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BJM
BJM
BJM - Barnard Jacobs Mellet Holdings Limited - Unaudited Interim Results For the
Six Months Ended 30 September 2009
BARNARD JACOBS MELLET HOLDINGS LIMITED
Reg no: 1995/004798/06
Incorporated in the Republic of South Africa
ISIN: ZAE000014262 & Share Code: BJM
("the Group "or "BJM")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009
Basic earnings per share up 48%
Headline earnings per share up 15%
Ordinary interim dividend per share of 3 cents
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2009 2008 2009
Unaudited Unaudited Audited
R`000 R`000 R`000
Operating income 215 007 232 309 474 414
Interest income 12 175 19 567 31 574
Revenue 227 182 251 876 505 988
Profit on sale of 2 388 - -
investments
Total income 229 570 251 876 505 988
Operating costs (206 974) (224 145) (444 015)
Operating profit before 22 596 27 731 61 973
finance costs
Finance costs (6 850) (9 916) (10 794)
Income from investments 31 - -
Profit before tax 15 777 17 815 51 179
Income tax expense (4 982) (10 131) (21 266)
Profit for the period 10 795 7 684 29 913
Other comprehensive income
Exchange differences in (20 578) (5 548) 943
translating foreign
operations
Fair-value adjustment on 25 (8) (27)
available-for-sale
instruments
Income tax on other (4) 1 4
comprehensive income
Other comprehensive income
for the period,
net of income tax (20 557) (5 555) 920
Total comprehensive income (9 762) 2 129 30 833
for the period
Earnings per share
Basic earnings per share 15,4 10,4 43,1
(cents)
Diluted earnings per share 12,7 8,8 36,2
(cents)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at As at As at
30 September 30 September 31 March
2009 2008 2009
Unaudited Unaudited Audited
R`000 R`000 R`000
Assets
Non-current assets
Equipment 30 186 31 230 33 096
Investments 347 742 511
Intangible assets 24 700 15 444 19 582
Deferred tax assets 17 466 24 233 12 601
Total non-current assets 72 699 71 649 65 790
Current assets
Amounts receivable in 6 984 155 6 445 006 5 593 804
respect of stockbroking
activities
Trade and other 59 697 36 238 45 482
receivables
Listed securities holdings 485 349 1 326 487 723 955
Current tax assets 2 420 900 5 239
Cash and cash equivalents 223 523 119 477 200 485
Total current assets 7 755 144 7 928 108 6 568 965
Total assets 7 827 843 7 999 757 6 634 755
Equity and liabilities
Equity
Share capital 698 672 700
Share premium 33 269 18 935 33 641
Non-distributable reserves 50 134 64 335 65 619
Retained earnings 253 417 228 934 249 625
Total equity 337 518 312 876 349 585
Non-current liabilities
Loans, borrowings and 113 109 55 340 50 000
deferred payments
Deferred tax liabilities 1 494 7 856 1 502
Total non-current 114 603 63 196 51 502
liabilities
Current liabilities
Amounts payable in respect 6 804 723 6 078 675 5 486 488
of stockbroking activities
Listed securities sold 448 796 1 368 840 640 853
short
Trade and other payables 87 999 135 749 101 887
Current tax liabilities 3 973 17 534 910
Shareholders for dividends 206 201 195
Bank overdraft 30 025 22 686 3 335
Total current liabilities 7 375 722 7 623 685 6 233 668
Total liabilities 7 490 325 7 686 881 6 285 170
Total equity and 7 827 843 7 999 757 6 634 755
liabilities
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2009 2008 2009
Unaudited Unaudited Audited
R`000 R`000 R`000
Cash utilised in operating (41 708) (248 619) (153 659)
activities
Cash utilised in investing (4 411) (12 974) (23 713)
activities
Cash generated 62 736 (34 875) (25 302)
from/(utilised in)
financing activities
Net increase/(decrease) in 16 617 (296 468) (202 674)
cash and cash equivalents
Cash and cash equivalents 197 150 398 818 398 818
at beginning of period
Effect of exchange rate (20 269) (5 559) 1 006
fluctuations
