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AUDITED RESULTS FOR THE YEAR ENDED MARCH 2001
Incorporated in the Republic of South Africa
Registration number 1997/020159/06
COMMENTS
Real People Finance gets real
Real People Finance Limited (formerly Money Wise Holdings Limited) is
pleased to announce its results for the fifteen-month period ended 31 March
2001.
Nature of Business
Real People Finance Limited provides finance to sectors of the community not
currently serviced by the traditional banks. The company is a member of the
Micro Finance Regulatory Council and adheres to its code of conduct. Real
People Finance provides a full spectrum of innovative and technologically
advanced financial services.
Results
Real People Finance faced considerable challenges during the period under
review. Whilst the figures show a substantial loss of R15,2 million, it is
gratifying to record that the company moved firmly into profit in the latter
part of the period under review.
This profitability was achieved largely through the constitution of a new
Board of Directors in July 2000. The Board acted decisively and immediately,
to contain losses and lay a solid foundation for the future. Due to measures
implemented, including a large reduction in head office overheads, the
latter months of the period under review were profitable. The company is now
trading profitably and is expecting to earn at least 12 cents per share in
the year ahead under current market conditions.
The temporary suspension of Persal deductions from government employees had
an impact on the company's cost of doing business, which had some effect on
profits for the year. Substantial provisions had to be made by all major
players due to the uncertainty surrounding the Persal deductions issue. In
response, Real People Finance accelerated its diversification into non-
government organisations and developed efficient, new payment collection
methods.
Also during the period, Real People Finance has reduced its short-term loan
exposure to 3%, and has focused on increasing its long-term loan business.
Dematerialisation of shares
Real People Finance was selected by the JSE Securities Exchange SA to
transfer its share capital to the STRATE (Share Transactions Totally
Electronic) environment with effect from 30 July 2001. Trading for
electronic settlement will begin on 20 August 2001. From this date,
shareholders will not be able to sell their shares in Real People Finance
unless they exist in electronic form in the STRATE environment.
Prospects
In the year ahead, Real People Finance will continue to build on the solid
foundation created during the year under review.
The expansion of Real People Finance's broker and franchise networks is of
key importance to the company. In the year ahead, the company will also
broaden its horizons to include other parts of southern Africa. This
expansion will be facilitated by the use of the technologically-advanced
systems - for both lending and collections - already
in place.
Real People Finance has successfully integrated its recent acquisitions and
will continue to streamline its business in the year ahead.
The company's industry expertise, advanced information technology and sound
funding base will allow it to increase its profitability substantially and
continue to grow.
By order of the Board
Sarel de Vos Johan van Rooyen
Chairman Managing Director
15 June 2001
CONSOLIDATED INCOME STATEMENT
for the 15 months ended 31 March 2001
15 months 12 months
ended ended
31 March 31 Dec
2001 1999
R000 R000
REVENUE
Interest income 83 590 50 511
Interest expense (6 500) (3 475)
Net interest 77 090 47 036
Charge for bad and
doubtful advances (20 645) (6 871)
Additional bad debt
Provision (10 023) -
46 422 40 165
Other income 14 670 10 183
Total net revenue 61 092 50 348
Goodwill amortisation (4 380) (50)
Operating costs (78 675) (44 391)
Net (loss)/income before
Taxation (21 963) 5 907
Taxation 7 286 (1 998)
Net (loss)/income after
taxation (14 677) 3 909
(Loss)/income from
associate (557) 555
Net (loss)/income
attributable to ordinary
shareholders (15 234) 4 464
Weighted number of
shares in issue
(000) 558 965 242 900
Basic (loss)/earnings
per share (cents) (2,73) 1,84
Headline (loss)/earnings
per share (cents) (0,83) 1,86
CONSOLIDATED CASH FLOW STATEMENT
for the 15 months ended 31 March 2001
15 months 12 months
to to
31 March 31 Dec
2001 1999
R000 R000
Cash flows from operating activities (15 967) 1 512
Cash flows from investing activities (51 851) (8 564)
Cash flows from financing activities 56 116 919
Net change in cash and cash equivalents (11 702) (6 133)
Cash and cash equivalents at the
beginning of the period (310) 5 823
Cash and cash equivalents at the
end of the period (12 012) (310)
CONSOLIDATED BALANCE SHEET
as at 31 March 2001
31 March 31 Dec
2001 1999
R000 R000
ASSETS
Property, plant and equipment 6 761 8 184
Goodwill 30 064 -
Deferred taxation 8 818 1 145
Investment in associate - 557
Inventories 118 651
Accounts receivable 888 4 475
159 681 28 555
Advances 166 525 30 097
Provision for doubtful advances (6 844) (1 542)
Bank balances and cash 5 426 2 523
TOTAL ASSETS 211 756 46 090
EQUITY AND LIABILITIES
Shareholders' funds 42 549 21 655
Interest-bearing borrowings 129 351 2 663
Trade and other payables 21 799 8 145
Short-term borrowings - 10 112
Bank overdraft 17 438 2 833
Current portion of interest-bearing borrowings 619 682
TOTAL EQUITY AND LIABILITIES 211 756 46 090
Registered office Transfer secretaries
95 Chamberlain Road Vincent 5247 Computershare Services Limited
2nd Floor Edura House
Private Bag X6 Tecoma 5214 41 Fox Street Johannesburg 2001
Directors
SJ de Vos (Chairman)* J van Rooyen (Managing Director)
KDD de Villiers* HC van Heerden*
PW van Heerden* MN Wilkins* ZRS Thomas GJ van Tonder *Non-executive
Real Solutions for Real
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