| Fri 27 Jun 2003, 17:03 | | REAL AFRICA HOLDINGS LIMITED - RESULTS FOR THE YEA |
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Real Africa Holdings Limited
(Registration number 1994/003919/06)
Share code: RAH
ISIN code: ZAE000008702 ("RAH")
ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED 31 MARCH 2003
REAL AFRICA HOLDINGS LIMITED
SUMMARISED INCOME STATEMENT
2003 2002
Reviewed Audited
Note R"000 R"000
Equity accounted earnings 29 406 6 029
- dividends received 34 671 18 630
- share of retained earnings 19 951 25 803
- goodwill amortisation/impairment (25 216) (38 404)
Operating income 85 833 37 620
Net interest income 104 026 46 614
219 265 90 263
Operating costs 39 102 44 269
Goodwill amortisation/impairment 16 161 1 403
Net investment losses 1 (109 137) (245 213)
- gross (296 343) (893 069
- less gain on hedged position - 162 250
- outside shareholders 1 187 206 485 606
Profit/(loss) before taxation 54 865 (200 622)
Taxation 34 325 17 903
Net profit/(loss) after taxation 20 540 (218 525)
Outside shareholders (8 311) (6 530)
Attributable to ordinary shareholders 28 851 (211 995)
Earnings/(loss) per share (cents) 7,8 (56,6)
Headline earnings/(loss) per share (cents) 16,3 (46,2)
Number of ordinary shares - in issue 371,8 375,1
(millions)
Number of ordinary shares - weighted average 371,8 374,3
(millions)
Headline earnings is determined as follows:
Attributable to ordinary shareholders 28 851 (211 995)
Adjusted for (net of outside shareholders):
Goodwill amortisation/impairment 31 819 38 977
Headline earnings/(losses) 60 670 (173 018)
SUMMARISED BALANCE SHEET
2003 2002
Reviewed Audited
R"000 R"000
Ordinary shareholders" funds 1 677 073 1 654 150
Outside shareholders 272 436 463 529
1 949 509 2 117 679
Fixed assets 2 115 1 687
Investments and loans 935 701 1 321 932
Cash resources 1 050 554 804 121
Net current liabilities (38 861) (10 061)
1 949 509 2 117 679
SUMMARISED CASH FLOW STATEMENT
2003 2002
Reviewed Audited
R"000 R"000
Cash flows from operating activities 185 238 53 962
Cash flows from investing activities 54 743 407 206
Cash flows from financing activities 6 452 (5 444)
SUMMARISED STATEMENT OF CHANGES IN EQUITY
Ordinary
share
capital Non-
and distributable Distributable Treasury
premium reserves reserves shares Total
R"000 R"000 R"000 R"000 R"000
Balance at 1
April 2002 1 742 730 8 161 (83 416) (13 325) 1 654 150
Shares (14 195) - - 13 325 (870)
cancelled
Net profit
for the year - - 28 851 - 28 851
Other - (5 058) - - (5 058)
Balance at 31
March 2002 1 728 535 3 103 (54 565) - 1 677 073
Valuation of investments
26 June 18 June
2003 2002
R"000 R"000
Listed - at market value 957 329 1 145 795
Unlisted - at directors" valuation 236 592 304 835
1 19 3921 1 450 630
Value per share at 26 June 2003 (cents) 4 524 503
Value distributed to shareholders - in cash 134
- Afrox Healthcare shares 106
Value per share after initial distribution 284
1 We refer to the group"s annual report for the year ended 31 March 2002. In
preparing the financial information for the year under review, those minority
shareholders in Persetel Q Data Africa Holdings Limited that retained their
entitlement to Comparex Limited ("Comparex") shares have been allocated their
full share of the diminution in value (R90 million) of their Comparex
investment, post the implementation date of the exchange. Group net investment
losses include a mark to market adjustment of R235 million in respect of the
group"s investment in Dimension Data plc ("Didata"), of which R121 million is
attributable to RAH.
2 The financial information has been prepared in conformity with South
African Statements of Generally Accepted Accounting Practice.
3 The auditors, PricewaterhouseCoopers Inc., have issued their unqualified
review report on the condensed financial statements contained in this
preliminary report for the year ended 31 March 2003. A copy of the auditors"
review report is available for inspection at the company"s registered office.
4 Value per share, stated in cents, is based on ordinary shareholders" funds
reflected on the balance sheet and adjusted by the attributable increase in the
market value of listed investments and directors" valuation of the unlisted
investments at 26 June 2003:
Value of underlying net assets at market value and directors"
valuation on 26 June 2003 R1,95 billion
Shares in issue (millions) 371,8
COMMENTARY
During the year under review the Real Africa Group announced its intention to
embark on a process of distributing assets for the purpose of unlocking value
for its shareholders. Subsequent to the year end, RAH has distributed Afrox
Healthcare shares currently valued at R394,9 million and cash of R498,2 million
to its shareholders (240 cents per share).
Net investment losses are largely attributable to the decrease in the market
value of Didata shares. Included in operating income are dividends received from
Afrox Healthcare (R21,5 million) and PSG Investment Bank (R28,5 million). As the
Afrox Healthcare shares have been distributed and the PSG Investment Bank shares
realised, these dividends will not recur. Dividends received from Afrisun
Leisure increased by 45%. During the year, head office operating costs
decreased by 58% (R18,2 million) as the company began to implement its
downsizing programme.
Ongoing processes are in place to finalise the realisation of the remaining
assets, other than Real Africa Asset Management and Afrisun Leisure. Further
announcements in this regard will be made as and when appropriate.
By order of the board
DMJ Ncube (Chairman) DJJ Vlok (Director)
27 June 2003
