| Thu 24 Mar 2005, 8:36 | | Purple Capital - Reviewed Interim Financial Result |
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Purple Capital - Reviewed Interim Financial Results For The Six Months Ended 28
February 2005
Purple Capital Limited
(formerly AVASA Holdings Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1998/013637/06)
Share code: PPE ISIN: ZAE000063897
(`Purple Capital` or `the company`)
REVIEWED INTERIM FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 28 FEBRUARY 2005
ABRIDGED REVIEWED INCOME STATEMENT
Reviewed Audited Unaudited
Six months Year Six months
28 February 31 August 29 February
2005 2004 2004
R`000 R`000 R`000
Revenue /(Reversal of unrealised
gain on investment) 1 755 (9 328) (5 471)
Earnings /(Loss) before interest
tax and depreciation 243 (20 038) (9 308)
Depreciation (37) (73) (37)
Operating profit/(loss) 206 (20 111) (9 345)
Interest paid (90) (1) -
Interest received 16 373 270
Net profit/(loss) before taxation 132 (19 739) (9 075)
Taxation (38) (550) 2 723
Net profit/(loss) after taxation 94 (20 289) (6 352)
Weighted number of shares
in issue (`000) 615 818 580 750 580 750
Basic earnings/(loss) per share
(cents) 0.02 (3.49) (1.09)
Headline earnings/(loss) per
share (cents) 0.02 (3.49) (1.09)
Number of shares in issue (`000) 1 114 083 580 750 580 750
ABRIDGED REVIEWED CASH FLOW STATEMENT
Reviewed Audited Unaudited
Six months Year Six months
28 February 31 August 29 February
2005 2004 2004
R`000 R`000 R`000
Cash flow from operating activity (1 720) (10 005) (4 891)
Cash flow from investing activity 199 (408) (1 842)
Cash flow from financing activity 7 383 - -
Net increase/(decrease)
in cash resources 5 862 (10 413) (6 733)
Cash resources at beginning
of period (335) 10 078 10 078
Cash resources at end of period 5 527 (335) 3 345
ABRIDGED REVIEWED BALANCE SHEET
Reviewed Audited Unaudited
Six months Year Six months
28 February 31 August 29 February
2005 2004 2004
R`000 R`000 R`000
ASSETS
Non-current assets 11 231 9 364 18 456
Fixed assets 275 274 310
Investments 10 956 9 090 12 811
Carried interest receivable - - 2 062
Deferred taxation - - 3 273
Current assets 5 670 627 4 248
Sundry debtors 81 408 841
Deposits 62 69 62
Bank and cash 5 527 150 3 345
Total assets 16 901 9 991 22 704
EQUITY AND LIABILITIES
Capital and reserves 15 382 7 906 21 843
Issued capital and premium 47 761 40 379 40 379
Accumulated loss (32 379) (32 473) (18 536)
Current liabilities 1 519 2 085 861
Accounts payable 1 481 1 600 861
Deferred taxation 38 - -
Bank overdraft - 485 -
TOTAL EQUITY AND LIABILITIES 16 901 9 991 22 704
Net asset value per
share (cents) 1.38 1.36 3.76
Net tangible asset value per
share (cents) 1.38 1.36 3.76
STATEMENT OF CHANGES IN EQUITY
Reviewed Audited Unaudited
Six months Year Six months
28 February 31 August 29 February
2005 2004 2004
R`000 R`000 R`000
Balance at beginning of year 7 906 28 195 28 195
Net profit/(loss) for the period 94 (20 289) (6 352)
Shares issued 8 000 - -
Issue costs written off (618) - -
15 382 7 906 21 843
COMMENTARY
Results overview
The interim financial results for the six month period ended 28 February 2005
reflect a marginal improvement, and set a sound foundation for the future. The
principle source of income for the six months to 28 February 2005 is as a result
of an unrealised gain in the Sage share price over the period under review.
Purple Capital continues to manage the consortium of investors in Sage Group
Limited.
The arbitration in respect of the African Harvest Capital Holdings (Pty) Ltd
proposed merger was a costly exercise and severely depleted the company`s cash
resources. The arbitration was cancelled on the 11 October 2004.
Purple Capital has now been able to contain expenses and reduce the ongoing
operating overheads of the business.
Rights offer, specific issue and name change
Purple Capital successfully completed a rights offer and specific issue of
shares for cash on 24 January 2005, raising an aggregate amount of R8 million.
With effect from 4 February 2005 the name of the company was changed from AVASA
Holdings Limited to Purple Capital Limited. The company has traded under its new
name on the JSE Securities Exchange from 21 February 2005.
Reconstitution of the board
On 4 October 2004, Brian Myerson tendered his resignation, which the board
accepted. At the same time, Mark Barnes, with the support of a majority of
shareholders, joined the board of the company as Chairman. Peter Barrable, the
company secretary, was appointed on 15 December 2004 as a non-executive director
in order to bring the number of directors to the level required. He resigned on
22 February 2005. The board of Purple Capital would like to thank Mr Barrable
for his services. On that same date Craig Carter was appointed as an executive
director.
Transactions in pursuit of the forward strategy
Purple Capital`s broad strategy remains to position itself as an independent
financial group that will be well positioned to advise, fund and provide a range
of financial services to the new corporate South Africa.
In line with this the company will, inter alia, grow by taking stakes in small,
entrepreneurial financial service entities specifically in the following areas:
-corporate finance - in the listed and private market including sponsor broker
capabilities;
-asset management - from personal financial planning to corporate pension funds;
- debt and equity origination and instrument design;
-private equity investment - through the establishment of specific funds managed
by, and housed within, Purple Capital; and
-elements of treasury - including corporate exposure management and trading.
Purple Capital is pleased to report that the transactions disclosed in an
accompanying announcement published today elsewhere in this publication are the
first steps towards the achievement of its forward strategy.
Accounting principles
The same accounting policies and methods of measurement and recognition as those
applied in the 2004 annual financial statements have been followed in preparing
this interim report.
The abridged interim financial statements are prepared in accordance with South
African Statements of Generally Accepted Accounting Practice. The statements
have been reviewed by the auditors and the review report is available at the
company`s offices for inspection.
On behalf of the Board
Mark Barnes Andrew Bonamour
Chairman Chief Executive
Johannesburg
23 March 2005
Registered Office: Transfer Secretaries:
First Floor, Eastwood Computershare Investor
Services 2004 (Pty) Limited
57 Sixth Road Ground Floor
Hyde Park 70 Marshall Street
(PO Box 411449, Craighall, 2024) Johannesburg, 2001
(PO Box 61051, Marshalltown, 2107)
Independent Auditors: Sponsor:
KPMG Incorporated Java Capital (Pty) Limited
KPMG Crescent 2 Arnold Road
85 Empire Road, Parktown Rosebank
(Private Bag 9, Parkview, 2122) Johannesburg, 2196
(PO Box 2087, Parklands, 2121)
Directors:
M A Barnes (Executive Chairman), J Treger (non-executive, British), A D
Bonamour, C C Carter
