|
Sasani Limited - Summarised results for the six months ended 31 December 2004
Sasani Limited
(Incorporated in the Republic of South Africa)
(Registration number 1955/000259/06)
Share code: SSA ISIN: ZAE000044384
(`Sasani` or `the Group`)
SUMMARISED RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2004
GROUP INCOME STATEMENTS
Continuing operations
Unaudited for the Audited for the
six months ended year ended
31 December 31 December 30 June
2004 2003 2004
R`000 R`000 R`000
Revenue 76 324 91 780 205 157
Contribution 44 644 53 077 119 071
Overheads (33 385) (36 558) (82 203)
Operating profit
before
depreciation (EBITDA) 11 259 16 519 36 868
Depreciation (7 581) (11 874) (25 730)
Amortisation of
trademarks and
goodwill (1 218) (1 855) (3 096)
Share of profit of
associate company - - 603
Operating profit 2 460 2 789 8 645
Net interest 1 276 913 981
Profit before taxation 3 737 3 702 9 626
Taxation - this period (699) (787) (2 405)
Taxation - previous
period - - 1 576
Profit after taxation 3 038 2 914 8 797
Outside shareholders`
interest (214) 129 (179)
Earnings attributable
to ordinary
shareholders 2 824 3 043 8 618
Headline earnings
reconciliation
Earnings attributable
to ordinary
shareholders
Adjustments:
Adjustments:
Amortisation of
negative goodwill
Adjustments:
Impairment of
property
Adjustments: Profit
on sale of
property, plant and
equipment
Headline earnings
Number of shares
(`000)
Weighted average
Earnings per ordinary
share (cents)
Headline earnings
Earnings attributable
to ordinary
shareholders
GROUP BALANCE SHEETS
ASSETS
Non-current assets 63 693 81 511 65 639
Property, plant and
equipment 41 243 51 983 43 331
Trademarks,
copyrights and
goodwill 17 369 19 816 18 589
Other assets 5 082 9 712 3 719
Current assets 75 648 68 331 86 286
Inventories 8 484 9 978 7 078
Trade and other
receivables 23 525 46 657 33 116
Cash and cash
equivalents 43 639 11 697 46 092
Total assets 139 341 149 842 151 925
EQUITY AND LIABILITIES
Capital and reserves
Issued capital and
reserves (170 561) (158 541) (164 117)
Minority interests (601) (4 364) (388)
Deferred taxation (1 707) (4 615) (2 405)
Non-current
liabilities 56 456 47 103 44 620
Non-interest bearing
borrowings (2 136) - (261)
Inter- Group
borrowings 58 591 51 208 44 654
Interest bearing
borrowings - (4 105) 227
Current liabilities (22 927) (29 425) (29 635)
Trade and other
payables (20 665) (26 526) (27 570)
Taxation payable (56) (475) 725
Interest bearing
borrowings - (2 425) (1 090)
Non-interest bearing
borrowings (2 207) - (1 700)
Total equity and
liabilities (139 341) (149 842) (151 925)
Gearing percentage
Net asset value per
share (cents)
Including intangible
assets
Excluding intangible
assets
Net cash/debt 39 296 5 167 43 269
Cash and cash
equivalents 43 639 11 697 46 092
Interest bearing
borrowings (short and
long term) 4 343 6 530 2 824
GROUP CASH FLOW
STATEMENTS
Cash generated by
operations 10 142 16 414 37 247
Net interest
received/(paid) 1 277 913 980
(Increase)/Decrease
in working capital (4 828) (21 828) 712
Taxation paid (7 150) (1 524) (8 130)
Dividends paid (2 969) - -
Cash available from
operations (3 528) (6 026) 30 809
Net payments for
businesses - - (5 500
Net fixed assets
acquired (4 590) (18 772) (20 847
Other investing
activities 2 182 (9 706) 8 344
Financing activities 3 484 2 746 (17 785
Net movement in cash
and cash equivalents (2 452) (31 757) (4 979)
Cash and cash
equivalents at
beginning of period 46 091 43 453 43 453
Cash and cash
equivalents of
businesses acquired - - 7 618
Cash and cash
equivalents at end of
period 43 639 11 697 46 092
STATEMENTS OF CHANGES
IN EQUITY
Ordinary shares
Balance at the
beginning of period 586 588 588
Issued during period 20 - -
Purchase of treasury
shares - (3) (2
Balance at end of
period 606 585 586
Share premium
Balance at the
beginning of period 106 985 107 205 107 205
Issued during period 1 073 - -
Purchase of treasury
shares - (220) (220)
Balance at end of
period 108 058 106 985 106 985
Non-distributable
reserves
At beginning and end
of period 225 225 225
Retained earnings
At beginning of period 61 817 47 703 47 703
Net profit for period 2 824 3 043 8 618
Dividends declared (2 969) - -
