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iProp Holdings Limited - Financial Report
The audited results of iProp Holdings Limited and its subsidiaries and further
cautionary announcement for the year ended 30 September 2002 and dividend
announcement.
(Incorporated in the Republic of South Africa)
Share code: IPR. ISIN: ZAE 000018867
(Registration number 1968/001239/06)
("iProp" or "the company")
Highlights
- Results not comparable to 2001: disposal of in excess of R200 million of
property investments to iFour property group
- Borrowings reduced from R194,7 million (2001) to R35,7 million
- Distribution of R37,4 million in iFour linked units to
shareholders in June 2002
- Operating profit of core business increased from R1,0 million (2001) to
R3,7million
-Abridged consolidated income statement
for the year ended 30 September 2002
2002 2001
R`000 R`000
Revenue 67 959 67 318
Cost of sales 15 985 12 998
Gross profit 51 974 54 320
Operating expenses 19 957 23 368
Depreciation 626 823
Operating profit 31 391 30 129
Decrease in post-retirement health
care provision - 7 626
Fair value adjustment to
property investments 1 312 -
Impairment of undeveloped land
trading stock (1 734) -
Investment income 15 415 18 946
Financing costs (35 074) (42 497)
Exceptional items (6 907) (2 953)
Profit before taxation 4 403 11 251
Taxation 257 (5 532)
Profit after taxation 4 146 16 783
- before exceptional items 9 693 18 745
- from exceptional items (5 547) (1 962)
Profit attributable to shareholders 4 146 16 783
Determination of headline earnings
Attributable profit for the year
per income statement 4 146 16 783
Adjusted for:
Net profit on the sale of investment
buildings - (349)
Headline earnings for the year 4 146 16 434
Shares in issue (000`s) 15 879 15 677
Weighted average number of ordinary shares
on which fully diluted earnings per
share are based (000`s) 16 096 16 295
Earnings per share ("EPS")
Headline earnings per share (cents) 26 105
Earnings per share from profit
attributable to ordinary
shareholders (cents) 26 107
Fully diluted earnings
per share (cents) 26 103
Dividends per share (cents) 32 35
Abridged consolidated balance sheet
at 30 September 2002
2002 2001
R`000 R`000
ASSETS
Non-current assets
Property investments 50 839 286 317
Land, mineral rights, plant and
equipment 4 660 3 263
Townships and developments
in progress 47 032 50 625
Investments 41 064 12 223
Non-current receivables 25 200 8 558
Deferred taxation 4 006 3 144
172 801 364 130
Current assets
Township land stock 26 352 32 630
Receivables and prepayments 28 988 30 604
Cash and cash equivalents 37 404 3 542
Total assets 265 545 430 906
EQUITY AND LIABILITIES
Capital and reserves
Interest of shareholders
in iProp Holdings Limited 176 100 190 550
Non-current liabilities 48 871 207 872
Borrowings 35 653 194 654
Retirement benefit obligations 13 218 13 218
Current liabilities 40 574 32 484
Trade and other payables 16 310 14 305
Current taxation 3 696 3 000
Provisions for liabilities
and charges 20 222 14 765
Unclaimed dividends 346 414
Total equity and liabilities 265 545 430 906
- Abridged consolidated cash flow statement for the year ended 30 September 2002
2002 2001
R`000 R`000
Cash flow from operating activities
Cash generated by operations 57 762 39 689
Interest paid (35 074) (28 830)
Taxation paid (425) (953)
Dividends paid (5 162) (5 553)
Costs incurred - sale of property
investments to iFour (2 374) -
Restructuring costs (4 533) (1 332)
Cash generated by operating activities 10 194 3 021
Cash flow from investing activities
Investment income 14 574 3 039
Crown Consolidated Gold Recovery
loan note realised - 35 347
Acquisition of investment
portfolio from Mawenzi - (29 770)
Cash proceeds from disposal of
investment properties to iFour 12 046 -
Decrease in townships and
developments in progress 1 859 1 765
Purchase of property, plant and equipment (1 509) (2 980)
Proceeds on disposal of investment property,
plant and equipment - 5 672
Cash generated by investing activities 26 970 13 073
Cash flow from financing activities
Repayment of long term borrowings (3 875) (10 999)
Shares issued for share options exercised 573 -
Cash utilised in financing activities (3 302) (10 999)
Net increase in cash and cash equivalents 33 862 5 095
Cash and cash equivalents at
beginning of year 3 542 (1 553)
Cash and cash equivalents at end
of the year 37 404 3 542
- Abridged consolidated segmental analysis
for the year ended 30 September 2002
2002 2002
Revenue R`000 R`000
Land development 33 148 20 097
Property investment 34 811 47 221
Revenue as reported 67 959 67 318
Operating profit
Land development 3 657 1 035
Property investment 27 734 29 094
Operating profit as reported 31 391 30 129
- Abridged consolidated statement of changes in shareholders` equity
for the year ended 30 September 2002
Reserve arising
on surplus
on disposal of
investments
Share Share Retained and
capital premium earnings subsidiaries Other Total
R`000 R`000 R`000 R`000 R`000 R`000
Balance at
1 October 2000 15 677 30 138 123 357 10 082 - 179 254
Final dividend
declared for 2000 - - (3 919) - - (3 919)
Interim dividend
declared for 2001 - - (1 568) - - (1 568
Net profit
for the year - - 16 783 - - 16 783
Balance at
1 October 2001
as previously
reported 15 677 30 138 134 653 10 082 - 190 550
Effect of
adopting AC135,
Investment
Properties - - 34 724 - - 34 724
Balance as
restated 15 677 30 138 169 377 10 082 - 225 274
iFour linked units
distributed
to shareholders - (30 138) (7 292) - - (37 430
Shares issued for
share options
exercised 645 1 759 - - - 2 404
Fair value
adjustment to
iFourlinked units
and deferred sales
consideration - - - - (13 200) (13 200
Final dividend
for 2001 - - (3 135) - - (3 135
Interim
dividend for 2002 - - (1 959) - - (1 959
Net profit for
the year - - 4 146 - - 4 146
Balance at
30 September
2002 16 322 1 759 161 137 10 082 (13 200) 176 100
- Capital expenditure and commitments
for the year ended 30 September 2002
2002 2001
R`000 R`000
Capital expenditure 1 509 2 980
Commitments - -
- Comments
Accounting policies
The consolidated financial statements are prepared on the historical cost basis,
except for investment properties which have been recorded at fair value.
