| Mon 27 Feb 2012, 17:25 | | GPL - Grand Parade Investments Limited - Unaudited Interim Results for the six |
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GPL
GPL
GPL - Grand Parade Investments Limited - Unaudited Interim Results for the six
months ended 31 December 2011
GRAND PARADE INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1997/003548/06
Share code: GPL
ISIN: ZAE000119814
Grand Parade Investments Limited
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2011
Highlights
- Restructuring with SUI completed;
- Special dividend of 60 cents per share paid subsequent to December 2011;
- Increase in LPM slots operating contribution by 62.1%;
- Increase in LPM slots business Gross Gaming Revenue by 25%; and
- Increase in HEPS by 71.9%, which resulted in an increase in adjusted HEPS by
17.7%
Condensed group statement of comprehensive income
Unaudited Unaudited Audited
31 Dec 31 Dec 30 June
2011 2010 2011
Notes R`000s R`000s R`000s
Revenue 1 218 649 160 184 326 442
Cost of sales 2 (114 518) (91 394) (184 343)
Gross profit 104 131 68 790 142 099
Operating costs (57 947) (40 169) (88 378)
Profit from operations 46 184 28 621 53 721
Profit from equity-accounted
investments 3 76 530 61 272 119 566
Profit from jointly-controlled
entities 75 047 42 764 88 643
Profit from associates 1 483 18 508 30 923
Profit on disposal of
investments 4 60 239 - -
Realisation of fair value
reserve 5 35 588 - -
Reversal of impairment of
investment in
jointly-controlled entity 6 336 - 15 000
Impairment of investment in
jointly-controlled entity - (32 838) (32 839)
Impairment of investment in
associate - - (95 646)
Depreciation and amortisation (18 342) (14 265) (36 010)
Profit before finance costs and
taxation 200 535 42 790 23 792
Finance income 736 1 018 1 745
Finance costs 7 (15 595) (17 932) (32 916)
Profit/(loss) before taxation 185 676 25 876 (7 379)
Taxation 8 (4 214) (3 773) (15 292)
Profit/(loss) for the period 181 462 22 103 (22 671)
Other comprehensive income/ (loss)
Realisation of fair value reserve (35 588) - -
Change in reserves of
associated companies, net of tax - 15 552 13 197
Unrealised fair value gains/
(losses) on available-for-sale
investments, net of tax (4 193) (1 532) (4 491)
Total comprehensive
income/(loss) for the period 141 681 36 123 (13 965)
Profit/(loss) for the period
attributable to:
- Ordinary shareholders 181 462 21 980 (22 671)
- Non-controlling interest - 123 -
181 462 22 103 (22 671)
Total comprehensive
profit/(loss) attributable to:
- Ordinary shareholders 141 681 36 000 (13 965)
- Non-controlling interest - 123 -
141 681 36 123 (13 965)
Basic and diluted
earnings/(loss) per share (cents) 38.57 4.78 (4.89)
Headline and diluted headline
earnings per share (cents) 9 19.87 11.56 19.13
Adjusted and diluted adjusted
headline earnings per share (cents)9 14.12 12.00 22.38
Dividends per share (cents)* 10.00 7.50 7.50
* Final dividend declared in respect of the previous financial year and paid in
December.
