| Tue 23 Dec 2003, 16:12 | | Reviewed Interim Results For The Six Months Ended |
|
Shops for Africa Limited - Reviewed Interim Results For The Six Months Ended 31
October 2003
Shops for Africa Limited
(Registration number: 2000/018084/06)
Share code: SFA
ISIN: ZAE000031241
REVIEWED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 OCTOBER 2003
ABRIDGED INCOME STATEMENT
Reviewed Unreviewed Audited
6 months 6 months Year
ended ended ended
31 Oct 2003 31 Oct 2002 30 Apr 2003
R"000 R"000 R"000
Revenue 46 440 39 997 85 466
Operating expenses (20 230) (16 758) (35 906)
Operating profit 26 210 23 239 49 560
Profit on sale of investment properties - 200 587
Revaluation of investment properties 2 816 - 18 107
Interest income 388 522 1 150
Finance charges - loans (18 013) (15 054) (31 728)
Finance charges - debentures (11 295) (8 912) (18 943)
Net income/(loss) before
exceptional items and taxation 106 (5) 18 733
Exceptional items (1 007) - (326)
Net (loss)/profit before taxation (901) (5) 18 407
Taxation 168 (55) (4 953)
Net (loss)/profit after taxation (733) (60) 13 454
Income from associate 2 147 - 1 084
Net profit/(loss) for the period 1 414 (60) 14 538
cents cents cents
Distribution per linked unit 16.91 15.19 30.41
Earnings/(Loss) per share 2.11 (0.10) 23.35
Headline (loss)/earnings per share (1) (0.83) (0.39) 0.62
Net asset value per linked unit (Rands) 2.54 2.37 2.59
Number of linked units in
issue ("000) 72 115 65 896 65 896
Weighted average number of linked
units in issue ("000) 66 876 58 661 62 249
ABRIDGED BALANCE SHEET
Reviewed Unreviewed Audited
31 Oct 2003 31 Oct 2002 30 Apr 2003
R"000 R"000 R"000
ASSETS
Investment properties 431 239 373 366 390 543
Investment in associate 1 493 - 1 459
Current assets 8 022 5 947 9 221
Deferred taxation - 263 -
Total assets 440 754 379 576 401 223
EQUITY AND LIABILITIES
Share capital 721 659 659
Share premium 559 559 559
Distributable reserves/
(accumulated loss) 4 657 (9 331) 5 267
Shareholders" interest/(deficit) 5 937 (8 113) 6 485
Debentures 177 396 164 081 164 081
Linked unitholders" interest 183 333 155 968 170 566
Long-term borrowings 228 769 208 113 209 114
Deferred taxation 4 051 - 4 651
Current liabilities 24 601 15 495 16 892
Total equity and liabilities 440 754 379 576 401 223
ABRIDGED CASH FLOW STATEMENT
Reviewed Unreviewed Audited
6 months 6 months Year
ended ended ended
31 Oct 2003 31 Oct 2002 30 Apr 2003
R"000 R"000 R"000
Net cash flows from operating
activities 3 357 (1 888) (3 859)
Cash generated from operations 28 361 22 868 48 967
Interest received 388 522 1 150
Finance charges paid (15 476) (15 054) (33 110)
Debenture interest paid (10 024) (10 224) (20 643)
Taxation received/(paid) 108 - (223)
Net cash outflows from investing
activities (37 880) (23 405) (50 414)
Net cash flows from financing
activities 34 397 19 113 48 639
Decrease in cash and cash equivalents (126) (6 180) (5 634)
ABRIDGED STATEMENT OF CHANGES IN EQUITY
Reviewed Unreviewed Audited
6 months 6 months Year
ended ended ended
31 Oct 2003 31 Oct 2002 30 Apr 2003
R"000 R"000 R"000
Balance at beginning of period/year 6 485 (8 724) (8 724)
Effect of adopting AC 133 (2 024) - -
As restated 4 461 (8 724) (8 724)
Share capital and premium issued 62 671 671
Net profit/(loss) for the period/year 1 414 (60) 14 538
Balance at end of period/year 5 937 (8 113) 6 485
Notes to the financial information for the period ended 31 October 2003
1. The accounting policies comply with South African Statements of
Generally Accepted Accounting Practice and are consistent with those
applied for the year ended 30 April 2003, except for the adoption of AC 133
- Financial Instruments: Recognition and Measurement during the current
review period. In accordance with the provisions of AC 133 an adjustment
has been made to the opening reserves at the beginning of the period and no
adjustment has been made for prior year figures.
