| Tue 17 Apr 2012, 15:30 | | SKJ - Sekunjalo Investments Limited - Media Release - Sekunjalo Posts Impressive |
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SKJ
SKJ
SKJ - Sekunjalo Investments Limited - Media Release - Sekunjalo Posts Impressive
Interim Results
Sekunjalo Investments Limited
(Incorporated in the Republic of South Africa)
Registration number 1996/006093/06
Share code: SKJ and ISIN: ZAE000017893
("Sekunjalo"or "the Group" or "the Company")
MEDIA RELEASE
17 April 2012
FOR IMMEDIATE RELEASE: SEKUNJALO POSTS IMPRESSIVE INTERIM RESULTS
SEKUNJALO GROUP REVENUE UP BY 33%:
Tangible NAV up by 13%,
Earnings Per Share (EPS) up 34%
Headline Earnings Per Share (HEPS) is up 38%.
LEADING empowerment company Sekunjalo Investments today reported satisfactory
growth in bottom line earnings, cashflow and net asset value (NAV) for the six
months to end February 2012.
The Group, as an investment holding company, has set its objective to increase
net asset value (NAV) by improving operational performance of its underlying
businesses and investments, and has done so successfully for the period under
review.
Group revenue has grown by 33% from the prior interim period due to the strong
operational performance of the underlying businesses. The Group`s gross profit
percentage has increased from 28% to 38% with improved margins and efficiencies,
particularly from the IT and fishing operations.
Profit before taxation for the period has increased significantly to R19,3
million as compared to the prior period profit of R8.4 million, driven mainly by
the subsidiaries organic growth and strategies implemented over the past two
years.
Earnings and headline earnings per share have increased by 34% and 38%
respectively as a result of the operational performance of the subsidiaries.
The Group`s asset base has increased by R43 million to R783 million from R740
million over the comparative period under review.
Net asset value (NAV) per share grew to 88.70c from 83.62c in the prior interim
period, while tangible NAV per share grew to 78,68c from 68,84c for the same
period.
Sekunjalo`s CEO Khalid Abdulla said that this performance has resulted in the
improvement in cash generation from operations which compares well with the cash
deficit experienced during the prior interim period. Cash flows from operating
activities have improved by R26 million compared to the prior interim period.
Abdulla said the Group is pleased to announce that the business strategies
previously implemented are showing the expected improved results for the six
month period under review.
He said that due to the re-investment into the organic growth of the Information
Technology Communication Group (Sekunjalo TSG), the division is performing above
expectation with operating profits of R26 million for the period as compared to
R5 million for the prior period. This was achieved through the implementation
and roll out of the long-term contracts secured during the prior financial
years.
Abdulla was heartened by the performance of the Sekunjalo TSG division. "These
operations continue to perform well with revenue from operations increasing by
88% to reflect revenue of R73 million as compared to R39 million during the
prior period.
Premier Fishing SA (Pty) Ltd has steadily maintained its performance with the
major contribution coming from the pelagic and south coast rock lobster
division. The fishing sector generally performs better in the second half of the
year due to the seasonal nature of the industry.
He said Premier Fishing, generated a profit from operations for the period under
review. The Information Technology Communication Group also performed above
target, and that both generated positive cash flows. This has resulted in these
divisions being in a strong financial position.
He added that the Environmental Impact Analysis (EIA) process was progressing
well and this will pave the way for the re-opening of the pelagic fish
processing plant in Saldanha Bay.
Abdulla said that the healthcare division`s revenue has grown by 49% with the
core dermatological range of products in the pharmaceutical division showing a
good improvement in performance, despite significant competition from generic
equivalents.
Dr Iqbal Surve, Chairman of Sekunjalo and Genius Biotherapeutics (formerly
Bioclones) ("GBT"), South Africa`s leading Biotechnology company at the
forefront of novel technology treatment for cancer and infectious diseases
announced that it had received permission from the Minister of Finance of South
Africa and the South African Reserve Bank to obtain a primary offshore listing
on a foreign stock exchange.
Dr Iqbal Surve, said that the listing permission will allow South Africa to
benefit from capital investments, employment creation, increased revenues and
taxes and will also create numerous opportunities for young South African
scientists to be part of the global scientific community and to be at the
cutting edge of novel technologies in cancer treatment.
The approval was granted subject to a number of conditions. GBT has been working
with its international shareholders, scientific partners and licensors to ensure
that the conditions can be fulfilled. Shareholders will be advised accordingly.
Abdulla said that the group`s non-controlling interests in large multinational
companies British Telecom Communication Services South Africa (Pty) Ltd and Saab
SA (Pty) Ltd have also strengthened the Group`s financial position.
Abdulla said that subsequent to the financial reporting date the Group concluded
an acquisition of a 0.75% stake in the Pioneer Food Group at a 5% discount to
market value. He said that this acquisition is perfectly aligned with the
company`s strategy to diversify its business and enhance the value through
strategic investments in key sectors of the economy.
The ICT and fishing divisions have built a strong platform for further organic
growth and are positioned well to increase these investments through
acquisition.
ENDS
For further comment please contact:
Cherie Hendricks
Corporate Affairs Director
Tel: 021-427 1400 or 083 718 4493
Sponsor: PSG Capital
Date: 17/04/2012 15:30:58 Produced by the JSE SENS Department.
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