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Bonatla - Audited Final Results For The Year Ended 30 September 2002
Release Date: 19/12/2002 16:50:04 Code(s): BNT
Bonatla - Audited Final Results for the year ended 30 September 2002
BONATLA PROPERTY HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Share code: BNT ISIN: ZAE000013694
(Registration number 1996/014533/06)
("Bonatla" or "the company")
AUDITED FINAL RESULTS for the year ended 30 September 2002
CONSOLIDATED INCOME STATEMENT
2002 2001
R`000 R`000
Revenue 116 397 112 426
Operating expenses (37 540) (33 962)
Operating profit 78 857 78 464
Fair value adjustment to investment properties (16 642) -
Income from investments 1 180 2 008
Finance charges (67 511) (70 285)
Net (loss)/income before taxation (4 116) 10 187
Taxation 1 749 (2 559)
Net (loss)/income after taxation (2 367) 7 628
Cents cents
(Loss)/earnings per share (1.28) 4.15
Headline earnings per share 4.85 3.78
Weighted average number of shares (`000) 185 097 183 818
Fully diluted (loss)/earnings per share (1.19) 4.08
Fully diluted headline earnings per share 4.64 3.72
Diluted number of shares (`000) 194 686 188 152
Reconciliation of earnings
Net (loss)/income after taxation (2 367) 7 628
Net after tax adjustments:
Fair value adjustment to properties 11 649 -
Fair value adjustment to other financial assets (305) -
Profit on sale of assets - (677)
Headline earnings 8 977 6 951
Adjusted for:
Debenture interest (after tax) 56 56
Fully diluted headline earnings 9 033 7 007
CONSOLIDATED BALANCE SHEET
2002 2001
R`000 R`000
Fixed assets 631 343 644 609
Deferred taxation 7 123 5 102
Financial assets 8 277 3 690
Current assets 3 076 5 689
Total assets 649 819 659 090
Shareholders` equity 169 752 172 750
Long-term borrowings 456 885 464 937
Current liabilities 23 182 21 403
Total equity and liabilities 649 819 659 090
CONSOLIDATED CASH FLOW STATEMENT
2002 2001
R`000 R`000
Net cash flows from operating activities 8 608 9 545
Cash generated from operations 77 882 79 721
Interest received 1 180 2 008
Interest paid (67 511) (70 285)
Dividends paid (1 900) (1 931)
Taxation (paid)/refunded (1 043) 32
Net cash (outflows)/flows from investing activities (7 190) 1 617
Net cash outflows from financing activities (8 050) (7 269)
(Decrease)/increase in cash and cash equivalents (6 632) 3 893
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Shares to Retained
Capital premium be issued Debentures profit Total
Note `000 `000 `000 `000 `000 `000
Balance at
1 October 2000 1 755 121 008 26 960 - 8 805 158 528
Balance as
previously stated 1 755 121 008 26 960 - 12 816 162 539
Fundamental error 2 - - - - (4 011) (4 011)
Issue of shares
net of expenses 96 24 211 (23 782) - - 525
Issue of convertible
Debentures - - - 8 000 - 8 000
Net profit for
the year - - - - 7 628 7 628
Dividend paid - - - - (1 931) (1 931)
Balance at
1 October 2001 1 851 145 219 3 178 8 000 14 502 172 750
Balance as
previously stated 1 851 145 219 3 178 8 000 20 359 178 607
Fundamental error 2 - - - - (5 857) (5 857)
Recovery of amounts
previously expensed - 1 300 - - - 1 300
Net loss for the year - - - - (2 367) (2 367)
Dividend paid - - - - (1 931) (1 931)
Balance at
30 September 2002 1 851 146 519 3 178 8 000 10 204 169 752
Notes to the financial statements for the year ended 30 September 2002
1. Accounting policies
All accounting policies have been consistently applied throughout the period and
are consistent with prior years.
