| Thu 8 Nov 2001, 0:00 | | Barnard Jacobs Mellet Holdings - Unaudited Results |
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BARNARD JACOBS MELLET HOLDINGS
Unaudited results for the
six months ended 30 September 2001
Barnard Jacobs Mellet Holdings (Incorporated in the Republic of South Africa
- Registration number 1995/004798/06) ("BJMH" or "the Group")
- Net asset value 16% to 350 cps
- Headline earnings 35%
- Basic earnings 183%
- Interim dividend per share of 5.5 cents
CONSOLIDATED INCOME STATEMENT
for the period ended 30 September 2001
Six months Six months Year
ended ended ended
30 Sept 30 Sept 31 March
Change 2001 2000 2001
R'000 % (Unaudited) (Unaudited) (Audited)
Gross revenue 17.0 142 777 122 017 253 550
Operating expenses (111 679) (83 120) (184,342)
Abnormal settlement costs - (29 810) (29 810)
Operating income before
finance costs 242.2 31 098 9 087 39 398
Finance costs 14.6 (14 317) (12 488) (31 018)
Operating income before
income from investments 16 781 (3 401) 8 380
Investment income (83.8) 1 030 6 367 18 147
Income before taxation 500.5 17 811 2 966 26 527
Taxation (349) 3 163 2 007
Income attributable to
shareholders 184.9 17 462 6 129 28 534
Weighted average number
of shares in issue (`000) 106 085 105 346 105 461
Headline earnings per
share (cents) (35.4) 16.72 25.89 47.37
Fully diluted headline
earnings per share (cents)(32.6) 16.24 24.10 44.04
Basic earnings per share
(cents) 182.8 16.46 5.82 27.06
Fully diluted earnings
per share (cents) 191.8 15.99 5.48 25.21
Dividend per share
(cents) 83.3 5.5 3 8
Net asset value 16.3 350 301 319
RECONCILIATION OF HEADLINE EARNINGS PER SHARE
for the six months ended 30 September 2001
Six months Six months Year
ended ended ended
30 Sept 30 Sept 31 March
2001 2000 2001
R'000 (Unaudited) (Unaudited) (Audited)
Fully diluted headline earnings 18 477 27 375 50 112
Interest on convertible
debentures after tax (735) (99) (150)
Headline earnings 17 742 27 276 49 962
Abnormal settlement costs
after tax (20 867) (20 867)
Goodwill amortisation (280) (280) (561)
Basic earnings 17 462 6 129 28 534
CONSOLIDATED BALANCE SHEET
as at 30 September 2001
Six months Six months Year
ended ended ended
30 Sept 30 Sept 31 March
2001 2000 2001
R'000 (Unaudited) (Unaudited) (Audited)
Assets
Non-current assets
Fixed assets 7 145 7 574 7 418
Long-term investments 67 385 138 073 118 903
Goodwill 1 126 1 689 1 408
Trading investments 12 500 15 464 12 500
Deferred taxation 11 161 6 196 10 130
99 317 168 996 150 359
Current assets 1 992 477 1 800 049 1 457 933
2 091 794 1 969 045 1 608 292
Equity and reserves
Capital and reserves
Ordinary share capital 1 061 1 054 1 061
Ordinary share premium 160 323 160 501 160 265
Equity portion of compulsory
convertible debentures 25 071 25 071 25 071
Non-distributable reserves 42 214 17 987 27 578
Retained earnings 142 443 112 119 125 004
371 112 316 732 338 979
Non-current liabilities 153 509 154 795 154 206
Current liabilities 1 567 173 1 497 518 1 115 107
2 091 794 1 969 045 1 608 292
GROUP STATEMENT OF CHANGES IN EQUITY
as at 30 September 2001
Equity
portion of
Ordinary Ordinary compulsory
share share convertible
capital premium debenture
Balance at 1 April 2000 1 052 159 834 25 071
Foreign currency translation
reserve
Net profit for the year
Issue of ordinary shares 9 431
Transfer to conversion of
convertible debenture reserve
Dividends paid
Balance at 1 April 2001 1 061 160 265 25 071
Foreign currency translation
reserve
Net profit for the year
Issue of ordinary shares 58
Dividends paid
Balance at 30 September 2001 1 061 160 323 25 071
Non-
distributable Retained
reserves income Total
Balance at 1 April 2000 11 710 106 898 304 565
Foreign currency translation
reserve 13 983 13 983
Net profit for the year 28 534 28 534
Issue of ordinary shares 440
Transfer to conversion of
convertible debenture reserve 1 885 (1 885)
Dividends paid (8 543) (8 543)
Balance at 1 April 2001 27 578 125 004 338 979
Foreign currency translation
reserve 14 636 14 636
Net profit for the year 17 462 17 462
Issue of ordinary shares 58
Dividends paid (23) (23)
Balance at 30 September 2001 42 214 142 443 371 112
CONSOLIDATED CASH FLOW STATEMENT
for the period ended 30 September 2001
Six months Six months Year
ended ended ended
30 Sept 30 Sept 31 March
2001 2000 2001
R'000 (Unaudited) (Unaudited) (Audited)
