| Fri 7 Sep 2001, 0:00 | | Sail: Unaudited Interim Results For The Six Months |
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Southern African Investments Limited
Incorporated in the Republic of South Africa
Registration No. 1941/014601/06
Share code:SIL ISIN code: ZAE000013041
("SAIL")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2001
FINANCIAL HIGHLIGHTS
Headline Earnings up 47%
Net Asset Value per share up 106%
Balance sheets
audited
unaudited unaudited financial
interims interims statements
30 June 30 June 31 December
2001 2000 2000
R'000 R'000 R'000
ASSETS
Non-current assets
Deferred taxation 5 182 3 298 4 499
Intangible assets 95 526 87 747 93 126
Investments and loans 6 876 6 182 475
Investments in Associates and
Joint Ventures 72 395 41 297 57 962
Property, plant and equipment 47 026 37 325 43 984
227 005 175 849 200 046
Current assets
Other current assets 33 934 29 353 31 218
Short-term investments 8 542 - 5 616
Cash and cash equivalents 61 577 8 983 75 452
104 053 38 336 112 286
Total assets 331 058 214 185 312 332
EQUITY AND LIABILITIES
Capital and reserves 191 777 68 097 184 305
Minority interest 3 969 3 770 4 344
Non-current liabilities
Interest bearing borrowings 70 533 72 203 71 254
Non-interest bearing borrowings 3 209 28 457 4 375
Income received in advance 7 694 2 075 2 823
81 436 102 735 78 452
Current liabilities
Bank overdraft 2 526 1 509 1 943
Other current liabilities 32 022 22 698 33 267
Income received in advance 19 328 15 376 10 021
53 876 39 583 45 231
Total equity and liabilities 331 058 214 185 312 332
Net Asset Value per share (cents) 79.84 38.70 76.95
Shares in issue ('000) 245 168 185 709 245 168
Segment report
Other Online
Sports Invest- and Adjust- Total
Brands ments Media ments
R'000 R'000 R'000 R'000 R'000
Revenue 33 526 4 293 2 155 - 39 974
Segment results 6 109 (2 848) 1 321 (584) 3 998
Goodwill amortised (708)
Finance costs 584 (7 416)
Profit on sale of fixed assets 3
Income from Associates
and Joint Ventures 11 691 (116) (1 141) - 10 434
Minority interest 551
Taxation 612
Net profit for the period 7 474
Segment assets 128 077 71 921 7 692 (271) 207 419
Short-term investments 8 542
Investment in Associates
and Joint Ventures 57 504 5 167 9 724 - 72 395
Other investments 6 876
Goodwill 30 239
Deferred taxation 5 182
Taxation 405
Total assets 331 058
Segment liabilities 28 461 8 395 1 291 (271) 37 876
Long-term interest bearing
borrowings 70 533
Long-term non-interest
bearing borrowings 3 209
Current portion of interest
bearing borrowings 5 675
Current portion of non-interest
bearing borrowings 18 019
Total liabilities 135 312
Depreciation 2 045 1 092 141 - 3 278
Income statements
12 months
6 months 6 months audited
unaudited unaudited financial
interims interims statements
30 June 30 June 31 December
2001 2000 2000
R'000 R'000 R'000
Revenue 39 974 36 885 72 883
Other income 5 583 4 052 8 153
Operating expenses (42 264) (31 860) (63 231)
Profit from operations 3 293 9 077 17 805
Finance costs (7 416) (7 661) (14 001)
Income from Associates and
Joint Ventures 10 434 4 597 11 106
Profit before tax 6 311 6 013 14 910
Taxation 612 420 112
Profit after tax 6 923 6 433 15 022
Minority interest 551 116 (167)
Net profit for the period 7 474 6 549 14 855
Earnings per share (cents) 3.05 3.53 7.23
Headline Earnings per share (cents) 3.83 3.43 8.01
Weighted average shares in issue ('000) 245 168 185 709 205 529
Cashflow statements
12 months
6 months 6 months audited
unaudited unaudited financial
interims interims statements
30 June 30 June 31 December
2001 2000 2000
R'000 R'000 R'000
Cash inflow from operating activities 4 034 2 069 4 090
Cash outflow from investing activities (17 734) (4 799) (24 828)
Cash (outflow)/inflow from
financing activities (758) 2 096 86 394
Net (decrease)/increase in cash and
cash equivalents (14 458) (634) 65 656
