| Wed 28 Sep 2011, 15:24 | | SBL - Sable Holdings Limited - Reviewed provisional consolidated condensed group |
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SBL
SBL
SBL - Sable Holdings Limited - Reviewed provisional consolidated condensed group
results for the year ended 30 June 2011
SABLE HOLDINGS LIMITED
("Sable" or the "company" or "the group")
(Registration No. 1968/010636/06)
Share code: SBL ISIN code: ZAE000006383
(Incorporated in the Republic of South Africa)
The reviewed provisional consolidated condensed group results for the year ended
30 June 2011 have been prepared by the Financial Director, Mr KA Haswell, CA(SA)
and have not been audited in terms of the Companies Act (2008).
Consolidated condensed statement of comprehensive income
(Reviewed) (Audited)
Year ended 30 June
(R`000) 2011 2010
Revenue 30 203 38 151
Turnover 29 477 36 746
Profit from operations 8 872 17 750
Profit on disposal of investments and
investment property 949 2 395
Profit on disposal of investments 7 2 145
Profit on disposal of investment property 942 250
Fair value gains on investments and
investment property 4 234 1 216
Fair value (impairment)/gains on investments (61) 161
Net surplus on revaluation of investment property 4 295 1 055
Profit before net finance costs and taxation 14 055 21 361
Income from investments 48 42
Finance income 726 1 405
Finance costs (9 589) (17 969)
Share of profit from associates and joint ventures 16 422 2 327
Profit before taxation 21 662 7 166
Taxation (1 331) 1 268
Net profit for the year 20 331 8 434
Other comprehensive income - -
Total comprehensive income for the year 20 331 8 434
Total comprehensive income attributable to:
Equity shareholders of Sable Holdings Limited 20 343 8 444
Non-controlling interest (12) (10)
Earnings and diluted earnings per
ordinary share (cents) 221.7 92.0
Consolidated condensed statement of financial position
(Reviewed) (Audited)
At 30 June
(R`000) 2011 2010
Assets
Non-current assets 532 220 517 669
Investment property 273 145 274 858
Investments 253 947 233 042
Deferred taxation 106 3 869
Other non-current assets 5 022 5 900
Current assets 13 229 3 841
Cash and cash equivalents 1 196 860
Other current assets 12 033 2 981
Non-current asset held for sale - 36 000
Total assets 545 449 557 510
Equity and liabilities
Equity 400 297 379 966
Non-current liabilities 124 957 155 431
Interest-bearing borrowings 96 615 123 351
Deferred taxation 28 342 32 080
Current liabilities 20 195 22 113
Total equity and liabilities 545 449 557 510
Consolidated condensed statement of changes in equity
Share Non- Non-
capital distri- control-
and butable Retained ling Total
(R`000) premium reserves earnings interests equity
Balance at 30 June 2009 51 425 105 978 213 657 79 371 139
Total comprehensive income
for the year - - 8 444 (10) 8 434
Share of profit from associates
and joint ventures - 2 327 (2 327) - -
Realisation of non-
distributable reserves - 393 - - 393
Balance at 30 June 2010 51 425 108 698 219 774 69 379 966
Total comprehensive income
for the year - - 20 343 (12) 20 331
Share of profit from associates
and joint ventures - 16 422 (16 422) - -
Balance at 30 June 2011 51 425 125 120 223 695 57 400 297
Consolidated condensed statement of cash flows
(Reviewed) (Audited)
Year ended 30 June
(R`000) 2011 2010
Cash (outflow)/inflow from operating activities (9 193) 3 226
Cash inflow from investing activities 35 749 21 097
Cash outflow from financing activities (24 150) (9 222)
Net increase in cash and cash equivalents 2 406 15 101
Cash and cash equivalents at the beginning
of the year (1 210) (16 311)
Cash and cash equivalents at the end of the year 1 196 (1 210)
Consolidated condensed segmental analysis
(Reviewed) (Audited)
Year ended 30 June
(R`000) 2011 2010
Segmental revenue 30 203 38 151
Investment property 27 949 35 459
Commercial 5 406 6 614
Industrial 11 805 14 944
Retail 9 979 12 782
Residential 759 1 119
Corporate and inter-segment charges 2 254 2 692
Profit before taxation 21 662 7 166
Investment property 14 621 10 713
Commercial 7 468 5 425
Industrial 3 910 4 872
Retail 3 136 247
Residential 107 169
Corporate and inter-segment charges 7 041 (3 547)
Investment property 273 145 310 858
Commercial 63 901 65 951
Industrial 96 544 130 087
Retail 99 500 101 620
Residential 13 200 13 200
Reconciliation of net profit for the year to headline earnings
