| Fri 30 Mar 2001, 0:00 | | Viking Audited Results |
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VIKING INVESTMENTS & ASSET MANAGEMENT LTD
(Incorporated in the Republic of South Africa)
(Registration Number 1998/004440/06)
("Viking" or "the company")
Audited Results for the year ended 31 December 2000
HIGHLIGHTS
* Revenue up 26%
* Profit after tax up 30%
* Vi2 - Viking's second incubator is conceived
* Establishment of Dubai incubator
Income statement
Audited Audited
31 Dec 31 Dec
2000 1999
R'000 R'000
Revenue 19 298 15 257
Operating profit before
depreciation and interest 10 549 8 553
Depreciation (445) (520)
Net interest received 559 1 291
Profit before taxation 10 663 9 324
Taxation 2 170 2 773
Profit after taxation 8 493 6 551
Earnings per share (cents) 8,49 6,55
Number of shares in issue ('000) 100 000 100 000
Balance sheet
Audited Audited
31 Dec 31 Dec
2000 1999
R'000 R'000
ASSETS
Non-current assets
Property and equipment 448 814
Current assets
Available for sale - financial assets 24 542 4 300
Accounts receivable and pre-payments 748 10 039
Taxation 94 -
Cash resources 709 2 393
26 093 16 732
Total assets 26 541 17 546
EQUITY AND LIABILITIES
Capital and reserves
Ordinary share capital 2 000 2 000
distributable reserves 21 149 12 657
23 149 14 657
Non-current liabilities
Deferred tax 3 257 1 091
Current liabilities
Accounts and other payables 135 339
Taxation - 1 459
135 1 798
Total equity and liabilities 26 541 17 546
Cash flow statement
Audited Audited
31 Dec 31 Dec
2000 1999
R'000 R'000
Cash flows from
operating activities 565 4 009
Cash flows from investing activities (2 248) (1 266)
Cash flows from
financing activities - (350)
Net (decrease)/increase in cash
and cash equivalents (1 683) 2 393
Opening cash and cash equivalents 2 393 -
Closing cash and cash equivalents 710 2 393
Statement of changes in equity
Share Accumulated
capital profit Total
R'000 R'000 R'000
Balance at 1 January 2000 2 000 12 657 14 657
Profit for year - 8 493 8 493
Balance at 31 December 2000 2 000 21 149 23 149
Balance at 1 January 1999 2 000 6 106 8 106
Profit for year - 6 551 6 551
Balance at 31 December 1999 2 000 12 657 14 657
FINANCIAL PERFORMANCE
Viking is pleased to report another successful year with an increase of 30% in
earnings per share.
REVIEW OF OPERATIONS
Notwithstanding difficult market conditions, Viking has managed to increase the
overall value of its on-balance sheet investments. This has been achieved
through application of its incubation methodology, which is being continually
refined and honed.
Shift Interactive Communications
During the year Shift issued a new issue of shares to Protocol Venture Capital,
a subsidiary of the Dimension Data Group. As part of this deal Viking sold a
portion of it's shares to Protocol.
The cash received in Shift considerably improved Shift's balance sheet coupled
with the strategic advantage and benefits of having Dimension Data as a
partner. Contractual prospects for the company look promising.
Investments acquired by the company during the year:
Digital Current, is a company with a patented data broadcast process and PC
receiver card. It is now in its final stage of development. The product is
expected to be launched this year. The market is already expressing a very keen
interest
Mobilewho, operates a global interactive internet database of mobile telephone
numbers designed to be catalyst for the creation of a global mobile telephone
portal. This portal aims to capitalize on new technological developments in the
mobile telephone industry and marrying them to the Internet. Viking has an
option to purchase a significant portion of the business.
Prefunding Tools, provides a software tool that dramatically speeds up the
actuarial function for calculating post retirement medical liability of
companies. It combines the actuarial valuation techniques to produce a
scenario-planning tool, which produces real time dynamic results to enable the
corporate user to define and manage their Prefunding risks. The new accounting
standard effective this year, compels companies to disclose this liability on
their balance sheet.
