| Mon 10 May 2004, 11:47 | | Reviewed Interim Results For The Six Months Ended |
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Corpcapital - Reviewed Interim Results For The Six Months Ended 29 February 2004
And Estimate Of Group Realisation
CORPCAPITAL LIMITED
(Registration number 1983/011384/06)
Share code - CPA ISIN - ZAE000034260
REVIEWED INTERIM RESULTS FOR THE SIX MONTHS ENDED 29 FEBRUARY 2004 AND ESTIMATE
OF GROUP REALISATION
CONSOLIDATED BALANCE SHEET Reviewed Unaudited Audited
29 February 28 February 31 August
Rm 2004 2003 2003
Assets
Current assets 332,0 986,7 769,0
Cash and cash equivalents 45,7 129,0 148,6
Trading securities and liquid assets 5,5 202,0 54,7
Advances and other accounts receivable 215,4 425,8 311,0
Inventories 65,4 229,9 254,7
Non-current assets 769,3 4 160,6 3 934,9
Financial product assets 266,5 230,8 250,5
Investments 160,2 351,3 278,0
Deferred taxation - 21,5 -
Associates and joint ventures 81,0 217,0 187,5
Property, plant and equipment 39,0 80,6 72,3
Intangibles - 2,6 4,1
Corpcapital Life policyholder investments,
interest bearing securities and deposits 222,6 3 256,8 3 142,5
Total assets 1 101,3 5 147,3 4 703,9
Equity and liabilities
Share capital and premium 2,2 367,2 365,7
Retained income and reserves 292,6 588,4 400,0
Shares held by consolidated entities - (200,2) (198,6)
Ordinary shareholders" equity 294,8 755,4 567,1
Minority shareholders" interest 10,8 8,3 10,4
Total shareholders" equity 305,6 763,7 577,5
Total liabilities 795,7 4 383,6 4 126,4
Current liabilities 109,9 484,8 388,7
Deposits and short-term debt - 118,5 59,8
Trading liabilities 3,5 140,5 35,9
Accounts payable 85,5 219,7 280,8
Taxation 20,9 6,1 12,2
Non-current liabilities 685,8 3 898,8 3 737,7
Corpcapital Life fund 222,6 3 256,8 3 142,5
Long-term debt 181,1 373,8 305,0
Deferred taxation 15,6 37,4 39,7
Financial product liabilities 266,5 230,8 250,5
Total equity and liabilities 1 101,3 5 147,3 4 703,9
Net asset value per share (cents) 81,7 228,1 171,3
Issued ordinary shares 360 801 438 430 440 265
Ordinary shares held as treasury shares - 107 339 109 174
Ordinary shares net of treasury shares 360 801 331 091 331 091
"A" ordinary shares held as treasury shares 104 287 - -
Contingent liabilities
Suretyship limited to R50 million for warranties related to the Corpcom sale.
CONSOLIDATED INCOME STATEMENT Reviewed Unaudited Audited
six months six months year
29 February 28 February 31 August
Rm 2004 2003 2003
Revenue 309,3 779,5 1 551,0
Profit/(loss) before taxation 205,4 82,5 (23,8)
Goodwill written off (2,2) (74,3) (113,5)
Profit/(loss) before taxation 203,2 8,2 (137,3)
Taxation 1,2 15,7 56,3
Profit/(loss) after taxation 202,0 (7,5) (193,6)
Attributable to minority shareholders 1,2 1,7 3,8
Attributable profits/(losses) 200,8 (9,2) (197,4)
Attributable profit/(loss) per ordinary
share (cents) 59,9 (2,7) (58,8)
Weighted average number of ordinary
shares in issue ("000) 335,479 340,850 335,930
ANALYSIS OF HEADLINE EARNINGS ADJUSTMENTS Reviewed Unaudited Audited
six months six months year
29 February 28 February 31 August
Rm 2004 2003 2003
Attributable profits/(losses) 200,8 (9,2) (197,4)
Headline earnings adjustments (231,1) 76,9 113,5
Goodwill amortisation 2,2 29,0 56,3
Goodwill impairment - 42,9 57,2
Share of associate goodwill - 2,4 -
Profits on sale of businesses (183,3) - -
Profits on sale of associates (50,0) - -
Losses on discontinuance of banking activities - 2,6 -
Headline (losses)/earnings (30,3) 67,7 (83,9)
Headline (loss)/earnings per share (cents) (9,0) 19,8 (25,0)
CONSOLIDATED CASH FLOW STATEMENT Reviewed Unaudited Audited
six months six months year
29 February 28 February 31 August
Rm 2004 2003 2003
Cash utilised from operations (19,2) (53,1) (9,5)
Taxation paid (4,1) (21,4) (17,7)
Cash dividends paid (130,7) (215,3) (215,3)
Proceeds/(outflow) from banking assets 16,8 (161,7) (85,9)
Investing activities 72,7 (54,2) (30,2)
Disposal of subsidiary business 117,7 - -
Financing activities (156,1) 144,4 16,9
Net movement in cash and cash equivalents (102,9) (361,3) (341,7)
Opening cash and cash equivalents 148,6 490,3 490,3
Closing cash and cash equivalents 45,7 129,0 148,6
CONSOLIDATED STATEMENT OF REVIEWED UNAUDITED AUDITED
CHANGES IN EQUITY six months six months year
29 February 28 February 31 August
Rm 2004 2003 2003
Ordinary shareholders" equity at
beginning of year 567,1 1,007,2 1,007,2
Attributable profit/(loss) 200,8 (9,2) (197,4)
Distributions (501,6) (215,2) (215,3)
Share issues in terms of options exercised 28,5 - -
Treasury shares bought back - (27,4) (27,4)
294,8 755,4 567,1
COMMENTARY
During the period under review Corpcapital continued to implement its strategy
to realise its assets and return capital to shareholders. Consequently
comparison of the results for the period with those of the previous year before
the announcement of the strategy is misleading.
