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SBV SVN
SBV
SBV/SVN - Sabvest Limited - Unaudited interim results for the six months ended
30 June 2009 and cash dividend declaration
Sabvest Limited
Registration number 1987/003753/06
ISIN: ZAE000006417 - ordinary shares
ISIN: ZAE000012043 - "N" ordinary shares
Share code: SBV - ordinary shares
Share code: SVN - "N" ordinary shares
("Sabvest" or "the group")
www.sabvest.com
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2009 AND CASH
DIVIDEND DECLARATION
Consolidated Statement of Financial Position
at 30 June 2009
Unaudited Unaudited Audited
30 June 2009 30 June 2008 31 Dec 2008
R`000 R`000 R`000
Non-current assets 353 033 326 491 365 160
Property, plant and equipment 1 216 1 318 1 380
Deferred tax asset 1 388 2 036 1 897
Share trust receivables 6 423 3 854 4 134
Investment holdings 344 006 319 283 357 749
Associates* 288 391 255 392 279 139
Long-term investments 55 615 63 891 78 610
Current assets 11 537 32 311 18 614
Finance advances and
Receivables 11 462 17 039 18 518
Cash balances 75 15 272 96
Total assets 364 570 358 802 383 774
Ordinary shareholders`
Equity 336 489 343 388 350 636
Non-current liability 2 531 2 685 3 486
Deferred tax liability 2 531 2 685 3 486
Current liabilities 25 550 12 729 29 652
Interest-bearing debt 21 960 5 975 24 100
Accounts payable 3 590 6 754 5 552
Total equity and liabilities 364 570 358 802 383 774
Net asset value per share
- cents 727 742 759
Net tangible asset value
per share - cents 720 735 752
Net asset value per share
with listed investments in
associates at market value
- cents 749 816 796
Net asset value per share
with investments in associates
at directors` valuation
(intrinsic value) - cents** 1 010 1 078 1 016
Number of shares in issue less
held in treasury - 000`s 46 276 46 276 46 180
* Includes goodwill of R3,4 million (30 June 2008: R3,4 million)
** Calculated after deducting CGT payable should investments be sold at
directors` valuation.
Consolidated Statement of Comprehensive Income
for the six months ended 30 June 2009
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
30 June 2009 30 June 2008 31 Dec 2008
R`000 R`000 R`000
Gross income from operations
and investments 19 550 18 038 59 216
Dividends received 6 961 10 327 38 149
Interest received 797 1 734 3 938
Income on financial
instruments and shares 2 022 - -
Fees and sundry income 860 870 2 781
Fair value adjustment to
investments (10 476) (13 664) (16 939)
Equity accounted retained
income of associates 19 386 18 771 31 287
Share of net income of
Associates 25 087 27 983 67 056
Less: Dividends received (5 701) (9 212) (35 769)
Impairments (84) 174 (45)
Interest paid 1 834 626 2 335
Net income before expenses and
exceptional items 17 800 17 238 56 926
Less: Expenditure 7 836 7 827 15 869
Operating costs 7 665 7 636 15 473
Depreciation 171 191 396
Exceptional items -
losses/(gains) 1 028 2 079 33 509
Net income before taxation 8 936 7 332 7 548
Taxation - deferred (446) (1 451) (512)
Net income for the period
attributable to equity
shareholders 9 382 8 783 8 060
Translation of foreign
subsidiary/associates (833) 1 622 (16)
Total comprehensive income
attributable to equity
shareholders 8 549 10 405 8 044
Earnings per share - cents 20,3 19,0 17,4
Dividends per share - cents
(proposed after interim/
year-end) - cents 3,0 3,0 14,0
Weighted average number of
shares in issue - 000`s 46 257 46 276 46 260
Headline earnings per share
- cents*1 22,5 23,5 89,9
Reconciliation of
headline earnings
Net income for the period 9 382 8 783 8 060
Exceptional (gains)/losses
- associates 828 - -
Losses/costs arising from
former finance operations 200 2 079 33 509
Profit on sale of property,
plant and equipment - - 1
Headline earnings for the
period 10 410 10 862 41 570
*1 There are no diluting instruments
Consolidated Condensed Statement of Cash Flows
for the six months ended 30 June 2009
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
30 June 2009 30 June 2008 31 Dec 2008
R`000 R`000 R`000
Cash (utilised in)/
generated by
operating activities (2 678) 3 451 21 367
Cash generated by/
(utilised in)
investing activities 9 887 8 387 (40 740)
