| Thu 27 Nov 2003, 17:35 | | REVIEWED GROUP RESULTS FOR THE YEAR ENDED 31 |
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ADMIRAL LEISURE WORLD LIMITED - REVIEWED GROUP RESULTS FOR THE YEAR ENDED 31
AUGUST 2003
ADMIRAL LEISURE WORLD LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1938/011493/06)
Share code ADL
ISIN ZAE000010229
("the company")
REVIEWED GROUP RESULTS FOR THE YEAR ENDED 31 AUGUST 2003
CONSOLIDATED BALANCE SHEET
Reviewed Audited
at at
(in ZAR) 31 Aug 2003 31 Aug 2002
Assets
Non-current assets 4 697 832 5 030 719
Fixed assets 4 360 957 4 589 180
Loans receivable 336 875 386 875
Accounts receivable - 56 664
Current assets 5 753 380 4 084 542
Inventories 1 006 065 947 747
Accounts receivable 399 917 1 583 724
Taxation - 10 094
Cash resources 4 347 398 1 542 977
Total assets 10 451 212 9 115 261
Equity and liabilities
Capital and reserves 2 506 416 5 893 568
Issued capital 62 193 750 62 193 750
Non-distributable reserve 71 189 71 189
Accumulated loss (59 758 523) (56 371 371)
Non-current liabilities 4 463 567 384 350
Long-term liabilities 436 997 363 012
Loan from holding company 4 001 029 -
Deferred taxation 25 541 21 338
Current liabilities 3 481 229 2 837 343
Accounts payable 1 629 838 2 020 222
Holding company current liability 1 705 200 -
Taxation 146 191 205 251
Bank overdraft - 611 870
Total equity and liabilities 10 451 212 9 115 261
Number of shares in issue 34 952 500 34 952 500
Net asset value per share (cents) 7 17
CONSOLIDATED INCOME STATEMENT
Reviewed Audited
12 months to 12 months to
(in ZAR) 31 Aug 2003 31 Aug 2002
Gross revenue 13 666 600 14 857 486
Other income 245 685 639 156
Operating expenses 17 203 136 16 725 352
Net loss before taxation (3 290 851) (1 228 710)
Taxation 96 301 (5 144)
Net loss after taxation (3 387 152) (1 223 566)
Net loss (3 387 152) (1 223 566)
Accumulated loss at beginning of period (56 371 371) (55 147 805)
Accumulated loss at end of period (59 758 523) (56 371 371)
Loss per share (cents) (9,69) (3,50)
Headline loss per share (cents) (9,70) (3,66)
Reconciliation between basic loss
and headline loss
Basic loss (3 387 152) (1 223 566)
Profit on disposal of fixed assets (3 332) (55 583)
Headline loss (3 390 484) (1 279 149)
CONSOLIDATED CASH FLOW STATEMENT
Reviewed Audited
12 months to 12 months to
(in ZAR) 31 Aug 2003 31 Aug 2002
Cash flows from operating activities (1 035 878) 440 667
Cash flows from investing activities (1 122 845) 53 002
Cash flows from financing activities 5 575 014 (289 039)
Net increase in cash and cash equivalents 3 416 291 204 630
Cash and cash equivalents at beginning of year 931 107 726 477
Cash and cash equivalents at end of year 4 347 398 931 107
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 AUGUST 2003
Non-
distri- Accumu-
Issued butable lated
(in ZAR) capital reserves losses Total
Balance as at 31 August 2002 62 193 750 71 189 (56 371 371) 5 893 568
Loss for the year - - (3 387 152) (3 387 152)
Balance as at 31 August 2003 62 193 750 71 189 (59 758 523) 2 506 416
OPERATIONAL REVIEW
The Group operates its two licensed Casinos in Botswana, the Public Lottery in
the Kingdom of Swaziland and Limited Payout Machines (LPM) facilities in
Namibia. The Group also supplies, services and maintains LPMs and terminals
under contract with third parties in Namibia and Swaziland.
The Group"s operations are controlled from its head office in Midrand, Gauteng,
South Africa through its various regional offices.
SUMMARY
In the February interim report, the Board"s modified strategy of ensuring that
current operations are functioning to their full potential before diversifying
into new areas was outlined. The six-month period from March to August was the
period in which this strategy was implemented. Revamping of operations in all
areas took place at an ever-increasing rate. Placement of new machinery as well
as the renovation of the operational sites were completed in Swaziland, and are
in an advanced stage in Botswana and Namibia. The cash injection from Austrian
Gaming Industries GmbH (AGI - 80,88% shareholder) was used mainly for the
renovations, but over and above this, the access to new machinery and state of
the art gaming technology should result in long-term benefits.
The operating loss for the year to date of R3 387 152 is obviously
disappointing, however, the expenses related to the revamping and restructuring
of the operations during the year are responsible for a large portion of this
loss. Furthermore, the lost revenue, which inevitably occurs, during the revamp
process was also a large contributing factor. Now that the revamps are nearing
completion, the related operating expenses should not re-occur, and the income
generated from the operations should be greatly enhanced.
CHANGE OF YEAR END
The company"s year-end has been changed to 31 December. The Annual Financial
Statements for the year ended 31 December 2003 will be a 16-month period.
GOING CONCERN
The financial statements have been prepared on the basis of accounting practices
applicable to a going concern. This basis presumes that funds will be available
to finance future operations and that the realisation of assets and the
settlement of liabilities, contingent obligations and commitments will occur in
the ordinary course of business.
The auditors have issued an emphasis of matter paragraph with their audit
report. The financials have been prepared on a going concern basis due to
assurances received from AGI as well as the subordination of certain long-term
loans owing to AGI. The Board is of the opinion that the company is a going
concern and will be profitable in the medium to long term.
ACCOUNTING POLICIES AND REVIEW OPINION
The abridged financial statements for the year ended 31 August 2003 are
consistent with the Group"s Accounting Policies and are in compliance with South
African Statements of Generally Accepted Accounting Practice. The financial
statements have been reviewed by Papilsky Hurwitz. The Report contains the
following emphasis of matter - "Without qualifying our opinion we draw your
attention to the fact that the Group is dependent on Austrian Gaming Industries
GmbH to provide ongoing finance for its business activities for the foreseeable
future. The Group has assumed that this finance will be available and it is on
this assumption that the abridged financial statements have been prepared on a
going concern basis". The Review Report is available for inspection at the
company"s registered office.
DIVIDEND
No dividend has been declared for the period under review.
By order of the Board
W W Banks (Chief Executive Officer)
Midrand
27 November 2003
Directors
J Halle - Austrian (Chairman - appointed 30/10/2002 )
M A Werner - (Deputy Chairman - resigned 31/01/2003)
W W Banks - (Chief Executive Officer - appointed 30/10/2002)
M S Abdullah - (Non-executive Director )
D C Khama - Motswana (Non-executive Director)
R A Wulz - Austrian (Chairman and Chief executive Director - resigned
30/10/2002)
Registered Office
151 Lechwe Street,
Corporate Park,
Midrand, 1685,
Gauteng, South Africa
PO Box 6160,
Halfway House, 1685,
Gauteng, South Africa
Transfer Secretaries
Computershare Limited,
70 Marshall Street,
Johannesburg, 2001,
Gauteng, South Africa
PO Box 1053,
Johannesburg, 2000,
Gauteng, South Africa
Date: 27/11/2003 05:10:05 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
