| Mon 25 Jun 2001, 0:00 | | Rah/rai - Preliminary Announcement |
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PRELIMINARY ANNOUNCEMENT FOR THE YEAR ENDED 31 MARCH 2001
Real Africa Holdings Limited
(Registration number 1994/003919/06)
("RAH")Real Africa
Investments Limited
(Registration number 1994/000398/06)
("RAI")real africa holdings limited
Summarised income statement
Audited Restated(3)
Year ended Year ended
31 March 31 March
2001 2000
Note R'000 R'000
Equity accounted earnings 1 (14 556) 154 704
- Dividends 33 173 28 076
- Retained (losses)/earnings (47 729) 126 628
Management fee 16 476 13 199
Interest income (net) 34 441 40 300
36 361 208 203
Operating costs 34 914 12 607
Net capital profits/(losses) 2 220 621 (22 893)
Goodwill amortisation 24 600 213 484
Profit/(loss) before taxation 197 468 (40 781)
Taxation 7 028 12 378
Net profit/(loss) after taxation 190 440 (53 159)
Preference dividends - 3 562
Outside shareholders 149 923 (81 418)
Attributable to ordinary shareholders 40 517 24 697
Earnings per share (cents) 10,8 6,6
Headline (loss)/earnings
per share (cents) 5 (3,5) 45,8
Number of ordinary shares
- in issue (millions) 375,1 375,1
Number of ordinary shares
- weighted average (millions) 375,1 374,8
Summarised balance sheet
Audited Restated(3)
Year ended Year ended
31 March 31 March
2001 2000
Note R'000 R'000
Ordinary shareholders' funds 1 806 171 2 636 129
Outside shareholders 940 099 782 882
2 746 270 3 419 011
Fixed assets 1 590 1 292
Investments and loans 2 390 051 3 096 145
Cash resources 348 397 329 206
Net current assets/(liabilities) 6 232 (7 632)
2 746 270 3 419 011
Valuation of investments 20 June 2001 22 June 2000
- Listed - at market value 1 975 709 4 473 651
- Unlisted - at directors' valuation 420 409 263 851
2 396 118 4 737 502
Value per share (cents) 4 517 1 018
Summarised statement of changes in equity
Ordinary Non-
share capital distributable Distributable
and premium reserves reserves Total
R'000 R'000 R'000 R'000
Balance at
1 April 2000 2 059 832 212 076 364 221 2 636 129
Aflife
unbundling (317 102) (113 559) (449 442) (880 103)
Net profit
for the year - - 40 517 40 517
Other - 10 201 (573) 9 628
Balance at
31 March 2001 1 742 730 108 718 (45 277) 1 806 171
real africa investments limited
Summarised income statement
Audited Restated(3)
Year ended Year ended
31 March 31 March
2001 2000
Note R'000 R'000
Equity accounted earnings 1 (14 556) 154 704
- Dividends 33 173 28 076
- Retained (losses)/earnings (47 729) 126 628
Management fee 16 476 13 199
Interest income (net) 36 109 42 329
38 029 210 232
Operating costs 34 985 17 124
Net capital profits/(losses) 2 220 621 (22 893)
Goodwill amortisation 24 600 213 484
Profit/(loss) before taxation 199 065 (43 269)
Taxation 7 232 12 971
Net profit/(loss) after taxation 191 833 (56 240)
Outside shareholders 170 788 (65 152)
Attributable to ordinary shareholders 21 045 8 912
Earnings per share (cents) 14,0 5,9
Headline (loss)/earnings
per share (cents) 5 (3,4) 56,5
Number of ordinary shares
- in issue (millions) 150,2 150,2
Number of ordinary shares
- weighted average (millions) 150,2 150,2
Summarised balance sheet
Audited Restated(3)
Year ended Year ended
31 March 31 March
2001 2000
Note R'000 R'000
Ordinary shareholders' funds 893 990 1 295 127
Outside shareholders 1 870 188 2 140 400
2 764 178 3 435 527
Fixed assets 1 590 1 292
Investments and loans 2 390 051 3 096 145
Cash resources 366 199 346 353
Net current assets/(liabilities) 6 338 (8 263)
2 764 178 3 435 527
Valuation of investments 20 June 2001 22 June 2000
- Listed - at market value 1 975 709 4 473 651
- Unlisted - at directors' valuation 420 409 263 851
2 396 118 4 737 502
Value per share (cents) 4 639 1 244
Summarised statement of changes in equity
Ordinary Non-
share capital distributable Distributable
and premium reserves reserves Total
R'000 R'000 R'000 R'000
Balance at
1 April 2000 993 408 120 216 181 503 1 295 127
Aflife
unbundling (229 079) 25 064 (222 835) (426 850)
Net profit
for the year - - 21 045 21 045
Other - 4 945 (277) 4 668
Balance at
31 March 2001 764 329 150 225 (20 564) 893 990
Notes on the basis of preparation
1. The Group's holding in Persetel Q Data Africa (Proprietary) Limited
("PQA") is no longer equity accounted as from 1 April 2000, in consequence
of an irrevocable undertaking to convert such holding into approximately 16%
of the equity of Comparex Holdings Limited ("Comparex").
