| Fri 6 Dec 2002, 9:35 | | Nictus Limited - Interim Report |
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Nictus Limited - Interim Report
Nictus Limited
(Registration number 1981/011858/06) (RSA)
(Registration number F81/11858) (Namibia)
INTERIM REPORT - for the six months ended 30 September 2002
Six months ended Year ended
30 Sept`02 30 Sept`01 Change 31 March`02
Unaudited Unaudited % Audited
R`000 R`000 R`000
GROUP INCOME STATEMENT
Revenue 108,666 101,315 7 212,760
Cost of sales (55,802) (66,897) -17 (129,963)
Claims paid and provided (32,577) (17,467) 87 (50,123)
Gross profit 20,287 16,951 20 32,674
Net selling and
administrative expenses (14,644) (13,196) 11 (25,390)
Operating profit 5,643 3,755 50 7,284
Interest paid (1,277) (1,201) 6 (1,862)
Income from associate - 104 -100 107
Net profit before taxation 4,366 2,658 64 5,529
Taxation 1,142 773 48 1,361
Net profit for the period 3,224 1,885 71 4,168
ABRIDGED GROUP BALANCE SHEET
Assets
Property, Plant and Equipment 18,542 9,068 104 16,162
Negative goodwill on acquisition
of subsidiary (340) (1,579) -78 (453)
Investments 16,044 8,206 96 4,585
Investment in associate - 107 -100 161
Deferred tax 2,551 3,311 -23 2,584
Current assets 119,871 85,874 40 104,279
156,668 104,987 49 127,318
Equity and liabilities
Capital and reserves 37,677 29,617 27 37,125
Long-term liabilities 1,449 2,425 -40 1,445
Deferred taxation 2,857 1,322 116 2,742
Current liabilities 114,685 71,623 60 86,006
Interest bearing 17,234 15,812 9 11,580
Other 24,479 16,435 49 19,631
Provision for claims 72,972 39,376 85 54,795
156,668 104,987 49 127,318
ARBRIDGED GROUP STATEMENT OF CHANGES IN EQUITY
OPENING BALANCE 37,125 8,623 331 8,623
Ordinary shares issued - 12,502 -100 22,608
Decrease in share premium - 7,501 -100 (2,221)
Increase in Non-distributable reserve - - - 5,423
Capitalisation issue - - - (582)
Change in accounting policy -
buildings depreciated - (894) -100 (894)
Net profit for the period 3,224 1,885 71 4,168
Dividend paid (2,672) - 100 -
CLOSING BALANCE 37,677 29,617 27 37,125
ARBRIDGED GROUP CASH FLOW STATEMENT
Net cash (outflow)/inflow
from operating activities 5,020 1,157 334 39,415
Net cash (outflow)/inflow
from investing activities (9,393) (11,329) -17 (30,777)
Net cash inflow/(outflow)
from financing activities 1,406 20,768 -93 14,504
NET MOVEMENT IN CASH AND
CASH EQUIVALENTS (2,967) 10,596 -128 23,142
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 19,361 (3,781) -612 (3,781)
CASH AND CASH EQUIVALENTS AT
END OF PERIOD 16,394 6,815 141 19,361
SEGMENTAL REPORTING
Motor retail 928 1,526 -39 1283
Furniture and carpet retail 525 432 22 2765
Property holdings 234 466 -50 306
Short-term insurance 3,692 1,320 180 2,688
Finance and other 264 11 242
Operating profit 5,643 3,755 50 7284
RATIOS
Number of ordinary
shares issued 53,443,500 33,232,956 53,443,500
Earnings per ordinary
share (cents) 6.03 5.67 7.82
Headline earnings per
share (cents) 5.80 5.67 7.40
Net worth (cents) 70.50 89.12 69.68
Borrowings ratio 0.49 0.66 0.35
Interest cover 4.42 3.13 3.91
ACCOUNTING POLICIES
The statements have been prepared in accordance with South African Statements
of Generally Accepted Accounting Practice. The accounting policies used in
preparing the interim financial statements are consistent with those used in
preparing the annual financial statements. During 2002 the accounting policies
regarding investment property and fixed assets were changed and the interim
financial statements for September 2001 have accordingly been restated.
