|
SLO
SLO
SLO - Southern Electricity Company Limited - Audited consolidated results for
the year ended 30 June 2010
Southern Electricity Company Limited
(Registration Number 1997/006894/06)JSE Share Code: SLO ISIN:
ZAE000041919("SELCo" or "the Group")
AUDITED CONSOLIDATED RESULTS FOR THE YEAR ENDED 30 JUNE 2010
STATEMENTS OF FINANCIAL POSITION AS AT 30 JUNE 2010
GROUP COMPANY
2010 2009 2010 2009
R R R R
ASSETS
Noncurrent assets 27 960 746 29 766 237 1 444 526 1 444 526
Investment 13 000 000 13 000 000 - -
property
Property, plant 7 980 157 8 653 660 - -
and equipment
Intangible assets 6 980 589 8 112 577 - -
Investment in - - 1 444 526 1 444 526
subsidiaries
Current assets 12 869 738 8 571 405 1 879 219 1 172 490
Inventories 1 721 337 1 458 568 - -
Loans to - - 791 021 261 733
subsidiaries
Other loans - 28 865 - -
receivable
Current tax 1 426 246 362 445 48 985 48 985
receivable
Trade and other 6 387 643 4 021 316 114 490 -
receivables
Cash and cash 3 334 512 2 700 211 924 723 861 772
equivalents
Total assets 40 830 484 38 337 642 3 323 745 2 617 016
EQUITY AND
LIABILITIES
Equity 25 285 066 22 290 631 1 740 232 1 606 577
Share capital 10 162 796 10 162 796 10 162 796 10 162 796
Non-distributable 16 115 16 115 16 115 16 115
reserve
Retained income 15 106 155 12 111 720 (8 438 679) (8 572 334)
(losses)
Liabilities
Non-current 8 988 612 7 233 014 - -
liabilities
Other financial 3 329 452 3 095 104 - -
liabilities
Deferred tax 5 659 160 4 137 910 - -
Current 6 556 806 8 813 997 1 583 513 1 010 439
liabilities
Other loans 2 615 044 5 047 643 1 461 496 986 310
payable
Other financial 427 047 285 696 - -
liabilities
Taxation payable - - - -
Trade and other 3 412 710 3 321 396 122 017 24 129
payables
Provisions 102 005 159 262 - -
Total liabilities 15 545 418 16 047 011 1 583 513 1 010 439
Total equity and 40 830 484 38 337 642 3 323 745 2 617 016
liabilities
STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2010
GROUP COMPANY
2010 2009 2010 2009
R R R R
Revenue 49 968 951 40 359 090 1 800 000 1 800 000
Turnover 49 957 747 40 206 924 - -
Cost of sales (27 636 257) (23 185 207) - -
Gross profit 22 321 490 17 021 717 - -
Other income 61 941 63 651 1 800 000 1 807 144
Operating (17 394 806) (15 395 426) (1 700 513)
expenses (812 723)
Earnings/(loss) 4 988 625 1 689 942 99 487 994 421
before interest
and tax
Investment 11 204 156 415 34 168 4 249
revenue
Finance costs (484 144) (920 768) - (10 379)
Profit/(loss) 4 515 685 925 589 133 655 988 291
before taxation
Taxation (1 521 250) 179 418 - 317 134
Profit/(loss) for 2 994 435 1 105 007 133 655 1 305 425
the year
Other - - - -
comprehensive
income
Total 2 994 435 1 105 007 133 655 1 305 425
comprehensive
income
Earnings and 5.45 cents 2.01 cents
diluted earnings
per share
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2010
Non- Retained Total
distri- income equity
Share Share butable
capital premium reserves
GROUP R R R R R
Balance as at
01 July 2008 2 747 269 7 415 527 16 115 11 006 713 21 185 624
Changes
Profit for 1 105 007 1 105 007
the year
Total 1 105 007 1 105 007
comprehensive
income for
the period
Reclassifi- 139 (139)
cation of
share capital
Total changes 139 (139) - 1 105 007 1 105 007
Balance at 01 2 747 408 7 415 388 16 115 12 111 720 22 290 631
July 2009
Changes
Profit for 2 994 435 2 994 435
the year
Total 2 994 435 2 994 435
comprehensive
income for
the period
Total changes - - - 2 994 435 2 994 435
Balance as at 7 415 388 16 115 15 106 155 25 285 066
30 June 2010 2 747 408
Note(s) 11 11
COMPANY
Balance as at 2 747 269 7 415 527 16 115 (9 877 759) 301 152
01 July 2008
Changes
Profit for 1 305 425 1 305 425
the year
Total - - - 1 305 425 1 305 425
comprehensive
income for
the period
Reclassifi- 139 (139) -
cation of
share capital
Total changes 139 (139) - 1 305 425 1 305 425
Balance at 01 2 747 408 7 415 388 16 115 (8 572 334) 1 606 577
July 2009
Changes
Profit for 133 655 133 655
the year
Total - - - 133 655 133 655
comprehensive
income for
the period
Total changes - - - 133 655 133 655
Balance as at 2 747 408 7 415 388 16 115 (8 438 679) 1 740 232
30 June 2010
Note(s) 11 11
