| Tue 3 Sep 2002, 0:00 | | Sasfin Holdings Limited |
|
(Incorporated in the Republic of South Africa)
("Sasfin" or "the Group" or "the Company")
Share code: SFN ISIN: ZAE000006565
* Advances up 37,8%
* Net asset value per share up 15,5%
* Headline earnings per share up 8,8%
Audited Group Results for the year ended 30 June 2002
CONSOLIDATED BALANCE SHEET
2002 2001
Audited Audited %
R`000 R`000 Change
ASSETS
Short-term interbank funds 196,224 184,194
Short-term negotiable securities 11,354 11,826
Accounts receivable 121,271 118,884
Advances 778,052 564,535 37,8
Investments 15,820 14,965
Deferred taxation 6,341 -
Property and equipment 45,713 37,494
Total assets 1,174,775 931,898 26,1
LIABILITIES
Interbank funding 89,391 65,001
Deposits 268,823 254,199
Accounts payable 101,807 104,124
Debentures 522,703 354,645 47,4
Deferred taxation 27,649 16,588
Total liabilities 1,010,373 794,557
Minority interest 8,606 7,872
Share capital 237 228
Share premium 16,495 15,013
Distributable reserves 139,064 114,228
Total equity 155,796 129,469
Total liabilities and equity 1,174,775 931,898
Contingencies and commitments 12,674 46,582
Number of shares in issue at end
of the year (`000) 23,723 22,768
Net asset value per share (cents) 657 569 15,5
CONSOLIDATED INCOME STATEMENT
2002 2001
Audited Audited %
R`000 R`000 Change
Interest income 139,270 110,085
Interest expense 85,024 61,772
Net interest income 54,246 48,313
Other income 191,099 138,580
Total income 245,345 186,893 31,3
Provisions for credit losses 11,083 1,567 607,3
Net income 234,262 185,326 26,4
Operating expenses 185,713 151,180
Net income before taxation 48,549 34,146
Taxation 13,014 5,510
Income after taxation 35,535 28,636
Minority interest 1,086 1,460
Earnings attributable to ordinary
shareholders 34,449 27,176 26,8
Continuing operations 34,449 30,339
Discontinued operations - (3,163)
Weighted average number of shares
in issue (`000) 23,323 22,349
Headline earnings per share (cents) 148 136 8,8
Earnings per share (cents) 148 122 21,3
Dividend per share (cents) 63 63
STATEMENT OF CHANGES IN EQUITY
2002 2001
Audited Audited
R`000 R`000
Share capital 237 228
Opening balance 228 215
Shares issued 9 13
Share premium 16,495 15,013
Opening balance 15,013 15,026
Shares issued 1,482 (13)
Distributable reserves 139,064 114,228
Opening balance 114,228 97,221
Change in accounting policy - (8,201)
Restated balance 114,228 89,020
Earnings attributable to ordinary
shareholders 34,449 27,176
Dividend paid (9,613) (1,968)
Total 155,796 129,469
CONSOLIDATED CASH FLOW INFORMATION
2002 2001
Audited Audited
R`000 R`000
Net cash (outflow)/inflow from:
Operating activities (163,339) (22,616)
Investing activities (18,689) (23,297)
Financing activities 169,196 138,481
Net (decrease)/increase in cash
and cash equivalents (12,832) 92,568
Cash and cash equivalents
at beginning of the year 131,019 38,451
Cash and cash equivalents at end of the year 118,187 131,019
SEGMENTAL NET INCOME ANALYSIS
2002 2001
Audited Audited
R`000 R`000
Banking 27,674 22,796
Freight 1,630 2,189
Investment advisory and asset management 5,948 3,145
Other (803) (954)
Total 34,449 27,176
NATURE OF BUSINESS
Sasfin is a bank-controlling company which is now listed under the
"Financials : Speciality and other Finance" sector of the JSE Securities
Exchange South Africa ("the JSE"). The focus of the Group is to provide
a wide range of complementary banking, financial and related services to
its target market of entrepreneurial corporate, commercial and private
clients.
COMMENTARY ON RESULTS
The Group achieved satisfactory results for the year under review
taking into consideration:
* the liquidity crisis affecting small to medium-sized banks, which
necessitated a particularly high level of liquidity,
* the unexpected increase in interest rates following the fall in the
Rand,
* the lack of any meaningful economic growth,
* the continued low JSE turnover which affects the stockbroking and
corporate finance divisions, and
* the significant devaluation of the Rand.
The Group`s securitisation vehicle, Equipment Rentals Securitisation
No. 1 (Pty) Limited ("ERS") (formerly Sasfin Asset Securitisation (Pty)
Limited), has been consolidated in compliance with Accounting Statement
AC 412. Where necessary, comparative figures and the retained income
for prior years have been restated. In December 2001, the regulations
relating to securitisation were changed by the South African Reserve
Bank, with which Sasfin has ensured compliance.
Attributable earnings increased by 26.8% to R34.4 million. The effect
of the ERS consolidation resulted in the elimination of intra-Group
transactions which, together with increased provisions for credit losses
arising, inter alia, from external fraud, negatively affected profits.
This was more than offset by a significant net translation gain
resulting from the depreciation of the Rand.
Despite the poor global economic climate, the Group increased its
assets year-on-year by 26.1% to R1.2 billion (2001 : R0.9 billion), of
which gross advances grew by 38.5% to
R816 million (2001 : R589 million).
