| Tue 24 Apr 2001, 0:00 | | Proper - Interim Results |
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PROPER GROUP LIMITED
(Formerly Proper Holding Limited)
(Incorporated in the Republic of South Africa)
(Registration number: 1998/001940/06)
"Proper" or "the Group"
INTERIM RESULTS FOR THE SIX MONTHS ENDED 28 FEBRUARY 2001
Financial Highlights
Net income before tax - up 33% compared to half-yearly profit forecast.
Headline earnings per share exceeds pro forma forecast by 91,34%
Summarised Group Income Statement
For the six months Year ended
ended 28 February 2001 31 August 2000
Unaudited Audited
R R
Turnover 83 003 987 123 556 798
Cost of sales (71 397 843) (112 679 198)
Gross profit 11 606 144 10 877 600
Other income 1 570 539 917 941
Gross income before
expenses 13 176 683 11 795 541
Operating expenses (7 262 384) (6 221 371)
Net income for the period
before finance charges 5 914 299 5 574 170
Finance charges (1 391 403) (1 429 598)
Net income for the period
before taxation 4 522 896 4 144 572
Taxation (1 300 656) (1 225 296)
Net income attributable to
Proper Group shareholders 3 222 240 2 919 276
Earnings per share (cents) 11,37 11,72
Headline earnings per
share (cents) 11,05 11,72
Fully diluted earnings
per share (cents) 10,93 11,72
Number of shares
- in issue 31 750 000 24 914 000
- weighted average 28 332 000 24 914 000
- fully diluted 28 631 821 24 914 000
SUPPLEMENTARY INFORMATION
28 February 2001 31 August 2000
Unaudited Audited
R R
Headline earnings
adjustment:
- Net income attributable
to ordinary shareholders 3 222 240 2 919 276
- Recognition of negative
goodwill as income (91 496) -
Headline earnings 3 130 744 2 919 276
Depreciation 285 351 235 555
Capital expenditure for
the period 963 467 12 286 430
Summarised Group Balance
Sheet
As at As at
28 February 2001 31 August 2000
Unaudited Audited
R R
ASSETS
Non-current assets 17 638 734 12 086 047
Tangible assets 15 042 852 11 888 922
Intangible assets 2 595 882 197 125
Current assets 39 434 297 6 927 542
Debtors 34 108 129 3 939 033
Loans receivable 1 637 772 938 068
Stock 3 688 396 2 050 441
Total assets 57 073 031 19 013 589
EQUITY AND LIABILITIES
Shareholders' equity 13 020 075 4 847 522
Share capital 317 500 249 140
Share premium 6 775 152 1 679 106
Retained income 5 927 423 2 919 276
Outside shareholders'
interest - 1 173 747
Deferred tax 643 262 386 876
Long-term liabilities 6 134 709 4 484 001
Current liabilities 37 274 985 8 121 443
Creditors 34 322 552 3 817 648
South African Revenue
Services 1 028 950 1 018 484
Bank overdraft 1 055 150 2 573 618
Short-term portion of
long-term liabilities 868 333 711 693
Total equity and
liabilities 57 073 031 19 013 589
Statement of Changes in Equity
Ordinary Share Retained
shares premium income Total
R R R R
Balance as at
1 September 2000 249 140 1 679 106 4 691 578 6 619 824
Shares issued during
the period 68 360 6 767 640 - 6 836 000
Pre-listing expenses - (1 671 594) - (1 671 594)
Capital loss with
sale of investment - - (127 439) (127 439)
Goodwill written off - - (91 496) (91 496)
Retained income
attributable to
pre-acquisition - - (1 767 460) (1 767 460)
Net profit for the
period - - 3 222 240 3 222 240
Balance as at
28 February 2001 317 500 6 775 152 5 927 423 13 020 075
Introduction
Proper Group Limited is pleased to release its maiden interim report following
a successful listing on the JSE Securities Exchange South Africa main board on
30 November 2000. Since listing the Group has experienced substantial growth in
transaction flow and profitability. The increased capital base and enhanced
profile of the Group following the listing, played a meaningful role to this
end.
Because of changes in most subsidiaries' year-ends and a complete restructuring
of the Group for listing purposes, a comparison of the interim results for the
six months ended 28 February 2001 with previous interim periods would not be a
meaningful exercise. The audited results for the year ended 31 August 2000 are
therefore published as comparative.
Commentary on Results
The Group has achieved pleasing results for the six months ended 28 February
2001. Net income after taxation of R3 222 240 not only exceeded the full prior
year's results of R2 919 275 (ended 31 August 2000), but exceeded the pro forma
profit forecast for the six months ended 28 February 2001 of R2 380 000 by 35,5
%. Headline earnings per share for the six months of 11,05 cent exceeded the
pro forma forecast by 91,34 %. Furthermore the Group's turnover of R83 003 987
for the period compares well with the forecast and represents 55,46 % of the
full year turnover forecast.
The Group issued a total of 6 836 000 new shares at R1 each on listing. As a
result of this issue and profits earned for the period, shareholders' equity
increased by R8 172 553 or 168,6% to R13 020 075 since 31 August 2000.
Accordingly net asset value per share increased from 19,5 cent to 41,0 cent at
28 February 2001.
The Group's effective tax rate of 28,7% is lower than the statutory rate due to
permanent differences under current tax legislation.
Prospects
The outlook for the second half of the year remains very positive. During the
first six months the Group intensified its focus on providing its clients with
professional services. Renewed staff training and the appointment of carefully
selected senior personnel in areas identified as requiring further expansion
will ensure that the high standard of professionalism that the Group's clients
have come to expect, is maintained. The Group is ideally positioned for dynamic
growth both locally and internationally. A number of joint venture agreements
and alliances have been entered into with a number of prominent local
enterprises. Negotiations with parties in Australia and New Zealand are
currently at an advanced stage. The Group is also in the process of expanding
the number and size of its regional offices. This will assist the Group in
providing clients in these new geographical areas a unique one-stop financial
service. The Group is confident that it will continue to grow its client base
and profitability, at above-average rates, in the foreseeable future.
Operations
Since 1985 the Group has successfully focused its operations on providing the
agri sector of the South African economy with a broad range of financial
services. The main operations are:
- Management consulting services;
- Financial and taxation services;
- Development and marketing of a financial software package aimed specifically
at the agricultural sector;
- Investment and risk management services; and
- Agricultural commodities broking.
Dividend
No interim dividend has been declared as profits earned are being utilised to
fund internal growth.
On behalf of the Board
CJ Botha (Chairman)
NF Botha (Managing)
Bloemfontein
24 April 2001
Executive Directors:
WA van der Walt, OG Olivier, WJB Groenewald, CJ Kirstein, BJ Willemse, H
Scholtz, TC Meyer, JG Schonfeldt, LL Louw and L Janse van Rensburg (Alt).
Registered Offices:
18 Kellner Street, Bloemfontein 9300
Transfer Secretaries:
Mercantile Registrars Limited, 11 Diagonal Street, Johannesburg 2001
