| Wed 26 Feb 2003, 8:18 | | Saambou - Audited results for the year ended 31 Ma |
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SAAMBOU HOLDINGS LIMITED
Registration number 1987/004170/06
(Incorporated in the Republic of South Africa)
(Registration number 1987/004170/06)
ISIN: ZAE000006409 Share code: SBO
("Saambou" or "the company")
GROUP RESULTS
Audited results for the year ended 31 March 2002
CONSOLIDATED INCOME STATEMENT
31 March 31 March
2002 2001
Rm Rm
Net interest and related income 614,6 734,2
Provision for losses on advances (437,2) (33,9)
Net interest income 177,4 700,3
Non-interest income 598,5 569,7
Total income 775,9 1 270,0
Operating expenses (1 854,2) (937,9)
Net operating income (1 078,3) 332,1
(Loss)/profit on equity accounted
investments (68,8) 3,5
Net income before taxation (1 147,1) 335,6
Taxation 2,4 (101,6)
Net income after taxation (1 144,7) 234,0
Outside shareholders` interest 6,0 (14,7)
Income attributable to ordinary
shareholders (1,138,7) 219,3
ASSETS
Property and equipment 4,1 216,3
Deferred taxation - 4,4
Investments 394,6 1 087,3
Equity accounted investments - 17,9
Other assets 21,8 430,5
Advances - 15 348,1
Liquid assets 552,7 3 184,7
973,2 20 289,2
Total shareholders` interest 46,6 1 157,5
Minority interest - (0,7)
Long-term loans 183,1 959,9
Insurance funds 417,6 435,6
Deposits and current accounts - 16 379,6
Other liabilities and provisions 174,6 1 263,9
Receiver of Revenue 151,3 93,4
973,2 20 289,2
COMMENTS
Overview of results
The Minister of Finance placed Saambou Bank, through which the Saambou
Holdings Group`s banking operations were conducted, under curatorship on
Saturday, 9 February 2002 because of an abnormal outflow of funds from Saambou
Bank, which resulted in it`s experiencing difficulties in maintaining required
levels of liquidity, As a result, the listing of Saambou Holdings on the JSE
Securities Exchange South Africa was suspended with effect from Monday,
11 February 2002.
Following Saambou Bank`s being placed under curatorship, it was necessary to
restructure certain interests within the Saambou Holdings Group, The Saambou
Holdings Group`s restructuring was effected in terms of the restructuring
agreement entered into mainly between Saambou Holdings and Saambou Bank and
dated 27 March 2002. The salient terms of the restructuring agreement were
disclosed to shareholders in a circular dated 15 August 2002 and approved at a
General Meeting held on 30 August 2002.
The net loss before tax for the year ended 31 March 2002 for the Saambou
Holdings Group amounted to R1 147,1 million (2001: Income of R335,6 million),
The principal cause for the loss was the full impairment of R1 525,8 million
raised against the investment in Saambou Bank. The net income/(loss) before tax
of continuing and discontinued operations can be summarised as follows:
2002 2001
Rm Rm
Continuing operations 391,4 275,3
(Saambou Life, Natsure and Saambou Holdings)
Discontinued operations (1 538,5) 60,3
(Saambou Bank under Curatorship
and subsidiaries sold in terms of the
restructuring agreement)
(1 147,1) 335,6
Post Balance Sheet events
1. Saambou Bank disposal
The curator of Saambou Bank, after having managed a process in which several
financial institutions were invited to bid for the shares in or the business of
Saambou Bank, proposed the disposal of Saambou Bank to FirstRand Bank Holdings
as the only viable transaction for Saambou Bank stakeholders, In terms of the
Saambou Bank disposal agreement, FirstRand Bank Holdings acquired all of the
shares in and claims against Saambou Bank for R1, subject to the Saambou Bank
conditions precedent, Following the Saambou Bank disposal, Saambou Holdings had
no further exposure to Saambou Bank or any of its underlying assets or
liabilities.
2. Saambou Life disposal
Saambou Life derived its flow of new business principally from Saambou Bank,
Following the curatorship of Saambou Bank, the directors of Saambou Holdings
considered it appropriate to sell Saambou Life to a party with full-time
involvement in the life assurance business, Accordingly, Saambou Life was
disposed of to Capital Alliance Life for an effective consideration of R402
million.
Prospects
Natsure is in the process of winding down its business, It is envisaged that
Natsure will be wound up and that a final distribution will be made to Saambou
Holdings.
The directors of Saambou Holdings are considering various alternatives relating
to:
- the early settlement of Saambou Holdings` obligations towards its promissory
note holders; and
- the resolution of a contingent liability to the South African Revenue Service
of approximately R60 million, which was disclosed to Saambou Holdings
shareholders in the circular dated 15 August 2002.
The directors of Saambou Holdings are also considering the declaration of a
preliminary distribution to Saambou Holdings shareholders before the resolution
of the above matters.
Once the above matters have been resolved, it is envisaged that Saambou Holdings
will be voluntarily wound up and that a final liquidation distribution will be
made to Saambou Holdings shareholders.
GENERAL
As a result of the above-mentioned information, it was deemed irrelevant to
disclose key figures regarding headline earnings per share, earnings per share
and net asset value per share.
The interim financial results for the period ended 30 September 2002 will be
published shortly.
Financial statements were prepared according to GAAP.
AUDIT OPINION
Qualified audit opinion was issued due to uncertainty about the ability of
the company to continue as a going concern.
D M Lawrence B P Botha
Chairman Director
25 February 2003
Joint auditors
Ernst & Young
Corporate Finance (Pty) Ltd.
(Registration number 2000/031575/07)
PricewaterhouseCoopers
PricewaterhouseCoopers
Corporate Finance (Pty) Ltd
(Registration number 1970/003711/07)
Registered office: Saambou Park,
Alkantrant Road
Lynnwood Manor
Pretoria 0081
PO Box 74127
Lynnwood Ridge 0040
Share Transfer Secretaries: Compureshare Investor Services Limited
11th Floor
70 Marshall Street
Johannesburg 2001
Date: 26/02/2003 07:00:04 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
