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Trematon Capital Investments Ltd - Reviewed Results For The Year Ended 31 August
Release Date: 26/11/2002 07:45:14 Code(s): TMT
Trematon Capital Investments Ltd - Reviewed results for the year ended 31 August
2002 and a cautionary announcement
Trematon Capital Investments Ltd
(Incorporated in the Republic of South Africa)
(Registration number 1997/008691/06)
Reviewed results for the year ended 31 August 2002
and a cautionary announcement
Reviewed Audited
2002 2001
GROUP BALANCE SHEET R`000 R`000
ASSETS
Non-current assets 26 158 107 062
Property, plant and equipment 586 801
Investments 25 572 106 261
Current assets 1 158 8 403
Accounts receivable 616 329
Proceeds on sale of investment - 4 800
Taxation 178 174
Cash and short-term loans 364 3 100
Total assets 27 316 115 465
EQUITY AND LIABILITIES
Ordinary shareholders` interests 23 276 93 399
Non-current liabilities
Convertible debentures - 13 562
Current liabilities 4 040 8 504
Accounts payable 595 3 222
Interest-bearing debt 3 445 5 282
Total equity and liabilities 27 316 115 465
Net asset value per share 22 cents 86
cents
Fully diluted net asset value per 22 cents 91
share cents
105 168
Number of shares in issue at 31 August 109 200
(000) 105 168
117 210
Diluted number of shares in issue
(000)
Reviewed Audited
2002 2001
GROUP INCOME STATEMENT R`000 R`000
Net interest received 817 136
Operating costs (2 022) (3 298)
net management expense (1 444) (2 472)
listing, statutory and professional (578) (826)
costs
Loss from operations (1 205) (3 162)
Investment valuation adjustments (59 602) (649 611)
Loss before taxation (60 807) (652 773)
Taxation expense - 5
Loss after taxation (60 807) (652 778)
Share of accumulated loss of associates (1 252) (2 586)
Loss for the year (62 059) (655 364)
Reconciliation between loss and
headline loss
Loss attributable to shareholders (62 059) (655 364)
* Investment valuation adjustments (59 602) (649 611)
Headline loss attributable to (2 457) (5 753)
shareholders
Headline loss per share (2,25) (5,26)
cents cents
Loss per share (56,8) (600,2)
cents cents
Weighted average number of shares in 109 200 109 200
issue (000)
* Investment valuation adjustments
- Loss on disposal of - (4 685)
investments
- Investments in associates (2 812) (12 148)
written down
- Market valuation (64 854) (632 778)
adjustments
- Reversal of amounts 8 064 -
previously written off against
associate
59 602 (649 611)
Reviewed Audited
GROUP CASH FLOW STATEMENT 2002 2001
R`000 R`000
Cash flows from operating
activities
Cash absorbed by operations (4 832) (6 933)
Taxation (paid) refund (4) 162
Net finance income 817 136
Net cash outflow from (4 019) (6 635)
operating activities
Net cash inflow (outflow) 6 219 (852)
from investing activities
Net increase/(decrease) in 2 200 (7 487)
cash and cash equivalents
Cash and cash equivalents at (5 282) 2 205
beginning of year
Cash and cash equivalents at (3 082) (5 282)
end of year
STATEMENT OF CHANGES IN EQUITY
Retained
Share Share income
Group capital premium (accumulated Total
loss)
R`000 R`000 R`000 R`000
Balance at 31 1 092 171 235 576 436 748 763
August 2000
Net loss for the (655 364) (655 364)
year
Balance at 31 1 092 171 235 (78 928) 93 399
August 2001
Shares cancelled (40) (8 024) (8 064)
Net loss for the (62 059) (62 059)
year
Balance at 31 1 052 163 211 140 987 23 276
August 2002
REVIEW OF RESULTS
During the year under review, Trematon`s net asset value per share decreased
from 86 cents to 22 cents mainly as a result of the fall in share price of Intec
Telecom Systems Plc ("Intec"). The headline loss per share for the year of 2,25
cents compares with the headline loss with 5,26 cents in 2001. The loss per
share after the negative investment valuation adjustment amounted to 56,8 cents
(2001 : 600,2 cents).
