| Mon 29 Mar 2010, 16:39 | | SBL - Sable Holdings Limited - Unaudited interim group results for six months |
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SBL
SBL
SBL - Sable Holdings Limited - Unaudited interim group results for six months
ended 31 December 2009
SABLE HOLDINGS LIMITED
(`Sable`)
(Registration No. 1968/010636/06)
Share code: SBL & ISIN: ZAE000006383
(Incorporated in the Republic of South Africa)
Unaudited interim group results for six months ended 31 December 2009
Consolidated condensed statement of comprehensive income
(Unaudited) (Audited)
Six months ended Year ended
% 31 December 30 June
R`000 change 2009 2008 2009
Revenue 8.4 16 652 15 363 32 563
Operating profit before non-
trading items 7 709 5 093 12 405
Profit on disposal of shares in
subsidiary and listed investments 2 340 137 48
(Loss)/profit on disposal of
investment property (75) 5 392 5 395
Fair value gains/(impairment) on
listed and associate investment 236 (2 113) (2 191)
Fair value gains on investment
property - - 21 920
Operating profit 20.0 10 210 8 509 37 577
Finance income 786 1 723 2 943
Finance costs (8 645) (10 243) (22 492)
Share of (loss)/profit from
associates and joint ventures (1 973) 4 285 1 796
Profit before taxation (91.2) 378 4 274 19 824
Taxation 1 145 328 (4 922)
Profit for the period (66.9) 1 523 4 602 14 902
Other comprehensive income - - -
Total comprehensive income for
the period 1 523 4 602 14 902
Total comprehensive income attributable to:
Equity shareholders of Sable
Holdings Limited 1 527 4 619 14 761
Non-controlling interest (4) (17) 141
1 523 4 602 14 902
Determination of headline (loss)/earnings
Net profit attributable to equity
shareholders of the holding company 1 527 4 619 14 761
Adjustments after tax:
Net gains/(impairment) of investments:
Subsidiaries (203) 1 817 2 191
Associates and joint ventures - - 198
(Loss)/profits on disposal of investment
property:
Subsidiaries 65 (4 637) (4 640)
Profit on disposal of shares in subsidiary
and listed investments:
Subsidiaries (2 012) (118) -
Profits on disposal of investments in
associates and joint ventures:
Associates and joint ventures - - (1 727)
Fair value gains on investment property:
Subsidiaries - - (15 782)
Associates and joint ventures - - 2 063
Headline (loss)/earnings for the period (623) *1 681 (2 936)
Consolidated condensed statement of financial position
(Unaudited) (Audited)
As at As at
31 December 30 June
R`000 2009 2008 2009
Assets
Non-current assets 541 059 561 089 587 055
Investment property 305 807 327 110 349 640
Investments 226 242 226 651 228 602
Other non-current assets 9 010 7 328 8 813
Current assets 9 293 17 120 18 947
Cash and cash equivalents 6 913 13 060 7 056
Other current assets 2 380 4 060 11 891
Total assets 550 352 578 209 606 002
Equity and liabilities
Total equity attributable to equity
holders 372 616 352 050 371 139
Shareholders` equity 372 541 352 129 371 060
Non-controlling interest 75 (79) 79
Total liabilities 177 736 226 159 234 863
Non-current liabilities 162 441 172 176 200 923
Interest-bearing borrowings 129 202 140 781 161 868
Deferred taxation 33 239 31 395 39 055
Current liabilities 15 295 53 983 33 940
Loans on demand 5 756 38 913 20 117
Other current liabilities 9 539 15 070 13 823
Total equity and liabilities 550 352 578 209 606 002
Consolidated condensed statement of cash flows
(Unaudited) (Audited)
Six months ended Year ended
31 December 30 June
R`000 2009 2008 2009
Cash inflow/(outflow) from operating
activities 1 854 (862) (5 979)
Cash generated from operations 10 070 8 460 14 868
Finance costs (8 645) (10 243) (22 492)
Finance income 786 1 723 2 943
Dividend paid - - (2)
Taxation paid (357) (802) (1 296)
Cash inflow/(outflow) from investing
activities 48 510 (17 959) (30 153)
