| Mon 26 Nov 2001, 0:00 | | Real People Finance - Interim Results For The Peri |
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REAL PEOPLE FINANCE
INTERIM RESULTS FOR THE PERIOD ENDED 30 SEPTEMBER 2001
Incorporated in the Republic of South Africa Registration number
1997/020159/06
Share code RPF ISIN code ZAE000030821
COMMENTS
"REAL PEOPLE FINANCE GETS REAL"
Real People Finance Limited (formerly Money Wise Holdings Limited) is
pleased to announce its interim results for the six months ended 30
September 2001.
NATURE OF BUSINESS
Real People Finance provides a full spectrum of innovative and
technologically-advanced financial services to sectors of the community not
currently serviced by the traditional banks.
RESULTS
As per forecasts made in June this year, Real People Finance is firmly on
track to meet the expectation of headline earnings per share (HEPS) of 12
cents for the year ending 31 March 2002.
During the six months under review, the company's revenue has increased by
210,7% to R64,87 million from R20,88 million. The company achieved headline
earnings of R11,1 million, an increase of 148,1% on the six months ended 31
December 2000. HEPS has increased by 33,2% to 4,21 cents. Real People
Finance also recorded a significant increase in its advances book.
Real People Finance consolidated five ordinary issued shares of 0,01 cents
into one new ordinary share of 0,05 cents with effect from 4 June 2001. As a
result HEPS was restated for the six months ended 31 December 2000 and the
15 months ended 31 March 2001.
Goodwill, being the excess of the cost of an acquisition over the fair value
of the group's share of net assets of the acquired subsidiary at the date of
acquisition, is capitalised as an intangible asset and amortised on the
straight-line basis over two years.
During the period, Real People Finance implemented new, sophisticated
collection methodologies and, together with its holding company, Real People
Holdings, was amongst the first to supply the Micro Finance Regulatory
Council (MFRC) with information for its National Loans Register (NLR). This
initiative by the MFRC to regulate the industry, is facilitated by the use
of a database to enable micro lenders to assess a borrower's level of
indebtedness, as well as evaluating affordability before granting a loan.
This is aimed at preventing a continuing spiral of debt and minimising
default.
The company has successfully streamlined its business, through extensive
cost-cutting measures, the centralisation of its loan books and the
consolidation of head offices.
PROSPECTS
For the next six months, the agent and branch network will remain a key
focus area, with rationalisation being planned.
Strong management, industry expertise and a technologically-advanced
information support platform will allow Real People Finance to continue to
increase profitability and strengthen its position in the industry.
CHANGES TO THE BOARD OF DIRECTORS
Real People Finance is pleased to welcome Shane Ferguson to the Board as a
non-executive director. He brings with him considerable experience in the
industry. The board also wishes to thank Gerhard van Tonder and Tom Thomas
for their contributions to date. Both have resigned from the Board, but will
remain as executives within the Group. Piet van Heerden has been appointed
executive director with immediate effect.