Headline earnings reconciliation
Profit/(loss) attributable to ordinary
shareholders 181 462 21 980 (22 671)
Impairment of investment in jointly-
controlled entity - 32 838 32 839
Reversal of impairment of investment in
jointly-controlled entity (336) - (15 000)
Impairment of investment in associate - - 95 646
Profit on disposal of investments (60 239) - (151)
Realisation of fair value reserve (35 588) - -
Loss on sale of property, plant and
equipment 145 131 759
Adjustments by jointly-controlled entities - - 412
- Loss on disposal of plant and
equipment - - 412
Adjustments by associates - (1 526) (2 855)
- Profit on sale of investments - (1 526) (868)
- Realised investment profits - - (1 987)
Tax effect on above 8 036 - (285)
Headline earnings 93 480 53 423 88 694
Reversal of employee share trust (200) (7) 751
Preference share early redemption fee 2 100 - -
Change in intended recovery of jointly-
controlled entity (10 918) - 10 918
Reversal of cancellation fees (32 271) - -
Reversal of transaction costs 13 907 1 349 2 133
Adjusted headline earnings 66 098 54 765 102 496
Reconciliation of shares
Shares in issue (before deducting
treasury shares) (000`s) 470 459 462 331 470 459
Shares in issue (after deducting treasury
shares) (000`s) 468 239 456 511 468 239
Weighted average number of shares in
issue (000`s) 470 459 462 331 463 757
Adjusted weighted average number of
shares in issue (000`s) 468 239 456 511 457 937
Condensed group statement of financial position
Unaudited Unaudited Audited
31 Dec 31 Dec 30 June
2011 2010 2011
Notes R`000s R`000s R`000s
ASSETS
Non-current assets 1 360 037 2 142 364 1 631 715
Non-current asset held for sale 10 - - 451 000
Current assets 11 741 217 85 471 112 179
Total assets 2 101 254 2 227 835 2 194 894
EQUITY AND LIABILITIES
Total equity 1 851 649 1 774 265 1 756 792
Shareholders` interest 1 851 649 1 769 164 1 756 792
Non-controlling interest - 5 101 -
Non-current liabilities
- Deferred tax liabilities 11 640 1 360 23 618
- Cumulative redeemable preference
shares 12 131 235 219 243 193 157
- Interest-bearing borrowings 12 40 000 96 000 88 000
- Provisions 156 109 126
- Finance lease liabilities 1 260 1 688 1 500
Current liabilities 13 65 314 135 170 131 701
Total equity and liabilities 2 101 254 2 227 835 2 194 894
Net asset value per share (before
deducting treasury shares) (cents) 394 383 373
Adjusted net asset value per
share (after deducting treasury shares)
(cents) 396 388 375
Tangible net asset value per
share (cents) 356 351 347
Adjusted tangible net asset value
per share (cents) 358 355 349
Condensed group statement of cash flows
Unaudited Unaudited Audited
31 Dec 31 Dec 30 June
2011 2010 2011
R`000s R`000s R`000s
Cash flows from operating activities
Profit/(loss) before taxation 185 676 25 876 (7 379)
Non cash flow items:
- Depreciation and amortisation 18 342 14 265 36 010
- Impairment of investment in jointly-
controlled entity - 32 838 32 839
- Impairment of investment in associate - - 95 646
- Reversal of impairment of investment in
jointly-controlled entity (336) - (15 000)
-Profit from equity-accounted
investments (76 530) (61 272) (119 566)
-Loss on sale of property, plant and
equipment 145 131 759
- Profit on disposal of investments (60 239) - (151)
- Realisation of fair value reserve (35 588) - -
Finance costs per the statement of
comprehensive income 15 595 17 932 32 916
Finance income per the statement of
comprehensive income - investments (2 322) (965) (1 660)
Finance income per the statement of
comprehensive income - operations (736) (1 018) (1 745)
Dividends received per the statement of
comprehensive income - investments (18 391) (1 355) (2 009)
Net working capital changes (11 696) (33 451) (28 491)
Income tax paid (11 076) (5 575) (11 907)
Finance income - operations 736 1 018 1 745
Net cash inflows/outflows from
operating activities 3 580 (11 576) 12 007
Acquisition of plant and equipment (18 989) (15 476) (28 299)
Acquisition of intangible assets (2 707) (205) (2 577)
Net investments made - (32 838) (32 839)
Proceeds from the disposal of investments 733 589 - -
Net cash paid for business combination - - (5 976)
