| Fri 12 Oct 2001, 0:00 | | Explorer - Interim Results |
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EXPLORER CORPORATION HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1997/010950/06)
Share code: EPL ISIN: ZAE000017489
("Explorer" or "the company")
Interim results for the six months ended 30 June 2001
INCOME STATEMENT
Unaudited Unaudited Audited
for 6 months for 6 months for the
year
ended ended ended
30 June 30 June 31 Dec
2001 2000 2000
R'000 R'000 R'000
Revenue 900 5,912 5,976
Gross profit 873 5,750 4,575
Operating expenses 3,099 3,782 31,824
Profit/(Loss) before finance
costs and depreciation (2,226) 1,968 (27,249)
Finance costs (12) (925) (397)
Depreciation (344) (917) (2,264)
Profit/(Loss) before taxation (2,582) 126 (29,910)
Taxation - - -
Net profit/(loss) for period (2,582) 126 (29,910)
Earnings per share (cents) (2,93) 0,16 (37,23)
Headline earnings per share (cents) (2,93) 0,16 (31,72)
BALANCE SHEET
Unaudited Unaudited Audited
for 6 months for 6 months for the
year
ended ended ended
30 June 30 June 31 Dec
2001 2000 2000
R'000 R'000 R'000
Assets
Property, plant and equipment 940 6,907 1,276
Loans 99 7,216 2,295
Intangibles 6,631 29,223 6,862
Development expenditure 7,268 - 8,040
Current assets 3,748 6,469 2,983
Total assets 18,686 49,815 21,456
Equity and liabilities
Share capital and premium 47,222 46,821 47,222
Accumulated loss (35,118) (2,498) (32,535)
Current liabilities 6,582 5,492 6,769
Total equity and liabilities 18,686 49,815 21,456
CASH FLOW STATEMENT
Unaudited Unaudited Audited
for 6 months for 6 months for the
year
ended ended ended
30 June 30 June 31 Dec
2001 2000 2000
R'000 R'000 R'000
Cash flow from
operating activities 760 496 (18,417)
Cash flow from
investing activities 304 (15,520) (453)
Cash flow from
financing activities 11 (4,505) (1,897)
Net movement in cash and
cash equivalents for period 1,075 (19,529) (20,767)
Cash and cash equivalents
at beginning of period 1,175 21,942 21,942
Cash and cash equivalents
at end of period 2,250 2,413 1,175
STATEMENT OF CHANGES IN EQUITY
Share Share Accumulated
capital premium loss Total
R'000 R'000 R'000 R'000
Balance at 31 December 1999 800 46,021 (2,624) 44,197
Net profit for period - - 126 126
Balance at 30 June 2000 800 46,021 (2,498) 44,323
Net loss for period - - (30,038) (30,038)
Issue of share capital 80 320 - 400
Share issue expense - 1 - 1
Balance at 31 December 2000 880 46,342 (32,536) 14,688
Net loss for period - - (2,582) (2,582)
Balance at 30 June 2001 880 46,342 (35,118) 12,106
COMMENTS
BASIS OF ACCOUNTING
These consolidated, abridged interim financial statements were drawn up in
compliance with South African Statements of Generally Accepted Accounting
Practice and the company has complied with the requirements of the Companies
Act.
ACCOUNTING POLICIES
The accounting policies as set out in the 2000 Annual Report have been
consistently applied in producing these results.
Trademarks and goodwill were amortised for the first time during 2000.
Comparatives have been restated where a change in accounting policies has
taken place.
GENERAL
During the six-month period ended 30 June 2001, the directors have been in
the process of restructuring the company in order to re-align the focus on
core business and strategy going forward.
The directors have been involved in negotiations as indicated by the
cautionary announcements published during this period.
Shareholders are also referred to the Prospects comments.
FINANCIAL REVIEW
The company has accrued for income due from the credit card debtors' book.
Expenses have been kept to a minimum and the company has operated with the
minimum staff levels required. Directors anticipate an increase in staff
levels following the implementation of successful negotiations.
MATERIAL VARIANCES
* No new credit cards were issued during the current year as a result of
funding restrictions imposed by the funding bank. This had a negative effect
on both Revenue and related Gross Profit.
* Shareholders are referred to the capital restructuring of the company
which inter alia included settling the company's overdraft. As a result
finance costs have been substantially reduced.
* Shareholders were advised of the disposal of a substantial portion of the
company's assets in the Annual Financial Statements for the year ended 31
December 2000.
* As part of the restructuring of Explorer, the Directors approved the write
off of the loan due by the Share Incentive Trust.
ANNUAL GENERAL MEETING
The Annual General Meeting of the company took place during the six months
under review, at which all resolutions were approved and passed.
PROSPECTS
Shareholders are referred to the cautionary announcement published on 5
October 2001 and related previous announcements. Such announcements relate
to discussions with parties who will contribute business volume, funding and
infrastructure to Explorer. Shareholders will be advised of developments as
soon as the relevant agreements are concluded.
DIVIDENDS
No dividend has been declared.
For and on behalf of the Board
N Justin Chinyanta
Chairman
Registered Office:
C/o Loita Capital Partners SA Limited
2nd Floor, East Wing
11 Alice Lane
Sandton
2146
www.explorercorp.com
Explorer Direct: 0860 300 600
Transfer Secretaries:
Mercantile Registrars Limited
7th Floor, 11 Diagonal Street
Johannesburg
2001
Directors:
N J Chinyanta, Y Bazian, C Clarke,
C van Nieuwkerk, A Stanger*
*Non-Executive
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