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Millionair -
Withdrawal of cautionary
MILLIONAIR CHARTER LIMITED
(Registration number 1993/000092/06)
Incorporated in the Republic of South Africa
("Millionair" or "the Company")
Share Code: MLL ISIN Number: ZAE000017810
AUDITED GROUP RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2003
BALANCE SHEETS
28 February 28 February
2003 2002
(Audited) (Audited)
Assets R R
Non-current assets 53,486,607 63,138,064
Tangible assets 53,086,606 62,685,798
Investment in subsidiaries - -
Investment in associate - 52,266
company
Investment 1 -
Loan receivable 400,000 400,000
Current assets 12,636,093 15,297,594
Trade and other receivables 12,325,659 9,709,589
Taxation - 4,782
Cash resources 310,434 5,583,223
Total assets 66,122,700 78,435,658
Equity and liabilities
Capital and reserves 7,513,993 19,119,616
Share capital 20,040,247 9,975,248
(Accumulated loss) (12,526,254) 9,680,585
/ Distributable
reserve
Minority interest in - (536,217)
subsidiaries
Non-current liabilities 38,368,532 47,416,526
Shareholder"s loan 1,050,000 7,210,739
Long term 32,824,865 36,210,931
liabilities
Deferred tax 4,493,667 3,994,856
Current 20,240,175 11,899,516
liabilities
Taxation 45,393 -
Trade and other payables 10,955,046 4,590,665
Current portion of long 8,152,818 7,146,520
term liabilities
Bank overdraft 732,227 -
Provision for leave pay 354,691 162,331
Total equity and 66,122,700 78,435,658
liabilities
Net asset value and 7,47 28,49
Tangible net asset value
per share (cents)
Tangible net asset value
per share
INCOME STATEMENTS
28 February 28 February 2002
2003
(Audited) (Audited)
R R
Gross revenue 94,143,693 66,513,965
Other operating income 2,205,857 2,525,094
Staff costs (12,422,514) (5,982,094)
Depreciation (9,906,770) (16,325,154)
Other operating expenses (97,585,223) (43,437,892)
Operating (loss)/profit (23,564,957) 3,293,919
Investment income 260,957 277,667
Finance costs (6,759,627) (3,155,238)
(Loss)/profit before (30,063,627) 416,348
taxation
Taxation (498,811) (274,184)
(Loss)/profit after (30,562,438) 142,164
taxation
Attributable to outside 440,164 536,267
shareholders to date of
disposal
(Loss) / Earnings (30,122,274) 678,431
attributable to ordinary
shareholders
(Loss)/Earnings per (33,10) 1.01
ordinary share (cents)
Headline(loss)/earnings per (34,31) 1.03
share (cents)
Reconciliation between
earnings and headline
earnings:
(Loss) / Earnings per the (30,122,274) 678,431
financial statements
Profit on disposal of (1,140,462) (1,667)
assets
Loss on impairment of 44,895 12,746
assets
Headline (Loss) / Earnings (31,217,841) 689,510
CASH FLOW STATEMENTS
28 February 28 February 2002
2003
(Audited) (Audited)
R R
Cash flows from operating (10,100,289) 13,471,711
activities
Cash receipts from 92,612,448 61,713,722
customers
Cash paid to suppliers and (96,264,242) (45,449,157)
employees
Cash (utilised (3,651,794) 16,264,565
in)/generated by operating
activities
Interest 260,957 277,667
received
Finance (6,759,627) (3,155,238)
costs
Taxation 50,175 84,717
refunded
Cash flows from investing 2,570,781 (39,409,428)
activities
Expenditure to maintain
operating capacity
Tangible assets acquired (4,035,700) (39,011,785)
Investments (1) (25)
made
Proceeds on disposal of 4,806,472 2,382
tangible assets
Proceeds on disposal of 1,800,010 -
subsidiaries
Increase in loan to - (400,000)
associate
Cash flows from financing 1,524,492 31,791,388
activities
Capital 10,064,999 -
raised
Loans 1,006,298 31,791,388
raised
Loans (9,546,805) -
repaid
(Decrease)/increase in cash (6,005,016) 5,853,671
and cash equivalents
Cash and cash equivalents 5,583,223 (270,448)
at beginning of year
Cash and cash equivalents (421,793) 5,583,223
at end of year
STATEMENT OF CHANGES IN EQUITY
Share Share Distributable Total
Capital premium reserve
(Accumulated
loss)
R R R R
Balance as at 01 March 336 9,974,912 9,002,154 18,977,402
2001
Net profit for the 678,431 678,431
year
Balance as at 01 March 336 9,974,912 9,680,585 19,655,833
2002
Net loss for the year (30,122,274) (30,122,274)
Issue of share capital 167 10,064,832 10,064,999
Capital gain on 7,189,881 7,189,881
disposal of investment
Capital gain on 725,554 725,554
disposal of
subsidiaries
Balance as at 28 503 20,039,744 (12,526,254) 7,513,993
February 2003
COMMENTARY
Sun Air Disposal
As announced on SENS on 17 February 2003 and 25 April 2003 and in the press on
18 February 2003 and 29 April 2003 respectively ("the announcements"), and as
per the circular posted to shareholders on 25 April 2003 ("the circular"), the
company during this reporting period for the year ended 28 February 2003
acquired the outstanding 50% share of Sun Air 2001 (Pty) Limited ("Sun Air") and
simultaneously sold 100% of Sun Air to CIRC Debt Management (Pty) Limited
("CIRC") ("the disposal"). These results reflect the loss written off of R 15
751 603 as a result of the disposal. Millionair remained optimistic about the
future of Sun Air. However, significant capital was required to fund Sun Air"s
operations for the foreseeable future. To ensure that Sun Air had access to
such funding and to provide Millionair with a substantial contractual income
from Sun Air, Millionair entered into the agreements relating to the disposal.
