| Wed 25 Jun 2003, 18:03 | | Hosken Consolidated Investments Limited - Group An |
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Hosken Consolidated Investments Limited - Group Annual Results For The Year
Ended 31 March 2002
HOSKEN CONSOLIDATED INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1973/007111/06)
Share code: HCI ISIN: ZAE000003257
("HCI" or "the company" or "the group")
GROUP ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2002
The following are the results of the group for the year ended 31 March 2002
together with the comparative figures:
ABRIDGED CONSOLIDATED INCOME STATEMENT
Year ended
31 March
2003 2002
R"000 R"000
(reviewed) (audited)
Revenue 508 559 390 266
Operating loss (121 789) (341 221)
Investment income 53 310 60 681
Share of associated companies profits 30 711 34 410
Investment (loss)/surplus (698 591) 18 813
Impairment of investments (50 185) (296 324)
Operating loss before taxation (786 544) (523 641)
Taxation 5 509 5 469
Loss before preference dividends and interest (792 053) (529 110)
Preference dividends and interest (82 623) (72 181)
Attributable to minorities (1 832) 166 398
Loss attributable to ordinary shareholders (876 508) (434 893)
Reconciliation of headline loss
Loss attributable to ordinary shareholders (876 508) (434 893)
Adjusted for: Investment loss/ (surplus) 698 591 (18 813)
Impairment of investments 50 185 296 324
Amortisation of goodwill 9 873 14 615
Loss/(Profit) on sale of assets 19 567 (21)
Headline loss (98 292) (142 788)
Loss per share (cents) - Basic (286,41) (115,90)
- Headline (32,12) (38,00)
Weighted average number of shares in issue ("000) 306 031 375 294
Actual number of shares in issue at end
of year - net of treasury shares ("000) 107 802 367 530
ABRIDGED CONSOLIDATED CASH FLOW STATEMENT
Year ended
31 March
2003 2002
R"000 R"000
(reviewed) (audited)
Cash flows from operating activities (264 006) (395 875)
Cash flows from investing activities 1 382 025 (21 624)
Cash flows from financing activities (1 015 819) 541 779
(Decrease)/increase in cash
and cash equivalents 102 200 124 280
Cash and cash equivalents At beginning of year 99 292 (24 988)
At end of year 201 492 99 292
ABRIDGED CONSOLIDATED BALANCE SHEET
31 March
2003 2002
R"000 R"000
(reviewed) (audited)
ASSETS Non-current assets 453 524 2 618 524
Property, plant and equipment 60 051 84 484
Deferred tax - 49
Investments 393 473 2 533 991
Current assets 644 158 663 145
Total assets 1 097 682 3 281 669
EQUITY AND LIABILITIES
Ordinary shareholders" equity 545 019 2 051 852
Minority shareholder interest 42 591 15 844
Non current liabilities and preference shares 276 728 743 903
Deferred tax 108 -
Current liabilities 233 236 470 070
Total equity and liabilities 1 097 682 3 281 669
Net asset value per share (Rand) 5,06 5,58
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Accumulated
Share Share (loss)/
Capital premium NDR surplus Total
R"000 R"000 R"000 R"000 R"000
Balances 1 April 2001 97 397 1 109 163 1 925 971 (267 350) 2 865 181
Share capital and premium
Shares issued 200 2 040 2 240
Shares repurchased
and cancelled (3 205) (41 665) (44 870)
Share issue and
cancellation costs (2 178) (2 178)
Treasury shares acquired
by subsidiary (2 510) (30 934) (33 444)
Current operations
Loss attributable to
ordinary shareholders (434 893) (434 893)
Transfer on realisation
of investments 18 813 (18 813) -
Revaluation
Current revaluation
deficit (300 184) (300 184)
Balances 31 March 2002 91 882 1 036 426 1 644 600 (721 056) 2 051 852
Shares issued 2 607 26 032 28 639
Share issue costs (1 626) (1 626)
Treasury shares disposed
of by subsidiary 2 396 29 427 31 823
Shares repurchased (69 935) (594 121) (664 056)
Current operations
Loss attributable to
ordinary shareholders (876 508) (876 508)
Revaluation
Realisation of reserves (994 909) 994 909
Current revaluation deficit (25 105) (25 105)
26 950 496 138 624 586 (602 655) 545 019
SEGMENTAL REPORT
Segment Segment Segment Segment
Revenues Results Assets Liabilities
R"000 R"000 R"000 R"000
Telecommunications - (665,923) - -
Media and broadcasting 501,073 (83,048) 639,594 191,518
Financial services - 14,365 114,926 -
Interactive gaming 6,871 (44,723) 13,685 13,187
Information technology - (33,239) 10,795 -
Other 615 (63,940) 318,682 347,958
508,559 (876,508) 1,097,682 552,663
Taxation is included in other as follows : Assets R1057m, Liabilities R10760m
and Results R 5509m
No secondary segment reporting has been included as the group derives
substantially all its revenues and income from within the Republic of South
Africa
COMMENTARY
ACCOUNTING POLICIES
The preliminary report to shareholders is prepared on the historical cost basis
modified by the revaluation of investments and conforms with Statements of South
African Generally Accepted Accounting Practice. The accounting policies of the
group have been consistently applied.
