| Tue 31 May 2011, 16:00 | | ADW - African Dawn Capital Limited - Audited Condensed Consolidated Financial |
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ADW
ADW
ADW - African Dawn Capital Limited - Audited Condensed Consolidated Financial
Results for the year ended 28 February 2011 and further cautionary announcement.
AFRICAN DAWN CAPITAL LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/020520/06)
JSE code: ADW
ISIN: ZAE000060703
"the Company" or "the Group"
Turnaround in the loss per share ("LPS") and headline loss per share ("HLPS")
resulting in an earnings per share ("EPS") of 1.63 cents and headlines earnings
per share ("HEPS") of 1.03 cents, EPS movement of 101.1% and HEPS movement of
100,7%.
Audited Condensed Consolidated Statements of Financial Position for the year
ended 28 February 2011
Year ended Year ended
28-Feb-11 28-Feb-10
R`000 R`000
(Audited) (Audited)
Non-current assets 3,000 5,859
Property, plant and equipment 2,288 5,859
Other financial asset 712 -
Current assets 124,241 125,344
Property in possession 25,344 6,997
Other financial assets 300 -
Current tax receivable 6,961 6,961
Trade and other receivables 284,146 322,070
Impairment on trade receivables (200,665) (226,582)
Net trade and other receivables 83,481 95,488
Cash and cash equivalents 8,155 15,898
Non-current assets held for sale 1,200 12,429
Total assets 128,441 143,632
Capital and reserves 26,079 23,673
Share capital 256,107 256,107
Reserves 105 452
Accumulated (loss) (230,133) (234,265)
Non-controlling interest - 1,379
Non-current liabilities 11,175 32,246
Borrowings 11,124 30,460
Finance lease obligation 51 1,210
Deferred tax - 576
Current liabilities 91,187 87,713
Finance lease obligation 127 956
Borrowings 48,538 39,287
Current tax payable 18,045 17,995
Trade and other payables 11,716 12,732
Provisions 12,484 16,000
Bank overdraft 277 743
Total liabilities 102,362 119,959
Total equity and liabilities 128,441 143,632
Ordinary shares in issue (`000) 222,926 222,926
Net asset value per share (cents) 11.69 10.61
Net tangible asset value per share (cents) 11.69 10.61
Audited Condensed Consolidated Statements of Comprehensive Income for the year
ended 28 February 2011
Year ended Year ended
28-Feb-11 28-Feb-10
R`000 R`000
(Audited (Audited)
Revenue 48,235 105,336
Cost of sales (1,295) (1,919)
Gross profit 46,940 103,417
Other income 8,603 1,905
Operating and other expenses (33,687) (254,643)
Operating profit/(loss) 21,856 (149,321)
Investment revenue 256 72
Fair value adjustment (10,522) (139,192)
Finance cost (7,148) (10,877)
Profit/(Loss) before taxation 4,442 (299,318)
Taxation (816) (7,179)
Profit/(Loss) for the year 3,626 (306,497)
Other comprehensive income:
Loss on property revaluation - (4,000)
Taxation related to components of other
Comprehensive income (452) (1,063)
Other comprehensive loss for the year net
of taxation (452) (5,063)
Total comprehensive income/(loss) 3,174 (311,560)
Attributable to
Owners of the parent 3,785 (311,560)
Non-controlling interest (611) -
Weighted number of shares 222,926 219,830
Basic earnings/(loss) per share 1.63 (139.42)
Diluted earnings/(loss) per share 1.63 (139.42)
Headline earnings/(loss) per share 1.03 (49.28)
Reconciliation of headline earnings/(loss)
Basic profit/(loss) 3,626 (306,497)
Non-recurring adjustments
Impairment of subsidiaries` NAV
and related goodwill - 198,155
Sale of subsidiary (806) -
Sale of properties (515) -
Headline earnings/(loss) 2,305 (108,342)
Audited Condensed Consolidated Statements of Changes in Equity for the year
ended 28 February 2011
Share Share Total Retained Minority Ordinary
Capital Premium Reserves Earnings Interest Share
Holders
Equity
Balance at 28 Feb 2009 2,169 242,444 5,515 72,232 (5,755)316,605
Total comprehensive (loss)
for the 2010 year - - (5,063)(306,497) -(311,560)
Purchase of own/treasury
Shares (1) (1,143) - - - (1,144)
Treasury shares issued to
Allegro shareholders 53 12,585 - - - 12,638
Subsidiary acquired 1,379 1,379
Deconsolidation of Allegro
Holdings (Pty) Ltd - - - - 5,755 5,755
Balance at 28 Feb 2010 2,221 253,886 452 (234,265) 1,379 23,673
Total comprehensive income
for the 2011 year - - (452) 4,237 (611) 3,174
Transfer to insurance reserve- - 105 (105) - -
Subsidiary sold - - - - (768) (768)
Balance at 28 Feb 2011 2,221 253,886 105 (230,133) - 26,079
Audited Condensed Consolidated Statements of Cash Flows for the year ended 28
February 2011
Year ended Year ended
28-Feb-11 28-Feb-10
R`000 R`000
(Audited) (Audited)
Cash flow from operating activities 2,591 (34,710)
Cash flow from investing activities 2,987 20,657
