| Wed 6 Jun 2001, 0:00 | | Eureka Industrial Limited - Audited Annual Financi |
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EUREKA INDUSTRIAL LIMITED
(Registration number 1938/010958/06)
Audited results for the year ended 28 February 200
GROUP BALANCE SHEET
2001 2000
R'000s R'000s
ASSETS
Non-current assets 76,376 145,429
- Property, plant and equipment 2,530 2,884
- Investments 73,846 142,545
Current assets 44,560 51,173
Total assets 120,936 196,602
EQUITY AND LIABILITIES
Shareholders' Funds 58,131 58,112
Non-current liabilities 24,138 57,872
- Interest bearing borrowings 22,376 56,788
- Deferred taxation 1,762 1,084
Current liabilities 38,667 80,618
- interest bearing borrowings 32,391 57,385
- other 6,276 23,233
Total equity and liabilities 120,936 196,602
Non distributable reserve - revaluation
of listed investments to market value
at year end - 20,883
Net tangible asset value per share
(cents) 2,418 2,417
GROUP INCOME STATEMENT
2001 1999
R'000s R'000s
Revenue 30,405 40,532
Operating (loss)profit (9,740) 13,234
Depreciation (397) (395)
Net funding costs (12,407) (12,225)
Net surplus on long term investments 46,459 -
Share of loss from associated company (1,146) -
Net profit before taxation 22,769 614
Taxation (provided)reversed (990) 449
- current (312) (29)
- deferred tax (provided)reversed (678) 478
Net profit after taxation 21,779 1,063
Impairment of investment
in associated company (877) -
Profit attributable to
ordinary shareholders 20,902 1,063
ORDINARY SHARES
Number of shares in issue ('000s) 2,400 2,400
Earnings per share (cents) 870.9 44.3
Headline (loss)earnings per share
(cents) (1,028.8) 44.3
COMMENTS
Financial results
The operating loss of R9,7 million comprises trading results from operating
subsidiaries, dividends received and profits or losses from the trading
portfolio. Funding costs of R12,4 million for the year are largely unchanged
from the previous year.
Eureka's unrealised surplus on investments at the beginning of the year of
R20.9 million was reversed mainly as a result of the forced sale and
delisting of Frame Group Limited shares. This resulted in a net realised
surplus of R46.5 million after valuing long term investments at market value
at year end.
Eureka has consistently maintained its investment strategy since its
conversion to an investment trust several years ago, focusing on value
shares underpinned by sound management and solid assets. Eureka will
continue to remain substantially invested in shares, where core
fundamentals, including experienced and entrepreneurial management, market
niche dominance and discounts to net asset value, exist. In addition, Eureka
will seek some opportunities in "new economy" shares where its expertise can
add value and create opportunities for future growth .
Trading Review
Conditions in the engineering sector have continued with little improvement
during the year under review. Atlas Utas, Eureka's largest trading
subsidiary, continues to operate in an environment hampered by poor demand.
The group is actively limiting its exposure to this market.
The loss in the associate company, Y3K Group Limited is largely due to
restructuring costs.
Prospects
The groups investment in shares with high tangible asset values and sound
management are expected to show growth in value in the period ahead. The
trading operations in the engineering sector are expected to experience
difficult market conditions.
For and on behalf of the board:
R S Price
Chairman
Johannesburg
31st May 2001