Cash and cash equivalents at
beginning of period 73 509 8 108 7 853
Cash and cash equivalents at
end of period 59 051 7 474 73 509
Statement of changes in equity
Non-
Stated Distributable distributable
capital Reserves Reserves Total
R'000 R'000 R'000 R'000
Balance at 30 June 2000 44 877 22 995 225 68 097
Issue of stated capital 109 157 - - 109 157
Net profit for the period - 7 051 - 7 051
Transfer to non-distributable
reserve - (3 516) 3 516 -
Balance at 31 December 2000 154 034 26 530 3 741 184 305
Net profit for the period - 7 474 - 7 474
Transfer to non-distributable
reserve - - (2) (2)
Balance at 30 June 2001 154 034 34 004 3 739 191 777
Review of results
SAIL's results for the six-month period ended 30 June 2001 show solid
growth, despite difficult market conditions. Headline Earnings increased 47%
from R6.4 million to R9.4 million and Headline Earnings per share increased
12% from 3.43 cents to 3.83 cents per share from 30 June 2000.
Net asset value increased by 106% from 38.7 to 79.8 cents per share from
30 June 2000 mainly due to a capital injection of R110 million by Luna
Corporation, SAIL's holding company at 185 cents per share. SAIL's cash flow
from operating activities has grown by 95% over the same period and this
positive trend is expected to continue.
SAIL's Sports Brand investments are performing well in the face of a
global slump in consumer and advertising spend, the effect of which was
overcome by strong management performance. The Blue Bulls, a subsidiary, has
performed below budget for the first six months of the year. We are pleased
with the actions taken by the Blue Bulls management, which should result in
a closing of the budget deficit and which has already seen an improvement in
team performance as witnessed by the Blue Bulls 2001 Vodacom Cup win. Pro
Range, SAIL's golf practice centres, concluded an 18-month period of rapid
expansion and is well positioned to contribute to the group's future
earnings growth.
In line with SAIL's strategy and vision, considerable effort and funds
have been expended on restructuring the group, strengthening management
depth, and positioning the business for international expansion. This has
already resulted in an increase in the "income from Associates and Joint
Ventures" line in the income statement. The cost of this strategy is
reflected in a decrease in the "profit from operations" line, which has also
been impacted by the Blue Bulls performance.
In line with the trading patterns reflected in past years, SAIL
anticipates increased earnings in the second half of the year.
Prospects
SAIL aims to support its continued earnings growth and enhanced cash flow
from operations, by further strengthening management and unlocking the value
of its intellectual property, embodied in its investments.
SAIL's cautious pursuit of international expansion is showing significant
progress. Our experience and leadership in Sports Brand partnerships, and
philosophy of making money with our Sports Brands' partners and not from
them, has been well received.
The potential for Sports Brands to transact directly with its electronic
consumer base over the medium to long term looks promising in light of the
technological advancement in broadband and mobile telephony. SAIL will
continue to build relationships with media, telephony and technology
partners for purposes of developing alternative direct delivery channels for
its Sports Brands investments.
We are looking forward to a challenging, but exciting second half of the
financial year 2001.
For and on behalf of the Board
KSE TROSKIE
Company Secretary
Cape Town
07 September 2001
Registered Office:
28th Floor, No 1 Thibault Square, Long Street, Cape Town 8001
PO Box 4755, Cape Town, 8000
Transfer Secretaries:
Mercantile Registrars Limited
11 Diagonal Street, Johannesburg, 2001
www.sail.co.za
