| Thu 28 Jun 2001, 0:00 | | Quyn - Unaudited Interim Results |
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Quyn Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/012245/06)
("Quyn")
Unaudited interim results
for the six months ended 31 March 2001
abridged group income statement
for the six months ended 31 March 2001
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2001 2000 2000
(unaudited) (unaudited) (audited)
R000's (restated) (restated)
Revenue 49 333 58 942 111 935
Operating income before interest (784) 14 878 9 383
Net interest received / (paid) (4 604) (2 281) (4 844)
Operating income (5 388) 12 597 4 539
Income from investments 86 - -
Exceptional item - profit on
sale of subsidiaries 775 6 924 24 038
Net income before taxation (4 527) 19 521 28 577
Taxation (561) (3 575) (5 538)
Income after taxation (5 088) 15 946 23 039
Share of associated
companies' net income - 40 (18)
Outside shareholders' interest (10) (144) (253)
Income attributable to
ordinary shareholders (5 098) 15 842 22 768
Ordinary shares in issue
End of period 73 175 448 72 391 134 72 391 134
Weighted average 2 623 843 72 391 134 72 391 134
Convertible preference
shares in issue
End of period - 5 365 682 5 365 682
Earnings/(loss) per share (cents) (7,0) 21,9 -
Headline earnings/(loss) per
share (cents) (7,5) 12,8 1,7
Ordinary dividends per share
(cents)
Interim - - -
Final - - -
Preference dividends
per share (cents) - - 0,6
abridged group balance sheet
as at 31 March 2001
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2001 2000 2000
(unaudited) (unaudited) (audited)
R000's (restated) (restated)
ASSETS
Non-current assets
Property, equipment
and vehicles 30 270 14 419 32 786
Investment property 18 517 23 112 19 037
Goodwill and intangibles 2 092 2 396 2 004
Unlisted investments 3 206 5 138 6 566
Deferred taxation 7 689 8 598 7 973
61 774 53 663 68 366
Current assets
Land and development costs 33 498 6 531 20 815
Accounts receivable 23 188 31 442 39 211
Cash and cash equivalents 20 003 15 024 12 466
76 689 52 997 72 492
Total assets 138 463 106 660 140 858
EQUITY AND LIABILITIES
Capital and reserves 49 803 40 668 54 955
Outside shareholders' interest 10 175 282
Non-current liabilities
Long-term liabilities 33 566 9 026 29 102
Deferred income - 1 755 1 613
33 566 10 781 30 715
Current liabilities
Short-term loans 6 213 1 298 2 304
Accounts payable 29 658 34 299 31 108
Taxation 32 2 583 938
Bank overdraft 19 181 16 856 20 556
55 084 55 036 54 906
Total equity and liabilities 138 463 106 660 140 858
abridged statement of changes in equity
for the six months ended 31 March 2001
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2001 2000 2000
(unaudited) (unaudited) (audited)
R000's (restated) (restated)
SHARE CAPITAL
Balance at beginning of
period 778 958 958
Cancellation of ordinary
shares - (234) (234)
Issue of preference shares - 54 54
Balance at end of period 778 778 778
SHARE PREMIUM
Balance at beginning of period 1 509 10 624 10 624
Arising on issue of
preference shares - 25 746 25 746
Reduction on cancellation
of share capital - (27 826) (27 826)
Write-off of intangible assets
and share issue expenses - (7 100) (7 035)
Balance at end of period 1 509 1 444 1 509
RESERVES
Retained income and non-
distributable reserves
Balance at beginning of
period 52 668 24 327 24 327
Income attributable to
ordinary shareholders (5 098) 15 842 22 768
Quyn Securities
- prior years' income - (1 722) -
Preference dividends paid - - (31)
Non-distributable reserve
arising on
acquisition of joint venture - - 5 550
Quyn Capital - insurance
policy (54) - 54
Balance at end of period 47 516 38 447 52 668
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2001 2000 2000
(unaudited) (unaudited) (audited)
R000's (restated) (restated)
Cash generated (utilised) by
operating activities (21 379) (22 758) (34 430)
Investing activities
Proceeds on sale of subsidiaries,
net cash foregone (1 272) 4 442 2 588
Further loan to Quyn
Securities post sale - (8 045) (8 045)
Proceeds from sale of
Quyn Martin 19 768 - -
Proceeds from sale of property,
equipment and vehicles 765 25 512 26 201
Acquisition of property,
equipment and vehicles (650) - (15 530)
Disposal of investment
property 520 3 317 7 392
Other 2 353 1 126 (1 455)
Cash generated by investing
activities 21 484 26 352 11 151
Financing activities
Increase/(decrease) in
long-term loans 4 898 (659) 18 862
Increase/(decrease) in
short-term borrowings 3 909 (18 675) (17 581)
Cash generated by financing
activities 8 807 (19 334) 1 281
Change in cash and cash
equivalents 8 912 (15 740) (21 998)
Cash and cash equivalents at
beginning of period (8 090) 13 908 13 908
Cash and cash equivalents
at end of period 822 (1 832) (8 090)
Results
The group incurred a loss attributable to ordinary shareholders of R5,1
million in the period under review or 7 cents per share. An operating loss
before interest of R784 000 was increased by a net interest charge of R4,6
million mainly attributable to the property division. An exceptional profit
of R775 000 was earned from the sale of Quyn Capital on 1 October 2000.