CASH FLOW STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
GROUP COMPANY
2010 2009 2010 2009
R R R R
Cash flows from
operating
activities
Cash receipts 49 957 747 42 006 924 1 800 000 1 800 000
from customers
Cash paid to (45 123 488) (38 301 439) (1 717 115) (766 247)
suppliers and
employees
Cash generated 4 834 259 3 705 485 82 885 1 033 753
from operations
Interest income 11 204 156 415 34 168 4 249
Finance costs (484 144) (920 768) - (10 379)
Tax paid (1 063 801) (967 452) - (13 425)
Net cash from 3 297 518 1 973 680 117 053 1 014 198
operating
activities
Cash flows from
investing
activities
Purchase of (779 049) (1 484 342) - -
property, plant
and equipment
Proceeds on sale 143 867 - - -
of property,
plant and
equipment
Movement in 28 865 - - -
financial assets
Repayment of (33 080) - - -
loans from
related party
Repayment - - (529 288) (491 320)
(advances) of
loans from group
companies
Net cash from (639 397) (1 484 342) (529 288) (491 320)
investing
activities
Cash flows from
financing
activities
Advance (2 499 006) (248 073) - -
(repayments) of
other financial
liabilities
Advance of other 475 186 1 650 900 475 186 239 827
loans
Net cash from (2 023 820) 1 402 827 475 186 239 827
financing
activities
Total cash 634 301 1 892 165 62 951 762 705
movement for the
year
Cash at the 2 700 211 808 046 861 772 99 067
beginning of the
year
Total cash at 3 334 512 2 700 211 924 723 861 772
the end of the
year
Audited Audited
year to 30 year to 30
June 2010 June 2009
R R
Reconciliation of Headline Earnings
Profit for the year attributable to ordinary 2 994 435 1 105 007
shareholders
Headline earnings adjustment net of taxation 9 315 -
Headline earnings 3 003 750 1 105 007
Ordinary number of shares in issue 54 948 173 54 948 173
Weighted average number of shares 54 948 173 54 948 173
Diluted number of shares 54 948 173 54 948 173
Earnings per share (cents) 5.45 2.01
Diluted earnings per share (cents) 5.45 2.01
Headline earnings per share (cents) 5.47 2.01
Diluted headline earnings per share (cents) 5.47 2.01
The headline earnings adjustment relates to the surplus on disposal of property,
plant and equipment.
Overview
At the end of our 2010 financial year, it gives us great pleasure to report on
the performance of SELCo and the progress that was made during the year.
The worldwide economic crunch has forced every major business into a position to
count its losses or brace itself for the losses to come. Although the operating
environment became more challenging as the year progressed, the Group maintained
a strong performance.
The SELCo Group`s Operating Revenue grew by 24.28%, from R40.13m to R49.87m. The
Group has reported a profit after tax of R2.994m, compared to the previous
year`s profit of R1.105m. Expenses increased by 12.98% only, due to special
precautionary measures undertaken. As a result of the capital metering
installation program that commenced in the 2010 year, fewer KWh losses are
expected. The Management Team has also implemented other processes such as stock
control and daily reconciliations, with a view to improving the profitability of
the Group in 2011.
SELCo Shareholders are referred to the announcement published by the company on
SENS on the 18th of June 2010 and in the press, wherein shareholders were
advised that the Company had entered into three separate inter-conditional
agreements dated the 17th of June 2010 to acquire the entire issued share
capital in Rural Maintenance (Pty) Ltd, Netelek (Pty) Ltd and Netelek Technology
Limited. These Agreements were subject to the fulfilment, by the 31st of August
2010, of various conditions precedent including the approval of SELCo
shareholders which required SELCo to send a circular to its shareholders and to
convene a general meeting to obtain shareholders` approval. However, the JSE
Limited referred the matter to the GAAP Monitoring Panel and questioned the
proposed IFRS accounting treatment of the transactions. If the transactions were
to be accounted for on the alternative basis being debated, SELCo`s board did
not believe that the shareholders would view it as being in their best interest.
