| Thu 1 Nov 2001, 0:00 | | Monex Limited - Group Results For The Six Months E |
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A MEMBER OF THE MONEX GROUP OF COMPANIES
Registration number 1968/010805/06 Share Code: MNX ISIN: ZAE000025748
Group results for the six months ended 30 September 2001
Summarised Consolidated Income Statement
for the six months ended 30 September 2001
Six months Six months Audited
ended ended year
ended
30 Sept 30 Sept 31 March
2001 2000 2001
R'000 R'000 R'000
Turnover 74 720 74 591 152 474
- Continuing operations 74 720 74 591 148 949
- Discontinued operations - - 3 525
Operating (loss)/profit (11 939) 17 937 38 785
Financing costs (19 252) (17 605) (36 545)
(Loss)/profit before share of
(loss)/earnings of associates (31 191) 332 2 240
- Continuing operations (31 191) 332 2 061
- Discontinued operations - - 179
(Losses)/earnings of associates (2 311) - 6 738
(Loss)/profit before abnormal items (33 502) 332 8 978
Abnormal items (86 348) (153 756) (273 245)
Loss after abnormal items and
before taxation (119 850) (153 424) (264 267)
Taxation 3 686 923 12 757
Loss for the period (116 164) (152 501) (251 510)
Weighted average number of shares
in issue (000's) 144 616 114 132 111 544
Loss per ordinary share (cents) (80,3) (133,6) (225,5)
Headline (loss)/earnings per ordinary
share (cents) (20,6) 1,1 19,5
Statement of Changes in Equity
Six months Six months Audited
ended ended year
ended
30 Sept 30 Sept 31 March
2001 2000 2001
R'000 R'000 R'000
Share capital at start of period 1 090 261 361 261 361
Issue of 348 660 618 shares of 1 cent
on 14 September 2001 3 486 - -
Conversion of 114 131 643 ordinary
shares of 229 cents to ordinary shares
of 1 cent on 1 August 2000 - (260 220) (260 220)
Reduction in share capital by repurchase
of 5 175 200 ordinary shares of 1 cent
from the Monex Share Incentive Trust - (51) (51)
4 576 1 090 1 090
Share premium and reserves at start
of period 486 771 241 548 241 548
Premium on 348 680 618 shares issued
on 14 September 2001 223 143 - -
Share issue expenses written off (6 630) - -
Increase in premium due to conversion
of ordinary shares from 229 cents to
1 cent - 260 220 260 220
Decrease in premium due to repurchase
of 5 175 200 shares from the Monex
Share Incentive Trust - (14 997) (14 997)
703 284 486 771 486 771
(Accumulated losses)/retained earnings
at the start of period (182 764) 68 746 68 746
Net loss for the period (116 164) (152 501) (251 510)
Accumulated losses at the end of period (298 928) (83 755) (182 764)
Total share capital and reserves 408 932 404 106 305 097
Summarised Consolidated Balance Sheet
as at 30 September 2001
Audited
As at As at as at
30 Sept 30 Sept 31 March
2001 2000 2001
R'000 R'000 R'000
ASSETS
Non-current assets 286 648 507 487 395 182
Property, plant and equipment 78 052 220 991 141 615
Investment in associates 206 934 280 000 250 938
Loans, investments and intangibles 1 662 6 496 2 629
Current assets 257 205 235 715 236 739
Inventories 188 628 203 769 219 753
Receivables and pre-payments 46 072 30 638 16 048
Cash and cash equivalents 22 505 1 308 938
Total assets 543 853 743 202 631 921
EQUITY AND LIABILITIES
Share capital and reserves 408 932 404 106 305 097
Non-current liabilities 85 005 175 196 169 432
Deferred taxation 6 310 21 830 9 996
Long-term liabilities 78 695 153 366 159 436
Current liabilities 49 916 163 900 157 392
Trade and other payables 21 562 29 701 24 717
Short-term borrowings 5 930 93 750 94 360
Provisions 3 040 3 040 3 040
Current portion of interest-bearing
Borrowings 19 384 37 409 35 275
Total equity and liabilities 543 853 743 202 631 921
Shares in issue (000's) 457 617 108 956 108 956
Net asset value per share (cents) 89,4 371 280
Abridged Summarised Cash Flow Statement
for the six months ended 30 September 2001
Six months Six months Audited
ended ended year
ended
30 Sept 30 Sept 31 March
2001 2000 2001
R'000 R'000 R'000
Net cash (outflow)/inflow from operating
Activities (17 205) 11 399 (69 673)
Net cash inflow from investing
activities 13 830 10 713 2 775
Net cash inflow/(outflow) from financing
Activities 113 372 (49 571) 38 459
Net increase/(decrease) in cash and cash
Equivalents 109 997 (27 459) (28 439)
Cash and cash equivalents at beginning
of period (93 422) (64 983) (64 983)
Cash and cash equivalents at end
of period 16 575 (92 442) (93 422)
