| Fri 6 Jul 2001, 0:00 | | National Sporting Index: Audited Results For The Y |
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AND FURTHER CAUTIONARY
NATIONAL SPORTING INDEX
(Incorporated in the Republic of South Africa)
(Registration number 1998/020418/06)
("NSI" or "the company")
AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2001 AND FURTHER CAUTIONARY
Balance sheets at 31 March 2001 2000
R R
ASSETS
Non-current assets 2 977 554 4 182 322
Equipment 910 345 2 569 566
Intangible assets 476 560 1 350 238
Investment in subsidiary - 262 518
Investment in associate 1 590 649 -
Current assets 3 900 631 13 288 697
Accounts receivable 2 529 345 5 353 700
Bank balances and cash 1 371 286 7 934 997
Total assets 6 878 185 17 471 019
EQUITY AND LIABILITIES
Equity 4 930 732 16 278 961
Issued capital 23 291 425 23 291 425
Accumulated (loss) (18 360 693) (7 012 464)
Current liabilities 1 947 453 1 192 058
Accounts payable 1 612 010 1 192 058
Bank overdraft 335 443 -
Total equity and liabilities 6 878 185 17 471 019
Net asset value per share (cents) 3,3 10,9
Number of shares in issue 150 000 000 150 000 000
Income statements for the years
ended 31 March 2001 2000
R R
Revenue 112 267 564 79 312 792
Operating (loss) (8 331 911) (6 603 794)
Finance income 521 829 1 081 330
Headline (loss) before
exceptional items (7 810 082) (5 522 464)
Exceptional items (3 538 147) (1 490 000)
Net (loss) (11 348 229) (7 012 464)
(Loss) per share (cents) (7,6) (5,5)
Headline (loss) per share (cents) (5,2) (4,3)
Cash flow statements for the years
ended 31 March 2001 2000
R R
Cash flows from operating activities
Cash utilised in operating activities (3 993 415) (10 099 074)
Interest received 521 829 1 081 330
Net cash from operating activities (3 471 586) (9 017 744)
Cash flows from investing activities
Equipment acquired (2 052 045) (3 056 544)
Intangible assets acquired - (3 169 623)
Proceeds on disposal of equipment - 3 000
Proceeds on disposal of
intangible assets 485 248 147 000
Investment in subsidiary and associate (1 860 771) (262 518)
Net cash used in investing activities (3 427 568) (6 338 685)
Cash flows from financing activities
Capital raised - 23 291 425
Net cash generated by
financing activities - 23 291 425
(Decrease)/Increase in cash
and cash equivalents (6 899 154) 7 934 996
Cash and cash equivalents at
beginning of year 7 934 997 -
Cash and cash equivalents at
end of year 1 035 843 7 934 996
Statement of changes in equity for the
year end 31 March 2001
Accumu-
Share Share lated
capital premium (loss) Total
R R R R
Balance at
1 April 1999 - - - -
Net (loss) for year (7 012 464) (7 012
464)
Issue of capital 15 000 23 276 425 - 23 291 425
Balance at
1 April 2000 15 000 23 276 425 (7 012 464) 16 278 961
Net loss for year (11 348 229) (11 348
229)
Balance at
31 March 2001 15 000 23 276 425 (18 360 693) 4 930 732
Comments
1. During May 2000, Keyes Capital assumed management control of NSI in an
attempt to restore profitability to the company. The strategy was to effect
a turnaround of the business with the intention of an on-sale of the
bookmaking activities to an international bookmaking operation while
positioning the company as a technology service provider to the wider gaming
industry. NSI continued to underperform due to a series of factors including
changing market conditions in the gaming industry, the injudicious granting
of credit by the previous management and the irrecoverability thereof.
2. In an effort to eliminate any further erosion of shareholder value, the
board of directors took a decision to cease all bookmaking activities with
immediate effect, to reduce the staff complement to an appropriate level and
to attempt to recover the outstanding debtors' book, against which adequate
provision has been made.
3. Keyes Capital investigated the past acts of mismanagement during the
previous year. The board has decided to institute appropriate action.
4. Although revenue increased during the 2001 financial year, losses
increased. NSI is finalising an agreement with a third party to dispose of
the three casino sites which will result in a cash injection to the company.
Upon conclusion of the negotiations details of the transaction will be
announced to shareholders along with the financial effects thereof.
5. The company has, to date, invested approximately R1,6 million in a
venture ("associate asset") involving certain gaming technology initiatives
that will focus on software development, management consulting, Internet
marketing and operational support opportunities within the global gaming
industry. The directors are confident that the associate will make a
significant contribution to future earnings and that the carrying value of
this investment is justified.
6. The financial statements have been prepared in accordance with Statements
of Generally Accepted Accounting Practice and have recognised the potential
realisation values of assets to be disposed of or recovered as well as the
costs of retrenchment. The auditors have issued a modified audit report
qualifying their opinion in respect of their inability to assess the value
of the associate asset due to the early development stage of their
operations. Without further qualifying their report, the auditors have drawn
attention to the ability of the company to continue as a going concern given
the changing nature of its business.
Further cautionary announcement
Further to the cautionary announcement published in the press on 9 May 2001,
shareholders are advised to continue to exercise caution in dealing in their
shares. It is anticipated that a further announcement will be made shortly
detailing the disposal of the casino sites.
By order of the board
B Stacey
Johannesburg
6 July 2001
Registered office: 2nd floor, 72 Grayston Drive, Sandown, 2196
11 Diagonal Street, Johannesburg, 2001
Auditors: Horwath Leveton Boner, Chartered Accountants (SA)
Sponsor: The Janus Corporation (Pty) Ltd
