| Mon 15 Dec 2003, 17:25 | | GROUP INTERIM RESULTS FOR THE SIX |
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HOSKEN CONSOLIDATED INVESTMENTS LIMITED - GROUP INTERIM RESULTS FOR THE SIX
MONTHS ENDED 30 SEPTEMBER 2003
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 INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2003
The following are the unaudited results of the group for the six months ended 30
September 2003 together with the comparative figures:
ABRIDGED CONSOLIDATED INCOME STATEMENT
Six months ended Year ended
30 September 31 March
2003 2002 2003
R"000 R"000 R"000
(unaudited) (unaudited) (audited)
Revenue 304 848 256 756 508 559
Operating expenses (318 019) (319 809) (630 348)
Operating loss (13 171) (63 053) (121 789)
Investment income 11 618 41 308 53 310
Finance costs (2 879) (60 130) (82 623)
Share of associated companies"
profits/(losses) (533) 25 891 30 711
Investment surplus/(loss) 39 621 - (698 591)
Recoupment/(impairment) of investments
and goodwill 73 639 (5 231) (50 185)
Profit/(loss) before taxation 108 295 (61 215) (869 167)
Taxation 6 101 1 943 5 509
Group profit/(loss) 102 194 (63 158) (874 676)
Attributable to minorities (270) (273) (1 832)
Profit/(loss) attributable to ordinary
shareholders 101 924 (63 431) (876 508)
Reconciliation of headline loss
Profit/(loss) attributable to ordinary
shareholders 101 924 (63 431) (876 508)
Adjusted for:
Investment (surplus)/loss (33 486) - 698 591
(Recoupment)/impairment of investments
and goodwill (73 639) 5 231 50 185
Amortisation of goodwill 4 076 4 936 9 873
Loss/(profit) on sale of assets (605) (33) 19 567
Headline loss (1 730) (53 297) (98 292)
Profit/(loss) per share (cents)
- Basic 94,55 (17,16) (286,41)
- Headline (1,60) (14,42) (32,12)
Weighted average number of shares
in issue ("000) 107 802 369 721 306 031
Actual number of shares in issue at
end of period (net of treasury
shares) ("000) 107 802 371 177 107 802
ABRIDGED CONSOLIDATED BALANCE SHEET
30 September 31 March
2003 2002 2003
R"000 R"000 R"000
(unaudited) (unaudited) (audited)
ASSETS
Non-current assets 442 965 1 924 869 453 524
Property, plant and equipment 66 138 79 579 60 051
Investments 376 827 1 845 290 393 473
Current assets 628 316 552 490 644 158
Total assets 1 071 281 2 477 359 1 097 682
EQUITY AND LIABILITIES
Ordinary shareholders" equity 639 712 1 295 945 545 019
Minority shareholders" interest 157 290 11 092 42 591
Non-current liabilities and preference
shares 29 216 770 894 276 728
Deferred tax 15 - 108
Current liabilities 245 048 399 428 233 236
Total equity and liabilities 1 071 281 2 477 359 1 097 682
Net asset value per share (cents) 593 449 506
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Accumulated
capital premium NDR loss Total
R"000 R"000 R"000 R"000 R"000
Balances 1 April 2002 91 882 1 036 426 1 644 600 (721 056) 2 051 852
Share capital and
premium
Shares issued 2 607 26 032 - - 28 639
Shares repurchased and
cancelled (69 935) (594 121) - - (664 056)
Share issue and
cancellation costs - (1 626) - - (1 626)
Treasury shares sold
by subsidiary 2 396 29 427 - - 31 823
Current operations
Loss for the year - - - (876 508) (876 508)
Transfer on realisation
of investments - - (994 909) 994 909 -
Revaluation
Current revaluation
deficit - - (25 105) - (25 105)
Balances 31 March 2003 26 950 496 138 624 586 (602 655) 545 019
Current operations
Profit for the period - - - 101 924 101 924
Revaluation
Transfer - - (527) 527 -
Current revaluation
deficit - - (7 231) - (7 231)
Balances at 30 September
2003 26 950 496 138 616 828 (500 204) 639 712
ABRIDGED CONSOLIDATED CASHFLOW STATEMENT
Six months ended Year ended
30 September 31 March
2003 2002 2003
R"000 R"000 R"000
(unaudited) (unaudited) (audited)
Cashflows from operating activities 203 286 (35 201) (264 006)
Cashflows from investing activities 54 761 (9 526) 1 408 772
Cashflows from financing activities (262 849) 32 831 (1 042 566)
(Decrease)/increase in cash and cash
equivalents (4 802) (11 896) 102 200
Cash and cash equivalents
At beginning of period 201 492 99 292 99 292
At end of period 196 690 87 396 201 492
SEGMENT REPORT
The following are the summarised results for the various primary group segments:
Segment Segment Segment Segment
revenues results assets liabilities
R"000 R"000 R"000 R"000
Media and broadcasting 300 586 123 541 644 386 338 048
Financial services - (12 356) 80 564 -
Interactive gaming 4 262 (9 076) 68 292 3 987
Information technology - 2 561 34 309 -
Other - (2 746) 243 730 89 534
304 848 101 924 1 071 281 431 569
Taxation is included as follows: Assets R0.367m, Liabilities R14.414m and
results R6.101m.