Accounting policies used in preparing this report comply with South African
Statements of Generally Accepted Accounting Practice and the requirements of the
South African Companies Act 1973, as amended. The accounting policies are
consistent with those applied in the previous year except, for the adoption of
AC135, Investment Properties, as noted below.
Investment properties
Investment properties have been recorded at fair value with changes in fair
value included in the income statement.
Review of results
Headline earnings
Earnings are not comparable to the previous year due to the disposal of in
excess of R200 million of property investments to the iFour property group on 7
June 2002. Headline earnings for the year ended 30 September 2002 are R4,1
million (2001: R16,4 million).
Operating profit
The core business of land development achieved an operating profit of R3,7
million (2001: R1,0 million).
Impairment of undeveloped land trading stock
Valuations performed in respect of the East Rand land necessitated the write
down of undeveloped land by R1,7million.
Investment income and financing cost
The lower level of investment income and financing cost resulted from the
disposal of the major part of the property investment portfolio to iFour.
Exceptional items
Exceptional items result mainly from restructuring costs of R4,5 million and
costs incurred of R2,4 million related to the sale of the major part of the
property investments to the iFour property group.
Taxation
The low effective tax charge is mainly due to non-taxable income items included
in profit before tax.
PriceWaterHouseCoopers` audit opinion is available for inspection at iProp`s
registered offices.
Prospects
Enquiries on land sales remain at a high level, but realisation periods are
proving to be longer than previously experienced. This can be attributed to the
many uncertainties present in the property sector.
Final dividend
A final dividend (Number 53) of 13 cents per share (2001: 20 cents) has been
declared in terms of the accompanying dividend notice.
- Declaration of dividend (Number 53)
A final dividend (Number 53) of 13 cents (2001: 20 cents) per ordinary share has
been declared in respect of the year ended 30 September 2002.
The dividend is payable to shareholders recorded in the books of the company at
the close of business on 17 January 2003 (the record date). The last date to
trade cum dividend will be 10 January 2003 and trading will commence ex dividend
13 January 2003. The dividend will be paid on 20 January 2003.
Share certificates may not be dematerialised or rematerialised between Monday,
13 January 2003 and Friday, 17 January 2003, both days inclusive.
The dividend is declared in the currency of the Republic of South Africa and,
where applicable will be converted into United Kingdom currency for payment by
cheque drawn on a bank in London to those shareholders whose addresses in the
register of members are overseas.
The rate of exchange at which the dividend will be converted to United Kingdom
currency will be the telegraphic rate of exchange between South Africa and the
United Kingdom ruling on the first business day after 10 January 2003 on which
foreign currency dealings are transacted.
- Further cautionary
Further to the cautionary announcement dated 21 October 2002, shareholders are
advised to continue to exercise caution when dealing in iProp shares until a
further announcement is made.
By order of the board
iProp Services (Proprietary) Limited
Secretaries
per DR Harris FCIS
Johannesburg 26 November 2002
Registered office Transfer secretaries Sponsors
Modulus Road Ext. Computershare InvestorServ.Limited PricewaterhouseCoopers
Ormonde 70 Marshall Street Corporate Finance (Pty) Ltd
Johannesburg Johannesburg Registration number
1970/003711/07
PO Box 27, Crown Mines 2025 PO Box 1053,
Johannesburg 2000 2 Eglin Road, Sunninghill
Directors: JC Hall CBE (Non-executive Chairman), P Heydenrych* BA LLB LLM
(Property Law) (Managing Director), EPM Moses, CG Steyn FCIS * Executive
Director
Date: 02/12/2002 08:39:00 AM Produced by the JSE SENS Department
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