| Fri 24 Jun 2005, 15:37 | | RAH - Results For The Year Ended 31 March 2005 |
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RAH - Announcement Of Reviewed Results For The Year Ended 31 March 2005
Real Africa Holdings Limited
(Registration number 1994/003919/06)Share code: RAH ISIN code: ZAE000008702
(`RAH` or `the company`)
ANNOUNCEMENT OF REVIEWED RESULTS FOR THE YEAR ENDED 31 MARCH 2005
Net asset value increased by 51% to 542 cents per shareSUMMARISED INCOME STATEMENT
2005 2005 2004
Reviewed Pro forma1 Audited
Note R`000 R`000 R`000Revenue 61 598 89 740 201 768
Investment gains/(losses) 2 274 024 561 861 257 970
Equity accounted earnings 2 56 896 39 952 55 118
- dividends received 57 301 29 159 35 899- share of retained 8 878 10 793 23 196
earnings
- intangible/goodwill (9 283) - (3 977)
amortisationInterest income 57 881 57 881 68 253
Adjustment 2 (47 776) - -
Operating income 402 623 749 434 583 109
Operating costs 23 021 22 787 26 827Interest and preference 31 365 31 365 15 621
dividends paid
Goodwill - - 10 500
amortisation/impairmentProfit before taxation 348 237 695 282 530 161
Taxation 4 830 7 509 42 031
Profit after taxation 343 407 687 773 488 130
Outside shareholders 53 319 100 013 195 564Attributable to ordinary 290 088 587 760 292 566
shareholders
Earnings per share 79,3 158,1 78,7
(cents)Headline earnings per 80,2 159,0 81,0
share (cents)
Number of ordinary shares 365,9 371,8 371,8
- weighted average(millions)
Headline earnings is
determined as follows:
Attributable to ordinary 290 088 587 760 292 566shareholders
Adjusted for (net of
outside shareholders):
Goodwill amortisation - - 8 599Realised investment 3 430 3 430 -
losses
Headline earnings 293 518 591 190 301 165
SUMMARISED CASH FLOW STATEMENT 2005 2004
Reviewed Audited
R`000 R`000
Cash flows from operating activities 120 750 223 052Cash flows from investing activities (63 805) (242 753)
Cash flows from financing activities (63 562) (226 886)
SUMMARISED BALANCE SHEET
2005 2004 Reviewed Audited
R`000 R`000
Ordinary shareholders` funds 1 354 286 1 099 166
Outside shareholders 484 462 460 175Redeemable preference shares 168 000 -
Deferred taxation 1 868 27 394
Short-term borrowings - 240 117
2 008 616 1 826 852Fixed assets 109 1 091
Investments and loans 1 266 959 1 028 245
Cash resources 797 350 803 967
Net current liabilities (55 802) (6 451) 2 008 616 1 826 852
SUMMARISED STATEMENT OF CHANGES IN EQUITY
Ordinary Non-
share distributab Distribu capital le table
and premium reserves reserves Total
Reviewed Reviewed Reviewed Reviewed
R`000 R`000 R`000 R`000Balance at 1 April 2004 858 167 2 998 238 001 1 099 166
Net profit for the year - - 290 088 290 088
Net movement in treasury shares (34 360) - - (34 360)
Attributable share of associate`s - (608) - (608)foreign currency translation
reserve
Balance at 31 March 2005 823 807 2 390 528 089 1 354 286
NET ASSET VALUE ATTRIBUTABLE TO RAH SHAREHOLDERS 22 June 2005 10 June 2004
Note R`000 R`000
Afrisun Leisure 7 1 000 323 403 440
Oceana Group 8 300 608 322 398Lifecare 9 228 360 131 590
Dimension Data 10 63 698 59 024
Other net assets 314 40 660
Cash 559 887 612 669Debt (168 000) (240 000)
6 1 985 190 1 329 781
Issued shares 366 384 916 371 757 625
Value per share (cents) 542 358NOTES ON THE BASIS OF PREPARATION
1. The pro forma financial information presented for 2005 reflects the current
year`s results on a basis consistent with that of the previous year, with all
casino interests being reflected at fair value and not consolidating the sharetrust.
