| Thu 24 May 2001, 0:00 | | Yabeng Investment Holding Company Limited - Audite |
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YABENG INVESTMENT HOLDING COMPANY LIMITED
(Registration number 1983/070126/06)
PROVISIONAL GROUP RESULTS
for the year ended 28 February 2001
Income Statements
Group (R000) Company (R000)
Audited Audited Audited Audited
2001 2000 2001 2000
15 265 19 791 Revenue - -
(1 653) 2 475) Cost of sales - -
13 612 17 316 Gross profit - -
3 587 2 638 Investment income 4 087 5 661
3 541 1 411 Other operating 46 561
income
(18 032) (30 288) Operating expenses (3 020) (4 797)
(833) (1 862) Selling and - -
marketing expenses
(13 009) (20 296) Other operating - -
expenses
(4 190) (8 130) Administration (3 020) (4 797)
expenses
2 708 (8 923) Operating profit 1 628 910
/(loss)
12 308 19 707 Net gains and 15 695 19 707
losses on disposal
of investments
(19 804) (23 453) Provision for (15 167) (28 263)
losses on investments
(7 959) (1 932) Write off of - -
goodwill
(3 300) (3 754) Guarantee expenses (3 300) (3 754)
(12 733) - Write down of - -
assets to estimated
value
10 455 821 Income from - -
associates
(5 629) (7 649) Financing costs (1 165) (3 526)
(23 954) (25 183) Loss before taxation (2 309) (14 926)
3 365 - Taxation credit 3 365 -
(20 589) (25 183) (Loss)/profit after 1 056 (14 926)
taxation
4 072 5 399 Minority interest - -
(16 517) (19 784) (Loss)/profit for 1 056 (14 926)
the year
(23,7) (28,3) Loss per ordinary
share (cents)
16,7 (20,2) Headline earnings/
(loss) per ordinary
share (cents)
69 814 69 814 Number of shares in issue (000)
Headline earnings
Headline earnings are calculated by eliminating from attributable losses or
earnings any gains or losses resulting from the disposal or revaluation of
investments and the charge or credit resulting from the amortisation of
goodwill.
BALANCE SHEETS
Group (R000) Company (R000)
Audited Audited Audited Audited
2001 2000 2001 2000
Assets
142 130 197 736 Non current assets 98 295 137 592
100 028 138 782 Investments 98 815 137 630
44 125 79 784 Listed shares 44 125 79 784
6 967 6 967 Loans and debentures 6 967 6 967
48 936 52 031 Associates 39 376 43 504
- - Subsidiaries 7 827 7 337
- 7 355 Intangible assets - -
42 102 51 599 Property, plant 520 38
and equipment
34 788 9 519 Current assets 31 105 5 886
581 810 Inventory - -
2 941 2 436 Trade and other 687 43
debtors
2 289 - Taxation 2 289 -
280 134 Short term loans - -
28 697 6 139 Bank and cash 28 129 5 843
balances
176 918 207 255 Total assets 129 920 143 516
Equity and liabilities
Equity
111 084 111 084 Share capital 111 084 111 084
3 281 5 536 Non distributable - -
reserves
21 745 34 673 Retained earnings 14 673 13 617
136 110 151 293 Total equity 125 757 124 701
4 101 6 261 Minority interest - -
Non current liabilities
10 172 8 440 Long term borrowings - -
26 535 41 261 Current liabilities 4 163 18 815
6 252 3 989 Trade and other 3 641 2 107
creditors
522 557 Unclaimed dividends 522 557
- 1 151 Taxation - 1 151
- 15 000 Short term loans - 15 000
19 761 20 564 Bank overdrafts - -
176 918 207 255 Total equity and 129 920 143 516
liabilities
195,0 216,7 Net asset value per
share (book value)
(cents)
CASH FLOW STATEMENTS
Group (R000) Company (R000)
Audited Audited Audited Audited
2001 2000 2001 2000
Cash generated by/
(utilised in) operations
4 184 892 Cash receipts/(outflow) 710 (377)
from operating activities
(5 652) (7 416) Financing costs (1 258) (3 446)
(1 385) (2 266) Guarantee expenses (1 385) (2 266)
(75) (6) Taxation paid (75) -
(2 928) (8 796) Net cash outflow from (2 008) (6 089)
operating activities
(35) (8) Dividend paid (35) (8)
(2 963) (8 804) Net cash invested in (2 043) (6 097)
operating activities
41 228 9 151 Net cash realised from 39 329 10 199
investment activities
38 265 347 Net cash realised 37 286 4 102
Cash effects of financing
activities
(15 000) 2 000 Short term loans (repaid) (15 000) 2 000
/raised
96 (2 790) Long term loans raised/ - -
(repaid)
(14 904) (790) Net financing (repaid)/raised (15 000) 2 000
23 361 (443) Change in cash and cash 22 286 6 102
equivalents
(14 425) (13 982) Cash and cash equivalents 5 843 (259)
at the beginning of the year
8 936 (14 425) Cash and cash equivalents 28 129 5 843
at the end of the year
STATEMENTS OF CHANGES IN EQUITY
Group (R000) Company (R000)
Audited Audited Audited Audited
2001 2000 2001 2000
151 293 177 524 Equity at the beginning 124 701 155 302
of the year
- (1 350) Prior year adjustment- - (15 675)
investment written off
151 293 176 174 Equity at the beginning 124 701 139 627
of the year restated
(2 255) (428) Changes in reserves - -
650 (428) Surplus on revaluation - -
of investments
(4 239) - Fixed property revaluation - -
1 334 - Transfer to net profit - -
(12 928) (24 453) Changes in retained earnings 1 056 (14 926)
(16 517) (19 784) Net (loss)/profit for 1 056 (14 926)
the year
- (4 175) Loss on disposal of - -
subsidiaries
4 239 - Fixed property revaluation - -
(650) (494) Investment revaluation surplus - -
transferred to non-distributable
reserves
136 110 151 293 Equity at the end of the year 25 757 124 701
COMMENTS
1. Results for the year
- The group loss for the year decreased from R19,8 million to R16,5
million. The headline loss per share of 20,2 cents in 2000 improved to
headline earnings per share of 16,7 cents in 2001. The total loss per share
decreased from 28,3 cents to 23,7 cents.
