| Fri 30 Mar 2001, 0:00 | | Unaudited Final Results For Lyons Financial Soluti |
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LYONS FINANCIAL SOLUTIONS HOLDINGS LIMITED
(FORMERLY THE LEARNING CORPORATION LIMITED)
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 1997/22117/06)
INCOME STATEMENT YEAR ENDING DECEMBER 2000
LFSH LTD PER TLC AFS PRO FORMA
31 DECEMBER 31 DECEMBER (12 MONTHS)
2000 1999 31 DECEMBER
1999
R'000 R'000 R'000
REVENUE 30,507 8,392 15,224
OPERATING PROFIT
BEFORE INTEREST 14,456 (743) 4,288
EXCEPTIONAL ITEMS 34,984
INTEREST RECEIVED 1 - 130
NET PROFIT BEFORE TAXATION 14,457 34,243 4,418
TAXATION 4,660 (4) 1,325
NET PROFIT AFTER TAXATION 9,797 34,247 3,093
DIVIDENDS PAID - (36,726) -
RETAINED EARNINGS AT BEGINNING
OF THE YEAR -746 1,733 -
RETAINED EARNINGS AT END
OF THE YEAR 9,051 -746 3,093
EPS CALCS
SHARES IN ISSUE 327,960,000 67,204,000 327,960,000
EARNINGS PER SHARE 2.99 61.50 0.94
HEADLINE EARNINGS PER SHARE 2.99 -1.30 0.94
EBITDA CALCULATIONS 15,001,201 (682,000) 4,362,899
BALANCE SHEET YEAR ENDING DECEMBER 2000
LFSH LTD TLC ACTUALS PRO FORMA
31 DECEMBER 31 DECEMBER 31 DECEMBER
2000 1999 1999
R'000 R'000 R'000
ASSETS
NON-CURRENT ASSETS
PROPERTY, PLANT & EQUIPMENT 456 421
LOAN TO SHARE INCENTIVE TRUST 403 250 250
TOTAL NON-CURRENT ASSETS 859 250 671
CURRENT ASSETS RECEIVABLES 20,911 4,584
CASH AND EQUIVALENTS 1,192 1,092 1,399
TOTAL CURRENT ASSETS 22,103 1,092 5,983
TOTAL NON-CURRENT &
CURRENT ASSETS 22,962 1,342 6,654
EQUITY AND LIABILITIES
CAPITAL AND RESERVES
SHARE CAPITAL AND PREMIUM 33 1,998 1,531
RETAINED INCOME 9,051 -746 505
TOTAL CAPITAL AND RESERVES 9,084 1,252 2,036
LIABILITIES
LONG TERM LIABILITIES 58 - 92
TAXATION PAYABLE 4,660 - -
ACCOUNTS PAYABLE 3,987 90 2,899
BANK OVERDRAFT 5,173 - 1,627
TOTAL LIABILITIES 13,878 90 4,618
TOTAL EQUITY AND
LIABILITIES 22,962 1,342 6,654
NET ASSET VALUE (PER SHARE) 2,77 1,49 0,61
CONDENSED CASHFLOW STATEMENT YEAR ENDING DECEMBER 2000
LYONS TLC 1999
OPERATING AND FINANCING
ACTIVITIES 103 -71.258
INVESTING ACTIVITIES -5,175 58,326
MOVEMENT IN CASH AND SHORT TERM FUNDS -5,072 -12,932
OPENING CASH AND SHORT TERM FUNDS 1,092 14,024
CLOSING CASH AND SHORT TERM FUNDS -3,980 1,092
343% 316% 321%
EBITDA NOPAT EPS
HIGHLIGHTS
EBITDA (EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION)
UP BY 343% ON LAST YEAR TO R15,001,201
NOPAT (NETT OPERATING PROFIT AFTER TAX)
UP BY 316% ON LAST YEAR TO R9,797,000
EPS (EARNINGS PER SHARE)
UP BY 321% ON LAST YEAR TO 2,99 CENTS PER SHARE
INTRODUCTION
THE DIRECTORS ARE PLEASED TO PRESENT THE POSITIVE MAIDEN RESULTS OF THE COMPANY
AS AT THE DECEMBER 2000. THE COMPANY WAS LISTED IN THE FINANCIAL SERVICES
SECTOR, THROUGH THE TLC CASH SHELL ON 31ST MAY 2000 AND IS PRIMARILY INVOLVED
IN ASSET AND INVESTMENT MANAGEMENT ON BEHALF OF CORPORATE AND INSTITUTIONAL
CLIENTS. THE BOARD OF DIRECTORS OF LYONS FINANCIAL SOLUTIONS HOLDINGS LIMITED
HAS APPROVED A CHANGE IN THE COMPANY'S YEAR-END FROM DECEMBER TO MAY. THIS IS
TO REFLECT A FAIR YEAR'S TRADING PERIOD AS THE BUSINESSES WERE LISTED ON THE
31ST MAY 2000. THE COMPANY'S AUDITORS HAVE ALSO APPROVED THE CHANGE AND WILL
COMPLETE THE AUDIT AND DELIVER AUDITED RESULTS FOR THE PERIOD UNDER REVIEW AND
THE EXTENDED PERIOD TO END MAY IN THE AUDITED FINANCIAL RESULTS.
