| Wed 28 Nov 2001, 0:00 | | Arcay Group Limited - Unaudited Interim Results |
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CONSOLIDATED BALANCE SHEET
as at 30 September 2001
Unaudited Unaudited Audited
30 Sept 2001 30 Sept 2000 31 Mar 2001
R'000 R'000 R'000
ASSETS
Non-current assets 150 840 150 693 102 139
Property, plant and equipment 69 706 67 201 68 599
Intangible assets 5 523 8 822 7 213
Investments 28 937 58 098 11 768
Deferred taxation 4 784 3 052 2 873
Loans receivable 41 890 13 520 11 686
Current assets 61 918 51 304 138 695
Receivables 19 707 15 067 24 386
Trust cash 36 928 36 002 42 323
Bank balances 5 283 235 71 986
Total assets 212 758 201 997 240 834
EQUITY AND LIABILITIES
Capital and reserves 104 880 101 935 126 057
Non-current liabilities 48 925 48 757 45 635
Debentures 23 470 23 476 23 473
Long-term liabilities 22 599 20 992 22 134
Shareholders' loans 2 856 4 289 28
Current liabilities 58 953 51 305 69 142
Accounts payable 6 734 10 165 13 045
Trust creditors 47 786 36 036 49 792
Taxation 580 976 1 309
Shareholders for dividend 2 288 0 0
Bank overdraft 1 565 4 128 4 996
Total equity and liabilities 212 758 201 997 240 834
CONSOLIDATED INCOME STATEMENT
for the six months ended Unaudited Unaudited Audited
30 September 2001 6 months to 6 months to Year to
Sept 2001 Sept 2000 Mar 2001
R'000 R'000 R'000
TRADING
Interest received 6 095 2 511 6 815
Interest paid (2 386) (1 767) (3 907)
Net interest turn 3 709 744 2 908
Operating revenue 13 054 17 524 38 626
Operating costs (19 317) (11 848) (26 480)
Trading (loss)/profit before
finance costs and taxation (2 554) 6 420 15 054
Finance costs (2 407) (2 255) (5 850)
Trading (loss)/profit
before taxation (4 961) 4 165 9 204
Taxation 1 699 (976) (1 170)
Trading (loss)/profit
after taxation (3 262) 3 189 8 034
NON-TRADING
Non-trading loss
before taxation (12 696) (2 002) (18 738)
Revaluation of investments (8 197) (1 538) (11 525)
Amortisation of goodwill on acquisition
of subsidiaries (4 499) (464) (7 213)
Taxation 0 (180) (353)
Non-trading loss after taxation (12 696) (2 182) (19 091)
APPROPRIATION
Net (loss)/profit for the period (15 958) 1 007 (11 057)
Minorities share of profit (524) 0 0
Attributable (loss)/profit
for the period (16 482) 1 007 (11 057)
Dividends (5 396) 0 0
Retained loss at beginning of period (32 849) (21 792) (21 792)
Retained loss at end of period (54 727) (20 785) (32 849)
SUPPLEMENTARY INFORMATION
'000
Number of shares in issue at
end of period 60 136 59 958 59 958
Basic weighted average number of shares
in issue 60 077 32 717 34 488
CENTS
(Loss)/earnings per share (27,43) 3,08 (32,06)
Adjusted for:
Revaluation of investments 13,64 4,70 33,42
Intangible assets written off 7,49 1,42 20,91
Taxation 0,00 0,55 1,03
Headline (Loss)/earnings per
ordinary share (6,30) 9,75 23,30
Dividends per ordinary share 9,00 0,00 0,00
Tangible net asset value per share 165,22 155,30 198,21
Attributable tangible net asset
value per share 104,18 155,30 137,86
R'000
Capital expenditure for the period 2 844 1 816 2 818
Depreciation of tangible
fixed assets 1 652 454 1 398
Contingent liabilities:
Guarantee of loans and banking
facilities to third parties 2 782 0 4 000
CONSOLIDATED CASH FLOW STATEMENT
Net cash flow from operating activities 1 994 9 959 (5 585)
Cash flow from investing activities (30 581) (54 716) 5 649
Cash flow from financing activities (34 685) 39 917 65 979
Decrease/(increase) in cash and
cash equivalents (63 272) (4 840) 66 043
Cash and cash equivalents at
beginning of period 66 990 947 947
Cash and cash equivalents at end
of period 3 718 (3 893) 66 990
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Balance at beginning of period 126 057 45 483 45 483
Attributable (loss)/profit (16 482) 1 007 (11 057)
Minority shareholder's interest 524 0 36 184
Shares issued 300 55 087 55 301
Debentures converted 2 58 146
Dividends distributed (5 396) 0 0
Other (125) 300 0
Balance at end of period 104 880 101 935 126 057
Arcay Group Limited today announced its interim results for the six months
ended 30 September 2001.
NATURE OF BUSINESS
Arcay Group provides a comprehensive range of financial services to owner-
driven businesses and entrepreneurs in South Africa. It delivers these
services through five closely co-ordinated, but independently managed
business units: Arcay Corporate Finance, Arcay Private Financial Services,
Arcay Finance, Arcay Systems and Arcay Client Support.
RESULTS
During the six months under review, recessionary conditions caused a
slowdown in the flow of corporate finance activity and brought about greater
levels of caution, which led to the slower execution of deals. This,
combined with Arcay Group's substantial investment in IT infrastructure,
affected the interim results materially, with a trading loss of R3,3 million
after taxation, and a headline loss per share of 6,30 cents, which, in turn,
will impact on the year-end results.
The non-trading loss of R12,7 million for the six months was a direct result
of Arcay Group's conservative accounting policy for investments and goodwill
amortisation.
ACCOUNTING POLICIES
The accounting policies adopted for purposes of this interim report comply,
and have been consistently applied in all material respects, with South
African Statements of Generally Accepted Accounting Practice.
GROUP OVERVIEW
During the period under review, a subsidiary of Arcay Group acquired the
businesses of Roxburgh Administrators CC and Roxburgh Benefit Consultants
(Pty) Limited, both of which provide employee benefits services.
The share put options granted to NETIF, in terms of the Southern Bank
acquisition, have been cancelled. The option granted to Netfin in respect of
2,5 million ordinary shares in Arcay Group Limited has lapsed.
Attention is drawn to the circular to Arcay Group Limited debentureholders,
dated 02 November 2001, regarding an early redemption offer and the
ratification of transactions. The meeting to consider the matter was
adjourned.
Arcay Group continues to strengthen its executive team, most recently
through the appointment of a new Financial Director, Neil Stokes.
DIVIDEND
A dividend of 9 cents per share was declared on 18 May 2001.
PROSPECTS
Subsequent to the period under review, Arcay Group was appointed a Sponsor,
in terms of the listing requirements of the JSE. In addition Arcay Group has
positioned itself well to take advantage of the increasing demand for its
services. As a result, it anticipates improved results for the second half-
year period.
By order of the Board
Rolf Frolich Kevin de Villiers
Acting Chairman Chief Executive Officer
29 November 2001
Registered office Transfer secretaries
Arcay House II Number 3 Anerley Road Computershare Services Limited
Parktown 2193 PO Box 62397 2nd Floor Edura House
Marshalltown 2107 41 Fox Street Johannesburg 2001
Directors
RC Frolich* (Acting Chairman) KDD de Villiers (Chief Executive Officer)
TB Davies RA de Villiers R Leonard* MH Prangley* WJ Snyman
N Stokes HC van Heerden*
FC Botha (Alternate) D Kalkwarf (Alternate) G Leonard* (Alternate)
*Non-executive director
