| Wed 24 Nov 2010, 11:00 | | SBG - Simeka Business Group Limited - Posting of Annual Financial Statements |
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SBG
SBG
SBG - Simeka Business Group Limited - Posting of Annual Financial Statements,
Change Statement and Notice of Annual General Meeting
Simeka Business Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 2003/012583/06)
JSE code: SBG ISIN: ZAE000074878
("Simeka" or "the Company" or "the Group")
POSTING OF ANNUAL FINANCIAL STATEMENTS, CHANGE STATEMENT AND NOTICE OF ANNUAL
GENERAL MEETING
Posting of annual financial statements
Shareholders are advised that Simeka`s annual report containing the Notice of
Annual General Meeting and annual financial statements for the year ended 31
May 2010 will be posted to shareholders on or about 30 November 2010 and contain
the modifications below compared to the reviewed results released on SENS on 4
August 2010. The annual financial statements have been issued without
qualification by the Company`s auditors Mazars and the auditors report is
included therein.
Highlights
Turnover increased from R685,7 million to R693,8 million
Ebitda increased from R77,1 million to R87,5 million
Loss reduced from (R246,3 million)to(R237,8 million)
NAV per share increased from 38.8 cents to 40.2 cents
No change in cash flows
Revenue and trade and other receivables have increased by R8 160 000 as a result
of the final assessment and calculation of debtors and work in progress relating
to long term government contracts in the Business Support Services segment.
Excessive accruals for bonuses were reversed to align the accrual with group
policy. The reversal resulted in an increase in EBITDA and a decrease in trade
and other payables of R2 202 000. The adjustments gave rise to an increase in
current tax and current tax payable. Earnings per share has changed from (46.3)
cents per share to (44.7) cents per share as a result of the adjustments.
Headline earnings per share has decreased to 5.03 cents per share from 5.58
cents per share as a result of the adjustment to profit and the inclusion of the
tax effect of the intangible assets impairment that was omitted from the
reviewed headline earnings calculation as a result of a technical accounting
matter.
The statement of cash flows was not affected by the adjustments.
Condensed consolidated statement of Reviewed Audited
financial position 31 May 2010 31 May 2010
As announced
on 4 August
2010
R`000
R`000
ASSETS
Non-current assets 263 177 263 177
Property, plant and equipment 37 846 37 846
Goodwill 180 709 180 709
Intangible assets 4 519 4 519
Other financial assets 3 613 3 613
Investment in associate company 3 789 3 789
Deferred taxation 32 701 32 701
Current assets 202 951 211 111
Inventories 9 624 9 624
Trade and other receivables 91 964 100 124
Financial assets 871 871
Taxation receivable 5 182 5 182
Operating lease assets 113 113
Cash resources 95 197 95 197
Total assets 466 128 474 288
EQUITY AND LIABILITIES
Capital and reserves 210 610 219 056
Share capital 300 742 300 742
Reserves (5 875) (5 875)
Accumulated profit (84 257) (75 811)
Amounts due to vendors in shares - -
Non-controlling interest 6 629 6 629
Total equity 217 239 225 685
Non-current liabilities 94 273 94 273
Other financial liabilities (interest
bearing debt) 88 221 88 221
Finance lease obligation 2 465 2 465
Deferred taxation 3 587 3 587
Current liabilities 154 616 154 330
Vendor liabilities - -
Other financial liabilities (interest 47 456 47 456
bearing debt)
Finance lease obligations 5 091 5 091
Trade and other payables 83 683 81 481
Provisions 2 930 2 930
Bank overdraft 1 398 1 398
Operating lease liability 1 038 1 038
Current tax payable 13 020 14 936
Total equity and liabilities 466 128 474 288
Total shares in issue (`000) 602 016 602 016
Total shares in issue excluding treasury 544 637 544 637
shares (`000)
Net asset value per share (cents) 38.8 40.2
Net tangible asset value per share (cents) 4.7 6.2
Consolidated condensed statement of comprehensive income
Reviewed Audited
Year ended Year ended
31 May 31 May
2010 2010
R`000 R`000
Revenue 688 845 697 005
Turnover 685 670 693 830
Cost of sales (402 286) (402 286)
Gross profit 283 384 291 544
EBITDA 77 176 87 537
Depreciation (13 002) (13 002)
Amortisation of intangible assets (4 685) (4 685)
Impairment of goodwill and intangible (271 059) (271 059)
assets
(Loss) on sale of businesses (10 004) (10 004)
Impairment of investments (556) (556)
Net finance costs (21 313) (21 313)
Income from associate (214) (214)
(Loss)/profit before taxation (243 658) (233 296)
Income tax expense (2 602) (4 518)
(Loss)/profit for the period (246 260) (237 814)
Other comprehensive income for the period,
net of tax 118 118
Total comprehensive (loss)/income for the
period (246 142) (237 696)
(Loss)/profit attributable to:
Owners of the parent (251 360) (242 914)
Non-controlling interest 5 100 5 100
Total comprehensive (loss)/income
attributable to:
owners of the parent (251 242) (242 796)
Non-controlling interest 5 100 5 100
(Loss)/earnings per share (cents) (46.3) (44.7)
Diluted (loss)/earnings per share (cents) (46.3) (44.7)
Notes to the statement of comprehensive
income
Headline earnings for the year
attributable to ordinary shareholders 30 319 27 351
Headline earnings per share 5.58 5.03
Diluted headline earnings per share 5.58 5.03
Number of shares (`000)
Weighted average number of shares 543 414 543 414
Diluted weighted average number of shares
in issue and to be issued 543 414 543 414
Reconciliation of headline earnings
Earnings for the year attributable to (251 360) (242 914)
ordinary shareholders
Goodwill impairment 230 295 230 295
Intangible assets impairment 40 764 29 350
Loss on disposal of subsidiaries and 10 004 10 004
associates
Impairment of investment 556 556
Profit on disposal of property, plant and 60 60
equipment
Headline earnings for the year
attributable to ordinary shareholders 30 319 27 351
Condensed consolidated statement of changes in equity
Reviewed Audited
Year ended Year ended
31 May 31 May
2010 2010
R`000 R`000
Capital and reserves - opening balance 482 216 482 216
Shares issued - -
Treasury shares - -
Settlement of vendor liabilities (53 700) (53 700)
Share repurchase taken to treasury (662) (662)
Acquisition of subsidiaries and 49 034 49 034
businesses
Disposal of subsidiaries (712) (712)
Total comprehensive (loss)/income for the (246 142) (237 696)
period
Dividend paid to non-controlling interest (12 795) (12 795)
Capital and reserves - closing balance 217 239 225 685
NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that the annual general meeting of shareholders of Simeka
will be held at 10 Kikuyu Road, Sunninghill, Gauteng, 2191 on Tuesday 18 January
2011 at 10:00 for the purpose of conducting the business as stated in the notice
of annual general meeting forming part of the 2010 annual report.
24 November 2010
Designated Advisor
Sasfin Capital
(A division of Sasfin Bank Limited)
Date: 24/11/2010 11:00:44 Produced by the JSE SENS Department.
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