|
STA
STA
StratCorp Limited - Reviewed abridged consolidated interim financial results for
the 6 months ended 31 August 2010
StratCorp Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2000/031842/06)
JSE code: STA ISIN ZAE000034294
("StratCorp" or "the company")
Reviewed abridged consolidated interim financial results for the 6 months ended
31 August 2010
Statement of comprehensive Six months Six months Year
income ended ended Ended
31 August 31 August 28 February
2010 2009 2010
(reviewed) (reviewed) (audited)
(restated)
Figures in ZAR thousand
Continuing operations
Revenue 37 876 30 707 60 821
Profit / (loss) from 540 (4 806) (11 805)
operations before:
(Impairment) / reversal of 378 (236)* (501)
impairment of loans
receivable*
Income from equity 244 - 727
accounted investments
Fair value adjustments (3) (10) 551
Operating profit / (loss) 1 159 (5 052) (11 028)
Net finance cost (1 356) (71) (210)
Loss before taxation (197) (5 123) (11 238)
Taxation* (395) 1 080* 3 494
Net loss for the period (592) (4 043) (7 744)
from continuing operations
Discontinued operations
Loss from discontinued (381) - -
operations
Loss for the period (973) (4 043) (7 744)
Other comprehensive
income:
Exchange differences on (86) - -
translating foreign
operations
Total comprehensive loss (1 059) (4 043) (7 744)
for the period
Loss attributable to:
Owners of the parent:
Loss for the period from (592) (4 043) (7 744)
continuing operations
Loss for the period from (381) - -
discontinued operations
Loss for the period (973) (4 043) (7 744)
attributable to owners of
the parent
Total comprehensive loss
attributable to:
Owners of the parent:
Loss for the period from (678) (4 043) (7 744)
continuing operations
Loss for the period from (381) - -
discontinued operations
Loss for the period (1 059) (4 043) (7 744)
attributable to owners of
the parent
Weighted average number
of:
Ordinary shares in issue 180 296 180 296 180 296 330
330 330
Treasury shares in issue (21 984 (21 978 (21 982
733) 901)* 373)
Total weighted average 158 311 158 317 158 313 957
number of shares in issue* 597 429*
Basic earnings per share* (0.61) (2.55)* (4.89)
(cents)
Basic earnings per share* (0.24) - -
(cents) - discontinued
operations
Basic earnings per share* (0.37) (2.55)* (4.89)
(cents) - continuing
operations
Headline loss per share* (0.62) (2.55)* (5.03)
(cents)
Reconciliation of headline
earnings
Basic loss (973) (4 043) (7 744)
Non-recurring adjustments
- Fair value adjustments - - (258)
on investment properties
- Fair value adjustments - - 36
on investment properties
tax effect
- Impairment of property, - - 5
plant & equipment
- Impairment of property, - - (1)
plant & equipment tax
effect
- Profit on disposal of (16) (1) -
property, plant &
equipment
- Profit on disposal of 2 - -
property, plant &
equipment tax effect
Headline loss (987) (4 044) (7 962)
*Restated
Statement of financial At At At
position 31 August 31 August 28 February
2010 2009 2010
(reviewed) (reviewed) (audited)
Figures in ZAR thousand (restated)
20 936 15 789 20 123
Non-current assets
Investment property 877 568 877
Property, plant & 5 984 5 933 6 121
equipment
Goodwill 1 318 1 318 1 318
Intangible assets 2 482 887 1 938
Investment in associate 1 220 - 977
Investments & loans 64 1 355 155
Deferred tax assets* 8 391 5 728* 8 259
Finance lease receivables 600 - 478
Current assets 50 714 56 498 48 723
Inventories 38 143 45 178 36 749
Loan to associate 77 - 163
Investments & loans* 7 235 6 262* 6 912
Finance lease receivables 375 771 282
Trade and other 4 233 3 087 4 429
receivables
Cash and cash equivalents 651 1 200 188
Assets of disposal groups 39 - -
Total assets 71 689 72 287 68 846
Capital and reserves 37 242 42 002 38 301
Issued capital* 43 641 43 641* 43 641
Reserves (86) - -
