| Tue 27 Nov 2001, 0:00 | | Rah/rai - Results For The Six Months Ended 30 Sept |
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RAH
Real Africa Holdings Limited
(Registration number 1994/003919/06)
Share code: RAH
ISIN code: ZAE000008702 ("RAH")
RAI
Real Africa Investments Limited
(Registration number 1994/000398/06)
Share code: RAI
ISIN code: ZAE000008710 ("RAI")
RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2001
FINANCIAL HIGHLIGHTS
RAH RAI
* Value per share as at 21 November
increased to 525 649
* Cash resources at 21 November in excess of R500 million
Real Africa Holdings Limited
Summarised income statement
Six-month period ended Year ended
30 September 31 March
2001 2000 2001
Unaudited Restated(2) Audited
Note R'000 R'000 R'000
Equity accounted
earnings/(loss) 22 074 15 362 (45 487)
- dividends received 10 461 7 600 26 842
- share of retained
- earnings/(loss) 16 787 15 096 (47 729)
- goodwill amortisation (5 174) (7 334) (24 600)
Operating income 10 511 9 740 22 807
Net interest income 17 280 16 666 34 441
49 865 41 768 11 761
Operating costs 11 944 8 927 34 914
Net capital (losses)
/profits 1 (291 764) (1 687) 78 271
- gross (889 274) (1 687) 220 621
- outside shareholders 417 520 - (142 350)
(471 754) (1 687) 78 271
- less gain on hedged position 179 990 - -
(Loss)/profit before taxation (253 843) 31 154 55 118
Taxation 4 196 3 050 7 028
Net (loss)/profit after
taxation (258 039) 28 104 48 090
Outside shareholders 3 276 3 125 7 573
Attributable to ordinary
shareholders (261 315) 24 979 40 517
Headline earnings/(loss) 35 623 34 000 (13 154)
(Loss)/earnings
per share (cents) (69,7) 6,7 10,8
Headline earnings/(loss)
per share (cents) 9,5 9,1 (3,5)
Number of ordinary shares
- in issue (millions) 375,1 375,1 375,1
Number of ordinary shares
- weighted
average (millions) 375,1 375,1 375,1
Headline earnings is
determined as follows:
Attributable to ordinary
shareholders (261 315) 24 979 40 517
Adjusted for:
Net capital losses/(profits) 291 764 1 687 (78 271)
Goodwill amortisation 5 174 7 334 24 600
Headline earnings/(loss) 35 623 34 000 (13 154)
Summarised balance sheet
30 September 31 March
2001 2000 2001
Unaudited Restated(2) Audited
R'000 R'000 R'000
Ordinary shareholders'
funds 1 546 179 1 781 059 1 806 171
Outside shareholders 525 175 775 403 940 099
2 071 354 2 556 462 2 746 270
Fixed assets 1 584 1 664 1 590
Investments and loans 1 703 782 2 201 244 2 390 051
Cash resources 342 580 341 017 348 397
Net current assets 23 408 12 537 6 232
2 071 354 2 556 462 2 746 270
21 November 11 January 28 June
2001 2001 2001
Note R'000 R'000 R'000
Valuation of investments
Listed - at market
value 1 638 906 305 813 1 975 709
Unlisted - at directors'
valuation 516 362 2 069 659 420 409
2 155 268 2 375 472 2 396 118
Value per share
(cents) 3 525 519 517
Summarised cash flow statement
Six-month period ended Year ended
30 September 31 March
2001 2000 2001
Unaudited Restated(2) Audited
R'000 R'000 R'000
Cash flows from
operating activities 4 189 23 183 47 641
Cash flows from
investing activities (10 363) (10 045) (34 886)
Cash flows from
financing activities 357 (1 327) 6 436
Summarised STATEMENT OF CHANGES IN EQUITY
Ordinary Non-
share capital distributable Distributable
and premium reserves reserves Total
R'000 R'000 R'000 R'000
Balance at
1 April 2001 1 742 730 108 718 (45 277) 1 806 171
Net loss for the period - - (261 315) (261 315)
Other - (105 864) 107 187 1 323
Balance at
30 September 2001 1 742 730 2 854 (199 405) 1 546 179
Real Africa Investments Limited
Summarised income statement
Six-month period ended Year ended
30 September 31 March
2001 2000 2001
Unaudited Restated(2)Audited
Note R'000 R'000 R'000
Equity accounted earnings
/(loss) 22 074 15 362 (45 487)
- dividends received 10 461 7 600 26 842
- share of retained earnings
- /(loss) 16 787 15 096 (47 729)
- goodwill amortisation (5 174) (7 334) (24 600)
Operating income 10 511 9 740 22 807
Net interest income 18 092 17 490 36 109
50 677 42 592 13 429
Operating costs 11 987 8 960 34 985
Net capital (losses)/
profits 1 (141 505) (818) 38 112
- gross (889 274) (1 687) 220 621
- outside shareholders 567 779 869 (182 509)
(321 495) (818) 38 112
- less gain on hedged position 179 990 - -
(Loss)/profit before taxation (102 815) 32 814 16 556
Taxation 4 475 3 050 7 232
Net (loss)/ profit after
taxation (107 290) 29 764 9 324
Outside shareholders 18 957 16 858 (11 721)
Attributable to ordinary
shareholders (126 247) 12 906 21 045
Headline earnings/(loss) 17 746 17 281 (5 136)
(Loss)/earnings per share
(cents) (84,0) 8,6 14,0
Headline earnings/(loss)
per share (cents) 11,8 11,5 (3,4)
Number of ordinary shares
- in issue (millions) 150,2 150,2 150,2
Number of ordinary shares
- weighted
