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BJM
BJM
BJM - Barnard Jacobs Mellet Holdings Limited - Preliminary audited results for
the year ended 31 March 2010
BARNARD JACOBS MELLET HOLDINGS LIMITED
Registration number: 1995/004798/06
Incorporated in the Republic of South Africa
ISIN: ZAE000014262 JSE code: BJM
("the Group", "BJM" or "the Company")
Preliminary audited results for the year ended 31 March 2010
Headline earnings per share of 24 cents
Net asset value per share of 447 cents
Dividend per share of 4 cents
Assets under administration of R36 billion
Commentary
Operations
The Barnard Jacobs Mellet Group returned a profit of R13,3 million for the year
ended 31 March 2010. Notwithstanding a recovery in financial markets since the
start of the global crisis, the local market remains fragile in the wake
thereof. Equity brokerage contributes 59% of revenue which was negatively
impacted by a 12% decline in the value traded on the JSE Limited for the year.
Costs excluding impairment charges, were cut by 8,6% compared to the previous
year, with manpower related expenditure being down 18%. As a consequence,
headline earnings per share decreased by 44% to 24 cents per share while basic
earnings per share decreased by 56% to 18,9 cents per share.
Barnard Jacobs Mellet Private Client Services continued to show real positive
growth with the value of assets under administration currently at R35,5 billion
compared to R25,2 billion at the prior financial year end. BJM Corporate Finance
was the only loss making operating segment within the Group.
The Group assessed the value of goodwill on its statement of financial position,
and has impaired the disclosed goodwill in the aggregate of R5,7 million, the
bulk of which relates to the acquisition of the corporate finance team in 2007.
The announcement by the Group of the disposal of its South African institutional
trading business on 3 May 2010 prompted the disclosure of this unit as a
discontinued operation in accordance with IFRS 5, and the restatement of
comparative numbers.
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 largest 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.
On 1 April 2009 the Group acquired all the shares in Quadro Executive Estate
Planning (Pty) Ltd, a trust and fiduciary service provider, for R1 817 386 in
cash and a total expected contingent payment of R1 651 192. The contingent
payments shall not be less than R500 000 or more than R2 000 000 per annum.
Prospects
With the anticipated sale of the South African institutional business we expect
earnings to be under pressure as the Group will have to manage down its
infrastructural cost base to the requisite level for the rest of the businesses.
Dividend
Notice is hereby given that the board of directors has declared a final dividend
of 4 cents per share in respect of the year ended 31 March 2010. The current
policy of two times cover remains unchanged.
Last day to trade Friday, 25 June 2010
Ex-dividend date Monday, 28 June 2010
Record date Friday, 2 July 2010
Dividend payment date Monday, 5 July 2010
Share certificates may not be dematerialised or rematerialised between Monday,
28 June 2010 and Friday, 2 July 2010, both days inclusive.
Basis of preparation
The Group annual financial statements for the year ended
31 March 2010 have now been audited by the Group`s auditors, KPMG Inc. This
preliminary report has been extracted from these audited financial statements
and is prepared in accordance with the recognition and measurement requirements
of IFRS and the presentation and disclosure requirements of IAS 34. The
auditor`s report on the annual financial statements is unqualified and is
available for inspection at the Company`s registered office.
John Bester Andile Mazwai
Chairman Chief Executive Officer
Johannesburg
2 June 2010
Consolidated statement of comprehensive income
for the year ended 31 March 2010
2010 2009
R`000 R`000
Operating income 237 934 236 430
Interest income 15 171 21 146
Revenue 253 105 257 576
Profit on sale of investments 20 -
Total income 253 125 257 576
Operating costs (230 880) (214 531)
Operating profit before finance costs 22 245 43 045
Finance costs (9 853) (6 905)
Income from investments 39 -
Profit before tax 12 431 36 140
Income tax expense (8 208) (15 625)
Profit from continued operations 4 223 20 515
Reallocation of costs, net of income tax (7 720) (9 150)
Adjusted profit from continued operations (3 497) 11 365
Profit from discontinued operations (net of 16 770 18 548
tax)
Profit for the year 13 273 29 913
Other comprehensive income
Exchange differences in translating foreign (26 982) 943
operations
Fair-value adjustment on available-for-sale 28 (27)
instruments
Income tax on other comprehensive income (4) 4
Other comprehensive income for the year net (26 958) 920
of income tax
Total comprehensive income for the year (13 685) 30 833
Earnings per share
Basic earnings per share (cents) 18,9 43,1
