| Fri 8 Apr 2005, 14:08 | | Audited Results |
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African Dawn Capital Limited - Audited Results for the year ended February 2005
AFRICAN DAWN CAPITAL LIMITED
(`ADW` or `the Company`)
(Formerly ABC Cash Plus Limited)
(Incorporated in the Republic of South Africa)
(Registration Number: 1998/020520/06)
Share Code: ADW
ISIN Code: ZAE000060703
AUDITED RESULTS
Audited 28 Feb Audited 28 Feb
2005 2004
BALANCE SHEETS R`000 R`000
ASSETS 18,244 6,374
Office equipment and furniture 162 169
Loans - 129
Other assets 554 22
Advances - Long Term Portion 15,555 4,996
Deferred Taxation 1,973 1,058
Current assets 10,516 9,953
Trade and other receivables 1,046 7,365
Advances - Short Term Portion 7,626 1,153
Cash and cash equivalents 1,844 1,435
Total assets 28,760 16,327
EQUITY AND LIABILITIES
Shareholders Funds 8,223 5,470
Share capital and premium 13,385 12,775
Accumulated deficit (5,162) (7,305)
Non current liabilities 16,735 8,742
Long term loans 16,735 8,742
Current liabilities 3,802 2,115
Short term borrowings - 146
Trade and other payables 77 231
Short Term Portion of Long Term 3,725 1,738
Loans
Total equity and liabilities 28,760 16,327
NAV per share (cents) 14,61 10,84
Shares in issue at year end 56,268 50,450
Audited Audited
INCOME STATEMENTS 28 Feb 2005 28 Feb 2004
R`000 R`000
Revenue 6,633 3,855
Operating expenses (4,923) (3,324)
Profit before finance costs and 1,710 531
depreciation
Finance costs (488) (125)
Depreciation and amortisation (42) (231)
Profit before taxation 1,180 175
Taxation 963 982
Net profit for the period 2,143 1,157
Headline earnings 2,143 1,157
Basic and diluted earnings per 4,2 2,3
share (cents)
Weighted average number of shares 51,516 50,450
Headline earnings per share 4,2 2,3
(cents)
Audited Audited
28 Feb 2005 28 Feb 2004
CASH FLOW STATEMENTS R`000 R`000
Cash flows from operating activities (2,204) (7,250)
Cash flows from investing activities - 4
Cash flows from financing activities 2,613 8,042
Net movement in cash and cash 409 796
equivalents
Cash and cash equivalents at 1,435 639
beginning of year
Cash and cash equivalents at end of 1,844 1,435
year
STATEMENT OF CHANGES IN EQUITY
Share Share Outside Acc Total
Capital Premium Shareholders Loss
Interest
R`000 R`000 R`000 R`000
Balance as at 28 505 12,270 56 (8,518) 4,313
February 2003
Net profit relating 304 304
to subsidiaries sold
Net profit for the 853 853
period
Sale of subsidiaries (56) 56 -
Balance as at 28 505 12,270 - (7,305) 5,470
February 2004
Net profit for the 2,142 2,142
period
Shares Issued 58 554 611
Balance as at 28 563 12,824 - (5,163) 8,223
February 2005
COMMENTS
The Board of Directors are pleased to present the audited financial results of
the Group for the year ended 28 February 2005.
NATURE OF THE BUSINESS
The primary business of the Group is the granting of short and medium term home
improvement loans.
SOUTH AFRICAN STATEMENTS OF GAAP AND COMPANIES ACT REQUIREMENTS
The annual audited financial statements were prepared in compliance with South
African Statements of Generally Accepted Accounting Practice and the Companies
Act. The accounting policies for the year are consistent with those applied for
the year 28 February 2004.
HIGHLIGHTS
A 85% increase in headline earnings to R2,1m for the year under review, compare
to R1,1m in the previous year.
A 35% increase in NAV per share from 10,84 to 14,61 cents per share
An increase of 76% in total assets which increased from R16,3 million to R28,8
million
An improvement of 29% in cash and cash equivalents from R1,4 million to R1,8
million.
BUSINESS REVIEW
The restructuring of the group is complete. The shareholders approved the chang
of name from ABC Cash Plus Limited to African Dawn Capital Limited (`African
Dawn`) at a special general meeting held during December 2004. ABC Cash Plus
Limited commenced trading as African Dawn Capital Limited in January 2005.
African Dawn has continued growing the loan book from the significant
partnership funding agreement from the National Housing Finance Corporation
(`NHFC`) which was concluded during the course of 2003 and extended in 2004. Th
demand for housing related loan products has remained strong during the period
under review. With the continued demand and the favourable market conditions,
African Dawn has initiated various projects during the year to expand its
product range within the housing market, focusing on the LSM 1-4 income group
and, to augment the National Housing Finance Corporation partnership.
African Dawn has entered into agreements with leading financial services and
estate agency companies that will see it over time, becoming bond originators
and estate agents in this market segment. These relationships are expected to b
realised during the course of 2005.
The Group has continued to adopt a conservative approach in the extension of
loans thus ensuring that the growth has been measured and is sustainable.
Stringent lending criteria, coupled with improved risk management policies and
procedures has ensured that the provision for bad and doubtful debts has
remained within the targeted range set down by management. This is in line with
the policy of assessing risk more vigorously.
CHANGE IN DIRECTORS
Mr I Mophatlane was appointed non-executive Chairman of the Group and Mr Thando
Dingaan resigned as director ..
BEE
African Dawn announced to shareholders on 13 December 2004, the successful
conclusion of the acquisition of African Dawn Investments (Pty) Ltd resulting i
a 26% black economic empowerment shareholding in the Group. This resulted in a
total issue of 5,817,679 shares, during the year under review.
SUBSEQUENT EVENTS
The directors are pleased to announce the successful conclusion of a funding
facility with Rural Housing Finance Corporation, whereby a facility of R10m wil
be extended for a period of 3 years for specifically identified housing
projects. The impact of this transaction on earnings will reflect in the latter
part of the 2006 year end.
FINANCIAL REVIEW
The African Dawn Group reported a profit of R2.1 million for the year under
review, compared to R1,2m as at 28 February 2004. The benefit of the additional
financing that was secured and resultant loans extended to customers has had a
positive impact on revenue during the reporting period.
Operating expenses increased at a lower ratio to that of revenue and includes
cost of funding.
The balance sheet reflects a significant increase in advances, which was enable
by additional NHFC borrowings. The additional NHFC facility was obtained as a
result of the successful conclusion of the BEE transaction. The R23,2 m debtors
and advances are net of a provision for bad debts being raised for the year,
which is in line with AC133.
The increased profitability was reflected in the positive cash flow for the
year.
CORPORATE GOVERNANCE
The group subscribes to the principles of the King II report and will provide
its full Corporate Governance report in the Annual Report.
DIVIDENDS
The Group does not currently have a policy of paying dividends, as all cash is
retained and re-deployed within the Group.
AUDIT OPINION
The annual financial statements have been audited by Van Dyk Rossouw Inc. The
auditors` unqualified audit report is available for inspection at the company`s
registered office.
For and on behalf of the board of
directors
JM van Tonder
CEO
7 April 2005
Registered office Transfer secretaries
12th Floor Computershare Investor Services 2004 (Pty) Limited
Hillview Centre 8th Floor
Oak Street 11 Diagonal Street
Randburg Johannesburg
Directors
I Mophatlane* (Chairman), JM van
Tonder (CEO), MN Ramasehla, JI van
Niekerk*, C de W Vivier*, B Olivier*,
CM van Nieuwkerk
* Non-executive
