| Mon 5 Nov 2001, 0:00 | | Zeltis Holdings Limited - Preliminary Financial Re |
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Abridged Income Statement
12 Months 6 Months to 12 Months
to 31-Dec-00 to
30-Jun-01 Unaudited 30-Jun-00
Unaudited R000's Audited
R'000s R'000s
Gross revenue 12,813 5,299 4,223
Operating costs (14,539) (7,460) (33,676)
Write down of investments (16,034) (203) (49,914)
Bad debts provision (5,379) 0 (15,279)
Operating (loss)/profit on
ordinary activities before
investment income (23,139) (2,364) (94,646)
Investment Income 1,957 473 3,578
(Loss)/profit before finance
costs (21,182) (1,891) (91,068)
Finance costs (3,150) (1,340) (1,284)
Operating(Loss)/profit on
ordinary actitivites before
taxation (24,332) (3,231) (92,352)
Taxation 0 0 3,048
(Loss)/profit before share of
associates income (24,332) (3,231) (89,304)
Share of retained loss of
associates 0 0 (336)
Net (loss)/profit of the group (24,332) (3,231) (89,640)
Outside shareholders interest 0 0 (174)
Net (loss)/profit for the
period (24,332) (3,231) (89,814)
Statistics:
Shares in issue (weighted
average) 148,698,692 148,698,692 125,638,583
Net asset value per share
(cents) 4.8 19.0 25.0
Headline (loss)/earnings per
share (cents) (2.3) (2.0) (6.0)
(Loss)/earnings per share
(cents) (16.4) (2.2) (71.5)
Adjusted Headline Earnings:
Net loss per income statement (24,332) (3,231) (89,814)
Profit on sale of investments (1,143) 0 16,028
Investment write downs 16,034 203 66,006
Loans written off 5,379 0 0
Goodwill amortisation 570 110 260
Loss on sale of tangible assets 0 0 41
Headline loss (3,492) (2,918) (7,479)
Abridged Balance Sheet
12 Months 6 Months to 12 Months
to 31-Dec-00 to
30-Jun-01 Unaudited 30-Jun-00
Unaudited R000's Audited
R'000s R'000s
ASSETS
Non-current assets
Tangible assets 2,580 2,126 1,688
Intangible assets 11,398 11,114 11,159
Subsidiaries 0 0 0
Associates 0 6,263 5,048
Investments 15,737 27,495 27,364
29,715 46,998 45,259
Current assets
Inventories 0 0 112
Accounts receivable 16,352 16,372 13,855
Cash and cash equivalents 3 438 406
Total current assets 16,355 16,810 14,373
Total Assets 46,070 63,808 59,632
EQUITY AND LIABILITIES
Share capital and premium 111,230 111,230 111,230
Non-distributable reserves 110 0 110
Distributable reserves (104,289) (83,080) (79,959)
Ordinary shareholders interest 7,051 28,150 31,381
Preference share capital 39 39 39
7,090 28,189 31,420
Non-current liabilities
Long-term liabilities 15,239 17,464 14,063
Deferred tax 0 0 62
Total non-current liablities 15,239 17,464 14,125
Current liabilities
Short-term loans 0 393 74
Accounts payable 19,437 13,802 10,936
Bank overdraft 2,508 2,383 1,416
Current portion of long-term
debt 392 170 253
Taxation 1,405 1,407 1,408
Total curent liabilities 23,742 18,155 14,087
Total capital and reserves and
liabilities 46,070 63,808 59,632
Cash Flow Statement
12 Months 6 Months to 12 Months
to 31-Dec-00 to
30-Jun-01 Unaudited 30-Jun-00
Unaudited R000's Audited
R'000s R'000s
Cash flow from operating
activities (15,889) (1,760) (78,826)
Investment income 1,957 473 3,578
Taxation paid (59) (61) (62)
Finance costs (3,150) (1,340) (1,284)
Cash flow from operating
activities (20,936) (2,688) (76,594)
Cash flow from investing
activities
Intangible assets acquired (239) (45) (10,410)
Disposal / (purchase) of
investments 13,163 (131) 62,595
Change in investment in
associates 5,048 (1,215) 21,072
Shares issued as part of
investment acquisition 0 0 (13,756)
Additions and revaluations of
tangible assets 0 (466) (1,025)
Proceeds on disposal of
tangible assets 438 0 154
18,410 (1,857) 58,630
Cash flow from financing
activities
Change in non-distributable
reserve 110 (110) (110)
Change in net debt 922 3,720 13,294
Net cash flow from financing
activities 1,032 3,610 13,184
Net change in cash and cash
equivalents (1,495) (935) (4,780)
Cash and cash equivalents at
beginning of period (1,010) (1,010) 3,770
Cash and cash equivalents at
