA
ISIN Code: ZAE000104154
("RBA Holdings")
ABRIDGED INTERIM RESULTS FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009
Abridged consolidated balance sheet
30 June 30 June 31 December
(Reviewed) (Reviewed) (Audited)
2009 2008 2008
R`000 R`000 R`000
Assets
Non-current assets 169 269 83 193 133 281
Current assets 96 468 90 115 114 314
Total assets 265 737 173 308 247 595
Equity and liabilities
Capital and reserves 94 430 103 254 105 689
Non-current liabilities 75 135 35 344 62 699
Current liabilities 96 172 34 710 79 207
Total equity and liabilities 265 737 173 308 247 595
Number of shares in issue 310 000 310 000 310 000
000 000 000
Net asset value per share 30.46 33.31 34.09
(cents)
Tangible net asset value per 28.79 33.31 32.42
share (cents)
Abridged consolidated income statement
6 months ended Year ended
30 June 30 June 31 Dec
(reviewed) (reviewed) (Audited)
2009 2008 2008
R`000 R`000 R`000
Revenue 36 708 105 851 190 460
Cost of Sales (22 397) (64 601) (123 770)
Gross profit 14 311 41 250 66 690
Other income 5 353 12 402 26 644
Operating expenses (29 222) (27 571) (61 207)
Earnings before interest (9 558) 26 081 32 127
and taxation
Impairment - RBA Employees - - (1 500)
share trust
Impairment of Goodwill - - (1 752)
Net finance charges (5 388) (1 553) (4 522)
Profit/(Loss) before (14 946) 24 528 24 353
taxation
Taxation 3 924 (6 437) (3 962)
Profit/(Loss) after (11 022) 18 091 20 391
taxation
Profit/(Loss) from (235) (3) (716)
associate companies
Minority interests 4 214 113 3 010
Attributable (7 043) 18 201 22 685
Earnings/(Loss)
Reconciliation of headline
earnings
Profit attributable to (7 043) 18 201 22 685
ordinary shareholders
Adjusted for profit on (292) - -
disposal of property, plant
and equipment
Impairment - loan to RBA - - 1 500
employees share trust
Impairment of goodwill - - 1 753
Fair value adjustment of - (850) -
office building
Normalised earnings/(loss) (7 335) 17 351 25 938
attributable to ordinary
shareholders
Fair value adjustment of (4 082) (8 686) (21 530)
investment properties
Headline earnings/(loss) (11 417) 8 665 4 408
attributable to ordinary
shareholders
Weighted average number of 310 000 000 310 000 000 310 000 000
shares in issue
Basic earnings/(loss) per (2.27) 5.87 7.32
share (cents)
Normalised earnings/(loss) (2.37) 5.60 8.37
per share (cents)
Headline earnings/(loss) (3.68) 2.80 1.42
per share (cents)
Description of normalised earnings:
The directors believe normalised earnings more accurately reflect operational
performance of the group. Headline earnings are adjusted to take into account
the non operational requirements set out in the SAICA Circular 08/07 - Headline
Earnings (issued February 2008) in terms of which all amounts and adjustments
relating to items of investment properties are excluded in headline earnings.
However the directors are of the view that the revaluations of the rental unit
portfolio should be taken into account when determining the normalised earnings
for the group.
Abridged statement of changes in equity
Share Share Retained Revaluation Minority Total
capital premium earnings Reserve Interest R`000
R`000 R`000 R`000 R`000 R`000
Balance: 1 Jan 3 28 394 53 514 - 3 256 85 166
2008
Profit for the - - 18 201 - (113) 18 088
period
Balance: 30 3 28 394 71 715 - 3 143 103 254
June 2008
Profit for the - - 4 484 - (2 897) 1 587
period
Reval: office - - - 2 600 - 2 600
building
Dividends - - - - (1 997) (1 997)
Business - - - - 244 244
Combinations
Balance: 1 Jan 3 28 394 76 199 2 600 (1 507) 105 689
2009
Loss for the - - (7 043) - (4 214) (11 258)
period
Balance: 30 3 28 394 69 156 2 600 (5 721) (94 431)
June 2009
Abridged consolidated cash flow statement
6 months ended Year
ended
30 June 30 June 31
(Reviewed) (Reviewed) December
2009 2008 (Audited)
R`000 R`000 2008
R`000
Cash and equivalents at (16 744) 2 334 2 328
beginning of period
Cash flows from operating (12 800) 12 775 17 630
activities
Cash flows from investing (20 366) (7 616) (82 874)
activities
Cash flows from financing 25 486 (2 533) 46 172
activities
Cash and equivalents at (24 424) 4 960 (16 744)
end of period
OVERVIEW
The directors of RBA Holdings present the reviewed interim results for the 6
month period ended 30 June 2009.
