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Nictus - Audited Financial Results And Notice Of Annual General Meeting
Nictus Limited
(Incorporated in the Republic of South Africa)
(Registration number 1981/001858/06)
JSE Share code: NCS
NSX Share code: NCT
ISIN Code NA0009123481
(`Nictus` or `the company`)
ABRIDGED REPORT RELATING TO THE AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31
MARCH 2005 AND DETAILS OF THE NOTICE OF ANNUAL GENERAL MEETING
ABRIDGED GROUP INCOME STATEMENTS FOR THE YEAR ENDED 31 MARCH 2005
Audited Audited
2005 2004
R`000 R`000
Revenue 209 798 207 830
Cost of sales (116 412) (106 528)
Change in gross provision for unearned
premiums (29 901) (38 561)
Claims incurred (20 527) (26 733)
Gross profit 42 958 36 008
Investment income 6 696 4 674
Net selling and administration expenses (43 582) (33 292)
Profit from operations (before interest) 6 072 7 390
Interest paid (3 829) (5 535)
Preference dividend paid (726) -
Profit before taxation 1 517 1 855
Taxation (515) (151)
Net profit after taxation 1 002 1 704
Minority shareholder`s interest 74 (86)
Profit for the year 1 076 1 618
Earnings per share (cents) 2,01 3,03
Headline earnings per share (cents) 1,60 1,09
Reconciliation between earnings and headline
earnings:
Profit for the year 1 076 1 618
Negative goodwill recognized - (757)
Impairment of goodwill 367 -
Profit on disposal of property, plant and
equipment (269) (23)
Profit on disposal of shares (44) (71)
Fair value adjustment on shares (276) (187)
Headline earnings 854 580
ABRIDGED GROUP BALANCE SHEETS AS AT 31 MARCH 2005
Audited Audited
2005 2004
R`000 R`000
Assets
Non-current assets
Property, plant and equipment 35 050 29 392
Goodwill 3 116 1 647
Investments 17 035 17 224
Deferred taxation 7 727 5 172
Current assets
Inventories 26 696 23 466
Trade and other receivables 59 747 33 761
Cash resources 42 066 35 022
Advances 78 404 93 496
Receiver of Revenue 443 283
Total assets 270 284 239 463
Equity and liabilities
Capital and reserves
Issued capital 26 722 26 722
Non-distributable reserve 6 987 6 987
Contingency reserve 5 400 -
Retained income 2 487 7 613
Non-current liabilities
Interest bearing borrowings 17 247 16 373
Deferred taxation 4 841 3 471
Minority shareholder`s interest 207 1 897
Insurance technical provisions 151 360 122 393
Current liabilities
Bank overdraft 15 405 9 555
Short-term loans 15 739 8 469
Trade and other payables 23 863 35 964
Receiver of Revenue 26 19
Total equity and liabilities 270 284 239 463
ABRIDGED CASH FLOW STATEMENTS FOR THE YEAR ENDED 31 MARCH 2005
Audited Audited
2005 2004
R`000 R`000
CASH FLOWS FROM OPERATING ACTIVITIES
Operating profit 6 072 7 390
Adjustment for:
Investment income (6 696) (4 674)
Depreciation 2 216 1 915
Profit on disposal of property, plant and
equipment (269) (23)
Profit on disposal of shares (44) (71)
Fair value adjustment on shares (276) (187)
Negative goodwill recognized - (757)
Impairment of goodwill 367 -
Operating income before working capital
changes 1 370 3 593
Working capital changes
Decrease/(increase) in inventories (3 230) 1 952
Increase in trade and other receivables (25 986) (9 242)
Increase in trade and other payables (12 101) 10 988
Increase in insurance technical provisions 28 967 37 857
Increase in advances 15 092 (38 041)
Working capital acquired (5 035) 3 155
Cash (utilised)/generated by operations (923) 10 262
Investment income 6 696 4 674
Interest paid (3 829) (5 535)
Taxation paid (172) (705)
Preference dividend paid (726) -
Ordinary dividends paid (802) (3 207)
Net cash inflow from operating activities 244 5 489
CASH FLOWS FROM INVESTING ACTIVITIES
Replacement of property, plant and equipment (8 728) (12 788)
Proceeds from disposal of property, plant
and equipment 2 861 2 727
Proceeds from disposal of investments 192 254
Movements in investments 317 (3 134)
Expended to acquire shares in subsidiary (1 836) (5 106)
Net cash outflow from investing activities (7 194) (18 047)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in long-terms loans 874 4 960
Increase/(decrease) in short-term loans 7 270 (3 518)
Net cash flow from financing activities 8 144 1 442
Net movement in cash and cash equivalents 1 194 (11 116)
Cash and cash equivalents at beginning of
year 25 467 36 583
Cash and cash equivalents at end of year 26 661 25 467
ABRIDGED STATEMENTS OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2005
Audited
Issued Non- Con- Retained Total
Capital Distrib- tingency Income
utable reserve
Reserves
R`000 R`000 R`000 R`000 R`000
Balance at 31 March 26 722 5 080 - 9 202 41 004
2003
Surplus on - 1 907 - - 1 907
revaluation of land
and buildings
Net profit for the - - - 1 618 1 618
year
Dividend paid - - - (3 207) (3 207)
Balance at 31 March 26 722 6 987 - 7 613 41 322
2004
Net profit for the - - - 1 076 1 076
year
Transfer to 5 400 (5 400) -
contingency reserve
Dividend paid - - - (802) (802)
Balance at 31 March 26 722 6 987 5 400 2 487 41 596
2005
ABRIDGED SEGMENTAL ANALYSIS FOR THE YEAR ENDED 31 MARCH 2005
2005 2004
R`000 R`000
Motor retail 1 549 2 514
Furniture & carpet retail 1 039 1 270
Wholesale (317) (754)
Insurance & Finance 4 691 4 436
Head Office (890) (77)
Total operating profit 6 072 7 390
RESPONSIBILITY FOR ANNUAL FINANCIAL STATEMENTS
The annual financial statements have been prepared in accordance with South
African Statements of Generally Accepted Accounting Practice.
