| Fri 27 May 2005, 17:22 | | Audited results for the year |
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Barnard Jacobs Mellet Holdings Limited - Audited results for the year ended 31
March 2005
BARNARD JACOBS MELLET HOLDINGS LIMITED
Reg No: 1995/004798/06
Incorporated in the Republic of South Africa
ISIN: ZAE000014262
Share code: BJM
Audited results for the year ended 31 March 2005
- Earnings per share up 141%
- Headline earnings per share up 22%
- Assets under administration exceed R12bn
CONSOLIDATED INCOME STATEMENT
31 March 31 March
2005 2004 Change
R`000 R`000 %
Operating income 236 851 218 399 8,4
Interest income 26 477 34 017 (22,2)
Operating costs (225 943) (222 620) 1,5
OPERATING INCOME BEFORE FINANCE COSTS 37 385 29 796 25,5
Finance costs (15 611) (19 233) (18,8)
Preference dividends (5 584) (5 584)
OPERATING INCOME BEFORE INCOME
FROM INVESTMENTS 16 190 4 979
Investment income 4 661 1 983 135,0
Share of results of associate company - (1 035)
INCOME BEFORE TAXATION 20 851 5 927 251,8
Taxation (8 995) (992)
NET PROFIT ATTRIBUTABLE
TO SHAREHOLDERS 11 856 4 935 140,2
Weighted average number of shares
in issue (`000) 109 985 110 246
Headline earnings per share (cents) 6,08 5,00 21,6
Fully diluted headline earnings
per share (cents) 6,02 5,00 20,4
Basic earnings per share (cents) 10,78 4,48 140,6
Fully diluted earnings per
share (cents) 10,67 4,48 138,2
Net asset value per share (cents) 322 311 3,3
RECONCILIATION OF HEADLINE EARNINGS PER SHARE
31 March 31 March
2005 2004 Change
R`000 R`000 %
Headline earnings 6 682 5 512 21,8
Goodwill amortisation - (577)
Liquidation distribution received 1 369 -
Sale of fixed assets 32 -
Sale of private equity investment 3 773 -
Basic earnings 11 856 4 935 140,2
CONSOLIDATED BALANCE SHEET
31 March 31 March
2005 2004
R`000 R`000
ASSETS
NON-CURRENT ASSETS
Furniture and equipment 4 440 4 964
Investments 33 620 123 318
Goodwill 3 692 3 692
Deferred taxation 20 353 23 398
62 105 155 372
CURRENT ASSETS
Amounts receivable in respect of
stockbroking activities 2 109 356 2 134 394
Margin on derivative financial
instruments 14 352 3 887
Short-term investments 61 045 -
Sundry accounts receivable 14 901 67 188
Listed securities holdings 217 733 302 448
Cash and cash equivalents 552 317 345 926
2 969 704 2 853 843
3 031 809 3 009 215
EQUITY AND RESERVES
CAPITAL AND RESERVES
Share capital 1 105 1 102
Share premium 182 947 182 093
Non-distributable reserves 16 754 15 602
Retained income 154 532 144 330
355 338 343 127
NON-CURRENT LIABILITIES - 121 569
CURRENT LIABILITIES
Amounts payable in respect of
stockbroking activities 2 197 028 1 975 335
Listed securities sold short 282 101 241 769
Sundry accounts payable 54 205 59 454
Current portion of long-term
liabilities 121 159 104 919
Receiver of revenue 3 729 715
Shareholders for dividends 77 128
Bank overdraft 18 172 162 199
2 676 471 2 544 519
3 031 809 3 009 215
STATEMENT OF CHANGES IN EQUITY
Non-
distri-
Share Share butable Retained
capital premium reserves income Total
Balance at
1 April 2003 1 002 156 494 29 533 139 395 326 424
Foreign currency
translation reserve - - (13 931) - (13 931)
Net profit for
the year - - - 4 935 4 935
Treasury stock 100 25 599 - - 25 699
Balance at
1 April 2004 1 102 182 093 15 602 144 330 343 127
Foreign currency
translation reserve - - 1 152 - 1 152
Net profit for
the year - - - 11 856 11 856
Treasury stock 3 854 - - 857
Dividends paid - - - (1 654) (1 654)
Balance at
31 March 2005 1 105 182 947 16 754 154 532 355 338
CONSOLIDATED CASH FLOW STATEMENT
31 March 31 March
2005 2004
R`000 R`000
Cash generated from/(utilised in)
operations 421 980 (41 287)
Cash generated from/(utilised in)
investing activities 31 771 (52 727)
Cash flows from financing activities (104 472) 23 739
Net increase/(decrease) in cash and
cash equivalents 349 279 (70 275)
Cash and cash equivalents at the
beginning of the year 183 727 267 639
Foreign currency translation reserve 1 139 (13 637)
Cash and cash equivalents at the
end of the year 534 145 183 727
SEGMENTAL ANALYSIS
South Africa International Total
R`000 R`000 R`000
March 2005
Revenue 194 416 68 912 263 328
Assets 2 588 229 443 580 3 031 809
Liabilities 2 263 998 412 473 2 676 471
March 2004
Revenue 172 648 79 768 252 416
Assets 2 705 951 303 264 3 009 215
Liabilities 2 393 315 272 773 2 666 088
REVIEW OF RESULTS
The Group`s performance during the second half-year more than reversed the
disappointing losses of the first half-year, resulting in an after-tax profit of
R11,9 million, an increase of 140% on the attributable earnings of 2004. This
improved performance helped to increase the Group`s NAV to 322 cents per share
from 311 cents per share, despite a stronger Rand which negatively impacts the
value of international assets. Basic earnings per share rose by 141% to 10,78
cents per share while headline earnings amounted to 6,08 cents per share, an
increase of 22%.
