| Thu 15 Mar 2001, 0:00 | | Sabvest Limited - Audited Results |
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Sabvest Limited
Registration number 1987/003753/06
Audited results for the year ended 31 December 2000
Income statement
for the year ended 31 December 2000
1996*1 1997*1 1998*1 1999*1 2000
R'000 R'000 R'000 R'000 R'000
Gross income
from operations and
investments 19 021 26 970 27 309 33 914 29 967
Dividends
received 6 041 9 892 8 819 5 606 4 356
Interest
received 3 957 4 402 7 527 10 653 6 832
Fees and other
income 675 1 077 1 442 4 278 1 311
Share of equity
accounted retained
income 8 348 11 599 9 521 13 377 17 468
Interest paid 7 069 5 570 3 142 8 087 9 429
Net income from
operations and
investments 11 952 21 400 24 167 25 827 20 538
Less:
Expenditure 5 932 5 258 5 529 6 303 6 206
Operating costs 5 652 4 895 5 306 5 877 5 678
Depreciation 280 363 223 426 528
Net income before
exceptional
items 6 020 16 142 18 638 19 524 14 332
Exceptional
gains/(losses) 20 069 409 (5 045) (29 525) (7 541)
- group 32 904 1 021 627 (6 623) (5 329)
- associates (12 835) (488) 1 495 (2 615) (2 634)
- amortisation of
goodwill - (124) (202) (1 335) (3 306)
- investment
impairment
provisions - - (6 965) (18 952) 3 728
Net income/(loss)
before
taxation 26 089 16 551 13 593 (10 001) 6 791
Taxation - - - - -
Net income after
taxation 26 089 16 551 13 593 (10 001) 6 791
Minority
interest 20 214 - - - -
Attributable
income 5 875 16 551 13 593 (10 001) 6 791
Headline earnings
adjustments 145 (409) 5 045 29 525 7 541
Headline
earnings 6 020 16 142 18 638 19 524 14 332
Headline earnings
per share
- cents 28,1 31,3 36,1 37,3 27,5
Earnings per share
- cents 27,4 32,1 26,3 (19,1) 13,0
Dividends per share
- cents 3,0 5,0 8,0 8,0 -
Share buy-back/buy-in
per share
- cents - - - - 10,1
Weighted average
number of shares
in issue
- 000's 21 422 51 640 51 640 52 328 52 066
Balance sheet at 31 December 2000
1996*1 1997*1 1998*1 1999*1 2000
R'000 R'000 R'000 R'000 R'000
Ordinary share
capital and
premium 57 979 57 979 57 979 59 625 54 360
Reserves 53 210 70 056 80 274 68 649 79 377
Ordinary shareholders'
equity 111 189 128 035 138 253 128 274 133 737
Interest-bearing
debt and
debentures 23 466 7 138 35 923 59 631 49 114
Accounts and dividend
payable 10 327 10 782 10 877 18 010 5 830
Total funds 144 982 145 955 185 053 205 915 188 681
Fixed assets 1 039 1 277 641 2 081 1 781
Investment
holdings 108 185 108 259 158 978 157 992 179 977
Listed 84 423 26 584 55 834 58 300 71 092
Unlisted 23 762 79 324 98 331 95 136 105 089
Net goodwill on
acquisition of
associates - 2 351 4 813 4 556 3 796
Finance advances and
receivables 34 090 35 650 25 347 43 765 5 551
Cash balances*2 1 668 769 87 2 077 1 372
Total assets 144 982 145 955 185 053 205 915 188 681
Net asset value
per share
- cents 215 248 268 245 281
Net tangible asset
value per share
- cents 215 243 258 236 273
Number of shares
in issue
- 000's*3 51 640 51 640 51 640 52 328 47 664
Summarised cash flow statement
for the year ended 31 December 2000
1999*1 2000
R'000 R'000
Cash (utilised in)/generated by
operating activities 2 439 (11 761)
Cash (utilised) for payment of dividends and
(reduction)/increase in creditors 2 892 (7 994)
Cash generated by/(utilised in) investing
activities (28 537) 34 832
Cash effects of financing activities 983 (5 265)
Change in cash and cash equivalents (22 223) 9 812
Interest-bearing debt, less cash balances,