Proceeds from the sale of property, plant
and equipment 73 10 127
Dividends received - group 144 193 77 614 143 683
Finance income-investments 2 322 965 1 660
Net cash inflows from investing
activities 858 481 30 070 75 779
Finance costs paid (15 595) (17 932) (28 304)
Repayment of interest-bearing borrowings (48 000) (8 000) (16 479)
(Repayment)/increase in finance lease
liabilities (91) 2 469 2 915
Share issue expenses paid - - (33)
Ordinary dividends paid (43 891) (32 270) (33 666)
Preference shares redeemed (125 726) - (24 163)
Net cash outflows from financing
activities (233 303) (55 733) (99 730)
Net increase/(decrease) in cash and
cash equivalents 628 758 (37 239) (11 944)
Cash and cash equivalents at
beginning of period 69 248 81 192 81 192
Cash and cash equivalents at end of period 698 006 43 953 69 248
Group statement of changes in equity
Capital
redemption Ordinary
reserve share Share Treasury
fund capital premium shares
R`000s R`000s R`000s R`000s
Balance at 30 June 2010 277 115 727 186 (11 669)
Total comprehensive income
for the period - - - -
Ordinary dividends paid - - - -
Balance at 31 December 2010 277 115 727 186 (11 669)
Total comprehensive loss for
the period - - - -
Treasury shares issued - - 3 726 7 218
Share issue expenses - - (33) -
Share capital raised - 2 23 168 -
Transfer to capital
redemption reserve fund 24 - - -
Acquisition of
non-controlling interest - - - -
Balance at 30 June 2011 301 117 754 047 (4 451)
Total comprehensive income
for the period - - - -
Ordinary dividends paid - - - -
Balance at 31 December 2011 301 117 754 047 (4 451)
Available-
for-sale Non- Accu-
fair value controlling mulated
reserve interest profits Total
R`000s R`000s R`000s R`000s
Balance at 30 June 2010 40 690 4 978 1 010 803 1 772 380
Total comprehensive
income for the period 14 020 123 21 980 36 123
Ordinary dividends paid - - (34 238) (34 238)
Balance at 31 December
2010 54 710 5 101 998 545 1 774 265
Total comprehensive
loss for the period (5 314) (31) (44 743) (50 088)
Treasury shares issued - - - 10 944
Share issue expenses - - - (33)
Share capital raised - - - 23 170
Transfer to capital
redemption reserve fund - - (24) -
Acquisition of
non-controlling interest - (5 070) 3 604 (1 466)
Balance at 30 June 2011 49 396 - 957 382 1 756 792
Total comprehensive
income for the period (39 781) - 181 462 141 681
Ordinary dividends paid - - (46 824) (46 824)
Balance at 31 December
2011 9 615 - 1 092 020 1 851 649
Segmental analysis
IFRS 8: Operating Segments require a "management approach" whereby segment
information is presented on the same basis as that used for internal reporting
purposes to the chief operating decision maker/s who have been identified as the
Board of directors. With the acquisition of the Limited Payout Slot Machine
business ("LPM") the Group now reports to the Board of directors in respect of
its fully controlled assets, jointly-controlled entities and associates. Listed
below is a detailed analysis:
Unaudited Unaudited Audited
31 Dec 31 Dec 30 June
2011 2010 2011
R`000s R`000s R`000s
Fully controlled assets
Operations 18 798 8 550 6 866
- Gross profit 79 917 64 204 131 850
- Operating costs (58 364) (50 907) (116 942)
- Finance costs (2 755) (4 747) (8 042)
Investments (30 618) (16 711) (32 320)
- Operating costs (17 778) (3 526) (7 446)
- Finance costs (12 840) (13 185) (24 874)
Other # 28 770 435 (5 418)
Jointly-controlled entities 75 047 42 764 88 643
SunWest 14 610 37 003 77 048
- GrandWest 24 715 43 984 90 570
- Table Bay Hotel (10 105) (6 981) (13 522)
Western Cape Manco 60 437 5 761 11 595
Associates 1 483 18 508 30 923
- RAH - 17 009 25 773
- Akhona GPI 1 483 1 499 5 150
Headline earnings 93 480 53 546 88 694
Reversal of employee share trust (200) (7) 751
Reversal of cancellation fees (32 271)
Reversal of transaction costs* 13 907 1 349 2 133
Change in intended recovery of
jointly-controlled entity (10 918) - 10 918
Preference share early redemption fee 2 100 - -
Non-controlling interest - (123) -
Adjusted headline earnings 66 098 54 765 102 496
# Other includes dividends and interest received, other revenue, tax paid and
adjustments to headline earnings.
