| Fri 9 Feb 2001, 0:00 | | Marcons Provisional Report |
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Marshalls Controlling Investments Limited
(Registration number 1987/002656/06)
Provisional report for the year ended 31 December 2000
The unaudited results for the year ended 31 December 2000 for Marshalls
Controlling Investments Limited and its subsidiaries are as follows:
INCOME STATEMENT
31.12.2000 31.12.1999
R R
Commission, interest and dividends received 1 880 000 1 943 230
Rental income 16 436 000 15 522 435
Revenue 18 316 000 17 465 665
Operating profit before interest and taxation 6 695 000 7 610 834
Interest received 814 000 663 076
Interest paid (1 896 000) (1 764 407)
Loss from associate (89 000) (1 647)
Profit before exceptional item 5 524 000 6 507 856
Exceptional item (note 1) (43 000) (989 360)
Profit before taxation 5 481 000 5 518 496
Taxation 2 246 000 1 939 371
Profit for the year 3 235 000 3 579 125
Headline earnings per share (cents) 18,6 26,3
Earnings per ordinary share (cents) 18,9 20,6
Dividends per ordinary share (cents) 20,0 19,0
Dividend cover excluding exceptional item (times)0,9 1,4
Total number of shares in issue 17 372 300 17 372 300
Net asset value per ordinary share (cents) 434 448
Note 1: Exceptional item (43 000) (989 360)
Revaluation of investment properties below cost (2 912 000) (989 360)
Surplus on sale of investment in associated
company 42 000 -
Surplus on foreign exchange 619 000 -
Realised gain on sale of listed shares 2 977 000 -
Surplus on revaluation of overseas investments 279 000 -
Loss on devaluation of overseas investments (1 033 000) -
Loss on devaluation of local investments (15 000) -
ABRIDGED BALANCE SHEET
Investment properties 74 040 000 80 110 000
Investments 21 036 000 830 847
Other fixed assets 538 000 4 484 717
Current assets 4 077 000 7 370 598
Cash 4 067 000 2 068 235
Total assets 103 758 000 94 864 397
Equity and reserves 75 301 000 77 860 324
Interest bearing borrowings 21 874 000 10 914 273
Deferred taxation 194 000 325 453
Current liabilities 5 358 000 5 017 714
Bank overdraft 1 031 000 746 633
Total equity and liabilities 103 758 000 94 864 397
STATEMENT OF CHANGES IN EQUITY
Share capital and share premium 26 809 000 26 809 026
Non-distributable reserves 44 762 000 47 082 434
- Balance at beginning of year 47 082 000 51 782 955
- Property revaluation movement (3 199 000) (4 833 071)
- Currency translation movement 879 000 132 550
Distributable reserves 3 730 000 3 968 864
- Balance at beginning of year 3 969 000 3 690 476
- Profit for the year 3 235 000 3 579 125
- Dividends paid and recommended (3 474 000) (3 300 737)
Equity and reserves at end of year 75 301 000 77 860 324
SUMMARISED CASH FLOW STATEMENT
Cash generated from operating activities 14 566 000 12 352 211
Interest and taxation paid (4 252 000) (3 720 726)
Operating cash flow 10 314 000 8 631 485
Dividends paid (3 301 000) (3 127 014)
Cash retained in operating activities 7 013 000 5 504 471
Net investment activities (5 299 000) (9 745 839)
Net cash generated/(utilised) 1 714 000 (4 241 368)
COMMENTS
The results for the year under review reflect earnings per ordinary share of
18,9 cents (1999: 20,6 cents). Interest paid for the year amounted to R1 896
000 (1999: R1 764 407). It is hoped the stabilisation of interest rates during
2000 will continue during 2001.
The South African economy performed in a disappointing manner throughout 2000.
The letting market remained weak and is reflected in the occupancy of the
group's properties at year-end being 91%. A valuation of the property portfolio
at 31 December 2000 by CB Richard Ellis on an "Open Market" basis was made at
R74 040 000 (1999: R80 110 000).
As announced in the Notice to Shareholders on 24 November 2000, the group's
portfolio of high quality shares listed on the JSE was realised for
approximately R8 million. This amount, together with group cash resources of R2
million and a long-term, fixed interest rate loan of R10 million from the
Investec Group, was transferred to London through an asset swap arrangement. A
permanent portfolio of listed shares in Western Europe, the United Kingdom and
the United States of America was acquired with these funds. The market value of
the portfolio at 31 December 2000 was
R20 339 000.
INDEPENDENT AUDITORS' REVIEW
The financial information set out in the provisional results has been reviewed,
but not audited, by our auditors, David Strachan & Tayler. Their unqualified
review report is available for inspection at the registered office.
DIVIDEND DECLARATION
Notice is hereby given that the final dividend of 11,0 cents per ordinary and
"N" ordinary share in respect of the year ended 31 December 2000 has been
declared and is payable to shareholders registered in the books of the company
at close of business on Friday, 23 February 2001. Dividend warrants will be
posted on or about 16 March 2001.
9 February 2001 BY ORDER OF THE BOARD
DC Marshall, PN Lonsdale
(Directors)
Registered Office Transfer Secretaries
11th Floor Mercantile Registrars Limited
85 Field Street 94 President Street
DURBAN 4001 Johannesburg 2001
Directors:
DC Marshall (Chairman), PN Lonsdale (Managing), JPA Maitre, ME Stewart, DC
Vacy-Lyle
