| Thu 30 Aug 2001, 0:00 | | Cfc - Interim Results 2001 And Dividend Declaratio |
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COMMERCIAL FINANCE COMPANY LIMITED
Registration no 1944/000264/06
SHARE CODE : CFC
ISIN : ZAE000001343
INTERIM RESULTS 2001 AND DIVIDEND DECLARATION
* HEADLINE EARNINGS PER SHARE UP 99%
* CASH HEADLINE EARNINGS PER SHARE UP 31%
* DIVIDENDS INCREASED BY 21%
* NET ASSET VALUE 5220 CENTS
The Group unaudited results for the six months to 30 June 2001 are as
follows:
Half Year Ended Year Ended
30/6/01 30/6/00 31 Dec 00
Proforma Audited
(R000) (R000) (R000) (R000)
GROUP INCOME STATEMENT
Profit from operations before
taking into account the
following items: 4,488 3,557 6,648 6,648
Depreciation (87) (134) (222) (222)
Interest paid (712) (36) (78) (78)
Operating profit 3,689 3,387 6,348 6,348
Dividends 4,993 4,732 8,977 8,977
Listed 4,993 4,334 8,180 8,180
Unlisted 0 398 797 797
Associated companies 8,416 1,433 7,510 (17,029)
Dividends 1,425 550 5,799 5,799
Retained earnings 6,102 883 1,381 3,929
Capital surplus 889 0 330 330
Exceptional items 0 0 0 (27,087)
Exceptional items (298) 0 (663) (663)
Capital and other items 19,895 0 6,583 6,583
Profit before taxation 36,695 9,552 28,755 4,216
Taxation (1,121) (1,030) (1,704) (1,704)
Profit after taxation 35,574 8,522 27,051 2,512
Preference and outside
shareholders (2,757) (1,249) (1,634) (1,634)
Profit attributable to
ordinary shareholders 32,817 7,273 25,417 878
Reconciliation of headline earnings
Profit attributable to
ordinary shareholders 32,817 7,273 25,417 878
Capital and other items (18,358) 0 (6,250) 20,837
Headline earnings 14,459 7,273 19,167 21,715
Ordinary shares issued
(000's) 9,920 9,920 9,920 9,920
Headline earnings per
share (cents) 145.7 73.3 193.2 218.9
Cash Headline earnings
per share (cents) 84.2 64.4 179.3 179.3
Basic earnings per
ordinary share (cents) 330.8 73.3 256.2 8.9
Dividend
- per share (cents) 35.0 29.0 114.0 114.0
- times covered 4.2 2.5 1.7 1.9
ABRIDGED GROUP BALANCE SHEET
Ordinary shareholders
interest 229,945 215,263 196,830 197,559
Preference share capital 154 154 154 154
Outside shareholders
interest 11,040 9,079 9,104 9,104
Total shareholders
interest 241,139 224,496 206,088 206,817
Current liabilities 22,969 1,035 20,487 20,487
Total equities and
liabilities 264,108 225,531 226,575 227,304
Property, plant and
equipment 54,672 39,572 51,360 51,360
Investments 200,637 171,096 152,733 153,462
Listed 83,514 48,321 64,598 64,598
Associate companies 109,552 120,777 86,337 87,066
Unlisted 1,100 1,100 1,100 1,100
Loan 6,471 898 698 698
Current assets 8,799 14,863 22,482 22,482
Total assets 264,108 225,531 226,575 227,304
Net asset value per
Ordinary share
At book value (cents) 2,318 2,170 1,984 1,991
At market value (cents) 5,220 4,682 4,905 4,905
Investments
Listed at market
value (R000) 263,051 241,184 230,640 230,640
Associated companies at
directors valuation
(R000) 193,900 145,358 184,370 184,370
Unlisted at directors
valuation (R000) 2,150 2,150 2,150 2,150
Land and buildings
Open market value
(directors valuation)
(R000) 86,250 81,025 86,250 86,250
Capital expenditure
(R000) 3,400 863 13,388 13,388
Capital expenditure
Committed and
Authorised (R000) 0 0 6,094 6,094
Contingent liabilities
(R000) 0 0 0 0
ABRIDGED CASH FLOW STATEMENTS
Net cash inflows from
operating activities 12,415 (4,154) 9,793 9,793
Net cash in/(out)flow
from investing
activities (23,523) 10,402 739 739
Net increase in cash
equivalents (11,108) 6,248 10,532 10,532
Cash and cash equivalents
At beginning of year 11,316 784 784 784
Cash and cash equivalents
at end of year 208 7,032 11,316 11,316
STATEMENT OF CHANGES IN EQUITY
Share capital, Capital
redemption reserve and
General reserve 549 549 549 549
Non-distributable
reserve 87,460 104,611 80,170 80,899
Balance at beginning 80,170 103,728 78,460 103,728
Associates 6,992 883 1,710 (22,829)
Exceptional items 298 0 0 0
Capital profits reserve 64,869 40,519 47,102 47,102