Trematon`s most significant asset remains its attributable shareholding in
Intec, held indirectly by Mican Limited ("Mican"). The prevailing negative
market sentiment towards the IT and telecoms sectors has continued to impact
adversely on the value of Intec shares, which fell from 83p in 2001 to 22p at 31
August. The value of the group`s other IT investments, namely its attributable
investments in Iocore Oy (Finland) Adaptive Systems (Denmark, Norway, Sweden)
and Iocore SA (South Africa) held by Mican and Gracefield Investments (Pty) Ltd
("Gracefield") has also been negatively affected by market conditions and
sentiment. The R64,8m investment valuation adjustment resulted from the reduced
valuations of the Intec investment and the Group`s other IT related investments.
During the period, Generation Clothing performed well, increasing revenues and
profitability through exports.
Digitot launched commercial models of its alcohol spirit, draft beer and cold
drink dispensers together with its related bar management systems during the
period, following lengthy field trials. While these products have gained
favourable market response in South Africa and the United Kingdom, because the
Digitot business model comprises renting dispensing equipment to customers and
thus recognising revenue over the period of the rental agreements, Digitot is
only expected to reach break-even level during 2003.
During the year, the agreement in terms of which Trematon acquired its 30
percent shareholding in Southern Focus Holdings Ltd in 2001 was cancelled. This
investment had been fully provided against in 2001. By agreement, Trematon
cancelled 4 032 000 ordinary shares which had been issued to vendors.
Trematon also disposed of its 40% shareholding in software developer Equis
Holdings (Pty) Ltd to the Equis management for a nominal consideration. This
investment had also been written off in full in 2001.
The outstanding convertible debentures amounting to R10,362m issued by Trematon
pursuant to its Share Incentive Scheme have been redeemed in terms of the Rules
of the Scheme. The proceeds received by the Trematon Share Incentive Trust were
utilised to repay its indebtedness to the Group.
Accounting policies
The financial statements of the Group comply with South African Statements of
Generally Accepted Accounting Practice and are consistent with those applied in
the previous financial year.
Prospects
Prospects for Trematon`s investment portfolio continue to be linked to global IT
and Telecoms markets which appear to have started demonstrating signs of a
cautious recovery.
Review by auditors
The company`s auditors, KPMG Inc., have reviewed these results. Their review
opinion is available on request from the Company Secretary.
CAUTIONARY ANNOUNCEMENT
Trematon shareholders are advised that proposals are being considered which, if
implemented, may have an effect on Trematon`s share price.
Mican and Gracefield are currently negotiating a restructure of their funding
requirements with their financiers. It is anticipated that Trematon will require
to finance its attributable share of the debt to facilitate it taking direct
ownership of its share of the underlying investments. Various alternatives are
currently being investigated by Trematon regarding the financing of this debt as
well as Trematon`s other funding requirements.
Trematon shareholders are accordingly advised to exercise caution when dealing
in their shares until a further announcement is made which is expected to be on
or about 31 January 2003.
By order of the board
CW GARVIE
SECRETARY
26 November 2002
Registered office Postal address
The Manor House PO Box 712
14 Nuttall Gardens Durban
Morningside 4000
4001
Telephone: (031)303-9667
Fax: (031)303-9694
Directors: NA Labuschagne (Chairman), RB McElligott (CEO), P Ditz, M
Farrer, MG Meehan,
AJF Mundell, RE Sherrell
Transfer secretaries : Computer Share Investors Services Limited, 70 Marshall
Street,
Johannesburg 2001
Date: 26/11/2002 07:45:00 AM Produced by the JSE SENS Department