Cash (outflow)/inflow from financing
activities (32 896) 36 999 63 852
Net increase in cash and cash
equivalents 17 468 18 178 27 720
Cash and cash equivalents at the
beginning of the period (16 311) (44 031) (44 031)
Cash and cash equivalents at the
end of the period 1 157 (25 853) (16 311)
Cash and cash equivalents at the end of the period consist of:
Cash and cash equivalents 6 913 13 060 7 056
Bank overdrafts - (17 186) (20 117)
Loans on demand (5 756) (21 727) (3 250)
1 157 (25 853) (16 311)
Statistics
(Unaudited) (Audited)
As at As at
31 December 30 June
`000 2009 2008 2009
Number of ordinary shares in issue 9 967 8 170 9 967
Weighted average number of ordinary shares
in issue 9 967 8 170 9 176
Less: Treasury shares (792) (792) (792)
Weighted average number of ordinary shares
in issue net of treasury shares 9 175 7 378 8 384
Earnings per ordinary share (cents) 16.6 62.6 176.1
Headline (loss)/earnings per ordinary share
(cents) (6.8) *22.8 (35.0)
Dividend per ordinary share (cents) - - -
Net asset value per ordinary share (cents) 4 061 4 399 4 045
Interest-bearing borrowings to total
equity (%) 35.6 52.6 50.0
Interest-bearing borrowings to total
assets (%) 24.1 32.0 30.6
Consolidated condensed statement of changes in equity
(Unaudited) (Audited)
Six months ended Year ended
31 December 30 June
R`000 2009 2008 2009
Balance at the beginning of the period 371 139 319 948 319 948
Net profit for the period 1 527 4 619 14 761
Claw-back rights offer - 27 500 34 995
Movement in other reserves (50) (17) 1 435
Balance at the end of the period 372 616 352 050 371 139
Consolidated condensed segmental analysis
(Unaudited) (Audited)
Six months ended Year ended
31 December 30 June
R`000 2009 2008 2009
Segmental revenue 16 652 15 363 32 563
Investment property 17 027 15 757 33 267
Trading property - - -
Investments - - -
Corporate and other net revenue (375) (394) (704)
Inter-segment charges (375) (394) (705)
Corporate and other - - 1
Segmental operating profit before
non-trading items 7 709 5 093 12 405
Investment property 12 782 9 301 18 687
Trading property - - -
Investments 748 464 3 037
Corporate and other (5 821) (4 672) (9 319)
Segmental assets 550 352 578 209 606 002
Investment property 305 807 327 110 357 465
Investments 224 484 226 651 228 602
Corporate and other 20 061 24 448 19 935
Comments
Basis of preparation and accounting policies
The condensed consolidated financial results have been prepared using accounting
policies consistent with International Financial Reporting Standards ("IFRS"),
in accordance with the requirements of IAS 34 Interim Financial Reporting, the
Listings Requirements of the JSE and the manner required by the South African
Companies Act. The accounting policies are consistent with those used in the
annual financial statements for the financial year ended 30 June 2009 with the
following exceptions:
The following new Standards and amendments to Standards were mandatory for the
first time for the financial period beginning 1 July 2009:
IAS 1 (revised), "Presentation of financial statements": The revised Standard
prohibits the presentation of items of income and expenses (that is "non-owner
changes in equity") in the statement of changes in equity, requiring "non-owner
changes in equity" to be presented separately from owner changes in equity. All
"non-owner changes in equity" are required to be shown in a performance
statement.
Entities can choose whether to present one performance statement (the statement
of comprehensive income) or two statements (the income statement and statement
of comprehensive income).
The group has elected to present one statement of comprehensive income. The
unaudited condensed consolidated interim financial statements have been prepared
using the revised disclosure requirements.
