| Mon 6 Feb 2012, 17:45 | | CPN - Capricorn Investment Holdings Limited - Reviewed results for the six- |
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CPN
CPN
CPN - Capricorn Investment Holdings Limited - Reviewed results for the six-
months ended 31 August 2011
CAPRICORN INVESTMENT HOLDINGS LIMITED
(formerly Cenmag Holdings Limited)
(Registration Number 1987/004821/06)
("Capricorn" or "the company")
Share code: CPN ISIN: ZAE000149951
REVIEWED RESULTS FOR THE SIX-MONTHS ENDED 31 AUGUST 2011
CONDENSED STATEMENT OF FINANCIAL POSITION
Reviewed Unaudited Audited
Company Group Company
31-Aug-11 31-Aug-10 28-Feb-
11
ASSETS R`000 R`000 R`000
Non-current assets 10 7 442 15
Fixed assets - 7 175 -
Deferred tax 10 267 15
Current assets 5 778 13 641 5 751
Total assets 5 788 21 083 5 766
EQUITY AND LIABILITIES
Share Capital and reserves 5 678 17 276 5 638
Non-controlling interest - 496 -
Interest-free liabilities - 3 311 128
Current liabilities 110 3 311 128
Total equity and liabilities 5 788 21 083 5 766
Number of shares in issue 59 886 96 000 59 886
(000`s)*
Net asset value per share
information
Net asset value per share 9.48 18.51 9.41
(cents)
Net tangible asset value per 9.48 18.51 9.41
share (cents)
* The authorised and issue share capital of the company was sub-divided on
the basis of 10:1 on 15 November 2010.
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
Reviewed Unaudited Audited
Company Group Company
31-Aug-11 31-Aug-10 28-Feb-11
R`000 R`000 R`000
Gross revenue - 20 062 -
Cost of sales - (13 678) -
Gross profit - 6 384 -
Operating costs (100) (4 773) (1 097)
Depreciation - (232) -
Operating (loss)/profit (100) 1 379 (1 097)
Finance income 118 132 45
Gain/(Loss) on sale of investments 9 - (1 081)
in subsidiary companies
Dividends received - - 6 730
Profit before tax 26 1 511 4 597
Taxation 14 (519) (31)
Profit after tax 40 992 4 566
Non-controlling interest - 14 -
Profit attributable to 40 978 4 566
shareholders of the company
Headline earnings 31 978 5 647
Earnings per share information
Number of shares in issue (000`s)* 59 886 96 000 85 611
Attributable earnings per share 0.07 1.02 5.33
(cents)
Headline earnings per share 0.05 1.02 6.60
(cents)
* The authorised and issue share capital of the company was sub-divided on
the basis of 10:1 on 15 November 2010.
CONDENSED STATEMENT OF CASH FLOWS
Group Group Company
Reviewed Unaudited Audited
6 Months 6 Months Year ended
ended ended
31-Aug-11 31-Aug-10 28-Feb-11
R`000 R`000 R`000
Cash flows from operating 10 103 4 321
activities
Cash flows from investing 9 - -
activities
Net increase in cash and cash 19 103 4 321
equivalents
Cash at beginning of period 5 751 8 266 1 430
Cash at the end of period 5 770 8 369 5 751
CONDENSED STATEMENT OF CHANGES IN EQUITY - COMPANY
Share Share Retained Total
capital premium income
R`000 R`000 R`000 R`000
Balance at 1 March 2010 96 7 581 (2 511) 5 166
Net profit for the year - - 4 566 4 566
Share repurchase (34) (4 060) - (4 094)
Balance at 1 March 2011 62 3 521 2 055 5 638
Net profit for the period - - 40 40
Balance at 31 August 2011 62 3 521 2 095 5 678
SEGMENTAL REPORTING
Reviewed Unaudited Audited
Company Group Company
31 August 31 August 2010 28 February
2011 2011
Revenue
Manufacturing and service - 10 107 -
Wholesaling - 9 955 -
Total - 20 062 -
Profit from operating
activities
Manufacturing and service - 1 192 -
Wholesaling - 186
Total - 1 378 -
RECONCILIATION OF HEADLINE
EARNINGS
Profit attributable to 40 978 4 566
shareholders of the company
Adjustments for:
(Gain)/Loss on sale of (9) - 1 081
investments in subsidiary
companies
Headline earnings 31 978 5 647
COMMENTARY
RESULTS
The board of directors presents the reviewed results of the company for the six-
month period ended 31 August 2011 in accordance with IAS 34: Interim Financial
Reporting. The company was previously an investment holding company and its
subsidiary companies were engaged in the manufacture and servicing of
electromagnets and motor rewinding and the wholesaling of electrical and related
equipment, which subsidiary companies were disposed during 2010. Accordingly,
the company became a cash shell with effect from 20 December 2010 and no longer
has any subsidiary companies. Therefore, company results are presented at 31
August 2011 and 28 February 2011 as opposed to group results for the six-month
period ended 31 August 2010.
