| Thu 4 Apr 2002, 0:00 | | Capitec Bank Holdings Limited - Audited Financial |
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28 February 2002
Capitec Bank Holdings Limited
Registration number: 1999/025903/06
JSE share code: CPI ISIN code: ZAE000035861
Audited financial results for the year ended 28 February 2002
Highlights of the past year
Capitec Bank became a registered bank
Headline earnings of R48 million
46 new Capitec Bank branches established
Dividend of 28,5 cents per share proposed
Capitec Bank Holdings listed on the JSE
Capital base grew to R391 million
NAV of 587 cents
Group income statement
Audited Audited
Pro forma
2002 2001
R'000 R'000
Income
Net interest income 269 869 194 473
Other operating income 1 000 3 745
Total income 270 869 198 218
Expenses
Provision for bad and doubtful debts 25 896 14 339
Operating expenses 178 333 117 251
Operating profit 66 640 66 628
Exceptional items - 7 625
Income before taxation 66 640 74 253
Taxation 18 573 21 286
Net income 48 067 52 967
Attributable to outside shareholders 79 (12)
Earnings attributable to shareholders 47 988 52 979
Adjustments after tax and outside
shareholders' interest
- PSG Anchor Finance disposal - (18 298)
- Goodwill amortised - 9 910
- Other - 763
Headline earnings 47 988 45 354
Earnings per share (cent)
- Earnings and headline earnings per share 80,2 137,1
- Fully diluted headline earnings per share 78,3 115,2
Number of shares ('000)
- Issued 66 656 53 080
- Weighted 59 868 33 080
Proposed dividend per share (cent) 28,5 34,1
Group cash flow statement
Audited
2002
R'000
Cash flow from operating activities 46 034
Cash utilised in investing activities (114 488)
Cash flow from financing activities 97 127
Net increase in cash and equivalents 28 673
Effects of exchange rate changes 733
Cash and short-term funds at beginning of period 46 987
Cash and short-term funds at end of period 76 393
Group balance sheet
Audited Audited
Pro forma
2002 2001
R'000 R'000
Assets
Fixed assets 127 463 30 126
Net intangible assets - 87 994
Deferred taxation 85 573 891
Non-current receivables 22 712 18 614
Other receivables and pre-payment 4 668 19 515
Net loans and advances 92 068 83 881
Cash and short-term funds 76 393 46 987
408 877 288 008
Liabilities
Long-term liabilities - 80 000
Other liabilities and provisions 17 629 47 181
17 629 127 181
Shareholders' funds
Ordinary shareholders' funds 391 248 160 869
Outside shareholders' funds - (42)
Total shareholders' funds 391 248 160 827
408 877 288 008
Net asset value per share (cent) 587,0 303,0
Return on average ordinary
shareholders' funds (%) 17,4 24,9
Statement of change in equity
Audited
2002
R'000
Ordinary shareholders' funds at the
beginning of the year 100 000
Net proceeds of shares issued 245 400
Share issue and listing expenses
written off against equity (2 873)
Exchange difference on translation of
financial statements of foreign entities 733
Net income for the year 47 988
Ordinary shareholders' funds at the
end of the year 391 248
NOTES
1. Accounting policies
The accounting policies that were applied in this report conforms with South
African Statements of Generally Accepted Accounting Practice and are
consistent with the accounting policies used in the audited pro forma
results of the prior year.
2. Pro forma prior year numbers
Capitec Bank Holdings Limited was dormant up to 28 February 2001 and
purchased the business of Keynes Rational Limited on 1 March 2001. The pro
forma prior year figures have been compiled from the audited accounts of
Keynes Rational Limited in order to reflect only the results of the short-
term lending business for the year ended 28 February 2001.
No prior year cash flow results have been included, as the cash flow of the
short-term lending business of Keynes Rational could not be separated
clearly from the other businesses of that company.
