| Mon 23 Dec 2002, 8:47 | | Zarara - Reviewed Preliminary Results For The Year |
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ZARARA ENERGY LIMITED
(Registration number: 1895/001078/06)
(Incorporated in the Republic of South Africa)
Share code: ZRR ISIN: ZAE000033080
("Zarara" or "the Company")
REVIEWED PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2002
Issued: 27 430 900 Ordinary shares of 5 cents each
Weighted average number of shares used in earnings calculations: 2002 - 27 430
900 (2001 - 26 122 254)
Abridged consolidated income statement
Reviewed Audited
Year ended Year ended
30 Sept 2002 30 Sept 2001
R`000 R`000
Revenue 159,913 29,959
Operating loss (22,582) (120,258)
Amortisation of goodwill 357 -
Loss before investment and
interest income (22,225) (120,258)
Income from investment - 1,130
Net interest received 1,955 6,477
Loss before taxation (20,270) (112,651)
Taxation 4,283 (485)
Net loss after taxation (24,553) (113,136)
Outside shareholder`s interest (6,075) 1,484
Net loss for the year (30,628) (111,652)
Determination of headline loss
Net loss per income statement (30,628) (111,652)
Profit on disposal of investments (2,265) (636)
Profit on sale of property, plant
and equipment (74) (522)
Impairment of property, plant and
equipment 11,619 -
Impairment of investments and loan - 48,271
Write (up)/down of goodwill (5,680) 35,130
Headline loss (27,028) (29,409)
Headline loss per share (cents) (98) (112)
Attributable loss per share (cents) (112) (427)-
Summarised cash flow
Cash generated by operating
activities 27,024 49,338
Cash utilised in investing
activities (36,288) (19,915)
Cash inflow/(outflow) from
financing activities 10,808 (13,291)
Net cash inflow 1,544 16,132
Abridged consolidated balance sheet
Reviewed Audited
At At
30 Sept 2002 30 Sept 2001
R`000 R`000
Assets
Fixed assets 37,767 18,577
Negative goodwill (1,327) -
Deferred taxation 775 177
Investment and loans 16,429 24,263
Non-current assets 53,644 43,017
Current assets 91,682 89,909
Total assets 145,326 132,926
Equity and liabilities
Capital and reserves 79,113 107,828
Outside shareholder`s interest 9,693 305
Long term liabilities 13,444 3,508
Current liabilities 43,076 21,285
Total equity and liabilities 145,326 32,926
Abridged statement of changes in equity
Share capital and premium
Opening balance 352,831 364,236
Capital reduction - (11,405)
352,831 352,831
Non-distributable reserves
Opening balance 2,868 3,446
Pre-acquisition reserves 1,913 -
Translation of foreign currency - (578)
Transfer to distributable reserves (640) -
4,141 2,868
Distributable reserves
Opening balance (247,871) (136,797)
Transfer from non-distributable
reserve 640 578
Net loss (30,628) (111,652)
(277,859) (247,871)
Total equity 79,113 107,828
Net asset value per share (cents) 288 393
SEGMENTAL REPORT
Gross Operating Total
revenue (loss)/profit assets
2002
Market segment
Energy 92 (28,789) 43,818
Maritime 10,216 1,991 -
Properties 8,697 (10,621) 8,667
Biotechnology 140,908 14,837 92,841
159,913 (22,582) 145,326
Geographical segment
Republic of South Africa 159,821 (11,152) 132,947
Foreign countries 92 (11,430) 12,379
159,913 (22,582) 145,326
2001
Market segment
Energy - (121,146) 98,964
Maritime 16,817 195 6,528
Property 13,142 693 27,434
Biotechnology - - -
29,959 (120,258) 132,926
Geographical segment
Republic of South Africa 29,959 (89,661) 112990
Foreign countries - (30,597) 19936
29,959 (120,258) 132,926
REVIEW OF OPERATIONS
Shortly after the Annual General Meeting held on 22nd April 2002 the board of
the company was restructured. The directors of the company believe that it is in
the best interest of Zarara Shareholders for the company to realise to its best
advantage, its interests in the various assets held. Consequently it has sold a
number of its assets for cash and shares thereby enhancing shareholder value.
-The directors intend recommending to the shareholders that the remaining assets
be realised with a view to ultimately winding up and liquidating the company.
Payments to shareholders, as appropriate, will be made as and when the situation
warrants such payments. During the financial year the company sold its interest
in Mawenzi Vulindlela Maritime (Pty) Ltd and Stepstone Investments (Pty) Ltd for
a consideration of R4 150 000. Subsequent to the year-end it has sold tributing
rights and claims to Sub Nigel Gold Mining Company Ltd for one million fully
paid ordinary shares of no par value in Sub Nigel Gold Mining Company Ltd. It
has also sold Caribbean Estates (Pty) Ltd for a consideration of R500 000.
-Shareholders of the company are referred to the announcement dated 13th
December 2002 of a proposed sale of SA Bioproducts Holdings (Pty) Ltd and a
proposed share repurchase.
-The company`s lawyers have been instructed to deliver a plea in the New
Republic Bank damages matter and to apply for a trial date.
Accounting Policies
The accounting policies conform with the Statements of South African Generally
Accepted Accounting Practice and have been consistently applied.
The financial statements are prepared on a going concern basis and reflect
historical costs.
Reviewed Report
Results have been reviewed by the auditors of the company, Deloitte & Touche
Chartered Accountants (SA). The review report, which is unqualified, includes an
emphasis of matter raised which states: "Without qualifying our opinion, we draw
attention to Review of Operations in the preliminary financial information,
which indicates that the directors intend recommending to the shareholders that
the remaining assets of the company be realised with a view to ultimately
winding-up and liquidating the company. The preliminary financial information
has been prepared on the basis that the company continues as a going concern and
does not take into account the adjustments that may be necessary for the
realisation of assets and settlement of liabilities on the liquidation basis."
This report is available for inspection at the company`s registered office.
Capital Expenditure
SA Bioproducts (Pty) Ltd embarked during the year on a strategy to broaden its
range of products by the expansion of its plant to enable it to produce
threonine and other small volume, high value amino acids. The expenditure on
plant expansion amounted to R31,0 million. Further expenditure of R18,1 million
has been approved by the board of directors of SA Bioproducts (Pty) Ltd which
will be funded from loans and internal resources.
Loans and Overdrafts
SA Bioproducts (Pty) Ltd has a R10 million overdraft facility with Nedbank
Limited which has not been accessed. Security comprises first cession of the
company`s debtors. In addition, subsequent to the year end, that company entered
into a loan agreement with BAE Systems PLC for the provision of a long term loan
facility in the sum of $2 million. Security for the loan comprises a deed of
suretyship by Val Des Bois Investments (Pty) Ltd, a group company, and a
notarial bond passed over the fixed assets of the company.
Lease commitments
The lease commitments payable within one year amount to R977 000 and thereafter
R2 639 000.
By order of the board
WJDI Scott: Chairman
LM Carroll: Chief Operating Officer and Company Secretary
-Non Executive Directors : WJDI Scott (Chairman), HC Buitendag, NE Moon, RB
Shead
Registered office - 18 Rivonia Road, Illovo, Sandton. 2196
Transfer Secretaries - Computershare Services Ltd, 70 Marshall Street,
Johannesburg 2001
Date: 23/12/2002 07:08:30 AM Produced by the JSE SENS Department