2. Fundamental error
During the year the following fundamental errors were identified and adjusted
for:
2.1 The group overaccrued income and underaccrued expenses in 2001.
2.2 At the time of finalisation of the group`s financial statements for the year
ended 2001, latest tax assessments had not been issued by the South African
Revenue Services. These reflect that the actual assessed losses were higher than
the amounts used in the group taxation and deferred taxation calculations. The
changes have been effected in the 1999 and 2000 accounting periods, thereby only
affecting group opening retained earnings in the 2001 year.
2.3 The group has previously provided for deferred tax on the difference between
historical cost and tax values of investment properties. The tax effects arising
from revaluations of investment properties had not been accounted for.
Revaluations took place in the year 2000 and in the current year. There is thus
an impact on the opening retained earnings for 2001,
and an effect on the current year`s tax charge.
The effects of these changes are as follows:
Gross Taxation Net
R000`s R000`s R000`s
Year ended 30 September 2002
2.1 Reduction in opening retained income (2002) (2 636) 790 (1 846)
2.2 Increase in opening retained income (2001) - 1 161 1 161
2.3 Reduction in opening retained income (2001) - (5 172) (5 172)
(2 636) (3 221) (5 857)
Year ended 30 September 2001
2.2 Increase in opening retained income (2001) - 1 161 1 161
2.3 Reduction in opening retained income (2001) - (5 172) (5 172)
- (4 011) (4 011)
REVIEW OF RESULTS
The board of directors is pleased to present the audited financial results of
Bonatla Property Holdings Ltd for the year ended 30 September 2002.
Fully diluted headline earnings per share increased by 25%, from 3.72 cents to
4.64 cents and fully diluted earnings per share reduced from 4,08 cents to (1,19
cents). The Group revalued all of its investment properties internally during
the period, which resulted in a R16,6m writedown. In terms of AC135 the
writedown has been recognised through the income statement but is not included
in headline earnings. The writedown generated deferred taxation credits of
R5 million, which resulted in a positive tax charge.
Operating margins declined marginally from 70% to 68% mainly due to vacancies
increasing from 7.1% to 8.3% (based on gross rentals). This resulted in
operating profit remaining flat.
Considering the poor economic conditions affecting the property industry
throughout the year, these results are considered to be positive.
The combination of repayment of capital on long term borrowings and the
revaluations has resulted in the total debt to asset ratio remaining unchanged
at 74%. The lease expiry profile has been well maintained, with no more than 20%
of leases expiring in any one year.
Prospects
The group anticipates an increase in operating profit for the forthcoming year
but higher average interest rates will result in flat net income growth
(excluding the revaluation). Bonatla is in discussions with a variety of parties
in connection with a restructuring of the Group. In this regard shareholders`
attention is drawn to the cautionary announcement below.
Cautionary Announcement
Bonatla shareholders are advised that the Company is currently negotiating
with several parties with regard to restructuring the Company. This may have
a material effect on the price of the Company`s shares. Accordingly, Bonatla
shareholders are advised to exercise caution when dealing in the Company`s
shares until a further announcement is made.
These results have been audited by the company`s auditors, Grant Thornton Kessel
Feinstein, and an audit opinion is available for inspection at the company`s
registered office (detailed below) during office hours.
By order of the Board
B J van der Ross
Chairman
Johannesburg
17 December 2002
Transfer Secretaries:
Computershare Investor Services Ltd, 70 Marshall Street, Johannesburg, 2001
Company Secretary and Registered office:
Corporate Governance cc
Bonatla Property Holdings
Registration number 1996/014533/06
Share Code: BNT
ISIN Code: ZAE000013694
5th Floor, 15 Baker Street, Rosebank, 2196
Directors:
B J van der Ross (Chairman),
R D du Plooy,
J D Broll,
J Styger,
N G Vontas,
M H Brodie,
S A Meltzer
Sponsor:
Grant Thornton Kessel Feinstein
Asset Manager:
Catalyst
Date: 19/12/2002 04:50:00 PM Produced by the JSE SENS Department