Prefunding's unique calculation techniques make it unique. The combined effort
of a risk modeller and actuary has reduced the manpower and computing power
needed to complete an actuarial calculation.
Zen Computing, is a developer of a content management system known as INSITE,
for use in Internet sites. A second round of financing to complete the product
was concluded with the Industrial Development Corporation.
DETERMINATION OF INCREASE IN EARNINGS
The strong growth in earnings, consisting primarily of gains not yet realised,
is mainly attributable to the increased value in the company's private equity
investments. This calculation has been performed in a manner that is consistent
with the previous year and within the framework of the Guidelines of the
British Venture Capital Association.
EVENTS SUBSEQUENT TO BALANCE SHEET DATE
Emirates Intellectual Embryo Limited ("EIE")
Viking has successfully concluded an equity participation agreement with
strategic investors from the Middle East, India and the United Kingdom to
establish one of the first technology, media and telecommunications business
incubators in the newly launched Dubai Internet City. EIE will have an
on-balance sheet investment fund of US$ 5 million and is in the process of
closing a US$ 15 million off-balance sheet or third party venture capital fund.
Funds will be applied to seed and early stage investment opportunities in
India, the Middle East, North Africa and Korea. Viking will have a 33,3% stake.
Venturebank
Viking is currently negotiating a 50:50 joint venture on a fund to be run in
Australia with Venturebank, a venture capital firm. Further to this, Viking is
also currently negotiating the purchase of 50% of Venturebank. These
transactions will be subject to the approval of the relevant authorities.
Converge
Converge (Pty) Ltd, an operating subsidiary of Converge Holdings (Pty) Ltd, was
placed in final liquidation by the Cape High Court on 15 March 2001. In light
of this situation, the company has taken a prudent approach by writing down its
entire investment of R1,9 million. The amount invested by our client portfolio
amounted to R2 million. These events caused grave concern to Viking and, in
conjunction with the liquidators, Viking is conducting an investigation into
the affairs of the company.
Web Telecoms
Viking is in the process of finalising negotiations, which will result in the
disposal of all interests in Web Telecoms.
Sale of financial assets
Viking has sold part of its liquid financial assets to ensure that cash flow in
the business remains sound. Viking is in the fortunate position of having a
keen demand for it's liquid financial assets. Further sales are envisaged this
year in line with the policy of selling at the most opportune time.
DIRECTORS
The Viking board welcomes the appointment of Ron Grace as Financial Director in
place of Edmund Hung, who remains on the board as director of Private Equity
Operations.
PROSPECTS
Viking is committed to deliver value to its shareholders. While continuing with
its incubation business, it also aims to further enhance shareholder's value
through the acquisition of businesses with good earnings and long-term
continuous growth prospects.
The company has strengthened its management team and believes it has the
necessary capabilities and capacity to forge ahead with its new business
strategy.
DIVIDENDS
No ordinary dividends have been declared for the year ended 31 December 2000.
On behalf of the board
LRC Coogan RD Grace
CEO Financial Director
30 March 2001
VIKING INVESTMENTS & ASSET MANAGEMENT LTD
(Incorporated in the Republic of South Africa)
(Registration Number 1998/004440/06)
("Viking" or "the company")
Directors
LRC Coogan, R Grace, E Hung, SR Bruyns*, KO Fordwor* (Ghanaian), RA Legh*
*Non-executive director
Registered office
c/o PricewaterhouseCoopers, 2 Eglin Road, Sunninghill, 2157
Bryanston Address
Block D, Peter Place Office Park, 54 Peter Place, Bryanston (PO Box 71337,
Bryanston 2021)
Stellenbosch address
Ou Brandewyn Museum, Aan-de-Wagenweg, Stellenbosch (PO Box 12504, Die Boord
7613)
Transfer Secretaries:
Computershare Services Ltd, 4th Floor, Edura, 41 Fox Street, Johannesburg, 2001
Telephone: (011) 463 2750 or (021) 886 4102.
Internet site: www.viam.co.za
