| Fri 25 Jun 2004, 16:53 | | Report And Dividend Declaration |
|
Nictus Limited - Abridged Report And Dividend Declaration Relating To The
Release Date: 25/06/2004 16:15:00 Code(s): NCS
NICTUS LIMITED - ABRIDGED REPORT AND DIVIDEND DECLARATION RELATING TO THE
AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31 MARCH 2004 AND
DETAILS OF THE NOTICE OF ANNUAL GENERAL MEETING
NICTUS LIMITED
(Registration number 1981/001858/06)
JSE Share code: NCS
NSX Share code: NCT
ISIN Code NA0009123481
(`Nictus` or `the company`)
ABRIDGED REPORT AND DIVIDEND DECLARATION RELATING TO THE AUDITED FINANCIAL
RESULTS FOR THE YEAR ENDED 31 MARCH 2004 AND DETAILS OF THE NOTICE OF ANNUAL
GENERAL MEETING
ABRIDGED GROUP INCOME STATEMENTS FOR THE YEAR ENDED 31 MARCH 2004
Audited Audited
2004 2003
R`000 R`000
Revenue 207 830 227 396
Cost of sales (106 528) (116 613)
Change in gross provision for unearned
premiums (38 561) (34 815)
Claims incurred (26 733) (39 745)
Gross profit 36 008 36 223
Investment income 4 674 5 084
Net selling and administration expenses (33 292) (29 901)
Profit from operations (before interest) 7 390 11 406
Interest paid (5 535) (2 954)
Profit before taxation 1 855 8 452
Taxation (151) (2 127)
Net profit after taxation 1 704 6 325
Minority shareholder`s interest (86) -
Profit for the year 1 618 6 325
Earnings per share (cents) 3,03 11,83
Headline earnings per share (cents) 1,09 11,29
Reconciliation between earnings and headline
earnings:
Profit for the year 1 618 6 325
Negative goodwill recognized (757) -
Negative goodwill amortised - (237)
Profit on disposal of property, plant and
equipment (23) (23)
Profit on disposal of shares (71) (31)
Fair value adjustment on shares (187) -
Headline earnings 580 6 034
ABRIDGED GROUP BALANCE SHEETS AS AT 31 MARCH
2004
Audited Audited
2004 2003
R`000 R`000
Assets
Non-current assets
Property, plant and equipment 29 392 19 109
Goodwill/(negative goodwill) on acquisition
of Subsidiary 1 647 (226)
Investments 17 224 14 086
Deferred taxation 5 172 2 052
Current assets
Inventories 23 466 25 418
Trade and other receivables 33 761 24 519
Cash resources 35 022 44 655
Advances 93 496 55 455
Receiver of Revenue 283 -
Total assets 239 463 185 068
Equity and liabilities
Capital and reserves
Issued capital 26 722 26 722
Non-distributable reserve 6 987 5 080
Retained income 7 613 8 976
Non-current liabilities
Interest bearing borrowings 16 373 11 413
Deferred taxation 3 471 3 149
Minority shareholder`s interest 1 897 -
Insurance technical provisions 122 393 84 536
Current liabilities
Bank overdraft 9 555 8 072
Short-term loans 8 469 11 987
Trade and other payables 35 964 24 976
Receiver of Revenue 19 157
Total equity and liabilities 239 463 185 068
ABRIDGED CASH FLOW STATEMENTS FOR THE YEAR
ENDED 31 MARCH 2004
Audited Audited
2004 2003
R`000 R`000
CASH FLOWS FROM OPERATING ACTIVITIES
Operating profit 7 390 11 406
Adjustment for:
Investment income (4 674) (5 084)
Depreciation 1 915 1 465
Profit on disposal of property, plant and
equipment (23) (23)
Profit on disposal of shares (71) (31)
Fair value adjustment on shares (187) -
Negative goodwill recognized (757) -
Amortisation of goodwill (negative goodwill) - (237)
Operating income before working capital
changes 3 593 7 496
Working capital changes
Decrease/(increase) in inventories 1 952 (7 247)
Increase in trade and other receivables (9 242) (3 860)
Increase in trade and other payables 10 988 6 100
Increase in insurance technical provisions 37 857 29 741
Increase in advances (38 041) (17 096)
Working capital acquired 3 155 (428)
Cash generated by operations 10 262 14 706
Investment income 4 674 5 084
Interest paid (5 535) (2 954)
Taxation paid (705) (1 786)
Ordinary dividends paid (3 207) (2 672)
Net cash inflow from operating activities 5 489 12 378
CASH FLOWS FROM INVESTING ACTIVITIES
Replacement of property, plant and equipment (12 788) (5 209)
Proceeds from disposal of property, plant
and equipment 2 727 3 257
