| Mon 19 Nov 2001, 0:00 | | Jigsaw - Financial Report |
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Jigsaw Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1987/000111/06)
Share code JGS ISIN ZAE000018370
("the Group")
INTERIM REPORT 31 AUGUST 2001
The unaudited results for the six months ended 31 August 2001 are as
follows:
* Revenue increases by 43%
* Headline earnings up by 45%
* Headline earnings per share up 20%
ABRIDGED GROUP INCOME STATEMENT
Six months Six months Year
ended ended ended
31 Aug 2001 31 Aug 2000 28 Feb 2001
(Unaudited) (Unaudited) (Audited)
R'000 R'000 R'000
Revenue 49 068 34 367 72 654
Profit from operations 6 510 3 558 8 227
Net finance costs (1 700) 77 (1 473)
Profit before taxation 4 810 3 635 6 754
Taxation (1 094) (827) (1 594)
Profit after taxation 3 716 2 808 5 160
Attributable to outside
shareholders in subsidiaries (412) (514) (245)
Preference share dividends (204) (202) (520)
Retained profit for the
period attributable to
ordinary shareholders 3 100 2 092** 4 395
Adjustment for amortisation of
goodwill and intangible assets 836 620 1 240
Headline earnings 3 936 2 712 5 635
Ordinary shares in issue 46 386 37981* 41 860*
Earnings per share (cents) 6,7 5,5** 10,5
Headline earnings per share (cents) 8,5 7,1 13,5
*Weighted average number of shares.
**Earnings have been restated for adjustment for amortisation of goodwill
and intangible assets.
STATEMENT OF CHANGES IN EQUITY
Share Share Accu-
Capital Premium mulated
Profits Minority Total
Balance at 1 March 2000 380 11 107 6 455 21 17 963
Share issue expenses (238) (238)
Retained profit to
31 August 2000 2 712 2 712
Outside shareholders 387 387
Balance at 31 August 2000 380 10 869 9 167 408 20 824
Issue of share capital 48 7 036 7 084
Share issue expenses (177) (177)
Retained profit to
28 February 2001 1 683 1 683
Outside shareholders (129) (129)
Balance at 28 February 2001 428 17 728 10 850 279 29 285
Issue of share capital 36 5 696 5 732
Share issue expenses (35) (35)
Retained profit to
31 August 2001 3 100 3 100
Outside shareholders 343 343
Balance at 31 August 2001 464 23 389 13 950 622 38 425
ABRIDGED BALANCE SHEET
31 Aug 2001 31 Aug 2000 28 Feb 2001
(Unaudited) (Unaudited) (Audited)
R'000 R'000 R'000
ASSETS
Non-current assets 37 008 16 023 33 666
Current assets 80 020 44 432 76 007
Total assets 117 028 60 455 109 673
EQUITY AND
LIABILITIES
Capital, reserves and
minority interests 38 425 20 824 29 285
Non-current liabilities 6 701 2 041 5 834
Current liabilities 71 902 37 590 74 554
117 028 60 455 109 673
CASH FLOW STATEMENT
Six months Six months Year
ended ended ended
31 Aug 2001 31 Aug 2000 28 Feb 2001
(Unaudited) (Unaudited) (Audited)
Cash (utilised by)/generated
from operating activities
Cash receipts from customers 40 197 32 420 40 772
Cash paid to suppliers and
employees (34 822) (28 591) (42 871)
Net cash (outflow)/inflow
from operating activities 5 375 3 829 (2 099)
Net interest (paid)/received (1 700) 76 (1 473)
Taxation paid (374) (320) (687)
Dividends paid (68) (117) 12
Net cash (outflow)/inflow from
investing activities (4 672) 5 763 574
Net cash inflow/(outflow) from
financing activities 764 (8 093) (747)
Movement on cash and cash
equivalents (675) 1 138 (4 420)
Opening cash and cash
equivalents at beginning
of period (9 167) (4 747) (4 747)
Opening cash and cash
equivalents at end of period (9 842) (3 609) (9 167)
Basis of preparation
The interim results presented are in compliance with GAAP and the same
accounting policies and methods of computation have been used as were used
for our most recent annual financial statements.
COMMENTS
Our financial position
Group revenue has reflected a pleasing increase of 43% due to solid
performance in the real estate sales and franchise operations and
significant growth in our financial services companies, Ascendant Mortgages
and Ascendant Cashflow Solutions. Headline earnings have increased by 45%
from R2,7 million to R3,9 million. Headline earnings per share have
increased by 20% on a 22% higher capital base. This increase in capital base
is a result of the acquisition of Realty 1 Elk and the issue of shares for
the Group's share schemes. The balance sheet reflects a pleasing improvement
on net current assets and gearing remains relatively low.
The period under review
Our three real estate networks of Aida, ERA and Realty 1 Elk performed
well and reflected good growth in line with the favourable market
conditions.
Ascendant Mortgages has performed well ahead of financial projections and
has established itself as one of the leading mortgage origination companies
in the industry. Ascendant Cashflow Solutions has increased its market share
and grown its loan book by some 40% since the acquisition of the business in
October 2000.
A number of large housing development projects have been under
negotiation for the past few months which we believe will return our housing
development company, Machaus, to profitability in the latter half of the
financial year. In the meantime operating costs have been reduced to minimum
levels.
Consolidation of our property management services company, Yellow Button,
has been completed and, as planned, the company has returned to a profit,
despite under-performing against budget. Increasing volumes in the
management of properties-in-possession are expected to substantially assist
the company in this recovery.
We expect current market and trading conditions to remain relatively
stable with further improvement contemplated as a result of possible further
interest rate reductions early in the new year.
Significant investment in the newly established companies of Home
Inspector and Home Warranty Services has been made and the necessary
infrastructure and marketing plans have been completed, enabling trading to
commence in the second half of this financial year. Meaningful business
opportunities for these companies are currently being negotiated with major
banking groups and other national corporates.
The Group's strategic insurance initiative with Alexander Forbes has
commenced and operating revenue is expected to flow in the new year.
We continue to pursue further expansion in our existing and new markets,
specifically financial services, as part of an ongoing process to diversify
earnings. Further strategic investment and the improvement in share
liquidity remain a key focus.
Auditors
BDO Spencer Steward (Johannesburg) Incorporated continue to act as
auditors to the company.
For and on behalf of the board
G Sdoya
Chief Executive Officer
14 November 2001
DIRECTORS
Gian Sdoya (Acting Chairman and Chief Executive Officer), Gerald Grieveson
(Group Financial Director), Niel Cronje, Hannes Coetzer, Neville McIntyre,
Berry Everitt*, Ian Moskovitz*, Johan Nel*, Pieter van der Merwe*, Piet
Joubert (Alternate), Piet Viljoen (Alternate) *Non -executive
TRANSFER SECRETARIES
Mercantile Registrars Limited, 11 Diagonal Street, Johannesburg, 2001, PO
Box 1053, Johannesburg, 2000
REGISTERED OFFICE
First Floor, 1 St Andrew Street, Birdhaven, 2196, PO Box 55136, Northlands,
2116
