| Tue 1 Oct 2002, 11:57 | | VIKING INVESTMENTS & ASSET MANAGEMENT LTD - UNAUDI |
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VIKING INVESTMENTS & ASSET MANAGEMENT LTD
Incorporated in the Republic of South Africa
Registration Number 98/04440/06
Share code: VKG ISIN: ZAE000015871"Viking" or "the company" UN-AUDITED INTERIM
REPORT for the six months ended 30 June 2002
HIGHLIGHTSz
* Revenue up to R96mz
* Acquisition of USA company, Viking Platinum LLC, generating hard currency.z
* Agreement finalized to acquire 51% of Metech International with significant
historic revenues.
* Retained profits of R21m
FINANCIAL PERFORMANCE
Viking`s first offshore investment, Viking Platinum LLC (Viplats) was brought
into full production during the period under review. Viplats` profit is purely
volume related and various gearing alternatives are being explored so as to
increase production significantly. Viking has actively wound down its venture
capital business is South Africa. Remaining investments are to be housed in a
separate subsidiary at a current value of R27m. Viking is continuing with
efforts to dispose of these projects at favourable prices. ISSUE OF SHARES
During the period under review the company issued 10 million additional ordinary
shares, which raised R10.3m. This money was invested in the overseas subsidiary.
REVIEW OF OPERATIONS
Viking Platinum LLC, our USA 75% owned subsidiary, is continuing to make its
mark in the auto-catalyst recycling market. Further overseas deals are being
pursued that will improve volume throughput to utilize the capacity available in
our plant. The business being conducted by Viplats involves the collecting and
processing of catalytic converters to reclaim platinum group metals (including
platinum, palladium and rhodium ("PGMs")).
EVENTS SUBSEQUENT TO REPORTING DATE On 18 September 2002 Viking announced that
the Metech International Inc. ("Metech") acquisition had been concluded subject
to shareholder and regulatory approval. The effective date of the transaction
will be 29 August 2002. Selected assets were bought from Trelleborg AB for
US12.6m. Viking will own 51% of the new company and the management group 49%.
This acquisition was funded mainly through offshore loans and the sale of
certain assets to a third party and it is intended that certain of these loans
will be converted into shares in Viking at an issue price of R2 per share once
the necessary regulatory and shareholder approvals have been obtained. Metech
has approximately 20% share of the US recycle market.
PROSPECTS Viking is committed to deliver value to its shareholders through the
acquisition of offshore businesses with good earnings and long-term continuous
growth prospects. We are particularly excited at the prospects arising from the
Metech deal as the Metech business had an audited turnover of US$97m in 2001.Now
that the Metech transaction has been concluded, Viking intends to set up a
separate metals trading division. With the considerable amount of precious
metals that are now produced out of Viking`s two USA operations it is logical
that Viking use its derivative skills to hedge and enhance this metal using
sophisticated mechanisms for riskless trades. Various trading banks are
currently taking the lucrative margins in this business.
It is planned that the trading business will be fully operational in the first
quarter of 2003. This will significantly add to the profits of the recycling
business
On behalf of the board
LRC Coogan LE Birkholtz
CEO Secretary
30 September 2002
Directors
LRC Coogan, KO Fordwor* (Ghanaian), RA Legh*, D C Mostert, M Walsh
* Non-executive director
Registered office and business address
Block C, Peter Place Park, 54 Peter Place, Bryanston, 2021
Transfer Secretaries:
Computershare Services Ltd, 4th Floor, Edura, 41 Fox Street, Johannesburg, 2001
Telephone: (011) 463 8872
Income Statement
Unaudited Unaudited
Six months ended Six months ended
30 June 2002 30 June 2001
R000s R000s
Revenue 95 626 7 376
Operating profit before depreciation
and interest 8 715 2 560
Depreciation (703) (121)
Net interest (paid) received (1 641) 5
Profit before taxation 6 371 2 444
Taxation 1 305 733
Profit after taxation 5 066 1 711
Headline Earnings per share (cents) 4.47 1.71
Earnings per share (cents) 4.47 1.71
Number of shares in issue 115 000 000 100 000 000
Balance Sheet
Unaudited Unaudited
30 June 2002 30 June 2001
R000s R000s
ASSETS
Non-current assets
Property, equipment & goodwill 15 403 373
Current assets
Available for sale - financial assets 27 389 30 913
Inventory, accounts receivable
and prepayments 58 541 587
Cash resources 235 (1 203)
86 165 30 297
Total assets 101 568 30 670
EQUITY AND LIABILITIES
Capital and reserves
Ordinary share capital 2 300 2 000
Share premium 15 225
Distributable reserves 21 459 22 860
38 984 24 860
Non-current liabilities
Non-Interest bearing loans
Deferred tax 2 563
2 374 4 170
4 937 4 170
Minority shareholders interest 3 041
Current liabilities
Accounts and other payables 29 105 1 733
Short-term loans 25 500
Taxation (93)
54 605 1 640
Total equity and liabilities 101 568 30 670
Cash Flow Statement
Unaudited Unaudited
2002 2001
R000s R000s
Cash flows from operating activities* (21 331) (3 123)
Cash flows from investing activities (1 290) 1 210
Cash flows from financing activities 13 669 -
Net (decrease) increase in cash
and cash equivalents (8 952) (1 913)
Opening cash and cash equivalents 9 187 710
Closing cash and cash equivalents 235 (1 203)
*The negative cash flow is from the prepayment and purchase of catalytic
converter inventory which, being fully hedged negates the exposure
Statement of changes in equity
Share Share Accumulated Total
Capital Premium Profits
R000s R000s R000s R000s
Balance at 1 Jan 2002 2 100 5 075 16 393 23 568
Profit for the period 2 861 2 861
Shares issued 200 10 150 10 350
Balance at 30 Jun 2002 2 300 15 225 19 254 36 779
Balance at 1 Jan 2001 2 000 21 149 23 149
Profit for the period 1 711 1 711
Balance at 30 Jun 2001 2 000 22 860 24 860
The interim financial statements have been compiled in accordance with South
African statements of Generally Accepted Accounting Practice and schedule 4 of
the South African Companies Act. The same accounting policies and method of
computation have been used in the preparation of these interim financial
statements as were used in the preparation of the audited financial statements
to 31 December 2001.
These interim financial statements are unaudited.
Date: 01/10/2002 07:05:00 AM Produced by the JSE SENS Department
