| Wed 6 Jun 2001, 0:00 | | Milprop - Preliminary Audited Results And Cautiona |
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Millennium Property Holdings Limited
(Registration number 1994/010083/06)
("Milprop" or "the company")
Preliminary audited results and CAUTIONARY ANNOUNCEMENT
Group income statements
Audited Audited
2001 2000
R'000 R'000
Revenue
- Discontinued operations - 31 574
Operating loss (1 891) -
Income - discontinued operations - 9 182
Interest received 3 331 534
Investment income 4 718 -
Loss on disposal of properties - (71 752)
Income/(Loss) before interest
and taxation 6 158 (62 036)
Other interest paid (3 244) (9 996)
Income/(Loss) available
for distribution 2 914 (72 032)
Interest on debentures (2 474) (412)
Share of associate company loss (2 615) -
Loss before taxation (2 175) (72 444)
Taxation - (56)
Accumulated loss for year (2 175) (72 500)
(Accumulated loss)/Retained income
at beginning of year (72 498) 2
Accumulated loss at end of year (74 673) (72 498)
Number of linked units in issue ('000) 54 898 54 898
Weighted average number of linked
units in issue during year ('000) 54 898 53 793
Interest per debenture (cents) 4,50 0,75
Interim 0,25 0,50
Final 4,25 0,25
Weighted average income available for
distribution per linked unit (cents) 5,3 -
Net asset value per linked unit (cents) 77,5 80
Group abridged balance sheets
Audited Audited
2001 2000
R'000 R'000
Capital employed
Ordinary share capital 549 549
Distributable reserve
- Accumulated loss (74 673) (72 498)
Debentures 116 661 115 869
Linked unitholders' interest 42 537 43 920
Long-term borrowings 12 673 -
55 210 43 920
Employment of capital
Equipment 6 8
Investment - Redefine 36 945 -
Investment in associate - shares 3 488 -
- loan 14 492 -
Owing by purchaser of properties - 109 164
Accounts receivable and bank 3 398 470
Current assets 3 398 109 634
Accounts payable 3 119 3 564
Short-term borrowings - 62 158
Current liabilities 3 119 65 722
Net current assets 279 43 912
55 210 43 920
Statement of changes in equity
Share Accumulated
Capital Debentures loss Total
R'000 R'000 R'000 R'000
Balance at 1 March 2000 549 115 869 (72 498) 43 920
Loss for the year (2 175) (2 175)
Amortisation of debentures 792 792
Balance at 28 February 2001 549 116 661 (74 673) 42 537
Group abridged cash flow statements
Audited Audited
2001 2000
R'000 R'000
Cash (applied to)/generated from
operating activities (9 164) 10 515
Investment income 4 718 -
Net interest and debenture
interest paid (187) (13 669)
Cash utilised in operating activities (4 633) (3 154)
Cash flows from investing activities 54 239 (571)
Net cash generated/(utilised) 49 606 (3 725)
Cash flows from financing activities (37 823) (3 156)
Net increase/(decrease) in cash
and cash equivalents 11 783 (6 881)
Cash and cash equivalents at
beginning of year (11 286) (4 405)
Cash and cash equivalents
at end of year 497 (11 286)
COMMENTS
The results for the past year reflect the major changes in the company's
activities. As highlighted in the prior year's audited results, the company
disposed of the majority of its direct property investments with effect from
29 February 2000.
ACQUISITIONS
During the period between July 2000 and March 2001 certain transactions were
concluded in terms of which Millennium Properties (Pty) Ltd acquired shares
in Ikusasa Communications Holdings Limited, which transactions would, if
implemented, result in Millennium Properties (Pty) Ltd becoming the owner
and beneficial holder of 100% of the issued share capital in Ikusasa
Communications Holdings Limited. Some of the negotiations relating thereto
culminated in settlement agreements in terms of which certain issues were
settled resulting in 9 194 605 linked units in Milprop being handed to
Millennium Properties (Pty) Ltd to be held in trust pending an orderly
disposal thereof.
GENERAL
Subsequent to 28 February 2001 it was established that due to an
administrative error, a special resolution authorising the increase of the
share capital in Ikusasa Communications Holdings Limited was not timeously
registered at the Registrar's Offices in order to allow for the transfer of
the amount of shares involved in the abovementioned transactions. The
situation, however, was ratified after the Group's year-end by a special
resolution passed by the members of Ikusasa Communications Holdings Limited
increasing its authorised share capital to R200 000,00 by way of the
creation of 199 000 000 ordinary shares of a par value of R0,001 (one tenth
of a cent) per share, thus rendering the transfer of shares as contained in
the various agreements possible. This resolution was duly lodged and
registered and delivery of those shares is now awaited in terms of the
relevant agreements.
CONCLUSION
As at 28 February 2001 Millennium Properties (Pty) Ltd was the beneficial
owner and holder of 43,27% of the issued share capital in Ikusasa
Communications Holdings Limited. It, furthermore, has agreements in place
which, when implemented, will result in it owning the balance of 56,73% of
Ikusasa Communication Holdings Limited.
These transactions have been complicated by the difficulties experienced
with the delivery of the shares required and the settlements reached in
terms whereof Milprop is to have the benefit of the disposal of 9 194 605
Milprop linked units bestowed upon it in trust. The time delay has resulted
in rectification of transactions with the vendors who may have become
related parties as a result of the initial transactions. In consideration of
the aforegoing, the directors propose and report the following:
- a full circular is to be sent to linked unit holders informing them of
the background to the transactions and the rectification steps taken and to
be taken;
- linked unit holders will be requested to ratify the transactions in a
general meeting; and
- the value attributable to the investment in Ikusasa Communications
Holdings Limited is dependant on a number of issues, some of which are
uncertain. Pending resolution of these issues the investment is reflected at
cost less attributable losses.
- The parcel of Milprop linked units received as part of the settlement is
reflected as an amount receivable at a value of R0,40 per linked unit, which
is the directors' valuation thereof.
CAUTIONARY
Holders of Milprop linked units are advised that the company has entered
into negotiations, which if successfully concluded, may have a material
effect on the linked unit price of Milprop. Accordingly, linked unit holders
are advised to exercise caution when dealing in Milprop linked units until a
further announcement is made.
PROPOSED INTEREST PAYMENT
Notice is hereby given that interest of 4,25 cents per debenture has been
accrued. A further announcement will be published in the press in due
course.
By order of the board
6 June 2001
Registered office Transfer secretaries
Trade House Computershare Services Limited
33 Impala Road Edura House
Chislehurston 41 Fox Street
Sandton Johannesburg
2196 2001
(PO Box 61051, Marshalltown, 2107)
Tel: (011) 370 7700
Sponsor
Corporate and Merchant Advisors Limited
(Registration number 1999/001129/06)