3.Dividend
No dividend is raised as a liability in the 2002 financial statements as the
dividend was proposed and will be paid only after the year-end. This is in
line with recommended accounting practice.
4. Changes since publication of pre-listing statement
4.1 The Share Incentive Trust was consolidated in the pre-listing statement.
This policy was subsequently amended. The loan to the Share Incentive Trust
of R17,3 million is now disclosed as part of non-current receivables.
4.1 The effect of the change between the pre-listing statement and the
reported figures above is an increase in the number of issued shares and
average number of shares by 3,5 million for both the current and prior
years. Ratios such as earnings per share therefore differ between the two
documents.
4.2 Key Distributors (Pty) Ltd was incorporated in January 2001 with the
objective to distribute fast moving consumer goods ("FMCG") to the informal
sector and is used as a channel to provide finance to this sector.
4.2 Our strategy was to establish the business, create the channel for
financing and then sell the non-core FMCG business.
4.2 This was sold on 28 February and the establishment cost of R3,5 million
was recovered through the sale. The effect was an increase of R3,5 million
in earnings compared to the forecast in the pre-listing statement.
5. Restructure
During the past financial year the group was restructured as required to
operate as a banking group. This, in broad outline, entailed:
* the placing of the core business of Capitec Bank (valued at R165,4 million
for this purpose) in a corporate entity registered as a bank
* the recapitalisation of this business by means of a cash injection of R100
million
* the conversion of R80 million in unsecured debentures to equity
As a result Capitec Bank Holdings Ltd was established as a bank-controlling
company with a wholly owned operating subsidiary registered as a bank.
The year ahead
* Capitec Bank will start operating as the country's first new retail bank
in years.
* Capitec Bank will make banking accessible to all South Africans.
* Clients will be offered tailor-made savings accounts, debit cards and
personal loans.
* Branches will be paperless.
* Low-cost infrastructure will ensure affordable banking.
* Rolling out banking products will increase the cost structure during the
coming year, as Capitec Bank positions itself for future growth. As a
consequence, profits will decrease to a projected R29,4 million as disclosed
in the pre-listing statement.
* The problems experienced by two of the biggest players operating in the
same market segment as Capitec Bank, have created investor concern about the
market.
- The positive impact for Capitec Bank is a validation of our strategy
that we do not want to provide loans on a payroll deduction model. We remain
convinced that full retail banking will satisfy client needs and enable us
to manage risks better.
- The decreased level of activity by two major competitors is also
positive for Capitec Bank.
- However, we expect it to be more difficult to raise the additional
funding required to roll out our expansion plan, although we have no
significant creditors or liabilities.
Distribution to shareholders
The directors propose a dividend of 28,5 cents per share.
To comply with the requirements of STRATE, the following dates are
applicable :
Last day to trade cum dividend Friday, 7 June 2002
Trading ex dividend commences Monday, 10 June 2002
Record date Friday, 14 June 2002
Date of payment Tuesday, 18 June 2002
Share certificates may not be dematerialised between Monday, 3 June 2002 and
Friday, 14 June 2002, both days inclusive.
Annual general meeting
The annual general meeting will be held on 31 May 2002.
On behalf of the board
M S du P le Roux R Stassen
Chief executive officer Managing director
Administrative information
Capitec Bank Holdings Limited
Registration number: 1999/025903/06
JSE share code: CPI ISIN code: ZAE000035861
Company secretary and registered office
Christian George van Schalkwyk
Bcom. LLB. CA(SA)
No 10 Quantum Road
Technopark
Stellenbosch 7600
(PO Box 12451, Die Boord, Stellenbosch 7613)
Registrars
Computershare Services Limited
Registration number: 1958/003546/06
2nd Floor, Edura
41 Fox Street
Johannesburg 2001
(PO Box 61051, Marshalltown 2107)
Directors
JF Mouton (Chairman), CJ Borstlap*, MS du P le Roux*, MC Mehl, CA Otto,
JG Solms, R Stassen*, J van Zyl Smit
* Executive