Earnings for the period arise almost entirely from the realisation of
investments above their carrying values, including Corpbuild and Vestacor, which
were concluded previously but became unconditional during the current accounting
period. The proceeds from these realisations were included in the distribution
to shareholders on 9 February 2004. Details of these transactions and their
effect on Corpcapital"s accounts have previously been announced and are
disclosed in the annual financial statements for the period ending 31
August 2003.
As a result of the group"s strategy its operations are regarded as discontinuing
although the businesses in which the company remains invested are going
concerns. The accounting policies adopted for the period are in accordance with
the historic cost convention, except for the re-valuation of certain investments
to fair value and are consistent with the previous year.
The policies comply in all respects with South African Statements of Generally
Accepted Accounting Practice.
All investments are reflected at fair value. Provision has been made for all
onerous contracts based on the present value of the expected payments under
those contracts less expected benefits and recoveries.
During the period the group disposed of its remaining 40% interest in Madison
Properties for a consideration of R24 million, and its interests in Onelogix and
Fascor for an aggregate of R15 million. After 29 February 2004 the group"s head
office situated at 2 Arnold Road, Rosebank was sold for R22,5 million.
These disposals were concluded at or above their carrying values.
The group"s remaining investments traded satisfactorily.
Negotiations are underway for the realisation of all remaining investments.
Overhead costs have been cut in line with the reduction of assets under
management. The company will consider all available means for reducing costs
relating to the board, its listing and administration of its shareholders"
register.
The report of the inspectors appointed by the Minister of Trade and Industries
to investigate the company"s affairs at the behest of a former director of the
company is expected to be received soon. The company has cooperated fully with
the inspectors in the conduct of their investigation.
The company"s current estimate of its ultimate realisable net asset value is
72,4 cents per share. This does not take account of contingent liabilities.
Estimates of this nature are inevitably sensitive to changing market conditions
and the unpredictable timing of realisations. The timing and success of
realisations and the methods by which distributions may be made to shareholders,
are assumptions which may vary thereby affecting the estimated net asset value.
Certain assets and liabilities can only be finally realised over time and in
some cases contractual obligations extend over a number of years. The board is
managing the expeditious realisation and discharge of these assets and
liabilities. The timing of further distributions to shareholders will
necessarily be affected by these events.
The estimated net asset value and the results for the period should be viewed in
the context of:
- The distribution to shareholders of R215 million in cash (equivalent at the
time to 65 cents per share) during the preceding financial year; and
- The distribution to shareholders during the reporting period (on 9 February
2004) of cash and listed securities in Iliad and Redefine having an aggregate
value of R501,6 million (144 cents per share) at the date of distribution and an
aggregate value at the last 30 days volume weighted average price (including the
Iliad and Redefine dividends of 19 and 7,5 cents per share respectively) for
such securities, equivalent to 153 cents per share.
The company will continue to keep shareholders informed of developments
regarding the implementation of its strategy.
Eric Ellerine Benji Liebmann
Chairman Director
10 May 2004
INDEPENDENT REVIEW BY THE AUDITORS
These interim results have been reviewed by the auditors, Fisher Hoffman PKF
(Jhb) Inc, who have performed the review in accordance with the statement of
South African Auditing Standards applicable to review engagements. The scope of
the review was to enable the auditors to report that nothing has come to their
attention that causes them to believe that the accompanying condensed
consolidated interim financial statements are not fairly presented, in all
material respects, in accordance with South African Statements of Generally
Accepted Accounting Practice and in the manner required by the Companies Act in
South Africa. Fisher Hoffman PKF (Jhb) Inc unmodified review report on the
condensed consolidated interim financial statements is available for inspection
at the registered office of the company.
CORPCAPITAL LIMITED
(1983/011384/06)
2 ARNOLD ROAD
ROSEBANK
JOHANNESBURG 2196
PO BOX 471917
PARKLANDS 2121
SOUTH AFRICA
TELEPHONE +27 11 283 0000 TELEFAX +27 11 283 0088
EMAIL info@corpcapital.com
DIRECTORS: E ELLERINE* (Non-executive CHAIRMAN)
D Brooking** E GROLMAN* N N LAZARUS G B LIEBMANN
W H TRENGOVE** M H SACKS* T A WIXLEY**
(*NON-EXECUTIVE) (**INDEPENDENT NON-EXECUTIVE)
(Share code - CPA ISIN - ZAE000034260)
Date: 10/05/2004 11:00:07 AM Produced by the JSE SENS Department