Balance at beginning 47,102 40,519 40,519 40,519
Capital profits 17,767 0 6,583 6,583
Accumulated profit 77,067 69,584 69,009 69,009
Balance at beginning 69,009 63,194 63,194 63,194
Profit for year 32,817 7,273 25,417 878
Dividends 0 0 (11,309) (11,309)
Capital profits (17,767) 0 (6,583) (6,583)
Associates (6,992) (883) (1,710) 22,829
Ordinary shareholders
interest 229,945 215,263 196,830 197,559
GROUP LISTED INVESTMENTS
Shares Held Market Value
30 Jun 01 31 Dec 00 30 Jun 01 31 Dec 00
Anglo American PLC 309,800 309,800 37,052 31,677
Barloworld 0 21,164 0 1,007
BoE Ltd 18,940,805 20,245,881 85,423 90,499
HomeChoice 21,941,300 0 39,056 0
Idion Technology 1,317,800 0 1,555 0
Mr Price Group 17,070,342 16,946,161 69,306 62,362
Paramount 285,480 285,480 1,413 1,713
RMB Holdings 1,304,046 1,393,898 16,496 16,378
Tongaat-Hullet Group 300,000 700,146 12,750 26,711
Wilson Bayly Holmes
-Ovcon 0 71,370 0 293
263,051 230,640
GROUP ASSOCIATED COMPANIES
1 Associated companies
(Effective holdings of listed investments)
Shares Held Market Value
30 Jun 01 31 Dec 00 30 Jun 01 31 Dec 00
My Prize Investments (Pty)Limited (R000) (R000)
(50% investments 2000 50%)
BoE Ltd 29,158,186 59,158,186 131,503 264,437
Net cash 141,663 0
Preference share funding (111,306) (94,377)
161,860 170,060
Group share 80,930 85,030
Really Noble Investments Limited
(30% investment 2000 30%)
BoE Ltd 42,058,111 42,058,111 189,682 188,000
Commercial Finance
Company Ltd 1,575,889 1,575,889 48,065 49,641
Congella Federation Ltd 4,652 4,652 379 377
Paramount 10,750 10,750 53 65
RMB Holdings Ltd 2,895,640 2,895,640 36,630 34,024
Congella Federation
6% pref 2,165 2,165 3 3
Preference share
funding 0
Cash 10,109 10,514
284,921 282,624
Group share 85,476 84,787
2 The Laser Group Ltd 8,331,404 8,085,004 27,494 14,553
(Group Holding 31.85%)
193,900 184,370
GROUP UNLISTED INVESTMENTS
(Directors valuation) 2,150 2,150
COMMENT
The unaudited results for the six months ended 30 June 2001 reflect an
increase in Headline earnings of 99% to R14,459,000 (2000 - R7,273,000).
This increase is largely due to the acquisition of a 31.85% holding in The
Laser Group. Their results for the six months to 31 March 2001 have been
equity accounted in the six months to 30 June 2001.
Cash Headline earnings increased by 31% to 84.2 cents per share (2000 - 64.4
cents per share).
Significant changes in the investment portfolio include the disposal of
400,146 Tongaat-Hulett shares and the acquisition of 21,941,300 shares in
HomeChoice. Since 30 June 2001 the Group has acquired a further 5,287,300
in HomeChoice bringing the total holding to 20.08% and as a result will
become an associate company.
The comparatives for June 2000 and the proforma at 31 December 2000 have
been adjusted to exclude all equity accounted earnings of the BoE Group
following the unbundling of that Group in 2000.
GROUP STRATEGY
The Group is continuing on its strategy to acquire strategic and/or
controlling interests in operating companies as opposed to pure portfolio
investments.
PROSPECTS
Expectations are for a meaningful increase in earnings per share for the
year.
DECLARATION OF DIVIDEND
Notice is hereby given that the Board has declared an interim dividend of 35
cents per ordinary share in respect of the half year ended 30 June 2001.
The dividend will be paid on Monday 29 October 2001.
To comply with the procedures of STRATE the last day to trade in the shares
for purposes of entitlement to the interim dividend is Friday 19 October
2001. The shares will commence trading ex dividend on Monday 22 October
2001 and the record date will be Friday 26 October 2001.
Durban By order of the Board
31 August 2001 C VAN DER POL (CHAIRMAN)
W J SWAIN (MANAGING DIRECTOR)
Registered Office Transfer Secretaries
1100 Mansion House Mercantile Registrars Ltd
Field Street, Durban P O Box 1053, Johannesburg
4001 2000
Directors: C van der Pol, D E Daugherty, W J McAdam, W J Swain