By order of the Board
Sarel de Vos Chairman Johan van Rooyen Managing Director
26 November 2001
Registered office 95 Chamberlain Road 5247 Vincent Private Bag X6 5214
Tecoma East London
Transfer secretaries Computershare Services Limited 2nd Floor Edura House
41 Fox Street 2001 Johannesburg
Directors SJ de Vos (Chairman)* J van Rooyen (Managing Director)
KDD de Villiers* HC van Heerden* PW van Heerden MN Wilkins*
ST Ferguson* *Non-executive
Sponsor KPMG
GROUP INCOME STATEMENT for the period ended 30 September 2001
Unaudited Unaudited Audited
6 months ended 6 months ended 15 months ended
30 September 2001 31 December 2000 31 March 2001
R'000 R'000 R'000
Interest income 64 875 20 887 83 590
Interest expense (9 001) (4 050) (6 500)
Net interest 55 874 16 837 77 090
Charge for bad and doubtful
advances (32 144) (4 752) (30 668)
23 730 12 085 46 422
Non interest income 25 005 20 420 14 670
Total net revenue 48 735 32 505 61 092
Goodwill amortisation (9 140) (2 274) (4 380)
Operating costs (33 962) (25 861) (78 675)
Net income/(loss) before
taxation 5 633 4 370 (21 963)
Taxation (3 671) (2 186) 7 286
Net income/(loss) after
Taxation 1 962 2 184 (14 677)
Loss from associated
Company - - (557)
Net income/(loss) attributable to
ordinary shareholders 1 962 2 184 (15 234)
Adjusted for:
- Provisions (543) - 5 547
- Goodwill amortisation 9 140 2 274 4 397
- Impairment of assets 500 - 689
Headline earnings/(loss) 11 059 4 458 (4 601)
Ordinary shares ('000)
- in issue 256 162 141 157 141 157
- weighted number of
shares in issue 262 977 141 157 111 793
Attributable earnings/
(loss) per share (cents) 0,75 1,55 (13,65)
Headline earnings/(loss)
per share (cents) 4,21 3,16 (4,15)
GROUP BALANCE SHEET as at 30 September 2001
Unaudited Unaudited Audited
30 September 2001 31 December 2000 31 March 2001
R'000 R'000 R'000
ASSETS
Property, plant and
Equipment 5 406 6 564 6 761
Goodwill 23 113 6 821 30 064
Deferred taxation 13 314 6 285 8 818
Inventories - 560 118
Accounts receivable 6 185 873 888
Net advances 151 060 38 442 159 681
Advances 193 271 41 093 166 525
Provision for doubtful
Advances (42 211) (2 651) (6 844)
Cash and cash equivalents 6 345 1 439 5 426
TOTAL ASSETS 205 423 60 984 211 756
EQUITY AND LIABILITIES
Shareholders' funds 45 643 16 633 42 549
Shareholders' loans 108 543 14 505 127 211
Interest bearing borrowings 1 823 2 232 2 140
Trade and other payables 14 480 7 644 13 017
Taxation 17 074 2 833 8 782
Bank overdraft 17 333 16 831 17 438
Current portion of interest bearing
Borrowings 527 306 619
TOTAL EQUITY AND
LIABILITIES 205 423 60 984 211 756
Net asset value per share
(cents) 17,36 11,78 38,06
Net tangible asset value
per share (cents) 8,57 6,95 11,17
GROUP CASH FLOW STATEMENT for the period ended 30 September 2001
Unaudited Unaudited Audited
6 months to 6 months to 15 months to
30 September 2001 31 December 2000 31 March 2001
R'000 R'000 R'000
Cash flows from operating
Activities 25 008 (14 189) (15 967)
Cash flows from investing
Activities (159) (11 251) (51 851)
Cash flows from financing
Activities (23 825) 24 336 56 116
Net change in cash and
cash equivalents 1 024 (1 104) (11 702)
Cash and cash equivalents
at the beginning of the
period (12 012) (14 288) (310)
Cash and cash equivalents
at the end of the period (10 988) (15 392) (12 012)
GROUP STATEMENTS OF CHANGES IN EQUITY for the period ended 30 September
2001
Share Share Amounts due Accumulated
Capital premium to vendors loss Total
R'000 R'000 R'000 R'000 R'000
Balance as at
31 December 1999 24 19 887 - 3 177 23 088
Net loss for the period - - - (19 016) (19 016)
Balance as at 30 June 2000 24 19 887 - (15 839) 4 072
Net profit for the period - - - 2 184 2 184
Issue of share capital 47 11 526 - - 11 573
Share issue expenses
written off - (1 196) - - (1 196)
Balance as at
31 December 2000 71 30 217 - (13 655) 16 633
Net profit for the period - - - 165 165
Shares to be issued to
Vendors - - 25 876 - 25 876
Share issue expenses
written off - (125) - - (125)
Balance as at 31 March
2001 71 30 092 25 876 (13 490) 42 549
Net profit for the period - - - 1 962 1 962
Shares to be issued to
Vendors - - 1 704 - 1 704
Issue of share capital 57 25 819 (25 876) - -
Share issue expenses
written off - (572) - - (572)
Balance as at
30 September 2001 128 55 339 1 704 (11 528) 45 643
