| Fri 14 Sep 2012, 8:00 | | BLACKSTAR GROUP SE - Half Year results for the six months ended 30 June 2012 |
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BCK 201209140007A
Half Year results for the six months ended 30 June 2012
BCK - Blackstar Group SE - Half Year results for the six months ended 30 June 2012
Blackstar Group SE
(Company number SE 4)
(registered as an external company with limited liability in the Republic of South Africa under registration number 2011/008274/10)
Share code: BCK
ISIN: GB00B0W3NL87
("Blackstar" or "the Company" or "the Group")
Half Year results for the six months ended 30 June 2012
Highlights
- Acquisition of 28% in Mvelaphanda Group Limited for R470.0 million (GBP37.4 million);
- Disposal of half of Blackstar's investment in Litha Healthcare Group Limited for R200.6 million (GBP15.7
million), generating a return of 4.6 times money in South African Rand and 5.1 times money in Pounds
Sterling;
- Significant progress in unlocking value in Mvelaphanda Group Limited;
- Completion of the migration to Malta;
- Blackstar now well positioned to pursue new opportunities.
Overview
The interim period under review has been a busy and successful period for Blackstar and encompassed the
acquisition of a significant stake in Mvelaphanda Group Limited ("MVG"), the completion of the disposal
of half of Blackstar's stake in Litha Healthcare Group Limited ("Litha") and the completion of the migration
to Malta.
The six month period under review saw a remarkable shift in our business as the MVG and Litha
transactions changed the balance of our investment portfolio. I am confident the portfolio now represents a
solid and attractive platform for future growth, which I believe is reflected in the fact that new long term
shareholders (mainly South African based) have bought into Blackstar.
A significant part of the first six months of the year was spent unlocking value in MVG, one of Blackstar's
largest investments to date, and considerable progress has been made in this regard. The MVG Board
appointed Blackstar to manage the administration of MVG and implement its strategy of unlocking value for
the benefit of shareholders. To this end Blackstar plays a management role within MVG. Blackstar structured
and arranged MVG's offer to acquire the entire issued ordinary share capital of Avusa Limited ("Avusa") that
it did not already beneficially own. Post completion of this transaction, which is expected on 25
September 2012, Blackstar will play an active role in the turnaround of Avusa and will hold approximately
11% of the equity. Avusa will be renamed Times Media Group Limited ("TMG") and will offer investors a
leveraged return.
Following the disposal of Litha, Blackstar was able to reduce its debt facility from Investec Bank Limited
("Investec") from R320.0 million (GBP25.9 million) to R 140.5 million (GBP11.0 million) in July 2012.
Investment and Market Review
MVG
In January 2012, Blackstar acquired 28% of MVG (representing 38.8% of the current gross intrinsic asset value) for
a total cash consideration of R470.0 million (GBP37.4 million), equivalent to R3.20 per MVG share, and has
become the largest single investor in MVG.
To fund this acquisition, Blackstar used R150.0 million (GBP12.0 million) of its own cash resources and
R320.0 million (GBP25.9 million) from a debt facility provided by Investec for the purpose of this transaction.
Andrew Bonamour and William Marshall-Smith were appointed to the MVG Board and assumed the roles of
Interim Chief Executive Officer and Interim Financial Director respectively with a view of unbundling and further
realising the value of MVG's remaining investment portfolio in the most efficient manner.
Since Blackstar's involvement, MVG has disposed of its remaining investments in Life Healthcare Group
Limited and Mvelaserve Limited for a total cash consideration of R421.8 million (GBP32.9 million).
MVG also announced its offer to acquire, through its wholly owned subsidiary Times Media Group Limited
("TMG", previously Richtrau No 229 (Pty) Limited), the entire issued ordinary share capital of Avusa that it
did not already beneficially own, as well as its intention thereafter to unbundle all its shares in TMG to its
shareholders. At the general meeting of Avusa shareholders, the ordinary and special resolutions were
successfully passed to approve the offer. All conditions of the transaction have been fulfilled and the
transaction becomes operative on 25 September 2012.
