| Tue 10 May 2005, 14:47 | | Results For The Six Months Ended 28 February 2005 |
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Corpcapital - Reviewed Interim Results For The Six Months Ended 28 February 2005
Corpcapital Limited
(Incorporated in the Republic of South Africa)
(Registration number 1983/011384/06)
JSE Share code: CPA
ISIN: ZAE000034260
(`Corpcapital`)
REVIEWED INTERIM RESULTS FOR THE SIX MONTHS ENDED 28 FEBRUARY 2005
Consolidated balance sheet Reviewed Reviewed Audited
six months six months year
Rm 28 Feb 2005 29 Feb 2004 31 Aug 2004
Assets
Non-current assets 565,0 769,3 647,2
Financial product assets 291,6 266,5 273,1
Investments available for sale 14,9 160,2 60,5
Deferred taxation - - 2,3
Associates and joint ventures 30,0 81,0 77,8
Property, plant and equipment
and intangibles - 39,0 5,2
Corpcapital Life policyholder
investments, interest
bearing securities and deposits 228,5 222,6 228,3
Current assets 226,3 334,3 383,5
Cash and cash equivalents 191,6 45,7 256,0
Trading securities and liquid
assets 2,2 5,5 2,9
Advances and other accounts
receivable 28,7 215,4 114,4
Inventories - 65,4 6,4
Taxation assets 3,8 2,3 3,8
Total assets 791,3 1 103,6 1 030,7
Equity and liabilities
Share capital and premium 10,0 2,2 8,8
Retained income and reserves 116,3 292,6 307,0
Ordinary shareholders` equity 126,3 294,8 315,8
Minority shareholders` interest - 10,8 -
Total shareholders` equity 126,3 305,6 315,8
Total liabilities 665,0 798,0 714,9
Non-current liabilities 537,2 685,8 619,2
Corpcapital Life policyholder
liabilities
- investment contracts 228,5 222,6 228,3
Long-term debt 17,1 181,1 117,8
Deferred taxation - 15,6 -
Financial product liabilities 291,6 266,5 273,1
Current liabilities 127,8 112,2 95,7
Short term debt 108,1 - 4,9
Trading liabilities 2,2 3,5 3,6
Accounts payable 6,5 85,5 72,3
Taxation liabilities 11,0 23,2 14,9
Total equity and liabilities 791,3 1,103,6 1,030,7
Net asset value per share
(cents) 33,2 81,7 83,6
Issued ordinary shares (000) 379,941 360,801 377,579
Issued `A` ordinary shares (000) 104,287 104,287 104,287
Contingency
Suretyship limited to R50 million for disputed warranty claims relating to the
Corpcom sale.
Consolidated income statement Reviewed Reviewed Audited
six months six months year
Rm 28 Feb 2005 29 Feb 2004 31 Aug 2004
Revenue 35,1 309,3 583,4
(Loss)/profit before taxation
and goodwill (0,6) 205,4 206,7
Goodwill written off - 2,2 3,7
(Loss)/profit before taxation (0,6) 203,2 203,0
Taxation 0,1 1,2 (16,5)
(Loss)/profit after taxation (0,7) 202,0 219,5
Attributable to minority
shareholders - 1,2 2,5
Attributable (losses)/profits (0,7) 200,8 217,0
Attributable (loss)/profit per
ordinary share (cents) (0,2) 59,9 62,1
Weighted average number of ordinary
shares in issue (`000) 378,061 335,479 349,235
Consolidated statement of changes Reviewed Reviewed Audited
in equity six months six months year
Rm 28 Feb 2005 29 Feb 2004 31 Aug 2004
Ordinary shareholders` equity at
beginning of year 315,8 567,1 567,1
Attributable (loss)/profit (0,7) 200,8 217,0
Distributions (190,0) (501,6) (500,7)
Share issued on exercise of options 1,2 28,5 32,4
126,3 294,8 315,8
Consolidated cash flow statement Reviewed Reviewed Audited
six months six months year
Rm 28 Feb 2005 29 Feb 2004 31 Aug 2004
Operating activities 33,2 (2,4) 29,9
Taxation paid (2,4) (4,1) (14,9)
Cash dividends paid (190,0) (130,7) (130,7)
Investing activities 97,8 190,4 395,5
Financing activities (3,0) (156,1) (172,4)
Net change in cash and cash
equivalents (64,4) (102,9) 107,4
Opening cash and cash
equivalents 256,0 148,6 148,6
Closing cash and cash
equivalents 191,6 45,7 256,0
Analysis of headline earnings
adjustments Reviewed Reviewed Audited
six months six months year
Rm 28 Feb 2005 29 Feb 2004 31 Aug 2004
Attributable (losses)/profits (0,7) 200,8 217,0
Headline earnings adjustments - (231,1) (122,1)
