| Wed 19 Jun 2002, 0:00 | | Jci Gold Limited: Audited Results |
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JCI Gold Limited: Audited Results
JCI Gold Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/005215/06)
JSE share code: JCG ISIN: ZAE000015467
(JCI or "the company")
AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2002
ABRIDGED CONSOLIDATED INCOME STATEMENT
Year ended Year ended
31 March 31 March
2002 2001
Notes R`000 R`000
Revenue 33 356 168 482
Net (loss)/income before taxation
and exceptional items 1 (71 675) 129 086
Share of net (losses)/earnings of
associated companies (6 280) 14 170
Exceptional items 2 (10 311) 16 748
Net (loss)/income before taxation (88 266) 160 004
Taxation 43 11 707
Net (loss)/income after taxation (88 309) 148 297
Outside shareholders` interest 269 -
Net (loss)/earnings for the year (88 040) 148 297
(Loss)/earnings per share (cents)
- headline (loss)/earnings (73,9) 38,8
- attributable (loss)/earnings (56,6) 95,4
Headline (loss)/earnings are calculated as follows:
Net (loss)/income for the year (88 040) 148 297
Exceptional items 10 311 (16 748)
Items of a capital nature
- negative goodwill amortised (39 103) (71 381)
- amortisation of goodwill 1 800 414
- items of a capital nature 101 (311)
(114 931) 60 271
NOTES TO THE INCOME STATEMENT
2002 2001
1. Net (loss)/income after taking into R`000 R`000
account the following:
- Dividends received 1 330 12
- Interest received 12 755 138 086
- Interest paid (84 226) (45 642)
- Negative goodwill amortised 39 103 71 381
- Depreciation and amortisation (2 242) (1 387)
- (Increase)/decrease of provision
against investment (4 743) 3 883
- Profit on realisation of investments 1 466 55
- Project development costs - (11 001)
2. Exceptional items
- Surplus on disposal of an operating business - 20 049
- Profit on realisation of assets - 9 349
- Recovery of loan previously written-off 2 139 -
- Restructuring costs (12 444) (1 969)
- Write-down of investments and loans (6) (10 681)
(10 311) 16 748
ABRIDGED CASH FLOW STATEMENT
31 March 31 March
2002 2001
R`000 R`000
Cash flows from operating activities (8 115) (11 497)
Cash flows from investment activities (128 224) (102 582)
Cash flows from financing activities 102 827 124 600
Net movement in cash (33 512) 10 521
Net cash at bank/(bank overdraft)
at beginning of year 2 952 (7 569)
Cash in subsidiary acquired 28 -
Net (bank overdraft)/cash at bank at
end of the year (30 532) 2 952
STATEMENT OF CHANGES IN EQUITY
Equity
Accounted
Share Currency Retained Retained
Capital Realignment Earnings Earnings Total
R`000 R`000 R`000 R`000 R`000
Balance as at
31 March 2001 16 421 816 17 095 1 343 065 1 781 992
Net loss for the year - - - (88 040) (88 040)
Transfer from
retained earnings - - 1 637 (1 637) -
Exchange rate adjustment - 31 247 - - 31 247
Adjustment arising
on restructuring
at 1 July 1998 - - - 11 744 11 744
Balance as at
31 March 2002 16 453 063 18 732 1 265 132 1 736 943
ABRIDGED CONSOLIDATED BALANCE SHEET
31 March 31 March
2002 2001
Notes R`000 R`000
Assets
Non-current assets 2 448 169 2 249 158
- Investments 2, 3 1 132 605 1 123 439
- Loans 4 1 249 301 1 111 306
- Fixed assets and mineral interests 66 263 14 413
Current assets 5 44 187 69 305
Total assets 2 492 356 2 318 463
Liabilities and shareholders` equity
Current liabilities 6 670 533 528 471
Long-term liabilities - interest bearing 83 555 8 000
Total liabilities 754 088 536 471
Outside shareholders 1 325 -
Shareholders` equity 1 736 943 1 781 992
Total liabilities and equity 2 492 356 2 318 463
Number of ordinary shares in issue
throughout the year 155 465 285 155 465
285
Net asset value per share
- Based on book value of listed investments R11,17 R11,46
- Based on market value of listed investments R14,82 R10,80
NOTES TO THE BALANCE SHEET
31 March 31 March
2002 2001
R`000 R`000
1. Basis of accounting
These consolidated results are prepared in accordance with South African
Statements of Generally Accepted Accounting Practice ("GAAP") and Schedule 4
of the Company`s Act. Other than for the adoption of AC135 during the
current year, the accounting policies are consistent with those used in the
annual financial statements for the year ended 31 March 2001.
