| Fri 30 May 2003, 8:59 | | Audited Results For The Year Ended 28 February 200 |
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IMR Investments Limited -
IMR Investments Limited
Reg No. 1998/017351/06
Share code: IMR
ISIN: ZAE000027470
("IMR" or "the company")
AUDITED RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2003
INCOME STATEMENT
Group Company
Audited Audited Audited Audited
2003 2002 2003 2002
R"000 R"000 R"000 R"000
Revenue 3 354 1 577 943 5
Net interest received 412 1 125 4 5
Dividends received 92 - - -
Realised profit on investments 1 710 - - -
Unrealised profit on investments 1 140 452 - -
Other income - - 939 -
Operating expenses (3 615) (2 913) (2 576) (5 038)
Loss from normal operations (261) (1 336) (1 633) (5 033)
Goodwill written off (1 701) - - -
Net loss before taxation (1 962) (1 336) (1 633) (5 033)
Taxation (4) (802) (4) (397)
Net loss for the year before
minority interest (1 966) (2 138) (1 637) (5 430)
Minority interest - - - -
Net loss for the year (1 966) (2 138) (1 637) (5 430)
Reconciliation of headline loss
Net loss for the year (1 966) (2 138)
Goodwill written off 1 701 -
Headline loss (265) (2 138)
Loss per share (cents) 6.4 6.7
Headline loss per share (cents) 0.9 6.7
NAV per share (cents) 27.8 33.3
CASH FLOW STATEMENT
Group Company
Audited Audited Audited Audited
2003 2002 2003 2002
R"000 R"000 R"000 R"000
Cash flows from operating activities (681) (19 542) (1 066) 583
Cash flows from investing activities 2 438 5 679 2 438 -
Cash flows from financing activities (362) - (362) -
Net (decrease)/increase for the year 1 395 (17 393) 1 008 583
Cash and cash equivalents at
beginning of the year 5 436 22 829 137 (446)
Cash and cash equivalents at
end of year 6 831 5 436 1 145 137
BALANCE SHEET
Group Company
Audited Audited Audited Audited
2003 2002 2003 2002
R"000 R"000 R"000 R"000
Assets
Non-current assets 240 - 240 -
Property, plant and equipment 240 - 240 -
Current assets 16 846 21 202 62 635 46 533
Investments 7 684 12 562 488 3 188
Loans receivable 1 905 1 452 60 650 43 052
Current receivables 426 1 752 352 156
Short-term deposits and cash 6 831 5 436 1 145 137
Total assets 17 086 21 202 62 875 46 533
Equity and liabilities
Capital and reserves 8 450 10 311 13 781 (3 124)
Ordinary share capital 304 3 100 333 3 445
Ordinary share premium 2 901 - 25 808 23 059
Non-distributable reserves 7 165 7 165 - -
Distributable reserves (1 920) 46 (12 360) (29 628)
Current liabilities 8 636 10 891 49 094 49 657
Loans payable 1 380 3 594 48 628 49 553
Current payables 7 256 7 297 466 104
Total equity and liabilities 17 086 21 202 62 875 46 533
STATEMENT OF CHANGES IN EQUITY
Non-
Share Share Distributable Distributable
capital premium reserves reserves Total
R"000 R"000 R"000 R"000 R"000
Balance at beginning
of the year 3 100 - 7 165 46 10 311
Movement in share capital (2 796) - - - (2 796)
Movement in share premium - 2 901 - - 2 901
Net loss for the year - - - (1 966) (1 966)
Balance at end of the year 304 2 901 7 165 (1 920) 8 450
COMMENTS
General
February 2003 marked IMR"s fourth successful year as a listed entity on the
JSE Securities Exchange South Africa. This was achieved despite intense global
uncertainty characterised by international conflict and instability.
Consequently, this global climate encouraged IMR to focus on opportunities in
South Africa. The company continued with its programme of consolidation and
stabilisation, with the goal of realising cash and preparing for the financial
year ahead.
The company successfully converted a number of its assets into cash. IMR has
also identified several investment opportunities which have been reviewed and
assessed for implementation.
As discussed in the interim report, liquidity is still a preferred objective.
Review of Operations
A. NET ASSET VALUE
Net Asset Value (NAV) the premium measure of IMR"s value declined mainly as a
result of the diminution in the value of IMR"s remaining assets of R1.7 million.
Revenue consists of interest and dividends as well as both realised and
unrealised profit on investments on the disposal and write-up of investments.