Retained income / (loss)* (6 313) (1 639)* (5 340)
Non-current liabilities 1 410 11 662 829
Other financial - 10 310 -
liabilities
Finance lease obligations 592 1 284 829
Deferred tax liabilities 818 68 -
Current liabilities 32 943 18 623 29 716
Other financial 11 843 5 399 12 648
liabilities
Current tax payable 3 268 458
Finance lease obligations 1 002 1 240 1 307
Operating lease liability 149 758 825
Trade and other payables 12 228 10 958 8 848
Bank overdrafts 7 718 - 5 630
Liabilities of disposal 94 - -
groups
Total liabilities 34 447 30 285 30 545
Total equity and 71 689 72 287 68 846
liabilities
Ordinary shares in issue 180 296 330 180 296 330 180 296 330
Treasury shares in issue* (21 984 (21 984 (21 984
733) 733)* 733)
Total number of shares in 158 311 597 158 311 158 311 597
issue * 597*
Net asset value per share* 24 27* 24
(cents)
Net tangible asset value 21 25* 22
per share* (cents)
*Restated
Statements of Changes in Equity
Share Foreign Retained Total
capital currency earnings equity
translation
reserve
Figures in ZAR
thousand
Balance at 28 February *43 642 - *2 404 46 046
2009
Total comprehensive - - *(4 043) (4 043)
loss
Transactions with -
owners, recorded
directly in equity:
Treasury shares (1) - - (1)
Balance at 31 August 43 641 - (1 639) 42 002
2009
Total comprehensive - (3 701) (3 701)
loss
Balance at 28 February 43 641 - (5 340) 38 301
2010
Total comprehensive - (86) ( 973) (1 059)
loss
Balance at 31 August 43 641 (86) (6 313) 37 242
2010
*Restated
Statement of cash flows 6 Months 6 Months 12 Months
ended ended ended
31 August 31 August 28 February
2010 2009 2010
Figures in ZAR thousand (reviewed) (reviewed) (audited)
Cash flows - operating 2 669 2 041 (130)
activities
Net finance income / (1 386) 127 (54)
(expense)
Taxation (paid) / (248) 4 259 4 265
received
Cash flow from investing (1 129) (1 881) (2 340)
activities
Cash flow from financing (1 531) (5 522) (9 359)
activities
Net cash flow for period (1 625) (976) (7 618)
Cash and cash (5 442) 2 176 2 176
equivalents at beginning
of period
Cash and cash (7 067) 1 200 (5 442)
equivalents at end of
period
Information about 6 Months 6 Months 12 Months
reportable segments ended ended ended
Per market activity 31 August 31 August 28 February
2010 2009 2010
(reviewed) (reviewed) (audited)
Figures in ZAR thousand (restated)
External revenues
Health and Wellness 12 345 3 501 10 303
Asset Management & 22 817 19 868 40 992
Marketing
Property Development 2 688 7 286 9 391
Corporate Services 16 8 -
Other 10 44 135
Total 37 876 30 707 60 821
Reportable segment profit /
(loss) before taxation from
continuing operations
- Health and (1 536) 38 (1 096)
Wellness
Asset Management & 4 901 (4 721) (6 995)
Marketing
Property Development (1 310) (1 461) (9 017)
Corporate Services* (674) 1 681* 6 476
Other (629) (476) (606)
Intergroup Elimination (949) (184) -
Total (197) (5 123) (11 238)
Reportable segment assets
Health and Wellness 5 570 1 282 2 159
Asset Management & 10 455 3 037 6 892
Marketing
Property Development 40 732 47 369 41 235
Corporate Services* 64 788 22 308* 16 845
Other 1 965 913 1 715
Intergroup Elimination (51 821) (2 622) -
Total 71 689 72 287 68 846
*Restated
Information about 6 Months 6 Months 12 Months
reportable segments ended ended ended
Geographical information 31 August 31 August 28 February
2010 2009 2010
(reviewed) (reviewed) (audited)
Figures in ZAR thousand
External revenues
South Africa 36 188 28 365 56 672
Lesotho - 921 1 210
Swaziland 506 463 967
Botswana 255 - -
Kenya 927 - -
Namibia - 958 1 972
Total 37 876 30 707 60 821
Reportable segment profit /
(loss) before taxation from
continuing operations
- South Africa* 1 052 (6 267)* (11 770)
Lesotho - - 642
Swaziland (2) - (15)
Botswana (58) - (10)
Kenya (475) - (27)
Namibia - - (58)
Intergroup Eliminations (714) 1 144 -
