| Thu 16 Aug 2001, 0:00 | | Audited Final Results For Lyons Financial Solution |
|
W(Formerly The Learning Corporation Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1997/22117/06)
Group Income Statement
For the 17 months ended 31 May 2001
lfshl ltd per tlc afs pro forma
consolidated lfshl ltd
@ 31 may 2001 @ 31 dec 1999 @ 31 dec 1999
(17 months) (12 months)
R R R
fee income 47,426,122 8,392,000 15,224,000
interest received 35,410 130,285
interest paid (1,314,652) (267,408
staff costs (17,863,046) (4,124,899)
depreciation (251,237) (204,610)
other operating
costs (7,901,264) (9,135,000) (6,337,893)
operating profit
before tax 20,131,333 (743,000) 4,419,475
exceptional items - 34,986,000 -
net profit before
taxation 20,131,333 34,243,000 4,419,475
taxation 6,297,814 (4,000) 1,325,843
net profit after
taxation 13,833,519 34,247,000 3,093,632
EPS CALCS.
shares in issue 331,574,896 67,204,000 332,954,000
earnings per share 4.17
(17 months)
earnings per share 2.94 61.50 0.93
(annualised)
headline earnings
per share 4.17
(17 months)
headline earnings
per share 2.94 -1.30 0.93
(annualised)
EBITDA calculation 21,661,812 -743,000 4,761,208
Group Statement of Changes in equity
share share non- retained
capital premium distribu- income total
table
reserve
balance
@ 31 dec
1998 6,720 1,990,880 1,731,400 3,729,000
net profit
for the
year 34,247,000 34,247,000
dividends paid -36,726,000 -36,726,000
shares
issued 26,480 41,093,520 41,120,000
goodwill
written
off on
businesses
acquired -40,734,349 -40,734,349
balance @
31 dec
1999 33,200 2,350,051 -747,600 1,635,651
listing
costs @
31 may
2000 -2,035,042 -2,035,042
net surplus
on sale of cape
town and
durban
businesses 1,670,939 1,670,939
net profit
for the
17 month
period 13,833,519 13,833,519
balance @
31 may
2001 33,200 315,009 1,670,939 13,085,919 15,105,067
balance sheet
year ended for 31 may 2001
TLC actuals pro forma
31 May 2001 31 December 31 December
1999 1999
R R R'000
assets
non-current assets
property, plant
& equipment 333,506 - 421,478
investments 377,681
loan to share
incentive trust 450,755 250,000 250,000
total non-current
assets 1,161,942 250,000 671,478
current assets
receivables 22,241,201 - 4,583,031
cash and equivalents 1,806,253 1,092,000 1,399,138
total current
assets 24,047,454 1,092,000 5,982,169
total non-current
& current assets 25,209,396 1,342,000 6,653,647
equity and liabilities
capital and reserves
share capital and
premium 348,209 1,998,000 1,530,583
non distributable
reserve 1,670,939
retained income 13,085,919 -746,000 505,250
total capital and
reserves 15,105,067 1,252,000 2,035,833
liabilities
long term
liabilities 124,396 - 91,959
taxation payable 6,297,814
accounts payable 3,319,780 90,000 2,898,900
bank overdraft 362,339 - 1,626,955
total liabilities 10,104,329 90,000 4,617,814
total equity and
liabilities 25,209,396 1,342,000 6,653,647
net asset value
(per share) 4.56 1.49 0.61
CONDENSED CASHFLOW STATEMENT
17 months ended 31 may 2001 Lyons Tlc Dec 1999
operating and financing
activities 4,229,754.00 -71,258,000.00
investing activities -3,877,840.00 58,326,000.00
movement in cash and short
term funds 351,914.00 -12,932,000.00
opening cash and short
term funds 1,092,000.00 14,024,000.00
closing cash and short
term funds 1,443,914.00 1,092,000.00
comparison note
No comparitive cash flow statement is provided for Lyons Financial Solutions
as this is the groups first period of trading.
group structure
Operational overview
Shareholders are referred to the Unaudited results for the group published
in April 2001. The group continues to trade exceptionally well and remains
focused on the niche markets created. Lyons Asset Management continues to
grow organically in corporate real estate investment and asset management.
