| Tue 6 Nov 2001, 0:00 | | Tradek: Unaudited Interim Results |
|
TRADEK HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1964/001296/06)
Share code TDK ISIN: ZAE000018891
("Tradek" or "the company")
Unaudited interim results for the six months ended 30 September 2001
* Profit of R101 000
* Revenue up 21% to R16,7 million
* Successful launch of full banking product
Consolidated income statement
Unaudited Audited
Six months to Year to
30 September 31 March
2001 2000 2001
R'000 R'000 R'000
Revenue 16 725 13 223 28 322
Operating profit/(loss) before
finance cost and depreciation 276 (1 762) (4 801)
Depreciation (758) (330) (1 273)
Operating loss before finance costs (482) (2 092) (6 074)
Finance costs (327) (879) (1 754)
Operating loss after finance costs (809) (2 971) (7 828)
Interest and dividend income 910 629 1 588
Profit/(loss) before taxation 101 (2 342) (6 240)
Taxation - - 1 266
Profit/(loss) after taxation 101 (2 342) (4 974)
Weighted average number of
fully diluted shares in issue ('000) 184 772 115 483 132 806
Fully diluted headline profit/(loss)
per share (cents) 0,05* (2,03) (3,75)
*Headline earnings equal earnings.
Note: The principle accounting policies, as set out in the Group's annual
report for the year ended 31 March 2001, has been consistently applied
throughout the six-months period under review.
Consolidated balance sheet
Unaudited Audited
Six months to Year to
30 September 31 March
2001 2000 2001
R'000 R'000 R'000
Assets
Non-current assets 7 083 6 484 6 500
Fixed assets 2 170 2 689 2 006
Investments 2 215 1 931 2 019
Share Trust loan 1 027 1 459 804
Deferred taxation 1 671 405 1 671
Current assets 88 295 177 812 125 683
Amounts receivable relating
to stockbroking activities 61 327 169 524 114 050
Taxation 14 - 53
Other receivables 4 044 2 940 1 170
Cash and cash equivalents 22 910 5 348 10 410
Total assets 95 378 184 296 132 183
Equity and liabilities
Equity and reserves 29 877 15 839 29 776
Long-term liabilities - 99 -
Current liabilities 65 501 168 358 102 407
Amounts payable relating
to stockbroking activities 49 048 161 846 99 222
Other payables 1 138 6 512 1 726
Bank overdraft 15 315 - 1 459
Total equity and liabilities 95 378 184 296 132 183
Abridged consolidated cash flow statement
Unaudited Audited
Six months to Year to
30 September 31 March
2001 2000 2001
R'000 R'000 R'000
Cash flow from
operating activities 14 (78) (12 772)
Cash flow from
investing activities (1 370) (869) (1 796)
Cash flow from
financing activities - - 17 224
Net increase/(decrease) in
cash and cash equivalents (1 356) (947) 2 656
Cash and cash equivalents at
beginning of year 8 951 6 295 6 295
Cash and cash equivalents at
end of year 7 595 5 348 8 951
Consolidated statement of changes in shareholders equity
Share Share Retained
R'000 Capital Premium Income Total
Balance at 1 April 2000 1 155 4 863 12 163 18 181
Issue of shares 693 16 630 - 17 323
Share issue expenses written-off - (754) - (754)
Net loss for year - - (4 974) (4 974)
Balance at 1 April 2001 1 848 20 739 7 189 29 776
Net profit for the six months - - 101 101
Balance at 30 September 2001 1 848 20 739 7 290 29 877
Tradek is pleased to report a profit for the six months ended September
2001. In a difficult environment, Tradek continues to prove its model and
maintain its position as one of South Africa's most innovative financial
services companies. Tradek also maintains its status as the market leader in
online trading and the use of technology to service clients.
Review of trading results:
Despite remaining largely dependent on JSE trading, which has been
lacklustre over the period, Tradek has grown its revenue by 21% to R16,7
million. Tradek's ongoing commitment to cost containment has helped to
ensure its return to profitability with a net income of R101 000 for the
period under review.
Tradek is finding that in a volatile market, the number of trades executed
has decreased slightly but that revenue is up on account of larger trades.
The business is complemented by an increase in revenue generated by offshore
investment and banking services.
Accomplishments:
Tradek is now a full financial services provider, evident in the successful
rollout of the banking products. These include a credit card, a high
interest call account and an equity-based loan facility. These products
complement Tradek's trading services and are all linked to an innovative
loyalty scheme that helps clients create wealth.
Tradek continues with the consolidation of the business as a result of
STRATE. Staff members are being trained and redeployed where necessary, in
many cases to the new client care centre which acts as a central area for
all client queries regarding Tradek accounts.
Tradek also continues with a wide range of product and service development.
Spread trading services are being offered in conjunction with Global Trader
247 and a new division, Tradek Corporate Services, offers listed companies a
unique cost-saving service through the "cleaning" and analysing of their
share registers.
Prospects
Tradek has made good progress in diversifying the revenue base and continues
to look at optimising these opportunities. Simultaneously the company is
constantly working to manage and contain costs.
With the world entering a period of economic downturn and global
instability, there is a good deal of market uncertainty. Accordingly, poor
market conditions could affect trading revenues.
Tradek believes that the stock broking industry is entering a period of
consolidation. We plan to take an active role in this consolidation phase
and are actively looking at opportunities in this market.
Paul Theron
Chief Executive Officer
6 November 2001
Directors:
John Balderson, Kevin Davie*, Jan Joubert*, John Martindale*, Marius Meyer*,
Leonard Bruhns*, Paul Theron (CEO)
*Non-executive
www.tradek.com
5th Floor, Stock Exchange Building,
17 Diagonal Street, Johannesburg
Telephone: (011) 370-1900
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