* Transaction costs include the transaction costs expensed as part of the
operating costs and the finance costs.
Accounting policies and basis of preparation
The interim financial statements have been prepared in accordance with
International Financial Reporting Standards ("IFRS"), AC 500 and comply with IAS
34 - Interim Financial Reporting and the Companies Act of South Africa, No. 71
of 2008, as amended. The interim report has not been audited and therefore no
review opinion has been obtained. The accounting policies and methods of
computation are consistent with those applied in the financial results for the
year ended 30 June 2011.
Notes to the financial statements
1. Revenue
Revenue comprises Gross Gaming Revenue ("GGR") from GPI`s LPM business,
dividends received from National Casino Resort Manco (Proprietary) Limited
("National Manco") and Real Africa Holdings Limited ("RAH") and interest earned
on positive cash balances.
GGR is the term used for the net revenue generated by an LPM from the amount of
cash played through the LPM less payouts to players. It is pleasing to report
that GGR increased by 25.4% on the prior period. Revenue from the LPM business
was earned evenly over the six month period.
Due to the reclassification of the investment in RAH at 30 June 2011 as required
by IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations the
dividends received for the period of R13 million are included in revenue and not
off - set against the investment.
Unaudited Unaudited
31 Dec 2011 31 Dec 2010
R`000s R`000s
LPM interests 197 936 157 864
- Grandslots 122 901 106 702
- Kingdomslots 59 603 48 896
- Grand Gaming : Slots 11 932 -
- Other 3 500 2 266
Investment income 20 713 2 320
Total revenue 218 649 160 184
2. Cost of sales
Cost of sales is directly related to GGR, and comprises direct costs such as
commissions to site owners, gambling levies and monitoring fees. Cost of sales
has increased by 25.3% in line with the increase in GGR.
3. Profit from equity-accounted investments
Profit from equity-accounted investments comprises profits from jointly-
controlled entities and profits from associates. Overall the profit from equity-
accounted investments increased by R15,3 million or 24.9% to R76,5 million when
compared to the prior period. Included in the current period`s equity-accounted
earnings are the cancellation fees paid by SunWest International (Proprietary)
Limited ("SunWest") and received by Western Cape Casino Resort Manco
(Proprietary) Limited ("Western Cape Manco") in respect of the cancellation of
their management contracts incurred in terms of the Restructuring.
Profit from jointly-controlled entities
Profit from jointly-controlled entities consist of SunWest attributable earnings
and Western Cape Manco attributable earnings.
SunWest`s attributable earnings consist of attributable earnings from GrandWest
Casino and Entertainment World ("GrandWest") and the Table Bay Hotel. Western
Cape Manco attributable earnings consist of management fees.
Profit from associates
Profit from associates consists of attributable earnings from Akhona Gaming
Portfolio Investments (Proprietary) Limited ("Akhona GPI"). The prior period`s
profit from associates included RAH. However, this investment was disposed of as
part of the transaction to rearrange GPI and Sun International Limited`s ("SUI")
common interests in certain of their shared investments ("Restructuring"). In
terms of IFRS 5 any attributable earnings from RAH cease to be recognised from
the date it was classified as a non-current asset held for sale.
4. Profit on disposal of investments
On 2 December 2011 the remaining conditions regarding the Restructuring were met
and the deal was concluded. In terms of the Restructuring the Group sold 4.9% of
its economic interest in SunWest, 21.2% economic interest in Worcester Casino
(Proprietary) Limited ("Golden Valley") and its entire economic interest of
30.6% in RAH. As a result of these disposals, the Group`s economic interest in
SunWest and Golden Valley has been reduced to 25.1% each.