Cash flow from financing activities (12,854) 5,325
Net cash flow for the year (7,276) (8,728)
Cash and cash equivalents at
beginning of the year 15,155 23,883
Cash and cash equivalents at
end of the year 7,879 15,155
Basis of preparation
The Audited Condensed Financial Statements are prepared in South African Rands
thousands (`000) on the historical-cost basis, except for certain assets and
liabilities which are carried at amortised cost or stated at their fair value.
The financial statements have been prepared in accordance with the framework
concepts and measurement and recognition requirements of International Financial
Reporting Standards ("IFRS"), the requirements of the South African Companies
Act and the JSE Listings Requirements. The preparation of financial statements
in conformity with IFRS and AC 500 requires the use of certain critical
accounting estimates. It also requires management to exercise its judgement in
the process of applying the Company`s accounting policies.
Audit opinion
We have audited the Group annual financial statements and annual financial
statements of African Dawn Capital Limited, which comprise the consolidated and
separate statements of financial position as at 28 February 2011 and the
consolidated and separate statements of comprehensive income, changes in equity
and cash flows for the year then ended, and a summary of significant accounting
policies and other explanatory notes.
Directors` responsibility for the financial statements
The Company`s directors are responsible for the preparation and fair
presentation of these financial statements in accordance with International
Financial Reporting Standards, and in the manner required by the Companies Act
of South Africa. This responsibility includes: designing, implementing and
maintaining internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to
fraud or error; selecting and applying appropriate accounting policies; and
making accounting estimates that are reasonable in the circumstances.
Auditors` responsibility
Our responsibility is to express an opinion on these financial statements based
on our audit. We conducted our audit in accordance with International Standards
on Auditing. Those standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the
amounts and disclosures in the financial statements. The procedures selected
depend on the auditors` judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control
relevant to the entity`s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity`s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well as evaluating
the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, these financial statements present fairly, in all material
respects, the consolidated and separate financial position of African Dawn
Capital Limited as at 28 February 2011, and its consolidated and separate
financial performance and consolidated and separate cash flows for the year then
ended in accordance with International Financial Reporting Standards, and in the
manner required by the Companies Act of South Africa.
GRANT THORNTON
Chartered Accountants (SA)
Registered Auditors
per EFG Dreyer
Chartered Accountant (SA)
Registered Auditor
31 May 2011
Grant Thornton Office Park
137 Daisy Street
Sandown
Johannesburg
2196
The signed audit opinion is available for inspection at the Company registered
offices.
Notes to the Audited Condensed Consolidated Financial statement
1. Reporting entity:
African Dawn Capital Limited is a Company domiciled in the Republic of South
Africa. The Condensed Consolidated Financial Statements of the Company
for the year ended 28 February 2011 comprise the Company and its
subsidiaries and the Group`s interests in associates and jointly controlled
entities.
2. Statement of compliance:
The audited consolidated financial information for the year ended 28 February
2011, has been prepared in accordance with International Financial Reporting
Standards (IFRS), the interpretations adopted by the International Accounting
Standards Board ("IASB"), and the requirements of the South African Companies
Act. The audited results were approved by the Board on 20 May 2011.
3. Significant accounting policies:
The accounting policies adopted in the preparation of the consolidated
financial information are consistent with those of the annual financial
statements for the year ended 28 February 2010. For a full list of standards and
interpretations which have been adopted we refer you to the 28 February 2010
annual financial statements. Below is an extract of the most significant
accounting policies of the Group.