Cash effects of
financing activities - - (701)
Cash utilised for the payment
of dividends (5 090) (5 090) (6 479)
Change in cash and cash
equivalents 2 119 6 748 (26 553)
Cash balances, less
interest-bearing debt,
at beginning of period (24 004) 2 549 2 549
Cash balances,
less interest-bearing
debt, at end of period (21 885) 9 297 (24 004)
Consolidated Statement of Changes in Equity
for the six months ended 30 June 2009
Non-
Share Share distributable
capital premium reserve
R`000 R`000 R`000
Balance as at
1 January 2008 867 50 729 196 897
Total comprehensive
income for the year - - (16)
Share-based
payment charge - - 163
Attributable income
of associates - - 31 287
Movement in translation
and other reserves
of associates - - 24 729
Shares held in share trust (5) (696) -
Unclaimed dividends
- written back - - -
Dividends paid - - -
Balance as at
31 December 2008 862 50 033 253 060
Total comprehensive
income for the period - - (833)
Share-based payment charge - - 163
Attributable income of
associates - - 19 386
Movement in translation
and other reserves
of associates - - (18 470)
Shares held in share
trust - written back 5 696 -
Dividends paid - - -
Balance as at
30 June 2009 867 50 729 253 306
Distributable
reserve Total
R`000 R`000
Balance as at
1 January 2008 76 293 324 786
Total comprehensive income
for the year 8 060 8 044
Share-based payment charge - 163
Attributable income of
associates (31 287) -
Movement in translation and
other reserves of associates - 24 729
Shares held in share trust - (701)
Unclaimed dividends - written back 94 94
Dividends paid (6 479) (6 479)
Balance as at
31 December 2008 46 681 350 636
Total comprehensive income for
the period 9 382 8 549
Share-based payment charge - 163
Attributable income of associates (19 386) -
Movement in translation and other
reserves of associates - (18 470)
Shares held in share trust
- written back - 701
Dividends paid (5 090) (5 090)
Balance as at 30 June 2009 31 587 336 489
Contingent liabilities
The group`s contingent liabilities at 30 June 2009 are as follows:
1. Put options given by the company to holders of S A Bias junior loans which
have due dates in 2010: R1,2 million (31 December 2008: R5,2 million)
2. The group has rights and obligations in terms of shareholder or purchase and
sale agreements relating to its present or former investments.
3. A group company has entered into lease agreements for the premises that it
occupies. The amounts due are as follows:
Year 1 R1,0 million
Year 2 R1,1 million
Year 3+ R1,2 million
Investment commitments
Authorised: R19 million.
Investment Profile
at 30 June 2009
Voting
Listed/ Number of interest
Unlisted shares %
Investments in associates
Flowmax Holdings
Limited (BVI/UK) U 40,0
Korbitec Holdings
(Pty) Limited U 17,1
Ridge Empowerment
Capital (Pty)
Limited U 45,0
SA Bias Industries
(Pty) Limited U 48,5
Sunspray Food
Ingredients
(Pty) Limited U 47,1
Set Point Group
Limited L 80 715 000 23,5
Long-term investments
Datatec Limited L 700 000
Massmart Holdings Limited L 300 000
Metrofile Holdings Limited L 21 400 000
Primedia Holdings 1 Limited U
Economic Carrying Directors`
interest value value
% R`000 R`000
Investments in associates
Flowmax Holdings
Limited (BVI/UK) 40,0 33 935
Korbitec Holdings
(Pty) Limited 17,1 7 524
Ridge Empowerment
Capital (Pty)
Limited 45,0 -
SA Bias Industries
(Pty) Limited 57,3 179 563
Sunspray Food
Ingredients
(Pty) Limited 47,1 16 831
237 853 395 756
Set Point Group
Limited 23,5 50 538 60 536
288 391 456 292
Long-term investments
Datatec Limited 12 355 12 355
Massmart Holdings Limited 24 000 24 000
Metrofile Holdings Limited 19 260 19 260
Primedia Holdings 1 Limited - -
55 615 55 615
Total investments 344 006 511 907
COMMENTARY
Profile
Sabvest is an investment and finance group which has been listed since 1988. Its
ordinary and "N" ordinary shares are quoted in the Financials - Equity
Investment Instruments sector of the JSE Limited.
Sabvest has significant minority or joint controlling interests in six groups,
which are accounted for as associates, and a long-term portfolio of four other
investments which are accounted for on a fair value basis.