Total (197) (5 123) (11 238)
Reportable segment assets
South Africa* 69 104 74 702* 68 435
Lesotho - 175 47
Swaziland 185 99 112
Botswana 692 - -
Kenya 1 464 - -
Namibia 244 6 252
Intergroup Eliminations - (2 695) -
Total 71 689 72 287 68 846
*Restated
Comments on results
The directors of StratCorp are pleased to present the interim financial results
for the six months ended 31 August 2010 ("the interim period"). The group`s
turnover increased by 22.68% for the interim period compared to the same period
last year. This together with the closing of the StratEquity operations in
Namibia and Lesotho, and the establishment of operations for I-Cura in Kenya and
Botswana assisted the company to achieve a profit from operations of R540 000
(August 2009 - loss of R 4 980 000). Although trading conditions remain
difficult, the group is experiencing positive turnover growth in its asset
management and health and lifestyle business units. A number of initiatives have
been put in place by Management to strengthen this trend. These action plans
together with the expected improved contributions from the operating divisions,
should result in better results for the latter 6 months of the year.
Wholly owned subsidiaries
StratEquity (Pty) Ltd
StratEquity`s subscription client base has increased from 36 566 to 38 176
(4.40%) clients during the reporting period. The company closed its operations
in Lesotho and Namibia and its objective is to focus on area specific drives and
initiatives resulting in a higher level of client retention and client base
growth. This subsidiary remains profitable.
I-Cura (Pty) Ltd
The I-Cura range of health and lifestyle products is marketed through
approximately 9 000 contractors. The product range was expanded and is currently
being marketed in South Africa, Kenya, Botswana, Swaziland and Lesotho.
Turnover growth is experienced month on month and it is expected that the
company should increase its contribution to group profitability in the latter 6
months of the year.
StratCorp Property Holdings Ltd ("StratCorp Properties")
StratCorp Properties is involved in residential property development and
concentrates its activities in the lower to middle end of the buyers market.
StratCorp Properties` activities were negatively affected due to the current
economic climate. Management`s approach remains cautious and operations will
mainly be concentrated on the sale of the remaining 54 units at the Soldonne
development of which most (94%) are currently being rented.
StratFin (Pty) Ltd ("StratFin")
StratCorp`s asset finance division continues its focus on niche markets. Its
rental and lending book grow cautiously in the current climate and it is
expected that the business will accelerate once the markets recovered.
Prospects
As per the above individual subsidiary discussion it is evident that various
initiatives have been implemented and where necessary focus was re-aligned in
order to ensure future growth. Management is optimistic that the group will
return to net profitability for the year ending 28 February 2011 as a result of
the above initiatives and the inclusion of niche products. The directors of the
company advise that the forecast financial information has not been reviewed and
reported on by the company`s auditors in accordance with the JSE Listing
Requirements.
Financial Results
The consolidated turnover of the group increased by 22.6% to R 37.876 million
for the interim period (August 2009: R30.707 million). The total consolidated
loss from continued operations for the interim period decreased by 85% from a
loss of R 4.043 million in August 2009 to a loss of R 0.592 million in August
2010. The total comprehensive loss for the interim period was also reduced to
R1.059 million (August 2009 - loss of R4.043 million).