2. The equity interests held by Afrisun Leisure Investments (Proprietary)
Limited (`Afrisun Leisure`) in Afrisun Gauteng (Proprietary) Limited (`Afrisun
Gauteng`), National Casino Manco (Proprietary) Limited (`National Manco`) andGauteng Casino Resort Manco (Proprietary) Limited (`Gauteng Manco`) have been
equity accounted in the current year. In prior years these casino interests were
accounted for as an investment measured at fair value. Afrisun Leisure holds
equity interests in excess of 20% in these companies. In terms of the listingsrequirements of the JSE Securities Exchange South Africa, the Real Africa Share
Trust has also been consolidated. The adjustment reflects the effect of applying
the company`s accounting policy to these investments and the share trust in
prior years, net of outside shareholders` interest and taxation.3. We refer to the group`s 2004 annual report. In preparing the financial
information for the year under review, those outside shareholders in Persetel Q
Data Africa Holdings Limited that retain their entitlement to Business Connexion
Group Limited (`BCX`) shares (original entitlement to Comparex Limited(`Comparex`) shares) have been allocated their full share of the dividends
received from Comparex of R29,5 million and the attributable decrease in fair
value of R7,6 million on their investment in BCX. Group investment
gains/(losses) include a downward fair value adjustment of R12,5 million inrespect of the group`s investment in Dimension Data plc of which R6,4 million is
attributable to RAH. (Refer to the Commentary for subsequent events).
4. The financial information has been prepared in conformity with South African
Statements of Generally Accepted Accounting Practice. The company adopted IFRS 3(AC 140) Business Combinations that became effective in the current year and in
line with this has not amortised any goodwill in the current year.
5. The auditors, PricewaterhouseCoopers Inc., have issued their review opinion
on the annual financial statements for the year ended 31 March 2005. A copy ofthe auditors` review report is available for inspection at the company`s
registered office. The auditors have not reviewed the pro forma financial
results and accordingly do not express an audit opinion on these.
NOTES ON THE NET ASSET VALUATION AS AT 22 JUNE 20056. The net asset value reflects RAH`s attributable portion of listed shares at
market value, and unlisted shares at directors` valuation on 22 June 2005.
7. The shares held by Afrisun Leisure in Afrisun Gauteng and SunWest
International (Proprietary) Limited have been valued by capitalising estimatedfree cash flows at a weighted average cost of capital of 10,9% and 10,3%
respectively. Afrisun Leisure`s investments in Emfuleni Resorts, National Manco
and Gauteng Manco have been valued by capitalising its annual dividend at a rate
of 4,4% and the investment in the new Sibaya casino in KZN has been valued atcost.
8. Based on the market price of Oceana of R13,52 per share.
9. Lifecare`s sustainable ordinary dividends were capitalised at a rate of 5,65%
to which surplus net cash was added.10. Based on the market price of Dimension Data plc of R3,95 per share.
COMMENTARY
Subsequent to the year-end, the dispute relating to PQAH has been resolved. In
terms of the settlement, this subsidiary is now wholly owned by RAH and allimpediments to the repayment of RAH`s loan to PQAH have been removed.
In transactions concluded during the year and subsequent to year- end, RAH
increased its shareholding in Afrisun Leisure and currently holds an
attributable effective interest of 21,0% in Afrisun Gauteng (2004: 20,7%), 14,2%in SunWest International (2004: 12,0%), 11,5% in Afrisun KZN (2004: 11,3%), 2,3%
in Emfuleni Resorts (2004: 2,0%), 21,8% in National Manco (2004: 19,8%) and
19,9% in Gauteng Manco (2004: 18,0%).
The performance in the current year and the net asset value of investmentshave been largely affected by the increase in the value of the group`s interests
in the gaming industry, which continued to perform well.
The interest in Real Africa Asset Management has been disposed of during this
year.By order of the board
DJJ Vlok (Director) AH Arnott (Director)
23 June 2005
PHYSICAL ADDRESSAberdeen House,
Peter Place Park,
54 Peter Place,
Bryanston, 2021Tel: 011 463 0010
SPONSOR
RAND MERCHANT BANK (A division of FirstRand Bank Limited)Date: 24/06/2005 03:24:38 PM Produced by the JSE SENS Department
