| Fri 29 Nov 2002, 12:56 | | Imr Investments Limited - Interim Results For The |
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IMR INVESTMENTS LIMITED - INTERIM RESULTS FOR THE PERIOD ENDED 31 AUGUST 2002
IMR INVESTMENTS LIMITED
Reg No. 1998/017351/06 Share code: IMR ISIN: ZAE000027470
(formerly The Appleton Group Limited)
INTERIM RESULTS FOR THE PERIOD ENDED 31 AUGUST 2002
Group Income Statements
Reviewed Reviewed Audited
Six Months Six months Year
Ended Ended Ended
31 Aug 2002 31 Aug 2001 28 Feb 2002
R`000 R`000 R`000
Revenue 1 813 233 1 577
Operating expenses (1 248) (6 348) (4 038)
Profit/(loss) for the period 565 (6 115) (2 461)
Goodwill amortised (851) - -
Loss from operations (286) (6 115) (2 461)
Net interest received 248 1 089 1 125
Loss before taxation (38) (5 026) (1 336)
Taxation (4) (93) (802)
Attributable loss for the period (42) (5 119) (2 138)
Reconciliation of headline loss
Attributable loss for the period (42) (5 119) (2 138)
Goodwill amortised 851 - -
Headline earnings/(loss) 809 (5 119) (2 138)
Basic and fully diluted
loss per share (cents) (0.14) (15.9) (6.7)
Headline earnings/(loss)
per share (cents) 2.6 (15.9) (6.7)
Tangible NAV per share (cents) 30.4 32.2 33.3
NAV per share (cents) 33.2 - -
Group Balance Sheets
Reviewed at Reviewed at Audited at
31 Aug 2002 31 Aug 2001 28 Feb 2002
R`000 R`000 R`000
Deferred taxation - 603 -
Loans receivable 452 - 452
Share trust loan 1 000 - 1 000
Fixed assets 128 - -
Goodwill 850 - -
Current assets 16 243 27 831 19 750
Current receivables 867 4 138 1 752
Investments 11 486 13 753 12 562
Short-term deposits and cash 3 890 9 940 5 436
18 673 28 434 21 202
EQUITY AND LIABILITIES
Capital and reserves 10 093 10 228 10 311
Share capital and premium 3 038 4 594 3 100
Non-distributable reserves 6 882 11 642 7 165
Distributable reserves 173 (6 008) 46
Current liabilities 8 580 18 206 10 891
Loans payable 1 630 2 856 3 594
Current payables 6 902 15 350 7 297
Bank overdraft 48 - -
18 673 28 434 21 202
Abridged Cash Flow Statements
Reviewed at Reviewed at Audited at
31 Aug 2002 31 Aug 2001 28 Feb 2002
R`000 R`000 R`000
Cash flows from operating activities (174) (10 108) (19 542)
Cash flows from investing activities (1 305) (2 530) 5 679
Cash flows from financing activities (115) (251) (3 530)
Net decrease in cash
and cash equivalents (1 594) (12 889) (17 393)
Cash and cash equivalents at
beginning of the period 5 436 22 829 22 829
Cash and cash equivalents at end
of the period 3 842 9 940 5 436
Abridged Statements of Changes in Equity
Unaudited for six months ended 31 August 2002
Share Non-
Capital and Distributable Distributable
Premium Reserves Reserves Total
R`000 R`000 R`000 R`000
Balance at 31 March 2002 3 100 7 165 46 10 311
Treasury stock acquired (62) (114) - (176)
Net loss for the period - - (42) (42)
Release of NDR to
distributable reserve - (169) 169 -
Balance at 31 August 2002 3 038 6 882 173 10 093
Comments
1. General
The six months under review were characterised by continued global volatility
and uncertainty. The major result of which translated into a heightened sense of
caution within the investment arena.
In the current financial climate, liquidity is a preferred objective. In light
of this, the company utilised the period to consolidate its position, review its
investments and prepare for an aggressive, focused strategy in calendar 2003.
2. Review of Operations
A. Net Asset Value
As previously disclosed, IMR is most appropriately valued on a Net Asset Value
(NAV) basis. Earnings should be viewed to the extent that they impact NAV.
Revenue consists of interest, dividends and investment value adjustments. Losses
on investments are accounted for in operating expenses.
Goodwill arose from an outstanding acquisition obligation relating to the
company when it was known as T.A.G Ltd. The transaction was finalised and
concluded in the 2003 financial year. Goodwill will be amortised over the
current financial year.
The tangible net asset value translates to 30.4 cents per share and is defined
in the balance sheet above.
B. Contingent Liabilities
Certain litigation is pending against IMR, which, in the opinion of legal
counsel and the directors, can be successfully defended. Other potential claims
are adequately covered by provisions and counter claims. IMR has been advised by
Mr G L Rosenberg and the company extends appreciation for his commitment.
C. Listed Investments
As disclosed in the 2002 financial statements, a number of developments in
relation to the company`s investments have taken place:
1. In July 2002 Altech`s formal offer to the board of Directors of Labat
Holdings Ltd to purchase the operating business of the company for a
consideration of R180 million was withdrawn.
IMR still owns approximately 5% of the issued share capital of the company (9,3
million shares). The closing share price was 60 cents (2002: 39 cents).
2. In November 2002, Forza Group Ltd proposed an offer to minority shareholders
(including IMR) for 20c per share. The investment is reflected at 14 cents in
the balance sheet. IMR undertook to vote its 28,5 million shares in favour of
the transaction. The proceeds of the offer are anticipated prior to IMR`S
financial year end in February 2003.
3. In October 2002, Appleton Ltd issued a cautionary announcement relating to
discussions with the company`s largest shareholder (PSG Group Ltd). IMR owns
approximately 31 million Appleton Ltd shares.
D. Unlisted Investments.
During the period certain unlisted investment opportunities arose. One of the
investments is in the neural network arena and another relates to the S.A Gaming
Industry.
E. Other Operational Developments.
1. The board welcomes Jason Schmulian as Financial Director and Company
Secretary.
2. The company has envisaged the need to be in a position to raise further
capital and/or to issue shares for potential acquisitions. To this end,
shareholders are advised that certain circulars relating to the increase in
authorised share capital in the company are being prepared.
3. The company successfully moved its business and registered office to Melrose
Arch in Johannesburg.
4. The audited results have been prepared in accordance with South African
Statements of Generally Accepted Accounting Practice. Accounting policies
applied are consistent with those applied in the previous year.
5. The Interim financial results have been reviewed by Deloitte & Touche and
their review opinion is available for inspection at the company`s registered
office.
3. Prospects and Outlook
The board will continue to pursue strategies that would result in maximum
benefit and extraction of wealth for shareholders.
The board continues to maintain a positive, but cautious outlook on the
potential performance of the company for the remainder of the financial year.
The board wishes to thank the directors, staff, attorneys, auditors and advisors
for
their efforts.
By order of the Board
S D Shane J S Schmulian
Chief Executive Financial Director
Johannesburg
27 November 2002
Registered Address
10 Melrose Boulevard, Melrose Arch 2132. PO Box 97, Melrose Arch 2076
Telephone: (011) 684-1055/6/7. Facsimile: (011) 684-1058
Transfer Secretaries
Computershare Investor Services Limited, 70 Marshall Street, Johannesburg 2001
Directors - Executive: Stanley D Shane (CEO), Jason Schmulian (Financial). Non-
executive: Armin H Diem (Austria), Scott M Campbell (New Zealand), Wayne
Rosenberg,
Company Secretary: J Schmulian
Date: 29/11/2002 12:18:00 PM Produced by the JSE SENS Department