The Group received proceeds from SUI of R733,6 million for the disposal of these
investments and recognised a profit on sale of R60,2 million.
5. Realisation of fair value reserve
In terms of IAS 39 - Financial Instruments Recognition and Measurement, the
Group realised R35,6 million of fair value adjustments previously recognised and
as a result of disposing its interest in RAH in the statement of comprehensive
income.
6. Reversal of impairment of investment in jointly-controlled entity
In terms of IAS 36 - Impairment of Assets, an entity must determine whether
there is any indication of impairment at each reporting date. IAS 36 requires
assets to be impaired to the higher of market value or value in use based on
discounted cash flow valuations.
Subsequent to the interim period and persuant to the terms of the Restructuring,
Golden Valley completed the buy back of its shares from the Breede River
Community Trust. In order for the Group to maintain its economic interest in
Golden Valley at 25.1% an additional stake of its interest will be sold to SUI.
In terms of IAS 36, there is sufficient evidence available to allow the Group to
reverse R0,3 million of previously recognised impairment of this investment and
to carry the investment at its recoverable amount being the fair value less
costs to sell of R0,3 million.
7. Finance costs
Finance costs decreased by 13% due to the lower level of debt. During the period
R8,0 million was repaid on the Sanlam Capital Markets ("SCM") term loan. By
utilising part of the R733.6 million proceeds received from the Restructuring
the Group repaid the R40,0 million term loan with Grindrod Bank Limited and
redeemed R125,7 million preference shares with SCM.
8. Taxation
The tax in the statement of comprehensive income is relatively low compared to
the profit before tax due to exempt income earned, permanent differences as well
as timing of the tax already provided on the profit of the Restructuring.
9. Headline and adjusted headline earnings
Headline earnings per share ("HEPS") for the six-month period ended December
2011 increased by 71.9%, while adjusted HEPS increased by 17.7%. The increase in
adjusted HEPS is mainly as a result of the LPM business increasing revenue
compared to the prior period.
10. Non-current assets held for sale
At 30 June 2011 the investment in RAH was reclassified as a non-current asset
held for sale. This investment was sold as part of the Restructuring.
11.Current assets
Current assets have mainly increased due to the cash received as part of the
Restructuring and consists mainly of cash and cash equivalents of R698,0
million, inventory of R2,2 million and other receivables of R41,0 million.
12.Non-current liabilities
By utilising part of the R733,6 million proceeds received from SUI in terms of
the Restructuring, the Group repaid the R40,0 million-term loan with Grindrod
Bank Limited and redeemed R125,7 million preference shares with SCM.
The cumulative redeemable preference shares outstanding relate to the facility
with the Standard Bank of South Africa Limited and Depfin Investments
(Proprietary) Limited.
The balance on the interest-bearing borrowings relates to the term loan with
SCM.
13.Current liabilities
Current liabilities consist of the current portion of the SCM term loan of R16,0
million, finance lease liabilities of R1,0 million and other payables of R48,3
million.
Restructure with SUI ("Restructuring")
The Restructuring with SUI has been completed resulting in our economic
interests in SunWest and Golden Valley reducing to 25.1% each.
The cash received from this Restructuring is analysed as follows.
Net consideration
Shareholding received
% sold R`000s
SunWest 4.9 251 807
RAH 30.6 466 908
Golden Valley 20.3 14 874
733 589
Cancellation of management contracts 60 200
793 789
The cash received has been utilised as follows:
- repayment of R125,7 million SCM preference share funding;
- repayment of R40,0 million Grindrod Bank Limited term loan; and
- paid a special dividend of 60 cents per share totalling R282,3 million
(subsequent to 31 December 2011).
The final cash consideration received for RAH amounted to 422 cents per RAH
share. The adjustment to the initial offer of 408 cents per RAH share arose from
the delay in the completion of the Restructuring together with RAH`s portion of
the cancellation fee which was paid to RAH shareholders.
