| Wed 7 Sep 2005, 12:37 | | Sasfin - Audited Group Results For The Year Ended |
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Sasfin - Audited Group Results For The Year Ended 30 June 2005 And Cautionary
SASFIN HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(`Sasfin` or `the Group` or `the Company`)
(Ordinary share code: SFN & ISIN: ZAE000006565)
(Preference share code: SFNP & ISIN: ZAE000060273)
Audited group results for the year ended 30 June 2005
and cautionary announcement
* Ordinary dividends per share 130 cents up 38%
* Headline earnings per ordinary share 328 cents up 39%
* Return on total average assets 5,4% up 17%
* Return on ordinary shareholders` average equity 33,7% up 10%
* Total assets R1,8 billion up 28%
* Operating expenses to total income 61% down 11%
Consolidated balance sheet
30 June 30 June
2005 2004
% Audited Audited
change R`000 R`000
ASSETS
Short-term interbank funds 57 296 553 188 535
Short-term negotiable securities 19 377 14 320
Accounts receivable 65 262 703 159 507
Advances 14 1 089 708 958 453
Investments 53 157 19 497
Investments in associated and joint
venture companies 4 301 1 292
Deferred taxation 2 966 520
Property, plant and equipment 41 681 40 547
Total assets 28 1 770 446 1 382 671
LIABILITIES AND EQUITY
Liabilities
Interbank funding 35 801 36 014
Deposits 50 402 020 268 568
Accounts payable 213 015 135 806
Provisions 10 372 7 277
Notes 668 223 666 679
Deferred taxation 45 465 31 065
Total liabilities 1 374 896 1 145 409
Minority interest 16 639 12 378
Equity
Ordinary share capital and premium 19 814 16 976
Distributable reserves 255 051 206 908
Regulatory general credit-risk reserve 4 400 1 000
Ordinary shareholders` equity 24 279 265 224 884
Preference share capital and premium 99 646 -
Total equity 68 378 911 224 884
Total liabilities and equity 1 770 446 1 382 671
Commitments and contingencies 55 429 35 716
Number of ordinary shares in issue at
end of the year (`000) 26 035 25 759
Net asset value per ordinary share
(cents) 23 1 072,7 873,0
KEY RATIOS
Operating expenses to total income (%) (11) 61,0 68,2
Return on ordinary shareholders`
average equity (%) 10 33,7 30,6
Return on total average assets (%) 17 5,4 4,6
Consolidated income statement
30 June 30 June
2005 2004
% Audited Audited
change R`000 R`000
Interest income 196 115 192 103
Interest expense 84 960 96 318
Net interest income 16 111 155 95 785
Other income 21 211 602 174 708
Total income 322 757 270 493
Impairment of advances 7 154 760
Operating income 17 315 603 269 733
Operating expenses 7 196 875 184 383
Net income from operations 118 728 85 350
Share of associated and joint venture
companies` income 1 321 -
Net income before taxation 41 120 049 85 350
Taxation 28 665 23 261
Net income after taxation 91 384 62 089
Minority interest 4 874 1 852
Earnings attributable to ordinary
shareholders 44 86 510 60 237
Earnings attributable to ordinary
shareholders 86 510 60 237
Net profit on disposal of property,
plant and equipment (488) -
Preference share dividend (1 017) -
Headline earnings 41 85 005 60 237
Weighted average number of shares in
issue (`000) 25 923 25 472
Headline earnings per ordinary share
(cents) 39 327,9 236,5
Earnings per ordinary share (cents) 41 333,7 236,5
Diluted headline earnings per ordinary
share (cents) 322,5 232,5
Diluted earnings per ordinary share
(cents) 328,2 232,5
Dividends per ordinary share relating
to income for the year (cents) 38 130,0 94,0
Of which interim 41,0 -
Of which final 89,0 94,0
Dividends per preference share
relating
to income for the year (cents) 503,23 -
Of which dividend number 1 101,72 -
Of which dividend number 2 401,51 -
Consolidated statement of changes in equity
30 June 30 June
2005 2004
Audited Audited
R`000 R`000
Ordinary share capital and premium 19 814 16 976
Opening balance 16 976 16 732
Issue of shares 2 838 1 926
Consolidation of the Sasfin Share Incentive Trust - (1 682)
Distributable reserves 255 051 206 908
Opening balance 206 908 148 862
Earnings attributable to ordinary shareholders 86 510 60 237
Preference share dividend (1 017) -
Available-for-sale portfolio fair value 1 121 (1 404)
adjustment
Consolidation of the Sasfin Share Incentive Trust - 696
Transfer (to)/from regulatory general credit-risk
reserve (3 400) 1 815
Ordinary share dividends (35 071) (3 298)
Regulatory general credit-risk reserve 4 400 1 000
Opening balance 1 000 2 815
Transfer from/(to) distributable reserves 3 400 (1 815)
Ordinary shareholders` equity 279 265 224 884
Preference share capital and premium 99 646 -
Opening balance - -
Issue of shares 100 000 -
Set off of costs relating to issue of shares (354) -
Total equity 378 911 224 884
Consolidated cash flow information
30 June 30 June
2005 2004
Audited Audited
R`000 R`000
Net cash (outflow)/inflow from:
Operating activities 53 271 (4 729)
Investing activities (43 398) (11 706)
Financing activities 103 415 60 998
Net increase in cash and cash equivalents 113 288 44 563
Cash and cash equivalents at beginning of the
year 166 841 122 278
Cash and cash equivalents at end of the year 280 129 166 841
Headline earnings segmental analysis
30 June 30 June
2005 2004
Audited Audited
R`000 R`000
Banking 61 665 52 270
Corporate finance and private equity (2 640) 3 438
Investment and asset management 20 261 2 831
Freight 5 719 2 778
Other - (1 080)
Total 85 005 60 237
COMMENTARY
NATURE OF BUSINESS
Sasfin is a bank-controlling company listed under the `Financials: Speciality
and other Finance` sector of the JSE Limited, whose subsidiaries provide a wide
range of complementary banking, financial and related services to its target
market of entrepreneurial corporate, commercial and private clients.