ACCOUNTING POLICIES
The interim financial statements have been prepared in accordance with IAS 34 -
Interim Financial Reporting in accordance with the accounting policies that
comply with International Financial Reporting Standards and in the manner
required by the Companies Act (71 of 2008) and the Listing Requirements of the
JSE Limited (the "JSE Listings Requirements"). The principle accounting policies
adopted in preparation of these financial statements are consistent with those
of the prior period. The results have been reviewed by the external auditor,
Horwath Leveton Boner. Their review opinion was not modified and is available
for inspection at the company`s registered office.
BUSINESS OVERVIEW
Given that the Capricorn`s subsidiary companies were sold in the prior period
and the company is a cash shell in terms of the JSE Listings Requirements, no
revenue was generated nor growth experienced during this interim period.
Headline earnings decreased significantly due to the inactivity of the company
during the period.
SUBSEQUENT EVENTS AND FUTURE PROSPECTS
As announced on 15 December 2011 and detailed in the results announcement on 28
December 2011, shareholders were advised of the proposed acquisition of Western
Utilities Corporation (Proprietary) Limited ("WUC"), a wholly-owned subsidiary
of Water Utilities Limited, which in turn is a wholly owned subsidiary of
Watermark Global Plc (together "Watermark") for a purchase consideration of
GBP4.50 million which consideration is payable partly in shares and partly with
cash. WUC has procured a water treatment technology and commercialisation entity
which has developed a Long Term Self Sustainable Solution for Acid Mine Drainage
("AMD") in South Africa. WUC has also developed proprietary technology in
respect of a coal briquetting project ("Briquetting Project"). The Briquetting
Project is currently in the development stage of its lifecycle but is expected
to be in production within 12 months. Off-take agreements are already in place
in order to secure the income streams of the Coal Briquetting project.
As previously announced, a circular to Capricorn shareholders including all the
details of the proposed acquisition, waiver of mandatory offer and revised
listing particulars will be posted in due course.
SHARE CAPITAL
During the period under review no new shares were issued or repurchased. The
authorised share capital of the company consists of 1 000 000 000 ordinary
shares while the issued share capital of the company consists of 59 886 020
ordinary shares.
DIRECTORS
During the period under review, Mr C Pettit was appointed to the board as an
independent non-executive director. His appointment took effect on 19 July
2011. Pursuant to the negotiations with WUC, his role has changed to that of a
non-executive director.
DIVIDENDS
No dividends were recommended or declared for the interim period.
ACQUISITIONS AND DISPOSALS
Other than as disclosed under subsequent events above, there were no
acquisitions or disposals during the six months under review.
For and on behalf of the board
6 February 2012
Johannesburg
B McQueen Prepared by: J Herbst
Directors: B McQueen* (Chairman), J Herbst (Chief Executive Officer), S Tredoux
(Financial Director), K Jarvis*, E GreenblattN, C PettitN (*Independent Non-
Executives, NNon-executive)
Company Secretary: Arcay Client Support (Proprietary) Limited
Registered Office: Number 3, Anerley Road, Parktown, Johannesburg
Transfer Secretaries: Computershare Investor Services (Proprietary) Limited, 70
Marshall Street, Marshalltown 2001, PO Box 61051, Marshalltown 2107
Auditors:Horwath Leveton Boner
Sponsor: Arcay Moela Sponsors (Proprietary) Limited
Date: 06/02/2012 17:45:01 Produced by the JSE SENS Department.
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