end of period (2,505) (1,945) (1,010)
Statement of movements in equity (R'000)
Balance at Loss per the
30 June income Total
2000 statement
Share capital 1,487 0 1,487
Share premium 109,743 0 109,743
Preference share capital 39 0 39
Non-distributable reserves 110 0 110
Distributable reserves (79,959) (24,330) (104,289)
Total 31,420 (24,330) 7,090
NOTES:
The preliminary unaudited results have been prepared in accordance with
South African statements of generally accepted accounting practice and the
accounting policies of the company have been consistently applied.
These results are released so as to provide shareholders with provisional
unaudited income statement, balance sheet and portfolio information for the
year, prior to the release of audited results. The delay in publishing
final audited financial statements is partially a consequence of the company
having embarked on changes in the accounting systems and procedures of the
Denverdraft Agency group in the fourth quarter of the 2000 / 2001 financial
year.
The results have been reviewed by BDO Spencer Steward and are unqualified.
A letter from BDO Spencer Steward is available for inspection at the
registered offices of Zeltis Holdings Limited.
Following discussion with our auditors and in keeping with our previous
approach, the company has written off the major portion of the remaining
doubtful investments in the financial year ended 30th June 2001. A
consequence of that action would be that if the company realised any of
those investments in the portfolio for cash or saleable paper, the proceeds
would constitute a surplus on realisation. We shall comment in detail on
the balance of the portfolio in the annual financial statements.
Commentary
Shareholders are aware that the board of the company was reconstituted half
way through the 1999 / 2000 financial year.
As has been reported previously, during the second half of the 1999 / 2000
financial year and subsequently, the portfolio of investments has been
reviewed and assessed as to whether there was any future potential revenue
flow or tangible asset base within the portfolio. In instances where there
was certainty that that was not going to be the case (true of the majority
of the investments), either the haemorrhage of cash outflow was stemmed by
closing those companies, or negotiated sales of Zeltis' holdings in those
companies back to the original vendors were agreed, and that practice
continued in the financial year ended 30th June 2001.
Of the portfolio of investments in 35 companies, 18 have been either
disposed of or closed; 4 are the subject of current negotiations and / or
discussions, or are transactions which are subject to shareholder approval.
Detail of all the investments and transactions will be included in a
circular to shareholders which is currently being completed in association
with our corporate advisors, The Janus Corporation, and will be released in
due course.
The "turnaround" is well advanced, but the company still has a number of
legal issues to pursue in it's quest to recover monies advanced to third
parties prior to 30th June 1999. Full details will be contained in the
circular to shareholders referred to above.
In general, the first four months of the financial year have reflected
further progress and we are looking forward to the challenges of the next
eight months of the current year in a company which, with the approval of
shareholders will be better structured financially and better positioned to
take advantage of it's future potential.
Further Cautionary
Shareholders are advised that the company is currently trading under a
cautionary in terms of the announcement dated 10 October 2001 and are
therefore advised to continue to exercise caution in the trading of their
shares.
By order of the Board
RN McLeod KG Brink
5 November 2001
Johannesburg
Corporate advisor and sponsor
The Janus Corporation (Pty) Limited
(Registration Number 1999/005755/07)