The cancellation fees received by the Group relates to GPI`s portion through its
50.0% interest in Western Cape Manco and its interest in Worcester Manco. The
once-off payment of the management contract`s cancellation fees included in the
profits recognised from jointly-controlled entities has been reversed in
adjusted headline earnings.
We are pleased to report that notwithstanding the Restructuring, the net asset
value per share has increased by 2.9% from 383 cents per share to 394 cents per
share. The net asset value per share will be affected subsequent to the payment
the 60 cents special dividend.
Performance of GPI`s LPM slots operations
During the first six months of the financial year, the LPM business generated
R194,4 million in GGR which has exceeded the prior period by 25.0% or R38,8
million.
Grandslots (Western Cape)
Grandslots` total GGR for the six months ended 31 December 2011 increased by
15.2% compared to the same period last year, whereas the total provincial GGR
increased by 13.7%.
A total of 1,670 LPMs were operational in Western Cape at 31 December 2011
representing 24.4% of the national total of active LPMs. They contributed 35.4%
(R40,6 million) to the national LPM GGR in December 2011.The Western Cape
remains the best performing province in terms of LPM GGR in the country.
Grandslots remains the market leader in the province in terms of active LPMs and
GGR. It enjoyed a GGR market share of 56.7% at 31 December 2011 compared to
54.3% in the same month last year and an active LPM market share of 53.7%.
Kingdomslots(KwaZulu-Natal)
Kingdomslots` total GGR for the six months ended 31 December 2011 increased by
21.9% compared to the same period last year, whereas the total provincial GGR
increased by 28.2%.
A total of 1,938 LPMs were operational in KwaZulu-Natal at 31 December 2011
representing 28.3% of the national total of active LPMs and the largest number
in any single province. They contributed 23.8% (R27,3 million) to the national
LPM GGR in December 2011.
Kingdomslots remains the market leader in KwaZulu-Natal in terms of active LPMs
and GGR, enjoying an active LPM market share of 36.3% and a GGR market share of
41.5% at 31 December 2011 compared to 44.2% in the same month last year.
Grand Gaming: Slots (Gauteng)
A total of 1,191 LPMs were operational in Gauteng at 31 December 2011
representing 17.4% of the national total of active LPMs compared to just 620
(10.1%) at the end of December 2010. The provincial contribution in turn equated
to 14.2% (R16,2 million) in December 2011 compared to 8.8% (R8,1 million) in
December 2010.
Since acquiring the LPM route operator licence and licenced LPM sites of
Playmeter Leisure Services (Proprietary) Limited at the end of April 2011, Grand
Gaming: Slots has managed to increase its GGR market share from 13.6% at 30 June
2011 to 14.6% at 31 December 2011.
Despite the significant increase in the number of active LPMs over the 6 months
ended 31 December 2011, the estimated average GGR per LPM in the province has
remained extremely stable.
Overall the LPM slots business operating contribution increased by 62.1%
compared to the prior period.
Review of GPI`s jointly-controlled entities
SunWest
In terms of the Restructuring concluded during December 2011, the Groups`
interest in SunWest decreased to 25.1%.
GrandWest`s revenue increased by 6.2% compared to the prior period while it`s
attributable profit after the payment of the cancellation fees decreased by
41.1% to R86,4 million. Attributable earnings for GrandWest would have increased
by 1.0% compared to the prior period had the new method of management fees been
applied retrospectively. GrandWest has shown consistent growth in revenues
despite the slow recovery of the global economy and continues to maintain its
position as one of the most profitable casinos in Africa.
Disappointingly, the Table Bay Hotel`s revenue decreased by 12.6% when compared
to the prior period and the attributable loss increased by 42.8% to R33,7
million. The prolonged global economic recovery continues to have a negative
impact on the luxury travel industry with the Table Bay Hotel as one of the
premier luxury accommodation offerings in South Africa being unable to avoid
this.
The Table Bay Hotel has nevertheless maintained its status as being an
aspirational destination amongst luxury travellers.