Proceeds from disposal of investments 254 89
Investments made (3 134) (9 559)
Loans to associate company - 4 385
Expended to acquire shares in subsidiary (5 106) (1 838)
Net cash outflow from investing activities
(18 047) (8 875)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in long-terms loans 4 960 9 968
(Decrease)/increase in short-term loans (3 518) 3 751
Net cash flow from financing activities 1 442 13 719
Net movement in cash and cash equivalents (11 116) 17 222
Cash and cash equivalents at beginning of
year 36 583 19 361
Cash and cash equivalents at end of year 25 467 36 583
ABRIDGED STATEMENTS OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2004
Audited
Issued Non- Retained Total
Capital Distrib- Income
utable
Reserves
R`000 R`000 R`000 R`000
Balance at 31 March 2002 26 722 5 080 5 323 37 125
Net profit for the year - - 6 325 6 325
Dividend paid - - (2 672) (2 672)
Balance at 31 March 2003 26 722 5 080 8 976 40 778
Change in accounting policy - - 226 226
Balance at 31 March 2003
(restated) 26 722 5 080 9 202 41 004
Surplus on revaluation of
land and buildings - 1 907 - 1 907
Net profit for the year - - 1 618 1 618
Dividend paid - - (3 207) (3 207)
Balance at 31 March 2004 26 722 6 987 7 613 41 322
RESPONSIBILITY FOR ANNUAL FINANCIAL STATEMENTS
The annual financial statements have been prepared in accordance with South
African Statements of Generally Accepted Accounting Practice.
Appropriate accounting policies supported by reasonable and prudent judgements
have been applied consistently with those of the prior year, with the exception
of the Accounting Guide on Short-term Insurance as issued by The South African
Institute of Chartered Accountants, which has been applied for the first time.
In addition the group adopted AC 133: Financial Instruments and AC131 (IFRS 3):
Business combinations. These financial statements have been audited by KPMG Inc.
and their unqualified audit opinion is available for inspection at the
registered office of the company.
CHAIRMAN`S REPORT
The past year
The Nictus group had a very eventful year that saw many positive changes.
Although the current financial results were substantially lower than that of the
previous year, we expect positive benefits to be realised in the future.
On 1 January 2004, the group successfully acquired 65% of the shareholding in
Futeni Collections (Pty) Ltd, a Namibian debt collecting company, while the
Government Institutions Pension Fund owns the remaining 35%. Futeni operates
within the financial services sector in Namibia and its business operations are
complementary to the activities of the Nictus group of companies. The
transaction was undertaken in order to facilitate growth in earnings and
shareholder value.
The consolidation process that stemmed from the takeover of Corporate Guarantee
and its subsidiaries has virtually been concluded. It is expected to bear
positive effects that should materialise at the start of the 2005 fiscal year.
The refinement and realignment of our insurance products, which have been
adapted to the latest market trends and regulations, now offers very exciting
prospects for the coming years.
The upgrading of our motor segment facilities now includes the most modern and
largest General Motors dealership in Namibia, and this will undoubtedly bear
positive fruits in the future. General Motors also announced a number of new
models, which will contribute to our motor segment`s performance.
The newly renovated building in Randburg will now house our RSA Head Office as
well as a new carpet and furniture outlet.
Although the group`s bottom line was negatively affected by the afore-mentioned
growth and expansions, it is likely that in the long term a broader base for
future growth can be expected without significant additional expenditure.
Group Performance
Results can be summarised as follows:
Group asset base grew from R185 million in 2003 to R239 million in 2004.