The lower margin broking operations have been sold to the existing managers
under an exclusive service delivery agreement and the group has instituted a
broker management policy to ensure the client portfolios receive the
optional risk management services. Lyons Capital and Asset Finance continues
to develop its own well planned niche sector of short term rental finance
focusing on consolidation opportunities and service delivery across the
Lyons dedicated Key Account Management platform, a delivery mechanism
proving to be a competitive advantage in the financial services industry.
Lyons acquired the corporate services business of TWS Consulting to create
critical mass in the Lyons Corporate and Structured Finance division. The
acquisition is expected to integrate the existing core competencies within
the division and management expect to grow this division substantially
during the next reporting period. Celexa, the pan European Investment and
Asset Management partner of Lyons, was acquired by Aberdeen Asset
Management, a London listed financial services business creating the largest
European discretionary, 3rd party asset manager. The working relationship
has been enhanced tremendously through the acquisition, and management are
confident the partnership will enable Lyons to secure a share of the
institutional, parastatal and government asset management work.
explanation of financial results
Financial performance of the group was in line with management forecasts.
Annualised growth in earnings in excess of 200% was achieved and a healthy,
low geared balance sheet has been a result of this strong performance. The
positive cash flow enables the group to comfortably fund its growth
forecasts for the ensuring reporting period.
Share capital
Pursuant to the initial acquisition agreement finalised during the period
under review, the company will issue an additional 128 641 052 shares to the
vendors of the businesses which will be listed on the Johannesburg
Securities Exchange with immediate effect.
Results of general meeting
The Circular to shareholders dated 17th July 2001 refers. The special and
ordinary resolutions proposed at the general meeting of the company held on
Wednesday 8th August 2001 were passed and the Registrar of Companies has
registered the special resolution:
- the disposal of the western cape property broking services business to
Baker Street Associates (Cape Town) (Propriety) Limited ("Baker Street");
and
- the repurchase by Lyons Asset Management (Proprietary) Limited ("LAM"), a
wholly owned subsidiary of the company, of 10 000 000 ordinary shares in the
company held by Baker Street as part consideration for the sale by LAM of
its Western Cape property broking services business to Baker Street
Empowerment
management are committed to empowerment and equality at all levels of its
business and to this end have entered negotiations with empowerment groups
to design a working model of not only wealth sharing but also substantial
skills delivery and transfer at all levels. The government tender recently
released has short listed Lyons Asset Management as a candidate for its
strategic partner in real estate investment and asset management. The group
is confident that the alchemy between its skills base and the open-
mindedness of its philosophy, people and culture will enable it to deliver
the requirements of the tender as well as considerable value to the
participants.
Quo vadis
Underpinning financial strategy sums up the overall direction of the group
as South African businesses engender a greater acceptance to the concept of
outsourcing non-core operational activities and the benefits of a world-
class insourced partner. Management remain aware of the fact that focused
people and a healthy balance sheet will ensure the group's continued
success. The company remains in its growth phase of the life cycle and are
investigation a number of acquisition possibilities but not at the cost of
focus. Organic growth, with assets under management as the target ratio, is
substainable in the near term with the growing threat of competition
becoming an eventuality.
Garry Fromentin Ian Hewett
chief executive chief financial officer
Directors
M Judin* (chairman), G Fromentin**(Chief Executive), I Hewett (chief
financial officer),
M Kretzmer (group managing director), dr V Sibiya*, D Seaton, K Modise*, T
Mosololi
*Non-executive **British
communication
Lyons Place, 10 benmore road, morningside, sandton, South Africa
P O Box 87621, Houghton, 2041
Tel: (+2711) 324 2000 # Fax: (+2711) 324 2001
e-mail: enquiries@lyons.co.za
www.lyons.co.za # www.celexa.co.uk