This turnaround is attributable to a number of factors, some of which are listed
below:
- Improved market conditions, particularly in the latter half of the year.
- The successful restructuring of the UK operation.
- Increased contribution from BJMUSA, BJMPCS & Finsettle Services.
- The receipt of an interim distribution from the liquidators of ITI Holdings
Limited in a pre-tax amount of R2,6 million.
- The divestment from the final private equity investment yielding a pre-tax
profit of R5,4 million.
- The reversal of the AC133 impairment of the investment in preference shares
issued by the BEE consortium.
Operating revenue for the period rose by 8,4% to R236,8 million while operating
costs rose by a much lower 1,5% to R225,9 million. (Gross revenue, including
income from investments, was 5,3% higher at R268 million and total costs 0,1%
lower at R247,1 million.) Group equity brokerage increased by 18,8% to R171
million, with domestic brokerage increasing by 34%, on market growth of 28%, but
these increases were offset by declines in revenue from fixed income, arbitrage
and interest income.
Costs were kept in check by tight control in all areas of the business and,
regrettably, this included the retrenchment of a number of employees throughout
the Group, particularly in the UK.
Shareholders are advised that post our year-end the claim against the
liquidators of ITI Holdings Limited has been settled for an amount of
approximately R10 million. Receipt of this amount is expected in the near
future.
We are proud of and encouraged by the success achieved to date with our BEE
transaction but believe that we still have much more to do in our ongoing
efforts to play a constructive and meaningful role in the transformation of
South Africa. We deeply appreciate the efforts of all those who have contributed
to and recognised the sincere strides we have made in this regard and look
forward to their further support.
BJM is 20 years old this year and particularly proud of its heritage and having
maintained a track record of independence and profitability throughout the
entire period. It is a milestone that is attributable to many loyal and
dedicated employees who have aligned their own interests with those of the Group
and is also attributable to the continued and committed support of our client
base and shareholders. We look forward to celebrating many more birthdays in
such fine company.
Prospects
A considerable amount of management time and energy has been spent on
restructuring and tidying up the business during the course of the year. The
Group is now very well positioned to take advantage of favourable market
conditions with the second half of the last year being evident of the potential
in this regard. The Group`s business model is based upon being ranked
comfortably within the top five brokers by its client base and the prognosis for
this happening is looking increasingly likely. Management is confident that it
will improve on the performance of FY05 in the coming year and that it will
provide shareholders with an acceptable return on capital given a continuation
of the market conditions that prevailed in the last half of the financial year.
Dividend
Notice is hereby given that the Board has declared a final dividend of 9 cents
per share in respect of the year ended 31 March 2005. The dividend will be paid
on Monday, 27 June 2005.
The last day to trade in the shares for purposes of entitlement to the dividend
will be Friday, 17 June 2005. The shares will commence trading ex dividend on
Monday, 20 June 2005 and the record date will be Friday, 24 June 2005.
Share certificates may not be dematerialised or rematerialised between Monday,
20 June 2005 and Friday, 24 June 2005, both days inclusive.
Accounting policies
The financial statements and Group financial statements are prepared in
conformity with and comply with South African Statements of Generally Accepted
Accounting Practice and the Listings Requirements of the
JSE Securities Exchange South Africa (JSE) and Schedule 4 of the South African
Companies Act. The accounting policies and methods of computation used in the
preparation of the results are consistent in all material respects with those
adopted in the financial statements for the year ended 31 March 2004.
Auditors` report
The auditors, KPMG Inc., have issued their opinion on the Group financial
statements for the year ended 31 March 2005.
A copy of the auditors` unqualified report is available for inspection at the
company`s registered office.
Kevin Jacobs Andile Mazwai
(Co-Chief Executive Officer) Co-Chief Executive Officer)
Johannesburg
26 May 2005
Directors:
JA Bester (Chairman), HSC Bester, KG Jacobs* (Co-CEO), AM Mazwai* (Co-CEO), AR
Martin, SM Mellet, TS Seopa, L Wilson*
* Executive
Company Secretary:
A de Villiers
Registered Office:
Barnard Jacobs Mellet House
5 Sturdee Avenue
Rosebank, 2196
Transfer Secretaries:
Ultra Registrars (Pty) Ltd
11 Diagonal Street
Johannesburg, 2000