IFRS 8, "Operating segments": IFRS 8 replaces IAS 14, `Segment reporting`,
extends the scope of segmental reporting, requiring additional disclosure. This
Standard requires the company to adopt the `management approach` to reporting
segment information under which segment information is presented on the same
basis as that used for internal reporting purposes.
The interims have not been audited or reviewed by the group`s auditors.
(*)Restatement of determination of headline (loss)/earnings for the period
The comparatives for the period ended 31 December 2008 in determining the
headline (loss)/earnings for the period have been restated due to a prior period
error in calculating the headline (loss)/earnings.
The headline earnings for the period 31 December 2008 previously was reported at
R6 732 000 and has been restated to R1 681 000. This resulted in headline
earnings per ordinary share decreasing from 91.2 cents to 22.8 cents per share.
Unaudited comparative analysis between 31 December 2009 and 31 December 2008
Consolidated statement of comprehensive income
The group reported a net profit of R1.5 million (2008: R4.6 million) for the
period ended 31 December 2009. Earnings per share decreased by 73.5% from 62.6
cents to 16.6 cents, with headline earnings per share decreasing by 129.8% from
22.8 cents (*) to a headline loss per share of 6.8 cents.
Revenue increased by 8.4% from R15.4 million to R16.7 million. Operating profit
before non-trading items increased by 51.4%, from R5.1 million to R7.7 million.
Profit on disposal of shares in subsidiary (# see below) and listed investments
of R2.3 million related mainly to a 50% sale of shares in a wholly-owned
subsidiary, which owns Hobart Grove Retail Shopping Centre located in Bryanston,
Sandton.
Operating profit of R10.2 million (2008: R8.5 million) increased by 20.0%.
Finance costs of R8.6 million (2008: R10.2 million) decreased by 15.6% due to
lower interest rates and reduced borrowings.
Associate and joint venture losses of R2.0 million (2008: profit of R4.3
million) were as a result of difficult trading conditions in respect of sales in
residential, retirement, industrial and commercial developments.
The taxation credit of R1.1 million (2008: credit of R0.3 million) related
mainly to the increase in assessed losses.
Unaudited comparative analysis between 31 December 2009 and 30 June 2009
Consolidated statement of financial position
The net asset value increased from 4 045 cents (June 2009) to 4 061 cents and
interest-bearings borrowings to total equity reduced from 50.0% to 35.6%.
Assets
Investment property reduced by a net amount of R43.8 million comprising mainly
the 50% sale of shares in a wholly-owned subsidiary (#). The subsidiary, now a
joint venture, has been equity accounted from the effective date of 30 September
2009.
Investments have been stated at R226.2 million (June 2009: R228.6 million)
comprising investments in associates and joint ventures of R224.5 million (June
2009: R223.0 million) and investments in listed shares of R1.7 million (June
2009: R5.6 million). Investments in listed shares decreased from R5.6 million to
R1.7 million due to the significant disposal of ERM Limited shares, resultant
from its recent delisting.
The investments in associates and joint ventures increase of R1.5 million was as
a result of net loan funding of R3.5 million and losses of R2.0 million.
Current assets comprised of cash and cash equivalents of R6.9 million (June
2009: R7.1 million), trade and other receivables of R2.4 million (June 2009:
R4.1 million) and non-current asset held for sale of Rnil (June 2009: R7.8
million).
Equity and liabilities
Shareholders` equity increased by way of net profit for the year of R1.5
million.
Interest-bearing borrowings decreased by R32.7 million from R161.9 million (June
2009) to R129.2 million. R15.0 million of the reduction was funded by way of the
sale of shares(#) in Hobart Grove Retail Shopping Centre as mentioned above and
the balance of R17.7 million comprised the sale of listed investments, a non-
current asset held for sale and a loan repayment from a joint venture due to
part proceeds from the sale of Ferndale Shopping Centre. The deferred taxation
liability decreased to R33.2 million (June 2009: R39.1 million) due to the 50%
sale of shares in a wholly-owned subsidiary company (#).