Goodwill amortisation - 2,2 3,7
Profit on sale of businesses - (183,3) (105,1)
Profits on sale of associates - (50,0) (50,0)
Impairment of investments and
business - - 29,3
Headline (loss)/profit (0,7) (30,3) 94,9
Headline (loss)/profit per share
(cents) (0,2) (9,0) 27,2
Commentary
The implementation of Corpcapital`s strategy to realise assets and return
capital to shareholders is continuing. Accordingly the company`s financial
statements are not prepared on the going concern basis. The accounting
policies adopted are consistent with previous periods and comply with South
African Statements of Generally Accepted Accounting Practice.
The majority of the group`s investments have been disposed of. The remaining
investments are in the course of realisation. Advances and investment products
of the former Corpcapital Bank Limited and Corpcapital Life Insurance Limited
remain under management.
Due to the group`s reduced circumstances the board now consists of one
executive director and three non-executive directors. The directorships of
Messrs Ellerine, Trengove, Grolman and Sacks ceased with effect from 31
January 2005. The group has four remaining employees.
Earnings for the period arise mainly from net interest. Profits and losses
from the realisation of investments have for the most part been recognized in
prior periods. The remaining investments are reflected at fair value.
During January 2005 a further R190m (50 cents per ordinary share) was paid to
shareholders in cash in contemplation of liquidation. The company`s advisors
are engaged in preparing a circular convening a meeting of shareholders for
the purpose of delisting and voluntarily winding up the company by no later
than 9 July 2005. Further relevant information will be announced shortly.
Shareholders should therefore exercise caution in dealing in the company`s
shares.
On the basis that the company is wound up as proposed the board`s estimate
that over time a further approximately 29 cents per share will be distributed
to shareholders, remains unchanged.
Arising from its historic activities the group is subject to various claims
which are disputed. These include the claims made by Clear Channel Independent
referred to in the interim results and the continuing litigation between the
company and Mr Frangos. Although the board, acting on professional advice
received, believes that the disputed claims against the company will be
defeated, the estimate of 29 cents per share referred to above is sensitive to
the outcome of these proceedings which are, by their nature, inherently
uncertain.
Tom Wixley Benji Liebmann
Chairman Director
10 May 2005
Audit report
These interim results have been reviewed by the auditors, PKF (Jhb) Inc, who
have performed the review in accordance with the statement of South African
Auditing Standards applicable to review engagements. The scope of the review
was to enable the auditors to report that nothing has come to their attention
that causes them to believe that the accompanying condensed consolidated
interim financial statements are not fairly presented, in all material
respects, in accordance with South African Statements of Generally Accepted
Accounting Practice and in the manner required by the Companies Act in South
Africa. The unmodified review report of PKF (JHB) Inc on the condensed
consolidated interim financial statement is available for inspection at the
registered office of the company.
CORPCAPITAL LIMITED (1983/011384/06)
1st floor, 3 Melrose Square, Melrose Arch,
Johannesburg 2196
PO BOX 471917 PARKLANDS 2121
SOUTH AFRICA
TELEPHONE +27 11 684 1057 TELEFAX +27 11 684 1058
DIRECTORS: T A Wixley** (Non-executive CHAIRMAN)
D Brooking** N N LAZARUS* G B LIEBMANN
(*NON-EXECUTIVE) (**INDEPENDENT NON-EXECUTIVE)
Sponsor
Java Capital (Pty) Ltd
Date: 10/05/2005 02:30:18 PM
Produced by the JSE SENS Department
