| Mon 21 May 2001, 0:00 | | Iprop Innovative Property Solutions - Unaudited Re |
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IPROP INNOVATIVE PROPERTY SOLUTIONS
(Incorporated in the Republic of South Africa)
(Registration number 1968/001239/06) ("iProp" or "the company")
THE UNAUDITED RESULTS OF IPROP HOLDINGS LIMITED AND ITS SUBSIDIARIES
FOR THE HALF YEAR ENDED 31 MARCH 2001 AND DIVIDEND ANNOUNCEMENT
Abridged Consolidated Income Statement
Unaudited Unaudited Audited
for the for the for the
half year ended half year ended year ended
31 March 2001 31 March 2000 30 Sept 2000
R'000 R'000 R'000
Revenue 32 186 15 677 54 729
Operating profit/(loss) 17 516 (3 440) 15 737
Investment income 9 309 4 928 14 886
Financing cost (21 924) (1 212) (20 766)
Exceptional items (note) (3 978) 184 (2 049)
Profit before taxation 923 460 7 808
Taxation (2 033) 5 1 102
Profit after taxation 2 956 455 6 706
- before exceptional items -
headline earnings 5 666 271 8 085
- from exceptional items (2 710) 184 (1 379)
Profit attributable to shareholders 2 956 455 6 706
Note: Exceptional items result mainly from restructuring costs of R1,3
million and the reversal of net revenue
of R2,9 million. Details of the net revenue reversal were given to
shareholders in the press announcement
published on 1 February 2001.
Determination of headline earnings
Attributable profit for the period
per income statement 2 956 455 6 706
Adjusted for:
Restructuring costs 919 - 1 563
Reversal of net revenue
relating to certain property
sales contracts cancelled
in the current period 2 039 - -
Net profit on the sale of
investment buildings (248) (184) (184)
Headline earnings for the period 5 666 271 8 085
Earnings per share ("EPS")
Shares in issue (000's) 15 677 15 677 15 677
Weighted average number of ordinary shares on
which diluted headline earnings and diluted basic
earnings per share are based
(000's) 16 295 15 677 16 010
Headline earnings per share (cents) 36 2 52
Earnings per share from
exceptional items (cents) (17) 1 (9)
Earnings per share from profit
attributable
to shareholders (cents) 19 3 43
Fully diluted headline earnings per
share (cents) 35 2 50
Dividends per share (cents) 10 - 25
Abridged Consolidated Balance Sheet
Unaudited Unaudited Audited
for the for the for the
half year ended half year ended year ended
31 March 2001 31 March 2000 30 Sept 2000
R'000 R'000 R'000
ASSETS
Non-current assets
Property investments 290 292 30 804 310 890
Land, mineral rights, plant and
equipment 3 1353 643 3 256
Townships and developments in
progress 50 499 37 312 52 390
Other investments - - 11 192
Non-current receivables 8 830 8 674 8 467
352 756 80 433 386 195
Current assets
Proclaimed township land stock 37 393 35 868 34 768
Receivables and pre-payments 27 538 72 236 68 992
Other investments 11 622 - -
Cash 2 200 48 259 3 481
Total assets 431 509 236 796 493 436
EQUITY AND LIABILITIES
Capital and reserves
Interest of shareholders in
iProp Holdings Limited 176 723 173 003 175 335
Non-current liabilities
Borrowings 204 300 11 275 204 696
Deferred taxation 3 413 1 906 5 542
Retirement benefit obligations 13 630 20 030 20 960
Current liabilities
- interest bearing 1 446 - 5 034
- non-interest bearing 31 997 30 582 81 869
Total equity and liabilities 431 509 236 796 493 436
Abridged Consolidated Cash Flow Statement
Unaudited Unaudited Audited
for the for the for the
half year ended half year ended year ended
31 March 2001 31 March 2000 30 Sept 2000
R'000 R'000 R'000
Cash flow from operating activities
Cash generated by operations 16 542 149 21 795
Interest paid (15 026) (1 212) (8 415)
Taxation paid (724) (58) (128)
Dividends paid (3 919) (3 919) (3 721)
Restructuring costs (1 313) - (2 233)
(4 440) (5 040) 7 298
Cash flow from investing activities
Investment income 2 411 2 308 2 858
Crown Consolidated Gold Recovery
loan note realised 35 347 - -
Acquisition of investment
portfolio from Mawenzi (28 528) - (50 000)
Purchase of property, plant and
equipment (4 621) (2 353) (4 146)
Purchase of investments - - (10 608)
Proceeds on disposal of investment property, plant
and equipment 3 491 480 1 920
8 100 435 (59 976)
Cash flow from financing activities
(Repayment of)/proceeds from
long term borrowings (1 353) 172 (1 567)
Net increase/(decrease) in cash
and cash equivalents 2 307 (4 433) (54 245)
Cash and cash equivalents at
beginning of year (1 553) 52 692 52 692
Cash and cash equivalents at
end of period 754 48 259 (1 553)
- cash 2 200 48 259 3 481
- bank overdraft included in interest bearing
current liabilities (1 446) - (5 034)
Abridged consolidated statement of changes in equity
Reserve arising
on surplus on
disposal of
Share ShareAccumulatedinvestments
Capital Premium Profitand subsidiaries Total
R'000 R'000 R'000 R'000 R'000
Balance at 1 October 199915 677 30 138 116 651 10 082 172 548
Net profit for the year - - 6 706 - 6 706
Dividend declared - - (3 919) - (3 919)
Balance at 1 October 200015 677 30 138 119 438 10 082 175 335