Cash flows from operating
activities 64 231 (235 223) (255 634)
Cash flows from investing
activities 48 640 (79 145) (64 229)
Cash effects of financing
activities (638) 61 333 61 854
Net (decrease)/increase in
cash and cash equivalents 112 233 (253 035) (258 009)
Cash and cash equivalents
at beginning of year 333 378 591 387 591 387
Cash and cash equivalents at
end of year 445 611 338 352 333 378
SEGMENTAL ANALYSIS (R'000)
September 2001
Primary segement South Africa International Total
Revenue 121 371 21 406 142 777
Assets 1 789 242 302 552 2 091 794
Liabilities 1 474 297 246 385 1 720 682
September 2000
Primary segement South Africa International Total
Revenue 93 147 28 870 122 017
Assets 1 623 416 345 629 1 969 045
Liabilities 1 469 837 182 476 1 652 313
REVIEW OF RESULTS
The 17% rise in gross revenue came largely from the structured finance side
of the business, though increases also came from the bond division,
corporate finance, portfolio management and settlement fee income. Expenses
rose by 35% with the major component coming from the cost of manpower,
particularly additional employees. Transaction and settlement costs, which
had been showing high cost increases, have stabilized and we expect to see a
similar pattern develop with the cost of manpower over the next six to
twelve months. Without an increase in turnover, the rationalization within
the South African broking industry is expected to continue.
Our balance sheet remains strong with the net asset value of 350 cents per
share, which is 16% above the 301 cents per share reported for the
comparable period last year.
NEW DEVELOPMENTS
BJMH has acquired a 49% interest in Mazwai & Co Securities (Pty) Limited, a
new black stockbroking company headed by Andile Mazwai who worked for our
Securities subsidiary for the past four years. We are confident that this
new business will make significant inroads in the South African securities
market.
On Friday, 16 November 2001, BJMH is seeking authority from shareholders to
undertake a specific repurchase of 7500000 BJMH shares. These shares are
currently held by the PIC in terms of the Masimo Debenture Scheme put in
place at the time of the BJMH listing in February 1998. The Masimo scheme
was extended for a year to March 2002, but as part of the agreement for
this, the PIC required protection with respect to the price of the BJMH
shares. BJMH agreed to provide a purchase undertaking at R2.60/share and it
is in the eventuality of this PUT being exercised that BJMH is approaching
its shareholders.
DIRECTORATE
Merwen Mellet has relinquished his executive role in the group, but will
continue in a non-executive capacity.
PROSPECTS
The marginality of the business at present means earnings are likely to be
volatile. If there is not an increase in either turnover in the South
African equity market or our market share of turnover, we are unlikely to
show any significant improvement in earnings over the next six months. Our
costs, however, should start to stabilize and with close to a full manpower
complement in South Africa, we will benefit sharply from any recovery in the
market.
Dividends
Notice is hereby given that the board has declared an interim dividend of
5.5 cents per ordinary share in respect of the six months ended 30 September
2001. The dividend will be paid on Monday, 03 December 2001.
To comply with the procedures of STRATE the last day to trade in the shares
for purposes of entitlement to the interim dividend is Friday 23 November
2001. The shares will commence trading ex dividend on Monday 26 November
2001 and the record date will be Friday 30 November 2001.
The last date to register for purposes of certificated shareholders will be
Friday 30 November 2001. Certificated shareholders may not dematerialise
their shares between Friday 16 November 2001 and Friday 30 November 2001.
Paul Barnard Norman Au
(Executive Chairman) (Financial Director)
Johannesburg
7 November 2001
Directors:
PA Barnard, KG Jacobs, SM Mellet*, JE van der Hoven, RY Kearney, N Au,
AT Mokhobo*, DD Barber*, L Verrezen, JPS O'Leary
* Non-executive
Company Secretary:
NC Mhluzi
Registered office:
Barnard Jacobs Mellet House, 5 Sturdee Avenue, Rosebank, 2196
Transfer secretaries:
Computershare Services Limited, 4th floor, Edura House, 41 Fox Street,
Johannesburg