Losses on investments are accounted for in expenses.
Operating expenses include the prudent treatment of all expenditure
undertaken by the company including certain items that relate to previous
periods and are expected to be of a non-recurring nature. This includes the
write-down of balance sheet items that in the opinion of the directors may not
be recoverable. The board expects a reduction in operating expenditure as a
percentage of revenue in the future.
Goodwill arose from an outstanding acquisition obligation relating to the
company as T.A.G. Ltd. The transaction was completed in the 2003 financial year
and the full amount has been written off to the income statement in the current
year.
In line with our objectives the company is pleased to report an increase in
cash resources from R5.4 million to R6.8 million and anticipates continuing this
trend.
The net asset value equates to 27.8 cents per share and is defined in the
balance sheet above.
B. Contingent Liabilities
Certain litigation is pending against IMR, which, in the opinion of legal
counsel and the directors, can be successfully defended. Other potential claims
are adequately covered by provisions and counter claims.
C. Listed Investments
A number of developments in relation to the company"s listed investments have
taken place.
1. On 2 February 2003 Forza Group Ltd implemented its offer to minority
shareholders (including IMR) when 20 cents per share was realised. The total
proceeds from this equated to R5.7 million.
2. At year-end, PSG Group Limited proposed a scheme of arrangement in terms
of section 311 of the Companies Act of 1973 for which scheme participants would
receive a consideration of 9 cents per Appleton Limited share payable in cash.
IMR owns approximately 32 million shares in Appleton Limited.
3. IMR owns approximately 5 per cent of the issued share capital of Labat
Holdings Limited (9.3 million shares). The closing share price at year end was
47 cents (2002: 39 cents).
D. Unlisted Investments
During the year, the directors of the company assessed a number of private
equity and venture capital opportunities. As detailed before, the implementation
of any transaction was cautiously evaluated. At year-end the company had
successfully concluded certain business relationships resulting in the
acquisition and/or funding of two premier on-line gaming sites: LottoFun.co.za
and LottoManager.co.za. The board is encouraged by the potential prospects of
these entities.
E. Other Operational Developments
1. On 28 November 2002, the company issued a circular to shareholders
regarding an authority for the increase in the authorised share capital of IMR
Investments, and an authority to reduce the par value of IMR"s ordinary shares
from 10 cents to 1 cent each. These resolutions were successfully adopted at a
general meeting of shareholders held on 20 December 2002.
2. As disclosed, the company envisages the need to be in a position to raise
further capital and/or to issue shares. Further details of these intentions will
be communicated in due course.
3. The company moved its business operations and registered office to
Melrose Arch in Johannesburg.
4. The audited results have been prepared according to South African
Statements of Generally Accepted Accounting Practice. Accounting policies
applied are consistent with those applied in the previous financial year. These
audited financials have been prepared by Deloitte and Touche and the audit
opinion in available for inspection at the registered office.
F. Post Balance Sheet Events
1. The board welcomes Wayne Rosenberg in his capacity as a full time
executive director of the company. The company anticipates a significant benefit
from his wealth of operational expertise and experience.
2. On 14 April 2003, the scheme of arrangement in terms of section 311 of
the Companies Act of 1973 was successfully implemented by the PSG Group Limited
to the minorities of Appleton Limited. As a scheme participant, IMR received
approximately R2.9 million in cash.
3. Prospects and Outlook
In the year under review the board has successfully realised two of its three
major listed investments. The resultant increase in cash resources allows the
board to evaluate investment opportunities from a position of relative strength.
Despite the uncertain global outlook, IMR is cautiously optimistic about the
financial year ahead.
The board wishes to thank the directors, staff, attorneys, auditors and
advisers for their ongoing efforts throughout the year.
By order of the Board
S D Shane J M Schmulian
Chief Executive Financial Director
Johannesburg
30 May 2003
Directors:
Stanley D Shane (CEO),
Jason Schmulian (Financial),
Armin H Diem* (Austria),
Scott M Campbell (New Zealand),
Wayne Rosenberg
*Non-executive
Registered Address:
10 Melrose Boulevard, Melrose Arch 2132
PO Box 97, Melrose Arch 2076
Telephone: (011) 684-1055/6/7
Facsimile: (011) 684-1058
Transfer Secretaries:
Computershare Investor Services Limited,
70 Marshall Street,
Johannesburg
2001
Date: 30/05/2003 07:58:00 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