(Reviewed) (Audited)
Year ended 30 June
(R`000) 2011 2010
Net profit attributable to equity shareholders
of the holding company 20 343 8 444
Adjustments:
Profit on disposal of investment in subsidiary
and investment property (942) (2 354)
Fair value gains on investment property (4 295) (1 077)
Tax effects of adjustments 1 334 634
Adjustments through associates and joint ventures:
Profit on disposal of investment property (1 008) (414)
Fair value gains on investment property (14 293) (821)
Tax effects of adjustments 3 946 (47)
Headline earnings for the year 5 085 4 365
Headline earnings per ordinary share (cents) 55.4 47.6
Comments
Basis of preparation and accounting policies
The reviewed provisional consolidated condensed group results have been prepared
in accordance with the Framework concepts and the measurement and recognition
requirements of the International Financial Reporting Standards ("IFRS") and
containing information required by IAS 34 "Interim Financial Reporting" and AC
500 series as issued by the Accounting Practices Board, the JSE Limited Listings
Requirements has been consistently applied to the prior year except for the
South African Companies Act (2008) which came into effect 1 May 2011. The
accounting policies are consistent with those used in the annual financial
statements for the financial year ended 30 June 2010.
The reviewed provisional consolidated condensed group results for the year ended
have been approved by the board on 26 September 2011 and will be published on 28
September 2011.
Review opinion
The condensed consolidated group results have been reviewed by Mazars, who have
performed their review in accordance with the International Standards on
Auditing. A copy of their unqualified review report is available for inspection
at the registered office of the company.
Directors` commentary on results
Comparative analysis between 30 June 2011 (reviewed) and 30 June 2010 (audited)
The group reported a net profit of R20.3 million (2010: R8.4 million) for the
year ended 30 June 2011. Earnings per share increased by 141.1% from 92.0 cents
to 221.7 cents, with no dilution in either year, whilst headline earnings per
share increased by 16.4% from 47.6 cents to 55.4 cents per share. Net asset
value per ordinary share increased by 5.36% from 4 141 cents to 4 363 cents.
Revenue decreased by 20.83% from R38.2 million to R30.2 million. Revenue
decreased due to the sale of the Kya Sand property portfolio in October 2010.
Consolidated condensed statement of comprehensive income
Fair value gains on investments and investment property increased from R1.2
million to R4.2 million. The property yields applied to the property portfolio
remained consistent with the previous year and indicate a marginal improvement
in the underlying operational cash flow pertaining to the property portfolio.
Group finance costs, net of investment and finance income, decreased from R16.5
million to R8.8 million. The decrease in finance costs was attributable to
reduced borrowings from the disposal of the Kya Sand portfolio and overall lower
bank funding rates.
Share of profits from associates and joint ventures increased from R2.3 million
to R16.4 million. The recently upgraded retail shopping centre, Cramerview
Shopping Centre located in Bryanston, Sandton, of which Sable`s investment is
50%, was revalued to the extent of R2.8 million#. The increase is primarily
attributable to the introduction of a prominent anchor tenant and an improved
tenant mix. Sable`s 50% investment in Amrich Properties 58 as well as Sable`s
32.4% investment in the Hazeldean Retail Trust Shopping Centre, both significant
property portfolio`s within the group, returned to profitability reflecting a
R3.4 million# and R2.2 million# fair value gain respectively.
(#net of tax)
Consolidated statement of financial position as at 30 June 2011
Investment property
Analysis of investment property
2011 Number of 2010 Number of
R`000 properties R`000 properties
Carrying value at the beginning
of the year 310 858 22 357 465* 24
Additions 1 543 - 6 489 1
Disposals and transfers (43 551) (7) (54 151) (3)
Revaluations 4 295 - 1 055 -
Carrying value at the end
of the year 273 145 15 310 858 22
These balances are inclusive of the non-current asset held for sale of
R36.0 million (*2010: R7.8 million).