Post the conclusion of the transaction and the unbundling of TMG, Blackstar will have direct exposure to
Avusa through TMG and will hold approximately 11% of TMG directly. Blackstar representatives will be
appointed to the TMG board, and as promoter, Blackstar has agreed to be locked in for a minimum of three
years and will play an executive role in TMG. This transaction provides Blackstar with the unique opportunity
to be invested in one of South Africa`s leading media entertainment companies and to partner with a new
CEO and a strong management team in pursuing an encouraging growth strategy.
The remaining focus in MVG is the disposal of its investment in Absa Group Limited, which represents 61%
of MVG's intrinsic net asset value, as well as its stake in Group Five Limited. The realisation of these
investments are currently in advanced stages.
MVG has convened a general meeting in October 2012 to obtain shareholder approval to change its name to
New Bond Capital Limited. This will avoid any confusion with other companies who are independent of MVG
but also incorporate the name Mvela.
Litha
Blackstar completed the disposal of half of its interest in Litha for a cash consideration of R200.6 million
(GBP15.7 million) generating 4.6 times return on investment in South African Rand and 5.1 times return in
Pounds Sterling, which equates to a 32% IRR and 35% IRR respectively over the five year holding period.
The disposal proceeds were applied against the Investec debt facility that was taken out in January 2012.
Blackstar now holds 13.4% of Litha (representing 21.9% of Blackstar's current gross intrinsic asset value).
Litha's acquisition of Pharmaplan (Pty) Limited ("Pharmaplan") was concluded during the current reporting
period and is effective 1 July 2012. Subsequent to this transaction, Litha now has appropriate scale in all
three of its divisions, namely pharmaceuticals, vaccines and medical devices. I believe the Pharmaplan acquisition
will be a company changing event for Litha. We are excited about the prospects for Litha and we hope to play an
active role in assisting management in achieving their goals.
Profitability for the six months ended 30 June 2012 has been reduced as a result of a delayed government
tender in the medical devices division as well as transaction costs relating to the Pharmaplan acquisition.
Despite this, the pharmaceutical and vaccine divisions have performed well and Litha has produced a good
set of results. Litha's share price has increased from R2.85 at 31 December 2011 to R3.50 at 30 June 2012.
Steel Investments
Following the successful restructuring of its steel interests (representing 19.9% of Blackstar's current gross
intrinsic asset value), Global Roofing Solutions (Pty) Limited ("GRS"), the largest steel roofing and cladding
company in South Africa, is performing well and in line with budget.
During the current reporting period, Blackstar brought in an equity partner into Stalcor (Pty) Limited ("Stalcor")
who injected R5 million into the business. At the same time ordinary shares of Stalcor were allocated to the
equity partner, as well as to management and a customer loyalty trust, bringing Blackstar's equity holding
down to 50.1%. As the capital providers to Stalcor, Blackstar and its equity partner will be entitled to 18% of
retained income (sharing in a ratio of 90:10 in favour of Blackstar) prior to ordinary shareholders receiving
any equity benefits. Blackstar believes that this re-aligned structure will be beneficial to the turnaround and
success of Stalcor in the future.
Stalcor and Robor (Pty) Limited continue to be negatively affected by the weak steel market and general
trading conditions. These investments are however well managed and management continues to tightly
monitor stock levels and cash flows as well as investigating strategic initiatives for the businesses. Both of
these companies should hopefully benefit from the South African Government's proposed infrastructure
spend.
Other
The remainder of the portfolio fared well in the first half of 2012. The most significant of these being the
services derivative investment (representing 11.4% of the current gross intrinsic asset value), has performed
particularly well increasing in value by R13.8 million to R125.9 million (GBP9.8 million) at 30 June 2012. This
investment is expected to be realised by the end of October 2012 and the proceeds will be applied against
the Investec debt facility.
Blackstar continues to work with Shoprite Holdings Limited ("Shoprite") in order to resolve the shareholder
element of the dispute that exists between Shoprite and its transfer secretary in Zambia in respect of the
shares that Blackstar holds in Shoprite's secondary listing in Lusaka, Zambia. Blackstar hopes to resolve this
matter in the coming months.
