| Mon 10 Jun 2002, 0:00 | | Jigsaw Holdings Limited - Abridged Annual Financia |
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JIGSAW HOLDINGS LIMITED - ABRIDGED ANNUAL FINANCIAL STATEMENTS AT 28
FEBRUARY 2002
(Incorporated in the Republic of South Africa)
(Registration number. 1987/000111/06)
JSE Share code: JGS ISIN: ZAE000018370
("the Group")/("the company")
ABRIDGED ANNUAL FINANCIAL STATEMENTS AT 28 FEBRUARY 2002
The preliminary reviewed results for the year ended 28 February 2002
are as follows:
ABRIDGED GROUP INCOME STATEMENT
Year ended
Year ended 28 February
28 February 2001
2002 (Audited)
R`000 R`000
Revenue 87 213 74 400
Profit from operations 247 6 478
Net finance costs (2 932) (1 457)
(Loss)/Profit before taxation (2 685) 5 021
Taxation (231) (1 481)
(Loss)/Profit after taxation (2 916) 3 540
Attributable to outside
shareholders in subsidiaries (1) (245)
Dividends (846) (520)
(Loss)/Profit for year
attributable to ordinary
shareholders (3 763) 2 775
Headline earnings calculated
as follows:
(Loss)/Profit as above (3 763) 2 775
Add back: Adjustment for
amortisation of goodwill
and intangible assets 1 819 1 240
Add back: Abnormal item -
share incentive scheme
loan impairment 1 694 -
Headline (loss)/profit (250) 4 015
Ordinary shares in issue (millions) 46 386 41 860*
(Loss)/Profit per share (cents) (8,1) 6,6
Headline (loss)/profit per share (cents) (0,5) 9,6
*Weighted average number of shares
ABRIDGED GROUP BALANCE SHEET
28 February
28 February 2001
2002 (Audited)
R`000 R`000
ASSETS
Non-current assets 34 909 33 644
Current assets 70 063 67 493
Total assets 104 972 101 137
EQUITY AND
LIABILITIES
Capital, reserves 25 623 23 440
Minority interests 13 280
Non-current liabilities 6 361 5 834
Current liabilities 72 975 71 583
Total equity and liabilities 104 972 101 137
GROUP CASH FLOW STATEMENT
Year ended
Year ended 28 February
28 February 2001
2002 (Audited)
R`000 R`000
Net cash inflow/(outflow)
from operating activities 5 069 (2 115)
Net interest paid (2 932) (1 457)
Taxation paid (771) (687)
Dividends paid (244) 12
Net cash (outflow)/inflow
from investing activities (6 626) 574
Net cash inflow/(outflow)
from financing activities 928 (747)
Movements on cash and
cash equivalents (4 576) (4 420)
Opening cash and
cash equivalents
at beginning of year (9 167) (4 747)
Cash and cash equivalents
at end of year (13 743) (9 167)
STATEMENT OF CHANGES IN EQUITY
Share Share Distributable
capital premium reserves Total
R`000 R`000 R`000 R`000
Restated balance - - 2 510 2 510
Balance at
1 March 2000
previously stated - - 6 454 6 454
Prior year adjustment - - (3 944) (3 944)
381 37 607 - 37 988
Net profit for year - - 2 775 2 775
As previously stated - - 5 159 5 159
Minority interest - - (245) (245)
Prior year adjustment - - (1 619) (1 619)
Dividends - - (520) (520)
Issue of share capital 47 6 620 - 6 667
Premium on acquisition
of subsidiary written-off - (26 500) - (26 500)
Restated balance 428 17 727 5 285 23 440
- - (3 763) (3 763)
Net loss for year - - (2 916) (2 916)
Minority interest - - (1) (1)
Dividends - - (846) (846)
Issue of share capital 36 5 910 - 5 946
Balance at 28 February 2002 464 23 637 1 522 25 623
Basis of preparation
The results presented are in compliance with statements of GAAP. The
accounting policies have been changed to adopt a more conservative view in
the recognition of revenue.
