| Mon 5 Apr 2004, 17:39 | | Admiral Leisure World Limited - Reviewed Group Res |
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Admiral Leisure World Limited - Reviewed Group Results For The Sixteen Months
Release Date: 05/04/2004 17:15:00 Code(s): ADL
ADMIRAL LEISURE WORLD LIMITED - REVIEWED GROUP RESULTS FOR THE SIXTEEN MONTHS
ENDED 31 DECEMBER 2003
ADMIRAL LEISURE WORLD LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number 1938/011493/06)
Share Code ALD ISIN ZAE000010229)
("THE GROUP")
REVIEWED GROUP RESULTS FOR THE SIXTEEN MONTHS ENDED 31 DECEMBER 2003
Consolidated Balance Sheet
Reviewed Audited
at at
(in ZAR) 31 Dec 2003 31 Aug 2002
Assets
Non-current assets 4 705 096 5 030 719
Fixed assets 4 368 221 4 589 180
Loans receivable 336 875 386 875
Accounts receivable - 54 664
Current assets 6 752 213 4 084 542
Inventories 2 999 385 947 747
Accounts receivable 367 507 1 583 724
Taxation - 10 094
Cash resources 3 385 321 1 542 977
Total assets 11 457 309 9 115 261
Equity and liabilities
Capital and reserves 590 953 5 893 568
Issued capital 62 193 750 62 193 750
Non-distributable reserve 71 189 71 189
Accumulated loss (61 673 986) (56 371 371)
Non-current liabilities 8 409 547 384 350
Long-term liabilities 10 784 363 012
Loan from related parties 515 091 -
Loan from holding company 7 875 338 -
Deferred taxation 8 334 21 338
Current liabilities 2 456 809 2 837 343
Accounts payable 2 326 100 2 020 222
Taxation 130 709 205 251
Bank overdraft - 611 870
Total equity and liabilities 11 457 309 9 115 261
Number of shares in issue 34 952 500 34 952 500
Net asset value per share (cents) 2 17
Consolidated Income Statement
Reviewed Audited
16 months to 12 months to
(in ZAR) 31 Dec 2003 31 Aug 2002
Gross revenue 18 651 233 14 857 486
Other income 482 438 639 156
Operating expenses 24 273 597 16 725 352
Net loss before taxation (5 139 926) (1 228 710)
Taxation 162 689 (5 144)
Net loss after taxation (5 302 615) (1 223 566)
Accumulated loss at beginning of period (56 371 371) (55 147 805)
Accumulated loss at end of period (61 673 986) (56 371 371)
Loss per share (cents) (15,17) (3,50)
Headline loss per share (cents) (15,30) (3,66)
Reconciliation between basic loss and headline loss
Basic loss (5 302 615) (1 223 566)
Profit on disposal of fixed assets (44 329) (55 583)
Headline loss (5 346 944) (1 279 149)
Consolidated Cash Flow Statement
Reviewed Audited
16 months to 12 months to
(in ZAR) 31 Dec 2003 31 Aug 2002
Cash flows from operating activities (4 191 207) 440 667
Cash flows from investing activities (1 392 780) 53 002
Cash flows from financing activities 8 038 201 (289 039)
Net increase in cash and cash equivalents 2 454 214 204 630
Cash and cash equivalents at beginning of period 931 107 726 477
Cash and cash equivalents at end of year 3 385 321 931 107
Statement of Changes in Equity
for the sixteen months ended 31 December 2003
Non-
distri- Accu-
Issued butable mulated
(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 - - (5 302 615) (5 302 615)
Balance as at 31 December 2003 62 193 750 71 189 (61 673 986) 590 953
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
After concluding the revamps of premises in the March to August period,
management expected a substantial increase in revenues and improved
performance over the September to December period. Although improvements in
income were evident, the extent and effect on bottom line was not in line
with expectations. The loss of R5 302 615 for the sixteen months evidences
the fact that much more needs to be done if the Group is going to continue
operating in the medium to long term.
Management are in the process of reviewing all operational areas, with
Namibian and Botswanan operations being focal points, and a decision on the
future direction of the Group should be finalized before June.
Post balance sheets events
On 25 March 2004, Purple Blues gambling house situated in Okahandja
Namibia, was seriously damaged by a fire on the premises. The extent of the
damage to company assets has not been accurately determined. The company
is, however, insured for the damage to the assets as well as for the income
lost due to the inability to trade. Purple Blues contributes approximately
6% to Group turnover.
The Group has purchased Desert Star Namib (Pty) Ltd for 150 000 in
February 2004. This amount was funded by Austrian Gaming Industries GmbH
(AGI), which has a 76.1% interest in Admiral Leisure World Limited. Desert
Star Namib (Pty) Ltd owns the La Lainya"s property in Walvis Bay where one
of the Group"s gaming operations is based.
Going Concern
The Group is in a precarious financial position. The auditors have
qualified their review report. The financials have been prepared on a going
concern basis due to guarantees received from AGI as well as the
subordination of certain loans. These guarantees are in effect and cover
creditors until 31 March 2005. Decisions taken on operational direction as
outlined above, are key to the Group"s ability to operate as a going
concern. The Board is of the opinion that the company is a going concern
and can be profitable in the medium to long term.
Accounting Policies and Review Opinion
The abridged financial statements for the period ended 31 December 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 qualification - "The financial statements have been
prepared on the basis of accounting practices applicable to a going
concern. Accordingly, these financial statements do not include any
adjustments relating to the recoverability and classification of assets or
to the amounts and classification of liabilities that might be necessary if
the Group is unable to continue as a going concern. The Group"s ability to
continue as a going concern is dependent on a number of factors. The most
significant of these are commencement of profitable operations and
maintenance of sufficient levels of finance by the holding company." - the
Review Report is available for inspection at the Group"s registered office.
General
No dividend has been declared for the period under review.
The company"s year-end was changed to 31 December during the period in
order to accord with the year-end of AGI.
By order of the board
W W Banks (Chief Executive Officer)
Midrand
6 April 2004
Directors
J Halle - German (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