average (millions) 150,2 150,2 150,2
Headline earnings is determined
as follows:
Attributable to ordinary
shareholders (126 247) 12 906 21 045
Adjusted for:
Net capital losses/(profits) 141 505 818 (38 112)
Goodwill amortisation 2 488 3 557 11 931
Headline earnings/(loss) 17 746 17 281 (5 136)
Summarised Balance Sheet
30 September 31 March
2001 2000 2001
Unaudited Restated(2) Audited
R'000 R'000 R'000
Ordinary shareholders'
funds 768 385 881 211 893 990
Outside shareholders 1 321 368 1 692 560 1 870 188
2 089 753 2 573 771 2 764 178
Fixed assets 1 584 1 664 1 590
Investments and loans 1 703 782 2 201 244 2 390 051
Cash resources 360 846 358 402 366 199
Net current assets 23 541 12 461 6 338
2 089 753 2 573 771 2 764 178
21 November 11 January 28 June
2001 2001 2001
Note R'000 R'000 R'000
Valuation of
investments
Listed
- at market value 1 638 906 305 813 1 975 709
Unlisted - at
directors' valuation 516 362 2 069 659 420 409
2 155 268 2 375 472 2 396 118
Value per share
(cents) 3 649 640 639
Summarised cash flow statement
Six-month period ended Year ended
30 September 31 March
2001 2000 2001
Unaudited Restated(2) Audited
R'000 R'000 R'000
Cash flows from
operating activities 4 653 23 421 48 296
Cash flows from
investing activities (10 363) (10 045) (34 886)
Cash flows from
financing activities 357 (1 327) 6 436
Summarised STATEMENT OF CHANGES IN EQUITY
Ordinary Non-
share capital distributable Distributable
and premium reserves reserves Total
R'000 R'000 R'000 R'000
Balance at
1 April 2001 764 329 150 225 (20 564) 893 990
Net loss for the
period - - (126 247) (126 247)
Other - (51 344) 51 986 642
Balance at
30 September 2001 764 329 98 881 (94 825) 768 385
Notes on the basis of preparation
1. Net capital losses include a write-down of R856 million in respect of
the Group's investment in Dimension Data Holdings plc ("Didata"), with the
minority share thereof being R418 million. The balance of net capital losses
relates to provisions carried against the carrying value of certain
investments.
2. Comparatives have been restated to recognise the change in accounting
policy whereby certain investments that were previously equity accounted are
now fully consolidated. The policy change has no effect on the income
attributable to ordinary shareholders. The financial information has been
prepared in accordance with South African Statements of Generally Accepted
Accounting Practice.
3. Value per share, stated in cents, is based on ordinary shareholders'
funds reflected on the balance sheet and adjusted by the attributable
increase in the market value of listed investments and directors' valuation
of the unlisted investments at 21 November 2001:
RAH R'000
Ordinary shareholders' funds 1 546 179
Increase in value of underlying investments
at market value and directors' valuation
on 21 November 2001 424 041
1 970 220
Shares in issue (millions) 375,1
Value per share (cents) 525
RAI R'000
Ordinary shareholders' funds 768 385
Increase in value of underlying investments
at market value and directors' valuation
on 21 November 2001 205 660
974 045
Shares in issue (millions) 150,2
Value per share (cents) 649
Commentary
This six-month reporting period has been characterised by significant
volatility in the performance of stock exchanges globally. Stocks in the
information technology ("IT") sector have been particularly vulnerable to
the downturn in economies around the world. The Real Africa Group has not
been immune to these consequences particularly in the light of its large
investments in the IT sector. This has resulted in a write-down of R856
million in our underlying investments. RAH has managed to limit the
potential downside by instigating a hedging strategy on a timely basis. The
hedging position was unwound subsequent to this period end, thereby
improving our cash resources to some R500 million. Real Africa's value per
share has increased over the reporting period despite the decline in the
valuation of our investment in the IT sector.
In regard to our other investments, we successfully completed our disposal
of Real Africa Durolink in exchange for shares in PSG Investment Bank
Limited. Our investment in Oceana Fishing has continued to produce pleasing
results whilst our healthcare interests are performing above expectations.
Despite uncertainties currently prevailing in world markets, we continue to
believe that our strong ungeared balance sheet is well positioned to pursue
strategic empowerment initiatives as they present themselves. Exciting
initiatives of this nature include our investments in Chemcity and Advanced
Wealth Management, as previously announced.
By order of the boards
D M J Ncube (Executive chairman)
S Pather (Executive director)
22 November 2001