- Gross profit and operating expenses reduced significantly, mainly as a
result of the disposal of unprofitable investments. Ongoing rationalisation
and management of expenses also contributed to the decrease in operating
expenses.
- Other operating income increased due to receipt of the proceeds of
insurance claims arising out of flood damage at the group's game lodges.
- The disposal of unprofitable investments together with rationalisation
and management of expenses converted an operating loss of R8,9 million into
an operating profit of R2,7 million.
- Both net gains and losses on the disposal of investments and the
provision for losses on investments decreased significantly as the Board
progressed with implementing its strategies.
- In line with the stated intention of writing off intangible assets,
goodwill written off increased by R6,0 million to R8,0 million.
- After taking all the circumstances of the industries in which Yabeng
operates into account, the Board decided to write R12,7 million off the
value of certain group assets in order to state these assets at their
estimated realisable value.
- Income from associates has increased significantly, mainly due to an
unrealised exchange difference on the conversion of a monetary loan by an
associate, and a large write back by another associate of interest which was
irrecoverable by its shareholders.
- Financing costs have reduced by R2,0 million to R5,6 million in line with
the Board's strategy of reducing group borrowings.
2. Prospects
Yabeng's directors and management continue to implement the strategies set
out in reports to shareholders since May 1999 of:
- disposing of or reducing Yabeng's stake in investments considered
inappropriate or incapable of producing an acceptable return;
- restructuring those investments considered capable of producing an
acceptable return or which cannot be disposed of at a reasonable price;
- acquiring no new investments unless a binding commitment to do so
existed;
- reducing Yabeng's exposure under loans made to and guarantees given on
behalf of its subsidiary and associate companies; and
- reducing group borrowings where possible.
Considerable progress has been made towards achieving these goals which have
had as their main purpose restoring value to Yabeng shareholders and
reducing the large discount to net asset value at which Yabeng's shares have
been trading.
To advance the goal of restoring value to shareholders the Yabeng Board
decided (as announced in the press on 13 February 2001) to dispose of the
Company's holdings in South African Breweries plc ("SAB"), Sun International
(South Africa) Limited ("SISA") and Primedia Limited and to pay the proceeds
to shareholders by way of reduction in the Company's share premium account,
after first settling the Company's debts and retaining sufficient working
capital to enable the Company to continue business.
A circular has been despatched to shareholders giving precise details of the
proposals, and calling a general meeting on 13 June 2001 to obtain
shareholders' approval of the disposal of the Company's remaining holdings
in SAB and SISA and the proposed payment to shareholders. If approved, 35
cents per share will be paid to shareholders who are registered on the
Company's share register on 15 June 2001 as an initial payment. Details of
the date of this payment and the proposed future payment(s) to shareholders
will be announced in the press. Should the remaining holdings in SAB and
SISA be disposed of at prices approximating 5540 cents and 255 cents per
share respectively, it is estimated that the payments to shareholders will
amount to approximately 100 cents per share in total.
During the year under review a provision of R15,2 million was made against
the cost of Yabeng's investment in Bonatla Property Holdings Limited.
Intangible assets of R7,4 million were written off, and group assets were
written down by R12,7 million to their estimated realisable value. The Board
does not anticipate any large provision for losses on investments, write off
or write down of assets or guarantee expenses in the current year. It is
expected that financing costs will continue to reduce and that operating
profit will increase in the future. If the remaining holdings in SAB and
SISA are disposed of, Yabeng will realise a significant capital gain on
disposal.
Once the proposed disposal of the major part of Yabeng's listed share
portfolio has been completed and the proposed payment to shareholders has
been made, and once bank borrowings and exposure under guarantees have been
reduced to more acceptable levels, the Board will consider the group's
future strategic direction.
DIVIDEND POLICY
It is Yabeng's policy to declare a single dividend in May each year at the
time of announcing the results for the financial year.
In view of the losses incurred this year and taking into account the
proposed payment to shareholders, the directors have resolved not to declare
a dividend for the year ended 28 February 2001.
For and on behalf of the Board
24 May 2001
Directors
Dr BP Botha (Executive Chairman), KF Hudson,
M Meyer, MAF Moja
Secretary and registered office
MH Hodgson BA LLB BCom ACA
Section 2, Parklands, 229 Bronkhorst Street,
New Muckleneuk, Pretoria
PO Box 2440, Brooklyn Square 0075
Telephone (012) 460-6202 Fax (012) 460-5452
Transfer secretaries
Fraser Street Registrars (Pty) Limited
Ground Floor, Sage Centre, 10 Fraser Street, Johannesburg 2001
PO Box 61178, Marshalltown 2107
Telephone (011) 377-5777 Fax (011) 492-1207
