| Mon 24 May 2010, 16:48 | | TMT - Trematon Capital Investments - Unaudited interim results for the six |
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TMT - Trematon Capital Investments - Unaudited interim results for the six
months ended 28 February 2010
TREMATON CAPITAL INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1997/008691/06)
Share code: TMT
ISIN: ZAE000013991
("Trematon" or "the company")
Unaudited Interim Results for the six months ended 28 February 2010
Further cautionary announcement
Directors` review
Commentary on financial results
Net asset value at the end of the interim period was R161.6 million (92
cents per share) which represents an increase of 14% since the last year-end
and 26% since the end of the previous interim period.
Earnings attributable to ordinary shareholders amounted to R18.6 million
compared to a loss of R12.5 million in the previous interim period. The
improvement in earnings is due to an increase in profits from equity
accounted investments (discussed in more detail below), a reduction in
losses at Club Mykonos and the fact that there was no share trading during
the current period whereas a share trading loss was incurred in the previous
period.
A profit of R34.2 million arising from equity accounted investments was
recorded during the period (compared to R2.5 million in the previous interim
period). This amount is made up approximately as follows: R5.2 million
relates to operating income within associates, R12.7 million relates to
revaluations of investment properties and R16.3 million to the sale of
properties. Certain of the property sales are in terms of agreements which
allow for deferred payments, therefore the bulk of the equity accounted
income has no immediate impact on cash flows.
The loan impairment of R1 million (R17.3 million in the comparative period)
represents a mark-to-market adjustment in the group`s indirect investment in
Mazor Group Ltd.
The trading loss of R3.7 million (prior period R7.8 million) represents the
net costs of running the group`s operations.
Commentary on individual investments
Ingenuity Property Investment Ltd
At the reporting date the group held 137 million shares in Ingenuity
Property Investment Ltd (see Subsequent events below).
Boulevard Park Trust (37.5% interest)
Boulevard Park is a well-established landmark office park in Cape Town and
the park as a whole is now more than 80% let to blue-chip tenants. There is
a high level of interest in the remaining space.
The Boulevard was recognised at this year`s SAPOA awards for innovative
excellence in property development and won first prize in the category
"Office Developments". Faircape Property Developers conceived and managed
the project from inception and are to be congratulated on an excellent
performance during a challenging period for similar developments.
At the reporting date loans due from the Boulevard Park Trust amounted to
R67.6 million.
Club Mykonos Langebaan Ltd ("CML") (29.6% interest)
CML has performed according to expectations. Operating costs have been
reduced as far as possible and the resultant operating losses have been
curtailed. After the contribution from the Mykonos Casino, the company made
a small profit for the period. Future profitability is heavily dependent on
the market for coastal leisure property development. At present this market
is subdued.
Faircare Trust (40% interest)
The Faircare retirement villages are fully occupied and demand for resales
has been good in most areas. There is ongoing demand for high-end retirement
villages offering a full suite of services and we are confident that this
investment will yield excellent returns in the long term.
Other investments
The balance of the portfolio consists of minority interests in Grand Parade
Investments, Stalagmite (Pty) Ltd and The New Wembley Trust. These
investments were reported on at year-end and there are no new developments
which require commentary.
Subsequent events
The proceeds of the sale of shares in Ingenuity Property Investment Ltd
amounted to R68.5 million and were received after the reporting date. In
addition, an amount of R20 million due from the Boulevard Park Trust was
repaid after the reporting date.
These transactions have reduced the debt at the centre from R105.5 million
to R24.0 million. The group is therefore in a very sound financial position
and has sufficient capacity to make material new investments.
Cautionary announcement
The group is currently trading under a cautionary announcement and
shareholders are reminded that the company has entered into negotiations,
which if successfully concluded may have a material effect on the price of
the company`s securities. Accordingly, shareholders are advised to exercise
caution when dealing in the company`s securities until a full announcement
is made.
