| Thu 29 Mar 2001, 0:00 | | Cfc - Audited Results 2000 And Dividend Declaratio |
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COMMERCIAL FINANCE COMPANY LIMITED
Registration no 1944/000264/06
AUDITED RESULTS 2000 AND DIVIDEND DECLARATION
* PRO FORMA HEADLINE EARNINGS PER SHARE UP 54%
* DIVIDENDS INCREASED BY 24%
The Group audited results for the year ended 31 December 2000 are as follows:
Pro Forma Group
2000 1999 2000 1999
(R000) (R000) (R000) (R000)
ABRIDGED GROUP INCOME
STATEMENT
Operating income before
taking into account the
following items 6,648 6,198 6,648 6,198
Depreciation (222) (184) (222) (184)
Interest paid (78) (205) (78) (205)
Operating income 6,348 5,809 6,348 5,809
Dividends 8,977 6,617 8,977 6,617
Listed 8,180 5,817 8,180 5,817
Unlisted 797 800 797 800
Associated companies 7,510 4,845 (17,029) 30,113
Dividends 5,799 4,100 5,799 4,100
Retained earnings 1,381 738 3,929 22,128
Capital surplus 330 7 330 3,885
Exceptional items 0 0 (27,087) 0
Exceptional items (663) (264) (663) (264)
Capital and other items 6,583 0 6,583 0
Income before taxation 28,755 17,007 4,216 42,275
Taxation (1,704) (2,214) (1,704) (2,214)
Income after taxation 27,051 14,793 2,512 40,061
Preference and outside
shareholders (1,634) (2,573) (1,634) (2,573)
Income attributable to
Ordinary shareholders 25,417 12,220 878 37,488
Reconciliation of headline
earnings
Income attributable to
Ordinary Shareholders 25,417 12,220 878 37,488
Capital and other items (6,250) 257 20,837 (3,620)
Headline earnings 19,167 12,477 21,715 33,868
Ordinary shares issued
(000's) 9,920 9,920 9,920 9,920
Headline Earnings
per share (cents) 193.2 125.8 218.9 341.4
Cash Headline earnings
per ordinary share (cents) 179.3 118.3 179.3 118.3
Basic earnings per
Ordinary share (cents) 256.2 123.1 8.9 377.9
Dividend - per share
(cents) 114.0 92.0 114.0 92.0
- times covered 1.7 1.4 1.9 3.7
ABRIDGED GROUP
BALANCE SHEET
Ordinary shareholders
interest 196,830 182,723 197,559 207,991
Preference share capital 154 154 154 154
Outside shareholders
interest 9,104 22,250 9,104 22,250
Total shareholders interest 206,088 205,127 206,817 230,395
Current liabilities 20,487 10,247 20,487 10,247
Total equities and
Liabilities 226,575 215,374 227,304 240,642
Fixed assets 51,360 38,844 51,360 38,844
Investments 152,733 170,705 153,462 195,973
Listed 64,598 68,087 64,598 68,087
Unlisted 87,437 101,520 88,166 126,788
Loan 698 1,098 698 1,098
Current assets 22,482 5,825 22,482 5,825
226,575 215,374 227,304 240,642
Net asset value per
ordinary share
- At book value (cents) 1,984 1,842 1,991 2,097
- At market value (cents) 4,905 5,046 4,905 5,046
Investments
- Listed at market value
(R000) 245,193 286,873 245,193 286,873
- Unlisted at directors
valuation (R000) 171,967 170,000 171,967 170,000
Land and buildings
Open market value
(directors valuation)
(R000) 86,250 81,025 86,250 81,025
Capital expenditure
during the
year (R000) 13,388 2,930 13,388 2,930
Capital expenditure
committed and
authorised (R000) 6,094 0 6,094 0
Contingent liabilities
(R000) 0 0 0 0
ABRIDGED CASH FLOW
STATEMENTS
Net cash inflows from
operating activities 9,793 9,309
Net cash in/(out)flow from
investing activities 739 (8,868)
Net increase in cash
equivalents 10,532 441
Cash and Cash equivalents
at beginning of year 784 343
Cash and cash equivalents
at end of year 11,316 784
GROUP LISTED INVESTMENTS
Shares Held Market Value
2000 1999 2000 1999
(R000) (R000)
Anglo American PLC 77,450 77,450 31,677 30,748
Industrial & Commercial
Holdings Group 0 150,000 0 5,025
BoE Corporation 0 9,241,790 0 43,159
BoE Corporation Pref 0 12,450,046 0 53,909
BoE Ltd 20,245,881 1,285,872 90,499 7,715
