| Wed 3 Dec 2003, 17:08 | | UNAUDITED RESULTS FOR THE SIX MONTHS |
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BARNARD JACOBS MELLET HOLDINGS LIMITED - UNAUDITED RESULTS FOR THE SIX MONTHS
ENDED 30 SEPTEMBER 2003
BARNARD JACOBS MELLET HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Reg. no. 1995/004798/06)
Share code: BJM
ISIN: ZAE000014262
(the Group)
CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2003
Six months Six months Year
ended ended ended
30 Sept 2003 30 Sept 2002 31 Mar 2003
Unaudited Unaudited Audited Change
R000 R000 R000 %
GROSS REVENUE 126 546 158 984 289 513 (20,4)
Operating expenses (111 668) (139 630) (257 790) (20,0)
OPERATING INCOME
BEFORE FINANCE COSTS 14 878 19 354 31 722 (23,1)
Finance costs (12 902) (16 262) (24 249) (20,7)
OPERATING INCOME
BEFORE INCOME
FROM INVESTMENTS 1 976 3 092 7 473
Investment income 524 558 540 (6,0)
Associate company (568) 53 (101)
INCOME BEFORE
TAXATION 1 932 3 703 7 913 (47,8)
Taxation (1 197) (2 960) (6 233)
NET PROFIT
ATTRIBUTABLE
TO SHAREHOLDERS 735 743 1 679 (0,9)
Weighted average
number of shares
in issue (000) 103 495 105 874 103 296
Headline earnings
per share (cents) 0,89 0,97 2,10 (8,7)
Fully diluted headline
earnings per share
(cents) 0,89 0,96 2,09 (7,8)
Basic earnings per
share (cents) 0,71 0,70 1,63 1,6
Fully diluted earnings
per share (cents) 0,71 0,70 1,62 1,6
Dividend per share
(cents) - - 3,50
Net asset value per
share (cents) 316 361 326 (12,4)
Reconciliation of
headline earnings
per share
Headline earnings 923 1 023 2 167 (9,0)
Goodwill amortisation (188) (280) (487)
Basic earnings 735 743 1 679 (0,9)
CONSOLIDATED BALANCE SHEET AS AT 30 SEPTEMBER 2003
30 Sept 2003 30 Sept 2002 31 Mar 2003
Unaudited Unaudited Audited
R000 R000 R000
ASSETS
NON-CURRENT ASSETS
Furniture and
equipment 4 326 6 263 5 685
Investments 85 521 79 163 75 957
Interest in associate
company 2 104 2 824 2 603
Goodwill 172 567 360
Deferred taxation 22 461 20 234 22 909
Loan to share trust 7 376 - 8 587
121 960 109 051 116 100
CURRENT ASSETS 2 962 050 2 211 439 1 638 951
3 084 010 2 320 490 1 755 051
EQUITY AND RESERVES
CAPITAL AND RESERVES
Share capital 1 035 1 064 1 035
Share premium 165 048 168 412 165 048
Non-distributable
reserves 18 877 70 587 29 535
Retained income 142 163 143 912 141 428
327 123 383 975 337 046
NON-CURRENT
LIABILITIES 209 985 211 823 210 897
CURRENT LIABILITIES 2 546 902 1 724 692 1 207 107
3 084 010 2 320 490 1 755 051
GROUP STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2003
Non-
distribut-
Share Share able Retained
capital premium reserves income Total
R000 R000 R000 R000 R000
Balance at
1 April 2002 1 067 172 152 71 723 143 945 388 887
Foreign currency
translation
reserve - - (42 343) - (42 343)
Net profit for
the year, restated
for the effect of
adopting revised
AC116 and AC416 - - - 1 679 1 679
Issue of
ordinary shares 8 1 807 - - 1 815
Treasury stock (40) (8 911) - - (8 951)
Transfer to
retained income - - 155 (155) -
Dividends paid - - - (4 041) (4 041)
Balance at
1 April 2003 1 035 165 048 29 535 141 428 337 046
Foreign currency
translation
reserve - - (10 658) - (10 658)
Net profit for
the period - - - 735 735
Balance at
30 September
2003 1 035 165 048 18 877 142 163 327 123
CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2003
Six months Six months Year
ended ended ended
30 Sept 2003 30 Sept 2002 31 Mar 2003
Unaudited Unaudited Audited
R000 R000 R000
Cash utilised in
operating activities (1 611) (50 502) (55 643)
Cash generated from
investing activities (8 709) (941) (11 880)
Cash flows from financing
activities (912) 55 457 51 138
Net decrease/(increase)
in cash and cash equivalents (11 232) 4 014 (16 385)
Cash and cash equivalents
