| Wed 27 Feb 2002, 0:00 | | Sabvest Limited - Audited Results For The Year |
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Sabvest Limited
Registration number 1987/003753/06
ISIN number: ZAE000006417 - ordinary shares
ISIN number: ZAE 000012043 - "N" ordinary shares
Share code: SBV - ordinary shares
Share code: SVN - "N" ordinary shares
Audited results for the year ended 31 December 2001
Balance sheet
at 31 December 2001
2001 2000
R'000 R'000
Ordinary shareholders' equity 138 178 133 737
Interest-bearing debt 29 034 49 114
Accounts payable 4 935 5 830
Total funds 172 147 188 681
Fixed assets 1 282 1 781
Investment holdings 150 206 179 977
Listed 38 422 66 573
Unlisted 107 690 105 089
Net goodwill on acquisition
of associates 4 094 8 315
Finance advances and receivables 20 179 5 551
Cash balances 480 1 372
Total assets 172 147 188 681
Net asset value per share - cents 295 281
Net tangible asset value per share - cents 286 263
Net asset value per share with
listed investments at market value - cents 279 274
Number of shares in issue less
held in treasury - 000's 46 898 47 664
Income statement
for the year ended 31 December 2001
2001 2000
R'000 R'000
Gross income from operations
and investments 25 758 29 967
Dividends received 3 599 4 356
Interest received 3 397 6 832
Fees and other income 2 833 1 311
Share of equity accounted
retained income 15 929 17 468
Interest paid 7 713 9 429
Net income from operations
and investments 18 045 20 538
Less: Expenditure 6 539 6 206
Operating costs 6 017 5 678
Depreciation 522 528
Net income before exceptional items 11 506 14 332
Exceptional gains/(losses) 1 144 (7 963)
- group (2 853) (5 329)
- associates 3 997 (2 634)
Net income before amortisation of
goodwill and impairments 12 650 6 369
Amortisation of goodwill
and impairments (28 387) 422
- amortisation of goodwill (8 673) (3 306)
- investment impairment provisions (19 714) 3 728
Net (loss)/income before taxation (15 737) 6 791
Taxation - -
Net (loss)/income (15 737) 6 791
Add/(Deduct) exceptional losses/(gains) (1 144) 7 963
Add/(Deduct) amortisation of
goodwill and impairments 28 387 (422)
Headline earnings 11 506 14 332
Headline earnings per share - cents 24,3 27,5
Earnings per share before
amortisation of goodwill and
impairments - cents 26,7 12,2
Earnings per share - cents (33,2) 13,0
Weighted average number of
shares in issue - 000's 47 374 52 066
Summarised cash flow statement
for the year ended 31 December 2001
2001 2000
R'000 R'000
Cash (utilised in) operating
activities (4 277) (11 761)
Cash (utilised) for payment of
dividends and (reduction)/increase
in creditors (894) (7 994)
Cash generated by investing activities 25 551 34 832
Cash effects of financing activities (1 192) (5 265)
Change in cash and cash equivalents 19 188 9 812
Interest-bearing debt, less cash
balances, at beginning of year (47 742) (57 554)
Interest-bearing debt, less cash
balances, at end of year (28 554) (47 742)
Exceptional items
for the year ended 31 December 2001
2001 2000
R'000 R'000
Net (loss) on sale of investments (2 776) (127)
(Costs) arising from the delisting
of Sabhold and Merhold, and in terms
of the Sabvest Share Trust Deed (77) (3 116)
Share of associate companies'
exceptional gains/(losses) 3 997 (2 634)
Recovery of provision against
deposit at bank under curatorship - 1 000
Costs and write-offs arising from
the group's former finance operations - (3 086)
Net exceptional gains/(losses) 1 144 (7 963)
Statement of changes in equity
for the year ended 31 December 2001
Non-
Distri- Distri-
Share Share butable butable
capital premium reserve reserve Total
R'000 R'000 R'000 R'000 R'000
Balance as
at 31/12/99 973 58 652 42 388 26 261 128 274
Translation of
foreign
subsidiary/
associates 4 034 4 034
Attributable
income of
associates 11 153 (11 153) 0
Movement on
NDR of
associates (97) (97)
Retained income
for the year 6 791 6 791
Shares held
in treasury (87) (5 178) (5 265)
Balance as
at 31/12/00 886 53 474 57 478 21 899 133 737
Shares held
in treasury -
written back 87 5 178 5 265
Shares held
in treasury -
cancelled (87) (5 555) (5 642)
Shares held
in treasury (6) (937) (943)
Translation of
foreign
subsidiary/
associates 15 350 15 350
Variation of
interest in
subsidiary/
associates 128 128
Attributable
income of
associates 13 219 (13 219) 0
Movement on
NDR of
associates 6 020 6 020
Retained income
for the year (15 737) (15 737)
Balance as
at 31/12/01 880 52 160 92 195 (7 057) 138 178
Asset profile
at 31 December 2001
Date
Sabvest Number Carrying
first Listed/ of Economic value
Company invested Unlisted shares interest R'000