In addition, Sabvest maintains finance advances and debt instrument portfolios
and undertakes other fee and profit earning activities.
Financial Results
Sabvest`s results for the six-month period were in line with expectations.
Headline earnings per share dropped by 4% to 22,5 cents per share. The group`s
share of net income of associates fell by 10% to R25,1 million which was better
than anticipated. However, the results were impacted by a negative fair value
adjustment of R10,5 million of which R5,8 million was a final impairment charge
against an unlisted private equity investment.
Net asset value per share with investments at directors` valuation (intrinsic
value) decreased slightly to 1 010 cents per share.
Shareholders` funds with investments at intrinsic value amounted to R467
million.
Borrowings reduced slightly relative to the financial year-end and are expected
to reduce further in the second half of the year due to the receipt of a special
dividend of R15 million from an associate as explained in the year-end results
announcement.
Changes in Investment Holdings
During the period Sabvest increased its investment in Set Point Group Limited by
12 715 000 shares to 80 715 000 shares and also funded the share trust to
acquire some Sabvest shares. In order to fund these transactions Sabvest
disposed of 200 000 Massmart shares thereby reducing its investment in Massmart
to 300 000 shares.
One of the group`s associates, Ridge Empowerment Capital (Pty) Limited, disposed
of West Central Capital (Pty) Limited to Nimble Capital (Pty) Limited and
acquired a 15% interest in Nimble. Nimble is the management company of the
Nimble Credit Opportunities Fund which invests in distressed debt portfolios.
Nimble Capital also owns a call centre operation.
Dividend Policy
Dividends are determined relative to Sabvest`s own expected recurring cash flows
and relative to receipts from investments that are not earmarked for new
projects.
It is the group`s policy to consider dividends twice annually. The dividends for
the interim period have been maintained at 3 cents per share.
Related Parties
Related party transactions exist between subsidiaries and the holding company,
fellow subsidiaries and associated companies, and comprise fees, dividends and
interest.
Transactions with directors relate to fees and monies lent to the group by
individuals and companies controlled by the directors.
Accounting Policies
The unaudited condensed interim financial statements have been prepared in terms
of International Financial Reporting Standards (IFRS) and comply with IAS34 -
Interim Financial Reporting. The accounting policies used are consistent with
those applied to the audited financial statements for the year ended 31 December
2008 except for the Adoption of Annual Improvements to IFRS`s.
Prospects
The businesses operated by the group`s associates and by the group`s investee
companies continue to have sound medium-term growth prospects. However, the
current economic downturn will continue to affect the short-term profitability
of some of the businesses and the group`s results will also be impacted by
movements in fair values.
At this stage it is not possible to project with any accuracy the likely results
for the year or whether dividends will be maintained.
For and on behalf of the Board
Haroon Habib Christopher Seabrooke Raymond Pleaner
Chairman Chief Executive CFO
31 July 2009
Sandton
Cash dividend declaration
Notice is hereby given that a dividend of 3 cents (2008: 3 cents) per ordinary
share and "N" ordinary share for the six months ended 30 June 2009 has been
declared, payable to shareholders in accordance with the undermentioned
timetable:
Last date to trade "CUM" dividend Friday, 21 August 2009
Trading "EX" dividend commences Monday, 24 August 2009
Record date Friday, 28 August 2009
Dividend payment date Monday, 31 August 2009
No dematerialisation or rematerialisation of share certificates will be allowed
for the period from Monday, 24 August 2009 to Friday, 28 August 2009, both days
inclusive.
Registered address:
4 Commerce Square, 39 Rivonia Road, Sandhurst, Sandton 2196
Communications:
Postal address: PO Box 78677, Sandton 2146, Republic of South Africa
Communications:
Telephone: (011) 268 2400
Fax: (011) 268 2422
e-mail: ho@sabvest.com
Transfer secretaries:
Computershare Investor Services (Pty) Limited, 70 Marshall Street, Marshalltown
(PO Box 61051, Marshalltown 2107)
Directors:
H Habib# (Chairman), P Coutts-Trotter (Deputy Chairman), CS Seabrooke* (Chief
Executive), CP Coutts-Trotter*, NSH Hughes#, DNM Mokhobo#, GE Nel, R Pleaner*,
BJT Shongwe#
*Executive #Independent
www.sabvest.com
Date: 30/07/2009 17:10:02 Produced by the JSE SENS Department.
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