GrandWest`s exclusivity expired during December 2010. We continue to monitor any
further developments in this regard.
Golden Valley Casino
Golden Valley Casino`s revenue increased by 7.1% compared to the prior period
with the attributable loss decreasing by 11.5% to R2,8 million. The decrease in
attributable loss is mainly due to the lower level of debt and the decrease in
finance costs.
Review of GPI`s associates
Akhona GPI
Through its interest in Akhona GPI, GPI`s investment in Sibaya is an effective
3.3% (2010: 4.1%).
GPI diluted its interest as a result of its reduced shareholding in Akhona GPI
from 75% to 59% and the sale of shares in RAH which it had directly in Sibaya.
Unless GPI can increase its effective interest in Sibaya to meaningful levels,
it will exit this investment.
Related party transactions
The Group, in the ordinary course of business, entered into various transactions
with related parties.
All transactions were concluded at arm`s length. Any intra-group related party
transactions and outstanding balances are eliminated in the preparation of the
consolidated financial statements of the Group as presented.
Subsequent events
Subsequent to the interim period GPI paid a special dividend of 60 cents per
share on 16 January 2012.
Dividends
The directors are proud of their achievement of paying dividends during the
economic downturn, and will continue to look for ways to remain a dividend
active company.
Directorate
As announced on SENS, Mr Uys Meyer resigned as non-executive director with
effect from 31 January 2012. The Board wishes Mr Meyer well in his future
endeavours and thanks him for his participation to date.
Mr Alan Keet has been appointed as the Chief Executive Officer with effect from
10 April 2012. The Board would like to congratulate Mr Keet on his appointment
and looks forward to his contribution to the company and Group.
Unbundling of the GPI SPV and the GPI BBBEE Trusts
As indicated in the year-end results an important element to the Restructuring
with SUI is the releasing of GPI from all empowerment lock in obligations.
Letters have been sent to unit holders of the GPI Special Purpose Vehicle Trust
("GPI SPV Trust") and the GPI Broad Based Black Economic Empowerment Trust ("GPI
BBBEE Trust") advising them of the process that must be followed in order for
the units to be redeemed and their new GPI share certificates to be issued. We
urge those unit holders who have not yet responded to bring their relevant
documents as requested to our GPI offices.
Strategy
As previously reported, GPI`s strategy now has three key focus areas namely:
1. Its investment in urban casinos, centred around our stake in GrandWest;
2. The investment in the LPM business where GPI expects significant growth in
the years ahead and where GPI is also positioning itself to invest in new areas
of gaming, for example, to be ready to participate in the online gaming arena
should this be legislated in South Africa in the future; and
3. New investment opportunities. GPI is currently evaluating a number of
interesting and exciting prospects, which when further developed, we will be in
a position to advise shareholders.
Prospects
We anticipate the LPM business to show continued growth in 2012, especially as
the Gauteng operation develops. GrandWest remains a very solid performer and we
look forward to ongoing good results from this investment. Further we will
progress on our investment strategy in a careful and responsible manner.
For and on behalf of the Board
H Adams S Petersen
Executive Chairman Financial Director
Cape Town
27 February 2012 Prepared by: D Pienaar CA (SA)
Directors
H Adams (Executive Chairman), A Abercrombie #, A Bedford #,
R Freese #, R Hoption CA (SA) (Executive), Dr N Maharaj #*, N
Mlambo #, F Samaai #, S Petersen CA (SA) (Financial Director)
(# non-executive * lead independent)
Registered office
12th Floor, Convention Tower, Heerengracht St, Foreshore,
Cape Town, 8001
(PO Box 6563, Roggebaai, 8012)
Transfer secretaries
Computershare Investor Services (Proprietary) Limited
70 Marshall Street, Johannesburg, 2001
Attorneys
Bernadt Vukic Potash & Getz Attorneys
Corporate advisers
Leaf Capital (Proprietary) Limited
Sponsor
PSG Capital (Proprietary) Limited
Company secretary
Lazelle Parton
Date: 27/02/2012 17:25:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
