| Thu 11 Apr 2002, 0:00 | | Viking Investments - Audited Results For The Year |
|
VIKING INVESTMENTS & ASSET MANAGEMENT LTD
Incorporated in the Republic of South Africa
Registration Number 98/04440/06
Share code : VKG
ISIN code : ZAE000015871
"Viking or the company"
Audited Results for the year ended 31 December 2001
HIGHLIGHTS
* Strategic shift to international resources based business involved in the
extracting and processing of precious metals
* Revenue up 30% to R24m
* Acquisition of US company generating hard currency, contributing over 70%
of the revenue in just four weeks
* Agreement in principle reached to acquire second US company with revenues
in excess of US$90 million
FINANCIAL PERFORMANCE
The venture capital market worldwide has been weak. This has resulted in
Viking changing its strategy to focus on resource based cash generating
businesses. Viking incurred considerable one off costs in acquiring these
offshore investments. Viking has, in addition, written off, or down, all of
its SA investments with the exception of one, Digital Current. For the first
time its four year history Viking experienced a loss for the period of
R4,8m.
REVIEW OF OPERATIONS
Shift Interactive Communications
During the year Viking sold its remaining stake in Shift to Archway Venture
Partners.
Digital Current
Digital Current is a company with a patented data broadcast process and PC
receiver card. A joint venture has been entered into with Infosat, a
satellite data transfer company that has a strategic partnership with
Sentech. A sale of a significant portion of shares in the company has raised
capital to maximize the return on this investment
New Investments
In line with the company's new strategy no new local investments were made.
During the year Viking acquired a controlling interest (75%) in a US
platinum group metal (PGM) processing company. This company, Viking Platinum
LLC, involves the collecting, processing and extraction of PGM's from
catalytic converters. The venture will combine the financial resources,
derivative expertise and entrepreneurial experience of Viking with the
proven management expertise of Westbury Metals Group in the field of
extracting and processing precious metals.
For its controlling stake Viking paid US $1 000 000 and has provided working
capital for an amount of US $2 000 000.
POST BALANCE SHEET EVENTS
Viking has raised R10m from the issue of shares after year end, in addition
to the R5m raised for the period under review. 15 000 000 new shares of 2
cents each where therefore allotted at an issue price of 103.50 cents per
share.
Viking has signed an agreement in principle between a U.S. company, Metech
International Inc. ("Metech"), a wholly owned subsidiary of Trelleborg AB
(pub), and Viking's wholly owned US subsidiary, Viking Platinum Investments
LLC ("Viking U.S.""). A newly formed Delaware company ("Newco"), consisting
of Viking U.S. (as a major shareholder) and Metech management will acquire
various assets and liabilities of Metech as a going concern. Metech has
established a leading position in the largest growth segment of this market,
the recycling of precious metals from electronics manufacturers, and
currently estimates its US market share to be greater than 20%.
Trelleborg AB is one of Sweden's largest industrial conglomerates operating
in over 40 countries with annual revenues of SEK 20 billion and total assets
of SEK 17 billion.
PROSPECTS
Based on the previous year's output, on conclusion of the Metech
transaction, the combined precious metal output of Viking US will be in
excess of 160 000 ounces of PGM's, 150 000 ounces of gold and 6 000 000
ounces of silver
Viking is committed to deliver value to its shareholders through the
acquisition of offshore businesses with good earnings and long term growth
prospects. We are particularly excited at the prospects arising from the
Metech deal as Metech had an audited turnover of US$97m, for the year ending
31st December 2001.
David Mostert has joined the executive team to focus on the US investments.
DIVIDENDS
No ordinary dividends have been declared for the year ended 31 December
2001.
On behalf of the board
LRC Coogan RD Grace
CEO Financial Director
12 April 2002
VIKING INVESTMENTS & ASSET MANAGEMENT LTD
Incorporated in the Republic of South Africa
Registration Number 98/04440/06
Share code: VKG ISIN: ZAE000015871
"Viking"" or "the company"
Directors
LRC Coogan, RD Grace, KO Fordwor* (Ghanaian), RA Legh*, D C Mostert,
M Walsh * Non-executive director
Registered office and business address
Credit Lyonnais House, Peter Place Park, 54 Peter Place, Bryanston, 2021
Transfer Secretaries:
Computershare Services Ltd, 4th Floor, Edura, 41 Fox Street, Johannesburg,
2001
Telephone: (011) 463 8872
Income Statement
Audited Audited
2001 2000
R000's R000's
Revenue 24 232 19 298
Operating (loss)profit before
depreciation and interest (6 909) 10 549
Depreciation (285) (445)
Net interest (paid) received (101) 559
(Loss)Profit before taxation (7 295) 10 663
Taxation 2 189 (2 170)
Minority interest 350
(Loss)Profit after taxation (4 756) 8 493
Headline (Loss)Earnings per
share (cents) (4.72) 8.49
Earnings per share (4.72) 8.49
Number of shares in issue 105 000 000 100 000 000
Balance Sheet
Audited Audited
31 December 2001 31 December 2000
R000's R000's
ASSETS
Non-current assets
Property, equipment & goodwill 14 816 448
Current assets
Available for sale - financial
assets 22 892 24 542
Inventory, accounts receivable
and prepayments 9 525 748
Taxation 0 94
Cash resources 9 187 709
41 604 26 093
Total assets 56 420 26 541
EQUITY AND LIABILITIES
Capital and reserves
Ordinary share capital 2 100 2 000
Share premium 5 075 -
Distributable reserves 16 394 21 149
23 569 23 149
Non-current liabilities
Deferred tax 1 068 3 257
Minority shareholders interest 3 639
Current liabilities 4 707
Accounts and other payables 3 997 135
Short-term loans 24 147
Taxation
28 144 135
Total equity and liabilities 56 420 26 541
Cash Flow Statement
Audited Audited
2001 2000
R000's R000's
Cash flows from operating activities (8 127) 565
Cash flows from investing activities (12 718) (2 248)
Cash flows from financing activities 29 322
Net (decrease) increase in cash and
cash equivalents 8 477 (1 683)
Opening cash and cash equivalents 710 2 393
Closing cash and cash equivalents 9 187 710
Statement of changes in equity
Share Share Accumu- Total
Capital Premium lated
Profits
R000's R000's R000's R000's
Balance at 1 Jan 2001 2 000 - 21 149 23 149
Profit/(Loss) for the year (4 756) (4 756)
Shares issued 100 5 075 5 175
Balance at 31 Dec 2001 2 100 5 075 16 393 23 568
Balance at 1 Jan 2000 2 000 12 657 14 657
Profit for the year 8 492 8 492
Balance at 31 Dec 2000 2 000 21 149 23 149
