| Wed 16 Apr 2003, 16:32 | | PRELIMINARY UNREVIEWED RESULTS FOR THE YEAR ENDED |
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Viking -
CAUTIONARY ANNOUNCEMENT
VIKING INVESTMENTS & ASSET MANAGEMENT LTD
Incorporated in the Republic of South Africa
Registration Number 1998/04440/06
Share Code: VKG ISIN: ZAE000015871
"Viking" or "the company"
PRELIMINARY UNREVIEWED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2002 AND
CAUTIONARY ANNOUNCEMENT
HIGHLIGHTS
Increase in headline earnings per share to 11.1cents
Finalisation of purchase of 51% stake in Metech International LLC.
Viking Platinum signs R1.2 billion 3-year supply agreement with Western
Platinum Ltd.
Earnings affected by strong Rand.
FINANCIAL PERFORMANCE
Viking has continued with its strategy of focussing on resource-based
businesses. This has culminated in posting a profit of R12.256 million,
after making a loss of R4.8m during the 2001 financial year. This
included the Metech International LLC ("Metech") acquisition. Metech has
contributed four months of earnings to these results.
REVIEW OF OPERATIONS
SOUTH AFRICA
Digital Current
Digital Current (DC) continued modifications and upgrades while at the
same time approached final stages of its development on its patented PC/TV
data and digital TV receiver unit. The unit was upgraded to include its
own hard drive for data and content storage. DC has formed a close
working relationship with Sentech through Sentech"s ownership of Infosat
(DC entered into a joint venture with Infosat). Sentech is currently busy
with a Digital Terrestrial Television roll out.
Prefunding
This actuarial software company is in the process of an empowerment deal
and has a joint venture with Hollard Life Assurance Co Ltd.
UNITED STATES
Viking holds its interests in the US in a wholly owned subsidiary Viking
Resources LLC. Viking owns 100% of Viking Platinum LLC ("ViPlats") and
51% of Metech. Final audited figures will be issued when the due
diligence of Metech"s new inventory accounting system is completed.
Metech
Viking concluded its second overseas transaction culminating in a 51%
stake in Metech for $12.614 Million. Management holds the remaining 49%.
This was funded through the sale of inventory as well as debt financing
through the securing of assets. Metech has been in existence since 1965
and was a previously wholly owned subsidiary of Trelleborg AB. Metech"s
focus is the recycling of precious metals from electronic and other scrap.
Precious metals recycled are predominantly platinum, palladium, gold and
silver. Metech has operations on both the East and West coasts of the
USA. Metech"s share in the US market is estimated to be in excess of 20%.
ViPlats
At the end of the year ViPlats signed a 3-year R1.2 billion supply
agreement with Western Platinum Ltd (WPL) a subsidiary of Lonmin PLC. The
financing of this contract is currently being finalised to meet the
phasing in and stepping up nature of this contract. Viking Platinum is in
the business of the extraction and processing of Platinum Group Metals
(PGM"s) from catalytic converters. Viking now owns 100% of ViPlats,
having acquired Westbury Metals Group"s 25% stake in the latter half of
the year.
PROSPECTS
Both the US based businesses are working capital intensive and the
challenge is to manage this correctly and at the right cost. Optimisation
of these costs and financial structuring is the key to delivering
significant returns to shareholders. The financial position is currently
being restructured to ensure long-term viability and profitability.
Additional income will be derived from the trading of metals produced.
The long-term growth in recycling as a source of supply can be attributed
to a number of factors. The global drive towards sustainable development,
therefore stricter application of and increasing legislation on material
usage and disposal. Improving economic incentives, which are anticipated
to be legislation driven. Cost and benefits of pre-processing relative to
the cost of mining and processing of primary metal. Shortening product
life cycles and useful life of the products made from these commodities.
DIVIDENDS
No ordinary dividends have been declared for the year ended 31 December
2002.
On behalf of the board
LRC Coogan LE Birkholtz
CEO Secretary
16 April 2003
Directors
LRC Coogan, ME Walsh, KO Fordwor* (Ghanaian), RA Legh*, D C Mostert,
* Non-executive director
Registered office and business address
Block H, Peter Place Park, 54 Peter Place, Bryanston, 2021
Transfer Secretaries:
Computershare Services Ltd, 4th Floor, Edura, 41 Fox Street, Johannesburg, 2001
Telephone: (011) 463 8872
Income Statement
Unaudited Audited
2002 2001
R000s R000s
Revenue 531 381 24 232
Operating (loss)profit before 61 796 (6 882)
depreciation and interest
Depreciation (3 056) (285)
Net interest (paid) received (5 174) (128)
(Loss)Profit before taxation 53 566 (7 295)
Taxation 22 039 2 189 350
Minority interest 19 271
(Loss)Profit after taxation 12 256 (4 756)
Headline (Loss)Earnings per share 11.1 (4.72)
(cents)
Earnings per share 11.1 (4.72)
Number of shares in issue 120 791 321 105 000 000
Balance Sheet
Unaudited Audited
31 December 31 December
2002 2001
R000s R000s
ASSETS
Non-current assets
Property, equipment & goodwill 38 625 14 816
Current assets
Available for sale - financial 19 185 22 892
assets
Inventory, accounts receivable and 190 879 9 525
prepayments
Cash resources 7 238 9 187
217 302 41 604
Total assets 255 927 56 420
EQUITY AND LIABILITIES
Capital and reserves
Ordinary share capital 2 416 2 100
Foreign exchange (losses) gains (8 354)
Share premium 34 653 5 075
Distributable reserves 28 649 16 394
57 364 23 569
Non-current liabilities
Deferred tax 1 653 1 068
Borrowings 8 670
Minority shareholders interest 19 271 3 639
29 594 4 707
Current liabilities
Accounts and other payables 141 893 3 997
Short-term loans 0 24 147
Taxation 21 434
Bank overdraft 5 642
168 969 28 144
Total equity and liabilities 255 927 56 420
Cash Flow Statement
Unaudited Audited
2002 2001
R000s R000s
Cash flows from operating activities 3 534 (8 127)
Cash flows from investing activities (30 477) (12 718)
Cash flows from financing activities 19 352 29 322
Net (decrease) increase in cash and cash (7 591) 8 477
equivalents
Opening cash and cash equivalents 9 187 710
Closing cash and cash equivalents 1 596 9 187
Statement of changes in equity
Share Share Exchange Accumulated Total
Capital Premium Rate Profits
Adjustments
R000s R000s R000s R000s R000s
Balance at 1 2 000 - 21 149 23 149
Jan 2001
Profit/(Loss)
for the year (4 756) (4 756)
Shares issued 100 5 075 5 175
Balance at 31 2 100 5 075 16 393 23 568
Dec 2001
Shares issued 316 29 578 29 894
Exchange rate
(loss)profit (8 354) (8 354)
Profit for 12 256 12 256
the year
Balance at 31 2 416 34 653 (8 354) 28 649 57 364
Dec 2002
The financial statements have been prepared in accordance with South African
Statements of Generally Accepted Accounting Practice and the basis of
preparation and the accounting policies applied are consistent with those
applied in the previous financial year 31 December 2001.
Cautionary
Shareholders are advised that these results have not been audited or reviewed.
The reason for the delay is the non-completion of the due diligence of the new
inventory and accounting system of Metech International LLC. Accordingly,
shareholders are advised to exercise caution in dealing in the company"s shares
until a further announcement is made.
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Limited
16 April 2003
