| Thu 9 Sep 2004, 17:31 | | Financial results for year ended 30 June 2004 |
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IFS - Consolidated audited annual financial results for year ended 30 June 2004
INDEPENDENT FINANCIAL SERVICES LIMITED
Company registration number 1950/037061/06.
Share code IND
ISIN code ZAE000025300
Consolidated audited annual financial results for year ended 30 June 2004
INCOME STATEMENT
2004 2003
R000
Gross revenue 13 760 13 521
Profit before taxation 3 264 3 092
Taxation (1 764) (1 070)
Profit after taxation 1 500 2 022
Minority interests (68) (164)
Net profit 1 432 1 858
Shares in issue (millions) 34 34
Earnings per share (cents) 4,2 5,5
Amortisation & impairment of goodwill 5,9 2,5
Headline earnings per share (cents) 10,1 8,0
Dividends per share (cents) 4,0 2,0
ABRIDGED CASH FLOW STATEMENT
Cash flows from:
- operating activities 5 186 897
- investing activities (1 866) (987)
- financing activities (492) (815)
Change in cash and equivalents 2 828 (905)
Opening cash and equivalents (833) 72
Closing cash and equivalents 1 995 (833)
CONDENSED STATEMENT OF CHANGES IN EQUITY
Opening balances 14 598 13 335
- Dividends re current year (1 360) (340)
- Dividends re previous year (425) (255)
Net profit for the year 1 432 1 858
Closing balances 14 245 14 598
ABRIDGED BALANCE SHEET
2004 2003
ASSETS R000 R000
Non-current assets 14 254 14 836
Tangible 4 294 3 027
Intangible 9 731 11 728
Investments 81 81
Loans receivable
148 -
Current assets 2 784 2 531
Inventory 675 1 302
Receivables 114 948
Cash resources 1 995 281
Total assets 17 038 17 367
EQUITY AND LIABILITIES
Capital and reserves 14 245 14 598
Share capital 340 340
Share premium
8 700 8 700
Non distributable reserve 372 372
Retained income 4 833 5 186
Minority interests 493
Current liabilities 2 793 2 276
Payables 733 810
Taxation 700 352
Bank overdraft - 1 114
Shareholders for dividends 1 360 -
Total equity and liabilities 17 038 17 367
Net asset value per share (cents) 41,9 42,9
ACCOUNTING POLICIES
The financial statements are prepared in accordance with South African
Statements of Generally Accepted Accounting Practice, and with the Companies
Act, 1973 as amended, and are consistent with the accounting policies used in
the previous year. These results have been audited by Cohen Hill Funk & Co.
Their unqualified audit opinion is available for inspection at the registered
office of the Company.
COMMENTS
Results - Results for the year are considered satisfactory and trading results
improved generally. The net cash position has improved from an overdraft of
R833 000 to a net cash in the bank of R1 995 000.
After being presented with provisional figures, the board took the decision to
write off the goodwill on the Cape Town brokerage to zero.
The effect of this was to reduce the pre-tax profits by R1 million.
This approach is consistent with the group`s Accounting policies and is
considered prudent by the board. Headline earnings increased by 26% but because
of the goodwill writedown and the consequent increase in the effective rate of
normal tax (32% to 47%), earnings per share have decreased by 24%.
AltX - A further review of the cost implications of moving to and being listed
on AltX resulted in the board deciding not to transfer the listing of the
company.
Liquidation of assets - As stated in the press announcement of 19 August 2004,
and pursuant to unrelated, unsolicited offers IFS has embarked upon a process of
liquidating its assets. During the year ended 30 June 2004 the company disposed
of its investment in Meyers Motor Metal Works. In addition, the company has
disposed of two properties since the year end. Furthermore, negotiations for
the sale of the company`s major asset, its insurance broking business, have
reached an advanced stage. The present discussions provide for payment of more
than one-half of the purchase price a year after the business has been
transferred. Shareholders will be asked to approve the sale in due course.
John Simpson, the CEO and major shareholder has undertaken to vote in favour of
the transaction. Thereafter the directors will decide whether the company
should retain a portion of the cash in order to constitute IFS as a listed cash
shell with a view to acquiring new assets. Shareholders will be kept informed.
ANNUAL GENERAL MEETING
The next AGM is convened to be held at 16h00 on 27 October 2004 at 35 River
Street, Houghton, Johannesburg.
John Simpson - Chief Executive Officer
8th September 2004
Directors
EG van der Watt B Proc*
JW Simpson, M A Hulley*
F Boshoff CA(SA)*
*Non-executive
Address
62 Juta Street Braamfontein Tel: (011) 339-1835
P O Box 32052 Fax: (011) 403-1411
Braamfontein e-mail: fb@dpm.co.
2017
