| Tue 30 Aug 2011, 10:00 | | RAH - Real Africa Holdings Limited - Profit and dividend announcement for the |
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RAH
RAH
RAH - Real Africa Holdings Limited - Profit and dividend announcement for the
year ended 30 June 2011
Real Africa Holdings Limited
(Registration number 1994/003919/06)
Share code: RAH
ISIN code: ZAE000008702
("Real Africa" or "RAH" or "the company")
Profit and Dividend Announcement for the year ended 30 June 2011
GROUP STATEMENTS OF COMPREHENSIVE INCOME
Year ended Year
30 June ended
30 June
2011 2010
R`000 Audited Restated#
Revenue 64 391 62 718
Net investment profit 6 359 1 076
Share of profits of associates 41 111 37 812
Interest income 1 562 1 443
Operating income 113 423 103 049
Operating costs (3 437) (3 869)
Impairment of associate - (12 659)
Impairment of available-for-sale - (7 368)
investment
Interest expense - (21)
Profit before tax 109 986 79 132
Tax (957) 1 403
Profit for the year 109 029 80 535
Other comprehensive income:
Changes in fair value of available-for- 42 943 77 693
sale financial instruments
Reclassification adjustment for impairment - 96
included in profit for the year
Total comprehensive income for the year 151 972 158 324
Profit for the year attributable to:
Minority shareholders 14 076 3 267
Ordinary shareholders 94 953 77 268
109 029 80 535
Total comprehensive income for the year
attributable to:
Minority shareholders 16 708 7 812
Ordinary shareholders 135 264 150 512
151 972 158 324
#Amounts relating to the amortisation of
intangible assets forming part of the
investment in the associates (R10.6
million in 2011 and R6.6 million in 2010)
have been reclassified from a separate
"Amortisation" disclosure line in the
statements of comprehensive income below
operating income and have been included as
a reduction in the "Share of profit of
associates" line as disclosed before
"Operating Income". This reclassification
has been made to the comparative financial
information to comply with the disclosure
requirements of IAS 28 Investment in
Associates. This reclassification impacts
neither profit before nor after tax.
Similarly it does not change earnings per
share, headline earnings per share or the
statement of financial position.
Earnings per share (cents) 26.2 21.4
Headline earnings per share (cents) 24.9 24.5
GROUP STATEMENTS OF FINANCIAL POSITION
30 June 30 June
2011 2010
R`000 Audited Audited
ASSETS
Non current assets
Investment in associates 83 042 93 555
Available-for-sale investments 834 974 784 892
918 016 878 447
Current assets
Accounts receivable 110 556
Tax 215 196
Cash and cash equivalents 28 831 26 317
Loan to associate 5 128 -
34 284 27 069
Total assets 952 300 905 516
EQUITY AND LIABILITIES
Capital and reserves
Ordinary shareholders` equity 875 674 838 136
Minority interest 64 724 56 432
940 398 894 568
Non current liabilities
Tax - 10 510
- 10 510
Current liabilities
Accounts payable and accruals 907 438
Tax 10 995 -
11 902 438
Total liabilities 11 902 10 948
Total equity and liabilities 952 300 905 516
SUMMARISED GROUP STATEMENTS OF CASH FLOW
Year ended Year
30 June ended 30
June
2011 2010
R`000 Audited Audited
Cash flows from operating activities (3 013) (3 037)
Cash flows from investing activities 111 669 101 216
Cash flows from financing activities (106 142) (100 729)
Net cash flows 2 514 (2 550)
HEADLINE EARNINGS PER SHARE
Year ended Year
30 June ended 30
June
2011 2010
R`000 Audited Audited
Headline earnings per share (cents) 24.9 24.5
Weighted average number of shares 361.9 361.8
(million)
Reconciliation of headline earnings
(R`000)
Earnings attributable to ordinary 94 953 77 268
shareholders
Adjusted for:
Realised investment profits (6 500) (2 172)
Impairment of associate - 12 659
Impairment of available-for-sale - 7 368
investment
Tax on above items - (1 788)
Minority interest in the above items 1 508 (4 646)
Headline earnings 89 961 88 689
NET ASSET VALUE
30 June 30 June
R`000 2011 2010
Afrisun Leisure 1 247 257 1 161 081
Other net liabilities (4 809) (5 732)
Cash 19 160 24 721
Net asset value 1 261 608 1 180 070
Issued shares net of treasury shares 361.9 361.9
(million)
Net asset value per share (cents) 349 326
Note
All the investments held by Afrisun
Leisure have been valued using the
Discounted Cash Flow (DCF) valuation
method applying a discount rate of 11.64%
(30 June 2010:12.11%) at 30 June 2011, to
the directors` current estimated future
cash flows. A minority discount of 15% has
been applied to the valuation of the
gaming company investments.