During the interim period under review Blackstar completed the acquisition, through Blackstar Real Estate
(Pty) Limited, of a commercial property in Midrand, Gauteng, South Africa. The property is now occupied by
Litha under a 12 year lease. The Group continues to explore property opportunities in the South African real
estate sector, where rental obligations can be reasonably assessed and understood and the resultant returns
on equity can be enhanced by leverage.
Financial Review
The income statement separately reports profit generated by continuing and discontinued operations.
Discontinued operations include the following: the results of the associate Litha until June 2012, being the
date on which Blackstar disposed of half of its Litha shares and it ceased to be treated as an associate; the
results of Stalcor's Baldwins division (which was sold to Robor), and two of Stalcor's branches (which were
closed); and the results of Ferro Industrial Products (Pty) Limited ("Ferro") which was disposed of effective
June 2011. Comparatives have been restated to separately disclose these discontinued operations.
The operating profit before net investments of GBP0.4 million for the six months ended 30 June 2012
therefore comprises the results of the remaining trading businesses, GRS and Stalcor, as well as the share
of profits of the remaining associates (excluding Litha). The trading businesses have successfully managed
to decrease administrative and sales and distribution costs by GBP2.2 million when compared to the same
comparative period ending 30 June 2011. In addition to this, no impairments arose on the goodwill and
intangible assets and as a result the operating profit has increased by GBP1.1 million when compared to the
comparative reporting period.
Net gains on investments amounted to GBP12.5 million for the current reporting period. This mainly includes
unrealised fair value gains recognised on the investment in MVG of GBP2.2 million, GBP1.0 million on the
fair valuing of the services derivative investment and a GBP9.2 million gain recognised when the remaining
investment in Litha was transferred from the investment in associate category to investments at fair value
through profit and loss and fair valued to its closing share price at 30 June 2012.
Fee income generated from investments of GBP0.7 million covers operating costs of GBP1.0 million, thus
resulting in net corporate office running costs of GBP0.3 million.
The profit after tax from continuing operations for the six months ended 30 June 2012 amounted to GBP10.7
million.
A profit of GBP8.0 million was generated by discontinued operations and comprises equity accounted
earnings of Litha amounting GBP5.5 million to date of disposal of 50% of the Litha investment, and a net gain
of GBP2.5 million recognised on disposal of the investment.
The Group reported a profit attributable to equity holders of the parent of GBP18.8 million, and basic and
diluted earnings of 22.0 pence per share and headline earnings of 14.1 pence per share.
Total equity attributable to equity holders has increased by GBP35.1 million from GBP67.5 million at 31
December 2011 to GBP102.6 million at 30 June 2012. This is mainly as a result of an increase in retained
earnings of GBP31.9 million which includes GBP15.4 million recognised on disposal of 50% of Stalcor to non
controlling shareholders and GBP18.8 million profit attributable to equity holders of the parent.
Investments at fair value through profit and loss increased from GBP14.1 million to GBP73.4 million and
mainly comprises Blackstar's remaining interest in Litha at a fair value of GBP19.9 million, GBP8.5
million services derivative investment and the investment in MVG of GBP39.0 million. Blackstar's 28% interest
in MVG provides the Group with significant influence, however the investment has not been equity accounted as an
associate but rather included in investments at fair value through profit and loss, as it is held as part of
the Group's investment portfolio at fair value.
Investments in associates declined by GBP16.3 million during the current reporting period as a result of the
part disposal of Litha and the remaining interest being transferred to investments at fair value through profit
and loss.
Borrowings and other financial liabilities amounted to GBP41.7 million compared to GBP14.8 million at 31
December 2011 and includes borrowings of GBP26.5 million at 30 June 2012 which was raised to finance
the acquisition of the interest in MVG.
In June 2011, Ferro was presented as a disposal group held for sale and its assets and liabilities were
therefore separately disclosed on the face of the balance sheet. Ferro was sold effective July 2011.
Cash and cash equivalents declined by GBP16.0 million during the current reporting period. Significant cash flow
movements during the period included a cash outflow of GBP39.7 million on additions to investments less inflows of
GBP26.6 million on debt raised to finance the investment in MVG.
