SEKUNJALO INVESTMENTS LIMITED - PRESS RELEASE
SEKUNJALO INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1996/006093/06)
Share code: SKJ ISIN: ZAE000017893
PRESS RELEASE
SEKUNJALO RELEASES ANNUAL FINANCIAL RESULTS
29 November 2004
Sekunjalo Investments Limited today released its annual financial results for
the year ended 31 August 2004.
The results reveal headline earnings per share of 2,66 cents, group turnover of
R311,6million, headline earnings of R 4,1 million and a net profit of
R3,9million.
CEO, Dr Iqbal Surve, described the results as a solid performance despite the
impact of the strengthened rand on the Group`s industrial business in the
fishing sector and the export business in the health sector. He indicated that
the Group has taken into account in its future growth strategy that a
strengthened rand is here to stay and hence has put in place a number of steps
to decrease its dependence on exports and use the capital asset base of the
group`s companies to focus on importing from the African continent as well as a
stronger focus on its leading brands in the local market.
Partially the decrease in earnings has been due to the strengthened rand but
also a softening of the American market for lobster tails. An increased focus
on the European market with the emphasis on live lobster exports over the next
12 months are some of the steps taken to offset the dependency on the dollar and
the American market. The past financial year saw a surplus of canned fish in
the South African market which resulted in pressure on canned fish prices as
well as a decrease off take from the processing plant.
However the past year showed a significantly strengthened performance from the
pharmaceutical, diagnostic and information technology business from the group
which showed a significant turnaround to a positive earnings as compared to the
previous year. Sekunjalo is confident that the group strategy to build a
significant pharmaceutical and diagnostic business in on track and is expecting
the pharmaceutical business to become a significant contributor to the earnings
of the group in the years ahead.
Dr Surve said, `Of significance to our shareholders is that the group balance
sheet has been substantially strengthened by a combination of the Rights Offer
in February 2004 as well as a reduction in long-term borrowings. The net
effect of the above is that the Group`s balance sheet has been strengthened by
almost R100 million since the last financial year. The group now has a solid
platform from which to make key acquisitions and grow through a targeted and
selective acquisition strategy in line with its transformative business model.`
Sekunjalo recently announced its acquisition of 70 % of medical administrator
and life assurance companies, Benmed and Bonlife, respectively, which is aimed
at providing affordable solutions to the still untapped market of the poor and
emerging black middle class.
Shareholders should evaluate Sekunjalo on its underlying asset base, since the
Group has built up a significant asset base, which if unlocked, will bring
significant value to shareholders.
`We look forward to the forthcoming period and unlocking value for Sekunjalo
shareholders` said Dr Surve.
Ends
Issued by Zenariah Barends : Head Group Communications
For further information call: Z Barends 082 441 0433 / 021 451 7976
Date: 30/11/2004 07:30:09 AM
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