GROUP STATEMENTS OF CHANGES IN EQUITY
R`000 Ordinary Minority Total
shareholders interest
`equity
Audited
For the year ended 30 June 2011
Balances at 30 June 2010 838 136 56 432 894 568
Profit for the year 94 953 14 076 109 029
Other comprehensive income 40 311 2 632 42 943
Dividends paid (97 726) (8 416) (106 142)
Balances at 30 June 2011 875 674 64 724 940 398
Audited
For the year ended 30 June 2010
Balances at 30 June 2009 780 487 56 465 836 952
Profit for the year 77 268 3 267 80 535
Other comprehensive income 73 244 4 545 77 789
Disposal of treasury shares 1 196 - 1 196
Dividends paid (94 059) (7 845) (101 904)
Balances at 30 June 2010 838 136 56 432 894 568
ACCOUNTING POLICIES
The summarised consolidated annual financial statements for the year ended 30
June 2011 has been prepared in accordance with the recognition and measurement
criteria of International Financial Reporting Standards (IFRS) and the
presentation and disclosure requirements of IAS 34 - Interim Financial Reporting
and AC500 standards issued by the Accounting Practices Board. The accounting
policies applied, other than those described below, are consistent with those
adopted in the financial statements for the year ended 30 June 2010.
AUDIT OPINION
Our auditor, PricewaterhouseCoopers Inc. audited the summarised consolidated
annual financial statements and summarised consolidated financial information
contained herein. Their audit reports in which they expressed unmodified
opinions are available for inspection at the company`s registered office.
REVIEW OF RESULTS
Revenue of R64.4 million, comprising dividends received was R1.7 million above
last year as a result of an increase in dividends received from SunWest offset
in part by lower dividends from Afrisun KZN.
The net investment profit of R6.4 million (2010: R1.1 million) relates
mainly to a R6.5 million profit realised on the sale of a 14.3% interest in
Zonwabise pursuant to a buyback by Zonwabise resulting from a commitment made
for Emfuleni`s licence bid, partly offset by the impairment of the investment
made to the Biotech Venture Fund of R0.1 million (2010: R1.1 million). The
comparative year included a profit on sale of investments by the Biotech Venture
Fund of R2.2 million.
The share of profits of associates includes the group`s share of income from
Afrisun Gauteng, Zonwabise and the management companies. The share of profits
increased mainly due to the payment of a cancelation fee on the early
termination of the Emfuleni Manco management contract which resulted in higher
profits in National Manco and Zonwabise who each own 50% of Emfuleni Manco.
Headline earnings per share increased by 1.4% due to the increase in the share
of profits from associates.
The board has declared a final dividend of 12 cents (2010:14 cents) per share,
bringing the total dividend for the year to 25 cents (2010: 26 cents) per share.
NON CURRENT ASSETS
The group contributed R7.1 million for its share of a R70 million
capitalisation of Golden Valley.
Afrisun Leisure`s interest in Zonwabise reduced to 26.7% following the sale of
shares in Zonwabise back to Zonwabise.
The value of Afrisun Leisure has increased by 7.4% from R1 161 million at 30
June 2010 to R1 247 million as at 30 June 2011 due mainly to a drop in the
discount rate used in the valuations from 12.11% at 30 June 2010 to 11.64%
currently used.
GRANDWEST EXCLUSIVITY
GrandWest`s initial 10-year casino exclusivity in the Cape Metropole expired
during December 2010. The Provincial Government of the Western Cape is still
considering whether to permit one of the other casino licence holders in the
Western Cape to relocate to the Cape Metropole and has engaged interested
stakeholders before taking a final decision.
There remains insufficient information to assess the potential impact on
GrandWest`s revenue and profitability.
EXPRESSION OF INTEREST BY SUN INTERNATIONAL LIMITED
Shareholders are referred to the SENS announcement released on 30 August 2011
relating to the expression of interest by Sun International Limited to acquire
the issued share capital of RAH.
OUTLOOK
Trading conditions within the leisure industry are likely to remain generally
negative in the year ahead, hence hospitality and gaming revenues are only
expected to improve marginally.
The outlook has not been reviewed or reported on by the company`s auditors.
DIVIDEND
Notice is hereby given that a final dividend of 12 cents per share for the year
ended 30 June 2011 (2010: 14 cents) has been declared, payable to
shareholders recorded in the register of the company at the close of business on
the record date appearing below. The salient dates applicable to the final
dividend are as follows:
2011
Last day to trade cum final dividend Friday, 16 September
First day to trade ex final dividend Monday, 19 September
Record date Friday, 23 September
Payment date Monday, 26 September
No share certificates may be dematerialised or rematerialised between Monday, 19
September and Friday, 23 September 2011, both days inclusive. Dividend cheques
will be posted and electronic payments made, where applicable, to certificated
shareholders on the payment date. Dematerialised shareholders will have their
accounts with their Central Securities Depository Participant or broker credited
on the payment date.
For and on behalf of the board
MV Moosa RP Becker
Chairman Financial director
30 August 2011
REGISTERED OFFICE
27 Fredman Drive, Sandown, Sandton, 2196
REGISTRAR
Computershare Investor Services (Pty) Ltd, 70 Marshall Street, Johannesburg,
2001
SPONSOR
Investec Bank Limited
DIRECTORS
MV Moosa (Chairman), RP Becker (Financial director), DC Coutts-Trotter, MJ
Leeming, MMT Ramano, Y Waja
SECRETARIES
Sun International Corporate Services (Pty) Limited
Date: 30/08/2011 10:00:01 Produced by the JSE SENS Department.
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