Revenue recognition: Revenue recognition comprises the fair value of the sale of
goods and services, net of value-added tax, rebates and discounts. Revenue is
recognised as follows. Sale of services: Sales of services are recognised in the
accounting period in which the services are rendered, by way of reference to
completion of the specific transaction assessed on the basis of the actual
services provided as portion of the total services to be provided.
Interest income: Interest income is recognised on a time-proportion basis using
the effective interest method. When a receivable is impaired, the Group reduces
the carrying amount to its recoverable amount - being the estimated future cash
flow discounted at the original effective interest rate of the instrument and
continues unwinding the discounts as interest income. Interest income on
impaired loans is recognised either as cash is collected or on a cost-recovery
basis as conditions warrant.
Impairment of assets: Assets that have an indefinite useful life are not subject
to amortisation and are tested annually for impairment. Assets that are subject
to amortisation or depreciation are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognised for the
amount by which the asset`s carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset`s fair value less cost to sell and
value in use. For the purpose of assessing impairment, assets are grouped at the
lowest levels for which there are separately identifiable cash flows (cash
generating units).
Property in possession: Repossessed properties acquired in exchange for loans as
part of an orderly realisation are reported in Property in possession under the
inventory assets class, as it is held for sale in the ordinary course of
business. The repossessed properties are recognised when the risks and rewards
of the properties have been transferred to the Group. The corresponding loans
are derecognised when the Group becomes the owner of the property. The property
acquired is initially recorded at cost which is the lower of its fair value
(less costs to sell) and the carrying amount of the loan (net of impairment) at
the date of transferring ownership. It is subsequently measured at the lower of
the carrying amount and its net realisable value. No depreciation is charged in
respect of these properties. Any subsequent write-down of the acquired property
to net realisable value is recognised in the statement of comprehensive income,
in impairments. Any subsequent increase in the net realisable value, to the
extent that it does not exceed the cumulative write-down, is also recognised in
impairments. Gains or losses on disposal of repossessed properties are reported
in Other operating income or Operating expenditure.
4. Accounting Estimates:
The preparation of financial statements requires management to make
judgements, estimates and assumptions that affect the application of accounting
policies and the reported amounts of assets and liabilities, income and expense.
Actual results may differ from these estimates. Except as described below, in
preparing these condensed consolidated financial statements, the significant
judgements made by management in applying the Group`s accounting policies and
the key sources of estimation certainty were the same as those that applied to
the consolidated financial statements for the six months ended 31 August 2010
and year ended 28 February 2010. During the year ended 28 February 2011
management reassessed its estimates in respect of: the recoverable amount of
investments and intercompany loans in each subsidiary; the recoverable amount of
trade and other receivables in conjunction with current economic climate and
reasonable recoverability and deferred tax assets.
5. Impairments of trade and other receivables
The majority of the impairment of trade receivables is based on underlying
security value and recoverability at the time of reporting. The security values
and recovery strategies were reassessed and renegotiated at 28 February 2011,
the provisions and impairments were adjusted accordingly.
Impairment and provisions
28-Feb-11 28-Feb-10
R`000 R`000
Movement in impairment and provision 25,917 95,140
6. Non current assets held for sale
The office building held for sale in 2010, was sold during 2011. In 2011,
security on a loan was perfected by way of property deed transfer into the
Group. The property was placed on the market prior to 28 February 2011 year end
and is still in the process of being transferred to the buyer.
7. Property in possession
The Company perfected its security over properties in order to protect its
capital advances in terms of its loan, by taking transfer of ownership. The
development on the properties needs to be finalised in order for the Group to
recover its capital. The properties are now deemed as properties in possession,
pending realisation of the above mentioned process.
28-Feb-11 28-Feb-10
R`000 R`000
Almika Properties (Pty) Ltd - Benoni Gauteng 7,029 6,997
Green Oaks - Centurion Gauteng 28,837 -
Impairment adjustment (10,522) -
Total 25,344 6,997
8. Segmental information
Figures in ZAR thousands
28 Feb 2011 Bridging Personal & Other & Total
Finance Short Term Head office
Revenue and other income 4,912 34,518 17,408 56,838
Costs (790) (34,070) (17,741) (52,706)
Segmental profit/(loss) 4,122 448 (333) 4,237
Net asset value (28,148) (16,247) 70,474 26,079
28 Feb 2010 Bridging Personal & Other Total
finance Short term
Revenue and other income 40,602 52,954 12,513 106,070
Segmental (loss) (264,724) (31,473) (10,299)(306,496)
Net asset value 41,364 (15,316) (2,362) 23,686
Other Notes
1. Corporate governance
The Directors and senior management of the Group endorse the Code of Corporate
Practices and Conduct as set out in the King II report on Corporate Governance.