GROUP STRUCTURE
LFSH LTD
LYONS CELEXA LYONS LYONS
ASSET INVESTMENT CAPITAL & CORPORATE &
MANAGEMENT MANAGERS ASSET FINANCE STRUCTURED FINANCE
COMMENTS ON GROUP RESULTS
THE SECOND HALF OF THE YEAR UNDER REVIEW INCREASED EARNINGS BY OVER 300%. THIS
ENORMOUS GAIN IN EARNINGS HAS BEEN DUE TO THE COMPANY ENJOYING FIRST TO MARKET
COMPETITIVE ADVANTAGE AND HIGH OPERATIONAL LEVERAGE. THE COMPANY HAS SEEN ITS
ASSETS UNDER MANAGEMENT GROW TO IN EXCESS OF R3.0 BILLION WITH 48 CORPORATE KEY
ACCOUNTS AS PRIMARY CLIENTS. CONTRACTUAL REVENUE IS ONLY RECOGNISED WHEN IT IS
DUE AND THE DEBTORS PROFILE IS OF INVESTMENT GRADE AND COLLECTED WITHIN AN
AVERAGE OF 40 DAYS. THE STRUCTURED PRODUCTS TEAM CONTINUED TO FARE WELL IN THE
SECOND HALF OF LAST YEAR WITH OVER R250.0 MILLION OF DEBT-BASED TRANSACTIONS
BEING COMPLETED. THE LEASING AND SALES OPERATIONS TURNED IN LOWER THAN
EXPECTED RESULTS DUE TO A GENERAL CALMING IN THE INDUSTRY AND MARGINS WERE
SEVERELY PUT UNDER PRESSURE. THE RELATIONSHIP WITH CELEXA INVESTMENT MANAGEMENT
IN EUROPE HAS PROVED TREMENDOUSLY SUCCESSFUL AND HAS OPENED A NUMBER OF
OPPORTUNITIES FOR THE GROUP TO EXPAND ITS NICHE PRODUCTS AS WELL AS GROW
INVESTMENT OPPORTUNITIES FOR ITS FUNDS UNDER MANAGEMENT. THE LYONS CORPORATE
LEASE FUND, A WAREHOUSE/INCUBATOR FOR CORPORATE REAL ESTATE IS CURRENTLY
STANDING AT R480.0 MILLION AND IS EXPECTED TO GROW FAIRLY QUICKLY TO A TARGET
OF R1.2 BILLION BEFORE YEAR-END. THE FUND IS ACTIVELY INVESTIGATING THE
ADVANTAGES OF LISTING ON BOTH THE JSE AND THE BOND EXCHANGE. THE CELOGIX FUND
BIRTHED BY CELEXA INVESTMENT MANAGEMENT IN CENTRAL EUROPE TO TAKE ADVANTAGE OF
THE GROWTH IN LOGISTICS AND WAREHOUSING REAL ESTATE MARKETS HAS SIMILAR
CHARACTERISTICS OF THE SOUTHERN AFRICAN SUB CONTINENT AND IT IS ENVISAGED THAT
A SIMILAR FUND WILL BE LAUNCHED IN SA. THE CAPITAL AND ASSET FINANCE DIVISION
RAISED OVER R100.0 MILLION IN NON-RECOURSE LINES OF CREDIT AND ARE ACTIVELY
PURSUING CORPORATE FINANCE OPPORTUNITIES AND MANAGEMENT EXPECT A MAJOR
CONTRIBUTION TO EARNINGS FROM THIS DIVISION IN THE NEXT FINANCIAL YEAR.
FORECAST AND DIVIDEND POLICY
MANAGEMENT EXPECT EARNINGS GROWTH THIS YEAR OF 25% AND PLAN TO GROW ORGANICALLY
WITHIN THE GUIDELINES OF THE STRATEGIC DIRECTION OF THE GROUP. MANAGEMENT ARE
ALSO ACTIVELY PURSUING AN EXTERNAL STRATEGIC INVESTMENT IN THE GROUP AND HAVE
BEEN APPROACHED BY A NUMBER OF LOCAL AND INTERNATIONAL GROUPS TO LOOK AT
FORMALISING RELATIONSHIPS. PEOPLE AND SYSTEMS REMAIN AT THE TOP OF OUR
INVESTMENT PRIORITIES THIS YEAR AND THEREFORE NO DIVIDENDS WILL BE PAID.
GARRY FROMENTIN IAN HEWETT
CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER
DIRECTORS
M JUDIN* (CHAIRMAN), G FROMENTIN**(CHIEF EXECUTIVE), I HEWETT,
G MACKIE, ADV R MOERMAN*, DR P NCHOLO* *NON-EXECUTIVE **BRITISH
COMMUNICATION
LYONS HOUSE, 29 AUTUMN STREET, RIVONIA
JOHANNESBURG, SOUTH AFRICA
P O BOX 87621, HOUGHTON, 2041
TEL: (+2711) 807 3456 FAX: (+2711) 807 3799
E-MAIL: ENQUIRIES@LYONS.CO.ZA
WWW.LYONS.CO.ZA WWW.CELEXA.CO.UK
FOR B2B SOLUTIONS VISIT OUR CLIENT PORTAL ON WWW.LYONS.CO.ZA