Dividends
As the Company is currently working towards reducing its debt facility with Investec, the Board has resolved
not to declare a dividend.
Migration to Malta
In May 2012, the Company completed the transfer of its registered office from the United Kingdom to Malta
and its tax residency from Luxembourg to Malta.
The move to Malta is starting to deliver improved efficiencies and will significantly reduce the administrative
and legal costs which arise from being present in two jurisdictions.
Post Balance Sheet Events
The unbundling of MVG's investment in TMG to its shareholders will be concluded in September 2012 and
will result in Blackstar holding a direct stake in TMG (previously the Avusa business) thereby providing
the Group with direct exposure to one of South Africa`s leading media entertainment companies.
There were no other post balance sheet events to report.
Current Trading and Outlook
The first half of 2012 has been successful for Blackstar. The Group will continue to focus its attention on
unlocking further value from its current portfolio of investments. Blackstar is now well positioned to pursue a
range of interesting, new, net asset value ("NAV") enhancing opportunities.
More than 50% of Blackstar's shareholders are now South African based and the JSE listing is beginning to
reflect the desired benefits we envisaged when we embarked on the secondary listing in August 2011. Blackstar's
South African share continued to trade above its listing price subsequent to the declaration of special dividend
in November 2011, which is indicative of the confidence that investors have in the Blackstar Group to provide
consistent returns. Going forward, Blackstar will publish its results in both Pounds Sterling and South African
Rands. Blackstar is currently trading in line with its peer group in South Africa and the Board is confident that
the current investments offer investors a solid platform for growth and further opportunities.
I recommend that shareholders refer to Annexure A, which provides a breakdown of Blackstar's most recent
intrinsic NAV as at 31 August 2012. I believe this is a useful tool in identifying the true inherent
value of each investment held.
Andrew Bonamour
Malta
14 September 2012
Annexure A
Intrinsic NAV as at 31 August 2012
Unaudited Unaudited
GBP'000 R'000
Mvelaphanda Group Limited 36,012 479,476
Litha Healthcare Group Limited 20,338 270,789
Global Roofing Solutions (Pty) Limited 11,642 155,000
Services derivative 10,605 141,198
Robor (Pty) Limited 3,830 51,000
Stalcor (Pty) Limited 3,004 40,000
Blackstar Real Estate (Pty) Limited 2,067 27,525
Other listed 1,980 26,359
Other unlisted 549 7,314
Net debt (7,900) (105,189)
Intrinsic NAV 82,127 1,093,472
Intrinsic NAV per share (in Sterling/Rands) 1.00 13.32
Ordinary share price on 31 August 2012
(in Sterling/Rands) 0.725 9.80
Ordinary share price discount to NAV 28% 26%
See through NAV per share (in Sterling/Rands) 1.05 13.97
Notes:
1 The intrinsic NAV provides a measure of the underlying value of the Group's assets and does not indicate when the investments
will be realised, nor does it guarantee the value at which the investments will be realised.
2 For the purposes of determining the intrinsic values, listed investments on recognised stock exchanges are valued using quoted
bid prices and unlisted investments are shown at directors' valuation, determined using the discounted cash flow methodology.
This methodology uses reasonable assumptions and estimations of cash flows and terminal values, and applies an appropriate
risk-adjusted discount rate that quantifies the investment's inherent risk to calculate a present value. Given the subjective nature
of valuations, the Group is cautious and conservative in determining the valuations and has a track record of selling its unlisted
investments in the ordinary course of business above the levels at which it values them.
3 The investment in Blackstar Real Estate (Pty) Limited is carried at cost, being the capital invested plus accrued interest, where
applicable.
4 The Group's investment in Mvelaphanda Group Limited trades at a discount to its NAV. The see through NAV has been
presented, which is the NAV as reported above, adjusted for the estimated discount.
5 All amounts have been translated using the closing exchange rates at 31 August 2012.
6 Net debt represents debt less cash at the centre, excluding subsidiaries and comprises Investec debt less cash resources.