Diluted earnings per share (cents) 16,1 36,2
Continued operations
Basic earnings per share (cents) (5,0) 16,4
Diluted earnings per share (cents) (4,2) 13,8
Consolidated statement of financial position
as at 31 March 2010
2010 2009
R`000 R`000
Assets
Non-current assets
Equipment 22 444 33 096
Investments 276 511
Investment in equity accounted investees 66 -
Intangible assets 9 229 19 582
Deferred tax assets 8 836 12 601
Total non-current assets 40 851 65 790
Current assets
Amounts receivable in respect of 3 427 244 5 593 804
stockbroking activities
Trade and other receivables 43 582 45 482
Listed securities holdings 517 723 955
Current tax assets 2 784 5 239
Cash and cash equivalents 193 368 200 485
Assets classified as held for sale 7 888 785 -
Total current assets 11 156 280 6 568 965
Total assets 11 597 131 6 634 755
Equity and liabilities
Equity
Share capital 753 700
Share premium 55 643 33 641
Non-distributable reserves 27 875 65 619
Retained earnings 252 116 249 625
Total equity 336 387 349 585
Non-current liabilities
Loans borrowings and deferred payments 106 886 50 000
Deferred tax liabilities 94 1 502
Total non-current liabilities 106 980 51 502
Current liabilities
Amounts payable in respect of stockbroking 3 319 306 5 486 488
activities
Listed securities sold short 381 640 853
Trade and other payables 52 866 101 887
Current tax liabilities 1 615 910
Shareholders for dividends 210 195
Bank overdraft 9 219 3 335
Liabilities classified as held for sale 7 770 167 -
Total current liabilities 11 153 764 6 233 668
Total liabilities 11 260 744 6 285 170
Total equity and liabilities 11 597 131 6 634 755
Consolidated statement of changes in equity
for the year ended 31 March 2010
Non-
distri-
Share Share butable
capital premium reserves
R`000 R`000 R`000
Balance at 1 April 2008 762 52 001 57 725
Total comprehensive income for the
year:
Profit for the year - - -
Other comprehensive income:
Exchange differences in translating - - 943
foreign operations
Fair-value adjustment on available- - - (23)
for-sale instruments
Total other comprehensive income - - 920
Total comprehensive income for the - - 920
year
Transaction with owners recorded
directly in equity:
Contributions by and distributions
to owners:
Equity-settled share-based payments - - 5 985
to employees
IFRS 2 recognition of BEE - - 606
credential
Additional settlement on BEE - - 383
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) 6 974
Balance at 31 March 2009 700 33 641 65 619
Total comprehensive income for the
year:
Profit for the year - - -
Other comprehensive income:
Exchange differences in translating - - (26 982)
foreign operations
Fair-value adjustment on available- - - 24
for-sale instruments
Total other comprehensive income - - (26 958)
Total comprehensive income for the - - (26 958)
year
Transaction with owners recorded
directly in equity:
Contributions by and distributions
to owners:
Equity-settled share-based payments - - (11 503)
to employees
IFRS 2 recognition of BEE - - 606
credential
Additional settlement on BEE - - 111
transaction
Treasury stock acquired (2) (412) -
Treasury stock issued 55 22 414 -
Dividends paid - - -
Total transactions with owners 53 22 002 (10 786)
Balance at 31 March 2010 753 55 643 27 875
Consolidated statement of changes in equity (continued)
for the year ended 31 March 2010
Re-
tained
earnings Total
R`000 R`000
Balance at 1 April 2008 232 689 343 177
Total comprehensive income for the year:
Profit for the year 29 913 29 913
Other comprehensive income:
Exchange differences in translating foreign - 943
operations
Fair-value adjustment on available-for-sale - (23)
instruments
Total other comprehensive income - 920
Total comprehensive income for the year 29 913 30 833
Transaction with owners recorded directly in
equity:
Contributions by and distributions
to owners:
Equity-settled share-based payments to - 5 985
employees
IFRS 2 recognition of BEE credential - 606
Additional settlement on BEE transaction - 383
Cancellation of ordinary shares - (10 953)
Treasury stock acquired - (29 616)
Treasury stock issued - 22 147
Dividends paid (12 977) (12 977)
Total transactions with owners (12 977) (24 425)
Balance at 31 March 2009 249 625 349 585
Total comprehensive income for the year:
Profit for the year 13 273 13 273
Other comprehensive income:
Exchange differences in translating foreign - (26 982)
operations
Fair-value adjustment on available-for-sale - 24
instruments
Total other comprehensive income - (26 958)
Total comprehensive income for the year 13 273 (13 685)
Transaction with owners recorded directly in
equity:
Contributions by and distributions
to owners:
Equity-settled share-based payments to - (11 503)
employees
IFRS 2 recognition of BEE credential - 606
Additional settlement on BEE transaction - 111
Treasury stock acquired - (414)
Treasury stock issued - 22 469
Dividends paid (10 782) (10 782)
Total transactions with owners (10 782) 487
