| Wed 19 Mar 2003, 14:16 | | CONGELLA FEDERATION LIMITED - AUDITED RESULTS 2002 |
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CONGELLA FEDERATION LIMITED
Registration No 1947/025767/06
SHARE CODE : CNF
ISIN NO : ZAE000001624
AUDITED RESULTS 2002 AND DIVIDEND DECLARATION
EARNINGS PER SHARE INCREASED BY 9.5%
DIVIDENDS INCREASED BY 14.8%
CAUTIONARY ANNOUNCEMENT
The Group audited results for the year ended 31 December 2002 are as follows:
GROUP INCOME STATEMENT
2002 2001
(R000) (R000)
Profit before including the following items 7 245 7 058
Depreciation (60) (59)
Dividends received 564 586
Net interest received 855 163
Fair value adjustment 3 582 0
Surplus on realisation of investments 1 784 8 985
Profit before taxation 13 970 16 733
Taxation (2 733) (2 383)
Profit after taxation 11 237 14 350
Transfer to capital profits reserve (1 784) (8 985)
Fair value adjustment (3 582) 0
Preference dividend paid (7) (7)
Profit attributable to ordinary
Shareholders 5 864 5 358
Ordinary shares issued (000) 847 847
Earnings per ordinary share (cents)
Total Earnings per share (cents) 1325.9 1693.4
Surplus on disposal of investments (cents) (210.6) (1060.8)
Fair value adjustment (cents) (422.9) 0.0
Headline earnings per share (cents) 692.4 632.6
Dividends
Per share (cents) 396.0 345.0
Times covered 1.7 1.8
Net asset value per ordinary share
- At book value (cents) 9025 8230
- At market value (cents) 10335 10221
Investments listed at market value 10 499 17 954
Land and buildings
Market value (directors" valuation) 73 800 64 825
Capital expenditure 5 453 3 554
Capital expenditure committed/authorised 0 3 681
ABRIDGED BALANCE SHEET
2002 2001
(R000) (R000)
Assets
Property, plant and equipment 73 800 43 691
Other investments 5 676 6 864
Current assets 1 521 1 790
Total Assets 80 997 52 345
Equity and Liabilities
Shareholders" equity 78 076 48 685
Deferred tax 374 346
Current liabilities 2 547 3 314
Total equity and liabilities 80 997 52 345
ABRIDGED CASH FLOW STATEMENTS
Net cash inflows/(outflows) from
operating activities 3 290 (2 004)
Net cash (outflows)/inflows from
investing activities (2 480) 2 432
Net increase in cash equivalents 810 428
Cash and cash equivalents
at beginning of year 471 43
Cash and cash equivalents at end of year 1 281 471
Statement of Changes in Equity
Share capital and share premium 1 073 1 073
Non-distributable reserve 100 100
Capital profits reserve 19 768 17 984
Balance at beginning 17 984 8 999
Capital profits reserve 1 784 8 985
Retained income 57 135 29 528
Balance at beginning 29 528 26 804
Fair value adjustment 21 134 0
Profit for year 11 237 14 350
Capital profits (1 784) (8 985)
Dividends (2 980) (2 641)
Shareholders equity 78 076 48 685
Comment
Income attributable to ordinary shareholders increased by 9.5%. As expected
gross rentals from the Group"s nine developed properties increased by 5.4% over
last year. All properties remained almost fully let with a vacancy factor of
0.5%.
Properties
The industrial property letting market continues to be difficult with renewal
rentals either remaining static or in some instances declining. Notwithstanding
this, gross rentals for 2003 are forecast to improve. The vacant land in the
Redhill Industrial Park, North Coast Road, Durban, with a value of approximately
R1.2 million and recently acquired vacant land (measuring approximately 12.698
square metres) adjacent to the new development at Springfield Industrial Park
with a value of approximately R3.7 million remain undeveloped.
Accounting Policies
This report has been prepared in compliance with the South African Statements of
Generally Accepted Accounting Practice and in accordance with the principles
applied in the most recently published Annual Financial Statements, except for
as stated below.
During the year the Group changed its accounting policy with respect to
investment properties in order to comply with South African Statements of
Generally Accepted Accounting Practice and has resulted in an increase in net
profit of R3,582,241 due to an adjustment for the fair value of investment
properties. Due to the fact that the comparative figures are not restated under
the transitional provisions of AC 135, certain items are not directly comparable
on a line-for-line basis with that of prior financial periods.
Dividend Declaration
A final ordinary dividend number 97 of 329 cents (2001 : 284 cents) per share
has been declared payable to shareholders. The dividend will be paid on
Monday,14 April 2003. To comply with the procedure of Strate the last day to
trade in the shares for the purpose of entitlement to the final dividend is
Friday, 4 April 2003. The shares will commence trading ex dividend on Monday, 7
April 2003 and the record date will be Friday, 11 April 2003. Share
certificates may not be dematerialised or rematerialised between Monday, 7 April
2003 and Friday, 11 April 2003.
Further Cautionary Announcement
Further to the cautionary announcements made by Congella Federation Limited on
17 September 2002, 30 October 2002, 17 December 2002 and 29 January 2003,
shareholders" attention is also drawn to the various announcements made by the
company"s controlling shareholder, Commercial Finance Company Limited, which was
placed in voluntary liquidation on 20 December 2002. As a consequence tenders
are being invited for the Group"s property portfolio, or alternatively for the
shares in Congella Federation Limited. Shareholders are advised to continue to
exercise caution when dealing in the company"s securities until the outcome of
this process is reported to shareholders through a detailed announcement.
Audited Results
A copy of the unqualified audit opinion of the auditors, KPMG Inc, on the Group
results is available for inspection at the registered office of the company.
The Annual report including the Financial Statements detailing the results and
activities of the Group will be mailed to shareholders on or about 20 March
2003.
Durban
19 March 2003
By Order of the Board
W J SWAIN (CHAIRMAN)
D E DAUGHERTY (DIRECTOR)
Transfer Secretaries
Computershare Investor Services Ltd
P O Box 61051, Marshalltown, 2107
Registered Office
1100 Mansion House
Field Street, Durban, 4001