7 Other listed mainly comprises the investment in Shoprite Holdings Limited.
8 Other unlisted mainly comprises the investment in Navigare Securities (Pty) Limited.
Consolidated income statement
for the six months ended 30 June 2012
As restated* As restated*
Unaudited Unaudited Unaudited
Six months to 30 Six months to 30 Year to
June June 31 December
2012 2011 2011
GBP'000 GBP'000 GBP'000
Continuing operations
Revenue 39,441 49,303 91,058
Cost of sales (33,974) (42,450) (78,887)
Gross profit 5,467 6,853 12,171
Sales and distribution costs (769) (1,226) (1,551)
Administrative expenses Trading businesses
Administrative expenses (4,619) (6,401) (9,885)
Impairment of goodwill - (768) (1,945)
Impairment of intangible assets - (286) (861)
(4,619) (7,455) (12,691)
Other income Trading businesses 299 356 497
Share of profits of associates 16 6 43
Operating profit/(loss) before net investment
income/(loss) 394 (1,466) (1,531)
Net investment income/(loss)
Net gains/(losses) on investments 12,475 (1,573) 632
Fees, dividends and interest from loans, receivables
and investments 1,011 481 866
13,486 (1,092) 1,498
Administrative expenses - Investments
Administrative expenses - Other investment activities (1,021) (1,819) (3,288)
Administrative expenses - Property investments (173) - -
Exceptional costs Other investment activities (207) - (2,374)
Foreign exchange losses (4) (81) (1,316)
Impairment of goodwill - - (9,437)
(1,405) (1,900) (16,415)
Other income - Property investments 311 - 454
Profit/(loss) from operations 12,786 (4,458) (15,994)
Finance income 129 63 191
Finance costs (1,970) (780) (1,732)
Profit/(loss) before taxation 10,945 (5,175) (17,535)
Taxation (208) (133) (421)
Profit/(loss) from continuing operations 10,737 (5,308) (17,956)
Discontinued operations
Profit from discontinued operations net of taxation 7,963 6,695 10,739
Profit/(loss) for the period 18,700 1,387 (7,217)
Profit/(loss) for the period attributable to:
Equity holders of the parent 18,760 950 (7,584)
Non controlling interests (60) 437 367
18,700 1,387 (7,217)
Basic and diluted earnings/(losses) per ordinary share
attributable to equity holders (in pence) 22.00 1.27 (9.62)
Basic and diluted earnings/(losses) per ordinary share
attributable to equity holders from continuing
operations (in pence) 12.66 (6.95) (22.65)
* The comparative information for the six months to 30 June 2011 and the year to 31 December 2011 was restated
to present income generated and expenses incurred by discontinued operations seperately from continuing operations.
Headline earnings reconciliation ^
Six months to Six months to Year to
30 June 30 June 30 December
2012 2011 2011
GBP000 GBP000 GBP000
Profit/(loss) for the period attributable to equity
holders of the parent 18,760 950 (7,584)
Adjusted for:
Exceptional gain on dilution of interest in associate - (2,188) (2,188)
Gain on partial disposal of investment in associate (2,531) - -
Gain on disposal of discontinued operations - (2,970) (7,861)
Impairment of intangible assets - 286 861
Impairment of goodwill - 768 11,382
Impairment of property, plant and equipment - - 202
Non-headline items included in equity accounted earnings
of associates (4,257) (1) (248)
Loss/(profit) on disposal of property, plant and equipment 36 18 (91)
Total tax effects of adjustments (10) (85) (272)
Total non controlling interests effects of adjustments - 31 15
Headline earnings/(losses) 11,998 (3,191) (5,784)
Basic and diluted headline earnings/(losses) per ordinary share
attributable to equity holders (in pence) 14.07 (4.26) (7.34)
^ Disclosure of headline earnings has been provided in accordance with the JSE Listings Requirements.