It remains the objective and intention of the company to secure Aircraft Crew
Maintenance and Insurance lease contracts for its fleet of aircraft, including
its two DC-9 aircraft currently in use by Sun Air. The disposal has ensured and
is in line with this objective and intention.
General
The company refurbished two of its McDonnell Douglas DC9-32 ("DC-9") aircraft,
which were used to start up the Sun Air schedule. Sun Air has been a tremendous
challenge and is now established as a MillionAir client. A three-year lease
contract has been entered into with CIRC, for a gross contract value of
US$10,404,000 ("the lease contract"). As part of the disposal agreements,
Millionair has purchased 10% of CIRC in order to continue to participate in the
upside of Sun Air. MillionAir has been rewarded for its high level of services
and professionalism by winning the ASATA Diners Club award for the best charter
company 2002. The company has won this award for the fourth consecutive year.
Woking capital and cash flow
The emphasis of matter referred to in the Audit report paragraph below was
issued as a result of the current liabilities exceeding the current assets. The
company"s cash flow for the two months ending 30 April 2003 has been positive.
Sun Air has increased the frequency of its routes and thus has exceeded its
guaranteed hours flown as per the lease contract.
Future plans and prospects
The general aviation charter division has remained stable and we expect our
market share to grow. The current strength of the Rand is affecting our earnings
negatively, but the company is focusing on cost cutting and the coming year
should be profitable. With the disposal of Sun Air, Millionair has re-focused on
its core business and is negotiating to supply two additional aircraft to its
various contract customers.
Basis of preparation of financial statements
These financial statements have been prepared in accordance with South African
Statements of Generally Accepted Accounting Practice and the accounting policies
used are consistent with the prior year.
Audit report
The consolidated results for the year have been audited by Taback Pelkowitz and
Berman ("the auditors"). Without qualifying their opinion the auditors draw the
attention shareholders by way of an emphasis of matter to the fact that these
statements have been prepared on the basis of accounting practices applicable to
a going concern. This basis presumes funds will be available to finance future
operations and that the realisation of assets and settlement of liabilities,
contingent obligations and commitments will occur in the ordinary course of
business. The ability of the company to continue as a going concern is dependant
on a number of factors. The most significant of these is the continuation of the
financial support of the major shareholders and the ability to continue with
profitable operations. The unqualified audit report is available for inspection
at the company"s registered office.
Results of General Meeting relating to the disposal
Shareholders are referred to the announcements and the circular wherein it was
detailed that the ratification by shareholders, in general meeting, would be
sought regarding the disposal. The company is now authorised to announce that,
at the adjourned general meeting of Millionair shareholders held on Tuesday, 13
May 2003, all of the ordinary resolutions to ratify the disposal were passed by
the requisite majority of Millionair shareholders.
Withdrawal of cautionary
Shareholders are referred to the further cautionary announcement published on
SENS on 2 April 2003, and are advised that as the negotiations referred to in
that announcements have been terminated, caution is no longer required in this
regard when dealing in their Millionair shares.
Dividend
The board of the company will consider the declaration of a dividend when
Millionair is profitable.
For and on behalf of the board
CMR Talevi
Chairman
16 May 2003
Directors:
CMR Talevi (Chairman), GJR Clarke (Managing Director)*, JJ Botha (Company
secretary)*, MC van Buuren*
*Executive director
Company Registered address:
Block E No. 9 Lower Roof, East Wing, Johannesburg International Airport
P O Box 304, Lanseria, 1748
Sponsor:
Sasfin Bank Limited, 13 - 15 Scott Street, Waverley 2090.
PO Box 95104, Grant Park, 2051
Transfer Secretaries:
Computershare Investor Services Limited, 70 Marshall Street, Johannesburg 2001.
PO Box 61051, Marshalltown, 2107
Date: 16/05/2003 05:30:09 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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