| Wed 21 Feb 2001, 0:00 | | Compass - Audited Results For The Year Ended 31 De |
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Compass Property Holdings Limited
("Compass")
(Incorporated in the Republic of South Africa)
(Registration number 1987/003591/06)
Audited Results for the year ended 31 December 2000
Summarised Group Income Statement
Year Year
Ended Ended
31 December 31 December
2000 1999
R000 R000
Turnover 42 406 43 348
Operating profit 28 075 28 548
Interest income 2 711 2 291
Profit before debenture interest
and exceptional items 30 786 30 839
Debenture interest (28 158) (28 184)
Profit before exceptional items 2 628 2 655
Exceptional items (24 500) (28 883)
Deficit on revaluation of
investment properties (24 500) (32 342)
Surplus on repurchase and
cancellation of debentures - 3 459
Loss for the year (21 872) (26 228)
Debentures
Number of debentures in issue 35 762 458 35 762 458
Interest per debenture (cents) 78,74 77,69
- interim 40,18 37,24
- final 38,56 40,45
Number of shares in issue 8 800 070 8 800 070
Loss per share (cents) (248,54) (298,05)
Headline earnings per share (cents) 29,86 30,16
Determination of headline earnings (R000)
Headline earnings for the year 2 628 2 655
Loss for the year (21 872) (26 228)
Adjusted for exceptional items 24 500 28 883
Net asset value per share (cents) (419) (171)
Summarised
Group Balance Sheet
31 December 31 December
2000 1999
R000 R000
ASSETS
Non-current assets
Investment properties at valuation 129 383 167 271
Current Assets 32 574 18 115
161 957 185 386
LIABILITIES
Capital and reserves
Share capital 88 88
Non-distributable reserve 12 598 12 598
Accumulated loss (49 567) (27 695)
(36 881) (15 009)
Non-Current Liabilities
Debenture capital 178 812 178 812
Current liabilities 20 026 21 583
161 957 185 386
Summarised Group Cash Flow Statement
Year Year
Ended Ended
31 December 31 December
2000 1999
R000 R000
Net cash (utilised in)/generated by
operating activities (951) 8 923
Net cash generated by/(utilised in)
investing activities 13 388 (66)
Net cash utilised in financing activities - (5 455)
Increase in cash and bank balances 12 437 3 402
Cash and bank balances at beginning
of year 16 400 12 998
Cash and bank balances at end of year 28 837 16 400
Summarised Group Statement
of Changes in Equity
Non-
Distribu- Accumu-
Share table lated
Capital Reserves Loss Total
Balance at 1 January 1999 88 19 342 (1 467) 17 963
Net losses not recognised in
the income statement
- revaluation deficit (6 744) (6 744)
Loss for the year (26 228) (26 228)
Balance at 31 December 1999 88 12 598 (27 695) (15 009)
Loss for the year (21 872) (21 872)
Balance at 31 December 2000 88 12 598 (49 567) (36 881)
Comments
Group Results
Turnover decreased by R0, 942 million (2, 2%) mainly as a result of the sale of
Engen House and Bateleur House early in the year, offset by rental escalations
throughout the remainder of the portfolio. Occupancy levels in the portfolio
remained relatively unchanged with 72, 6% of the company's rentable area of 136
138 m2 let at 31 December 2000 (31 December 1999: 72% of 139 727 m2).
Operating profit decreased by R0, 473 million mainly due to the lost
contribution in respect of the disposed properties. Interest income however
increased by R0, 420 million (18%), in line with the higher cash balances held
following the sale of these properties.
The interest payment to debenture holders for the year ended 31 December 2000
is 78. 74 cents per debenture (1999: 77.69 cents). Headline earnings were 29.86
cents per share (1999: 30.16 cents) but in view of the loss recorded for the
year, no dividend has been declared.
Valuation of Properties
The group's accounting policy requires that the investment properties be valued
every three years or at shorter intervals if it is felt that significant
changes have occurred since the last valuation date. Notwithstanding that the
properties were valued at 31 December 1999, uncertainties concerning future
market trends in the CBD's of Durban and Johannesburg prompted the
commissioning of a further valuation exercise by Mills Fitchett (Transvaal) cc
at 30 June 2000 which resulted in the property values being reduced by an
aggregate amount of R19, 3 million.
The directors do not believe that there has been a significant change in the
value of the properties since 30 June 2000, other than Wilson's Wharf, which at
that time was subject to an offer that did not eventuate. As a consequence this
property was revalued at 31 December 2000 to R6, 3 million, a reduction of R5,
2 million. The total deficit on revaluation of R24, 5 million has been charged
to the income statement.
Going Concern
As a consequence of the substantial write-downs in the capital values of
certain investment properties, shareholder funds reflect a deficit of R36, 881
million (1999: R15, 009 million). Nevertheless, the company continues to
prepare its financial statements on the basis of a going concern as the
directors consider that for the foreseeable future the company will generate
sufficient income and cash to enable it to service its obligations. In
addition, the right of debenture holders to repayment is subordinated to the
claims of other unsubordinated creditors.
Prospects
Leases for 62 000m2 of space are due to expire during 2001, the expectation
being that most of the leases will be renewed. However, as present market rent
levels are lower than those on expiry of the leases to be renewed, a reduction
of approximately 10% in the interest payments to debenture holders for the year
ended 31 December 2001 can be expected.
Debenture Interest Payment
Notice is hereby given that a debenture interest payment (number 27) of 38,56
cents per debenture in respect of the six months ended 31 December 2000 is
payable on or about 23 March 2001 to debenture holders registered as such at
the close of business on 9 March 2001.
For and on behalf of the Board
G G L LEISSNER H M Thompson
Chairman Director
Johannesburg
21 February 2001
Registered office
5th Floor, 15 Baker Street
Rosebank 2196
Transfer secretaries
Computershare Services Limited
2nd Floor, Edura
41 Fox Street
Johannesburg 2001
Directors
B H Azizollahoff*, J F Bihl, W F E Bragg*, K F Clinton,
G G L Leissner (Chairman), G Lindop, G R Pardoe, C L Sunter*,
H M Thompson
Alternate director
MC Felling
*British
DOMAYNE PROPERTY MANAGERS
Secretaries