Cash and cash equivalents 193 498 96 791 197 150
at end of period
Note to the statement of
cash flows
Cash utilised in operating
activities
Net profit before tax 23 608 19 630 53 297
adjusted for non-cash
items
Working capital changes (53 724) (252 100) (162 445)
Taxation paid (4 599) (4 709) (31 528)
Dividends paid (6 993) (11 440) (12 983)
Cash utilised in operating (41 708) (248 619) (153 659)
activities
RESULTS PER SHARE
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2009 2008 2009
Unaudited Unaudited Audited
Weighted average number of 69 989 73 732 69 336
ordinary shares (`000)
Headline earnings per share 12,5 10,9 43,2
(cents)
Diluted headline earnings 10,3 9,2 36,3
per share (cents)
Ordinary dividend per share 10,0 17,0 17,0
(cents)
Net asset value per share 483,0 466,0 499,2
(cents)
Reconciliation of headline R`000 R`000 R`000
earnings
Basic earnings 10 795 7 684 29 913
Loss on disposal of 31 490 69
equipment
Profit on sale of (2 388) - -
investments
Total tax effect on 326 (137) (19)
adjustments
Headline earnings 8 764 8 037 29 963
Diluted earnings and headline earnings per share are calculated inclusive of the
shares in the Share Incentive Trust and the BEE transaction.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share
capital premium
R`000 R`000
Balance at 1 April 2008 762 52 001
Total comprehensive income for the period:
Profit for the year - -
Other comprehensive income:
Exchange differences in translating foreign - -
operations
Fair-value adjustment on available-for-sale - -
instruments
Total other comprehensive income - -
Total comprehensive income for the year - -
Transactions with owners, recorded directly in
equity:
Contributions by and distributions to owners:
Equity-settled share-based payments to - -
employees
IFRS 2 recognition of BEE credential - -
Additional settlement on BEE transaction - -
Cancellation of ordinary shares (29) (10 924)
Treasury stock acquired (71) (29 545)
Treasury stock issued 38 22 109
Dividends paid - -
Total transactions with owners (62) (18 360)
Balance at 31 March 2009 700 33 641
Total comprehensive income for the period:
Profit for the period - -
Other comprehensive income:
Exchange differences in translating foreign - -
operations
Fair-value adjustment on available-for-sale - -
instruments
Total other comprehensive income - -
Total comprehensive income for the period - -
Transactions with owners, recorded directly in
equity:
Contributions by and distributions to owners:
Equity-settled share-based payments to - -
employees
IFRS 2 recognition of BEE credential - -
Additional settlement on BEE transaction - -
Treasury stock acquired (2) (392)
Treasury stock issued - 20
Dividends paid - -
Total transactions with owners (2) (372)
Balance at 30 September 2009 698 33 269
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (continued)
Non-
distributable Retained
reseves earnings Total
R`000 R`000 R`000
Balance at 1 April 2008 57 725 232 689 343 177
Total comprehensive income for
the period:
Profit for the year - 29 913 29 913
Other comprehensive income:
Exchange differences in 943 - 943
translating foreign operations
Fair-value adjustment on (23) - (23)
available-for-sale instruments
Total other comprehensive 920 - 920
income
Total comprehensive income for 920 29 913 30 833
the year
Transactions with owners,
recorded directly in equity:
Contributions by and
distributions to owners:
Equity-settled share-based 5 985 - 5 985
payments to employees
IFRS 2 recognition of BEE 606 - 606
credential
Additional settlement on BEE 383 - 383
transaction
Cancellation of ordinary - - (10 953)
shares
Treasury stock acquired - - (29 616)
Treasury stock issued - - 22 147
Dividends paid - (12 977) (12 977)
Total transactions with owners 6 974 (12 977) (24 425)
Balance at 31 March 2009 65 619 249 625 349 585
