| Thu 26 Jul 2001, 0:00 | | Sabvest Limited - Interim Results |
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Sabvest Limited
Registration number 1987/003753/06
Interim results for the six months ended 30 June 2001
Income statement
for the six months ended 30 June 2001
2001 2000 2000
Six Six Twelve
months months months
30 June 30 June 31 December
Unaudited Restated Audited
R'000 R'000 R'000
Gross income from
operations and investments 11 242 13 556 29 967
Dividends received 2 741 2 378 4 356
Interest received 1 259 3 714 6 832
Other income 1 194 1 197 1 311
Share of equity accounted
retained income 6 048 6 267 17 468
Interest paid 4 003 5 050 9 429
Net income from operations
and investments 7 239 8 506 20 538
Less: Expenditure 3 046 3 053 6 206
Operating costs 2 771 2 789 5 678
Depreciation 275 264 528
Net income before exceptional
items 4 193 5 453 14 332
Exceptional losses (525) (3 264) (7 541)
Group (685) (684) (5 329)
Associates 3 113 (497 (2 634)
Amortisation/write-off
of goodwill (2 953) (539) (3 306)
Investment impairment
provisions - (1 544) 3 728
Net income before taxation 3 668 2 189 6 791
Taxation - - -
Net income attributable to
ordinary shareholders 3 668 2 189 6 791
Headline earnings adjustments 525 3 264 7 541
Headline earnings 4 193 5 453 14 332
Headline earnings per
share - cents 8,8 10,4 27,5
Earnings per share - cents 7,7 4,2 13,0
Weighted number of shares in
issue - 000's 47 627 52 328 52 066
Balance sheet
at 30 June 2001
2001 2000 2000
30 June 30 June 31 December
Unaudited Restated Audited
R'000 R'000 R'000
Ordinary shareholders' equity 138 642 132 028 133 737
Interest-bearing debt 47 693 60 798 49 114
Accounts payable 5 527 8 398 5 830
Total funds 191 862 201 224 188 681
Fixed assets 1 519 1 905 1 781
Investment holdings 182 680 183 693 179 977
Listed 72 082 55 677 71 092
Unlisted 106 015 117 856 105 089
Net goodwill 4 583 10 160 3 796
Finance advances and
receivables 6 779 14 960 5 551
Cash balances 884 666 1 372
Total assets 191 862 201 224 188 681
Net asset value per share
with all investments at
carrying value - cents 292 252 281
Net asset value per share
with listed investments at
market value - cents 225 272 275
Number of shares in
issue - 000's 47 456 52 328 47 664
Summarised cash flow statement
for the six months ended 30 June 2001
2001 2000 2000
Six Six Twelve
months months months
30 June 30 June 31 December
Unaudited Restated Audited
R'000 R'000 R'000
Cash utilised in operating
activities (1 722) (1 171) (11 761)
Cash utilised for payment of
dividends and reduction in
accounts payable (303) (9 612) (7 994)
Cash generated by investing
activities 3 207 8 890 34 832
Cash effects of financing
activities (249) (685) (5 265)
Change in cash and cash
equivalents 933 (2 578) 9 812
Interest-bearing debt,
less cash balances,
at beginning of period/year (47 742) (57 554) (57 554)
Interest-bearing debt,
less cash balances,
at end of period/year (46 809) (60 132) (47 742)
Statement of changes in equity
for the six months ended 30 June 2001
Non-
distri- Distri-
Share Share butable butable
capital premium reserve reserves Total
R'000 R'000 R'000 R'000 R'000
Restated opening
balance at 01/01/00 973 58 652 42 388 26 261 128 274
Translation of
foreign subsidiary/
associate company 4 034 4 034
Attributable income
of associates 11 153 (11 153) -
Movement on NDR
of associates (97) (97)
Retained income
for the year 6 791 6 791
Shares held
in treasury (87) (5 178) (5 265)
Opening balance
as at 01/01/01 886 53 474 57 478 21 89 133 737
Translation of
foreign subsidiary/
associate company 1 614 1 614
Attributable income
of associates 6 444 (6 444) -
Retained income for
the period 3 668 3 668
Shares held in
treasury 87 5 178 5 265
Shares cancelled (87) (5 555) (5 642)
Balance as at
30/06/01 886 53 097 65 536 19 123 138 642
Commentary
PROFILE
Sabvest is a holding company with significant minority or joint controlling
interests in seven listed and five unlisted companies on all of whose boards
Sabvest is represented.
COMPARATIVE FIGURES
The comparative figures for the six months ended 30 June 2000 have been re-
stated to comply with AC110 Revised.
FINANCIAL RESULTS
Interim headline earnings reduced by 15% to 8,8 cents per share. This
reduction was a result of weaker than expected results from the distribution
and service businesses in which the group is invested and lower interest
receipts because of the current structure of the group's investment and loan
portfolios.
Adjusted net asset value per share, calculated with unlisted holdings at
carrying value and listed holdings at market value, reduced to 225 cents per
share due to the low market prices of Datatec and Primedia and of the
group's small cap holdings at the reporting date.
CHANGEs in INVESTMENT holdings
The group has:
disposed of its interests in Learning Resources (Pty) Limited;
reduced its holding in Primedia by 1 million units to 1,6 million units;
disposed of its interest in Campbell & Thiselton Investment Holdings (Pty)
Limited to Natural Health Holdings Limited (NHH) and increased its interest
in NHH to 64,8 million shares as a result of the consideration received and
through market purchases;
completed its investment subscription undertaking of a further R4 million
in Korbitec Holdings (Pty) Limited; and
reverted to a 40% holding in Flowmax Holdings Limited.
Subsequent to the reporting date Sabvest has contracted to:
dispose of R6 million of its preference shares in SA Bias Industries
Limited on 31 July 2001; and
accept in principle the proposed offer of 40 cents per share to the
minorities of Metropolis Transactive Holdings Limited relative to its
interest of 4,4 million shares.
DIVIDENDS
Dividend payments are considered annually and may vary or be waived
depending on the group's cash requirements for the investments, reduction of
borrowings or share buy-backs. No dividend is planned for the 2001 financial
year.
prospects
The group's programme for the disposal of investments to reduce interest-
bearing debt and focus on fewer business interests is proceeding
satisfactorily and should be concluded over the next eighteen months. A
better mix of holdings and reduced interest bill should then impact
favourably on the group's results.
With regard to the current financial year, headline earnings are expected to
decline in line with the reduction reflected in the interim results.
Christopher Seabrooke Philip Coutts-Trotter
Executive Chairman Deputy Chairman
Sandton
27 July 2001
Communication:
46A Wierda Road West, Wierda Valley, Sandton 2196
PO Box 78677, Sandton 2146, Republic of South Africa
Tel: +27 11 784-7932 Fax: +27 11 784-7941
e-mail: ho@sabvest.co.za
Directors: CS Seabrooke* (Chairman), P Coutts-Trotter (Deputy Chairman),
HHabib, NSH Hughes, GE Nel, P Pencharz, R Pleaner*, RS Price *Executive
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