Loans on demand have reduced by 71.4% to R5.8 million (June 2009: R20.1 million)
and other current liabilities reduced by 31.0% from R13.8 million to R9.5
million. This has been primarily funded by the proceeds from the sale of shares
in a wholly-owned subsidiary (#) and other surplus operating cash flow.
Overview and prospects
Sable, with its building partners, Abbeydale Building and Civils (Pty) Limited,
have commenced with a R68.0 million re-development of Hobart Grove Retail
Shopping Centre in Bryanston, Sandton. The centre will be extended to include an
additional 4 450 sqm of retail area anchored by Super Spar and is expected to be
completed in March 2011.
In addition, Sable`s 13.4% investment in a 5 444 sqm commercial office building
in Fourways, Sandton, has been completed with initial tenants taking occupation
in April 2010. Further commercial office projects are being analysed to
determine best land usage for the remainder of the 160 000 sqm site.
Sable, through a joint venture, concluded the sale of Ferndale Shopping Centre,
Randburg for R88.8 million in November 2009.
Strategic industrial land has been acquired in January 2010 in Laserdowns,
Honeydew. Future development activity for investment and resale purposes on this
site will complement Sable`s neighbouring industrial park.
Sales of existing sectional title retirement apartments, residential stands and
apartments in Hazeldean, Pretoria, have accelerated in the early part of 2010 as
purchasers look to re-enter the market. Management is confident that the
infrastructure spend made in previous years has been well invested and
shareholders will benefit there from in the foreseeable future.
An existing land acquisition made by Sable and its development partners in the
Fourways, Sandton node, has been earmarked for sectional title retirement
apartments and clusters for resale as well as sectional title commercial office
parks for rental and/or resale. Marketing analysis is currently being undertaken
to determine the viability of commencing with these developments.
(#)Disposal of a wholly-owned subsidiary
Shares in the following subsidiary were disposed of in the six month period
ended 31 December 2009:
Effective date % %
of disposal held disposed
Howec Metals (1964) (Proprietary)
Limited 30 September 2009 100 50
Details of the total net assets disposed of and the resulting profit were as
follows:
R`000 Total
Total proceeds 10 000
Fair value of net assets disposed (7 700)
Profit on disposal 2 300
The assets and liabilities disposed of were as follows:
Investment property 46 076
Other non-current assets 738
Other current assets 79
Interest-bearing borrowings (25 379)
Deferred taxation liability (5 849)
Other current liabilities (7 965)
Fair value of subsidiary disposed 7 700
Board changes
Mr Kevin Haswell has been appointed as financial director of the company with
effect from 2 March 2010. Mr Gavin Bowes will no longer act as acting financial
director but continue to act as managing director of the company.
Dividends
The board of directors has resolved not to declare a dividend for the six months
ended 31 December 2009. All cash reserves have been earmarked for funding
property opportunities that are currently being investigated.
Post balance sheet events
The board of directors of Sable are not aware of any material events that have
occurred between the end of the interim period and the date of this report.
Going concern
The financial statements have been prepared on the going concern basis as the
directors have every reason to believe that the company has adequate resources
in place to continue in operation for the foreseeable future.
For and behalf of the board
PH Nash (Chairman)
GBJ Bowes (Managing director)
29 March 2010
Directors: PH Nash (Chairman), GBJ Bowes (Managing), KA Haswell (Financial), IA
Chambers, IR Kemp, JA Pelser*, DJ Pennington*, (*non-executive)
Registered office: Sable Place, Fairway Office Park, 52 Grosvenor Road,
Bryanston 2021. PO Box 786390, Sandton 2146.
Transfer secretaries: Computershare Investor Services (Pty) Limited, 70 Marshall
Street, Johannesburg. PO Box 61051, Marshalltown 2107.
Sponsor: Sasfin Capital - a division of Sasfin Bank Limited.
70
Date: 29/03/2010 16:39:01 Produced by the JSE SENS Department.
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