At end of period 61 672 50 746 56 321
Total issued capital
and reserves 170 561 158 541 164 117
GROUP INCOME STATEMENTS
Discontinuing operations
Unaudited for the Audited for the
six months ended year ended
31 31 December 31 December 30 June
2004 2003 2004
R`000 R`000 R`000
Revenue 39 586 37 442 81 864
Contribution 31 624 30 136 63 295
Overheads (20 592) (18 793) (40 880)
Operating profit
before depreciation
(EBITDA) 11 032 11 343 22 415
Depreciation (6 804) (5 870) (13 051)
Amortisation of
trademarks and
goodwill (1 031) (1 031) (2 053)
Share of profit of
associate company - (897) -
Operating profit 3 197 3 545 7 311
Net interest (163) (130) (499)
Profit before taxation 3 033 3 415 6 812
Taxation - this period (1 474) (1 809) (3 432)
Taxation - previous
period - - -
Profit after taxation 1 559 1 606 3 380
Outside shareholders`
interest - (17) -
Earnings attributable
to ordinary
shareholders 1 559 1 589 3 380
Headline earnings
reconciliation
Earnings attributable
to ordinary
shareholders
Adjustments:
Adjustments:
Amortisation of
negative goodwill
Adjustments:
Impairment of
property
Adjustments: Profit
on sale of
property, plant and
equipment
Headline earnings
Number of shares
(`000)
Weighted average
Earnings per ordinary
share (cents)
Headline earnings
Earnings attributable
to ordinary
shareholders
GROUP BALANCE SHEETS
ASSETS
Non-current assets 53 497 44 445 54 899
Property, plant and
equipment 39 639 28 459 39 539
Trademarks,
copyrights and
goodwill 13 858 15 986 14 887
Other assets - - 473
Current assets 13 969 15 347 12 988
Inventories 755 899 859
Trade and other
receivables 13 026 14 538 12 195
Cash and cash
equivalents 189 (90) (66)
Total assets 67 466 59 791 67 887
EQUITY AND LIABILITIES
Capital and reserves
Issued capital and
reserves 556 (1 589) (3 380)
Minority interests - - -
Deferred taxation - - -
Non-current
liabilities (63 405) (51 382) (53 597)
Non-interest bearing
borrowings 369 - (3 576)
Inter- Group
borrowings (58 591) (51 208) (44 654)
Interest bearing
borrowings (5 183) (174) (5 368)
Current liabilities (4 617) (6 820) (10 910)
Trade and other
payables (4 397) (4 207) (6 800)
Taxation payable - (1 623) (3 905)
Interest bearing
borrowings (220) (990) (205)
Non-interest bearing
borrowings - - -
Total equity and
liabilities (67 466) (59 791) (67 887)
Gearing percentage
Net asset value per
share (cents)
Including intangible
assets
Excluding intangible
assets
Net cash/debt (4 845) (1 254) (9 215)
Cash and cash
equivalents 189 (90) (66)
Interest bearing
borrowings (short and
long term) 5 034 1 164 9 149
GROUP CASH FLOW
STATEMENTS
Cash generated by
operations 11 019 11 336 22 390
Net interest
received/(paid) (163) (130) (498)
(Increase)/Decrease
in working capital (4 075) (4 465) 595
Taxation paid - - -
Dividends paid - - -
Cash available from
operations 6 780 6 741 22 487
Net payments for
businesses - - -
Net fixed assets
acquired (6 891) (5 509) (23 754)
Other investing
activities 751 - -
Financing activities (386) (882) 1 640
Net movement in cash
and cash equivalents 254 349 373
Cash and cash
equivalents at
beginning of period (65) (439) (439)
Cash and cash
equivalents of
businesses acquired - - -
Cash and cash
equivalents at end of
period 189 (90) (66)
STATEMENTS OF CHANGES
IN EQUITY
Ordinary shares
Balance at the
beginning of period - - -
Issued during period - - -
Purchase of treasury
shares - - -
Balance at end of
period - - -
Share premium
Balance at the
beginning of period - - -
Issued during period - - -
Purchase of treasury
shares - - -
Balance at end of
period - - -
Non-distributable
reserves
At beginning and end
of period - - -
Retained earnings
At beginning of period (2 115) - -
Net profit for period 1 559 1 589 3 380
Dividends declared - - -
At end of period (556) 1 589 3 380
Total issued capital
and reserves (556) 1 589 3 380
GROUP INCOME STATEMENTS
Total company
Unaudited for the Audited for the
six months ended six months ended
31 31 December 31 December 30 June
2004 2003 2004
R`000 R`000 R`000
31 December 31 December 30 June
2004 2003 2004
R`000 R`000 R`000
Revenue 115 910 129 221 287 021
Contribution 76 268 83 213 182 366
Overheads (53 977) (55 351) (123 083)
Operating profit