African Life Assurance Company Limited ("Aflife") was unbundled with
effect from August 2000. Insufficient financial information that accurately
reflects the company's trading performance is available for the period prior
to unbundling and, accordingly, the unbundling has been given effect to in
preparation of this announcement from 1 April 2000.
2. A capital profit of R290 million has been recognised in regard to the
Comparex shares to be received in exchange for the agreed disposal of RAH's
interest in PQA. An appropriate portion of the carrying value in PQA has
been attributed to the Dimension Data plc ("Didata") shares released to the
RAH Group. A R70 million provision against the carrying value of certain
investments including the loan to the share trust has been taken against
capital profits.
3. Comparatives have been restated to recognise the change in accounting
policy whereby certain investments that were previously equity accounted are
now consolidated. The policy change has no effect on the income attributable
to ordinary shareholders. The financial information has been prepared in
accordance with South African Statements of Generally Accepted Accounting
Practice.
4. Value per share, stated in cents, is based on ordinary shareholders'
funds reflected on the balance sheet and adjusted by the attributable
increase in the market value of listed investments and directors' valuation
of the unlisted investments at 20 June 2001:
RAH R'000
Ordinary shareholders' funds 1 806 171
Increase in value of underlying investments at
market value and directors' valuation on 20
June 2001 131 977
1 938 148
Shares in issue (millions) 375
Value per share (cents) 517
RAI R'000
Ordinary shareholders' funds 893 990
Increase in attributable value of underlying
investments
at market value and directors' valuation
on 20 June 2001 64 009
957 999
Shares in issue (millions) 150
Value per share (cents) 639
5. Headline earnings is determined
as follows: RAH RAI
2001 2000 2001 2000
R'000 R'000 R'000 R'000
Attributable to ordinary
shareholders 40 517 24 697 21 045 8 912
Adjusted for (net of minorities):
Net capital profits/(losses) 78 271 (22 893) 38 112 (11 117)
Goodwill amortisation 24 600 124 211 11 931 64 783
Headline (loss)/earnings (13 154) 171 801 (5 136) 84 812
COMMENTARY
Two substantial changes in the Group's interests occurred during the year
which unlocked value for our shareholders:
- the unbundling of our investment in Aflife;
- the issue of an irrevocable undertaking to convert our shareholding in PQA
into Comparex shares and, in conjunction, securing the Group's right to 31
967 213 Didata shares as part of the Comparex unbundling of these shares.
Shareholders will be aware that the Didata shares are subject to agreements
that restrict dealing in these shares before 30 November 2002.
The derivative trading in RAD resulted in losses in the bank of which our
attributable share has been fully accounted for.
Our interests in the educational field held by Edu-Loan and Open Learning
Group ("OLG") were adversely affected as a result of a decision by the
authorities not to allow any further deductions from civil servants'
salaries. Government recently announced that certain deductions, including
those for educational purposes, will be allowed. This should benefit Edu-
Loan and OLG in the coming financial year.
Our remaining interests have continued to perform satisfactorily. Our joint
controlling interest in Oceana Fishing is producing pleasing results and our
healthcare interests held through Afrox Healthcare and Lifecare are
performing above expectations. Real Africa Asset Management is now well
poised, due to excellent returns achieved, to increase substantially its
funds under administration from the current
R4,5 billion. The development of the four casino projects in which we hold
an investment is progressing according to plan.
The Group continues to be regarded as a significant empowerment entity.
Our strong ungeared balance sheet, with some R2 billion of assets, includes
approximately R350 million of cash. We are therefore well positioned for the
evolving process of empowerment.
By order of the boards
D M J Ncube (Executive chairman) S Pather (Executive director)
21 June 2001
