| Tue 2 Oct 2001, 0:00 | | Viking Investments & Asset Management Limited - In |
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for the six months ended 30 June 2001
Unaudited Unaudited
six months six months
ended ended
30 Jun 2001 30 Jun 2000
R000s R000s
Revenue 7,376 13,926
Operating profit before
depreciation and interest 2,56010,064
Depreciation (121) (278)
Net interest received 5 397
Profit before taxation 2,444 10,183
Taxation 733 3,059
Profit after taxation 1,711 7,124
Earnings and headline
earnings per share (cents) 1.71 7.12
Number of shares in issue 100 000 000 100 000 000
Balance Sheet
at 30 June 2001
Unaudited Unaudited
30 Jun 2001 30 Jun 2000
R000s R000s
ASSETS
Non-current assets
Property and equipment 373 549
Current assets
Available for sale - financial
assets 30,913 18,869
Accounts receivable and
pre-payments 587 1,109
Cash resources (1,203) 5,520
30,297 25,498
Total assets 30,670 26,047
EQUITY AND LIABILITIES
Capital and reserves
Ordinary share capital 2,000 2,000
Distributable reserves 22,860 19,781
24,860 21,781
Non-current liabilities
Deferred taxation 4,170 4,005
Current liabilities
Accounts and other payables 1,733 214
Taxation (93) 47
1,640 261
Total equity and liabilities 30,670 26,047
Cash Flow Statement
for the six months ended 30 June 2001
Unaudited Unaudited
six months six months
ended ended
30 Jun 2001 30 Jun 2000
R000s R000s
Cash flows from operating activities (3,123) 4,468
Cash flows from investing activities 1,210 (1,340)
Cash flows from financing activities 0 0
Net (decrease) / increase in cash
and cash equivalents (1,913) 3,128
Opening cash and cash equivalents 710 2,392
Closing cash and cash equivalents (1,203) 5,520
Statement of changes in equity
for the six months ended 30 June 2001
Share Accumulated
Capital Profit Total
R000s R000s R000s
Balance at 1 January 2001 2,000 21,149 23,149
Profit for the period 1,711 1,711
Balance at 30 June 2001 2,000 22,860 24,860
for the six months ended 30 June 2000
Share Accumulated Total
Capital Profit
R000s R000s R000s
Balance at 1 January 2000 2,000 12,657 14,657
Profit for the period 7,124 7,124
Balance at 30 June 2000 2,000 19,781 21,781
Viking Interim Report for the six months ended 30 June 2001
HIGHLIGHTS
Change in focus of business to obtaining dollar denominated annuity income
Significant strategic investment in the United States after June 01
Revenue of R7.3m
Profit after tax R1,7m
FINANCIAL PERFORMANCE
Digital Current's valuation improved substantially over the period and
Viking's share of this unrealised valuation has accounted primarily for the
income for the period.
REVIEW OF OPERATIONS
Introduction
In line with Viking's desire to obtain offshore income, the strategic
investment activities of Viking have changed and this has culminated in one
joint venture and two prospective ventures in the USA. Other opportunities
have been identified and are being reviewed in the United Kingdom and
Australia.
Current incubation activities in South Africa are being managed and nurtured
for future asset enhancement and realisation. No significant new local
investments have occurred.
Listed portfolio
The company is pleased to report that the listed portfolios remained in
positive territory despite the volatility experienced in international and
local markets. All listed assets under management are to be transferred to
a new company. The portfolio will continue to be run by Charles Graham with
L Coogan being a director of the new company.
Unlisted portfolios
The Shift Interactive Communication shares were sold for cash in two
tranches. A small tranche was sold to Shift in line with its share buyback
scheme. The remaining portion was sold to Archway Venture Partners, and
cash received, after the 30th June 2001. Other investments are, where
appropriate, in the process of being sold to provide resources for the
opportunities overseas.
PROSPECTS AND EVENTS SUBSEQUENT TO THE END OF JUNE 2001
Viking announced today that it has signed a memorandum of understanding with
the Westbury Metals Group, Inc. in the USA. Westbury is in the business of
collecting and processing catalytic converters and extracting platinum,
palladium and rhodium. The essence of the agreement, subject to obtaining
financing and full regulatory approval, is that Viking will be spinning off
one of Westbury's divisions into a company in which Viking will own a 75%
stake.
Vikings objective is that of having a South African listed company with
interests in dollar denominated investments and a positive dollar annuity
based cash flow. The local business in the process of being streamlined to
reduce costs to the minimum. This should have a material impact on the 2002
results.
In order to fund overseas expansion, the shareholders gave the directors
general authority at the AGM of the 31st August 2001 to issue up to 15% of
the listed shares at up to a 10% discount. It is the intention of the
directors to issue the full 15%. The directors have approved a general
issue of shares and once the allotment is fully subscribed a further press
release will be made giving the impact on net asset value and earnings.
Full details of this joint venture are contained in a separate announcement
published elsewhere in this newspaper.
2nd October 2001
