| Tue 13 Mar 2001, 0:00 | | Capestar Interim Report |
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CAPESTAR GROWTH INVESTMENTS LIMITED
("CapeStar") (formerly Towles Edgar Jacobs Limited)
INTERIM REPORT AT 31 DECEMBER 2000
Income Statements
6 months to 6 months to
31 Dec 2000 31 Dec 1999
Reviewed Unaudited
Notes R000's R000's
Income before taxation 2 370 15 740
Taxation 195 474
Income after taxation 2 175 15 266
Share of retained income of associate companies 148 807
Earnings attributable to ordinary shareholders 2 323 16 073
Headline earnings per ordinary share (cents) 6,52 15,27
Earnings on investment disposals (cents) 9,95 112,98
Earnings per ordinary share (cents) 16,47 128,25
Earnings per share on a fully diluted basis (cents) 16,47 124,40
Number of shares issued:
- ordinary shares of 50c each 14 106 671 12 532 294
- convertible preference shares of 0,1c each 1 982 158 1 910 646
Balance Sheets
Capital employed
Shareholders' interest 38 745 88 990
Employment of capital
Fixed assets 2 82
Investments in associate companies 2 2 133 6 326
Loans to associate companies 3 245 8 222
Net current assets 33 365 74 360
Cash and short-term deposits 18 844 35 625
Debtors 15 110 40 699
Creditors (589) 1 964
38 745 889 990
Notes
1. Convertible preference shares
Based on the closing CapeStar share price on 29 December 2000 of R2,35 (1999:
R5,15), and the existing preference share conversion mechanism, these would
convert into nil (1999: 387 621) ordinary shares at 31 December 2000.
2. Associate companies
These represent all of CapeStar's investee companies which have been accounted
for under the equity method.
Shares at cost 1 916 9 695
Share of post-acquisition retained income 1 230 1 462
General realisation provision (1 013) (4 831)
Carrying value of associate companies 2 133 6 326
3. Net asset value
The net asset value per CapeStar share, after the cash distribution of R4,25
per share effected in January 2000 is calculated as follows:
Shareholders' interest 39 745 88 990
Less cash distribution - (53 288)
Net asset value remaining 39 745 35 702
Fully diluted ordinary shares in issue 14 106 671 12 919 915
Net asset value per share (cents) 274,06 276,33
4. Statement of changes in equity
Equity at beginning of period 36 422 72 917
Net income for period 2 323 16 073
Equity at end of period 38 745 88 990
5. Consolidated cash flow statement for six months ended 31 December 2000
Inflows from operating activities 2 323
Sale of fixed assets 49
Reduction in interest in associates 2 830
Reduction in working capital 2 060
Net increase in cash 7 262
Cash at beginning of period 11 582
Cash at end of period 18 844
Overview
Reasonable progress has been made during the period under review towards
implementing the stated policy of the realisation of CapeStar's portfolio of
investments and assets and their conversion into cash.
a) In this respect, an early settlement of the outstanding capital value of the
Africa Group/Bestman Investments deferred disposal consideration of R1,2
million was negotiated and collected.
b) Pursuant to the ordinary shareholders approval of the TEJ disposal
transaction on 4 September 2000, the following assets were realised. The A
Greenwood R300 000 deferred disposal consideration, the outstanding TEJ
shareholder loan of R4,336 million and the TEJ disposal consideration of R2,083
million owing by Texel International Ltd.
c) With effect from 1 December 2000, CapeStar successfully concluded the
disposal of its investments and loans in Popufin and Popufin Direct to the
Vantaris Capital Fund for an aggregate consideration of R4,6 million, thereby
generating a capital profit of R2,492 million on the original investment.
REMAINING UNREALISED PORTFOLIO INVESTMENTS
Amalda Trading (Pty) Ltd. (trading as Peoples Furnishers)
Despite a depressed retail environment, Peoples Furnishers have managed to
maintain last year's turnover levels albeit at lower margins, largely a result
of introducing more differentiated cash related products to its primary credit
products.
Wasteman Warranty Escrow
As part of the disposal of CapeStar's investment in Wasteman to Aurore
Limited/LMR s.a.r.l., R7 million of the proceeds were placed into an interest
bearing warranty escrow account, and has since been received.
Repatriate Investments (Pty) Ltd.
Repatriate is the special purpose vehicle utilised to fund the acquisition of
the Sonn Consortium's investment into CapeStar. Subsequent to the year end,
this structure was collapsed and it is now a wholly owned subsidiary of
CapeStar.
PROSPECTS
At the date of this announcement one asset remains unrealised. It is the
intention of your Directors to make an interim cash distribution carry in the
second quarter. The total distribution after disposing of the unrealised asset
and allowing for tax and other costs is not anticipated to be less than R2,60 a
share.
On behalf of the Board:
F A Sonn (Chairman)
N O Davies (Chief Executive Officer)
Cape Town
13 March 2001
Transfer Secretaries Registered Office
Mercantile Registrars c/o Brait
10th Floor 9 Fricker Road
11 Diagonal Street Illovo, Sandton
Johannesburg, 2000 2196
Directors: F A Sonn (Chairman), A C Ball, N O Davies, H J Terreblanche, P G A
Wrighton