2. Reconciliation of basic earnings to headline earnings
Basic profit/(loss) 1 414 (60) 14 538
(1 971) (170) (14 155)
Increase in valuation of investment
properties (2 816) - (18 107)
Profit on sale of investment
properties - (200) (587)
Negative goodwill on acquisition
of associate - - (375)
Taxation effect 845 30 4 914
Headline (loss)/profit (557) (230) 383
The results of the six months to 31 October 2003 reflect the benefits of the
declining interest rate environment as well as an improvement in the performance
of the property portfolio.
The company has 45% of its long-term debt unfixed which has resulted in the
weighted average cost of finance declining from 14,97% at year end to the
current 12,89%. This resulted in a 9,3% decrease in the interest charge on a
like for like basis. The board of directors decided not to enter into more fixed
interest rate agreements due to the pending sale of the entire property
portfolio to ApexHi Properties Ltd ("the ApexHi transaction").
Turnover increased by 5% when compared with the corresponding interim period on
a like for like basis and by 2% on the previous six months. This performance has
been driven by lower average vacancies which ended the period at 6,1% (on a
rental basis).
Operating margins declined as a result of increases in letting commission,
tenant installations, electricity (due to seasonal winter tariffs) and doubtful
debts. The operating margin for the six months was 56,4%, down from 58% for the
year to 30 April 2003. AC 133 has been implemented during the current period
which resulted in a R2,719 million loss of which R2,642 million relates to
interest rate hedging instruments. The R2,642 million is included in finance
charges on loans. The opening retained earnings were reduced by R2,024 million
to effect the AC 133 adjustment in prior years.
The adjustment to opening retained earnings was mainly attributable to the
company"s associate Sammy Q Properties (Pty) Ltd. The current period"s associate
income of R2,147 million was boosted by R2,226 million due to the opening
balance adjustment. The exceptional item includes once-off transaction costs for
acquisitions and costs associated with the ApexHi transaction.
The directors remain confident that the profit forecast, as announced to
unitholders on 7 November 2003, will be achieved although earnings and
distributions will be reduced should the ApexHi transaction be concluded, as the
effective date of sale, being 1 April 2004, reduces the second half from six
months to five months.
The board has postponed the appointment of any additional directors due to the
conclusion of the ApexHi transaction.
Property Portfolio
The recent announcement, dated 5 December 2003, notifying unitholders of the
agreement to sell the property portfolio to ApexHi Properties Ltd has resulted
in the portfolio being revalued upwards by R2,816 million to the effective
selling price. This price has been calculated at R13,50 per ApexHi combined
linked unit, valuing the portfolio to be sold at R415 million, notwithstanding
the fact that the current ApexHi clean unit price is substantially higher.
Three other properties, Station Bazaar (R14 million), Shoprite Lambton Garages
(R1 million) and vacant land at Shoprite Lambton (R1.35 million) have been sold
separately. Transfer of Station Bazaar was effected on 4 November 2003. The
transfer of the Lambton properties is expected in February 2004.
On 3 October 2003 Sammy Marks Square Portion 3 was transferred to Shops for
Africa for R37 million.
These results have been reviewed by the company"s auditors, KPMG, and a review
opinion is available for inspection at the company"s registered office (detailed
below) during office hours.
Declaration of Interest Distribution
Notice is hereby given of the interim distribution of 16.91c per Shops for
Africa linked unit for the six-month period 1 May 2003 to 31 October 2003.
Last day to trade linked units cum distribution Friday, 9 January 2004
Linked units begin to trade ex-distribution Monday, 12 January 2004
Record date Friday, 16 January 2004
Payment date Monday, 19 January 2004
Linked unit certificates may not be dematerialised between Monday, 12 January
2004 and Friday, 16 January 2004, both days inclusive.
By order of the Board
B P MITCHELL
Company Secretary
Cape Town
23 December 2003
Directors:
I L Sturrock (Chairman), J D Broll, B T Kubheka, B P Mitchell*,
W A Botha* *Executive
Company secretary and registered office:
B P Mitchell CA (SA)
Shops for Africa Limited
(Registration number: 2000/018084/06)
Share code: SFA
ISIN: ZAE000031241
6th Floor, Protea Place
Protea Road, Claremont 7700
Transfer secretaries:
Computershare Limited
Registration number 2000/006082/06
70 Marshall Street, Johannesburg 2001
Asset managers Sponsor
CATALYST SASFIN Corporate Finance
Property Asset Managers
Date: 23/12/2003 04:07:07 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
