| Thu 6 Sep 2001, 0:00 | | Spearhead - Final Results For The Year Ended 30 Ju |
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SPEARHEAD PROPERTY HOLDINGS LTD
Registration Number 1996/005827/06
Share Code: SPE ISIN: ZAE 000019162
("The company")
Financial Highlights
* Distribution per linked unit up 9.6% to 120c
* Net Asset Value per unit up 22.2% to R12,00 per unit
Final Results For the year ended 30 June 2001
ABRIDGED CONSOLIDATED INCOME STATEMENT
Audited Audited
12 months 12 months
ended ended
% 30 Jun 01 30 Jun 00
Change R'000 R'000
Revenue 3.44% 52,711 50,960
Operating income 39,224 37,849
Before: Depreciation 1,090 1,082
Goodwill amortised 970 970
Net finance costs 21,455 20,059
Profit before revaluation 15,709 15,738
Revaluation of investment
properties 31,230 -
Profit before debenture interest 46,939 15,738
Debenture interest 15,694 15,659
Profit before taxation 31,245 79
Income taxation expense 255 380
Net profit/(loss) for the year 30,990 (301)
Linked units in issue
(weighted average) 13,478,343 14,320,395
Headline earnings per
linked unit (cents) 121.85 113.88
Distribution per
linked unit (cents) 9.59% 120.00 109.50
ABRIDGED CONSOLIDATED CASH FLOW STATEMENT
Audited Audited
12 months 12 months
ended ended
30 Jun 01 30 Jun 00
R'000 R'000
Cash generated from operations
before working capital changes 37,026 28,676
Working capital changes 10,025 14,509
Net finance costs (35,948) (26,565)
Cash flows from operating activities 11,103 16,620
Cash flows from investing activities 19,602 (308,628)
Cash flows from financing activities (32,745) 297,099
Net decrease in cash and
cash equivalents (2,040) 5,091
Cash and cash equivalents at
beginning of year 5,091 -
Cash and cash equivalents at
end of period 3,051 5,091
ABRIDGED CONSOLIDATED BALANCE SHEET
Audited Audited
12 months 12 months
ended ended
% 30 Jun 01 30 Jun 00
Change R'000 R'000
Non current assets 317,373 306,616
Property, plant and equipment 298,623 287,634
Goodwill 17,458 18,428
Other financial assets 1,064 554
Deferred taxation 228 -
Current assets 28,851 20,416
Trade and other receivables 4,186 3,225
Forward Exchange cover asset 1,000 -
Cash and cash eqivalents 23,665 17,191
Total assets 346,224 327,032
Equity and liabilities
Equity and Non current
liabilities 317,916 305,725
Capital and reserves 34,731 619
Debentures 126,948 139,966
Linked unitholders' interest 161,679 140,585
Interest bearing borrowings 155,420 164,745
Deferred taxation 817 395
Current liabilities 28,308 21,307
Trade and other payables 19,429 9,352
Unitholders for distribution 8,879 8,369
Forward exchange cover liability - 3,586
Total equity and liabilities 346,224 327,032
- -
Net asset value per linked unit
including goodwill (rands) 22.20% 12.00 9.82
Net asset value per linked unit
excluding goodwill (rands) 25.44% 10.70 8.53
Statement of Changes in Equity
Share Share Distributable
Capital Premium Reserve Total
R'000 R'000 R'000 R'000
Balance at 30 June 1999 1 - - 1
Issue of shares 142 716 - 858
Unrealised gain - - 61 61
Net loss - - (301) (301)
Balance at 30 June 2000 143 716 (240) 619
Issue of shares (14) - - (14)
Attributable earnings - - 30,990 30,990
Unrealised loss (178) (178)
Discount on debentures - - 3,314 3,314
Balance at 30 June 2001 129 716 33,886 34,731
Comment
Financial Performance
The company has enjoyed another good year of trading. Headline earnings were
raised mainly as a result of improved occupancy levels and lower finance
costs. This coupled with the flow-through benefits from the share buy-back
programme has allowed a 9.6% increase in the distribution per linked unit
for the full year to 120 cents per linked unit.
Effects of AC 135
The group results have been prepared in accordance with the South African
Statements of Generally Accepted Accounting Practice. The revaluation of
investment properties arose as a result of the early adoption of AC 135
(investment property) which requires that all gains and losses from changes
in the fair value of investment properties be included in net profit or loss
for the period. This has had the effect of boosting earnings by 216.7% over
the corresponding period of last year. Comparative information has not been
restated under this statement
Portfolio Activity
Two properties were sold during the period; the Buitenkant Street Complex
and Northcliff Auto resulting in a net profit of approximately R1m. This was
in line with the strategy to monitor and upgrade the quality of the
portfolio.
A large tract of land measuring 53,000 m2 has been acquired in Montague
Gardens adjoining Century City in Cape Town at a cost of R8m. The company
will commence construction of a 20,000 m2 (R45m) Business Park development
in the new financial year.
Occupancy levels in the portfolio rose to 94% at the end of the period,
up from 92% for the corresponding period last year.
Revaluation of Portfolio
The portfolio has been revalued by Douglas Property Valuations as at 29 June
2001 resulting in a R31m net gain in value. This translates into an
increased net asset value per linked unit of R2.20 to R12.00.
Share Buy Backs
The company, via a subsidiary, has acquired 1,328,378 linked units during
the year at an average all-in cost of R7,37 per unit. This brings the total
holding by the subsidiary to 1,366,678 units or 9.5% of the total shares in
issue.
The Board
Two directors, Cavin Chait and Geoff Ziman resigned as directors of the
company with effect from 1 February 2001 and 20 June 2001 respectively.
Monty Kaplan and Dennis Fabian were appointed directors with effect from 30
August 2001.
Prospects
The company is budgeting a modest growth in rentals for the forthcoming year
and coupled to lower finance costs, should achieve a real growth in earnings
per linked unit.
Distribution Declaration
Notice is hereby given of the declaration of distribution No 4 in respect of
the six months to 30 June 2001 which amounts to 62 cents per unit. The last
date to trade cum distribution will be Friday 28 September 2001, and the
units will commence trading ex distribution from Monday 1 October 2001, with
the record date being Friday 5 October 2001. Payment will be effected on 8
October 2001.
On behalf of the Board
M Kaplan M N Flax
Chairman Managing Director
Cape Town
6 September 2001
For more information on the company, see: www.spearheadprop.com
Directors:
M Kaplan (Chairman), M N Flax (Managing), J E Allie, D M Wilder, A Groll,
H Schreuders, F van Hoogstraten, D B Fabian
Registered Office:
Level P, The Centurion, Main Road,
Three Anchor Bay, Cape Town, 8001
Transfer Secretaries:
Mercantile Registrars Limited,
11 Diagonal Street, Johannesburg, 2001.
PO Box 1053, Johannesburg, 2000