at beginning of year (35 331) (57 554)
Interest-bearing debt, less cash balances,
at end of year (57 554) (47 742)
Exceptional items
1999*1 2000
R'000 R'000
Net loss on sale of investments (2 386) (127)
Premium on cancellation of debentures (158) -
Reduction of share capital costs (153) -
Costs arising from the delisting of Sabhold and
Merhold, and in terms of the Sabvest Share
Trust Deed (926) (3 116)
Provision against deposit at bank under
curatorship (2 000) 1 000
Provision against empowerment group guarantee (1 000) -
Write-off of debtors arising from the group's
former finance operations - (3 086)
(6 623) (5 329)
Share of associate companies exceptional
losses (2 615) (2 634)
Amortisation of goodwill (1 335) (3 306)
Investment impairment provisions (18 952) 3 728
Net exceptional losses (29 525) (7 541)
Statement of changes in equity
for the year ended 31 December 2000
Non-
Share Share distributable Distributable
capital premium reserve reserve Total
R'000 R'000 R'000 R'000 R'000
Restated opening
balance as at
01/01/99 973 57 006 31 757 48 517 138 253
Issue of 687 775
"N" ordinary
shares 1 646 1 646
Translation of
foreign subsidiary/
associates 835 835
Variation of interest
in subsidiary/
associates 1 473 1 473
Attributable income
of associates 8 013 (8 013) -
Movement on NDR
of associates 310 310
Dividends (4 242) (4 242)
Restated retained
income for the
year (10 001) (10 001)
Restated balance as
at 31/12/99 973 58 652 42 388 26 261 128 274
Translation of foreign
subsidiary/associates 4 034 4 034
Attributable income
of associates 11 153 (11 153) -
Movement on NDR of
associates (97) (97)
Retained income for
the year 6 791 6 791
Shares held in
treasury (87) (5 178) (5 265)
Balance as at
31/12/00 886 53 474 57 478 21 899 133 737
Investment profile
at 31 December 2000
Number of
shares/
Combined
Date first Listed/ units Economic
Company invested Unlisted held interest R'000
SABVEST
INDUSTRIAL 93 850
Flowmax Holdings
Limited (BVI) 1988 U 38,0%
Nutritional Foods
(Pty) Limited 1989 U 40,0%
SA Bias Industries
Limited 1988 U 50,0%
Set Point Technology
Holdings
Limited 2000 L 20 841 751 shares 12,0%
SABVEST BRANDED
DISTRIBUTION 38 899
Autoquip Group
Limited 1987 L 5 168 647 shares 35,0%
Campbell & Thiselton
Investment Holdings
(Pty) Limited 1992 U 30,0%
Midsouth Distributors
(Pty) Limited 1997 U 30,0%
Natural Health
Holdings
Limited 1998 L 57 402 716 shares 35,0%
SABVEST MEDIA,
IT AND HR 47 228
Primedia
Limited 1993 L 2 616 876 units 1,2%*4
Datatec Limited 1988 L 300 000 shares 0,2%
Korbitec Holdings
(Pty) Limited 1999 U 10,1%*5
Metropolis* Transactive
Holdings
Limited 1998 L 4 436 100 shares 4,0%
Learning Resources
(Pty) Limited 1997 U 30,0%
Privest Group
Limited 1999 L 15 131 070 shares 9,7%
TOTAL INVESTMENTS PER
BALANCE SHEET 179 977
Notes
*1 Restated to comply with change in accounting policy as described in
commentary
*2 Bank balances include R1,279 million with a bank under curatorship, which is
the net balance after deducting the provision of R1 million
*3 A subsidiary of Sabvest holds 1 704 200 ordinary shares and 2 959 800 "N"
ordinary shares in Sabvest Limited in treasury at a combined cost of R5,3
million
*4 Voting interest 3,1%, part of voting control pool
*5 Effective indirect interest
Commentary
Profile
Sabvest is a holding company with significant minority or joint controlling
interests in seven listed and seven unlisted companies on all of whose boards
Sabvest is represented.