Net profit for the period - - 2 956 - 2 956
Dividend declared - - (1 568) - (1 568)
Balance at 31 March 2001 15 677 30 138 120 826 10 082 176 723
Abridged Consolidated Segmental Analysis
Unaudited Unaudited Audited
for the for the for the
half year ended half year ended year ended
31 March 200131 March 200030 Sept 2000
R'000 R'000 R'000
Revenue
Land development and sales 5 359 15 677 30 257
Property investment and development26 827 - 24 472
Revenue as reported 32 186 15 677 54 729
Operating profit
Land development and sales 2 361 (3 440) (1 535)
Property investment and development 15 155 - 17 272
Operating profit as reported 17 516 (3 440) 15 737
Capital Expenditure and Commitments
Unaudited Unaudited Audited
for the for the for the
half year ended half year ended year ended
31 March 2001 31 March 2000 30 Sept 2000
R'000 R'000 R'000
Capital expenditure 4 621 2 353 283 963
Contracted capital commitments 1 000 2 486 1 000
COMMENTARY
Accounting policies
The same accounting policies and methods of measurement and recognition
applied in the September 2000 annual financial statements have been followed
in preparing this report. The report complies with the requirements of AC
127, Interim Financial Reporting.
Review of results
Headline earnings
Headline earnings for the six months ended 31 March 2001 are R5,67 million
(2000: R0,27 million).
Operating profit
As a result of scaled down operations it was possible to achieve an improved
performance in the land sales division. The loss of R1,2 million (2000: R3,4
million loss) was offset by the net adjustment of R3,5 million resulting
from the reversal of the retirement benefit obligation provision
(actuarially valued) reduced by an increase in the provision for bad debts.
The property investment portfolio has met expectations, reinforcing the need
for the change in strategy achieved by the acquisition of the Mawenzi
property portfolio.
Investment income and financing costs
Investment income and financing costs are not comparable with those of the
corresponding prior period due mainly to the acquisition of the property
investment portfolio with effect 1 May 2000.
Taxation
Non-taxable preference dividend income included in investment income offset
by the reversal of deferred taxation on the retirement benefit obligation
provision, resulted in the tax credit reported.
Prospects
Traditionally, the land sales division's performance in the second half of
the financial year exceeds that of the first half and this year should be no
exception.
During the past six months the company has further consolidated its efforts
to deliver sustainable earnings to shareholders by increasing income from
property investment portfolio activities. The disposal of the long-term land
and mineral rights remains a high priority.
The company anticipates growth in earnings this year over that achieved in
the previous year.
Interim dividend
An interim dividend (Number 50) of 10 cents per share (1999 : nil) has been
declared in terms of the accompanying dividend notice.
For and on behalf of the board
JC Hall (Chairman) JAA Diepenbroek (Managing Director)
16 May 2001
Declaration of dividend number 50
Notice is hereby given that an interim dividend of 10 cents per share has
been declared payable on 3 July 2001 to shareholders registered in the books
of the company at the close of business on 15 June 2001.
The transfer books and register of members will be closed from 16 June 2001
to 22 June 2001 both days inclusive for the purpose of determining those
shareholders to whom the dividend will be paid.
Where applicable dividends will be electronically transferred to
shareholders' bank or building society accounts on 3 July 2001. In the
absence of suitable mandates, dividend cheques dated 3 July 2001 will be
posted to shareholders on or about 29 June 2001.
The dividend is declared in the currency of the Republic of South Africa
and, where applicable will be converted into United Kingdom currency for
payment by cheque drawn on a bank in London to those shareholders whose
addresses in the register of members are overseas.
The rate of exchange at which the dividend will be converted to United
Kingdom currency will be the telegraphic rate of exchange between South
Africa and the United Kingdom ruling on the first business day after 18 June
2001 on which foreign currency dealings are transacted.
By order of the board
iProp Services (Proprietary) Limited per DR Harris FCIS
Secretaries
Johannesburg 16 May 2001
Registered office
Block A Crownwood, 100 Northern Parkway,
Ormonde, Johannesburg
PO Box 27, Crown Mines 2025
Transfer secretaries
Mercantile Registrars Limited
11 Diagonal Street, Johannesburg
PO Box 1053, Johannesburg 2000
Directors
JC Hall CBE (Non-executive Chairman), JAA Diepenbroek* BSc (Eng), Pr (Eng),
MBA (Managing Director), PTW Curtis CA(SA), P Heydenrych* BA LLB, LLM
(PropertyLaw), NC Molepo BCom (Unisa), Dip APP, EPM Moses, JL Nunes* CA(SA),
CG Steyn FCIS * Excecutive Directors
