| Mon 14 Jun 2004, 15:05 | | RESULTS FOR THE YEAR ENDED 31 MARCH 2004 |
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REAL AFRICA HOLDINGS LIMITED - REVIEWED RESULTS FOR THE YEAR ENDED 31 MARCH 2004
Real Africa Holdings Limited
(Registration number 1994/003919/06)
JSE Share code: RAH
ISIN code: ZAE000008702
(`RAH`)
ANNOUNCEMENT OF REVIEWED RESULTS FOR THE YEAR ENDED 31 MARCH 2004
Summarised income statement
2004 2003
Reviewed Audited
Note R`000 R`000
Equity accounted earnings 55 118 29 406
- dividends received 35 899 34 671
- share of retained earnings 23 196 19 951
- goodwill (3 977) (25 216)
amortisation/impairment
Operating income 201 768 85 833
Interest income 68 253 108 278
325 139 223 517
Operating costs 26 827 39 102
Interest expense 15 621 4 252
Goodwill amortisation/impairment 10 500 16 161
Net investment gains/(losses) 1 216 745 (109 137)
- gross 257 970 (296 343)
- outside shareholders (41 225) 187 206
Profit before taxation 488 936 54 865
Taxation 42 031 34 325
Net profit after taxation 446 905 20 540
Outside shareholders 154 339 (8 311)
Attributable to ordinary 292 566 28 851
shareholders
Earnings per share (cents) 78,7 7,8
Headline earnings per share 81,0 16,3
(cents)
Number of ordinary shares - in 371,8 371,8
issue/weighted average
(millions)
Headline earnings is determined
as follows:
Attributable to ordinary 292 566 28 851
shareholders
Adjusted for (net of outside
shareholders):
Goodwill amortisation/impairment 8 599 31 819
Headline earnings 301 165 60 670
Summarised balance sheet
2004 2003
Reviewed Audited
R`000 R`000
Ordinary shareholders` funds 1 099 166 1 677 073
Outside shareholders 460 175 272 436
Short-term borrowings 240 117 -
1 799 458 1 949 509
Fixed assets 1 091 2 115
Investments and loans 1 028 245 935 702
Cash resources 803 967 1 050 554
Net current liabilities (33 845) (38 862)
1 799 458 1 949 509
Valuation of investments
10 June 26 June
2004 2003
Note R`000 R`000
Listed - at market value 544 610 957 329
Unlisted - at directors` 624 853 236 592
valuation
1 169 463 1 193 921
Value per share (cents) 4 358 284
Summarised cash flow statement
2004 2003
Reviewed Audited
R`000 R`000
Cash flows from operating 223 052 185 239
activities
Cash flows from investing (242 753) 54 743
activities
Cash flows from financing
activities
- Cash returned to (498 155) -
shareholders
- Other 271 269 6 451
Summarised statement of changes in equity
Ordinary Non-
share distributa Distribu
capital ble table
and reserves reserves Total
premium
R`000 R`000 R`000 R`000
Balance at 1 1 728 535 3 103 (54 565) 1 677 073
April 2003
Capital (870 368) - - (870 368)
reduction
Net profit for - - 292 566 292 566
the year
Attributable - (105) - (105)
share of
associates`
foreign currency
translation
reserve
Balance at 31 858 167 2 998 238 001 1 099 166
March 2004
Notes on the basis of preparation
1. We refer to the group`s 2003 annual report. In preparing the financial
information for the year under review, those outside shareholders in
Persetel Q Data Africa Holdings Limited (`PQAH`) that retained their
entitlement to Business Connexion Group Limited (previously Comparex
Limited) shares have been allocated their full share of the Business
Connexion dividend received and the diminution in value of their Business
Connexion investment, post the implementation date of the exchange. Group
net investment gains include a mark to market adjustment of R74 million in
respect of the group`s investment in Dimension Data plc (`Didata`), of
which R38 million is attributable to RAH.
2. The financial information has been prepared in conformity with South
African Statements of Generally Accepted Accounting Practice and the
policies are consistent with those of the previous accounting year.
3. The auditors, PricewaterhouseCoopers Inc, have issued their review opinion
on the annual financial statements for the year ended 31 March 2004. A copy
of the auditors` review report is available for inspection at the company`s
registered office.
4. Value per share, stated in cents, is based on ordinary shareholders` funds
reflected on the balance sheet and adjusted by the attributable increase in
the market value of listed investments and directors` valuation of the
unlisted investments at 10 June 2004:
Value of underlying net assets at market R1 329
value and directors` valuation on 10 June million
2004
Shares in issue (millions) 371,8
Value per share (cents) 358
Commentary
The following transactions have been completed in the current year:
* cash distribution of R498 million to shareholders;
* distribution of 37 788 117 Afrox Healthcare Limited shares to shareholders;
* the disposal of the equity interests in Chemcity (Proprietary) Limited,
Advance Wealth Management (Proprietary) Limited and Edu-Loan (Proprietary)
Limited. An agreement to dispose of Open Learning Group Limited was
concluded after year-end; and
* the acquisition by Afrisun Leisure Investments (Proprietary) Limited
(`Afrisun Leisure`) of additional equity interests in Afrisun Gauteng
(Proprietary) Limited (Carnival City Casino) and Sunwest International
(Proprietary) Limited (GrandWest Casino) amounting to R267 million.
Subsequent to year-end, the balance of the options on the `N` shares in Sunwest
International was exercised at a cost of R26 million. At the time of these
acquisitions, the funding of the assets in the RAH portfolio was restructured.
Medium-term preference share funding of R168 million was arranged to fund the
acquisitions, with the balance from internal available cash resources. The
preference share funding was implemented after year-end and the short-term
bridging loan was repaid.
The disposal of the equity interest in Ocfish Holding Company Limited to the
Public Investment Commissioner was not implemented and RAH is considering
approaches from other parties to acquire its interest in Ocfish Holding Company
Limited, which company together with Tiger Brands exercises joint control over
the listed Oceana Group Limited.
The performance in the current year has been largely affected by net investment
gains primarily impacted by the write-up in the group`s gaming investments,
which continued to perform to expectation. The directors revalued the shares
held by Afrisun Leisure in Afrisun Gauteng and SunWest International casinos and
the investment in the national and regional management companies by capitalising
the annualised dividend received from the companies during the year at a rate of
5,28%.
Included in operating income is special dividends of R162,3 million (R29,6
million in 2003). This dividend from Comparex Limited was declared in
anticipation of liquidation as part of the restructuring of Comparex Limited.
Shareholders of Real Africa Asset Management (`RAAM`) are considering proposals
to re-position the company and to the possible introduction of direct investment
by black economic empowerment investors in RAAM. Our other important associate,
Lifecare Group Holdings Limited continues to perform well.
By order of the board
DJJ Vlok AH Arnott
(Director) (Director)
Sandton
10 June 2004
Directors: AH Arnott; DF Behrens; FJ van der Merwe; DJJ Vlok
Physical address: Block A, Peter Place Park, 54 Peter Place, Bryanston,2021
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited) CORPORATE FINANCE
Date: 14/06/2004 03:00:04 PM
Produced by the JSE SENS Department