Having regard for the size of the Group, the Board is of the opinion that the
Group complies with the Code as well as with the Listings Requirements of the
JSE Limited in all material respects. The Group performs regular reviews of its
corporate governance policies and practices and strives for continuous
improvement in this regard. The Group has adopted King III and is in the process
of implementation.
2. Human resources
Ongoing skills and equity activities continue to ensure compliance with current
legislation. Plans continue in terms of initiatives embarked upon that
contribute to broader skills development and sourcing appropriately qualified
staff on an ongoing basis.
3. Dividend
The Company will not pay a dividend for the 2011 financial year.
Comments from the board
1. The macro-economic environment
The next two years will be challenging times for the financial services
industry and in particular the providers of credit. The banks continue to be
extremely cautious and credit remains a scarce commodity across many market
segments and in particular in the lower income households. The cautious approach
to lending comes from the excesses of the latter part of the last decade, where
over extension of credit was prevalent, as well as the raft of legislation that
has impacted on the financial markets in general, and the banks in particular.
The National Credit Act ("NCA"), which requires credit providers to assess the
affordability of repayments for loan applicants, is limiting access to credit
facilities to, specifically lower income households. The National Credit
Regulator ("NCR") is still trying to thrash out the practical implementation of
the National Credit Act with the main stream banks, the micro finance industry
("MFI") and the recently formed debt counselling industry.
The introduction of the Consumer Protection Act and the new Companies Act has
added further challenges for those extending lines of credit. Added to this,
the planned implementation of Basel III capital standards and the impact it will
have on bank`s cost of capital, and notwithstanding the extended implementation
timeline, is forcing regulated financial institutions to relook at their risk
models.
"There remains underlying tension between the trade-off between safety within
the financial system and its ability to support economic growth." (KPMG _ Basel
III Pressure is Mounting - December 2010). Whilst the comment refers
specifically to Basel III, it is pertinent to the South African market across
all the legislative and economic changes experienced in the last three years.
Pressure is on the banks to repeat the growth rates seen in the earlier part of
the last decade whilst dealing with the debt overhang from the same period.
Whilst inroads have been made in managing non performing debt, there is still a
significant market for the purchase of distressed debt from the banks and fund
investors who were willing lenders during the property boom and we believe this
will continue for some time yet.
The SA Reserve Bank ("SARB") noted in its March 2011 Financial Stability Review
that "the share of credit extended to private households declined from June to
December 2010" whilst "gross loans and advances increased in December 2010
compared to a year ago, albeit at a moderate pace. Banks` lending standards are
showing signs of loosening, although it is not expected to have a significant
impact on credit extension, given the extent of household debt".
The sobering fact is that any wish by Politicians to see a significant easing in
lending standards by commercial banks and, notwithstanding lower interest rates,
is unlikely to have a significant impact on credit extension to households in
the short term. The SARB advises that of a total of 18.5 million credit active
consumers, nearly 50% (8.61 million) have impaired credit records with a
deteriorating trend in the last quarter of 2010.
The economic environment and Afdawn
Having regard to the regulatory environment as well as the banks` reluctance to
extend credit provides Afdawn ample opportunity to grow its business in personal
as well as structured lending. Elite, our micro-finance business has, during the
period of uncertainty for the Group following the removal of the executives in
2009, tightened up on systems and, in particular, it`s debt recovery operations.
The call centre, which was developed to deliver loans, is also bearing fruit.
The traditional delivery channel in the MFI remains front offices which are both
costly and can increase the risk of fraud and default. Corporate employers,
which Elite targets to provide micro loans to the workforce, are happy that
employees do not have to leave their place of work in order to apply for a micro
loan. This gives Elite a distinct advantage in its target market segment.
The Afdawn Property Transfer Funds ("PTF"`s) continue to collect the loan books.