Total comprehensive income for
the period:
Profit for the period - 10 795 10 795
Other comprehensive income:
Exchange differences in (20 578) - (20 578)
translating foreign operations
Fair-value adjustment on 21 - 21
available-for-sale instruments
Total other comprehensive (20 557) - (20 557)
income
Total comprehensive income for (20 557) 10 795 (9 762)
the period
Transactions with owners,
recorded directly in equity:
Contributions by and
distributions to owners:
Equity-settled share-based 4 658 - 4 658
payments to employees
IFRS 2 recognition of BEE 303 - 303
credential
Additional settlement on BEE 111 - 111
transaction
Treasury stock acquired - - (394)
Treasury stock issued - - 20
Dividends paid - (7 003) (7 003)
Total transactions with owners 5 072 (7 003) (2 305)
Balance at 30 September 2009 50 134 253 417 337 518
OPERATING SEGMENTS
Institutional Retail Corporate
stockbroking services finance
R`000 R`000 R`000
September 2009 (Unaudited)
Revenue from external 141 078 65 379 16 417
customers
Inter-segment revenue 6 998 488 56
Total income 148 076 65 867 16 473
Reportable segment profit 2 290 1 969 10 980
before income tax
Income tax expense (370) (553) (3 076)
Profit for the period 1 920 1 416 7 904
Reportable segment assets 4 415 208 1 780 659 27 816
Reportable segment 4 159 846 1 627 645 3 208
liabilities
September 2008 (Unaudited)
Revenue from external 176 216 62 714 7 407
customers
Inter-segment revenue 2 674 91 720
Total income 178 890 62 805 8 127
Reportable segment profit 10 685 7 041 2 035
before income tax
Income tax expense (5 617) (1 971) (570)
Profit for the period 5 068 5 070 1 465
Reportable segment assets 4 816 664 1 602 631 8 853
Reportable segment 4 638 590 1 449 617 2 475
liabilities
March 2009 (Audited)
Revenue from external 320 921 125 406 47 686
customers
Inter-segment revenue 24 801 190 1 571
Total income 345 722 125 596 49 257
Reportable segment profit 18 171 9 611 18 128
before income tax
Income tax expense (3 734) (2 807) (5 078)
Profit for the year 14 437 6 804 13 050
Reportable segment assets 3 797 731 1 628 987 28 949
Reportable segment 3 579 743 1 475 973 9 362
liabilities
OPERATING SEGMENTS (continued)
Settlement and Other/
prime broking Eliminations Consolidated
R`000 R`000 R`000
September 2009
(Unaudited)
Revenue from external 6 376 320 229 570
customers
Inter-segment revenue 6 538 (14 080) -
Total income 12 914 (13 760) 229 570
Reportable segment 1 869 (1 331) 15 777
profit before income
tax
Income tax expense (537) (446) (4 982)
Profit for the period 1 332 (1 777) 10 795
Reportable segment 1 704 893 (100 733) 7 827 843
assets
Reportable segment 1 675 645 23 981 7 490 325
liabilities
September 2008
(Unaudited)
Revenue from external 5 480 59 251 876
customers
Inter-segment revenue 9 796 (13 281) -
Total income 15 276 (13 222) 251 876
Reportable segment 1 299 (3 245) 17 815
profit before income
tax
Income tax expense (364) (1 609) (10 131)
Profit for the period 935 (4 854) 7 684
Reportable segment 1 651 769 (80 160) 7 999 757
assets
Reportable segment 1 641 544 (45 345) 7 686 881
liabilities
March 2009 (Audited)
Revenue from external 11 036 939 505 988
customers
Inter-segment revenue 19 347 (45 909) -
Total income 30 383 (44 970) 505 988
Reportable segment 7 113 (1 844) 51 179
profit before income
tax
Income tax expense (2 015) (7 632) (21 266)
Profit for the year 5 098 (9 476) 29 913
Reportable segment 1 345 527 (166 439) 6 634 755
assets
Reportable segment 1 315 526 (95 434) 6 285 170
liabilities
COMMENTARY
Operations
The Barnard Jacobs Mellet Group is pleased to report a profit of R10,795 million
for the half year. We believe that this demonstrates resilience through a down
cycle. Notwithstanding a recovery from their lows, financial markets remain
fragile in the wake of the global crisis.
