| Fri 24 Aug 2001, 0:00 | | Sasfin Holdings Limited - Audited Group Results |
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Share code: SFN
ISIN Code: ZAE000006565
AUDITED GROUP RESULTS FOR THE YEAR ENDED 30 JUNE 2001
SASFIN HOLDINGS LIMITED
("the Group" and/or "the Company")
CONSOLIDATED BALANCE SHEET
at 30 June 2001 2000
R'000 R'000
ASSETS
Short-term interbank funds 115 539 94 439
Short-term negotiable securities 11 826 6 427
Investments 14 965 15 335
Advances 241 719 145 966
Accounts receivable 106 061 109 132
Investment in associate 35 055 24 041
Property and equipment 37 494 20 972
Total assets 562 659 416 312
LIABILITIES AND SHAREHOLDERS' EQUITY
Interbank funding 65 001 73 705
Deposits 243 215 112 672
Accounts payable 100 733 106 380
Deferred taxation 4 681 4 681
Total liabilities 413 630 297 438
Minority interest 7 872 6 412
Shareholders' funds
Reserves 140 929 112 247
Share capital 228 215
141 157 112 462
Total equity and liabilities 562 659 416 312
Contingencies and commitments 46 582 43 060
CONSOLIDATED INCOME STATEMENT
for the year ended 30 June 2001 2000
R'000 R'000
Interest income 48 369 42 715
Interest expense 29 511 19 670
Net interest income 18 858 23 045
Provision for credit losses (1 058) (2 330)
Income from lending activities 19 916 25 375
Other income 154 688 90 267
174 604 115 642
Securitisation equity income 5 962 12 858
Operating income 8 717 18 207
Taxation 2 755 5 349
Operating income 180 566 128 500
Operating expenses 146 371 95 639
Net income from operations 34 195 32 861
Taxation 2 072 2 168
Income after taxation 32 123 30 693
Minority interest 1 460 1 042
Net income for the year 30 663 29 651
Continuing operations 33 826 29 446
Discontinued operations (3 163) 205
Number of shares in issue (000)
- at end of year 22 768 21 460
- weighted average 22 349 19 487
Headline earnings per share (cents) 151,4 151,1
Earnings per share (cents) 137,2 152,2
Dividend per share (cents) 63 63
STATEMENT OF CHANGES IN EQUITY
for the year ended 30 June
Non-
Share Share distributable Retained Total
capital premium reserve income
R'000 R'000 R'000 R'000 R'000
Balance at 1 July 1999 186 61 620 16 779 55 253 133 838
Realisation of reserve - - (16 970) 16 970 -
Net income for the year - - - 29 651 29 651
Dividends - - - (4 653) (4 653)
Issue of share capital 29 29 972 - - 30 001
Write off of goodwill - (76 566) 191 - (76 375)
Balance at 30 June
2000 215 15 026 - 97 221 112 462
Net income for the
year - - - 30 663 30 663
Dividends - - - (1 968) (1 968)
Issue of share capital 13 (13) - - -
Balance at 30
June 2001 228 15 013 - 125 916 141 157
SUMMARISED CASH FLOW STATEMENT
for the year ended 30 June 2001 2000
R'000 R'000
Cash from operating activities 63 552 99 297
Cash from investing activities (28 349) (81 227)
Cash from financing acitivites - 27 006
Increase in cash and cash equivalents 35 203 45 076
Cash and cash equivalents at
beginning of year 27 161 (17 915)
Cash and cash equivalents at end
of year 62 364 27 161
NATURE OF BUSINESS
The Company is a bank-controlling company listed under the "Financial
Services" sector of the JSE Securities Exchange South Africa ("the JSE"),
whose subsidiaries and associate provide a comprehensive range of banking
products and financial and allied services, focusing on the broad-based
needs of its corporate, commercial and private clients. The main operating
company in the Group, now named Sasfin Bank Limited ("the Bank"), is
celebrating its 50th jubilee year.
COMMENTARY ON RESULTS
The Group achieved satisfactory results for the year under review taking
into consideration:
* the lack of any meaningful economic growth,
* decline in the JSE turnover which affects the stockbroking business,
* continued developmental costs relating to the banking operation,
* continued absorption costs relating to Sasfin Frankel Pollak Securities
(Pty) Limited ("SFPS") and Sasfin Financial Advisory Services (Pty) Limited
("SFAS"), and
* the expansion of the Debtor Finance division.