2. Investments at carrying value
Listed investments
- associated companies 1 024 121 991 693
- other 24 199 35 722
Unlisted investments
- associated companies (11 626) 113
- other 95 911 95 911
The majority of the group`s investments have been pledged as security for
the liabilities of the company, the holding company and a fellow subsidiary
company.
3. Market value of listed investments
- associated companies 1 568 542 887 623
- other 46 526 36 459
Directors valuation of unlisted investments
- associated companies 1 505 663
- other 95 911 99 595
4. Loans include:
- associated companies 164 385 17 821
- fellow subsidiaries 1 061 586 1 076 311
- holding company 14 262 12 447
The group advanced R44,7 million and R113,8 million to the Sekunjalo
Group and Startrack Communications Africa (Pty) Limited respectively.
Management believe that the potential of these two associated companies are
very promising.
5. Current assets include:
- deposits and cash 19 550 50 949
6. Current liabilities - interest bearing include:
- short-term loans 540 161 416 118
- bank overdraft 50 082 47 997
7. Contingent liabilities
7.1 The group has guaranteed the liabilities of certain third parties to an
amount of R47,9 million.
7.2 The company is obliged to meet any tax liability which may arise in
Invego Limited ("Invego") (previously JCI Limited) as a result of the
restructuring of that company at 30 June 1998. Invego has been assessed for
taxation by the South African Revenue Services ("SARS") at 30 June1998, and
no liability has arisen. However, Invego has now been notified of the
intention of SARS to disregard certain deductions previously allowed. This
could result in a tax liability of R217 million. The directors are of the
opinion that no liability will arise.
7.3 In the latter half of April 2002, Durban Roodepoort Deep Limited served
a summons on the company as a co-defendant, together with CAM claiming
payment from the company of R1 118 888, payment from CAM of R6 462 421 and
jointly and severally from the company and CAM of R24 650 403. The action is
being defended on the basis of legal advice to the effect that claims will
likely be defended successfully.
COMMENTARY
* Notwithstanding the impact of this year`s losses on the balance sheet,
the market value of investments has increased substantially giving, based on
the market values of listed investments, a net asset value of R14,82 per
share.
* At year end, the group`s net current liabilities amounted to R626,4
million.
The directors have for same time evaluated certain proposals which will
simplify the group structure and improve the liquidity of the group.
The proposed merger of CAM and JCI, being the first step, will lead to
dramatic cost savings and an ability to focus on the new JCI Limited`s core
strategy.
In addition, proposed action dealing with the loan from Western Areas
Limited ("Western Areas") will have a further impact both on the magnitude
of the current liabilities and costs associated therewith. This will also
enhance the bankability of the company.
* The company will continue to benefit from improved sentiment in the gold
sector through it`s holding in Western Areas and Randgold Resources Limited
widely acknowledged as being two of the world`s premier gold assets. The
streamlined structure will enable management to focus on its strategy of
developing JCI from being a prime holding company into a specialised finance
house focusing on resources and development.
* In anticipation of the successful merger with CAM referred to above, the
headline earnings for the group decreased from 38,8 cents per share to a
deficit of 73,9 cents per share, principally as a result of an agreement
reached between the company and its holding company whereby no interest for
the year ended 31 March 2002 (2001: R129 million) on a loan of R1 045
million (2001: R1 065 million) to a fellow subsidiary was charged. In the
event that the proposed merger with CAM has not been successfully
implemented by 31 July 2002, interest amounting to R163,9 million will
become payable by the fellow subsidiary.
* Qualified Auditor`s Report
The auditors have expressed their concern about the ability of the group
to continue as a going concern without securing additional financial
support. Based on this, the auditors issued a qualified auditor`s report for
the financial year ended 31 March 2002, subject to the successful
implementation of the initiatives referred to above.
On behalf of the board
R A R Kebble R B Kebble
(Non-Executive Chairman) (Deputy Chairman)
19 June 2002
Head office and registered office
28 Harrison Street, Johannesburg, 2001
(PO Box 11165, Johannesburg, 2000)
Transfer secretaries
Computershare Investor Services Limited
8th Floor, 11 Diagonal Street
Johannesburg, 2001
(PO Box 1053, Johannesburg, 2000)
Investor Relations
George Poole, PO Box 11165, Johannesburg, 2000
Tel: (+2711) 688-5000 Fax: (+2711) 834-9195
email: gpoole@jci.co.za
Date: 19/06/2002 05:45:00 PM Produced by the SENS Department
