| Thu 20 Feb 2003, 13:16 | | INTERIM RESULTS FOR THE SIX MONTH PERIOD ENDED 31 |
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SASFIN HOLDINGS LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
("SASFIN" OR "THE GROUP")
SHARE CODE: SFN ISIN: ZAE000006565
CONSOLIDATED BALANCE SHEET
30 June 2002 31 Dec 2002 31 Dec 2001
Audited Unaudited Unaudited
R`000 R`000 R`000
ASSETS
196,224 Short-term interbank funds 187,028 168,470
11,354 Short-term negotiable securities 12,803 13,873
121,271 Accounts receivable 169,406 165,041
778,052 Advances 854,253 696,982
15,820 Investments 23,999 15,438
6,341 Deferred taxation 6,341 -
45,713 Property and equipment 44,617 41,151
1,174,775 Total assets 1,298,447 1,100,955
LIABILITIES AND EQUITIES
Liabilities
89,391 Interbank funding 91,905 121,933
268,823 Deposits 290,132 271,962
101,807 Accounts payable 146,729 122,689
522,703 Debentures 573,710 403,140
27,649 Deferred taxation 29,960 20,276
1,010,373 Total liabilities 1,132,436 940,000
8,606 Minority interest 10,149 7,716
Equity
237 Share capital 248 235
16,495 Share premium 16,484 15,006
139,064 Distributable reserves 139,130 137,998
155,796 155,862 153,239
1,174,775 Total liabilities and equity 1,298,447 1,100,955
12,674 Commitments and contingencies 41,316 58,115
Number of shares in issue
23,723 at end of the period (`000) 24,837 23,458
656.7 Net asset value per share (cents) 627.5 653.2
CONSOLIDATED INCOME STATEMENT
Year ended Six months ended
30 June 2002 31 Dec 2002 31 Dec 2001
Audited Unaudited Unaudited
R`000 R`000 R`000
139,270 Interest income 93,868 64,862
85,024 Interest expense 61,528 38,223
54,246 Net interest income 32,340 26,639
156,116 Other income 78,932 67,626
34,983 Foreign exchange (losses)/income (9,729) 44,226
- Exceptional foreign exchange income - 11,660
245,345 Total income 101,543 150,151
11,083 Provisions for credit losses 3,846 5,325
- Exceptional general risk provisions - 15,000
234,262 Income after provisions 97,697 129,826
187,724 Operating expenses 91,388 89,552
46,538 Income before taxation 6,309 40,274
11,003 Taxation 4,235 6,694
35,535 Income after taxation 2,074 33,580
1,086 Minority interest 1,359 197
Earnings attributable to
34,449 ordinary shareholders 715 33,383
Weighted average number of shares
23,323 in issue (`000) 24,286 23,166
147.7 Headline earnings per share (cents) 2.9 144.1
147.7 Earnings per share (cents) 2.9 144.1
63 Dividend per share (cents) - -
STATEMENT OF CHANGES IN EQUITY
Year ended Six months ended
30 June 2002 31 Dec 2002 31 Dec 2001
Audited Unaudited Unaudited
R`000 R`000 R`000
237 Share capital 248 235
228 Opening balance 237 228
9 Shares issued 11 7
16,495 Share premium 16,484 15,006
15,013 Opening balance 16,495 15,013
1,482 Shares issued (11) (7)
139,064 Distributable reserves 139,130 137,998
114,228 Opening balance 139,064 114,228
Effects of adoption of accounting
- statement AC 133 7,768 -
114,228 Restated balance 146,832 114,228
Earnings attributable to
34,449 ordinary shareholders 715 33,383
(9,613) Dividend (8,417) (9,613)
155,796 Total equity 155,862 153,239
CONSOLIDATED CASH FLOW INFORMATION
Year ended Six months ended
30 June 2002 31 Dec 2002 31 Dec 2001
Audited Unaudited Unaudited
R`000 R`000 R`000
Net cash (outflow)/inflow from:
(163,339) Operating activities (57,727) (111,071)
(18,689) Investing activities (3,541) (8,032)
169,196 Financing activities 51,007 48,494
Net decrease in cash
(12,832) and cash equivalents (10,261) (70,609)
Cash and cash equivalents at
131,019 beginning of period 118,187 131,019
Cash and cash equivalents at
118,187 end of period 107,926 60,410
SEGMENTAL NET INCOME ANALYSIS
Year ended Six months ended
30 June 2002 31 Dec 2002 31 Dec 2001
Audited Unaudited Unaudited
R`000 R`000 R`000
27,674 Banking (776) 32,210
1,630 Freight 1,927 296
Investment advisory and
5,948 asset management 994 1,492
(803) Other (1,430) (615)
34,449 Total 715 33,383
NATURE OF BUSINESS
Sasfin is a bank-controlling company which is listed under the "Financials :
Speciality and other Finance" sector of the JSE Securities Exchange South Africa
("the JSE"). The focus of the Group is to provide a wide range of complementary
banking, financial and related services to its target markets of
entrepreneurial, corporate, commercial and private clients.