REVIEW OF INVESTMENTS
Telecommunications
Vodacom Group (Pty) Ltd
During the year the group disposed of its 5% interest in unlisted Vodacom Group
(Pty) Ltd for an amount of R 1500 040 000. The proceeds from this disposal were
utilized primarily to repay a substantial portion of the debt in the group and
to effect the specific pro rata repurchase offer by the company.
Media and Broadcasting
Midi TV (Pty) Ltd ("e-TV")
At year end e-TV"s 17h00 to 23h00 audience share had increased to 21.8%, which
was according to expectations.
e-TV had achieved 43% growth in revenue, partly due to revenue from the Soccer
World Cup, for the year under review and reported net losses for the year of
R90,67m before inter-group finance costs of R27,08m.
During the year under review HCI invested a further R100,25m in e-TV. Continued
growth in revenue together with stable operating costs should enable the station
to operate without any further cash injections.
As indicated in the interim report to shareholders attempts were being made to
resolve certain regulatory issues in relation to VenFin"s participation in e-TV
and the exit of Warner Bros as a shareholder in e-TV. All necessary approvals
for VenFin"s effective participation in e-TV and the exit of Warner Bros as a
shareholder of e-TV were finally granted by ICASA by 30 May 2003. The effect is
that VenFin"s debt in the group will be converted into a direct interest in
Sabido Investments (Pty) Ltd ("Sabido") and the capital of Sabido will be
restructured in such a manner that HCI will effectively own approximately
between 59% and 66% of e-TV.
Gaming
Limited trading operations in the route business commenced in May 2003 in
Mpumulanga. It is anticipated that approximately R10m -R15m will be required to
complete the rollout. Bids will be made for licences in other regions, as these
are made available and is likely to happen during the current financial year.
Financial Services
Mettle Limited ("Mettle")
Mettle reported net earnings attributable to ordinary shareholders of R58,47m
for the year ended 31 March 2003. The group equity accounted its proportionate
share of these earnings in the preliminary results.
Prompted by depressed share prices and due to investor nervousness about the
small cap segment of the financial services sector, Mettle"s board decided to
delist Mettle from the JSE Securities Exchange South Africa. In reverting to an
unlisted company Mettle will continue to operate as in the past and your
directors expect solid earnings in the year ahead.
OPERATIONS AND RESULTS FOR THE YEAR
Business operations
The business operations of HCI include the making of investments in
opportunities as identified by the board of directors and to add value to these
investments over time. As such, HCI has established itself and pursued an
investment policy in terms of which it has endeavoured to maintain significant
equity and capital participation in entrepreneurially run companies with
significant growth potential. The investments are constantly reviewed and new
ones sought to complement them. Your directors are confident that the group will
deliver satisfactory growth in the future.
Results for the year
The group reported a headline loss per share of 32.12 cents compared with the
headline loss per share of 38,00 cents for the prior year which represents an
improvement of 15.47%. The largest contributor to the headline loss per share is
the group"s share of the losses of e-TV. As in the previous year, the group has
absorbed the full losses of e-TV as the minority"s share of such losses exceeded
their investment. Income from the group"s associate companies contributed
R30,71m. The investment loss arose primarily from the sale of the group"s 5%
interest in Vodacom Group (Pty) Ltd.
NON CURRENT LIABILITIES AND PREFERENCE SHARES
At year end the group"s non current liabilities amounted to R 253,943m (2002: R
336,118m) and preference share capital amounted to R 22,785m (2002: R 407,785m).
HCI SPECIFIC REPURCHASE OFFER
In terms of the specific pro rata offer approved by shareholders at a general
meeting, held on 23 December 2002, HCI repurchased 271 740 603 HCI shares from
shareholders, at a price of 237.6 cents per share.
PROPOSED DELISTING OF HCI AND OFFER TO ALL SHAREHOLDERS
As detailed in the circular to shareholders, dated 26 May 2003, the board has
resolved that HCI be delisted and an offer has been made by a consortium, led by
management, to purchase all the shares of minority shareholders at a price of
R3.50 each.
All resolutions necessary to give effect to the delisting of HCI were passed
by the requisite majority at a general meeting of shareholders held on Wednesday
11 June 2003.
As a result of an application by a shareholder of HCI, in the High Court of
South Africa, the above resolutions will not be carried into effect until such
time as this application has been finalised.
AUDITORS REVIEW
The abridged balance sheet, income statement, cash flow statement and
statement of changes in equity have been reviewed by the company"s auditors,
Fisher Hoffman PKF (Jhb) Inc. and a review opinion is available for inspection
at the company"s registered office.
DISTRIBUTIONS TO SHAREHOLDERS
The directors have decided not to declare a dividend for the year ended
31 March 2003.
For and on behalf of the board of directors
M A Golding Chairman
J A Copelyn Chief Executive Officer
Durban
25 June 2003
Registered office: Suite 624,
6th Floor,
Office Tower
Overport City,
430 Ridge Road
Durban, 4001
(PO Box 18881, Dalbridge, 4014)
Transfer secretaries: Computershare Investor Services Limited
Ground Floor, 70 Diagonal Street
Johannesburg, 2001
(PO Box 1053, Johannesburg, 2000)
Directors: M A Golding (Chairman), J A Copelyn (Chief Executive Officer),
M F Magugu*, V E Mphande*, A J Shapiro*, A M Ntuli*
*(non-executive)
Company secretary: T G Govender
Date: 25/06/2003 05:44:25 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
