| Fri 22 Jun 2001, 0:00 | | Tradek Holdings Limited - Audited Results For The |
|
TRADEK HOLDINGS LIMITED
(Registation number 1964/01296/06)
("Tradek" or "the company")
Audited results for the year ended 31 March 2001
* Revenue up 53%
* Establishment of diverse product offering
* Acquired client bases merged
* Integration costs contained
Consolidated Income Statement
31 March 31 March
2001 2000
R'000 R'000
Revenue 28 322 18 536
Operating (loss)/profit before
finance costs (6 074) 451
Finance costs (1 754) (429)
Operating (loss)/profit before
investment income (7 828) 22
Investment income 1 588 2 739
(Loss)/Profit before taxation (6 240) 2 761
Taxation 1 266 (482)
Net (loss)/income after taxation (4 974) 2 279
Weighted average number
of shares in issue ('000) 132 806 98 512
Headline (loss)/earnings
per share (cents) (3,75)* 2,31
*Headline earnings equal earnings and no dilution in shares have taken
place.
Consolidated Balance Sheet
31 March 31 March
2001 2000
R'000 R'000
EQUITY AND LIABILITIES
Equity and reserves 29 776 18 181
Long-term liabilities - 99
Current liabilities 102 407 90 336
Amounts payable relating to
stockbroking activities 99 222 77 256
Other payables 1 726 10 608
Taxation - 441
Bank overdraft 1 459 2 031
Total equity and liabilities 132 183 108 616
ASSETS
Non-current assets 6 500 5 615
Fixed assets 2 006 1 820
Investments 2 019 1 931
Share trust loan 804 1 459
Deferred taxation 1 671 405
Current assets 125 683 103 001
Amounts receivable relating
to stockbroking activities 114 050 93 313
Taxation 53 -
Other receivables 1 170 1 362
Cash and cash equivalents 10 410 8 326
Total assets 132 183 108 616
Abridged Consolidated Cash Flow Statement
31 March 31 March
2001 2000
R'000 R'000
Cash flow from operating activities (12 018) (4 147)
Cash flow from investing activities (1 796) 380
Cash flow from financing activities 16 470 (3 612)
Net increase in cash
and cash equivalents 2 656 (7 379)
Cash and cash equivalents
at beginning of year 6 295 13 674
Cash and cash equivalents
at end of year 8 951 6 295
Consolidated Statement of Changes in Shareholders Equity
Share Share Retained
capital premium income Total
R'000 R'000 R'000 R'000
Balance at 1 April 1999 218 3 164 9 884 13 266
Issue of shares 937 81 735 - 82 672
Goodwill written-off - (78 107) - (78 107)
Pre-listing expenses
written-off - (1 929) - (1 929)
Net income for year - - 2 279 2 279
Balance at 1 April 2000 1 155 4 863 12 163 18 181
Issue of shares 693 16 630 - 17 323
Share issue expenses
written-off - (754) - (754)
Net loss for year - - (4 974) (4 974)
Balance at 31 March 2001 1 848 20 739 7 189 29 776
TRADEK
has established itself as a leading online financial service provider. It
was among the first of such businesses to be established in South Africa and
has maintained its position as a first mover and product leader.
ACCOMPLISHMENTS
The full integration of Tradek's various business acquisitions is complete,
including the merger of the respective client bases and the consolidation of
the back office operations. The result is significant cost containment and
increased efficiencies from which we anticipate a benefit in the coming
year.
The development of a highly sophisticated technology platform is now largely
complete. The system allows clients to benefit from a wider range of
services and increases the company's ability to grow the business.
The client base continues to grow strongly with more than 500 new clients
being added via the website monthly. Tradek's market share of private client
business has grown significantly and we now rank in the top five private
client stockbroking firms on the JSE Securities Exchange South Africa
("JSE").
REVIEW OF TRADING RESULTS
JSE trading activity during the last financial year has been depressed,
resulting in lower levels of trading by private clients. Market turnover has
generally been lacklustre. Losses were sustained in the first three quarters
of the financial year but successful cost containment and the introduction
of new revenue sources resulted in a profitable last quarter.
Revenue in the year amounted to R28,32 million, 53% up on the previous
financial year. A loss of R4,97 million or 3,75 cents per share was
recorded, as compared to an after-tax profit of R2,279 million in the 2000
financial year.
The company has made provision for the diminution in value of a loan to the
employee share trust to the extent that the decrease in the share price of
Tradek is considered to be permanent.
PRODUCT DEVELOPMENT
Tradek is now able to fulfill the financial needs of private clients with a
wide range of investment, banking and insurance products. The total offering
combines online trading and banking facilities.
Increasing numbers of clients are taking advantage of Tradek's integrated
account that includes a JSE trading account, an equity-backed personal loan
facility and money market deposits.
A Tradek branded gold Mastercard will be added to the product in the near
future.
THE YEAR AHEAD
Tradek now has a diversified revenue base. However, equity trading remains
our most significant revenue contributor and, accordingly, market trading
levels will continue to affect our fortunes in the year ahead.
The board remains positive, believing that Tradek's technology, products and
customer service will drive the company's growth in the future.
Paul Theron
Chief Eexecutive Officer
22 June 2001
Directors:
John Balderson, Kevin Davie*, Jan Joubert*, John Martindale*, Marius Meyer*,
Van Zyl Swanepoel*, Paul Theron (CEO)
*Non-executive
www.tradek.com
5th Floor, Stock Exchange Building, 17 Diagonal Street, Johannesburg
Telephone: 011 370 1900
