| Thu 1 Oct 2009, 8:27 | | ABO - Absolute Holdings - Reviewed results for the year ended 30 June 2009 |
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ABO
ABO
ABO - Absolute Holdings - Reviewed results for the year ended 30 June 2009,
notice of annual general meeting and renewal of cautionary announcement
ABSOLUTE HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1986/004649/06)
Share code: ABO ISIN: ZAE000062998
("Absolute" or "the company")
REVIEWED RESULTS FOR THE YEAR ENDED 30 JUNE 2009, NOTICE OF ANNUAL GENERAL
MEETING AND RENEWAL OF CAUTIONARY ANNOUNCEMENT
GROUP BALANCE SHEETS
Reviewed Audited
30 June 30 June
ASSETS 2009 2008
R`000 R`000
Non-current assets 46 394 20 536
Property, plant and equipment 25 987 20 536
Investment in financial assets 20 000 -
Long term receivables 407 -
Current assets 3 455 1 022
Inventories 2 015 462
Short term receivables 142 123
Trade and other receivables 985 102
Cash and cash equivalents 313 335
Non-current assets held for sale - 1 183
Total assets 49 849 22 741
EQUITY AND LIABILITIES
Capital and reserves 24 115 745
Non-current liabilities 18 138 14 991
Long-term liabilities 17 616 14 991
Environmental rehabilitation 522 -
provision
Current liabilities 7 596 5 822
Bank overdraft 2 876 4 869
Short-term loans 521 -
Trade and other payables 4 040 953
Provisions 159 -
Liabilities associated with non- - 1 183
current assets held for sale
Total equity and liabilities 49 849 22 741
Number of shares in issue (`000) 1 403 716 856 375
Net asset value per share (cents) 1.72 0.09
Net tangible asset value per share 1.72 0.09
(cents)*
* Mineral rights are shown under Property, plant and equipment and accordingly
the prior year comparative has been restated.
GROUP INCOME STATEMENTS
Reviewed Audited
Year Year
ended ended
30 June 30 June
2009 2008
R`000 R`000
Revenue 956 -
Other income - -
Profit on sale of subsidiary 250 -
Administration and other expenses (7 110) (2 269)
Loss from operations (5 904) (2 269)
Finance charges (44) (81)
Interest income 55 37
Loss before taxation (5 893) (2 313)
Taxation - 15
Net loss for the year from (5 893) (2 298)
continuing operations
Discontinued operations
Loss for the year from discontinued (2 331) (5 723)
operations
Net loss for the year (8 224) (8 021)
Reconciliation between loss and
headline loss
Net loss for the year (8 224) (8 021)
(Profit) on disposal of subsidiary (250) -
(Profit) on property, plant and - (102)
equipment
Decrease in value of non current - 1 061
asset held for sale
Headline loss (8 474) (7 062)
Weighted average shares in issue 1 193 294 749 329
(`000)
Earnings per share information:
Loss per share for year (cents) (0.69) (1.07)
Loss per share from continuing (0.49) (0.31)
operations (cents)
Headline loss per share for year (0.71) (0.94)
(cents)
ABRIDGED CASH FLOW STATEMENTS
Reviewed Audited
Year Year
ended ended
30 June 30 June
2009 2008
R`000 R`000
Net cash outflow from operating (5 076) (3 275)
activities
Net cash (outflow) / inflow from (4 935) 2 923
investing activities
Net cash outflow from discontinued (2 331) (4 548)
activities
Net cash from financing activities 14 313 5 143
Net increase in cash and cash 1 971 243
equivalents
Cash transferred to disposal group - (6)
held for sale (4 534) (4 771)
Cash and cash equivalents -
beginning of year
Cash and cash equivalents at end of (2 563) (4 534)
year
STATEMENT OF CHANGES IN EQUITY
Share Share Accumul Total
capital premium ated
R`000 R`000 losses R`000
R`000
Balance at 1 July 7 397 77 985 (80 4 816
2007 566)
Shares issued 1 166 2 784 - 3 950
Net loss for the - - (8 021) (8 021)
year
Balance at 30 June 8 563 80 769 (88 745
2008 587)
Shares issued 5 474 27 367 - 32 841
Costs capitalised to (1 247) - (1 247)
share premium (8 224) (8 224)
Net loss for the
year
Balance at 30 June 14 037 106 889 (96 24 115
2009 811)
COMMENTARY
The directors present the abridged reviewed results for the year ended 30 June
2009 in accordance with IAS 34 - Interim Financial Reporting. The accounting
policies adopted for purposes of this report are consistent with those of the
prior year and comply with International Financial Reporting Standards and the
Companies Act, as revised. These results have been reviewed by the Company`s
auditors and the unqualified review report is available for inspection at the
registered office of the company.
RESULTS
The group has effectively completed its transition to a mining company as the
tile retail operations have been disposed effective February 2009. As at the
date of this report, the group employs approximately 76 employees, 73 of which
are in the mining division and the remainder in the corporate head office. Full
scale mining development activities commenced at the Diamond Quartzite Quarry in
the second quarter of the prior financial year following the granting of the
mining right. A second mining operation will commence before the end of 2009 at
Vioolsdrift which is a Picture Stone deposit. This, together with existing
sales that have commenced after the balance sheet date, will further generate
the cash flows required to develop existing mining operations and provide
support to the group for early stage exploration ventures.
