| Tue 29 May 2001, 0:00 | | Jigsaw Holdings Limited: Audited Annual Results |
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Jigsaw Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number. 1987/000111/06)
("the Group")
AUDITED ANNUAL RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2001
* Headline earnings per share increase by 26%
* 36% growth in operating profits
* Financial services contribute 28% to group operating profits
ABRIDGED GROUP BALANCE SHEET
at 28 February 2001
2001 2000
R'000 R'000
ASSETS
Non-current assets 33 666 13 978
Current assets 76 007 37 920
Total assets 109 673 51 898
EQUITY AND LIABILITIES
Capital, reserves and
minority interests 29 285 17 963
Non-current liabilities 5 834 1 670
Current liabilities 74 554 32 265
Total equity and liabilities 109 673 51 898
ABRIDGED GROUP INCOME STATEMENT
for the year ended 28 February 2001
2001 2000
R'000 R'000
Revenue 72 654 45 918
Profit from operations 8 227 6 938
Net finance costs (1 473) (757)
Profit before taxation 6 754 6 181
Taxation (1 594) (1 324)
Profit after taxation 5 160 4 857
Attributable to outside shareholders
in subsidiaries (245) (380)
Preference share dividend (520) (496)
Retained profit for the year
attributable to ordinary shareholders 4 395 3 981
Earnings per share (cents) 10,5 10,7
Headline earnings 5 635 3 981
Headline earnings per share (cents) 13,5 10,7
COMMENTS
Our financial position
We are pleased with our 36% growth in operating profits adjusted for the
amortisation of goodwill in subsidiaries and intangible assets, from R6,9
million, to R9,5 million, and our 42% growth in headline earnings from R4
million to R5,6 million for the period under review. Headline earnings per
share have increased on a 13% higher capital base by 26% from 10,7 cents to
13,5 cents. The profile of our source of earnings will continue to change,
particularly as we develop our financial services. Despite an increase in
borrowings to fund our new operations, the Group continues to reflect a low
level of gearing. Our further expansion will necessitate a further increase
in borrowings, for which we have ample scope. We continue to seek further
strategic investors and in the medium term to broaden our shareholder base
with a view to improving share liquidity.
The year in review
We have continued to develop our distribution and client bases with the
acquisition of the Realty 1 Elk franchise network and Chapman Property
Management Services. Our entry into new and related markets, particularly
financial services, was initiated with the establishment of our mortgage
origination company, Ascendant Mortgages, in July, and the acquisition of
the short-term loan businesses of market leader Comcorp in October,
subsequently renamed Ascendant Cashflow Solutions. This strategic
development has, during the past financial year, been underpinned by strong
performances in our real estate sales operation of Aida Pretoria, and in our
real estate franchise networks of Aida, ERA and, more recently, Realty 1
Elk. Disappointingly, we did not achieve our performance objectives in our
property management and housing development operations. Numerous activities
have been implemented which will improve our performance in these areas.
Our prospects and future direction
We believe that the positive market forecast, together with our further
organic and strategic development, will result in another year of improved
performance for our Group. Our further expansion into related markets, and
of our financial services to include insurance, has already forged ahead
with our acquisition, in March 2001, of interests in two new companies, viz:
Home Inspector and Home Warranty Services. In addition, our planning to
provide a range of short- and long-term insurance products has been
completed, and we look forward to launching this major initiative by mid-
year.
Material post-balance sheet events
With effect from March 2001, the consolidation of the Group's property
management operations previously trading under the Executive Realty
Management and Chapman brands, was implemented under the new national brand
of Yellow Button. The Group has acquired a 70% interest in HI Inspecting
Service (Proprietary) Limited, trading as Home Inspector, at a cost of R609
000. In addition, the Group has also acquired a 70% interest in a joint
venture between Jigsaw Holdings Limited and Home Warranty Services
(Proprietary) Limited at a cost of R408 000. The joint venture will trade
under Ascendant, the Group's financial services brand.
Dividend
Your directors have decided not to declare a dividend for the year under
review as the ongoing Group expansion requires further substantial funding.
Provision has been made for the dividend on the preference shares for the
period 1 March 2000 to 28 February 2001.
Auditors
Fisher Hoffman Sithole have resigned as auditors of the company and BDO
Spencer Steward (Johannesburg) Incorporated have been appointed to act as
auditors with effect from 1 March 2000.
For and on behalf of the board
G SDOYA
Chief Executive Officer
30 May 2001
DIRECTORS
Gian Sdoya (Acting Chairman and Chief Executive Officer), Gerald Grieveson
(Group Financial Director), Niel Cronje, Hannes Coetzer, Neville McIntyre,
Ian Moskovitz, Johan Nel, Dolf Wright, Berry Everitt, Piet Joubert
(Alternate), Piet du Toit Viljoen (Alternate)
TRANSFER SECRETARIES
Mercantile Registrars Limited, 11 Diagonal Street, Johannesburg, 2001, PO
Box 1053, Johannesburg, 2000
REGISTERED OFFICE
First Floor, 1 St Andrew Street, Birdhaven, 2196, PO Box 55136, Northlands,
2116