at the beginning of the year 267 639 326 619 326 619
Foreign currency translation
reserve (10 527) (1 608) (42 595)
Cash and cash equivalents
at the end of the period 245 880 329 025 267 639
SEGMENTAL ANALYSIS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2003
South Africa International Total
Primary segment R000 R000 R000
Revenue 84 441 42 105 126 546
Assets 2 717 225 366 785 3 084 010
Liabilities 2 427 668 329 219 2 756 887
for the six months ended 30 September 2002
South Africa International Total
Primary segment R000 R000 R000
Revenue 100 086 58 898 158 984
Assets 1 765 574 554 916 2 320 490
Liabilities 1 470 953 465 562 1 936 515
for the twelve months ended 31 March 2003
South Africa International Total
Primary segment R000 R000 R000
Revenue 187 661 101 851 289 513
Assets 1 591 960 163 090 1 755 051
Liabilities 1 298 686 119 318 1 418 004
REVIEW OF RESULTS
The Group remained profitable during this period notwithstanding difficult
market conditions that included a 33% decline in equity market volumes on the
JSE. Attributable profit declined marginally with headline earnings declining to
a greater extent, 9%, as a result of a smaller amount of goodwill amortization
charged to the income statement. It is particularly pleasing to report that the
international operations are all profitable with a significant improvement
having occurred in the UK operation over the period.
Net asset value per share declined by 12% from 361 cents per share to 316 cents
per share and is totally attributable to the currency translation effect of the
much stronger Rand which had appreciated by 34% between the two comparative
periods.
The strength of the Rand and the impact of lower market volumes resulted in a
20% relative decline in revenue, the bulk of the latter having been experienced
in the private client business conducted by the Group.
Relative profitability was maintained, however, by further stringent cost
cutting throughout the Group resulting in a cost saving of 9,5% over the period.
The balance of the reduction in operating costs can be attributed to the
stronger reporting currency.
NEW DEVELOPMENTS
Kevin Jacobs was appointed CEO of the Group at the end of May this year, with
former CEO Paul Barnard remaining an executive director with primary
responsibility for UK operations.
BJM entered into a BEE transaction with former employee and non-executive
director Andile Mazwai whereby he and employees of Mazwai Securities will
purchase 10% of the BJM Group. This transaction brings BJM closer to meeting its
aspiration of transforming itself into a BEE company that reflects its
commitment to South Africa and the transformation process. This transaction
results in an effective BEE shareholding in BJM in excess of 15%. Once approved
by shareholders, Andile Mazwai will be appointed co-CEO with Kevin Jacobs.
PROSPECTS
Market conditions remain fragile and make any meaningful earnings forecast for
the next six months extremely difficult. Management is confident, however, that
it is well poised to exploit any improvement in sentiment whilst ensuring that
costs remain tightly controlled.
DIVIDEND
No dividend is declared for the interim period.
Sandile Zungu Kevin Jacobs
(Chairman) (CEO)
Johannesburg
3 December 2003
Directors:
SDM Zungu (Chairman)*, PA Barnard, HSC Bester*, JA Bester*, KG Jacobs (CEO),
AM Mazwai*, SM Mellet*, AT Mokhobo*, L Wilson
*Non-executive
Company Secretary:
A de Villiers
Registered office:
Barnard Jacobs Mellet House,
5 Sturdee Avenue,
Rosebank, 2196
Transfer secretaries:
Ultra Registrars (Proprietary) Limited,
11 Diagonal Street,
Johannesburg, 2001
Date: 03/12/2003 05:00:07 PM Produced by the JSE SENS Department