No secondary segment report has been included as the group derives substantially
all its revenues and income from within the Republic of South Africa.
COMMENTARY
ACCOUNTING POLICIES
The interim financial 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
Media And Broadcasting
Midi TV (Pty) Ltd ("e-TV")
e-TV has maintained its 17:00 to 23:00 audience share at similar levels to those
reported at March 2003.
The station has achieved 27% growth in revenue during the period under review by
comparison to the comparative six-month period.
This continued growth in revenue and stable operating costs have enabled the
station to operate without any further cash injections and in line with
expectations. It is anticipated that the station will be profitable going
forward.
The restructuring of the capital of Sabido Investments (Pty) Ltd has been
completed and HCI now effectively owns approximately two thirds of e-TV.
Gaming
Vukani Gaming Corporation (Pty) Ltd
Expansion of trading operations in the route business in Mpumulanga has
continued at a slow pace. Applications have been lodged for limited payout route
operating licences in the Eastern and Western Cape provinces. Bids will be made
for licences in other regions, as these are made available. It is anticipated
that this will happen during the current financial year.
Tsogo Sun Holdings (Pty) Ltd
During the period under review the group acquired a further 5% effective
interest in Tsogo Sun Holdings (Pty) Ltd. Subsequent to the period under review
the group acquired a further effective 3.5% interest. Shareholders are referred
to announcements made by the company for details of the above acquisitions.
Financial Services
Mettle Limited ("Mettle")
Mettle, which was delisted with effect from 19 June 2003, has continued to
operate as in the past and with the exception of the treasury division, which is
expected to be disposed of before the end of the current financial year, has
performed in line with expectations.
Information Technology
IQ Business Group (Pty) Ltd ("IQ")
During the period under review, the capital of IQ was restructured with the
group increasing its investment to approximately 22% by injecting R15m of
funding.
OPERATIONS AND RESULTS FOR THE PERIOD
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 consciously 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 Period
The group reported a headline loss per share of 1.60 cents compared with the
headline loss per share of 14.42 cents for the comparative period. This
improvement is largely attributable to the improved performance of e-TV and the
reduced finance costs resulting from the reduction of group debt. The investment
surplus and the recoupment of investments and goodwill arose primarily from the
restructuring of the group"s interest in e-TV following the conversion of
minority debt to equity.
PROPOSED DELISTING OF HCI AND OFFER TO ALL SHAREHOLDERS
Implementation of the delisting, approved at the general meeting of shareholders
on 11 June 2003, remains in abeyance until the finalisation of an application by
a shareholder of HCI, in the High Court of South Africa.
DISTRIBUTIONS TO SHAREHOLDERS
The directors have decided not to declare a dividend for the period ended
30 September 2003.
For and on behalf of the board of directors
MA Golding Chairman
JA Copelyn Chief Executive Officer
Durban
15 December 2003
Sponsor:
Nedbank Corporate
Registered office:
Suite 624, Office Tower,
Overport City, 430 Ridge Road,
Durban, 4001
(PO Box 70874,Overport City, 4067)
Transfer secretaries:
Computershare Limited,
70 Marshall Street,
Johannesburg, 2001
(PO Box 61051, Marshalltown, Johannesburg, 2107)
Directors:
MA Golding (Chairman), JA Copelyn (Chief Executive Officer), MF Magugu*,
VE Mphande*, AM Ntuli*
*(non-executive)
Company secretary:
TG Govender
Date: 15/12/2003 05:15:14 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
