| Tue 27 Mar 2001, 0:00 | | Moribo Leisure Limited - Audited Consolidated Resu |
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Moribo Leisure Limited
Audited consolidated results for the financial year ended 31 December 2000
Consolidated income statement
Audited Audited
Year ended Year ended
31 Dec 31 Dec
2000 1999
R'000 R'000
Turnover 29 097 93 353
Operating (loss) from continuing
operations (6 283) (2 922)
Operating (loss)/income from
discontinued operations (13 135)
Operating (loss)/income (6 283) (16 057)
Net interest received 1 542 1 812
Operating (loss)/income before
abnormal items (4 741) (14 245)
Abnormal items - (43 509)
(Loss)/income before taxation (4 741) (57 754)
Taxation -
Retained (loss)/income (4 741) (57 754)
Headline (loss)/earnings per share (8,11) (25,68)
(Loss)/earnings per share (8,11 (104,11)
Abridged consolidated cash flow statement
Audited Audited
Year ended Year ended
31 Dec 31 Dec
2000 1999
R'000 R'000
Operating activities 871 (26 020)
Cash generated from operations (604) (27 468)
Interest paid (67) (612)
Taxation paid 0 (364)
Interest received 1 542 2 424
Investing activities (12 780) 486
Financing activities 305 26 735
Net increase/(decrease) in cash
and cash equivalents (11 604) 1 201
Cash and cash equivalents at
beginning of period 14 210 13 009
Cash and cash equivalents at
end of period 2 606 14 210
Consolidated balance sheet
Audited Audited
Year ended Year ended
31 Dec 31 Dec
2000 1999
R'000 R'000
ASSETS
Non-current assets
Tangible fixed assets 3 068 4 020
Development expenditure 19 487 15 146
Investments 8 385 326
Loan to share incentive scheme 949 949
31 889 20 441
Current assets 13 194 33 341
Inventories 344 291
Receivables and prepayments 10 141 17 442
Cash and cash equivalents 2 709 15 608
Total assets 45 083 53 782
EQUITY AND LIABILITIES
Capital and reserves
Share capital and premium 83 419 83 419
Non-distributable reserves 7 276 7 276
(Accumulated loss)/
Retained income (55 915) (51 174)
Total shareholders' equity 34 780 39 521
Less: Goodwill - -
Net equity 34 780 39 521
Non-current liabilities
Long-term borrowings 440 135
Current liabilities 9 863 14 126
Trade and other payables 9 760 12 728
Bank overdraft 103 1 398
Total equity and liabilities 45 083 53 782
Issued ordinary shares 58 430 513 58 430 513
Weighted number of
shares in issue 58 430 513 55 473 447
Net asset value excluding
development costs per share (cents) 26,17 41,72
Net asset value per share (cents) 60,28 67,87
Statement of changes in equity
Non-
distribu- Retained
Stated table profit/
capital reserves (loss) Total
Balance at 31/12/1999 83 419 7 276 (51 174) 39 521
Current year loss (4 741) (4 741)
Balance at 31/12/2000 83 419 7 276 (55 915) 34 780
Comments on the results
Highlights
The year under review has been difficult yet positive because of the
significant progress achieved by the Department of Trade and Industry in the
development of the route operations industry.
As previously reported, Moribo is in the final stages of divesting itself of
its interest in Gitam International (SA) (Pty) Ltd.
In line with Moribo's strategy to invest in gaming entertainment-related
technology industries, Moribo has commenced recently with an investment in an
entity which provides a network infrastructure to the gaming industry.
Route Operations - Lottec Holdings (Pty)Limited
The award of the central monitoring system and the promulgation of National
regulations were the outstanding issues remaining prior to the commencement of
the route operation and site licensing processes at regional level. Lottec has
previously been awarded a Route Operation licence in Mpumalanga and on award of
the central monitoring contract Mpumalanga will commence the process of
awarding site licences.
During August 2000 the National Gambling Board issued a draft request for
proposal (RFP) for the licence to operate the central monitoring system. A
final RFP was issued in October 2000 with submissions in December 2000. The
National Gambling Board has noted the preferred bidder should be announced in
April 2001. There were submissions by two bidders in December.
The national regulations governing the route operations industry were
promulgated in December 2000. These regulations were in line with industry
expectations and cover such matters as the maximum number of gaming machines
permissible which have been set at 50000 machines on a national basis and the
maximum wager and prizes. The regulations were prepared with consultation
between the National Gaming Board and industry players including Lottec.
Lottec has spent considerable time and resources in selecting and concluding
contracts with potential sites throughout South Africa, and Lottec has ensured
sites will comply with site licensing criteria in each province.
Allamounts spent have been capitalised and are included in development
expenditure.
The other provinces have indicated the commencement of their respective
licensing processes once the central monitoring system has been awarded. Lottec
intends applying for licences in all major provinces.
The investment for Lottec in the Mpumalanga province will be funded out of
internal resources generated through the sale of Gitam, and borrowings. Should
the central monitoring licence be awarded in April 2001, and the site licensing
process in Mpumalanga commence soon thereafter, Lottec will generate returns in
the second six months of 2001 with the full impact in the year 2002.
Advertising - Gitam
As your company reported previously, Moribo is in the final stages of
negotiations with management for the sale of its forty-five percent interest in
Gitam, which will be completed by April 2001. Shareholders will be notified and
a circular will be mailed to shareholders giving the full details and impact of
the transaction.
The results for Gitam for the period under review were disappointing, resulting
in a loss of R2,3 million (1999: profit R2,8 million). Reasons for the results
include the investment in infrastructure including the upgrading of hardware
and software for the pitching of new clients. Management was successful in
stabilising the position of Gitam during the second six months under review.
Financial overview
Your company reported a loss per ordinary share of 8,12 (1999:104,11) cents,
and a net asset value of 60,28 (1999: 67,87) cents per share, after writing off
all intangible assets but including the costs of developing the Route
Operations. The opinion of the directors is that the development costs will be
recovered once the industry is operational.
Prospects
The board continues to be confident in the future of Moribo through its
investment in the potentially lucrative Route Operations and with the prospects
of the new investments it has made.
By order of the board
A B Mashiatshidi R Biesheuvel
Chairman Chief Executive Officer
27 March 2001
(Registration number 1919/001318/06)
Registered office: Building Number 9, Woodmead Estate, Woodmead Drive,
Woodmead, Sandton, 2157 Transfer secretaries: Mercantile Registrars Limited,
First National House, 11 Diagonal Street, Johannesburg, 2001