COMMENTS
Overview
This has been a disappointing year for the business. Although we
continued to achieve strong growth in revenue, two of our subsidiaries
performed poorly in the year under review and consequently brought earnings
down considerably. Performance, however, in our core real estate networks
and financial services operations was good.
Our financial position AND OPERATIONAL REVIEW
Group headline earnings have been significantly affected by continued
operating losses in the Group`s property management services and affordable
housing operations, as reported in the trading update issued on 26 April
2002.
Recovery in the property management services operation has not progressed
as effectively as anticipated following the merger of two of its operating
divisions. The consolidation has proved to be more difficult than expected,
both in terms of culture and integration of systems. This has resulted in a
loss of business which is now being vigorously addressed by management.
These problems have also been exacerbated by continued difficulty in
reconciling the trust accounts of the merged operations. It has therefore
been considered prudent to provide against a potential loss in prior years`
earnings.
Development projects in the affordable housing operation did not come to
fruition during the year, despite prolonged negotiations. There are still
problems with delays in government subsidies and end user finance, but the
long-term prospects for this operation remain very sound. In the short term,
it is expected that there will be a return to profitability with a number of
projects beginning later in the year.
Group revenue reflects an increase of 20 per cent, primarily as a result
of good growth and performance in the core businesses of the Group`s three
real estate networks and in its financial services operations of mortgage
origination and short-term finance. Revenue in the real estate networks
increased as a result of high sales levels and in increase in the number of
franchised offices. In the mortgage origination operation an increase in
gross revenue of 149 per cent and an increase of 214 per cent in operating
profits, reflected the company`s growth in the market place. The market
leadership position in the short-term finance company was further reinforced
by an increase of 35 per cent in its lending book.
Further operating losses were incurred in the newly established, related
services operations of inspection and warranty services, where trading was
delayed due to a longer than anticipated product development phase and
operational expenses having been written-off during this period. The
conclusion of a number of significant contracts in the interim will create a
relevant revenue stream in the year.
Further write-offs and adjustments to outstanding debtors in the real
estate sales, franchise and mortgage origination operations have been made
and are considered prudent as a result of administrative inefficiencies,
insufficient internal controls and a more stringent recovery policy adopted
by the Group. Management steps to rectify and improve on these issues have
and will continue to be taken. Certain fundamental errors in reporting have
been rectified in this process. Where applicable, these adjustments have
been made in prior years.
A number of the adjustments made in the past year are considered to be
non-recurring.
The abnormal item reflected in the Income Statement represents a
provision for the reduction in the realisable value of the loan to the Share
Incentive Trusts due to the decrease in the value of the company`s shares.
Future prospects
Current trading conditions remain positive in the real estate and the
related financial services markets. The anticipated increase in interest
rates of a further 100 basis points in the short term may reduce the current
level of market activity, but this is not expected to impact significantly
on demand for the Group`s services and resultant turnover.
Despite the disappointing results for the current year, the Group has
strengthened its position in a number of its key market segments and it is
believed that this trend will be sustained in the current financial year.
With the effect of the financial year`s setbacks behind it, the Group
looks forward to continuing to build on the sound base of its core
operations and to returning to its track record of growth and profitability
in the new financial year.
Auditors
BDO Spencer Steward (Johannesburg) Incorporated continue to act as
auditors to the company.
A preliminary audit review report is available for inspection. Whilst
these results have been audited, the annual financial statements will only
be available at 30 June 2002.
For and on behalf of the board
G SDOYA
Chief Executive Officer
11 June 2002
DIRECTORS: Gian Sdoya (Acting Chairman and Chief Executive Officer),
Gerald Grieveson (Group Financial Director), Ni l Cronj,
Neville McIntyre, Berry Everitt*, Johan Nel*,
Pieter van der Merwe*, Piet Joubert (Alternate)
*Non-executive
TRANSFER SECRETARIES: Computershare Investor Services Limited,
11 Diagonal Street, Johannesburg, 2001.
PO Box 1053, Johannesburg, 2000
REGISTERED OFFICE: First Floor, 1 St Andrew Street,
Birdhaven, 2196,
PO Box 55136, Northlands, 2116
Date: 10/06/2002 05:20:08 PM Produced by the SENS Department
