| Tue 15 Jul 2003, 16:24 | | JCI LIMITED - PRELIMINARY RESULTS FOR THE YEAR END |
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JCI LIMITED
(Formerly Consolidated African Mines Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1894/000854/06)
Share code: JCD ISIN: ZAE000039681
Debenture code: JCDD ISIN: ZAE000039699
("JCI" or "the Company")
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2003
CONSOLIDATED INCOME STATEMENTS (ABRIDGED)
Reviewed Audited
Year Year
ended ended
31 March 31 March
2003 2002
Notes R"000 R"000
Revenue 201 191 74 311
Net loss for the year 1 (11 667) (167 891)
Share of earnings/(loss) of associated companies 43 895 (22 080)
Exceptional items 2 164 758 (130 827)
Net profit/(loss) before taxation 196 986 (320 798)
Taxation 3 186 174
Net profit/(loss) after taxation 196 800 (320 972)
Outside shareholders" interest (194) (25 160)
Net profit/(loss) for the year 196 994 (295 812)
Earnings/(Loss) per share - (cents) 4
- headline earnings 5,2 (24,5)
- attributable earnings 14,2 (44,1)
Headline earnings/(loss) are calculated as follows:
Net profit/(loss) for year 196 994 (295 812)
Exceptional items (164 758) 130 827
Items of a capital nature:
- goodwill/(negative goodwill)
transferred from/(to) earnings 40 547 (1 431)
- (profit)/loss on sale of fixed assets (284) 2 116
Headline earnings/(loss) 72 499 (164 300)
NOTES TO THE INCOME STATEMENTS
1. Net loss is stated after taking into
account the following:
- Dividends received 564 3 003
- Interest received 54 690 25 909
- Net goodwill transferred (from)/ to earnings (40 547) 1 431
- Interest paid 113 061 134 053
2. Exceptional items
- Provision against and write down of investments (9 550) (92 058)
- Provision against loans 13 051 (1 001)
- Translation profit/(loss) 65 779 (36 138)
- Profit on disposal of investments and mining assets 83 052 69
- Restructuring costs (9 327) (1 689)
- Reversal of interest 21 753 -
164 758 (130 817)
3. Taxation
- Foreign normal taxation 186 174
186 174
4. Earnings/(Loss) per share calculation is based
on the average weighted number of
shares in issue of 1 391 545 805 670 059 708
CASH FLOW STATEMENTS (ABRIDGED)
Reviewed Audited
Year Year
ended ended
31 March 31 March
2003 2002
R"000 R"000
Cash flows from operating activities 240 248 (270 669)
Cash flows from investing activities (209 329) (105 818)
Cash flows from financing activities (8 880) 334 736
Net movement in cash and cash equivalent 22 039 (41 751)
Cash and cash equivalents:
- at beginning of period (25 132) 16 619
- subsidiary acquired 381 -
Cash and cash equivalents at end of period (2 712) (25 132)
STATEMENT OF CHANGES IN EQUITY
Non-
Share Share distributable Accumulated
capital premium reserves loss Total
R"000 R"000 R"000 R"000 R"000
Balance on
31 March 2001 6 651 1 025 821 263 412 (771 682) 524 202
Issued during the year 466 20 533 - - 20 999
Expenses written off - (76) - - (76)
Transfer from
accumulated losses - - 1 104 (1 104) -
Exchange rate adjustments - - 21 072 - 21 072
Net loss for the year - - (295 812) (295 812)
Balance on
31 March 2002 7 117 1 046 278 285 588(1 068 598) 270 385
Issued during the
period 10 388 457 084 - - 467 472
Expenses written off - (5 265) - - (5 265)
Exchange rate adjustments - - (35 324) 35 324 -
Share of fair value
adjustment of associated
companies - - - (107 065) (107 065)
Net profit for the period - - - 196 994 196 994
Balance on
31 March 2003 17 505 1 498 097 250 264 (943 345) 822 521
CONSOLIDATED BALANCE SHEETS (ABRIDGED)
Reviewed Audited
31 March 31 March
2003 2002
Notes R"000 R"000
Assets
Non-current assets
- Property, mineral rights, plant and
equipment 105 569 75 954
- Goodwill 71 746 46 539
- Investments 2 1 023 806 1 357 049
- Loans 295 054 184 578
1 496 175 1 664 120
Current assets 3 357 697 289 774
Total assets 1 853 872 1 953 894
Equity and liabilities
Capital and reserves 4 822 521 270 385
Shares in holding company held by subsidiaries (15 216) (14 191)
Outside shareholders 22 566 965
807 327 823 159
Non-current borrowings
- interest bearing 5 334 320 87 569
- non-interest bearing 1 159 -
335 479 87 569
Current liabilities
- interest bearing 6 225 178 952 150
- non-interest bearing 485 888 91 016
711 066 1 043 166
Total equity and liabilities 1 853 872 1 953 894
Number of shares in issue 1 750 566 255 711 740 100
Net asset value per share - cents 47,0 36,0
NOTES TO THE BALANCE SHEETS
1. Basis of accounting
These consolidated results are prepared in accordance with South African
Statements of Generally Accepted Accounting Practice ("GAAP") and Schedule 4 of
the Companies Act. These Accounting policies are consistent with those used in
the annual financial statements for the year ended 31 March 2002.