before depreciation
(EBITDA) 22 291 27 862 59 283
Depreciation (14 385) (17 744) (38 781)
Amortisation of
trademarks and
goodwill (2 249) (2 886) (5 149)
Share of profit of
associate company - (897) 603
Operating profit 5 657 6 334 15 956
Net interest 1 113 783 482
Profit before taxation 6 770 7 117 16 438
Taxation - this period (2 173) (2 596) (5 837)
Taxation - previous
period - - 1 576
Profit after taxation 4 597 4 520 12 177
Outside shareholders`
interest (214) 129 (179)
Earnings attributable
to ordinary
shareholders 4 383 4 632 11 998
Headline earnings
reconciliation
Earnings attributable
to ordinary
shareholders 4 383 4 632 11 998
Adjustments:
Adjustments:
Amortisation of
negative goodwill (966) (336) (1 289)
Adjustments:
Impairment of
property (632) - 413
Adjustments: Profit
on sale of
property, plant and
equipment - - (177)
Headline earnings 2 785 4 296 10 945
Number of shares
(`000)
Weighted average 58 785 58 599 58 599
Earnings per ordinary
share (cents)
Headline earnings 4,7 7,3
18,7Earnings attributable
to ordinary
shareholders 7,5 7,9 20,5
GROUP BALANCE SHEETS
ASSETS
Non-current assets 117 191 125 955 120 538
Property, plant and
equipment 80 882 80 441 82 870
Trademarks,
copyrights and
goodwill 31 227 35 802 33 476
Other assets 5 082 9 712 4 192
Current assets 89 617 83 678 99 274
Inventories 9 239 10 876 7 937
Trade and other
receivables 36 550 61 195 45 311
Cash and cash
equivalents 43 828 11 607 46 026
Total assets 206 808 209 633 219 812
EQUITY AND LIABILITIES
Capital and reserves
Issued capital and
reserves (170 004) (160 130) (167 497)
Minority interests (602) (4 364) (388)
Deferred taxation (1 707) (4 615) (2 405)
Non-current
liabilities (6 949) (4 280) (8 977)
Non-interest bearing
borrowings (1 767) - (3 836)
Inter- Group
borrowings - - -
Interest bearing
borrowings (5 182) (4 280) (5 141)
Current liabilities (27 544) (36 245) (40 545)
Trade and other
payables (25 062) (30 733) (34 370)
Taxation payable (56) (2 097) (3 180)
Interest bearing
borrowings (220) (3 414) (1 295)
Non-interest bearing
borrowings (2 207) - (1 700)
Total equity and
liabilities (206 808) (209 633) (219 812)
Gearing percentage 3,2 4,7 3,8
Net asset value per
share (cents)
Including intangible
assets 289,2 273,3 285,8
Excluding intangible
assets 236,1 212,2 228,7
Net cash/debt 34 452 3 913 34 054
Cash and cash
equivalents 43 828 11 607 46 026
Interest bearing
borrowings (short and
long term) 9 376 7 694 11 972
GROUP CASH FLOW
STATEMENTS
Cash generated by
operations 21 161 27 750 59 637
Net interest
received/(paid) 1 113 783 482
(Increase)/Decrease
in working capital (8 903) (26 294) 1 307
Taxation paid (7 150) (1 524) (8 130)
Dividends paid (2 969) - -
Cash available from
operations 3 252 715 53 296
Net payments for
businesses - - (5 500)
Net fixed assets
acquired (11 481) (24 281) (44 601)
Other investing
activities 2 932 (9 706) 8 344
Financing activities 3 098 1 864 (16 145)
Net movement in cash
and cash equivalents (2 198) (31 407) (4 606)
Cash and cash
equivalents at
beginning of period 46 026 43 014 43 014
Cash and cash
equivalents of
businesses acquired - - 7 618
Cash and cash
equivalents at end of
period 43 828 11 607 46 026
STATEMENTS OF CHANGES
IN EQUITY
Ordinary shares
Balance at the
beginning of period 586 588 588
Issued during period 20 - -
Purchase of treasury
shares - (3) (2)
Balance at end of
period 606 585 586
Share premium
Balance at the
beginning of period 106 985 107 205 107 205
Issued during period 1 073 - -
Purchase of treasury
shares - (220) (220)
Balance at end of
period 108 058 106 985 106 985
Non-distributable
reserves
At beginning and end
of period 225 225 225
Retained earnings
At beginning of period 59 701 47 703 47 703
Net profit for period 4 383 4 632 11 998
Dividends declared (2 969) - -
At end of period 61 115 52 335 59 701
Total issued capital
and reserves 170 004 160 130 167 497
Basis of preparation
The consolidated Group results for the six months ended 31 December 2004 have
been prepared in accordance with and comply with South African Statements of
Generally Accepted Accounting Practice prevailing in South Africa and have been
consistently applied with those used in the previous year.