This impacted negatively on our revenue and resulted in operating revenue
declining by 7% and total revenue, including interest received, declining by 10%
compared to the comparative reporting period.
In response, costs were cut by 8% compared to the comparative period. As a
consequence, headline earnings per share increased by 15% to 12,5cps while basic
earnings per share, increased by 48% to 15,4cps.
Gross equity brokerage declined by 13% in a market where JSE values traded fell
by 18%. This represents the main reason for the decline in Group revenue. The
other areas of the business managed to hold their own in light of the pressures
exerted on revenue; these include Barnard Jacobs Mellet Corporate Finance and
Barnard Jacobs Mellet Private Client Services (BJMPCS) which continued to show
real positive growth in the face of difficult markets. BJMPCS extended its
product offering with the acquisition of the entire share capital of Quadro
Executive Estate Planning (Pty) Ltd on 1 April 2009, a Trust and Fiduciary
Services business now operating as Barnard Jacobs Mellet Wealth. This
acquisition accounts for the increase in the intangible assets as disclosed in
the consolidated statement of financial position. The value of assets under
administration currently amounts to R31,9 billion compared to R25,2 billion at
the financial year end. All of the Group`s operating segments were profitable
during the period under review.
The adoption of revised accounting standards have resulted in certain items,
previously accounted for directly in equity, being reflected on the face of the
Statement of Comprehensive Income. The most important item is the exchange
differences in translating foreign operations at the closing exchange rate at
the reporting date and does not represent any cash flow implications.
Prospects
We expect mixed results for the Group into the second half. While optimistic
that global market conditions will continue to improve we expect local markets
to be constrained by domestic economic conditions. We will continue to explore
strategic imperatives to improve the Group`s competitive positioning.
Directorate
During the period under review Sidney Rebe stepped down as executive director of
the Group, but will remain a member of the Group Executive Committee. We thank
Sidney for dedicating his time and effort to the Group.
Dividend
Notice is hereby given that the board of directors has declared an ordinary
interim dividend of 3 cents per share in respect of the period ending 30
September 2009. The current policy of two times cover remains unchanged. The
board considers this deviation to be prudent in the current economic climate.
Last day to trade Friday, 27 November 2009
Ex-dividend date Monday, 30 November 2009
Record date Friday, 4 December 2009
Dividend pay date Monday, 7 December 2009
Share certificates may not be dematerialised or rematerialised between Monday,
30 November 2009 and Friday, 4 December 2009, both days inclusive.
Basis of preparation
The accounting policies and methods of computation used in the preparation of
these unaudited interim results comply with IAS 34. Except for the adoption of
IAS 1 and IFRS 8 the accounting policies and methods of computation used are
consistent in all material respects with those adopted for the year ended 31
March 2009. The September 2009 interim financial statements have not been
audited or reviewed by the company`s auditors KPMG Inc.
John Bester Andile Mazwai Johannesburg
Chairman Chief Executive Officer 11 November 2009
Directors: JA Bester (Chairman), HSC Bester, AM Mazwai* (CEO),
AR Martin, TS Seopa, L Wilson* *Executive
Acting company secretary: L Wilson
Registered office: Barnard Jacobs Mellet, 24 Fricker Road,
Illovo, 2196
Transfer secretaries: Link Market Services South Africa (Pty) Limited,
11 Diagonal Street, Johannesburg, 2001
Sponsor: Barnard Jacobs Mellet Corporate Finance (Pty) Limited
www.bjm.co.za
Date: 12/11/2009 08:30:01 Produced by the JSE SENS Department.
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