Investment property has reduced by a net R37.7 million primarily due to the sale
of 6 industrial warehouse parks in Kya Sand, Johannesburg, valued at R36.0
million in October 2010. In April 2011 a commercial office building located in
Woodmead, Sandton, was disposed of for R4.6 million yielding a profit on
disposal of investment property of R0.6 million.
Investments
Investments comprising of investments in listed shares, investments and
investments in associates and joint ventures increased by a net R20.9 million.
Investments in associates increased by R5.5 million through net loan funding,
R4.0 million profit from operations and R11.4 million from revaluation of
investment property (net of taxation).
Borrowings
Interest-bearing borrowings have decreased from R131.2 million to R103.9
million. Proceeds from the Kya Sand property portfolio which was sold in October
2010 for R36.0 million was used to reduce interest-bearing borrowings.
Significant current Developments and Prospects
Joint venture and associates
Sable, along with its joint venture partner, has completed a R68.0 million re-
development of Hobart Grove Retail Shopping Centre in Bryanston, Sandton, with
an indicated initial rental yield of in excess of 11%. Anchors include a
SuperSpar, Tops, La Campagnola restaurant and many other quality offerings.
Sable, along with its joint venture partner, has redeveloped Cramerview Retail
Shopping Centre. The redevelopment was completed in June 2011 and has
significantly enhanced the quality of the tenant profile and mix.
Sable, along with its joint venture partner, has purchased a commercial office
park measuring 4 200mSquared in Northcliff, Johannesburg, on a 12% initial
rental yield for R32.0 million. The park is well located and comprises 10
separate office blocks with the possibility of sectional title resale.
Sable, along with its joint venture partner Amrich Properties 58, is
investigating a R60.0 million conversion of two existing properties in Midrand,
Johannesburg, into a 7 500mSquared retail shopping centre with national anchor
and franchisee retailers. The development is subject to prerequisite leasing,
financing and town planning conditions being approved.
Sable, along with its joint venture partner, intends to formalise a R46.0
million restructure and unbundling of both industrial development land and
industrial investment property, with future development within the site
including additional mini and maxi-industrial warehousing for both resale and
further investment purposes are being planned.
Residential development in Hazeldean, Pretoria East, continues with the second
and third phases of retirement housing, assisted living apartments and
traditional family cluster units being launched. Sales in regard to these
offerings are encouraging with quality and affordability being paramount in
achieving sustained customer purchasing interest.
Wholly-owned subsidiaries
Sable has completed a further two industrial warehousing developments for resale
and investment in Laserdowns, Johannesburg, with a value of R20.0 million.
Directorate
Mr JN Snell was appointed on 26 May 2011 as a non-executive director. Mr Snell`s
knowledge of investment property coupled with his strong financial background
will complement the existing board and audit committee. The board would like to
welcome Mr Snell and wish him all the best in his new position.
Dividends
The board of directors has resolved not to declare a dividend for the year ended
30 June 2011. All cash reserves have been earmarked for funding development and
investment property opportunities within the group.
Corporate activity - ALTx board
The directors of Sable refer to the announcement on 10 March 2011 in which
shareholders were advised that the JSE has approved an application for the
transfer of Sable`s existing listing from the Main Board to the Altx Sector with
effect from the commencement of business Monday, 14 March 2011.
Related party transactions
Management fees were charged to associates and joint ventures during the period.
Events after reporting period end
Sable`s board of directors are not aware of any reportable material events that
have occurred between the end of the financial period and the date of this
report.
Going concern
The financial statements have been prepared on the going concern basis as the
directors have every reason to believe that the company has adequate resources
in place to continue in operation for the foreseeable future.
For and behalf of the board
PH Nash (Chairman)
GBJ Bowes (Managing director)
28 September 2011
Directors: PH Nash (Chairman)*, GBJ Bowes (Managing), KA Haswell (Financial), IA
Chambers*, DJ Pennington*, JN Snell* (*non-executive)
Registered office: Sable Place, Fairway Office Park, 52 Grosvenor Road,
Bryanston 2021. PO Box 786390, Sandton 2146.
Transfer secretaries: Computershare Investor Services (Proprietary) Limited, 70
Marshall Street, Johannesburg, 2001. PO Box 61051, Marshalltown 2107.
Designated advisor: Sasfin Capital - a division of Sasfin Bank Limited
Date: 28/09/2011 15:24:01 Produced by the JSE SENS Department.
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