| Tue 6 Mar 2001, 0:00 | | Chester - Abridged Audited Results For Year Ended |
|
CHESTER INVESTMENT HOLDINGS LIMITED
(Chester)
(Registration Number 1983/005300/06)
Abridged audited results for the year ended 31 December 2000
CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2000
2000 1999
Net operating income 4,502 7,359
Attributable share of income
of associates 10,759 3,453
- Recurring retained equity earnings 8,144 1,725
- Dividends received 2,615 1,728
Net operating income
before taxation 15,261 10,812
Taxation 1,349 2,336
Investment surplus/(loss) 8,451 (6,328)
Retained income for the year 22,363 2,148
Number of shares in issue (000) 148,417 174,031
Weighted average shares in issue (000) 166,262 174,031
Earnings per share (cents) 13,5 1,2
Headline earnings per share (cents) 8,4 4,9
Net asset value per share - see comments 85,6 75,2
CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2000
2000 1999
ASSETS
Non-Current Assets 73,821 76,986
Investments 72,322 75,449
Equipment 84 122
Chester Share Incentive Trust 1,415 1,415
Current Assets 67,467 53,465
Accounts and loans receivable 24,147 3,807
Prepaid taxation 865 315
Bank balances and call deposits 42,455 49,343
Total Assets 141,288 130,451
EQUITY AND LIABILITIES
Capital and Reserves 141,101 130,387
Issued share capital and premium 38,222 49,871
Reserves 102,879 80,516
Current Liabilities 187 64
Accounts payable 95 64
Taxation payable 92 -
Total equity and liabilities 141,288 130,451
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2000
2000 1999
R'000 R'000
OPERATING ACTIVITIES 1,337 540
Cash utilised by operations (5,881) (3,745)
Investment income 9,025 10,296
Taxation paid (1,807) (6,011)
INVESTING ACTIVITIES 3,424 7,975
Disposal of investments 4,547 22,000
Additions to investments (1,122) (14,020)
Loan to Chester Share Incentive Trust - (6)
Acquisition of fixed assets (1) 1
FINANCING ACTIVITIES (11,649) -
Repurchase of shares
NET MOVEMENT IN CASH RESOURCES (6,888) 8,515
CASH RESOURCES AT BEGINNING OF YEAR 49,343 40,828
CASH RESOURCES AT END OF YEAR 42,445 49,343
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2000
Share Share Non- Distribu- Total
Capital premium distribu- table
Table reserves
R'000 R'000 R'000 R'000 R'000
Balance at
1 January
1999 17,403 32,468 67,464 10,904 128,239
Transfer - - (67,464) 67,464 -
Net income - - - 2,148 2,148
Balance at
31 December
1999 17,403 32,468 - 80,516 130,387
Share
Repurchase (2,561) (9,088) - - (11,649)
Net income - - - 22,363 22,363
Balance at
31 December
2000 14,842 23,380 - 102,879 141,101
Comments
Significant improvement in recurring income from associates
Chester continued to implement its strategy of disposing of unlisted
investments and focusing attention on its major investments, namely the listed
companies Brandcorp Holdings Ltd (Brandcorp) and Chet Industries Ltd (Chet).
The board is delighted with the progress of this strategy and the impact that
is already evident in this set of results.
A more than three-fold increase in recurring income from associates is
reported, reflecting the significant improvements in the underlying businesses.
Dividends received increased by over 50%, indicating the improved cash flows of
these operations.
Net income before taxation for an investment company generally reflects the
interest earned on cash balances, net of operating expenses. The average
interest rate for the 2000 financial year was significantly lower when compared
to the prior year. Cash balances during the year also fell somewhat, inter alia
as a result of the share buy-back programme.
The investments in Electronic Retail TV (Pty) Ltd, Van Reenen Steel (Pty) Ltd,
MLA Power Systems (Pty) Ltd and other minor investments were sold during the
course of the year. The impact of these is reflected by an investment surplus
of over R8,4 million over book value. The book values were reduced last year by
the attributable goodwill paid for the investments.
Headline EPS and NAV per share reflect improvements in the underlying
investments
Headline earnings per share, which excludes the investment surplus increased
from 4,9 cents per share (cps) to 8,4cps. The net asset value per share
increased by 13,8% from 75,2cps to 85,6cps over the prior year.
The investment portfolio at 31 December 2000 comprised the following:-
Brandcorp - 31,3% equity interest
Chet - 34,4% equity interest
Polo Group - 36,5% effective interest
Medical Distributors (Pty) Ltd - 31% equity interest
Santronics SA (Pty) Ltd - 27,3% equity interest
The current net asset value per Chester share is as follows:-
2000 Cents 1999 Cents
R'000 per R'000 per
Share Share
Listed investments 47,885 32,2 39,045 22,4
Unlisted investments 10,400 7,0 36,810 21,2
Receivables 24,147 16,3 - -
Cash balances 42,455 28,6 49,343 28,4
Other 2,177 1,5 5,595 3,2
R127,064 85,6 R130,793 75,2
Listed investments are valued at market prices at the date of this report and
unlisted investments are at directors' valuation.
The balance sheet remains strong, with cash balances in excess of R42 million.
These cash balances will increase as the final proceeds from the disposals are
received. Some of these balances may be used for any increases in our interests
Chet and Brandcorp.
Subsequent to year-end, a further 14,5% interest in Chet was acquired, and
Chester is currently making a mandatory offer to minority shareholders of Chet,
at 22c per share. As this is likely to increase Chester's stake in Chet to more
than 50%, Chester will in future fully consolidate the results of Chet.
Your board has decided not to declare a dividend in respect of the 2000
financial year. However, as our investments are moving into a cash generating
phase, it is anticipated that dividends will be declared in future years.
Chester will continue to focus its efforts on its two listed investments.
The accounting policies employed in these financial statements are consistent
with those of the prior years, and are in accordance with Generally Accepted
Accounting Practices.
By order of the board
M.Z. Levine, Chairman
L. Freidus, Managing Director
7 March 2001
Directors: M.Z. Levine (Chairman), L. Freidus (Managing),
C.S. dos Santos (non-executive), L. Levine (non-executive)
Registered office: 2nd Floor Thrupps Illovo Centre, Oxford Road, Illovo,
Johannesburg
Tel: (011) 442-4571 Fax: (011) 442-3126 Email: lewisf@chesterfin.co.za