Established in 1997, RBA Holdings is a supplier of affordable homes in Gauteng,
Polokwane and Kwazulu Natal. Our business model focuses on the acquisition of
land, town planning, project management of services installation, marketing,
securing of finance for our clients and construction of quality affordable
homes.
PERFORMANCE REVIEW
The operating results for the period, as anticipated in our 2008 annual report,
reflect a difficult trading period. The general meltdown of global financial
markets has slowed the growth of the South African economy and the tightening by
banks of lending in 2008 impacted on our clients` ability to secure home loans.
This resulted in a severe slowdown in delivery of clients` homes and revenue was
negatively impacted. Production for the period was not as severely affected due
to the roll out of units that added to our long term rental property portfolio.
Other income includes revaluations of our long term rental unit property
portfolio to market value.
The group achieved an attributable loss of R7,043 million (2008: R18,201 million
profit) for the 6 month period. Earnings per share for the six month period
amount to a loss of 2.27 cents (2008: profit of 5.87 cents). The net asset value
of the group at 30 June 2009 was 30.46 cents (2008 - 33.31 cents) per share.
The group owns various pockets of land available for residential housing
development. In accordance with IFRS this inventory was not revalued to market
value. At 30 June 2009 the market value of this inventory exceeded book value by
approximately R 40 million. This should be taken into account when considering
the real net asset value of the group.
PROSPECTS
As far as short term prospects are concerned, as at 30 June 2009 the group had
387 approved sales in 16 project areas that were awaiting registration at the
deeds office. Construction will commence immediately after registration. Due to
the lag effect of converting sales into revenue through construction of houses,
earnings for the second half of 2009 will remain under pressure.
Recent months have seen a relaxing by banks of their lending criteria. This
along with an improvement in the affordability of mortgage loans due to lower
interest rates has resulted in a marked improvement in monthly sales.
The directors believe that the medium to long term prospects for the group
remain positive due to the following factors:
The historic shortage of housing in South Africa remains a problem which has
been exacerbated by the slow roll out of houses the last 18 months;
A recovery from the economic downturn is expected;
The provision of home loans to RBA`s segment of the residential housing market
is still a focal point of the major commercial banks;
The group has sufficient land available to meet forecasted demand; and
The group has the production capacity to meet forecasted demand.
The group`s strategy of introducing higher density housing developments, thereby
reducing the land cost per unit, is bearing fruit with a lower cost product on
offer to potential clients.
The group`s initiative of growing its rental unit property portfolio is
progressing as planned. Apart from adding annuity income, the capital
appreciation on the units has smoothed the earnings volatility associated with
the housing market cycle. The introduction of rental units allows RBA access to
a future client base that may qualify for home loans.
SUBSEQUENT EVENTS
The directors are not aware of any matter or circumstance arising since the end
of the period, which significantly affects the financial position of the group
or the results of its operations as presented.
DIVIDEND POLICY
In line with RBA Holdings growth strategy no dividend has been declared. The
dividend policy of RBA Holdings will be reviewed annually with due regard to
cash flow, gearing and capital requirements.
BASIS OF PREPARATION AND ACCOUNTING POLICIES
The consolidated interim financial statements have been prepared in accordance
with International Financial Reporting Standards (IFRS) and IAS 34: Interim
Financial Reporting. The accounting policies used in the preparation of these
results are consistent in all material respects with those used in the annual
financial statements for the year ended 31 December 2008.
REVIEW OPINION
The auditors of RBA Holdings, Logista Johannesburg, have reviewed the financial
information in terms of rule 3.18 of the Listings Requirements of the JSE
Limited. Their unqualified review opinion is available for inspection at the
offices of RBA Holdings.
APPRECIATION
We thank our dedicated staff for their commitment and hard work during a
difficult six months. We also thank our business partners, suppliers, advisors,
clients and shareholders for their support and faith in the group.
By order of the Board
30 September 2009
David Wentzel Jason Mortimer
Chief Executive Officer Financial Director
CORPORATE INFORMATION
Executive directors: D K Wentzel; J L Mortimer; B A Stegmann; R F Eksteen; D F
Esterhuyse; G S Warren
Non-executive directors: L Theron, L A Tondi
Company Secretary: K M Linstrom
Registration number: 1999/009701/06
Registered address: Nedbank Building, Cnr Biccard & Jorissen Street,
Braamfontein, 2017
Postal address: P.O Box 30885, Braamfontein, 2017
Telephone: 011 483 5000
Facsimile: 086 516 0873
Web address: www.rbaholdings.co.za
Transfer secretaries: Computershare Investor Services (Pty) Limited
Auditors: LOGISTA Johannesburg
Designated Adviser: Exchange Sponsors (2008) (Pty) Limited
Date: 30/09/2009 13:44:03 Produced by the JSE SENS Department.
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