Notwithstanding a run on small to medium-sized banks, it is
noteworthy that Sasfin`s deposit base has been particularly sound. Most
of the borrowings are in the form of debentures in ERS and are linked
substantially to the repayment patterns of the debt and thereby
constitute minimal liquidity risk. The relatively small amount that is
borrowed on short term is sourced mainly from clients with long-standing
personal relationships with Sasfin. This has obviated the need to
source or rely on deposits from the wholesale money market or the
broader retail market. In addition, the Group has no exposure to the
micro-lending market, is not involved in any derivative trading and has
continued with its very conservative lending policy.
SHAREHOLDERS` FUNDS AND KEY RATIOS
Return on average equity is 24.2% (2001 : 23.1%) and return on
average total assets 3.3% (2001 : 3.5%). The statutory risk-weighted
capital adequacy ratio of Sasfin Bank Limited is 19.3% (2001 : 22.8%),
which is well above the prescribed minimum of 10%.
The cost to revenue ratio is 75.7% (2001 : 80.9%).
General provisions for bad and doubtful advances remain conservative
at 1.8% (2001 : 2.2%) of total Group advances.
PROSPECTS
Factors that point to an improvement in earnings are:
* an expected reduction in interest rates,
* a reduction in competition arising from the exodus of numerous
small to medium-sized banks, and
* an exercise in reducing costs and improving efficiencies in which
Sasfin is currently engaged.
Against this, we are concerned that a recession in first world
markets could impact negatively on emerging markets, including South
Africa.
On balance we remain cautiously optimistic.
DISCLOSURES
These results have been audited by Fisher Hoffman PKF (JHB) Inc and
KPMG Inc. Their unqualified audit opinion is available for inspection at
the registered office of the Company.
The results were prepared in accordance with South African Statements
of Generally Accepted Accounting Practices and have been consistently
applied, except for the consolidation of ERS in terms of Accounting
Statement AC 412.
CAPITALISATION SHARE AWARD AND CASH DIVIDEND OPTION
The directors have resolved to award capitalisation shares to
ordinary shareholders registered in the books of the Company at the
close of business on Friday, 27 September 2002
("the record date").
Shareholders are entitled and will be given the opportunity to
decline the award of capitalisation shares in respect of all or part of
their shareholding and instead may elect to receive a cash dividend of
63 cents per share ("the election") (2001: 63 cents per share).
The rounded number of capitalisation shares to which a shareholder
will be entitled in terms of the capitalisation award will be determined
by multiplying the number of ordinary shares held by the shareholder by
a ratio. This ratio will be arrived at by multiplying 63 cents per share
by 1,06 and dividing the result by the weighted average trading price of
the ordinary shares of the Company on the JSE for the three days ending
Wednesday, 11 September 2002. This issue price will be announced on SENS
on Thursday, 12 September 2002 and in the press on Friday, 13 September
2002.
The last day to trade the Company`s shares on the JSE to ensure a
purchaser appears as an owner on the record date will be Thursday, 19
September 2002.
Documentation, including a form of election dealing with the share
award and election, will be posted to certificated shareholders on or
about Thursday, 5 September 2002. Shareholders who have not yet
dematerialised their shares ("certificated shareholders") and who wish
to elect to receive the cash dividend should complete the form of
election and deliver/post it to the Transfer Secretaries so that it is
received by them by no later than 12:00 on Friday,
27 September 2002.
Shareholders who have dematerialised their share certificates are
required to notify their Central Securities Depository Participants
("CSDP") or broker, and advise them of their election in the manner and
time stipulated in the agreement governing the relationship between the
shareholder and his/her CSDP or broker.
Application will be made to the JSE for the capitalisation shares to
be listed with effect from the commencement of business on Friday, 20
September 2002 when the price of the Company`s securities will be quoted
"ex" the capitalisation award. It is expected that dividend cheques and
share certificates (where required) in respect of new ordinary shares
will be posted to certificated shareholders on or about Monday, 30
September 2002. Dematerialised shareholders will have their CSDP or
broker accounts credited/updated on Monday, 30 September 2002.
The uncertificated securities in terms of this capitalisation award
can be traded from Friday, 20 September 2002.
Share certificates may not be dematerialised or rematerialised between
Friday, 20 September 2002 and Friday, 27 September 2002, both days
inclusive.
For and on behalf of the Board
MB Glatt RDEB Sassoon
Chairman Managing Director
2 September 2002
PRESIDENT: SE Sassoon*
CHAIRMAN: MB Glatt (Non-Executive)
EXECUTIVE DIRECTORS: RDEB Sassoon* (Managing Director), AW Greenstein,
JJ van der Watt
NON-EXECUTIVE DIRECTORS: CN Axten, ETB Blight, D Paizes, ML Smith
COMPANY SECRETARY: SK Erasmus
* British
REGISTERED OFFICE: Sasfin Place, 13-15 Scott Street, Waverley, 2090.
Tel: +27 11 809 7500, Fax: +27 11 887 2489/6167 Website:
www.sasfin.com
TRANSFER SECRETARIES: Computershare Investor Services Limited,
11 Diagonal Street Johannesburg, 2001. PO Box 1053, Johannesburg, 2000.
COMPANY REGISTRATION NUMBER: 1987/002097/06
Date: 03/09/2002 01:35:00 PM Produced by the JSE SENS Department