Consolidated statement of comprehensive income
for the six months ended 30 June 2012
Unaudited Unaudited Audited
Six months to Six months to Year to
30 June 30 June 31 December
2012 2011 2011
GBP'000 GBP'000 GBP'000
Profit/(loss) for the period 18,700 1,387 (7,217)
Other comprehensive income/(loss):
Currency translation differences on investments and Rand
denominated assets and liabilities (1,231) (2,132) (3,966)
Currency translation differences on translation of foreign
subsidiaries and associates (222) (531) (5,109)
Release of foreign currency translation reserve on disposal
of associate/subsidiary 2,407 - (1,261)
Net comprehensive income/(loss) recognised directly
in equity 954 (2,663) (10,336)
Total comprehensive income/(loss) for the period 19,654 (1,276) (17,553)
Attributable to:
Equity holders of the parent 19,714 (1,885) (18,095)
Non controlling interests (60) 609 542
19,654 (1,276) (17,553)
Consolidated statement of changes in equity
for the six months ended 30 June 2012
Foreign
Capital Treasury currency Attributable Non
Share Share redemption shares Retained translation to equity controlling
capital premium reserve reserve earnings reserve holders interests Total equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance as at 31 December 2010 50,130 - 2,893 - 22,569 14,604 90,196 (2,474) 87,722
Total comprehensive income/(loss) for
the period
Profit for the period - - - - 950 - 950 437 1,387
Other comprehensive income/(loss) for
the period - - - - - (2,835) (2,835) 172 (2,663)
- - - - 950 (2,835) (1,885) 609 (1,276)
Release of foreign currency translation
reserve on disposal of investments - - - - 58 (58) - - -
Reduction in non controlling interests
arising on subsidiaries buy-back of
shares from non controlling
shareholders - - - - (4,577) - (4,577) 4,577 -
Final dividend paid - - - - (673) - (673) - (673)
Balance as at 30 June 2011 50,130 - 2,893 - 18,327 11,711 83,061 2,712 85,773
Total comprehensive loss for the
period
Loss for the period - - - - (8,534) - (8,534) (70) (8,604)
Other comprehensive (loss)/income for
the period - - - - - (7,676) (7,676) 3 (7,673)
- - - - (8,534) (7,676) (16,210) (67) (16,277)
Capital raising 6,923 1,974 - - - - 8,897 - 8,897
Buy-back of ordinary shares - - - (2,272) - - (2,272) - (2,272)
Arising on reclassification of
investment, now a subsidiary - - - - - - - 6 6
Reduction in non controlling interests
arising on acquisition of additional
interests in subsidiary - - - - (415) - (415) 415 -
Arising on disposal of subsidiary - - - - - - - (3,126) (3,126)
Release of foreign currency translation
reserve on disposal of investments - - - - 757 (757) - - -
Dividend paid - - - - (5,544) - (5,544) - (5,544)
Balance as at 31 December 2011 57,053 1,974 2,893 (2,272) 4,591 3,278 67,517 (60) 67,457
Total comprehensive income/(loss)
for the period
Profit/(loss) for the period - - - - 18,760 - 18,760 (60) 18,700
Other comprehensive income
for the period - - - - - 954 954 - 954
- - - - 18,760 954 19,714 (60) 19,654
Treasury shares cancelled (2,144) - 2,144 2,272 (2,272) - - - -
Reduction in non controlling
interests arising on rights issue by
subsidiary - - - - (25) - (25) 25 -
Increase in non controlling interests
arising on part disposal of subsidiary - - - - 15,433 - 15,433 (15,433) -
Balance as at 30 June 2012 54,909 1,974 5,037 - 36,487 4,232 102,639 (15,528) 87,111
A final dividend of 0.90 pence per ordinary share was declared on 6 May 2011.
A special dividend of 6.5 pence per ordinary share was declared on 11 November 2011.