Balance Sheets
Subsequent to the audited financial statements at 30 September 2000 it has
transpired that the investment property known as the Benoni Lakeside Mall
has not been transferred to Colliers RMS (Pty) Ltd and accordingly has been
removed from the balance sheets together with the associated liability. As a
result of this development there will be no liability attached to any
security documents or contingent liabilities relating to the Benoni Lakeside
Mall.
Cash
The group's cash position has improved significantly as a result of the
receipt of the proceeds of the sales of Quyn Martin and Quyn Capital. The
proceeds were used to fund the core businesses of the group and in
particular the expansion of the Human Resources division and the after-
interest losses in the Property division.
Contingent Liabilities
Subsequent to the publication of the audited financial statements at 30
September 2000 the contingent liabilities disclosed therein have reduced by
R102 million.
Ikusasa
The condition precedent in the agreement relating to the sale of the
company's investment in Ikusasa Communications has not yet been fulfilled,
however a cash payment and a capital profit of R2,5 million is expected
before the end of the financial year.
Comparative figures
The comparative figures for the six months ended 31 March 2000 and for the
year ended 30 September 2000 have been restated to give effect to the
removal of the investment property referred to above. The comparative
figures for the six months ended 31 March 2000 have been adjusted on the
same basis as in the audited financial statements at 30 September 2000 but
are not directly comparable to the current period owing to the sale of Quyn
Martin and Quyn Capital.
Review of operations
Property division
This division made an after-tax loss of R3,9 million after incurring a net
interest charge of R5,2 million. Management has focused its attention on
this business and its large exposure to property together with the
accompanying liabilities, contingent liabilities and commitments. A cost and
debt reduction programme has been implemented and in this regard the
following has been concluded:
Benoni Lakeside Mall - As stated above this property, valued at R47,6
million, has been removed from the balance sheet together with the
associated liability of R47 million. The group will be released from the
surety of R50 million and the contingent liability for legal claims of R22,2
million will no longer be applicable.
The Point - A settlement has been concluded resulting in the contingent
liability of R30 million reflected in the audited financial statements at 30
September 2000 being cancelled with effect from 18 June 2001.
Advisory and Human Resources divisions
After the sale of Quyn Martin the group has restructured the Advisory
division to include those portions of the Human Resources division which
relate to financial services. It is anticipated that this restructuring will
reduce operating costs and improve operating efficiency.
The Human Resources division has expanded its payroll management activities
into Mozambique and has taken on the payroll administration for several
large clients in the Republic of South Africa. These new operations have
required a significant amount of working capital and have incurred
anticipated start-up costs, which have adversely affected the operating
results of the division for the period under review.
Dividend declaration
No dividend has been declared nor is recommended in respect of the period
under review.
Cautionary announcement
The company's shares on the JSE Securities Exchange South Africa have been
trading under a cautionary announcement since December 2000. Negotiations
are continuing and shareholders are advised to continue exercising caution
in their dealings in Quyn shares until further notice.
For and on behalf of the board
R M Hewitt, Company Secretary 29 June 2001
Directors
R P Fertig (Acting Chairman and CEO), J N Alcock, R M Hewitt, J S Wilson
(Non-executive), W P Alcock (Alternate Director)
Registered office
Arma Park, 27 Bond Street, Ferndale, Randburg, 2194
Transfer secretaries
Computershare Services Limited, Edura House, 41 Fox Street, Johannesburg
