| Mon 15 Jul 2002, 0:00 | | Samrand Development Holdings Limited: Preliminary |
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SAMRAND DEVELOPMENT HOLDINGS LIMITED: PRELIMINARY AUDITED RESULTS
Samrand Development Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1971/003132/06)
JSE Share code SMR ISIN ZAE000010419
("the group")
Preliminary audited results for the year ended 31 March 2002
The consolidated audited results of Samrand and its subsidiaries for the year
ended 31 March 2002 are set out below:
31/03/2002 31/03/2001
(audited) (audited)
R`000 R`000
BALANCE SHEET
ASSETS
Non-current assets 198 210 67 899
Property, plant and equipment 138 533 892
Loan to Town Council 59 677 51 507
Investment in associate company - 15 500
Current assets 209 323 280 118
Total assets 407 533 348 017
EQUITY AND LIABILITIES
Share capital and reserves 171 584 170 504
Non-current liabilities 109 554 161 280
Current liabilities 126 395 16 233
Total equity and liabilities 407 533 348 017
Net asset value per share (cents) 126,1 125,3
Net tangible asset value per share (cents) 126,1 125,3
ABRIDGED STATEMENT OF CHANGES IN EQUITY
Equity beginning of year 170 504 156 030
Net profit for the year 1 080 14 474
Equity end of year 171 584 170 504
INCOME STATEMENT
Gross revenue 51 866 18 020
Land sales 17 861 14 482
Rental income 34 005 3 538
Profit from operations 18 175 7 178
Net financing expense (18 527) (6 784)
Profit on sale of joint venture - 14 080
Profit on sale of investment property 1 432 -
Profit before taxation 1 080 14 474
Taxation - -
Net profit for the year 1 080 14 474
Average number of shares in issue (`000) 1 361 1 361
Earnings per share (cents) 0,8 10,6
Headline earnings per share (cents) 0,8 10,6
CASH FLOW STATEMENT
Operating activities 170 208 (75 923)
Investing activities (132 638) 50 312
Financing activities (51 726) 15 648
Net cash generated/(utilised) (14 156) (9 963)
Cash and cash equivalents
beginning of year 1 250 11 213
Cash and cash equivalents end of year (12 906) 1 250
COMMENTARY
During the financial year ended 31 March 2002, the group completed the
acquisition of the remaining 50% interests in Samstocks (Pty) Limited and its
respective subsidiaries ["Samstocks"] on 16 November 2001 for a total cash
consideration of R2,0 million.
This acquisition comprises a category 3 transaction as defined in the Listings
Requirements of the JSE Securities Exchange South Africa. Accordingly, a full
announcement in accordance with the Listings Requirements will be made on or
about 15 July 2002.
Samstocks, formerly a 50% associate, is an investment vehicle primarily
holding several properties, for medium and long-term leases, strategically
located in Pretoria, Cape Town, Durban, Port Elizabeth and Sun City. The
property portfolio consisting mainly of retail and office premises, currently
commands an average gross yield of 24,5%, on a total net lettable area of 50 562
square metres, valued conservatively at R138,5 million.
The results of Samstocks, for the 11 months ended 31 March 2002, were
consolidated for the first time into the group`s results, reflecting a
significant increase in total gross revenue to R51,9 million from
R18,0 million previously.
Sales of land for development at the Samrand Industrial Park in Centurion have
been encouraging despite the erratic state of the local economy. Land sales of
R17,86 million were achieved during the year under review reflecting an increase
of 23% over the previous corresponding period.
Higher net financing charges of R18,52 million were mainly the result of
absorbing Samstock`s entire banking facilities of R105,5 million and additional
advances obtained from major shareholders.
The group recorded a net profit of R1,08 million representing an equal net
earnings and headline earnings per share of 0,8 cent [net profit for the year
divided by the average number of shares in issue]. Net tangible assets remain
flat at 126,1 cents per share.
It is pleasing to record that the entire loan facility amounting to R33,3
million owing to ABSA Bank was fully redeemed during the year, which fully
discharged and un-encumbered land of freehold title deeds worth R200,0 million
to the group.
PROSPECTS
The Board is very committed to focus on consolidating its business operations
and will continue to aggressively market its various activities. The group`s
balance sheet shall be further improved by the subsequent disposal of non-core
property holdings to reduce debts. Recently, a total of R38,0 million was
successfully negotiated, for cash considerations which will positively increase
cash in-flows for the current financial period.
The take-up rate of vacant office space of the remaining properties has been
encouraging whilst efforts to increase operational efficiencies has shown
satisfactory results with more management functions being delegated through
outsourcing to third parties which effectively reduces costs.
Negotiations are ongoing and at an advanced stage with a leading property
developer for a possible joint development of the remaining unsold industrial
land at Centurion. It is expected that these negotiations will be completed
before the end of 2002.
The layout plan of the group`s total land of 410 hectares is currently being
reviewed. This is mainly to increase its future value and attract sales
potential at affordable prices. The initial input from a recent market research,
has prompted the Board to seriously consider the need towards a more integrated
approach of commercial, industrial and residential plans to be enhanced with the
inclusion of other support services such as a private hospital, private college,
international school, hypermarket, an international trade centre, multi-service
centre, and other related activities.
A more comprehensive development plan in the future shall include the
conversion of approximately 100 hectares of unproclaimed land for residential
purposes and commencement of this phase is expected within the next 18 months.
Despite operating in an economic environment of various uncertainties
throughout the world and specifically unpredictable circumstances surrounding
the local front, the Board is still optimistic of the group`s future over the
longer term.
DIVIDENDS
No dividend has been declared or recommended for the financial year ended 31
March 2002.
ACCOUNTING POLICIES
The results comply with all the Statements of Generally Accepted Accounting
Practices and are consistent with the group`s policies.
AUDIT OPINION
These results have been audited by the group`s auditors Meagher Moynihan, who
have issued an unqualified audit opinion. The audit opinion is available for
inspection at the registered office of this group.
For and on behalf of the Board
DATIN M V SAMSUDIN N B EGAN
Executive Director Director/Company Secretary
12 July 2002
Directors:
Dato` A H Samsudin* (Chairman), Datin M V Samsudin, N B Egan
*Malaysian
Company Secretary:
N B Egan
Registered Office:
Second Floor, SMG House, SMG Corporation,
108 Johan Avenue, Corner Katherine Street,
Sandton, 2196
Transfer Secretaries:
Computershare Investor Services Limited,
Edura House, 41 Fox Street,
Johannesburg, 2001
Sponsor:
Sasfin Bank Limited, Sasfin Place,
13 - 15 Scott Street, Waverley, 2090
Date: 15/07/2002 07:46:36 AM Produced by the JSE SENS Department