Balance at 31 March 2010 252 116 336 387
Consolidated statement of cash flows
for the year ended 31 March 2010
2010 2009
R`000 R`000
Cash utilised in operating activities (25 836) (153 659)
Cash utilised in investing activities (888) (23 713)
Cash generated from/(utilised in) financing 77 291 (25 302)
activities
Net increase/(decrease) in cash and cash 50 567 (202 674)
equivalents
Cash transferred to held for sale (36 999) -
Cash and cash equivalents at beginning of 197 150 398 818
year
Effect of exchange rate fluctuations on cash (26 569) 1 006
held
Cash and cash equivalents at end of year 184 149 184 149
Note to the cash flow statement
Cash utilised in operating activities
Net profit before tax adjusted for non-cash 49 852 53 297
items
Working capital changes (50 043) (162 445)
Taxation paid (14 878) (31 528)
Dividends paid (10 767) (12 983)
Cash utilised in operating activities (25 836) (153 659)
Results per share
Weighted average number of ordinary shares 70 218 69 336
(`000)
Headline earnings per share (cents)
From continued operations 3,2 16,4
From discontinued operations 20,8 26,8
Headline earnings per share (cents) 24,0 43,2
Diluted headline earnings per share (cents)
From continued operations 2,7 13,8
From discontinued operations 17,8 22,5
Diluted headline earnings per share (cents) 20,5 36,3
Ordinary dividend paid per share (cents) 13,0 17,0
Net asset value per share (cents) 446,5 499,2
Reconciliation of headline earnings R`000 R`000
Basic earnings 13 273 29 913
Loss on disposal of equipment 32 50
Impairment of goodwill 5 688 -
Profit on sale of investments (2 152) -
Headline earnings 16 841 29 963
- From continued operations 2 220 11 397
- From discontinued operations 14 621 18 556
Operating segments
Institu-
tional
Institutional stockbroking Retail Corporate
stockbroking (discon- services finance
tinued)
R`000 R`000 R`000 R`000
2010
Revenue from 93 405 186 139 133 602 20 101
external
customers
Inter-segment 3 421 7 127 1 725 318
revenue
Total income 96 826 193 266 135 327 20 419
Finance costs (99) (1 365) (17 110) (35)
Non-cash items:
Depreciation (1 405) (2 898) (1 519) (445)
and
Amortisation
IFRS 2 - - - -
recognition of
BEE credential
Impairment of - - - -
goodwill
Reportable 8 079 12 238 10 584 (4 046)
segment profit
before income
tax
Income tax (2 880) (3 188) (3 676) 1 117
expense
Profit for the 5 199 9 050 6 908 (2 929)
year
Reportable 368 490 7 885 093 1 733 656 23 431
segment assets
Reportable 220 474 7 770 167 1 588 569 8 055
segment
liabilities
2009
Revenue from 86 051 234 870 125 406 47 686
external
customers
Inter-segment 11 259 13 542 190 1 571
revenue
Total income 97 310 248 412 125 596 49 257
Finance costs (1 666) (3 889) (20 900) (87)
Non-cash items:
Depreciation (915) (1 522) (1 512) (310)
and
Amortisation
IFRS 2 - - - -
recognition of
BEE credential
Reportable 3 133 15 039 9 611 18 128
segment profit
before income
tax
Income tax 1 908 (5 641) (2 807) (5 078)
expense
Profit for the 5 041 9 398 6 804 13 050
year
Reportable 3 797 731 - 1 628 987 28 949
segment assets
Reportable 3 579 743 - 1 475 973 9 362
segment
liabilities
Operating segments (continued)
Settlement
and prime Other/
broking eliminations Consolidated
R`000 R`000 R`000
2010
Revenue from external 13 037 107 446 391
customers
Inter-segment revenue 11 337 (23 928) -
Total income 24 374 (23 821) 446 391
Finance costs (6 153) 13 544 (11 218)
Non-cash items:
Depreciation and (275) (5 463) (12 005)
Amortisation
IFRS 2 recognition of - 606 606
BEE credential
Impairment of goodwill - (5 688) (5 688)
Reportable segment 1 316 (3 502) 24 669
profit before income tax
Income tax expense (395) (2 374) (11 396)
Profit for the year 921 (5 876) 13 273
Reportable segment 1 582 492 3 969 11 597 131
assets
Reportable segment 1 553 824 119 655 11 260 744
liabilities
2009
Revenue from external 11 036 939 505 988
customers
Inter-segment revenue 19 347 (45 909) -
Total income 30 383 (44 970) 505 988
Finance costs (10 123) 25 871 (10 794)
Non-cash items:
Depreciation and (266) (4 823) (9 348)
Amortisation
IFRS 2 recognition of - (606) (606)
BEE credential
Reportable segment 7 113 (1 845) 51 179
profit before income tax
Income tax expense (2 015) (7 633) (21 266)
Profit for the year 5 098 (9 478) 29 913
Reportable segment 1 345 527 (166 439) 6 634 755
assets
Reportable segment 1 315 526 (95 434) 6 285 170
liabilities
Directors
JA Bester (Chairman), HSC Bester, AM Mazwai* (CEO), AR Martin,
TS Seopa, L Wilson*
*Executive
Company secretary
Nexia Levitt
Kirson Management Services cc
Sponsor
Barnard Jacobs Mellet
Corporate Finance (Pty) Limited
Registered office
Barnard Jacobs Mellet House
24 Fricker Road, Illovo Corner, Illovo, 2196
Transfer secretaries
Link Market Services South Africa (Pty) Limited
11 Diagonal Street, Johannesburg, 2001
www.bjm.co.za
Date: 03/06/2010 09:13:11 Produced by the JSE SENS Department.
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