| Mon 18 Nov 2002, 17:22 | | Tradek - Reviewed Interim Results For The Six Mont |
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Tradek - Reviewed interim results for the six months ended 30 September 2002
TRADEK HOLDINGS LIMITED
(Registration number 1964/001296/06)
JSE Share code TDK ISIN ZAE000018891
("Tradek" or "the company")
Reviewed interim results for the six months ended 30 September 2002
Highlights
* Revenue for the six months down 6,7% to R15,6 million
* Headline loss for the six months of R285 000
* Quiet JSE Securities Exchange South Africa ("JSE") trading levels continue
* Focus remains on the provision of stockbroking and related financial
services to private and corporate clients
Consolidated income statement
Reviewed Unaudited Audited
six months to six months to year to
30 Sept 30 Sept 31 March
2002 2001 2002
R`000 R`000 R`000
Revenue 15 609 16 725 31 801
Operating income/(loss) before
depreciation, goodwill amortisation,
Share Trust revaluation, abnormal
items and finance cost 60 276 (900)
Depreciation (698) (758) (1 617)
Goodwill amortised (139) - (1 209)
Share Trust revaluation (152) - (234)
Abnormal items - - (2 950)
Operating loss before finance
costs and investment income (929) (482) (6 910)
Finance costs (787) (327) (738)
Operating loss before
investment income (1 716) (809) (7 648)
Investment income 1 292 910 2 089
(Loss)/Income before taxation (424) 101 (5 559)
Taxation - - -
(Loss)/Income after taxation (424) 101 (5 559)
Ordinary shares in issue (`000)
End of period 184 773 184 773 184 773
Normal (loss)/income per share (cents) (0,23) 0,05 (3,01)
Headline (loss)/income per share (cents) (0,15) 0,05 (2,35)
(Loss)/Income after taxation (`000) (424) 101 (5 559)
Adjusted for:
Goodwill 139 - 1 209
Headline (loss)/income after taxation (285) 101 (4 350)
Abridged consolidated cash flow statement
Reviewed Unaudited Audited
six months to six months to year to
30 Sept 30 Sept 31 March
2002 2001 2002
R`000 R`000 R`000
Cash flow from operating activities (682) 14 9 098
Cash flow from investing activities (39) (1 370) (1 782)
Cash flow from financing activities - - -
Net increase in cash and cash equivalents (721) (1 356) 7 316
Cash and cash equivalents
at beginning of the year 16 267 8 951 8 951
Cash and cash equivalents at
end of the year 15 546 7 595 16 267
Represented on the balance sheet as:
Cash and cash equivalents 74 301 22 910 5 671
Bank overdraft (58 755) (15 315) (9 404)
15 546 7 595 16 267
Supplementary information
Reviewed Unaudited Audited
six months to six months to year to
30 Sept 30 Sept 31 March
2002 2001 2002
Net asset value per share (cents) 12,88 16,17 13,11
Capital expenditure - additions (R`000) 37 959 1 520
Abnormal items: (R`000) - - 2 950
Staff restructuring expenses - - 2 012
Corporate transaction expenses incurred - - 938
Consolidated balance sheet
Reviewed Unaudited Audited
six months to six months to year to
30 Sept 30 Sept 31 March
2002 2001 2002
R`000 R`000 R`000
Assets
Non-current assets 5 243 7 083 6 195
Fixed assets 1 160 2 170 1 824
Investments 1 698 2 215 1 698
Goodwill 70 - 209
Share Trust loan 644 1 027 793
Deferred taxation 1 671 1 671 1 671
Current assets 252 871 88 295 261 544
Amounts receivable relating
to stockbroking activities 177 512 61 327 232 796
Taxation - 14 -
Other receivables 1 058 4 044 3 077
Cash and cash equivalents 74 301 22 910 25 671
Total assets 258 114 95 378 267 739
Equity and liabilities
Equity and reserves 23 793 29 877 24 217
Current liabilities 234 321 65 501 243 522
Amounts payable relating to
stockbroking activities 170 826 49 048 227 214
Other payables 4 740 1 138 6 904
Bank overdraft 58 755 15 315 9 404
Total equity and liabilities 258 114 95 378 267 739
Consolidated statement of changes
in shareholders` equity
Share Share Retained
R`000 capital premium income Total
Balance at 1 April 2001 1 848 20 739 7 189 29 776
Net loss for the year - - (5 559) (5 559)
Balance at 1 April 2002 1 848 20 739 1 630 24 217
Net loss for the six months - - (424) (424)
Balance at 30 September 2002 1 848 20 739 1 206 23 793
Notes:
1. The interim financial results have been prepared in accordance with South
African Statements of Generally Accepted Accounting Practice.
2. The accounting policies used in the preparation of the interim financial
results are consistent with those applied in the audited annual financial
statements for the year ended 31 March 2002.
3. The interim financial results have been reviewed by Deloitte & Touch, and
their review opinion is available for inspection at the company`s registered
office.
Operating review
Trading conditions during the six months to 30 September 2002 were depressed,
with low levels of private client trading activity. Global market turmoil has
driven retail investors out of markets around the world. In South Africa the
trend has been exacerbated by the onset of STRATE (ruling out intra-week
jobbing), and the general under- performance of mid-caps and growth stocks.
Despite vigorous reductions in staff head count and other cost containment
programmes, increases in JSE and STRATE-related settlement charges have also
undermined our profitability.
Operating income before depreciation, goodwill amortisation, abnormal items
and finance costs was R60 000. Depreciation charges of R698 000 were incurred
and a loan to the employee Share Trust was written-down by R152 000 as a result
of the decline in the share price of Tradek. Goodwill of R139 000 was written-
off.
Finance charges of R787 000 were incurred in the course of operating our
stockbroking settlement activities. Investment income of R1,292 million derives
primarily from interest earned on company cash reserves. The net result of these
items was a headline earnings loss of R285 000 for the period. The company
remains in a stable position with a net asset value of R23,8 million, equal to
12,88 cents per share.
Prospects
Market conditions going forward are expected to remain subdued. The board is
considering steps to reorganise business operations so that profitability can be
restored.
David MacGillivray Paul Theron
Chairman Chief Executive Officer
Directors: David MacGillivray*, Kevin Davie*, John Martindale*,
Marius Meyer*, Leonard Bruhns*, Paul Theron (CEO), John Balderson,
John Rollason*. *non-executive
19 November 2002
TRADEK HOLDINGS LIMITED
(Registration number 1964/001296/06)
JSE Share code TDK ISIN ZAE000018891
("Tradek" or "the company")
www.tradek.com
5th Floor, Stock Exchange Building, 17 Diagonal Street, Johannesburg
Telephone: (011) 370-1900
Date: 18/11/2002 04:47:00 PM Produced by the JSE SENS Department