The acquisitions of SFPS and SFAS towards the second half of the previous
year had the effect of significantly increasing other income and operating
expenses and reducing net interest income because of the cash cost of the
investment.
The Treasury Outsourcing division of the Bank has been discontinued.
Subsequent to the publication of the interim results for the six months
ended
31 December 2000, the South African Reserve Bank published revised draft
regulations relating to the securitisation of assets. In accordance with
these draft regulations, Sasfin Asset Securitisation (Pty) Limited ("SAS")
should be remote from the Group and accordingly has not been consolidated.
The income from SAS is equity accounted.
The net effect on profits of having an investment denominated in foreign
currencies is approximately R7 million (2 000 : R5 million).
The advances, both owned by the Bank and securitised, increased by 50,4% to
R740,5 million (2000 : R492,2 million).
General provisions for bad and doubtful advances remain conservative and
stand at 2,2% of advances. In addition, advances are largely credit enhanced
and covered by third party insurance.
The Group's cost to income ratio of 81% (2000 : 74,4%) is high as a result
of the factors mentioned above. The Bank's cost to income ratio is 72,4%
(2000 : 69,5%).
Capital and reserves now total R141,2 million (2000 : R112,5 million). At
the year-end, the consolidated risk-weighted capital adequacy ratio is 26,7%
(2000 : 34,1%). The Bank's risk-weighted capital adequacy ratio is 22,8%
(2000 : 52,7%), against a prescribed minimum of 10%. Return on average
shareholders funds has remained at 24% and return on average assets is 6,3%
(2000 : 8,4%).
PROSPECTS
The Group could be adversely affected by weakness in world and domestic
economies, which, to some extent, may be compensated by declining interest
rates. Nonetheless, with the re-engineering of the Group nearing completion
and the momentum of growth in most operating divisions, there are reasonable
prospects
for satisfactory growth in earnings for the next financial year.
CAPITALISATION SHARE AWARD AND CASH DIVIDEND
The directors have resolved to award capitalisation shares to ordinary
shareholders registered in the books of the Company at the close of business
on Friday, 14 September 2001 ("the record date").
The rounded number of capitalisation shares to which a shareholder will be
entitled in terms of the capitalisation award will be determined by
multiplying the number of ordinary shares held by the shareholder by a
ratio. This ratio will be arrived at by multiplying 63 cents per share by
1,06 and dividing the result by the weighted average trading price of the
ordinary shares of the Company on the JSE for the three days ending
Wednesday, 29 August 2001. This issue price will be announced in the press
on Friday, 31 August 2001.
The last day to trade the Company's shares on the JSE to ensure a purchaser
appears, as an owner on the record date will be Friday, 7 September 2001.
Shareholders are entitled and will be given the opportunity to decline the
award of capitalisation shares in respect of all or part of their
shareholding and instead may elect to receive a cash dividend of 63 cents
per share ("the election") (2000: 63 cents per share).
Documentation dealing with the share award and election will be posted to
shareholders on or about Friday, 24 August 2001. Shareholders who have not
yet dematerialised their shares ("certificated shareholders") who wish to
elect to receive the cash dividends should complete the election form and
deliver/post it to the Transfer Secretaries so that it is received by them
by no later than 12h00 on Wednesday, 12 September 2001. Where shareholders
have dematerialised their share certificates, they should contact their
Central Securities Depository Participants ("CSDP") or broker and advise
them of their election so that the CSDP or broker can in turn inform
the Transfer Secretaries of this election by no later than 12h00 on
Wednesday, 12 September 2001. This should be done in terms of the agreement
in existence between the dematerialised shareholder and the CSDP or broker.
Application will be made to the JSE for the capitalisation shares to be
listed with effect from the commencement of business on Monday, 10 September
2001 when the price of the Company's securities will be quoted "ex" the
capitalisation award. It is expected that dividend cheques and share
certificates (where required) in respect
of new ordinary shares will be posted to shareholders on or about Monday,
17 September 2001.
The uncertificated securities in terms of this capitalisation issue will
become available for settlement on Monday, 17 September 2001.
For and on behalf of the Board
MB Glatt RDEB Sassoon Chairman Group Managing Director
27 August 2001