COMMENTS
Following the group`s best ever performance during the 2002 financial year,
R5, 5 million before taxation, it gives management great pleasure in announcing
a profit of R4, 4 million before taxation for the first six months ended 30
September 2002.
The previous two years were characterized with the restructuring of the
Nictus group, of which the successes are clearly reflected in the results
presented in this report. The group acquired the remaining 67% shares in Karas
Securities Limited to make it a wholly owned subsidiary. The company was
previously an associate. This completes the merger with Corporate Guarantee and
its subsidiaries.
These results were achieved notwithstanding the inflationary conditions and a
slowing economy which saw an increase in interest rates of 4 percentage points
for the last six months. Our different group segments compliment each other
fully in a changing economic environment, which allows us to achieve solid
results under difficult trading conditions.
The group`s results are on budget and management is confident that Nictus is
well on its way to achieve the stringent main board listing requirements set out
by the JSE for compliance by March 2003.
GROUP PERFORMANCE
- Group turnover increased by 7%
- Operating profit before taxation and interest increased by 50%
- Interest paid increased by 6% due to the increased prime interest rates
- Increase of 71% in net profit for the year
- Borrowings ratio improved by 26% to 0.49
Our furniture and carpet retail division showed improved results from last
year. There has been big restructuring in this retail sector in Namibia and in
the face of the higher inflation and interest rates, management is confident to
meet budget forecast for this sector.
Growth in inflation has started to impact on the purchasing power of
consumers. Together with interest rates it is likely to impact on the demand for
new vehicles. New vehicle prices have soared since the beginning of the year.
There are clear signs that the growth momentum of sales of new cars, which has
fuelled the automotive industry for a number of months is starting to slow down.
Our short-term insurance sector took full advantage of increased interest rates
and performed above expectations. With the forecast of interest rates
stabilizing for the next six months management is confident that these results
will be maintained.
EARNINGS PER SHARE
Earnings per share for the six months was 6,03 cents, with headline earnings
per share of 5,8 cents. Net profit for the period has been adjusted by R124 000
for negative goodwill written off.
Shareholders should take note that as there was a capitalization issue of one
share for every two held in the 2002 financial year, a more realistic comparison
of earnings per share for the six months compared to last year is 9,05.
DIVIDEND
In accordance with our announcement in the annual financial statements a
dividend of 5 cents per share has been paid on Monday the 22nd of July 2002. The
dividend payment was 1 cent more than our dividend policy of two times cover.
Dividends are declared shortly after the publication of the group`s annual
results.
PROSPECTS
Management is fully aware of the forecasted continuation of adverse economic
conditions and the effect of the higher inflation on the spending patterns of
the consumer. Interest rates are not expected to rise further during the
remainder of this financial year.
Management will continue to focus on key issues with specific emphasis on the
group`s risk exposure in all key areas. Mechanisms will be put in place to limit
the effect of negative trading conditions and ensure that all segments adhere to
the groups performance criteria.
The directors are confident of achieving profit targets for March 2003.
On behalf of the board:
N.C. Tromp
F.R. Van Staden
Windhoek, 26 November 2002
DIRECTORS:
NC Tromp (Executive Chairman) WJ Kuhn JL Olivier F R van Staden
JJ Fourie
TRANSFER SECRETARIES:
Computershare Investor Services Limited
70 Marshall Street, Johannesburg 2001
PO Box 1053 Johannesburg 2000
R.S.A. REGISTERED OFFICE:
27 Church Street, Pretoria, 0002
P/Bag X947, Pretoria, 0001
NAMIBIA REGISTERED OFFICE:
Auas Building,
C/o Hochland Road and Voigts Street,
Private Bag 13231, Windhoek
Reg. No. 81/011858/06 (RSA) F81/11858 (Namibia)
Date: 06/12/2002 08:00:39 AM Produced by the JSE SENS Department