Although the company`s cash flows are still tight, management evaluates all
business units on a regular basis for cash needs and provides funds to those
businesses which will generate additional revenue over the medium term.
Restatement
During the preparation of the financial statements for the financial year ended
28 February 2010, the group became aware of the fact that the ordinary shares
issued to the participants in the StratCorp Personnel Incentive Trust during
July 2007 was not correctly accounted for as required by IFRS. The shares so
issued were accounted for as ordinary issued share capital, instead of treasury
shares. Therefore the loans granted by the StratCorp Personnel Incentive Trust
should not have been fair valued and impaired, where applicable, for the six
months ended 31 August 2009.The full effects of the restatement were extensively
reported on in the financial statements for the year ended 28 February 2010. The
financial results for the six months ended 31 August 2009 have been restated in
order to correct this error.
The effect of the restatement on the relevant line items in those financial
statements is summarized below.
Aug
2009
Statement of Before Change After
financial position
R` 000
Share capital (53 9 749 (43
390) 641)
Accumulated loss 5 352 (3 713) 1 639
Deferred tax - asset 7 727 (1 999) 5 728
Investments and loans 10 299 (4 037) 6 262
- current
Total number of 143 354 14 957 158 311
shares in issue 595 002 597
Net asset value per 28 5 33
share (cent)
Net tangible asset 27 5 32
value per share
(cent)
Statement of
Comprehensive Income
Impairment of loans 3 226 (2 990) 236
receivable
Taxation (2 166) 1 086 (1 080)
Earnings per share (3.43) 0.88 (2.55)
Headline earnings per (3.43) 0.88 (2.55)
share
Diluted earnings per (3.43) 0.88 (2.55)
share
Basis of preparation and review opinion
The results of the Group for the six months ended 31 August 2010 have been
prepared in accordance with the Group`s accounting policies which comply with
International Financial Reporting Standards (IFRS) and IAS 34 - Interim
Financial Reporting as well as the AC 500 standards as issued by the Accounting
Practices Board or its successor for interim reporting. The standards are
subject to ongoing review and may change.
The accounting policies applied are consistent with those applied during the
comparative period.
This report has been reviewed by the company`s auditors, SAB&T Incorporated.
Their review report is available for inspection at the company`s registered
office.
Corporate Governance
The Group is striving towards maintaining the highest standards of governance as
embodied in the King III Report on Corporate Governance. The Risk and Audit,
Nomination and Remuneration committees are fully functional and independent.
Financial liabilities
The company has settled the development loan in October 2010 which was obtained
from Standard Bank during the 2009 financial year to the value of R30.300
million in order to finalise the development of Orchards Ext 33. At 31 August
2010, the outstanding loan amounted to R0.423 million.
In addition the group previously issued linked units to the value of R10.310
million that is up for redemption in December 2010. These linked units are to be
partly redeemed and partly replaced by new linked units with a 2 year maturity
date, extendable by a further 2 years.
Dividends
No interim dividend was proposed.
On behalf of the board
DB Harington HJ van der Merwe
Chief Executive Officer Group Financial Director
18 November 2010
Registered Offices Transfer Secretaries
3rd Floor, Lakeside Building A Computershare Investor Services (Pty) Ltd
2004 Gordon Hood Drive Ground Floor, 70 Marshall Street,
Centurion Johannesburg, 2001
Pretoria
Designated Adviser Auditors
Vunani Corporate Finance SAB&T Incorporated
Directors: P J de Jongh* (Chairman); D B Harington (CEO); H J van der Merwe
(GFD); I M Wright (CIO); M M Patel*;S R Firer*
(*Non-executive)
Company Secretary: JPJ Louw
Date: 18/11/2010 09:01:06 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 ] | |||||||||||||
|
|||||||||||||
