| Mon 29 Mar 2010, 7:05 | | SLO - Reviewed Interim Results of Southern Electricity Company Limited for the |
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SLO
SLO
SLO - Reviewed Interim Results of Southern Electricity Company Limited for the
Six Months Ended 31 December 2009
Southern Electricity Company Limited
(Registration Number 1997/006894/06)JSE Share Code: SLO & ISIN:
ZAE000041919("SELCo" or "the Group")
REVIEWED INTERIM RESULTS OF SOUTHERN ELECTRICITY COMPANY LIMITED FOR THE SIX
MONTHS ENDED 31 DECEMBER 2009
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED 31
DECEMBER 2009
6 months 6 months 12 months
ended ended ended
31 December 31 December 30 June
2009 2008 2009
Reviewed Reviewed Audited
(R`000) (R`000) (R`000)
Revenue 24 428 20 002 40 359
Turnover 24 371 19 865 40 207
Cost of sales (14 745) (9 753) (23 185)
Gross profit 9 626 10 112 17 022
Other income 57 - 63
Operating costs (7 737) (8 911) (15 395)
Profit before interest 1 946 1 201 1 690
and tax
Investment revenue - 100 156
Finance costs (301) (504) (921)
Profit before taxation 1 645 797 926
Taxation (571) (289) 179
Total comprehensive 1 074 508 1 105
income
Earnings & Diluted 1.96 0.92 2.01
earnings per ordinary
share (cents)
Weighted average 54 945 373 54 945 373 54 945 373
number of shares
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2009
6 months as 6 months as 12 months
at at ended
31 December 31 December 30 June
2009 2008 2009
Reviewed Reviewed Audited
(R`000) (R`000) (R`000)
ASSETS
Non-current assets 28 588 30 258 29 767
Investment property 13 000 13 000 13 000
Property plant and 8 041 8 578 8 654
equipment
Intangible assets 7 547 8 679 8 113
Current assets 7 816 7 596 8 570
Inventories 1 163 1 117 1 459
Other loans receivable 47 27 29
Current tax receivable 424 362
Trade and other 3 678 4 023 4 021
receivables
Cash and cash 2 504 2 430 2 700
equivalents
Total assets 36 404 37 854 38 338
EQUITY AND LIABILITIES
Equity 23 365 21 694 22 291
Share capital 10 163 10 163 10 163
Non-distributable 16 16 16
reserve
Retained income 13 186 11 515 12 112
Liabilities
Non-current 7 831 7 380 7 233
liabilities
Other financial 3 122 3 222 3 095
liabilities
Deferred tax 4 709 4 158 4 138
Current liabilities 5 208 8 779 8 814
Other loans payable 2 725 5 056 5 048
Other financial 122 290 286
liabilities
Taxation payable - 436 -
Trade and other 2 251 2 843 3 322
payables
Provisions 110 154 159
Total Liabilities 13 039 16 159 16 047
Total equity and 36 404 37 854 38 338
liabilities
CONDENSED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 31 DECEMBER 2009
6 months as 6 months as 12 months
at at ended
31 December 31 December 30 June
2009 2008 2009
Reviewed Reviewed Reviewed
(R`000) (R`000) (R`000)
Balance at beginning 22 291 21 186 21 186
of period
Total comprehensive 1 074 508 1 105
income
Balance at end of 23 365 21 694 22 290
period
CONDENSED CONSOLIDATED CASH FLOW STATEMENT FOR THE PERIOD ENDED 31 DECEMBER 2009
6 months as 6 months as 12 months
at at ended
31 December 31 December 30 June
2009 2008 2009
Reviewed Reviewed Audited
(R`000) (R`000) (R`000)
Cash flows from 2 311 855 1 974
operating activities
Cash receipts from 24 371 19 865 40 207
customers
Cash paid to suppliers (21 712) (17 988) (36 501)
and employees
Cash generated by 2 659 1 877 3 705
operating activities
Interest income - 100 156
Finance costs (286) (504) (921)
Taxation paid (62) (618) (967)
Cash flows from (48) (778) (1 484)
investing activities
Property plant and (29) (778) (1 484)
equipment acquired
Increase in loans (19) - -
receivable
-
Cash flow from (2 459) 1 544 1 403
financing activities
Repayment of (136) (120) (248)
borrowings
Other loans - (2 323) (663) 1 651
repayments
Repayment of loans - 2 328 -
from group companies
Total cash movement (196) 1 621 1 892
for the period
Cash and cash 2 700 808 808
equivalents at the
beginning of the
period
Cash and cash 2 504 2 430 2 700
equivalents at end of
period
COMMENTARY
Review for the reporting period
The gross profit margin has remained stable for the 6 months ended 31 December
2009. The total comprehensive income for the period under review amounted to R 1
074 000 compared to a total comprehensive income of R 508 000 for the
corresponding 6 month period in 2008. Details of the earnings per ordinary share
are reflected in the Condensed Consolidated Statement of Comprehensive Income.
