| Mon 11 Jun 2001, 0:00 | | Bjmh - Audited Results |
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Barnard Jacobs Mellet Holdings Limited
(Incorporated in the Republic of South Africa - Registration number
1995/004798/06)
("BJMH" or "the group")
Barnard Jacobs Mellet Holdings Limited - Audited results for the year ended
31/03/2001
Consolidated Income Statements
R' 000
Year ended % Year ended
31.3.01 change 31.3.00
(audited) (audited)
Gross revenue 253,550 (6.6) 271,432
Operating expenses (184,342) (148,812)
Abnormal settlement costs (29,810) -
Operating income before
finance costs 39,398 (67.9) 122,620
Finance costs (31,018) 100.6 (15,466)
Operating income before
income from Investments 8,380 (92.2) 107,154
Investment income 18,147 165.5 6,834
Income before taxation 26,527 (76.7) 113,988
Taxation 2,007 (31,346)
Income attributable to
shareholders 28,534 (65.5) 82,642
Weighted average number of
shares in issue ("000) 105,461 105,346
Headline earnings
per share (cents) 47.37 (40.5) 79.61
Fully diluted headline
earnings per share (cents) 44.04 (40.4) 73.89
Basic earnings
per share (cents) 27.06 (65.8) 79.08
Fully diluted earnings
per share (cents) 25.21 (65.0) 72.12
Dividend per share (cents) 8 (68.0) 25
Reconciliation of headline
earnings per share
Fully diluted headline
earnings 50,112 83,530
Interest on convertible
debentures after tax (150) (328)
Headline earnings 49,962 83,202
Abnormal settlement cost
after tax (20,867) -
Goodwill amortisation (561) (560)
Basic earnings 28,534 82,642
Consolidated Balance Sheets
Year ended Year ended
31.3.01 31.3.00
Assets
Non-current assets
Fixed Assets 7,418 7,913
Long-term investments 118,903 57,493
Goodwill 1,408 1,969
Trading investments 12,500 15,464
Deferred tax 10,130 2,358
150,359 85,197
Current assets 1,457,933 1,450,227
1,608,292 1,535,424
Equity and reserves
Capital and reserves
Ordinary share capital 1,061 1,052
Ordinary share premium 160,265 159,834
Equity portion of compulsory
convertible debenture 25,071 25,071
Non-distributable reserves 27,578 11,710
Retained income 125,004 106,898
338,979 304,565
Non-current liabilities 154,206 92,792
Current liabilities 1,115,107 1,138,067
1,608,292 1,535,424
Cash Flow Statements
Cash flows from operating
activities (255,634) 162,394
Cash flows from investing
activities (64,229) (67,935)
Cash effects of financing
activities 61,854 92,748
Net (decrease)/increase in
cash and cash equivalents (258,009) 187,207
Cash and cash equivalents at
Beginning of year 591,387 404,180
Cash and cash equivalents
at end of year 333,378 591,387
Segment Report
South Africa International
Total
2001
Revenue 187,769 65,781
253,550
Attributable earnings 12,388 16,146
28,534
Assets 1,273,291 335,001
1,608,292
Liabilities 1,050,070 219,244
1,269,314
2000
Revenue 233,084 38,348
271,432
Attributable earnings 71,076 11,566
82,642
Assets 1,348,513 186,909
1,535,422
Liabilities 1,164,260 66,598
1,230,858
* Rated #1 in South African equity research coverage by Financial Mail
* International attributable earnings increase 40%
* Net asset value 319 cps
* Cash and near-cash per share 291 cps
* Finsettle Services (Pty) Ltd is launched
* Corporate finance now a seperate entity
Review of results
The 2001 financial year was extremely challenging for the Group. Headline
earnings, which exclude the R20.9m net settlement cost in respect of ITI
Holdings, fell from 80 cps to 47 cps. The dividend was cut from 25 cps to 8
cps. The major factors behind this decline were lower institutional
commission rates in South Africa, virtually unchanged value traded on the
JSE and cost pressures to retain highly skilled employees.
Notwithstanding the decline in earnings, it is pleasing to report good
growth from BJM (UK) and BJM (USA). The foreign subsidiaries increased
attributable earnings by 40%.
The settlement side of the Group's three South African stockbroking
businesses was placed in a separate entity named Finsettle Services (Pty)
Ltd. Finsettle now settles for seven external broking companies and
continues to operate profitably.
With the broader research expertise in the Group, and in response to
corporate requests, the corporate finance team has been expanded and
strengthened with highly experienced individuals. Barnard Jacobs Mellet
Corporate Finance (Pty) Ltd is now a 100% owned subsidiary.
Barnard Jacobs Mellet Private Client Services (Pty) Ltd completed its first
full financial year profitably. The assets entrusted to the company have
grown substantially from R1.8bn to R2.8bn and was accompanied by a good
client retention record.
As mentioned at the interim stage, abnormal settlement costs of R29.8m
relate to restitution made to certain clients for whom BJM Securities acted
as an agent in a private vendor placement by ITI Technology Holdings Ltd (in
liquidation) during March and April 2000. It remains uncertain as to the
funds that may be recovered from the liquidation.
Despite the decline in earnings, the BJMH net asset value increased 10% to
319cps. Of this, the net cash component totaled 291 cps, 10% up from last
year.
It is particularly gratifying that the Group's research team was rated #1 in
South African equity coverage in the 2001 Financial Mail stockbroker
rankings.
Prospects
Stockbroking has become increasingly competitive and, within the South
African environment, traditional areas of growth would appear to be limited.
In recognition of this, the Group continues to increase its international
distribution and business origination capabilities. There is significant
offshore growth potential still to come, but to continue building the
international infrastructure for this future benefit requires a continuing
high degree of success in the domestic market, as well as the employment of
highly professional and competitive individuals abroad.
The first two months of the 2002 financial year are ahead of the previous
period, but the profits going forward will largely be subject to the volume
of trade on the respective stock markets.
Dividends
Notice is hereby given of final dividend No 8 of 5 cents per ordinary share,
payable to all shareholders registered in the books of the Company as at
close of business on Friday 13 July 2001. The dividend will be payable on or
about 27 July 2001.
Paul Barnard
Chairman
7 June 2001
Directors
N Au, D D Barber*, P A Barnard, K G Jacobs, S M Mellet, J E van der Hoven,
R Y Kearney, L Verrezen, A T Mokhobo*
* Non-executive
Registered office
Barnard Jacobs Mellet House, 5 Sturdee Avenue, Rosebank, 2196
Transfer secretaries
Computershare Services Ltd, 4th floor, Edura House,
41 Fox Street, Johannesburg
