| Fri 30 May 2003, 9:39 | | Trematon Capital Investments Ltd - Reviewed Interi |
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TREMATON CAPITAL INVESTMENTS LTD - REVIEWED INTERIM REPORT FOR THE SIX MONTHS
ENDED28 FEBRUARY 2003 AND FURTHER CAUTIONARY ANNOUNCEMENT
TREMATON CAPITAL INVESTMENTS LTD
(Incorporated in the Republic of South Africa)
(Registration number 1997/008691/06)
Share Code : TMT
Isin : ZAE000013991
REVIEWED INTERIM REPORT FOR THE SIX MONTHS ENDED
28 FEBRUARY 2003 AND FURTHER CAUTIONARY ANNOUNCEMENT
Group income statement
Six (Audited)
months to Six Twelve
28 months to months to
February 28 31 August
2003 February 2002
R000 2002 R000
R000
Net interest (paid)/received (330) (75) 817
Net management and statutory (1 223) (1 036) (2 022)
expenses
Loss from operations (1 553) (1 111) (1 205)
Investment valuation adjustments
- Fair value movements, losses and (15 769) 3 298 (59 602)
write-downs
Profit/(loss) before taxation (17 323) 2 187 (60 807)
Taxation - - -
Profit/(loss) after taxation (17 323) 2 187 (60 807)
Loss from associates (3 011) (1 289) (1 252)
Income/(loss) for the period (20 333) 898 (62 059)
Headline loss per share (cents) (19,3) 0,8 (52,0)
Earnings/(loss) per share (cents) (19,3) 0,8 (56,8)
Weighted average number of shares in 105 168 109 200 109 200
issue (000)
Reconciliation between income/(loss)
and headline earnings/(loss)
Income/(loss) attributable to (20 333) 898 (62 059)
shareholders
Profit on disposal of investments - - 5 252
Headline earnings/(loss) (20 333) 898 (56 807)
attributable to
shareholders
Group balance sheet
28 28 31 August
February February 2002
2003 2002 R000
R000 R000
ASSETS
Non-current assets
Property, plant and equipment - 713 586
Investments in associates - 6 124 3 859
Investments 7 485 103 327 21 713
Current assets 349 1 870 1 158
Accounts receivable 349 378 794
Proceeds on sale of investments - 1 492 -
Cash resources and short term - - 364
loans
TOTAL ASSETS 7 834 112 034 27 316
EQUITY AND LIABILITIES
Ordinary shareholders" interest 2 943 94 297 23 276
Non-current liabilities
Convertible debentures - 10 562 -
Current liabilities 4 891 7 175 4 040
Provisions and accounts payable 32 3 152 595
Interest bearing debt 4 859 4 023 3 445
TOTAL EQUITY AND LIABILITIES 7 834 112 034 27 316
Net asset value per share (cents) 2,8 86 22
Fully diluted net asset value per 2,8 91 22
share (cents) 105 168 109 200 105 168
Number of shares in issue (`000) 105 168 115 210 105 168
Diluted number of shares in issue
(`000)
Cash flow statements
28 28 31
February February August
2003 2002 2002
R000 R000 R000
Cash outflows from operating (1 778) (660) (4 019)
activities
Cash outflows from investing - (1 181) -
activities
Cash flows from financing 1 414 - 6 219
activities
Net movement in cash and cash 364 (1 841) 2 200
equivalents
Statement of changes in equity
Retained
Share Share income/
Capital Premium (Accumulated Total
R"000 R"000 Loss) R"000
R"000
Balance at 1 September 2001 1 092 171 235 (78 928) 93 399
Net income for the period - - 898 898
Balance at 28 February 2002 1 092 171 235 (78 030) 94 297
Shares cancelled (40) (8 024) (8 064)
Net loss for the period (62 957) (62 957)
Balance at 31 August 2002 1 052 163 211 (140 987) 23 276
Net loss for the period (20 333) (20 333)
Balance at 28 February 2003 1 052 163 211 (161 320) 2 943
REVIEW OF RESULTS
During the six month period under review, Trematon"s net asset value per share
decreased from 22 cents to 2,8 cents mainly as a result of the fall in the share
price of Intec Telecoms PLC ("Intec"). The headline loss per share for the
period of 19,3 cents compares with the headline profit of 0,8 cents for the
corresponding period in 2002 and the headline loss of 52 cents for the year
ended 31 August 2002.
