| Tue 12 Feb 2002, 0:00 | | Spearhead - Interim Results |
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SPEARHEAD PROPERTY HOLDINGS LTD
(Incorporated in the Republic of South Africa)
(Registration number 1996/005827/06)
Share code: SPE ISIN: ZAE000019162
("Spearhead")
Interim Results
For the six months ended 31 December 2001
Financial Highlights
* Profit before debenture interest 14%
* Distribution per linked unit 9%
* Net Asset Value per unit 20%
ABRIDGED CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited
6 months 6 months
% ended ended
Change 31 Dec 01 31 Dec 00
R'000 R'000
Revenue 2,0 30 431 29 834
Operating income 5,3 20 034 19 032
Before: Depreciation 546 541
Goodwill amortised 485 485
Net finance costs 9 969 10 112
Profit before debenture
interest 14,4 9 034 7 894
Debenture interest 8 907 7 741
Net profit before taxation 127 153
Net profit/(loss) after taxation 191 (199)
Income taxation income/expense 318 (46)
Linked units in issue 14 138 635 13 345 777
Earnings per linked unit (cents) 8,0 63.90 59.16
Distribution per linked unit
(cents) 8,6 63.00 58.00
Abridged CONSOLIDATED Cash Flow Statement
Unaudited Unaudited
6 months 6 months
ended ended
31 Dec 01 31 Dec 00
R'000 R'000
Cash generated from operations
before working capital changes 19 255 18 933
Working capital changes (19 906) (3 118)
Net finance costs (19 218) (17 778)
Cash flows from operating activities (19 869) (1 963)
Cash flows from investing activities (7 059) 7 242
Cash flows from financing activities 14 953 (10 312)
Net decrease in cash and cash
equivalents (11 975) (5 033)
Cash and cash equivalents at
beginning of year 23 665 17 191
Cash and cash equivalents at
end of period 11 690 12 158
Abridged CONSOLIDATED
Balance Sheet
Unaudited Unaudited
6 months 6 months
ended ended
31 Dec 01 31 Dec 00
R'000 R'000
Non current assets 323 934 298 076
Property, plant and equipment 306 042 279 918
Goodwill 16 973 17 943
Other financial assets 225 187
Deferred taxation 694 28
Current assets 21 937 17 184
Trade and other receivables 10 247 4 983
Foreign exchange gain - 43
Cash and cash equivalents 11 690 12 158
Total assets 345 871 315 260
Equity and liabilities
Equity and Non current liabilities 329 228 298 183
Capital and reserves 31 891 3 188
Debentures 138 559 130 691
Linked unitholders' interest 170 450 133 879
Interest bearing borrowings 157 750 163 718
Deferred taxation 1 028 586
Current liabilities 16 643 17 077
Trade and other payables 7 612 9 316
Receiver of Revenue 124 23
Foreign Exchange loss
Unitholders for distribution 8 907 7 738
Total equity and liabilities 345 871 315 260
Net asset value per linked unit
including intangibles (Rands) 20,0% 12.06 10.05
Net asset value per linked unit
excluding intangibles (Rands) 24,8% 10.85 8.70
Statement of Changes in Equity
Share Share Distributable
Capital Premium Reserve Total
R'000 R'000 R'000 R'000
Balance at 30 June 2001 129 716 33 886 34 731
Issue of shares 12 - - 12
Attributable earnings - - 318 318
Discount on debentures - - (3 170) (3 170)
Balance at
31 December 2001 141 716 31 034 31 891
Balance at 30 June 2000 143 716 (240) 619
Issue of shares (10) - - (10)
Attributable earnings - - (46) (46)
Discount on debentures - - 2 625 2 625
Balance at
31 December 2000 133 716 2 339 3 188
Comment
Financial Performance
The accounting policies used in the preparation of these financial results
are the same as those used in previous periods. These financial results have
been prepared in accordance with Statements of Generally Accepted Accounting
Practice. Profit before debenture interest distributions rose by 14% over
the corresponding period of last year, mainly due to tight cost control and
good occupancies.
This has allowed an 8.6% increase in the interim distribution per linked
unit to 63 cents per linked unit and continues Spearhead's fine record of 5
straight period increases in distribution growth since listing.
All Spearhead linked units held by Spearhead subsidiary Evertrade 192
(Pty) Ltd were sold during the period at a profit.
Portfolio activity
A number of properties were acquired during the period including the
McCarthy Volkswagen property in Parow, Cape and the Old Naspers building on
Buitengracht Street. Transfer of both properties was only effected after the
period end.
Construction at the Spearhead Business Park development in Montague
Gardens next to Century City is proceeding well and a non-core section of
land was sold at a profit to Media 24 Ltd.
Occupancy levels rose to 94.5% at the end of the period, up from 94% for
the corresponding period last year. Net asset values also increased due to
the revaluation exercise performed by independent valuers in June 2001.
Prospects
The market has been getting increasingly difficult with other property
companies experiencing declines in income. Interest rate rises are also
weighing heavily on the industry although the company has an interest rate
hedge for 68% of its debt until March 2003.
It is still expected that Spearhead will show growth in the 2nd half of
the year, but at lower levels than shareholders have been accustomed to.
The Board
Lance Hoffman, executive in charge of technical and development activities
at Spearhead, was appointed a director of the company with effect from 1
February 2002.
Monty Kaplan was also elected as Chairman of the company replacing Frans
van Hoogstraten who remains a non-executive director.
Distribution declaration
Notice is hereby given of the declaration of distribution no. 5 in respect
of the six months to 31 December 2001 which amounts to 63 cents per unit.
The last date to trade cum distribution will be Friday, 8 March 2002 and the
units will commence trading ex distribution from Monday, 11 March 2002, with
the record date being Friday, 15 March 2002. Payment will be effected on
Monday, 18 March 2002. Unit Certificates may not be dematerialised or re-
materialised from Monday, 4 March 2002 to Friday, 15 March 2002, both days
inclusive.
On behalf of the Board
M KAPLAN MN FLAX
Chairman Managing Director
For more information on the company, see: www.spearheadprop.com
Directors:
M Kaplan (Chairman), M N Flax (Managing), J E Allie, D M Wilder, L
Hoffman, A Groll, H Schreuders, F van Hoogstraten, D B Fabian
Registered Office:
Spearhead Property Holdings Limited, Level P, The Centurion, Main Road,
Three Anchor Bay, Cape Town, 8005
Registration Number 1996/005827/06 Share Code: SPE ISIN: ZAE 000019162
Transfer Secretaries:
Mercantile Registrars Limited, 11 Diagonal Street, Johannesburg, 2001.
PO Box 1053, Johannesburg, 2000