COMMENTARY
Results for six months to end December 2004
The provisional operating results for the first six months of the year reflect
the significant downturn in negative film footage processed during the period
as well as the substantially reduced contribution from education. The unhealthy
state of the South African film production industry during the period is
reflected in the comparative footages of negative processed:
Growth /(Decline) in footage July - Dec 2004 versus
July - Dec 2003
Johannesburg Cape Town Total
Commercials (9%) (12%) (11%)
Features (64%) 26% (32%)
Total (46%) 2% (22%)
This has resulted in an earnings decline from 7,9cps to 7,5cps and headline
earnings decline from 7,3 cps to 4,7cps. Cashflow has been steady with the R39m
net cash balance in line with both budget and last June`s year-end level.
Forecast for full year to end June 2005
Based on our for ward order book, the industry is likely to remain depressed
until June 2005. In the absence of the sale of any assets, we would have
expected full year results to be materially lower than the prior year.
However, as communicated to shareholders last week, the Board has decided that
it is in shareholder `s interests to sell certain parts of Sasani. This has
culminated in the disposals announced over SENS on 2 February 2005 and in the
press the following day. The sale was finalised after keenly contested bidding
lead to a R4m premium to NTAV. A detailed circular was posted to shareholders
on 7 February 2005 and shareholders will be asked to ratify the sale in a
general meeting scheduled for 25 February 2005.
The sale will have a marked impact on results reported for the full year. Net
cash will jump to R95m, NAV is forecast to be in the region of 270cps and NTAV
will be around 240cps. The earnings effect will be negative as a result of the
reduced contribution from sale assets in the second half and the extraordinary
net write-down of trademarks.
Industry prospects
Further into the future, we expect that international business on both feature
and commercials fronts will continue to be negatively affected by the strong
rand.
This should be offset to some extent by the government stimulation of the
feature production sector. In the facilities area, competition will remain
fierce as cheaper technological alter natives become available and barriers to
entry reduce.
On the educational side the Ethiopian educational contract has been completed
and a small second phase production order has been lost to a Canadian company
that tendered at 40% of our bid price. While we are sceptical of their ability
to deliver at this price, it does place some uncertainty on future
opportunities there.
Sasani`s future
Based on the difficult trading conditions, changing technologies and a general
lack of confidence in our ability to improve the return on assets in Sasani`s
capex- intensive top end post-production and rentals businesses, a Board
decision was taken in November 2004 to solicit offers for these businesses.
This has resulted in the sales mentioned earlier.
After further consideration during the interim period, the Board is of the
opinion that the remaining businesses do not offer sufficient critical mass nor
potential growth opportunities to war rant the existing management
infrastructure. In addition, new business initiatives have not materialised to
the extent hoped. As a result, a decision was taken by the Board on 9 February
2005 to sell the remaining Sasani businesses.
Unless an unexpected new business opportunity presents itself during this
unbundling period, the intention is to repatriate cash to shareholders.
Interested parties are advised to exercise caution in their valuation of
remaining assets as these disposals are collectively anticipated to realise
less than net tangible asset value. A statement around the amount of expected
realization proceeds will be issued
in due course.
By order of the board
N J Frangos J R H Whitehouse
Chairman Chief Executive Officer
Johannesburg
7 February 2005
DIRECTORS:
N J Frangos (Chairman)*, J R H Whitehouse (CEO)
G J Doyer*, E Ellerine*, W Msomi*#, P J Theron
R van Wijk (*Non-excutive, #Independent)
COMPANY SECRETARY:
J M Caddy, A.C.I.S., F.C.I.B.M.
SPONSOR:
LPC Manhattan Sponsors (Proprietary) Limited
TRANSFER SECRETARIES:
Computershare Investor Ser vices 2004 (Pty) Ltd
70 Marshall Street, Johannesburg 2001
PO Box 61051, Marshalltown, 2107
SASANI LIMITED
Registered office: 2 Johannesburg Road
Highlands North Ext 6, Johannesburg, 2192
Date: 09/02/2005 03:33:29 PM
Produced by the JSE SENS Department
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