Laser Group 8,085,004 0 14,553 0
Ovbel Holdings 2,854,800 2,854,800 1,713 1,484
Barloworld 21,164 21,164 1,007 938
Wilson Bayly Holmes - Ovcon 71,370 71,370 293 360
Tongaat-Hulett Group 700,146 700,146 26,711 36,408
Mr Price Group 16,946,161 0 62,362 0
Specialty Stores N 0 2,170,210 0 15,929
Specialty Stores 0 2,170,210 0 15,191
Storeco 0 3,034,435 0 18,965
Storeco N 0 9,275,058 0 57,042
RMB Holdings 1,393,898 0 16,378 0
245,193 286,873
GROUP UNLISTED INVESTMENTS
1 Associated companies
(Effective holdings of listed investments)
Shares Held Market Value
2000 1999 2000 1999
(R000) (R000)
My Prize Investments (Pty) Ltd
(50% investment 1999 50%)
BoE Corporation 0 67,993,924 0 317,532
BoE Ltd 59,158,186 0 264,437 0
Preference share funding (94,377) (156,756)
170,060 (160,776)
Group share 85,030 80,388
Really Noble Investments Ltd
(30% investment 1999 30%)
BoE Ltd 42,058,111 0 188,000 0
BoE Corporation 0 36,504,095 0 170,474
BoE Corporation Pref 0 11,835,724 0 51,249
Commercial Finance
Company Ltd 1,575,889 1,575,889 49,641 49,641
Congella Federation Ltd 4,652 4,652 377 376
Ovbel Holdings 107,501 107,501 65 56
RMB Holdings Ltd 2,895,640 0 34,024 0
Congella Federation 6% Pref 2,165 2,165 3 3
Preference share funding 0 (6,295)
Cash 10,514 0
282,624 265,504
Group share 84,787 79,651
2 Other unlisted investments 2,150 9,961
171,967 170,000
NOTES ON PRO FORMA RESULTS
In March 2000 the BoE Group announced the unbundling of BoE Corporation and as
a result the disbanding of the control structure of that Group. As a result
the CFC Group will no longer equity account for its investment in BoE Limited.
The results for the year to 31 December 2000 have been prepared both on an
actual (BoE Group equity accounted for the six months to March 2000) and on a
pro forma basis (no equity accounted earnings for the BoE Group brought to
account as the Directors are of the opinion that by so doing a more meaningful
presentation of the Group's results and ongoing business is achieved). The pro
forma comparative figures for 1999 have also been adjusted to exclude all
equity accounted earnings of the BoE Group.
COMMENT
The results for the 2000 financial year as measured by the pro forma Headline
earnings per share increased by 54% from 125.8 cents to 193.2 cents per share.
Dividends received account for the bulk of the increase.
Cash earnings attributable to ordinary shareholders increased by 52% from 118.3
cents in 1999 to 179.3 cents per share.
Changes in the investment portfolio include the unbundling of BoE Corporation
in exchange for BoE Limited, RMB Holdings shares and cash, the consolidation of
Specialty / Storeco shares into Mr Price Group and the acquisition of 8,085,004
shares in the Laser Group.
GROUP STRATEGY
Future direction is to continue to acquire strategic and/or controlling
interests in operating companies as opposed to pure portfolio investments.
PROSPECTS
Budgets for the year 2001 indicate a meaningful increase in earnings per share.
ANNUAL REPORT
The Annual Report including Financial Statements detailing the results and
activities of the Group is being mailed to shareholders on or about 30 March
2001.
DIVIDENDS PAID
A final ordinary dividend no. 159 of 85 cents (1999 : 68 cents) per share has
been declared payable to ordinary shareholders registered on 20 April 2001.
The dividend will be paid on or about 4 May 2001.
Durban By order of the Board
30 March 2000 C VAN DER POL (CHAIRMAN)
W J SWAIN (MANAGING DIRECTOR)
Registered Office Transfer Secretaries
1100 Mansion House KPMG Services (Pty) Ltd
Field Street, Durban P O Box 1496, Durban, 4000
Directors: C van der Pol, D E Daugherty, W J McAdam, W J Swain
