| Wed 31 Oct 2001, 0:00 | | Oakfields - Audited Results For The Year Ended 31 |
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cautionary announcement
OAKFIELDS THOROUGHBREDS AND LEISURE INDUSTRIES LIMITED
(Registration number 1983/013789/06
Share Code: OKF Isin Code: zae00005138
("Oakfields")
Audited Results for the year ended 31 July 2001 and further cautionary
announcement
All figures in R000's
Group Income Statement
Year ended Year ended
31 July 31 July
2001 2000
Revenue 2,241 1,999
Operating loss 1,207 1,359
Depreciation 1,574 1,331
Net interest paid 956 1,025
Attributable loss 3,737 3,715
Weighted average number
of shares in issue (000's) 110,000 110,000
Headline loss per share (cents) 2.72 3.31
Loss per share (cents) 3.40 3.38
Group Balance Sheet
31 July 31 July
2001 2000
Assets
Non-current assets 15,136 17,652
Property, plant and equipment 15,126 17,642
Investments 10 10
Current assets 1,078 2,507
Operating assets 1,041 2,490
Cash and cash equivalents 37 17
Total assets 16,214 20,159
Equity and Liabilities
Capital and reserves 3,605 7,342
Share capital and premium 25,955 25,955
Non-distributable reserves 10,083 10,083
Accumulated loss (32,433) (28,696)
Non-current liabilities 11,707 11,657
Interest-bearing borrowings 5,422 5,563
Non-interest-bearing borrowings 6,285 6,094
Current liabilities 902 1,160
Operating liabilities 574 786
Interest-bearing liabilities 328 374
Total Equity and Liabilities 16,214 20,159
Net asset value per share (cents) 3.28 6.67
Statement of Changes in Equity
Year ended Year ended
31 July 31 July
2001 2000
Balance at beginning of year 7,342 11,065
Share issue expenses written-off - (10)
Net loss for the year (3,737) (3,713)
Balance at end of year 3,605 7,342
Group Cash Flow Statement
Year ended Year ended
31 July 31 July
2001 2000
Cash flow from operating activities 772 1,459
Finance costs (956) (1,025)
(184) 434
Cash flow from investing activities 200 (1,550)
Property, plant and equipment (1,915) (2,619)
acquired
Proceeds from disposal of property,
plant and equipment 2,115 1,069
Cash flow from financing activities (4) 1,583
Capital redeemed - (10)
Loans (repaid)/raised (4) 1,593
Net increase in cash and
cash equivalents 12 467
Cash and cash equivalents
at beginning of year (74) (541)
Cash and cash equivalents
at end of year (62) (74)
Results
Although group turnover increased by 12,1% during the current financial
year, the group still incurred a loss of R3,737 million, comparable to the
previous year's loss. This increase in turnover of R242,000 was more than
off-set by the unfortunate loss on the death of the stallion, Formaz (USA),
amounting to R876,000 and increased depreciation of bloodstock of R243,000.
The difference between the loss and headline loss per share is the loss on
disposals of fixed assets of R742,000 (2000 - R74,000).
Commentary
The local thoroughbred horse industry remains subdued, making it difficult
to produce anything more than breakeven results within the racing sector due
to the percentage increase in stakes offered falling well below the increase
in training and other related costs.
For the second consecutive year, the group won the award for the top
racehorse owner in the Eastern Cape, and this underlines the international
quality of the group's breeding stock based at its stud farm in KwaZulu-
Natal.
The export ban on South African thoroughbred horses, imposed in May 1999,
remained in force throughout the financial year, however, the Government
announced the formation of an export trade council to assist with the
marketing of South African thoroughbreds overseas. The export ban has,
subsequent to the year end, been lifted, and exports are expected to
commence within the next six months.
The results have been prepared on a consistent basis to previous years and
in accordance with Statements of Generally Accepted Accounting Practice.
Further cautionary announcement
Further to the cautionary announcements dated 26 June 2001, 14 August 2001
and 27 September 2001, shareholders are advised to continue exercising
caution when dealing in the company's securities. Negotiations are at an
advanced stage, and a full announcement is expected to be made in the near
future.
Prospects
With the thoroughbred export market having reopened to South Africa,
Oakfields is working very closely with the export trade council to
facilitate and maximise the export opportunities for South African breeders.
As the US dollar cost of breeding in South Africa is lower than the other
major thoroughbred breeders worldwide, the export market, once established,
is expected to be most profitable for the group.
Board appointments
The company is pleased to announce that Messrs SH Pugh and BL Rawson were
appointed directors during the year. Messrs G Guan, FF Jin and WZ Xing
resigned their directorships on 20 June 2001.
Dividend
No dividend has been declared nor is one recommended in respect of the
financial year under review.
For and on behalf of the Board
G Schauder
Secretary
31 October 2001
Directors
E Cambouris (Chairman/CEO), G Schauder CA(SA) (Financial), SH
Pugh*(Australian), BL Rawson*(British)
* Non-executive
Registered office Transfer secretaries
74 Third Road Mercantile Registrars Limited
Hyde Park 11 Diagonal Street
Sandton 2196 Johannesburg 2001
Sponsor
Brait
