| Thu 29 May 2003, 17:43 | | Reviewed Interim Results For The Six Months Ended |
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Reviewed Interim Results For The Six Months Ended 28 February 2003
Admiral Leisure World Limited
(Incorporated in the Republic of South Africa)
(Registration Number 1938/011493/06)
Share Code ALD ISIN ZAE000010229)
("THE GROUP")
REVIEWED INTERIM RESULTS FOR THE SIX MONTHS ENDED 28 FEBRUARY 2003
CONSOLIDATED BALANCE SHEET
Reviewed at Unaudited at Audited at
(in ZAR) 28 Feb 2003 28 Feb 2002 31 Aug 2002
Assets
Non-current assets 4 583 585 7 357 482 6 442 035
Fixed assets 4 120 406 5 165 047 4 589 180
Loans receivable 386 875 743 486 386 875
Accounts receivable 76 304 1 448 949 1 465 980
Current assets 4 034 182 4 334 428 2 673 226
Inventories 1 228 124 1 552 526 947 747
Accounts receivable 709 880 656 302 172 408
Taxation 10 094 46 137 10 094
Cash resources 2 086 084 1 276 156 1 542 977
Total assets 8 617 767 11 691 910 9 115 261
Equity and Liabilities
Capital and reserves 4 712 556 7 655 834 5 893 568
Issued capital 62 193 750 62 193 750 62 193 750
Non-distributable reserve 71 189 71 189 71 189
Accumulated loss (57 552 383) (54 609 105) (56 371 371)
Non-current liabilities 1 890 636 761 398 384 350
Long-term liabilities 438 898 725 149 363 012
Loan from holding company 1 430 400
Deferred Taxation 21 338 36 249 21 338
Current liabilities 2 014 575 3 274 678 2 837 343
Accounts payable 1 575 465 2 340 148 2 020 222
Taxation 119 639 162 119 205 251
Bank overdraft 319 471 772 411 611 870
Total equity and liabilities 8 617 767 11 691 910 9 115 261
Number of shares in issue 34 952 500 34 952 500 34 952 500
Net asset value per share (cents) 13 22 17
CONSOLIDATED INCOME STATEMENT
Reviewed Unaudited Audited
6 months to 6 months to 12 months to
(in ZAR) 28 Feb 2003 28 Feb 2002 31 Aug 2002
Gross revenue 7 337 732 7 892 919 14 857 486
Other income 162 744 618 963 639 156
Operating expenses 8 637 155 7 957 643 16 725 352
Net (loss)/profit before taxation (1 136 679) 554 239 (1 228 710)
Taxation 44 333 15 539 (5 144)
Net (loss)/profit after taxation (1 181 012) 538 700 (1 223 566)
Net (loss)/profit (1 181 012) 538 700 (1 223 566)
Accumulated loss at beginning
of period (56 371 371) (55 147 805) (55 147 805)
Accumulated loss at end of period (57 552 383) (54 609 105) (56 371 371)
(Loss)/Earnings per share (cents) (3,38) 1,54 (3,50)
Headline (loss)/earnings per
share (cents) (3,27) 1,46 (3,66)
Reconciliation between basic
loss and headline loss
Basic (loss)/profit (1 181 012) 538 700 (1 223 566)
Loss/(Profit) on disposal of
fixed assets 39 419 (29 951) (55 583)
Headline (loss)/profit (1 141 593) 508 749 (1 279 149)
CONSOLIDATED CASH FLOW STATEMENT
Reviewed Unaudited Audited
6 months to 6 months to 12 months to
(in ZAR) 28 Feb 2003 28 Feb 2002 31 Aug 2002
Cash flows from operating activities (371 934) (49 542) 440 667
Cash flows from investing activities (298 846) (38 489) 53 002
Cash flows from financing activities 1 506 286 73 098 (289 039)
Net increase/(decrease) in cash
and cash equivalents 835 506 (14 933) 204 630
Cash and cash equivalents at
beginning of the period 931 107 726 477 726 477
Cash and cash equivalents at end
of period 1 766 613 711 544 931 107
STATEMENT OF CHANGES IN EQUITY
for the six months ended 28 February 2003
Non-
Issued distributable Accumulated
(in ZAR) capital reserves losses Total
Balance as at 31 August 2002 62 193 750 71 189 (56 371 371) 5 893 568
Loss for the six months (1 181 012) (1 181 012)
Balance as at 28 February 2003 62 193 750 71 189 (57 552 383) 4 712 556
Comments
The takeover of the Group by Austrian Gaming Industries GmbH (AGI) dominated
events in the first half of the year. AGI has brought financial stability to the
Group by providing a cash injection that will primarily be used for the
upgrading of operations in the various regions. Furthermore, the gaming
expertise, which AGI brings to the Group, should prove invaluable in
restructuring the operational and management activities of the Group, which in
turn should ensure Group profitability in the future.
The operating loss for the period of R1 181 012 is obviously disappointing
but, the Board believes that once the upgrades at the regions and the
restructuring is completed, the Group should generate profits.
Operations
The Group operates its two licenced Casinos in Botswana, the Public Lottery
Licence in the Kingdom of Swaziland and its licensed Limited Payout Machine
(LPM) facilities in Namibia. The Group also supplies, services and maintains
LPMs and terminals under contract with third parties in Namibia and Swaziland.
The Group"s operations are controlled from its head office in Midrand,
Gauteng, South Africa through its various regional offices.
The interim financial statements have been prepared on the basis of
accounting practices applicable to a going concern. This basis presumes that
funds will be available to finance future operations and that the realisation of
assets and the settlement of liabilities, contingent obligations and commitments
will occur in the ordinary course of business. In this regard refer to "Review
Opinion" hereunder.
Summary
The future viability of the Group has for too long been reliant on the
potential LPM industry in South Africa. This has in many ways led to the Group
losing sight of its primary objectives. The Board"s modified strategy is,
therefore, to focus on current operations and ensure that these are functioning
to their full potential and only then diversifying into new areas. This does not
in any way preclude the Group from taking expansionary steps in the future, but
simply draws attention to the fact that our future viability is based on current
operations.
Accounting Policies and Review Opinion
The abridged interim financial statements for the six months ended 28
February 2003 are consistent with the Group"s Accounting Policies and are in
compliance with South African standards of Generally Accepted Accounting
Practice. The interim financial statements have been reviewed by Papilsky
Hurwitz. The Report contains the following emphasis of matter - "Without
qualifying our opinion we draw your attention to the fact that the Group is
dependent on Austrian Gaming Industries GmbH to provide ongoing finance for its
business activities for the foreseeable future. The Group has assumed that this
finance will be available and it is on this assumption that the abridged interim
financial statements have been prepared on a going concern basis" - the Review
Report is available for inspection at the Group"s registered office.
General
No dividend has been declared for the period under review.
By order of the Board
W W Banks (Chief Executive Officer)
Midrand
30 May 2003
Directors:
J Halle - Austrian (Chairman )
M A Werner - (Deputy Chairman - resigned 31/01/03)
W W Banks - (Chief Executive Officer)
M S Abdullah - (Non-Executive Director )
D C Khama - Motswana (Non-Executive Director)
Registered Office:
151 Lechwe Street
Corporate Park
Midrand, 1685, Gauteng, South Africa
PO Box 6160
Halfway House, 1685, Gauteng, South Africa
Transfer Secretaries:
Computershare Investor Services Limited
70 Marshall Street
Johannesburg, 2001, Gauteng, South Africa
PO Box 1053
Johannesburg, 2000, Gauteng, South Africa