Capital and reserves increased marginally from R40,7 millionin 2003 to R41,3
million.
Group turnover decreased by 8,6% (2003: increased by 13%).
Net profit for the year decreased by 74% (2003: increased by 52%).
Normal dividend paid was R3,2 million (2003: R2,67 million)
Earnings per share: 3,03 cents per share (2003: 11,83 cents per share).
Headline earnings per share: 1,09 cents per share (2003: 11,29 cents per share).
From the above, it is evident that our profit has not substantially improved as
was expected at the time of our interim report. We were, however, able to
maintain the profit position for the second half of the year. The reasons for
the decrease in net profit mentioned in our interim report, unfortunately,
continued to prevail during the latter part of the financial year.
Dividend declaration
In line with the dividend policy of the company, the board approved a dividend
of 1,5 c per share.
Board changes during the year
As part of the group`s restructuring process, the Board also underwent changes
during the year. Mr. J. J. Fourie left the group. We were very fortunate to
welcome aboard Prof. S.S. Loubser from the University of Stellenbosch Business
School as a non-executive independent Director. His appointment will certainly
add a wealth of knowledge and expertise to the Board.
The Board is in the process of increasing its complement to assist the existing
members to unlock the full potential of the group and to adhere to employment
equity standards. In adherence to the JSE regulations and the second King Report
on Corporate Governance for South Africa, Mr J.L. Olivier was appointed as
Chairman of the Board, while Mr. N.C. Tromp remains the Managing Director of the
group. We also welcome Mr. S.G.J. Smith, an insurance specialist, to the Board
of Corporate Guarantee Limited.
The future and year ahead
With the existing global and Southern African forecast of economic growth for
2004 and 2005 still in tact in Namibia and South Africa, the company expects to
grow moderately in the 2005 fiscal year. This moderate growth will be achieved
through new strategic initiatives being implemented by management along with the
restructuring of our insurance business and the prospects of an enhanced
partnership with General Motors.
This renewed focus will only have its full effect in the 2006 financial period
when we expect a better positive growth in the net income and the balance sheet.
The aforementioned, plus our efforts to communicate better in future with our
shareholders and the JSE as well as the NSX investment public at large will
hopefully have a positive impact on our share price, which was stagnant during
the past years.
In conclusion
The Board wishes to express its gratitude to the executive committee and all
staff members whom, under difficult conditions, performed their duties in a
conscientious and dedicated way during the past fiscal year. We also appreciate
the support of all stakeholders, our suppliers, bankers, attorneys, auditors and
customers.
We wish the executive committee and all employees much success with the daunting
task to realise our vision to be an independent group that creates above average
value for shareholders and other stakeholders through continuous profitable
growth.
What we achieved, and what we plan is eventually dependent on the grace of God
Almighty.
DECLARATION OF ORDINARY DIVIDEND
The board has declared a final dividend of 1,5 cents per share to ordinary
shareholders of Nictus for the year ended 31 March 2004.
The salient dates of this dividend are:
Last day to trade `cum` the dividend Friday, 9 July 2004
Shares commence trading `ex` the dividend
from the commencement of business on Monday, 12 July 2004
Record date Friday, 16 July 2004
Payment date Monday, 19 July 2004
Share certificates may not be dematerialised or rematerialised between Monday 12
July 2004 and Friday 16 July 2004 both days inclusive. Shareholders are
furthermore advised that a 10% non-resident shareholder`s tax on the declared
dividend will be applicable to all shareholders with addresses outside of
Namibia.
Annual Report and Notice of Annual General Meeting
As the annual report for the year ended 31 March 2004 (`the annual report`) will
be posted to shareholders today, within 3 months of Nictus`s year end, this
announcement is not required to appear in the press and will not be sent to
shareholders.
The annual report contains a notice convening the annual general meeting of
Nictus shareholders for the year ended 31 March 2004(`the AGM`). The AGM will be
held in the boardroom at the Nictus Building, corner of Pretoria and Dover
Street, Randburg, Gauteng on Wednesday 18th August 2004 at 09h00.
W O Olivier
Chairman
25 June 2004
