| Mon 2 Apr 2001, 0:00 | | The Don Group - Interim Results |
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The Don Group
(Don) (Registration No. 1946/023123/06)
Interim results for the six months ended 31 December 2000 and withdrawal of
cautionary announcement
Summarised consolidated income statement
Six months Six months Year
ended ended ended
Dec 2000 Dec 1999 June 2000
Unaudited Unaudited Audited
000s 000s 000s
Turnover 23 569 21 062 44 562
Operating profit 5 354 1 359 8 533
Net finance costs (4 869) (4 301) (9 876)
Rentals (3 400) (3 466) (6 600)
Depreciation (2 226) (2 259) (4 602)
Investment income 2 464 2 075 4 336
Loss before exceptional items (2 678) (6 592) (8 209)
Exceptional items - - (1 888)
Loss after exceptional items (2 678) (6 592) (10 097)
Taxation (STC) - - (72)
(2 678) (6 592) (10 169)
Loss attributable to ordinary
shareholders (2 678) (6 592) (10 169)
Headline loss (2 678) (6 592) (8 281)
Number of ordinary shares in issue
(000s) 294 485 294 485 294 485
Weighted average number of ordinary
shares in issue (000s) 294 485 294 485 294 485
Loss per share (cents) (0.91) (2.24) (3.45)
Headline loss per share (cents) (0.91) (2.24) (2.81)
Reconciliation of headline loss
Loss attributable to ordinary
shareholders (2 678) (6 592) (10 169)
Loss on disposal of properties - - 174
Loss on food division - - 1 714
Headline loss (2 678) (6 592) (8 281)
Consolidated balance sheet
Dec 2000 June 2000
Unaudited Audited
000s 000s
Employment of capital
Fixed assets 121 546 123 681
Prepaid rentals 25 745 25 745
Unlisted investments 29 933 27 469
Long-term receivables 385 385
Current assets
- Inventory and accounts receivable 9 284 7 416
- Cash and cash equivalents 464 439
Total assets 187 357 185 135
Current liabilities
- Creditors and provisions (18 442) (16 294)
- Short-term borrowings (28 125) (29 844)
140 790 138 997
Capital employed
Shareholders' interest 100 876 103 555
Long-term borrowings - interest bearing 39 914 35 442
140 790 138 997
Interest bearing debt plus commitments
less cash on hand to total
ders' funds (%) 67 63
Net asset value per share (cents) 34,3 35,2
Capital expenditure during the year (000s) 143 6 377
Capital committed and authorised (000s) 320 60
Directors valuation of unlisted
investments 29 933 27 469
Rental commitments (000s)
- Payable in the next year 10 900 7 605
- Payable thereafter 34 803 41 666
Contingent liabilities (000s) 812 6 174
Dec 2000 June 2000
Unaudited Audited
000s 000s
Summarised consolidated cash flow statement
Cash utilised by operations (2 636) (8 612)
Investing activities (92) (5 360)
Financing activities 3 294 2 502
566 (11 470)
Statement of changes in equity
Dec 2000 June 2000
Unaudited Audited
000s 000s
Balance at the beginning of the year 103 555 113 724
Loss for the year (2 678) (10 169)
Balance at the end of the year 100 877 103 555
Commentary
Withdrawal of cautionary announcement
Shareholders are referred to the cautionary announcement dated 29 December
2000, and are advised that negotiations have been terminated. Accordingly, Don
shareholders need no longer exercise caution in dealing in their Don shares.
Disposal of non-core assets
As previously advised, Don is continuing with its strategy in the disposal of
its non-core assets.
Review of interim results
Once again, the Group showed steady improvement in turnover and operating
profit in the six months ended 31 December 2000 which assisted in substantially
reducing losses.
Turnover amounted to R23,6m which is a 11,9 percent increase on the R21,1m
achieved in the interim period ended 31 December 1999.
Operating profit amounted to R5,4m, a 293 percent improvement on R1,4m for the
comparable period a year ago.
However, these gains were offset by increases in net finance charges of R4,9m
(Dec 1999: R4,3m).
This resulted in a headline loss of R2,7m. This is 59 percent less than the
loss of R6,6m reported at 31 December 1999.
Prospects
* The Group continues to improve operating profits.
* The Group's bankers continue to support our initiatives.
* The positive market sentiment and operational efficiency is reflected in
improved occupancies at increasing average room rates.
Thabiso Tlelai Chairman and Chief Executive Officer
Errol Grolman Director
Johannesburg 29 March 2001
Directors: Thabiso Tlelai (chairman), Errol Grolman, Sidney Ellerine, Marc
Wainer
Registered office: 1 Kernick Avenue, Melrose North, Johannesburg 2196
Transfer secretaries: Merit Registrars (Pty) Ltd, 6th Floor, JHS Executive
Centre, 112 Kerk Street, Johannesburg 2001
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