Revenue from some mining sales have contributed to the first cash flow streams
and these replace those from the retail operations. Sales to date have being
disappointing but are mainly related to the global slowdown in the building
industry. However new marketing iniatives both locally and international have
been instated to ensure that the current operations remain cash neutral until
such time as the global economies return to normality.
Operating expenses have been incurred mainly on increased corporate activities
and head office costs, but these should in future be covered from dividend
income streams from Qinisele Resources (Proprietary) Limited ("Qinisele")
following the approval of the acquisition of a 25.1% shareholding in Qinisele by
shareholders in December 2008. The group`s investment in Qinisele has been
accounted for as an investment.
SEGMENTAL ANALYSIS
30 June 2009
R`000 Retail Head Property Mining Total
Office
Revenue - 956 - - -
Net Loss (2 331) (6 768) - (81) (8 224)
30 June 2008
R`000 Retail Head Property Mining Total
Office
Revenue - - - - -
Net loss (5 723) (1 217) (21) (1 060) (8 021)
Mining costs are still capitalised as full commercial mining operations have not
being achieved as yet. It is anticipated that this will be reached in 2010.
Costs that relate to development expenditure are capitalised and amortised over
the life of the quarry.
SUBSEQUENT EVENTS
Subsequent to year end and in line with Absolute`s stated strategy of
transforming itself into a resources exploration and development company, the
company acquired a 49% stake in Dikopane (Pty) Ltd for a cash consideration of R
500 000 and 8 333 333 shares. This transaction was effective after year end.
Dikopane has been granted a Prospecting Right over various farms located in the
Northern part of the Free State Province, approximately 26km south-southeast of
Sasolburg and 28km north of Heilbron. This Prospecting Right has been secured
over 14,500 hectares in the Vereeniging - Sasolburg coalfields. The acquisition
of the shareholding in Dikopane presents Absolute with an opportunity to develop
a prospective coal exploration project in line with the Company`s stated
strategy.
The Company successfully placed 189,135,135 ordinary shares ("the placed
shares"), equating to 13.47 per cent of the Company`s issued share capital,
thereby raising approximately R7 million. The Company will apply the proceeds to
funding exploration and resource definition on its new coal project at Sasolburg
and the limestone projects in the Eastern and Western Cape.
DIVIDENDS PAID AND RECOMMENDED
No dividends were paid or declared during the accounting period under review and
none are recommended at this stage (2008: nil).
SHARE CAPITAL
A total of 547 341 415 shares have been issued during the year under review.
These issues relate to the rights offer, as outlined below, and the acquisition
of a 25.1% interest in Qinisele.
During the year under review, the company undertook a fully underwritten rights
offer of 214 008 081 new ordinary shares of 1 cent each at an issue price of 6
cents per share. The rights offer was underwritten by the controlling
shareholder Calulo Resources (Proprietary) Limited.
ACQUISITIONS AND DISPOSALS
In November 2008 the company acquired 25.1% of Qinisele Resources (Proprietary)
Limited, a mining consultancy for a purchase consideration of R20 000 000. The
company issued 333 333 334 shares to the shareholders of Qinisele in settlement
of the consideration.
During the year under review, the company sold Absolute Tiles for a purchase
consideration of R500 000, with group realisng a net gain of R 250 000 after
expenses.
There were no other acquisitions or disposals during the year under review.
However, shareholders are referred to the note on subsequent events above.
FUTURE PROSPECTS
The rights offer and subsequent commencement of mining operations are expected
to return the company to profitability and enhance the prospects of the group
going forward. The Qinisele acquisition resulted in the further expansion of the
company`s mining operations and precedes further acquisitions of mineral assets.
The company recently motivated to the JSE Limited for a change in sector, from
"Retail" to "General Mining" and will be looking to transfer to the Main Board
of the JSE in due course.
DIRECTORS
On 1 September 2008 Mr MW Rosslee was elected to the Board and is the newly
appointed Chief Executive Officer of the company.
NOTICE OF ANNUAL GENERAL MEETING
Shareholders are advised that the annual general meeting of the company will be
held at 10h00 at the registered office of the company at Arcay House II, Number
3 Anerley Road, Parktown, Johannesburg on 18 November 2009.
RENEWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders are referred to the cautionary announcement published on 16 July
2009 and are advised that negotiations are still ongoing. Accordingly,
shareholders should continue to exercise caution when dealing in their
securities until a further announcement is made.
By order of the board
M K Diale MW Rosslee
30 September 2009
Company Secretary and Registered Office
Arcay Client Support (Proprietary) Limited (Registration
number 1998/025284/07)
Arcay House, Number 3 Anerley Road, Parktown,
Johannesburg (PO Box 62397, Marshalltown, 2107)
Directors
MK Diale* Chairman, AM Sher* Deputy Chairman, MW Rosslee
CEO, JJ Serfontein*, GP Sequeira
(* Non-executive)
Sponsor Transfer Office
Arcay Moela Sponsors Computershare Investor
(Proprietary) Limited Services (Proprietary)
Limited
Date: 01/10/2009 08:27:01 Produced by the JSE SENS Department.
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