The legal process is at an advanced stage for the majority of outstanding loan
debtors. The legal process is long and is exacerbated by the nature of loans
that the Group undertook prior to 2009 where agreements were sometimes left
wanting and security was not always properly taken, if at all. However, progress
is being made and we are comfortable that the net book value is recoverable .
The medical aid discounting operation, Dumont Healthcare, has stabilised
following internal fraud. We believe that medical loans and medical aid
discounting is an attractive and growing market and we will endeavour to grow
this business albeit off a low base.
Through the development of well staffed and structured debt recovery departments
in both Elite and the PTF`s, the Group is well placed to assist other
institutions with debt management. We currently manage a property book on behalf
of a hedge fund and have had a number of approaches to take on additional books
for a management fee.
Any growth in Afdawn is dependent on the recapitalisation of the Group. In order
to achieve this there are ongoing issues that are receiving the Board`s full
attention. We are pleased to advise that, after lengthy and drawn-out
negotiations, we signed a settlement agreement with the National Housing Finance
Corporation Limited ("NHFC"), the Group`s largest creditor, on 30 May 2011. This
removes the last remaining impediment to the recapitalisation of the Group.
We have concluded discussions with various parties regarding the
recapitalisation of the Group which has resulted in us being able to propose a
fully underwritten rights issue of R25 million as well as raising a convertible
bond in Elite for R10m. We shall shortly approach the shareholders with full
details of the planned recapitalisation and to seek approval for the issue of a
convertible bond.
Due to the Group`s recent past including the discovery of fraud and
mismanagement, the re-establishment of some market credibility remains a high
priority for the Board. The Board and operating executive remain committed to
increasing shareholder value. The clean up, which commenced last year, in the
operations and financial reporting is now complete. Proper governance is now in
place with the formation of Board sub-committees and an operating executive
committee. This has been undertaken against a background of limited cash
reserves. Ms H Hickey`s appointment to the Board and chair of the audit
committee has added significant weight to the Group`s risk and control
processes. Ms Hickey is well known in the corporate South Africa having chaired
the South African Institute of Chartered Accountants for a number of years and
currently is Chair of a number of Board audit committees of listed companies.
Strategically we will finalise the recapitalisation of the Group as this is
essential for growth and sustainability. Strategic emphasis will be placed on
our personal finance businesses where the potential to grow and the reward is
greatest, subject to the efficient management of the risks; an area in which the
Group is well versed. We will maximise the use of our skilled personnel and
systems in order to leverage our intellectual property in the sector. We will
further reduce costs through the divisionalisation of the Group into two
distinct product groupings; personal finance and secured structured finance and
will institute shared services across all business units. We will pursue well
structured and secured bridging finance but, we believe, the market potential
remains, at best, neutral due to limited access to credit.
Operational overview
The Group has performed admirably in spite of the lack of additional capital.
The consolidated net profit after tax of R3,6m is against a significant write
off in 2010 where a loss of R306m was incurred. In addition, in the year ended
28 February 2010 the Group wrote off a further amount of R548,5m in respect of
prior years. This resulted in a loss of 214% of the Group`s paid up capital. The
current net asset value is an improvement on that disclosed in the interim
results due to the profit earned in the second half as well as an excess
provision which was reversed in the period.
The personal finance business has fared well although continues to suffer from
the lack of access to new capital. Elite returned an operating profit of R1,2m
(2010: loss of R3,7m). The level of provisioning has reduced to 18% (2010 -
24.9%) and reflects the efforts made in improving collections. The Executive
believe, however, that as some of the older accounts, inherited through the use
of commission agents in placing business in the past, are worked through the
provisions level should reduce even further. Dumont returned a loss for the year
of R2,0m (2010 - loss of R6,6m). The business suffered through the actions of a
previous employee who, having been dismissed following a fraud, then approached
a number of the Company`s clients to solicit business. A legal claim has been
lodged against the individual and the business has been stabilised.
The structured finance business remains as a collection book. No new loans have
been advanced and we will continue to pursue defaulters through the courts but
only when the recoverability outweighs the cost of collection. The PTF`s have
returned a profit of R2,9m (2010 - loss of R23,8m) for the year based
predominantly on the success of over recovering on loans previously provided.
The Group has bought in a number of properties and currently holds these as
"Property in Possession". These properties in possession have been valued at
year end which resulted in an impairment adjustment of R10,5m (2010 : R-).