SABVEST
INDUSTRIAL 101 649
Flowmax
Holdings
Limited (BVI) 1988 U 40,0%
Nutritional
Foods (Pty)
Limited 1989 U 40,0%
SA Bias
Industries
Limited 1988 U 50,0%
Set Point
Technology
Holdings
Limited 2000 L 22 713 665 12,5%
SABVEST BRANDED
DISTRIBUTION
& SERVICES 37 421
Autoquip Group
Limited 1988 L 5 283 647 35,0%
Korbitec
Holdings (Pty)
Limited 1999 U 17,3%
Midsouth
Distributors
(Pty) Limited 1997 U 30,0%
Natural Health
Holdings
Limited 1998 L 64 803 116 29,3%
Privest Group
Limited 1999 L 15 131 070 10,7%
SABVEST
investments 11 136
Datatec Limited 1988 L 300 000
SA Bias
Industries
Limited
Preference
Shares 1997 U
Total investments
per balance sheet 150 206
Finance advances
and receivables 20 179
Cash on hand 480
Fixed assets 1 282
Gross assets 172 147
Commentary
Profile
Sabvest is a holding company with significant minority or joint controlling
interests in four listed and five unlisted companies on all of whose boards
Sabvest is represented.
Financial results
Headline earnings decreased by 12% to 24,3 cents per share as anticipated in
the interim results announcement. Good results were achieved by SA Bias and
Flowmax but Sabvest's overall figures were impacted by weak performances by
its four small cap listed holdings, and the high interest charge.
A once-off goodwill write-off and investment impairment provisions (mostly
relating to Natural Health and Privest) were charged to the income
statement. However, these were more than offset by retained earnings from
operations and foreign exchange translation gains of R15,4 million reflected
in the statement of changes in equity, arising from the group's indirect
holdings in the overseas operations of SA Bias and Flowmax. As a result
shareholders' equity increased to R138,2 million at the year-end.
The group's primary aims in the prior year were to reduce the level of
interest-bearing debt and improve the structure of the group's asset base.
This programme has been successfully implemented. This is evidenced by the
reduction in interest-bearing debt from R49,1 million to R29,0 million, the
improvement in gearing from 37% to 21% and the reduction in the Industrial
and Branded Distribution & Services investments to a level where those
assets are funded by shareholders' equity.
The increase in finance advances and receivables arises mostly from the
conversion of long-term investment loans to short-term advances most of
which should be repaid during the coming financial year.
Accounting policies
The results for the year have been prepared in accordance with the South
African Statements of Generally Accepted Accounting Practice. The accounting
policies used are consistent with those in the previous financial year.
Changes in investment holdings
The group has:
disposed of its interests in Primedia Limited, Metropolis Transactive
Holdings Limited, Learning Resources (Pty) Limited and Campbell & Thiselton
Investment Holdings (Pty) Limited;
reduced its interest in SA Bias preference shares to R4,5 million; and
increased its investments in Natural Health Holdings to 64,8 million
shares, Set Point to 22,7 million shares and Korbitec to 17,3%.
Dividends
Dividend payments are considered annually and may vary or be waived
depending on the group's cash requirements. No dividend will be declared for
the 2001 financial year.
Cautionary announcement
With reference to the cautionary announcement dated 15 February 2002,
shareholders are advised that negotiations are still in progress which may
affect the price of Sabvest shares. They should accordingly continue to
exercise caution when dealing in Sabvest shares until a further announcement
is made.
Prospects
The group's programme for the disposal of investments and the restructuring
of its asset base to reduce interest-bearing debt and focus on its cash
generative holdings is proceeding satisfactorily and should be concluded in
the coming financial year. A higher return on assets and a reduced interest
bill should thereafter impact favourably on the group's results and on the
group's cash flow from operations and investments.
Christopher Seabrooke Philip Coutts-Trotter
Executive Chairman Deputy Chairman
Sandton
28 February 2002
Registered address: 46A Wierda Road West, Wierda Valley, Sandton 2196
Communications: Postal address: PO Box 78677, Sandton 2146, Republic of
South Africa. Telephone: (011) 784 7932 Fax: (011) 784 7941 E-mail:
ho@sabvest.co.za
Directors: CS Seabrooke* (Chairman), P Coutts-Trotter (Deputy Chairman),
HHabib, NSH Hughes, GE Nel, P Pencharz, R Pleaner*, RS Price
*Executive