COMMENTS
In the recent rights offer documentation and subsequent profit warning, it
was indicated that the Monex Group had experienced a difficult six months to
30 September 2001.
Market conditions for land sales have been subdued and the abnormally high
rainfall experienced in the winter months has had a negative affect on
attendances at Ratanga Junction. These factors, along with a loss of R9m
which was incurred from the sale of a 11ha site in Tyger Falls, contributed
to the operating loss of R11,9m.
Losses from the leisure division, higher financing costs and a number of non-
recurring write-offs have resulted in a loss, before abnormal items, of
R33,5m for the period. The headline loss per share was 20,6c against
headline earnings of 1,1c a share for the corresponding period in the
previous year.
Given the current performance and market conditions, the Board of Directors
has considered it appropriate to write down the value of the Group's
investments. The investment in Ratanga Junction has been written down by
R41m to R50m, the investment in Canal Walk by R42m to R207m and the
investment in a Pinetown property by R2,5m to R4,2m.
The write-downs resulted in an abnormal loss of R86,4m, bringing the total
loss for the period after taxation to R116,2m, equivalent to 80,3c per
share.
The Group's rights issue was completed successfully in mid-September. An
amount of R220m, net of costs, was raised and has been used to reduce Group
debt. The benefit of the reduction in financing costs will accrue in the
second half of the year. The disposal of the Tyger Falls site will realise
R22,5m which will be used to reduce debt.
The rights issue has resulted in the number of shares in issue increasing to
457 617 000 from 108 956 000. The net asset value per share has decreased to
89,4c from 280c at 31 March 2001.
OPERATIONAL REVIEW
Leisure
As a result of the abnormally wet winter and short Easter holiday period,
turnover for the six months was down at R11,6million (2000: R19,5m) and the
loss, before depreciation of R3,6m and interest and before loan write-offs
of R2,2m, was R7,1m compared to R4,4m for the corresponding period in the
previous year. The park continues to operate on a reducing overhead base and
further restructuring measures are being implemented.
As part of the park's strategy to keep the experience fresh for guests and
to encourage repeat business, a popular new ride, the Sling Shot, was
introduced in late June.
In early September Ratanga Junction introduced a "pay per ride" option
enabling guests to gain free entry to the park and then pay individually for
each ride they wish to use. Early indications are that this is proving
successful with visitor numbers having increased considerably. Although the
per capita spend has come down as expected, the revenue budget for September
was exceeded.
Property
Century City is now firmly established as a premier office node in the
Western Cape. Due to its central location, high standards of security and
infrastructure and its easy access off the N1, it continues to attract blue-
chip companies. Land sales at Century City, the Group's flagship
development, totalled R19,2m for the six months to end September against
R38,4m for the corresponding period the previous year.
Canal Walk
Monex has an effective 33,48 percent shareholding in Canal Walk. In spite of
the difficult retail environment into which it was launched on 26 October
2000, the shopping centre has performed satisfactorily. In its first year it
had 15,7million visitors and a total annual tenant turnover of more than
R1billion.
The centre opened with 353 signed leases for a total of 104 110 square
metres. As at 30 September 2001 there were 400 leases in place for a total
of 110 283 square metres, giving a net gain of 47 tenants and more than 6
000 square metres.
Canal Walk shopping centre has not been expected to contribute materially to
the Group's results in the current year, but is expected to deliver a
positive contribution in the medium term.
Changes to the Board of Directors
The Board of Directors has announced the appointment of Chris Ball as non-
executive chairman of the Group, effective from 15 October 2001, and the
resignations of Messrs Mike Rose-Innes as chairman and John McCance-Price as
a non-executive director. Martin Wragge resigned as Managing Director on 17
September 2001. The Board would like to take the opportunity of thanking
each of them for their valuable contribution over the years.
The new Board of Monex consists of Chris Ball (non-executive chairman), Paul
Leaf-Wright, Clive van Horen (non-executives) and Chris Harvie, Acting
Managing Director and Financial Director.
Signed on behalf of the Board
CJ Ball (Chairman) CJ Harvie (Acting Managing Director)
Cape Town
1 November 2001
Registered Office Transfer Secretaries
No. 1 Waterford Place Computer Share Services Limited
Century City Edura House, 41 Fox Street
Milnerton 7441 Johannesburg 2000
Directors: CJ Ball, CJ Harvie, PS Leaf-Wright, CR van Horen