MONTY KAPLAN ARNOLD SHAPIRO
Chairman Chief Executive Officer
24 May 2010
STATEMENT OF FINANCIAL POSITION
Unaudited Audited
28 February 31 August
2010 2009 2009
R`000 R`000 R`000
Assets
Non-current assets 298 038 271 011 257 543
Property, plant and equipment 7 735 12 542 7 990
Investment property 1 786 - 1 446
Investments 287 108 254 049 246 628
Deferred tax asset 1 409 4 420 1 479
Current assets 79 425 84 055 99 361
Loans receivable 896 2 415 1 248
Trade and other receivables 6 357 12 430 9 362
Investments 13 000 10 467 11 440
Inventory 30 771 28 232 31 904
Tax receivable 224 1 293 224
Cash and cash equivalents 28 177 29 218 45 183
Total assets 377 463 355 066 356 904
EQUITY AND LIABILITIES
Equity 258 997 225 653 236 725
Share capital and share premium 203 296 203 296 203 296
Fair value reserve 4 763 372 2 929
Accumulated loss (46 428) (75 182) (64 977)
Total equity attributable to equity
holders of the parent 161 631 128 486 141 248
Non-controlling interest 97 366 97 167 95 477
Non-current liabilities 4 684 - 4 386
Deferred tax liability 4 684 - 4 386
Current liabilities 113 782 129 413 115 793
Loans payable 105 511 113 562 104 369
Secured liabilities 7 280 7 376 7 312
Tax payable 37 24 189
Trade and other payables 954 8 403 3 725
Bank overdraft - 48 198
Total equity and liabilities 377 463 355 066 356 904
Net asset value per share 92 cents 73 cents 81 cents
STATEMENT OF COMPREHENSIVE INCOME
Unaudited
Six months ended
28 February
2010
Note R`000
Revenue 9 389
Trading loss (3 717)
Investment income 7 327
Finance costs (4 806)
Profit on change in shareholding 221
Impairment of investment in associate (11 426)
Impairment of loan (1 008)
Profit from equity accounted investment
(net of tax) 34 249
Profit/(loss) before taxation 20 840
Taxation (94)
Profit/(loss) for the period/year 20 746
Profit attributable to:
Owners of the company 18 549
Non-controlling interest 2 197
Profit/(loss) for the period 20 746
Earnings per share
Number of shares issued (thousands) 174 873
Weighted average number of
shares (thousands) 174 873
Earnings per share (cents) 10.6
Diluted earnings per share (cents) 10.6
Headline earnings per share (cents) 2 17.7
Diluted headline earnings per share (cents) 17.7
Unaudited Audited
Six months ended Year ended
28 February 31 August
2009 2009
R`000 R`000
Revenue 16 794 42 626
Trading loss (7 841) (17 971)
Investment income 9 646 18 361
Finance costs (7 023) (12 992)
Profit on change in shareholding 540 540
Impairment of investment in associate - -
Impairment of loan (17 278) (5 410)
Profit from equity accounted
investment (net of tax) 2 509 13 772
Profit/(loss) before taxation (19 447) (3 700)
Taxation 6 059 (1 147)
Profit/(loss) for the period/year (13 388) (4 847)
Profit attributable to:
Owners of the company (12 485) (2 280)
Non-controlling interest (903) (2 567)
Profit/(loss) for the period (13 388) (4 847)
Earnings per share
Number of shares issued (thousands) 174 873 174 873
Weighted average number of shares
(thousands) 174 873 174 873
Earnings per share (cents) (7.1) 19.7
Diluted earnings per share (cents) (7.1) 19.7
Headline earnings per share (cents) (0.4) 5.5
Diluted headline earnings per
share (cents) (0.4) 5.5
CASH FLOW STATEMENT
Unaudited Audited
Six months ended Year ended
28 February 31 August
2010 2009 2009
R`000 R`000 R`000
Cash flows from operating activities
Cash utilised in operations (3 346) (1 733) (6 240)
Interest received 6 937 8 377 17 092
Dividends received 390 1 269 1 269
Finance costs (4 806) (7 023) (12 992)
Tax (paid)/received (177) (13) 926
Net cash from operating activities (1 002) 877 55
Cash flows from investing activities
Acquisition of property, plant and
equipment (323) (44) (671)
Acquisition of investment property (340) - (1 446)
Proceeds on disposal of property,
plant and equipment 13 2 146
Increase in loans receivable (656) - (11 492)
Loan repaid by joint venture - 5 789 5 790
Loans advanced to associates (15 524) (13 197) -
Acquisition of investments (85) (8 075) (8 895)
Proceeds from sale of investments - 1 267 17 584
Net cash from investing activities (16 915) (14 258) 1 016
Cash flows from financing activities
Decrease in secured liabilities (32) (2 305) (2 369)
Increase in borrowings 1 142 10 366 11 792
Net cash from financing activities 1 110 8 061 9 423
Net (decrease)/increase in cash and
cash equivalents (16 807) (5 320) 10 494
Cash and cash equivalents at the
beginning of the period/year 44 984 34 490 34 490
Total cash and cash equivalents at
the end of the period/year 28 177 27 170 44 984
STATEMENT OF CHANGES IN EQUITY
Share Share Total share
capital premium capital
R`000 R`000 R`000
Balance at 1 September 2008 1 749 201 547 203 296
Total recognised income - - -
Loss for the year - - -
Total income recognised
directly in equity - - -
Fair value loss on
available-for-sale investments - - -
Change in shareholding in
subsidiary - - -
Fair value reserve realised on
sale of investments - - -
Acquisition of subsidiary - - -
Total equity at 31 August 2009 1 749 201 547 203 296
Balance at 1 September 2009 1 749 201 547 203 296
Total recognised income - - -
Profit for the period - - -
Total income recognised directly
in equity - - -
Fair value gain on
available-for-sale investments - - -
Change in shareholding in
