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SBV SVN
SBV
SBV / SVN - Sabvest Limited - Condensed Audited Results For The Year Ended
31 December 2009 And Cash Dividend Declaration
SABVEST LIMITED
Incorporated in the Republic of South Africa
Registration number 1987/003753/06
ISIN: ZAE000006417 - ordinary shares
ISIN: ZAE000012043 - "N" ordinary shares
Share code: SBV - ordinary shares
Share code: SVN - "N" ordinary shares
("Sabvest" or "the group" or "the company")
CONDENSED AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2009 AND CASH
DIVIDEND DECLARATION
CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL POSITION
at 31 December 2009
31 Dec 31 Dec
2009 2008
Audited Audited
R`000 R`000
Non-current assets 365 442 365 160
Property, plant and equipment 1 070 1 380
Deferred tax asset 1 249 1 897
Share trust receivables 6 126 4 134
Investment holdings 356 997 357 749
Associates* 292 994 279 139
Long-term investments 64 003 78 610
Current assets 31 205 18 614
Finance advances and receivables 24 672 18 518
Cash balances 6 533 96
Total assets 396 647 383 774
Ordinary shareholders` equity 379 071 350 636
Non-current liability 5 212 3 486
Deferred tax liability 5 212 3 486
Current liabilities 12 364 29 652
Interest-bearing debt 7 350 24 100
Accounts payable 5 014 5 552
Total equity and liabilities 396 647 383 774
Net asset value per share - cents 825 759
Net tangible asset value per
share - cents 817 752
Net asset value per share with listed
investments in associates at
market value - cents 863 796
Net asset value per share with
investments in associates at
directors` valuation
(intrinsic value) - cents** 1 094 1 016
Number of shares in issue less held
in treasury - 000`s 45 968 46 180
*Includes goodwill of R3,4 million (31 December 2008: R3,4 million).
**Calculated after deducting CGT payable should investments be sold at
directors` valuation.
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
for the year ended 31 December 2009
12 months 12 months
31 Dec 31 Dec
2009 2008
Audited Audited
R`000 R`000
Cash generated by operating activities 17 632 21 367
Cash generated by/(utilised in)
investing activities 11 333 (40 740)
Cash effects of financing activities 701 (701)
Cash utilised for the payment of dividends (6 479) (6 479)
Change in cash and cash equivalents 23 187 (26 553)
Cash balances, less interest-bearing debt,
at beginning of year (24 004) 2 549
Cash balances, less interest-bearing debt,
at end of year (817) (24 004)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2009
12 months 12 months
31 Dec 31 Dec
2009 2008
Audited Audited
R`000 R`000
Gross income from operations
and investments 78 938 59 216
Dividends received 34 939 38 149
Interest received 1 567 3 938
Income on financial instruments
and shares 9 976 -
Fees and sundry income 2 809 2 781
Fair value adjustment to investments 8 274 (16 939)
Equity accounted retained income
of associates 21 373 31 287
Share of net income of associates 53 936 67 056
Less: Dividends received (32 563) (35 769)
Impairments (181) (45)
Interest paid 3 467 2 335
Net income before expenses and
exceptional items 75 652 56 926
Less: Expenditure 18 538 15 869
Operating costs 18 208 15 473
Depreciation 330 396
Exceptional items - (profit)/loss (9 344) 33 509
Net income before taxation 66 458 7 548
Taxation - deferred 2 374 (512)
Net income for the year attributable to
equity shareholders 64 084 8 060
Translation of foreign
subsidiary/associates (1 536) (16)
Total comprehensive income for the year
attributable to equity shareholders 62 548 8 044
Earnings per share - cents 139,1 17,4
Dividends per share* - cents 14,0 14,0
Weighted average number of shares
in issue - 000`s 46 078 46 260
Headline earnings per share - cents 118,8 89,9
Reconciliation of headline earnings
Net income for the year 64 084 8 060
Gain on sale of associate (14 153) -
Exceptional losses - associates 4 628 -
Losses/costs arising from former
finance operations 181 33 509
Profit on sale of property, plant
and equipment - 1
Headline earnings for the year 54 740 41 570
* Dividends comprise 3 cents interim (2008: 3 cents) and 11 cents final
(December 2008: 11 cents) - proposed after year-end
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2009
Non-
distri- Accu-
Share Share butable mulated
capital premium reserve profit Total
R`000 R`000 R`000 R`000 R`000
Balance as at
1 January 2008 867 50 729 196 897 76 293 324 786
Total comprehensive
income for the year - - (16) 8 060 8 044
Share-based payment charge - - 163 - 163
Attributable income of
associates - - 31 287 (31 287) -
Movement in translation
and other reserves
of associates - - 24 729 - 24 729
Shares held in share trust (5) (696) - - (701)
Unclaimed dividends -
written back - - - 94 94
Dividends paid - - - (6 479) (6 479)
Balance as at
31 December 2008 862 50 033 253 060 46 681 350 636
Total comprehensive
income for the year - - (1 536) 64 084 62 548
Shares held in share trust - (1 855) - - (1 855)
Accumulated loss in
share trust - - (1 452) - (1 452)
Share-based payment charge - - 480 - 480
Attributable income
of associates - - 16 745 (16 745) -
Movement in translation
and other reserves
of associates - - (25 508) - (25 508)
Shares held in share trust
written back 5 696 - - 701
Dividends paid - - - (6 479) (6 479)
Balance as at
31 December 2009 867 48 874 241 789 87 541 379 071
CONTINGENT LIABILITIES
The group`s contingent liabilities at 31 December 2009 are as follows:
1. Put options given by the company to holders of S A Bias junior
loans which have due dates in 2010: R1,2 million (31 December
2008: R5,2 million). These reduced to nil in January 2010.