COMMENTARY ON RESULTS
Impact of foreign currency fluctuations
As stated in the announcement published on 22 January 2003, the Income
Statement reflects the impact on the Group of the appreciation of the Rand
against foreign currencies. In accordance with Generally Accepted Accounting
Practice, profits or losses on currency fluctuations are brought to account
through the Income Statement.
Sasfin Bank Limited`s ("SBL") capital is substantially represented in foreign
currency in its wholly-owned subsidiary, Sasfin Asia Limited ("SAL"). The wide
fluctuations in the value of the Rand resulted in a translation loss of R9.7
million for the review period, against a translation gain of R44.2 million for
the corresponding period last year. The translation loss in the period under
review is substantially lower than the profit for the corresponding period, as
the Group partially hedged its exposure.
Core business activities
After adjusting for the impact of foreign exchange movements, the core profit
of the Group increased by R21.2 million, from a loss in the corresponding period
of R10.8 million to a profit in the review period of R10.4 million. Factors
contributing to this improvement in profitability of the underlying business
operations were reductions in overhead costs, increases in new business volumes
and margins and maintenance of acceptable levels for bad debts.
Despite difficult conditions, the Group increased its total assets by 18% to
R1.3 billion (2001 : R1.1 billion), of which net advances grew by 22.6% to R854
million (2001 : R697 million). The advances are substantially securitised to
the Group`s securitisation vehicle, Equipment Rentals Securitisation No. 1 (Pty)
Limited, which is structured with funding matched in terms of maturity to the
advances.
The business activities of SBL`s private client businesses were integrated
during the period, and the name of Sasfin Financial Advisory Services (Pty)
Limited was changed to Sasfin Investment & Asset Managers (Pty) Limited ("SIAM")
to better reflect its business focus and the management team was streamlined.
SIAM`s fortunes, especially those of Sasfin Frankel Pollak Securities (Pty)
Limited, its stock broking and portfolio management arm, are linked to those of
the JSE, which experienced very low levels of activity during the period.
A number of retrenchments were effected and certain people who resigned have
not been replaced, resulting in the Group`s headcount being reduced by 8% and a
flatter management structure. These savings will favourably impact the Group`s
bottom line once the associated costs have been absorbed.
ACCOUNTING POLICIES
The accounting policies used in the preparation of the unaudited interim
financial statements are in accordance with Generally Accepted Accounting
Practice and are consistent with those used in the annual financial statements
for the financial year ended 30 June 2002, except for the adoption of AC 133 -
Financial Instruments : recognition and measurement.
DIVIDEND POLICY
It is the Group`s policy to declare an annual divided at year-end.
KEY RATIOS
The statutory risk-weighted capital adequacy ratio of Sasfin Bank Limited is
28.4% (2001 : 28.5%), which is well above the prescribed minimum of 10%.
General provisions for bad and doubtful advances remain conservative at 1.8%
(2001 : 2.6%) to total Group advances.
PROSPECTS
The Directors are of the view that these results mark a turnaround in the
Group`s trading performance which should continue in the six months to June 2003
and especially in the year to June 2004.
For and on behalf of the Board
MB Glatt RDEB Sassoon
Chairman Group Chief Executive Officer
20 February 2003
PRESIDENT: SE Sassoon* CHAIRMAN: MB Glatt (Non-Executive)
EXECUTIVE DIRECTORS: RDEB Sassoon* (CEO), AW Greenstein (MD)
NON-EXECUTIVE DIRECTORS: CN Axten, ETB Blight, D Paizes, ML Smith
COMPANY SECRETARY: SK Erasmus_ * British
REGISTERED OFFICE: Sasfin Place, 13-15 Scott Street, Waverley, 2090.
Tel: +27 11 809 7500, Fax: +27 11 887 2489/6167 Websites: www.sasfin.com
www.sfpsecurities.com
TRANSFER SECRETARIES: Computershare Investor Services Limited,
70 Marshall Street Johannesburg, 2001. PO Box 1053, Johannesburg, 2000.
COMPANY REGISTRATION NUMBER: 1987/002097/06
Date: 20/02/2003 01:01:00 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