Appropriate accounting policies supported by reasonable and prudent judgements
have been applied consistently with those of the prior year. These financial
statements have been audited by KPMG Inc. and their unqualified audit opinion is
available for inspection at the registered office of the company.
CHAIRMAN`S REPORT
The results for the year ended 31 March 2005, can be summarized as follows:
* The previous trend of declining Group turnover was reversed, albeit by only
1%.
* The Group asset base grew by 13% to R270m.
* Capital & reserves increased from R41.3m to R41.6m.
* We created a contingency reserve of R5.4m in our Insurance Company to further
secure the policyholders` interests.
The Past Year
The Chairman reports that, despite the current economic environment, the Group
performed satisfactorily. In 2004/2005 the South African and Namibian economies
were characterized by low inflation, low interest rates and a strong
Rand/Namibian Dollar. These economic conditions impacted differently on our
businesses in South Africa compared to the Namibian operations. The Namibian
economy is more import/export driven as opposed to the more industrialised South
African economy. Currently more than 80% of group turnover is derived from
Namibian sources.
Premium income received in the insurance and finance segment decreased by 21%.
This was due to a more focussed approach to client selection and management.
The furniture retail business increased turnover by 20%, whereas there was no
growth generated by the carpet retail line.
Turnover in the motor retail segment increased by 14% if compared to the prior
year. This was supported in the latter half of the financial year by the new
product line-up of GM and the completion of our new facilities.
The wholesale segment experienced a 20% decrease in turnover as a result of the
group applying stricter financial discipline to its customer base and aggressive
competitive marketing activities of alternative flooring options.
The Future
The approved South African insurance licence offers good opportunities for our
niche product. The Board has however decided on a disciplined growth policy for
our insurance segment in South Africa. We plan the growth to be within our
abilities and capacity of our management team.
We expect the Namibian economy to experience moderate growth in the year ahead
and we further anticipate that the newly elected President of the Republic of
Namibia will implement changes which will assist the business environment
positively. We however don`t expect the Namibian economy to match the growth
expected in the South African economy.
The Board is of the opinion that most of the future growth will come from the
South African market, given the limited size of the Namibian economy. The group
should show a positive performance in the coming year.
Dividend
The Board decided not to pay a dividend in this period in order to strengthen
the business base for future growth.
Strategic Focus
Our vision to be an independent group that creates above average value for our
shareholders and other stakeholders through continuous profitable growth remains
firm.
Corporate Governance
The Board is fully committed to the principles of good corporate governance
through transparency, integrity and accountability, and accepts that the
responsibility for this rests with the Board and its Chairman.
Appreciation
I wish to thank my fellow Board members, Executive committee and all staff
members for their efforts and dedication. We also appreciate the continuous
support of our customers and other stakeholders. We trust that we shall
experience the same support for the coming year. What we have achieved and what
we plan is eventually dependent on the Grace of God Almighty.
J L Olivier
Chairman: Nictus Group
ANNUAL REPORT AND NOTICE OF ANNUAL GENERAL MEETING
As the annual report for the year ended 31 March 2005 (`the annual report`) will
be posted to shareholders today, within 3 months of Nictus`s year end, this
announcement is not required to appear in the press and will not be sent to
shareholders.
The annual report contains a notice convening the annual general meeting of
Nictus shareholders for the year ended 31 March 2005(`the AGM`). The AGM will be
held in the boardroom at the Nictus Building, corner of Pretoria and Dover
Street, Randburg, Gauteng on Monday 22nd of August 2005 at 09h00.
J L Olivier
Chairman
24 June 2005
Sponsor on JSE: KPMG
Sponsor on the NSX: Namibia Equity Brokers
Date: 24/06/2005 02:30:10 PM
Produced by the JSE SENS Department