2. The group has rights and obligations in terms of shareholder
or purchase and sale agreements relating to its present or
former investments.
3. A group company has entered into lease agreements for the
premises that it occupies. The amounts due are as follows:
Year 1 R1,05 million
Years 2 to 3 R1,67 million
Investment commitments
Authorised: R20 million
INVESTMENT PROFILE at 31 December 2009
Voting
Listed/ Number of interest
Unlisted shares %
Investments in associates
Flowmax Holdings
Limited (BVI/UK) U 40,0
Ridge Empowerment
Capital (Pty)
Limited U 45,0
SA Bias Industries
(Pty) Limited U 48,5
Sunspray Food
Ingredients
(Pty) Limited U 47,1
Set Point Group
Limited L 108 441 609 31,6
Long-term investments
Datatec Limited L 700 000
Korbitec Holdings
(Pty) Limited U
Korbicom (Pty)Limited U
Metrofile Holdings Limited L 20 000 000
Primedia Holdings 1 Limited U
Economic Carrying Directors`
interest value value
% R`000 R`000
Investments in associates
Flowmax Holdings
Limited (BVI/UK) 40,0 30 848
Ridge Empowerment
Capital (Pty)
Limited 45,0 -
SA Bias Industries
(Pty) Limited 57,3 170 589
Sunspray Food
Ingredients
(Pty) Limited 47,1 19 386
220 823 367 519
Set Point Group
Limited 31,6 72 171 90 007
292 994 457 526
Long-term investments
Datatec Limited 18 795 18 795
Korbitec Holdings
(Pty) Limited 13 406 13 406
Korbicom (Pty) Limited 4 802 4 802
Metrofile Holdings Limited 27 000 27 000
Primedia Holdings 1 Limited - -
64 003 64 003
Total investments 356 997 521 529
PERFORMANCE INDICATORS
Annualised
Compound Compound
Growth Growth
1 year 5 years
(%) (%)
Headline earnings per share 32,1 16,4
Dividends per share 0,0 69,0
Intrinsic net asset value per share 7,6 24,6
COMMENTARY
Profile
Sabvest is an investment and finance group which has been listed since 1988.
Its ordinary and "N" ordinary shares are quoted in the Finance - Equity
Investment Instruments sector of the JSE Limited.
Sabvest has significant minority or joint controlling interests in five
groups, which are accounted for as associates, and a long-term portfolio of
five other investments which are accounted for on a fair value basis.
In addition, Sabvest maintains finance advances and debt instrument portfolios
and undertakes other fee and profit earning activities.
Financial results
Sabvest`s results for the year were ahead of expectations.
Headline earnings per share increased by 32% to 118 cents per share. This was
largely a result of fair value investment gains and gains on the sale of
investments. The group`s industrial associates produced lower results than the
prior year but in line with expectations.
Profit after taxation and exceptional items increased to R64 million due to
the improved headline earnings and exceptional gains of R14 million from a
change of interests in Korbitec which was at the time accounted for as an
associated company.
Earnings per share increased materially to 139 cents per share. The prior
year`s earnings per share figure was impacted by a substantial one-off charge
for the settlement of a legal dispute and is therefore not comparable.