Sabvest's ordinary and "N" ordinary shares are listed in the Diversified
Industrial sector of the JSE Securities Exchange South Africa ("JSE").
Accounting policy
The group has changed its accounting policy to comply with AC110 Revised and
has restated its comparative figures for 1996-1999 accordingly. Previously the
group recorded movements in market values of its listed investments through a
revaluation reserve and in the statement of changes in equity. The effect of
the change is that the group will no longer record revaluations of investments
in its reserves and statement of changes in equity. Goodwill in associates will
be recognised on acquisition and impairments to investment values and goodwill
amortisation will be accounted for annually in the income statement.
Financial results
Headline earnings decreased by 26% to 27,5 cents per share as projected in the
interim results statements. This reduction was a result of lower income
receipts from the group's corporate and consulting activities, poorer than
expected results from Autoquip, Primedia and Privest and higher interest
payments. However, particularly good performances were achieved by SA Bias,
Flowmax, Nutritional Foods and Learning Resources.
Once additional investments have been sold, the group's interest-bearing debt
will reduce further with a resultant drop in interest payments.
Changes in investment holdings
The group has:
- disposed of its interests in Conlog Holdings Limited, Teklab (Pty) Limited
and Meshcape Industries (Pty) Limited;
- permitted the dilution of its interests in Flowmax Holdings Limited to 38%
and Autoquip Group Limited to 35%;
- increased its investments in:
- Campbell & Thiselton Investment Holdings (Pty) Limited to 30%;
- Natural Health Holdings Limited to 57,4 million shares representing 35% of
its equity;
- Privest Group Limited to 15,1 million shares representing 10% of its equity;
and
- acquired a new interest of 20,8 million shares in Set Point Technology
Holdings Limited representing 12% of its equity.
Share buy-backs and dividends
The company's dividend policy is that dividend levels may vary depending on the
group's cash requirements for investments and the extent of any share
buy-backs. During the current year one of the company's subsidiaries acquired 1
704 200 ordinary and 2 959 800 "N" ordinary shares through the market for a
consideration of R5,3 million. As a consequence, the company will not declare
any dividend for the 2000 financial year.
Exceptional items
As anticipated in the previous year's annual report, the remaining receivables
arising from the group's former finance operations have been written off in
full at the year-end. A final write-off has also been made of all share trust
amounts due to the group that are not represented by shares at current market
prices or loans receivable.
Re-organisation
The group has obtained approval from the Commissioner for Inland Revenue to
implement a re-organisation in terms of Section 39 of the Taxation Laws
Amendment Act 1994 which will enable the group to reduce the number of its
subsidiaries and the efficiency of its corporate structure. Most of the costs
relating to this exercise have been expensed in the 2000 financial year.
STRATE
The JSE has informed the company that electronic settlement of its shares held
in custody via the Share TRAnsactions Totally Electronic ("STRATE") system will
commence as from 28 May 2001. Trading for electronic settlement will commence
on 18 June 2001. The first electronic settlement will take place on 25 June
2001. Shareholders are advised to acquaint themselves with the requirements and
implications of this change and to consult their stockbroker, advisor or the
company for assistance.
Relevant information pertaining to the implementation of STRATE, a CSDP Mandate
Form and a Form of Surrender will be mailed to shareholders together with the
annual report during April 2001.
Prospects
The group intends to focus on fewer holdings and in cash generative companies,
and these requirements will determine the investments to be retained by the
group.
Most of the companies in which the group is invested are budgeting improved
profitability in the coming year which should impact favourably on Sabvest's
results once the group's interest payable has been reduced.
Christopher Seabrooke Philip Coutts-Trotter Sandton
Executive Chairman Deputy Chairman 16 March 2001
Registered address: 46A Wierda Road West, Wierda Valley, Sandton 2196
Communications: Postal address: PO Box 78677, Sandton 2146, Republic of South
Africa.
Telephone: (011) 784 7932
Fax: (011) 784 7941
E-mail: ho@sabvest.co.za
Directors: CS Seabrooke* (Chairman), P Coutts-Trotter (Deputy Chairman),
HHabib, NSH Hughes, GE Nel, P Pencharz, R Pleaner*, RS Price
*Executive