During February the Group disposed of its investments, other than those in Mican
Ltd ("Mican") and Gracefield Investments (Pty) Ltd ("Gracefield"), to a
consortium comprising an investment bank, non executive director Mr R E Sherrell
and Trematon executive management, including CEO Mr R B McElligott. The purchase
consideration was nominal but exceeded the aggregate carrying value of the
investments. The effect of this transaction is that Trematon will no longer be
required to continue funding the entities disposed of and will substantially
reduce its operating costs by virtue of no longer having any full time executive
management. This transaction was approved by a disinterested quorum of
directors.
Trematon"s only investments now comprise those in Mican and Gracefield. Mican"s
most significant asset is its shareholding in Intec, which thus indirectly is
also Trematon"s most significant asset. The market price of Intec shares fell
from 22p at 31 August 2002 to 17,5p at 28 February. Intec improved its operating
performance for the six month period ended 31 March 2003 despite a background of
difficult and competitive market conditions. Its EBITDA earnings for the period
grew by 155% to GBP1,928,000 from GBP755 000 in 2002. Intec"s adjusted earnings
per share for the period was 0.5p (2002 : 0,13p loss).
The value of the Group"s other IT investments namely its attributable
investments in Iocore OY (Finland), Adaptive Systems (Denmark, Norway and
Sweden) and Iocore SA (South Africa) and Iocore Australia, held by Mican and
Gracefield also continue to be negatively affected by market conditions and
sentiment.
The R15,8m investment valuation adjustment resulted from the reduction in the
Intec share price and the value of the Group"s other IT related investments.
PROSPECTS
Trematon"s operating costs have been significantly reduced. The future value of
the company"s investments is dependent mainly on the price of Intec shares as
well as the outcome of the negotiations referred to below in the further
cautionary announcement.
ACCOUNTING POLICIES
The financial statements of the Group comply with South African Statements of
Generally Accepted Accounting Practice and are consistent with those applied in
the previous financial year, except for the effects of Circular 07/02 "Headline
Earnings" issued in December 2002 in terms of which the investment valuation
adjustment has now been included in headline earnings. Comparative figures have
been restated accordingly.
REVIEW BY AUDITORS
The company"s auditors, KPMG Inc, have reviewed these results. Their review
opinion is available for inspection at the company"s registered office.
APPROVAL BY DIRECTORS
The Directors of Trematon have approved the interim report for the six month
period ended 28 February 2003.
FURTHER CAUTIONARY ANNOUNCEMENT
Further to the cautionary announcement dated 26 November 2002 and subsequent
announcements, shareholders are advised that negotiations are still in process
regarding a restructure of the funding requirements of Mican and Gracefield as
well as in regard to Trematon"s own funding requirements.
As Trematon is a minority shareholder in both Mican and Gracefield it does not
have direct control over those companies" negotiations.
The outcome of the negotiations referred to may have a material effect on the
price of the company"s securities. Accordingly, shareholders are advised to
continue exercising caution when dealing in the company"s securities until a
full announcement is made.
By order of the board
CW GARVIE
SECRETARY
30 May 2003
Registered office Postal address
The Manor House PO Box 712
14 Nuttall Gardens Durban
Morningside 4000
4001
Telephone: 031-3039667
Fax: 031-3121989
Directors: NA Labuschagne (Chairman), RB McElligott (CEO), P Ditz, M Farrer,
MG Meehan, AJF Mundell, RE Sherrell
Sponsor
Merrill Lynch South Africa (Pty) Ltd
Transfer Secretaries : Computershare Investor Services Ltd, 17 Marshall
Street,
Johannesburg