Intrinsic value per share increased by 8% to 1 094 cents per share. This
increase was reduced by the effect of the strong rand on the translation of
the group`s foreign holdings in Flowmax and in the international businesses of
SA Bias Industries. Shareholders` funds with investments at intrinsic value
were R502,7 million (2008: R469,1 million).
With regard to medium-term growth, shareholders` attention is drawn to the
table of performance indicators. This shows satisfactory growth in headline
earnings per share, dividends per share and intrinsic net asset value per
share over five years notwithstanding poor economic conditions during eighteen
months of this period.
Changes in investment holdings
During the year Sabvest:
- Increased its investment in Set Point Group Limited to 108,4
million shares representing 31% of the equity of Set Point;
- Marginally reduced its interest in Metrofile Holdings Limited
to 20 million shares, being just below 5% to comply with
aspects of the King III report;
- Fully impaired its interests in Primedia Holdings 1 Limited
which, while remaining an excellent group of media businesses,
is in the process of a financial restructuring pursuant to an
LBO in 2007;
- Disposed of its portfolio shareholding in Massmart Holdings
Limited to fund the increase in its holding in Set Point Group
Limited;
- Re-organised its interests in the Korbitec Group pursuant to
the acquisition by Naspers of 51% of Korbitec Holdings with
the result that Sabvest now owns 8,5% of Korbitec Holdings,
17% of Korbicom and has received cash inflows arising from the
re-organisation.
One of the group`s associates, Ridge Empowerment Capital (Pty) Limited,
acquired 16,5% of Nimble Capital (Pty) Limited and 25% of Nimble Collection
Services (Pty) Limited, and is committed to an investment in the Nimble Credit
Opportunities Fund. In addition, Ridge disposed of its interest in West
Central Capital (Pty) Limited to the Nimble Group.
Subsequent to the year-end, Sabvest has promoted a process which may lead to
the delisting of Set Point Group Limited from the JSE. If concluded, this will
have the effect of increasing Sabvest`s percentage holding in Set Point.
Dividends
Dividends are determined relative to Sabvest`s own expected recurring cash
flows and relative to receipts from investments that are not earmarked for new
projects.
It is the group`s policy to consider dividends twice annually. The dividends
for the year have been maintained at 14 cents per share. 3 cents was declared
as an interim dividend and 11 cents as a final dividend subsequent to the year-
end.
Accounting policies
The condensed financial statements have been prepared in accordance with the
group`s accounting policies which are consistent with those of the previous
year`s financial statements except for the adoption of IAS 1 and comply with
IFRS and in accordance with IFRS 8 - Interim Financial Reporting (IAS34).
Audit opinion
Deloitte & Touche has issued an unmodified audit opinion. A copy of the audit
report is available for inspection at the registered office of the company.
Prospects
The businesses operated by the group`s associates and by the group`s investee
companies all continue to have sound medium-term growth prospects and are well
managed. However, the current economic downturn may continue to affect the
short-term profitability of some of the businesses.
Haroon Habib Christopher Seabrooke Raymond Pleaner
Chairman CEO CFO
Sandton
2 March 2010
Cash Dividend Declaration
Notice is hereby given that a final cash dividend of 11 cents (2008: 11 cents)
per ordinary share and "N" ordinary share for the twelve months ended 31
December 2009 has been declared payable to shareholders in accordance with the
undermentioned timetable:
Last date to trade "CUM"-dividend Thursday, 18 March 2010
Trading "EX"-dividend commences Friday, 19 March 2010
Record date Friday, 26 March 2010
Dividend payment date Monday, 29 March 2010
No dematerialisation or rematerialisation of share certificates will be
allowed for the period from Friday, 19 March 2010 to Friday, 26 March 2010,
both days inclusive.
Registered address: 4 Commerce Square, 39 Rivonia Road, Sandhurst, Sandton
2196
Communications: Postal address: PO Box 78677, Sandton 2146, Republic of South
Africa
Telephone: (011) 268 2400
Fax: (011) 268 2422
e-mail: ho@sabvest.com
Transfer secretaries: Computershare Investor Services (Pty) Limited, 70
Marshall Street, Marshalltown 2001
(PO Box 61051, Marshalltown 2107)
Directors: H Habib# (Chairman), P Coutts-Trotter (Deputy Chairman), CS
Seabrooke* (Chief Executive), CP Coutts-Trotter*, NSH Hughes#, DNM Mokhobo#,
GE Nel, R Pleaner*, BJT Shongwe# *Executive #Independent
www.sabvest.com
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 02/03/2010 16:32:21 Produced by the JSE SENS Department.
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