| Fri 4 Nov 2005, 12:29 | | New Corpcapital - Audited Results For The Year End |
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New Corpcapital - Audited Results For The Year Ended 31 August 2005
New Corpcapital Limited
(Incorporated in the Republic of South Africa)
(Registration number 2001/006539/06)
Share code: NCA & ISIN: ZAE000067765
("New Corpcapital")
AUDITED RESULTS FOR THE YEAR ENDED 31 AUGUST 2005
Consolidated balance sheet
at 31 August
Rm 2005 2004
ASSETS
Non-current assets 597,4 534,1
Financial product assets 277,1 273,1
Investments available for sale 25,3 30,6
Associates and joint ventures 47,7 2,0
Property, plant, equipment and intangibles - 0,1
Corpcapital Life policyholder investments,
interest bearing securities and deposits 247,3 228,3
Current assets 202,4 317,8
Cash and cash equivalents 180,6 28,1
Trading securities and liquid assets 0,5 2,9
Advances and other accounts receivable 15,1 284,4
Taxation assets 6,2 2,4
Total assets 799,8 851,9
EQUITY AND LIABILITIES
Equity
Share capital and premium 254,7 411,9
Retained losses (123,5) (199,0)
Total shareholders" equity 131,2 212,9
Total liabilities 668,6 639,0
Non-current liabilities 524,6 619,0
Corpcapital Life policyholder liabilities
- investment contracts 247,3 228,3
Long-term debt - 117,6
Deferred taxation 0,1 -
Financial products liabilities 277,2 273,1
Current liabilities 144,0 20,0
Short-term debt 132,0 5,0
Trading liabilities 0,5 3,6
Accounts payable 10,1 11,2
Taxation liabilities 1,4 0,2
Total equity and liabilities 799,8 851,9
Net asset value per share (cents) 34,5 21 290 000
Shares in issue ("000) 379,941 1
Summarised consolidated income statement
for the year ended 31 August
Rm 2005 2004
Revenue 69,5 124,4
Profit/(loss) before taxation 77,4 (148,4)
Taxation 1,9 (19,2)
Attributable profit/(loss) 75,5 (129,2)
Basic profit/(loss) per ordinary share (cents) 19,9 (12 920 000)
Basic headline profit/(loss) per ordinary share
(cents) 1,0 (17 350 000)
Analysis of headline earnings adjustments
Rm 2005 2004
Attributable profit/(loss) 75,5 (129,2)
Negative goodwill arising on acquisition
of subsidiaries of Corpcapital Limited
(in liquidation) group companies (66,1) -
Goodwill amortisation on associate (1,4) 0,6
Profits on sale of businesses - (20,1)
Profits on sale of associates (4,2) (24,8)
Headline profit/(loss) 3,8 (173,5)
Consolidated statement of changes in equity
for the year ended 31 August
Rm 2005 2004
Total shareholders" equity at beginning of year 212,9 478,6
Attributable profit/(loss) 75,5 (129,2)
Distributions of capital to former holding company (157,2) (136,5)
Total shareholders" equity at end of year 131,2 212,9
Summarised consolidated cashflow statement
for the year ended 31 August
Rm 2005 2004
Operating activities 57,6 11,1
Cash generated by operations 52,7 20,1
Dividends received - 3,1
Interest received 61,3 58,5
Interest paid (56,0) (67,6)
Taxation paid (0,4) (3,0)
Investing activities 11,0 210,9
Financing activities 83,9 (221,5)
Net change in cash and cash equivalents 152,5 0,5
Opening cash and cash equivalents 28,1 27,6
Closing cash and cash equivalents 180,6 28,1
Commentary
New Corpcapital ("NCA") was listed on the JSE Limited on 27 June 2005
following the liquidation of Corpcapital Limited ("CPA") and the termination
of its listing. A general meeting of CPA"s shareholders on 17 June 2005 had
approved the distribution of one share in NCA for every CPA share held by
every ordinary CPA shareholder, and the placing of CPA into voluntary
liquidation. NCA now owns and controls the assets and liabilities that were
formerly owned and controlled by CPA. Because NCA was previously an unlisted
wholly-owned subsidiary of CPA, the comparative figures in its financial
statements are not comparable with those of the current year.
