| Wed 14 Feb 2001, 0:00 | | Money Wise Interim Results |
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MONEY WISE HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1997/020159/06)
("Money Wise" or "the company")
Interim results for the 12-month period ended 31 December 2000
RETURN TO PROFITABILITY
Group income statement
for the period ended 31 December 2000
Unaudited Unaudited Unaudited Audited
6 months 6 months 12 months 12 months
ended ended ended ended
31 December 30 June 31 December 31 December
2000 2000 2000 1999
R'000 R'000 R'000 R'000
Interest income 20 887 24 748 45 635 51 743
Interest expense (4 050) (2 348) (6 398) (3 475)
Net interest 16 837 22 400 39 237 48 268
Charge for bad and
doubtful advances (4 752) (11 586) (16 338) (6 871)
Additional bad debt provision - (10 023) (10 023) -
12 085 791 12 876 41 397
Other income 20 420 2 875 23 295 8 965
Total net revenue 32 505 3 666 36 171 50 362
Goodwill amortisation (2 274) - (2 274) (50)
Operating costs (25 861) (29 834) (55 695) (43 676)
Net income before taxation 4 370 (26 168) (21 798) 6 636
Taxation (2 186) 7 705 5 519 (2 216)
Net income after taxation 2 184 (18 463) (16 279) 4 420
Income from Associated Company - (553) (553) 555
Net income attributable to
ordinary shareholders 2 184 (19 016) (16 832) 4 975
Weighted number of shares
in issue 705 784 242 900 474 342 242 900
Basic earning per share (cents) 0,31 (7,82) (3,55) 2,05
Headline earnings per share
(cents) 0,63 (5,56) (1,91) 2,07
Group statements of changes in equity
for the year ended 31 December 2000
Share Share Accumulated
capital premium profits Total
R'000 R'000 R'000 R'000
Balance at 31 December 1998 24 67 203 (1 798) 65 429
Net profit for year - - 4 975 4 975
Goodwill written-off - (47 316) - (47 316)
Balance at 31 December 1999 24 19 887 3 177 23 088
Net loss for year - - (19 016) (19 016)
Balance at 30 June 2000 24 19 887 (15 839) 4 072
Net profit for year - - 2 184 2 184
Issue of share capital 46 11 526 - 11 572
Share issue expenses written-off - (1 196) - (1 196)
Balance at 31 December 2000 70 30 217 (13 655) 16 632
Group balance sheet
at 31 December 2000
Unaudited Unaudited Audited
31 December 30 June 31 December
2000 2000 1999
R'000 R'000 R'000
ASSETS
Non-current assets
Property, plant and equipment 6 564 7 427 8 184
Investment in associate - 3 557
Goodwill 6 821 - -
Deferred taxation 6 285 8 527 822
Inventories 560 - 651
Accounts receivable 872 1 357 4 475
38 442 17 427 31 104
Advances 41 093 35 810 32 646
Provision for doubtful advances (2 651) (18 383) (1 542)
Cash and cash equivalents 1 439 2 674 2 446
TOTAL ASSETS 60 983 37 415 48 239
EQUITY AND LIABILITIES
Shareholders' funds 16 632 4 072 23 088
Bank Overdraft 16 831 16 962 2 833
Shareholders' Loans 14 505 - -
Interest bearing borrowings 2 232 2 468 3 345
Trade and other payables 10 477 13 298 8 861
Short-term borrowings 306 615 10 112
TOTAL EQUITY
AND LIABILITIES 60 983 37 415 48 239
Group cash flow statement
for the period ended 31 December 2000
Unaudited Unaudited Unaudited Audited
6 months 6 months 12 months 12 months
ended ended ended ended
31 December 30 June 31 December 31 December
2000 2000 2000 1999
R'000 R'000 R'000 R'000
Cash flows from operating
activities (14 189) (3 730) (17 919) 1 435
Cash flows from investing
activities (11 251) (479) (11 730) (8 564)
Cash flows from financing
activities 24 336 (9 692) 14 644 919
Net change in cash and cash
equivalents (1 104) (13 901) (15 005) (6 210)
Cash and cash equivalents at
beginning of period (14 288) (387) (387) 5 823
Cash and cash equivalents at
end of period (15 392) (14 288) (15 392) (387)
COMMENTARY
NATURE OF BUSINESS
Money Wise Holdings Limited provides finance to sectors of the community not
currently serviced by the traditional banks. It is a member of the Micro
Finance Regulatory Council.
RESULTS
Due to the change in the financial year-end from 31 December to 31 March, the
company is releasing a second set of interim results for the 12 months ended 31
December 2000.
As a result of actions instituted by the new controlling shareholders in the
second part of last year, Money Wise is now trading profitably on a
month-to-month basis.
However, the profits earned in the last six months were not sufficient to
offset the losses incurred earlier. Headline losses per share for the 12 months
ended 31 December 2000 amounted to 1,91 cents against headline earnings of 2,07
cents for the 12 months ended 31 December 1999.
Goodwill, which has arisen from the acquisitions, will be amortised on the
straight-line basis over two years.
SIGNIFICANT DEVELOPMENTS
As a result of action taken since the change in control announced on 8 November
2000:
- head office staff has been reduced by 69%;
- five non-profitable branches have been closed;
- improved, effective credit-risk management has resulted in reduced bad debts;
and
- the Board has been reconstituted and strengthened.
- short-term loans as a percentage of the total book, reduced from 84% a year
ago to 15% today.
CHANGES TO THE BOARD OF DIRECTORS
Harry van Heerden, Managing Director of Real People Holdings, was appointed to
the Money Wise Board effective 9 February 2001. Bernhardt Anthony Griessel
resigned from the Board on 7 February 2001.
STATEMENT OF MATERIAL CHANGE
Other than the acquisitions announced in the results of the Annual General
Meeting dated 8 November 2000, no material changes have taken place during the
period under review.
INTERIM DIVIDEND
No interim dividend will be declared.
PROSPECTS FOR MONEY WISE
Money Wise will continue to expand the range of its financial services offered
to its clients and consolidate its position as one of the major participants in
the mass financing industry.
CAUTIONARY
Subsequent to the period under review, a cautionary was issued on 22 January
2001. Shareholders should note that negotiations in this regard are still in
progress, which, if successful, may have a material impact on Money Wise's
share price.
By order of the Board
J van Rooyen
Company Secretary
Knysna
14 February 2001
Directors
SJ de Vos (Non-Executive Chairman), J van Rooyen (Managing Director), GJ van
Tonder (Executive Director), ZR S Thomas (Executive Director), KDD de Villiers
(Non-Executive Director), MJW Jones (Non-Executive Director), HC van Heerden
(Non-Executive Director), MN Wilkins (Non-Executive Director)
Corporate adviser
Arcay Group Limited
Registration number 1991/003944/06
Investor relations
Arcay Financial Communications
Registration number 1998/024383/07
Sponsor
Incentive
Lowenthal (Pty) Ltd
(Registration number 1998/021556/07)