2. Investments in associated companies are accounted for on the equity
accounting method and carrying values are disclosed after the amortisation of
any goodwill arising on the acquisition of the investments.
Reviewed Audited
31 March 31 March
2003 2002
R"000 R"000
Investments at carrying value:
Listed investments
- associated companies 710 663 1 081 923
- other 4 714 60 069
Unlisted investments
- associated companies 167 731 (11 626)
- other 140 698 226 683
Market value of listed investments are:
- associated companies 1 508 178 1 744 172
- other 4 362 127 840
Directors" valuation of unlisted investments are:
- associated companies 167 731 1 505
- other 145 758 226 683
The reason for the substantial reduction in the carrying value of listed
investments in associated companies is mainly due to the utilisation of shares
in Western Areas Limited ("WAL") to settle the loan of R468 884 000 due to WAL.
Full details of this transaction were disclosed in the circular to shareholders
dated 2 October 2002.
3. Current assets include deposits and cash of R32 414 000 (31/03/2002:
R24 950 000)
4. During the period under review, the Company"s authorised share capital
changed from R12 000 000 divided into 1 200 000 000 ordinary shares of 1 cent
each to R27 000 000 divided into 2 700 000 000 ordinary shares of 1 cent each
through the creation of 1 500 000 000 new ordinary shares of 1 cent each. The
following issues of shares took place during the period:
- 15 July 2002 - 474 337 213 ordinary shares at 45 cents each as part of the
scheme consideration for the acquisition of the minorities" interest in JCI Gold
Limited ("JCI Gold").
- 24 July 2002 - 220 000 000 ordinary shares at 45 cents each as part of the
consideration for the acquisition of a 40% interest in Letsµeng Investment
Holdings South Africa (Pty) Limited.
- 9 September 2002 - 344 488 942 ordinary shares at 45 cents each in terms of a
rights offer.
5. Debentures
Included in non-current interest bearing debt is an amount of R252 875 030
which relates to the 202 300 006 redeemable secured convertible debentures
issued at R1,25 each as part of the consideration for the JCI Gold acquisition.
6. Current liabilities- interest bearing include overdrafts of R35 126 000
(31/03/2002: R50 082 000)
7. Contingent Liabilities
- The group has guaranteed the liabilities of certain third parties to an amount
of R47,9 million.
- JCI Gold is obliged to meet any tax liability which may arise in Invego
Limited ("Invego"), as a result of the restructuring of that company as at
30 June 1998. Invego has been assessed for taxation by the South African Revenue
Service ("SARS") for the period ended 30 June 1998 and no liability has arisen.
However, Invego has been notified by SARS of the intention to disregard certain
deductions previously allowed. The directors are of the opinion that no
liability will arise.
- In the latter half of April 2002, Durban Roodepoort Deep, Limited served
summons on the Company as a co-defendant together with JCI Gold, claiming
payment from the Company of R6 462 000, payment from JCI Gold of R1 119 000 and
payment jointly and severally from the Company and JCI Gold of R24 650 000. The
action is being defended on the basis of legal advice to the effect that the
claims are likely to be successfully defended.
COMMENTARY
* During the year, the Group"s net current liabilities were reduced from
R753,3 million to R353,4 million.
This was achieved by simplifying the group structure through the merger of JCI
and JCI Gold and the repayment of the Western Areas Limited ("WAL") loan by the
distribution of WAL shares.
* The Company continues to benefit from the improved sentiment in the gold
sector through its holding in WAL and Randgold Resources Limited, which are
widely acknowledged as being two of the world"s premier gold assets.
* The Group has during the year financed various projects/assets which are not
as yet cash positive. It is envisaged that these assets will, in the near future
to medium term start to contribute towards the Group"s cash flow. Until this
stage is reached, the Group"s cash requirements will be satisfied by the raising
of finance against these assets or the disposal of certain assets.
* The Group continues to finance suitable empowerment transactions which it
believes have great potential. The directors are confident that these
transactions will, in the near future, start to contribute towards the Group"s
cash flow.
* Auditors" report
The preliminary results of the Group as set out above have been reviewed by
the Company"s auditors, Charles Orbach & Company. Their report is available for
inspection at the Company"s registered office.
For and on behalf of the board
R B Kebble H C Buitendag
Chief Executive Officer Executive Director
Johannesburg
15 July 2003
Registered office: Transfer secretaries:
28 Harrison Street Computershare Limited
Johannesburg, 2001 70 Marshall Street, Johannesburg, 2001
(PO Box 11165, Johannesburg, 2000) (PO Box 1053, Johannesburg, 2000)
London secretaries: Investor relations:
JCI (London) Limited George Poole Harrison Street, Johannesburg, 2001
6 St James"s Place (PO Box 11165, Johannesburg, 2000)
London, SW1A 1NP 28 Tel: +27 11 688 5100
Tel + 020 7491 1889 Fax + 020 7491 1989 Fax: +27 11 836 3757