subsidiary - - -
Total equity at 28 February 2010 1 749 201 547 203 296
Fair value Accumulated
reserve loss Total
R`000 R`000 R`000
Balance at 1 September 2008 13 409 (62 697) 154 008
Total recognised income (10 479) (2 280) (12 759)
Loss for the year - (2 280) (2 280)
Total income recognised
directly in equity (10 479) - (10 479)
Fair value loss on
available-for-sale
investments (3 667) - (3 667)
Change in shareholding in
subsidiary - - -
Fair value reserve realised
on sale of investments (6 812) - (6 812)
Acquisition of subsidiary - - -
Total equity at 31 August 2009 2 930 (64 977) 141 249
Balance at 1 September 2009 2 930 (64 977) 141 249
Total recognised income 1 833 18 549 20 382
Profit for the period - 18 549 18 549
Total income recognised
directly in equity 1 833 - 1 833
Fair value gain on
available-for-sale investments 1 833 - 1 833
Change in shareholding in
subsidiary - - -
Total equity at 28 February 2010 4 763 (46 428) 161 631
Non-controlling Total
interest equity
R`000 R`000
Balance at 1 September 2008 98 084 252 092
Total recognised income (2 607) (15 366)
Loss for the year (2 566) (4 846)
Total income recognised directly in
equity (41) (10 520)
Fair value loss on available-for-sale
investments - (3 667)
Change in shareholding in subsidiary (41) (41)
Fair value reserve realised on sale
of investments - (6 812)
Acquisition of subsidiary 98 084 98 084
Total equity at 31 August 2009 95 477 236 726
Balance at 1 September 2009 95 477 236 726
Total recognised income 1 889 22 271
Profit for the period 12 197 20 746
Total income recognised directly
in equity (308) 1 525
Fair value gain on available-for-sale
investments - 1 833
Change in shareholding in subsidiary (308) (308)
Total equity at 28 February 2010 97 366 258 997
NOTES
1 Presentation of annual financial statements
Trematon Capital Investments Limited ("the company") is a company domiciled
in South Africa. The consolidated financial statements of the company for
the period ending 28 February 2010 comprise the company and its subsidiaries
(together referred to as the "group") and the group`s interest in jointly
controlled entities.
The interim financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS), IAS 34 - Interim
Reporting, as well as the AC 500 Standards as issued by the Accounting
Practices Board, the Listings Requirements of the JSE Limited and the South
African Companies Act. The interim financial statements have been prepared
on the going concern basis using a combination of the historical cost and
fair value basis of accounting.
All significant accounting policies have been consistently applied to all
periods presented and throughout the group.
The consolidated interim financial statements are stated in Rands, which is
the company`s functional and presentation currency.
The preparation of interim financial statements in conformity with IFRS
requires management to make judgements, estimates and assumptions that
affect the application of policies and reported amounts of assets and
liabilities, income and expenses.
The estimates and associated assumptions are based on historical experience
and various other factors that are believed to be reasonable under
circumstances, the results of which form the basis of making judgements
about carrying values of assets and liabilities that are not readily
apparent from other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period, or the period
of the revision and future periods if the revision affects both current and
future periods.
The interim financial statements have not been reviewed or audited by KPMG
Inc.
Unaudited Audited
Six months ended Year ended
28 February 31 August
2010 2009 2009
Headline earnings reconciliation R`000 R`000 R`000
2 Headline earnings per share
Headline earnings per share are
calculated as follows:
Profit/(loss) attributable to equity
holders of the parent 18 549 (12 485) (2 280)
Realised profit on available-for-sale
investments, net of minority interest - (60) (656)
Realised gain on change in shareholding - (540) (540)
Impairment of property, plant and
equipment - - 4 647
Impairment of investment in associate 11 426 - -
Impairment of loan 1 008 17 278 5 410
Tax effect on impairment of loan - - 1 193
Tax effects on available-for-sale
investments, net of minority interest - (4 829) 92
Headline earnings 30 983 (636) 7 866
Headline earnings per share (cents) 17.7 (0.4) 4.5
Diluted headline earnings per share
(cents) 17.7 (0.4) 4.5
The calculation of headline earnings per share is based on the weighted
average number of 174 872 545 shares in issue during the year (2008: 174 872
545).
Domicile and registered office:
2nd Floor, The Hudson, 30 Hudson Street, Cape Town, 8001,
PO Box 7677, Roggebaai, 8012, South Africa
Contact details:
Tel: 021 421 5550, Fax: 021 421 5551
Transfer secretaries:
Computershare Investor Services (Pty) Limited,
70 Marshall Street, Johannesburg, 2001
Directors:
M Kaplan (Chairman)*, AJ Shapiro (CEO), A Groll, AM Louw*, R Stumpf*, S
Litten
* Non-executive
Secretary:
S Litten
Auditor:
KPMG Inc.
24 May 2010
Sponsor:
Sasfin Bank Limited
(A division of Sasfin Bank Limited)
Date: 24/05/2010 16:48:01 Produced by the JSE SENS Department.
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