NCA adopted CPA"s well-advanced strategy of realising group assets and
returning capital to shareholders. Remaining assets are reflected at fair
value and continue to be managed by the group. These include a dormant life
insurance company, whose life policies mature within two years, and the
remnants of a debtors" book, currently being collected.
The group"s investment in Forza Group Limited was sold during the period under
review. Details of the transaction were announced on 17 August 2005. The group
continues to administer the fulfilment of outstanding terms and conditions
relating to prior disposals of investments.
The long term liabilities and corresponding assets reflected in the financial
statements arise from ex-bank structured products and the dormant life
insurance company. While the group continues to consider opportunities to
dispose of the life insurance company and/or its underlying assets and
liabilities, it is presumed for the purposes of these financial statements
that it will be administered to maturity.
NCA declared a distribution of 10,5 cents per share payable to shareholders on
31 October 2005 with further distributions expected as soon as its financial
position allows.
Since year end the previously reported claim against CPA by Clear Channel
Independent, for which the company had bound itself as surety, has been
settled. The effect of the settlement has been taken into account in arriving
at the estimated future distributions to shareholders referred to below.
Through suretyships and indemnities furnished by the group it is indirectly
engaged in litigation, arbitration and potential arbitration proceedings.
These include claims by and against former director Nic Frangos; an
application to Court by CPA to order the Minister of Trade and Industry to
release the inspector"s report into CPA"s affairs and Frangos" counter
application to reopen that inspection; and a claim by the Brian Puttergill
Family Trust for the issue or delivery of shares in CPA. Based on the
information available and the opinions of its advisors, the group does not
expect these proceedings to materially affect its estimate of future
realisable net asset value. The potential outcome of litigation and the
arbitration proceedings nevertheless remains inherently uncertain.
The accounting adjustments, made in accordance with South African Statements
of Generally Accepted Accounting Practice, arising from the restructure of the
group, are taken to shareholders" equity via a R66,1 million credit to the
income statement, but have no effect on the anticipated distribution to
shareholders. The group"s operations are regarded as discontinuing and the
accounting policies adopted for the period are consistent with the previous
year. The policies comply in all respects with South African Statements of
Generally Accepted Accounting Practice.
Overhead costs have been reduced in line with the limited scope of activities
and all onerous contracts have been settled. The board remains committed to
cost effectively winding-up the group"s remaining operations.
On 17 June 2005 it was announced that the estimate of the amount shareholders
can expect in further distributions, over time and subject to the outcome of
disputed claims against the group, had increased to 36 cents per share. After
the distribution of 10,5 cents per share approved on 6 October 2005, the
directors estimate that the remaining distributions will amount to 25,5 cents
per share over time.
Tom Wixley Benji Liebmann
Chairman Director
4 November 2005
Audit report
The auditors PKF (Jhb) Inc. have issued their opinion on the group"s financial
statements for the year ended 31 August 2005. A copy of their unqualified
report is available for inspection at the Company"s registered office.
NEW CORPCAPITAL LIMITED (2001/006539/06)
1ST FLOOR 3 MELROSE SQUARE MELROSE ARCH
JOHANNESBURG 2196 - PO BOX 471917 - PARKLANDS 2121
TELEPHONE +27 11 684 1055/6/7 - TELEFAX +27 11 684 1058
DIRECTORS: D L BROOKING** N N LAZARUS* G B LIEBMANN
T A WIXLEY** (CHAIRMAN)
(*NON-EXECUTIVE) (**INDEPENDENT NON-EXECUTIVE)
Rosebank
4 November 2005
Sponsor
Java Capital (Proprietary) Limited
Date: 04/11/2005 12:29:10 PM Produced by the JSE SENS Department
