| Thu 5 Jul 2001, 0:00 | | Refcorp - Audited Year End Results |
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REF FINANCE AND INVESTMENT CORPORATION LIMITED
(Registration number 1992/003835/06)
("RefCorp" or "the company")
AUDITED RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2001
Group income statement
Audited Interim Audited
results for the results for the results for the
year ended 28 six months year ended 29
February 2001 ended February 2000
31 Aug 2000
R'000 R'000 R'000
Gross revenue/collections 30 052 12 558 11 996
Operating loss before interest (1 855) (473) (1 195)
Net interest (paid)/received (1 541) (80) 432
Operating loss (3 396) (553) (763)
Exceptional items (393) (724) 1 932
Net (loss)/profit before tax (3 789 (1 277) 1 169
Taxation provision 1 261 100 --
Net loss after taxation (2 528) (1 377) 1 169
Attributable to outside
shareholders (638) 204) 176
Attributable (loss)/profit (1 890) (1 173) 993
Dividends -- -- --
Retained loss for the period (1 890) (1 173) 993
Fully diluted information
(Loss)/earnings per
share (cents) (0,8) (0,5) 0,4
Headline (loss)/earnings per
share (cents) (0,6) (0,2) (0,4)
Shares in issue 226 830 742 226 830 742 226 830 742
Headline Earnings R'000
Headline earnings for the purpose of calculating
headline earnings per share is calculated as follows:
Attributable loss (1 890)
Add back: Exceptional items
Amortisation of goodwill 393
Headline loss (1497)
Group balance sheet
28 Feb 31 Aug 29 Feb
2001 2000 2000
R'000 R'000 R'000
ASSETS
Non-current assets 13 460 17 005 6 678
Fixed assets 9 103 11 888 1 614
Unlisted investment 1 250 1 430 1 430
Goodwill/Development costs 3 107 3 687 3 634
Current assets 7 087 8 800 8 118
Loan to affiliate company 4 942 4 942 4 801
Accounts receivable 1 701 2 811 3 095
Inventory -- 674 20
Cash resources 445 374 203
Total assets 20 547 25 805 14 796
EQUITY AND LIABILITIES
Capital and reserves 7 939 8 657 9 830
Stated capital 16 877 16 877 16 877
Accumulated losses (8 938) (8 220) (7 047)
Non-current liabilities 7 988 9 190 938
Outside shareholders (301) 88 293
Long term borrowings 8 269 9 102 645
Current liabilities 4 640 7 957 4 028
Accounts payable 991 2 432 2 461
Current portion of long term
liabilities 1 929 2 023 --
Taxation 106 1 710 1 453
Bank overdraft 1 615 1 792 114
Total equity and liabilities 20 547 25 805 14 796
Net asset value per share
(cents) 3,5 3,8 4,3
Net tangible asset value per
share (cents) 2,1 2,2 2,7
Number of shares in issue 226 830 742 226 830 742 226 830 742
Statement of changes in equity (abridged)
Stated Accumulated
Capital Loss Total
R`000 R'000 R'000
Balance at 01 March 1999 12 677 (8 041) 4 636
Issue of shares 4 200 -- 4 200
Net profit for year -- 993 993
Balance at 01 March 2000 16 877 (7 047) 9 830
Loss for period -- (1 890) (1 890)
Balance at 28 February 2001 16 877 (8 937) 7 940
Cash flow statement (abridged)
28 Feb 29 Feb
2001 2000
R'000 R'000
Cash flow from operating activities (1 708) (1 822)
Cash flows from investing activities (9 528) (532)
Net cash flow (11 236) (2 354)
Cash flow from financing activities 9 552 1 846
Decrease in cash and cash equivalents (1 684) (508)
Opening bank balance 89 597
Closing bank balance (1 595) 89
Commentary
The results for the year are below expectations primarily as a result of the
larger transactions in IBF taking longer to finalise than anticipated,
conservative revenue recognition policies and a slower commencement of
operations for Bulldog Logistics (Pty) Ltd than originally planned. A brief
segmental analysis has been set out below, followed by separate commentary
on each subsidiary:
Subsidiary Turnover/Gross Net Profit/(loss) before
collections taxation
R'000 R'000
Interlink Brokerage & Financial
Services (Pty) Ltd (51%) ("IBF") 24 274 (224)
Bulldog Logistics (Pty) Ltd (51%)
("Bulldog Logistics") 4 101 (1 065)
Villa Italia Investments (Pty) Ltd (51%)
("Villa Italia") 1 660 (1 098)
IBF
IBF specialises in the provision of finance solutions for equipment
purchases to medium and large corporates, offering rental finance,
instalment sale and lease options. Although rental agreements and equipment
deliveries for large contracts in excess of R20 million have been concluded,
revenue recognition only takes place once the final funding in relation to
the contracts has flowed. IBF is still waiting for the finalisation of two
of these larger contracts. However in spite of this IBF has moved into a
profitable situation for the first quarter to 31 May 2001 on the basis of
other smaller transactions being concluded as well as new business.
Bulldog Logistics
Following a delay in commencement in initial operations from 1 April 2000,
Bulldog Logistics officially commenced operations in June 2000 under the
direct control of Mike Cothill. Bulldog Logistics has its own fleet of 15
new International trucks providing long haulage services to Bulldog
Hauliers, which contract is under review. The results of Bulldog Logistics
reflect a depreciation charge on its fleet of trucks of R1 736 000 for the
year. Following the first year of operations, consideration is being given
to restructuring the business and/or contracts with a view to improving the
results of this subsidiary in the forthcoming year.
Villa Italia
Villa Italia incurred an operating loss to 28 February 2001 partly as a
result of the focus of management on the packaging and branding of the new
G&T franchise concept from April 2000. The first G&T was officially opened
in Randburg in July 2000, a company owned outlet, and has been well received
by the public. This success has led to the minority shareholder in Villa
Italia trying to take over the operations of G&T directly and a number of
legal disputes have arisen. The board of RefCorp have taken legal advice
and have instituted legal action against the minority shareholder in order
to protect the assets of the group.
Litigation
Other than the action instigated against the minority shareholder in Villa
Italia, which in the opinion of the directors is likely to be successful,
there is no other litigation pending against the group.
Future prospects
Refcorp is focusing on building and enhancing the existing operations of the
group and building sustainable headline earnings. The prospects for the
next year look good as a result of a solid base being established during the
first twelve months and the group expects to return to profitability for the
year ending 28 February 2002.