Accordingly, it did not seek to extend the date for the fulfilment of the
conditions precedent and therefore the acquisition transactions were cancelled.
Review of the Business
We are pleased to advise that the earnings per share are up from a profit of
2.01 cents per share in 2009 to a profit of 5.45 cents per share in 2010. The
headline earnings per share have increased from a profit of 2.01 cents per share
in 2009 to a profit of 5.47 cents per share in 2010.
Abraham Kukuri as Managing Director of SELCo Namibia has improved results by
working closely with his team of Namibian staff to deliver consistently good and
quality service. Under his supervision, SELCo Namibia has born the costs on
behalf of the Aranos Village Council and the Municipalities of Karasburg and
Keetmanshoop to have aerial photographs taken. This has enabled the Aranos
Council to properly plan the lay-out of an 11kV line for an informal settlement,
of which the installation has now almost been completed. This was done in terms
of a six months contract entered into between the two entities on a win-win
basis. The aerial photographs will furthermore serve these local authorities to
plan the expansion of their respective towns in a proper and effective way.
SELCo`s prepayment metering upgrade has yielded results with the average
prepayment revenues having increased by 16.67%.
Key focus for 2011:
* kWh Losses
One of our main objectives is to replace all manual meters with a remote
metering system. This will enable the company to cut kWh losses and
increase profitability.
* Debtor control
SELCo has a motivated revenue team. Through persistence and adherence to
processes and procedures, the monthly arrears have decreased over the last
three years from 28% in 2008 to 21% in 2009, and to 16% in 2010. As a
result of strict controls and the diligent collection process, bad debts
decreased from R105 541 in 2009 to R58 953 in 2010. The staff keeps in
close contact with the customers in their portfolios through continued
diligence and empathy, thus ensuring timeous payments of monthly accounts.
Despite the increase in Trade Receivables management was comfortable with the
collectability of the outstanding amounts.
Outlook
SELCo has unique human capital and industry experience and is well poised to
capitalise on the electricity situation in Southern Africa, which is
characterised by scarcity of supply and a dire need for skilled operators who
are willing to invest time, effort and money with a view to making long term
returns. The efforts of our competent staff and dedicated management team have
resulted in consistent returns over the past years and should continue to do so
in the coming period. The aim is to concentrate on achieving natural, organic
growth within the company rather than considering expansion to other markets.
Appreciation
Our sincere appreciation is extended to our fellow board members, management and
staff for their efforts and their continued commitment to the company.
Accounting Policies
Presentation of annual financial statements
The annual financial statements have been prepared in accordance with
International Financial Reporting Standards, IAS34: Interim Financial Reporting
and the Companies Act of South Africa. The annual financial statements have
been prepared on the historical cost basis, except for the measurement of
investment properties and certain financial instruments, and incorporate the
principal accounting policies set out below. These accounting policies are
consistent with the previous period.
The consolidated financial statements have been audited by the Group`s
independent auditors, Mazars (formerly Mazars Moores Rowland) and their
unqualified report on the June 2010 Annual Financial Statements is available for
inspection at the company`s registered office.
Dividends
No dividends were declared or paid to shareholders during the year under review.
Notice of Annual General Meeting
Notice is hereby given that the Annual General Meeting of shareholders will be
held at 09h00 on Friday, 12 November 2010 at the company`s registered office
located at 99 Fascia Street, Silvertondale, Pretoria to transact the business as
stated in the notice of the Annual General Meeting contained in the Annual
Report, which will be posted to shareholders today, 30 September 2010.
By order of the board
30 September 2010
DIRECTORS:
B Hlongwa* (Chairman), P M Bester (CEO),H Doring, WB Mahlangu*,H van Zyl*
* Non Executive
COMPANY SECRETARY AND REGISTERED OFFICE:
Elsa Steyn, 99 Fascia Street, Silvertondale, 0184 (PO Box 73130, Lynnwood Ridge,
0040)
TRANSFER SECRETARIES:
Link Market Services South Africa (Pty) Limited, 5th Floor, 11 Diagonal Street,
Johannesburg, 2001, (PO Box 4844, Johannesburg, 2000)
SPONSOR:
Grindrod Bank Limited, Building Three, First Floor, Commerce Square, 39 Rivonia
Road, Sandton 2146 (PO Box 78011, Sandton, 2146)
Date: 30/09/2010 11:03:03 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