Consolidated balance sheet
as at 30 June 2012
Unaudited Unaudited Audited
30 June 30 June 31 December
2012 2011 2011
GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment 6,817 9,684 7,563
Investment properties 6,864 - 7,018
Goodwill 2,863 13,829 2,884
Intangible assets 2,783 4,128 2,947
Investments in associates 123 17,422 16,437
Investments classified as loans and receivables 136 448 144
Investments at fair value through profit and loss 64,225 8,997 3,687
Other financial assets - 16 -
Deferred tax assets 114 108 92
83,925 54,632 40,772
Current assets
Investments classified as loans and receivables 1,294 2,614 2,042
Investments at fair value through profit and loss 9,146 7,868 10,398
Other financial assets - - 2
Current tax assets 92 28 24
Trade and other receivables 30,437 22,836 11,540
Inventories 12,640 19,699 10,042
Cash and cash equivalents 4,285 10,844 20,334
57,894 63,889 54,382
Assets in disposal group classified as held for sale - 31,372 -
57,894 95,261 54,382
Total assets 141,819 149,893 95,154
Non-current liabilities
Borrowings (6,976) (2,038) (7,077)
Other financial liabilities (539) (1,488) (785)
Provisions (132) (171) (199)
Deferred tax liabilities (1,383) (1,935) (1,499)
(9,030) (5,632) (9,560)
Current liabilities
Borrowings (26,765) (61) (602)
Other financial liabilities (7,403) (8,268) (6,308)
Provisions - (11) (93)
Current tax liabilities (138) (108) (85)
Trade and other payables (11,372) (30,010) (11,044)
Bank overdrafts - (2,614) (5)
(45,678) (41,072) (18,137)
Liabilities directly associated with assets in disposal
group classified as held for sale - (17,416) -
(45,678) (58,488) (18,137)
Total liabilities (54,708) (64,120) (27,697)
Total net assets 87,111 85,773 67,457
Equity
Share capital 54,909 50,130 57,053
Share premium 1,974 - 1,974
Capital redemption reserve 5,037 2,893 2,893
Treasury shares reserve - - (2,272)
Foreign currency translation reserve 4,232 11,711 3,278
Retained earnings 36,487 18,327 4,591
Total equity attributable to equity holders 102,639 83,061 67,517
Non controlling interests (15,528) 2,712 (60)
Total equity 87,111 85,773 67,457
Net asset value per share (in pence) 120 111 79
Consolidated cash flow statement
for the six months ended 30 June 2012
Unaudited Unaudited Audited
Six months to Six months to Year to
30 June 30 June 31 December
2012 2011 2011
GBP'000 GBP'000 GBP'000
Cash flow from operating activities
Cash (utilised)/generated by operations (5,351) 4,127 2,013
Interest received 129 180 310
Interest paid (270) (1,845) (1,627)
Dividends received 230 - 230
Taxation paid (331) (983) (1,431)
Cash (absorbed)/generated by operating activities (5,593) 1,479 (505)
Cash flow from investing activities
Purchase of property, plant and equipment (132) (917) (1,164)
Purchase of investment property - - (5,018)
Additions to investments classified as loans and
receivables (640) (1,653) (1,883)
Purchase of investments at fair value through profit and
loss (39,045) (2,914) (2,965)
Acquisition of subsidiaries, net of cash acquired - - 2
Proceeds from disposal of property, plant and equipment 14 8 446
Proceeds from disposal of investments 2,828 1,182 3,080
Disposal of discontinued operations, net of cash disposed - 12,168 23,006
Cash (absorbed)/generated by investing activities (36,975) 7,874 15,504
Cash flow from financing activities
Proceeds from borrowings 26,520 - 4,728
Repayment of borrowings (861) (795) (2,181)
Movement in other financial liabilities (including short-
term funding facilities) 909 (15,707) (16,804)
Buy-back of ordinary shares - - (2,272)
Capital raising - - 8,897
Dividends paid to equity holders of the parent - (673) (6,217)
Cash generated/(absorbed) by financing activities 26,568 (17,175) (13,849)
Net (decrease)/increase in cash and cash equivalents (16,000) (7,822) 1,150
Cash and cash equivalents at the beginning of the period 20,329 19,195 19,195
Exchange losses on cash and cash equivalents (44) (16) (16)
Cash and cash equivalents at the end of the period 4,285 11,357 20,329
For further information, please contact:
Blackstar Group SE Bryan Moyer / Lesley Micallef + 356 2144 6377
Liberum Capital Limited Chris Bowman / Christopher Britton + 44 (0) 20 3100 2222
PSG Capital (Pty) Limited David Tosi / Willie Honeyball + 27 (0) 21 887 9602
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