The group achieved earnings of 1.96 cents per share compared to earnings of 0.92
cents in the corresponding 6 month period in 2008.
The reason for the increase in profits can largely be ascribed to an improvement
in operating efficiencies.
Outlook
SELCo`s business in Namibia demonstrates a profitable and sustainable business
model in the electricity distribution industry. Management continues to explore
opportunities to apply the business model in other aspects of the electricity
distribution in Southern Namibia.
Directorate
Mr Montaque Senekal suddenly passed away on Saturday, 26 September 2009, due to
natural causes. The board was shocked and saddened to lose Mr Senekal so
suddenly and greatly misses his valuable contributions and considered guidance.
Mr Allen van Zyl resigned as a director of SELCo with effect 23 February 2010 to
pursue other interests. The board wishes to thank Mr Van Zyl for his valuable
contribution. There are no immediate plans to replace Messrs Senekal and Van
Zyl as directors and their responsibilities have been allocated to the remaining
executive directors.
Segmental Analysis
The group engages in only one business activity providing only one product or
service as a vertically integrated electricity distributor. The rental income
and management fees received within the group are insignificant and the group
therefore only reports as one operating segment. The group`s business is
limited to Southern Namibia.
The numbers reported to the chief operating decision maker are made in
accordance with IFRS and can therefore be read directly from the annual
financial statements.
Subsequent events
There were no material events subsequent to the six month period ended 31
December 2009.
Basis of preparation
The condensed consolidated interim financial statements have been prepared in
accordance with IAS 34 Interim Financial Reporting and in compliance with the
South African Companies Act, 1973. The condensed consolidated interim financial
statements are prepared on the historical cost basis, with the exception of
certain financial instruments which are measured at fair value. The results of
the interim period are not necessarily indicative of the results for the entire
year, and these unaudited financial statements should be read in conjunction
with the audited financial statements for the year ended 30 June 2009.
The preparation of condensed consolidated interim financial statements requires
the use of estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the date
of the condensed consolidated interim financial statements and the reported
amounts of revenue and expenses during the reporting periods. Although these
estimates are based on management`s best knowledge of current events and actions
that the group may undertake in the future, actual results may differ from those
estimates.
The accounting policies and methods of computation are consistent with those
applied in the financial statements for the year ended 30 June 2009.
Mazars Moores Rowland, the group`s independent auditor, has reviewed the interim
financial statements contained in this interim report and has expressed an
unqualified review opinion on the interim financial statements. Their review
report is available for inspection at the company`s registered office.
Renewal of cautionary announcement
Shareholders are referred to the cautionary announcement published on 19
February 2010 and are advised that the company continues to be involved in
negotiations which could have a material effect on the price of its shares.
Shareholders are therefore advised to continue exercising caution when dealing
in SELCO`s shares until such time as a further announcement is made.
Dividend
No dividend has been declared for the six month period ended 31 December 2009.
EARNINGS AND HEADLINE EARNINGS PER SHARE
6 months 6 months 12 months
as at 31 as at 31 ended 30
December December June 2009
2009 2008 Audited
Reviewed Reviewed
Cents Cents Cents
Earnings and diluted earnings 1.96 0.92 2.01
per share
Headline and diluted headline 1.96 0.92 2.01
earnings per share
Basic attributable earnings per share are calculated by dividing the net profit
attributable to shareholders by the weighted average number of ordinary shares
in issue during the period.
The calculation of earnings and diluted earnings per ordinary share is based on
a profit for the group of R 1 074 000 (2008: R 508 000) on weighted average
ordinary shares of 54945373 (2008: 54945373) for the period. There are no
reconciling items to headline earnings.
By order of the Board
29 March 2010
DIRECTORS:
B Hlongwa* (Chairman), C F Bosch (CEO), PM Bester, I Bosch, A van Zyl, H van
Zyl*
* Non Executive
COMPANY SECRETARY AND REGISTERED OFFICE:
Elsa Steyn, 99 Fascia Street, Silvertondale, 0184
TRANSFER SECRETARIES:
Link Market Services South Africa (Pty) Limited, PO Box 4844, Johannesburg, 2000
SPONSOR:
Grindrod Bank Limited, PO Box 78011, Sandton, 2146
AUDITORS:
Mazars Moores Rowland
Date: 29/03/2010 07:05:04 Produced by the JSE SENS Department.
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