Allegro Holdings (Pty) Limited
As mentioned in the 2010 Annual Report, a subsidiary company, Allegro Holdings
(Pty) Limited was placed in curatorship in 2009 and was therefore
deconsolidated. At that time Allegro was indebted to Afdawn in the amount of
R3,8m. The curator has repeatedly made verbal claims against the Group regarding
a possible claim that he claims to have against Afdawn and/or its subsidiaries.
This has been ongoing since early 2010 and, notwithstanding written requests to
the curator; no formal claim has been forthcoming, nor have we been advised of
the basis of any claim. Equally, as an investor in Allegro, we have been unable
to obtain any reports from the curator regarding the current financial position
of Allegro. The Board continues to be unable to substantiate any possible claims
and as a result no provision has been made for any such contingency.
Changes to the Board of Directors
The composition of the Board and its sub-committees changed since the last year
end. As reported at the interim stage, Mr A Potgieter resigned on 7 May 2010 as
independent non-executive director. Mr RR Emslie resigned as independent non-
executive director and chairman on 22 July 2010. Mr PC Gordon and Ms L Taylor
were appointed on the same day as executive chairman and independent non-
executive director respectively. Mr TF Kruger was appointed 2 August 2010 as
financial director. Mr M Patel and Mr S de Bruyn resigned as non-executive
directors on 1 November 2010. Mrs HH Hickey was appointed as non executive
director and chair of the audit committee on 21 February 2011. Due to the fact
that Afdawn has appointed an executive chairman, Mr C Wiese was appointed as
lead independent director on 8 March 2011
2. Going concern update
The Group has access to funds to ensure its continued trading beyond the current
financial year. As was the case last year, the Group has not had access to new
capital and has been unable to grow the existing businesses. Notwithstanding the
shortage of capital we have managed to install austerity measures to ensure that
the various business units continued to operate, albeit not at maximum capacity,
whilst we dealt with a number of corporate issues which required resolution
prior to any recapitalisation. The final impediment to raising new capital has
been resolved with the completion of a settlement agreement with the National
Housing Finance Corporation Limited ("NHFC") regarding the Group`s outstanding
obligations to this organisation. This has removed a material uncertainty which
has been inherent in the business ever since default occurred on the NHFC
facilities and which was triggered when the majority of the executive directors
were removed from the Board at the Annual General Meeting in October 2009. The
Group can now proceed with its recapitalisation and, as mentioned previously,
Shareholders will be advised of the terms thereof in due course.
3. Update on past Board members and professional advisors
Following from the forensic audit commissioned in 2010, the Board and executive
are co-operating with the appropriate regulatory authorities and the South
African Police Services. Shareholders will be informed on developments relating
to this matter.
4. Further Cautionary Announcement
Shareholders are referred to the Cautionary Announcement released on 4 May
2011. In this announcement Shareholders were advised that the Company was still
in discussions with various parties regarding the raising of additional funding
for the Group. As the Group has concluded further discussions, the
recapitalization of the Group can proceed through a fully underwritten rights
issue of R25 million and raising a R10 million convertible bond in Elite. The
terms and conditions of the aforesaid will be disclosed in a circular to
Shareholders in due course. Shareholders are advised to continue exercising
caution when dealing in the Company`s securities until a further announcement is
made with regard to this matter.
Administration
African Dawn Capital Limited
("African Dawn" or "the Company" or "the Group")
Registration number: 1998/020520/06
(Incorporated in the Republic of South Africa)
JSE share code: ADW ISIN code: ZAE000060703
Registered office: 1 st Floor, Dunkeld Place, 12 North Road, Dunkeld West,
Johannesburg, Republic of South Africa
Tel: +27 (11) 341 0860 Fax: +27 (11) 325 2716
Directors: PC Gordon (executive chairman), TF Kruger (financial director), SW de
Bruyn (non-executive)(resigned 1 November 2010), MM Patel (independent non-
executive)(resigned 1 November 2010), CF Wiese (independent non-executive), L
Taylor (independent non-executive), HH Hickey (independent non-executive)
Company secretary: LW Viljoen
Auditors: Grant Thornton
Designated Advisor: Sasfin Capital, a division of Sasfin Bank Limited
Transfer secretaries: Computershare Investor Services (Proprietary) Limited
70 Marshall Street, Johannesburg, 2001
Date: 31 May 2011
Date: 31/05/2011 16:00:05 Produced by the JSE SENS Department.
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