BUSINESS REVIEW
With interest rates having stabilised in line with inflation and the relatively
strong Rand, a buoyant stock market, consumer led growth and increases in
foreign direct investment and foreign trade, the South African macro economic
climate has been favourable for the Group. It is pleasing to report that
headline earnings for the year under review have increased by 41,1% to R85,0
million, representing returns on ordinary shareholders` average equity of 33,7%
(2004: 30,6%) and on total average assets of 5,4% (2004: 4,6%) respectively.
In November 2004, Sasfin issued R100 million of non-redeemable, non-cumulative,
non-participating, variable rate preference share capital, at 75% of the
prevailing prime overdraft rate.
It is intended to use the proceeds of this issue to fund black economic
empowerment investments in the Bank, as well as to fund the Group`s growing
investment in private equity.
The statutory risk-weighted capital adequacy of Sasfin Bank Limited (`the Bank`)
is 25,7% (2004: 25,8%).
POST BALANCE SHEET EVENTS
In July 2005, Sasfin increased its investor participation in NIB-MDM Private
Equity Fund 1 from 13,6% to 49,1%, and its shareholding in NIB-MDM Private
Equity Fund Managers (Pty) Limited from 9,9% to 54,5%, for an incremental
investment consideration of R34,8 million. This investment forms the foundation
on which the new private equity division will be established, subject to South
African Reserve Bank approval. The Group plans to launch Sasfin Private Equity
Fund 2 in the near future, in which Sasfin will co-invest with its clients and
other investors.
The international trade finance activity of SasCred Financial Services Limited
(`SasCred`) was launched on 1 July 2005. SasCred, incorporated in Jersey and
administered in Switzerland, is a 50% joint venture with Credo Group, an
international financial services group. SasCred provides international trade
finance and wealth management services and is actively investigating foreign
markets.
Faranani Asset Managers (Pty) Limited, a black-empowered asset management
company, was established jointly during the year with Worldwide Capital Limited.
It will commence operations as soon as the requisite approval of the Financial
Services Board is obtained, which is anticipated within the first half of the
2006 financial year.
THE FINANCIAL SECTOR CHARTER AND CAUTIONARY ANNOUNCEMENT
The Group subscribes to the Charter and has made good progress towards meeting
Charter targets. In addition, the Group has now signed Letters of Intent
regarding a BEE transaction with two BEE groups in respect of a 10% interest in
the capital of the Bank. As such, shareholders are advised to exercise caution
when dealing in the Company`s securities until a further announcement is made in
this regard.
PROSPECTS
The buoyant economy, Sasfin`s competitive position in the banking industry, its
infrastructure in terms of human resources, systems, products and client base,
and its strong capital adequacy are the ingredients for continued growth in
assets and profits. Sasfin would not, however, escape the effects of a downturn
in the economic cycle, which is a possibility in the next year or two.
BASIS OF PREPARATION OF ANNUAL FINANCIAL STATEMENTS
The Group`s annual financial statements are prepared in accordance with South
African Statements of Generally Accepted Accounting Practice and accounting
policies, which are consistent with those applied in the previous year.
AUDIT OPINION
The Group`s annual financial statements have been audited by PKF (Jhb) Inc and
KPMG Inc.
Their unqualified audit report is available for inspection at the Company`s
registered office.
PREFERENCE SHARE DIVIDEND
Notice is hereby given that preference share dividend number 2, for the period 1
January 2005 to 30 June 2005, amounting to 401,51 cents per preference share
(`preference dividend`), has been declared on one million preference shares
(`preference shares`) issued at R100 each.
The preference dividend is payable to preference shareholders recorded in the
register of the Company at the close of business on Friday, 30 September 2005.
The salient dates relating to the preference dividend are as follows:
Last day to trade cum the preference dividend Friday, 23 September 2005
Preference shares commence trading ex
the preference dividend Monday, 26 September 2005
Preference dividend record date Friday, 30 September 2005
Payment of preference dividend Monday, 3 October 2005
Preference shares may not be dematerialised or rematerialised between Monday, 26
September 2005 and Friday, 30 September 2005, both days inclusive.
FINAL ORDINARY SHARE DIVIDEND
Notice is hereby given that a final ordinary share dividend for the financial
year ended 30 June 2005, amounting to 89 cents per share (`ordinary dividend`),
has been declared. The ordinary dividend is payable to shareholders recorded in
the register of the Company at the close of business on Friday, 7 October 2005.
Together with the interim ordinary dividend of 41 cents declared on 2 March
2005, the total ordinary dividends for the financial year amount to 130 cents
per share (2004: 94 cents per share).
The salient dates relating to the ordinary dividend are as follows:
Last day to trade cum the ordinary dividend Friday, 30 September 2005
Ordinary shares commence trading ex the
ordinary dividend Monday, 3 October 2005
Ordinary dividend record date Friday, 7 October 2005
Payment of ordinary dividend Monday, 10 October 2005
Ordinary shares may not be dematerialised or rematerialised between Monday, 3
October 2005 and Friday, 7 October 2005, both days inclusive.
BOARD CHANGES
Malcolm Segal has been appointed as an executive director of the Company and of
Sasfin Bank Limited with effect from 6 September 2005.
For and on behalf of the Board
MB GLATT RDEB SASSOON
Chairman Chief Executive Officer
7 September 2005
This and additional information is available on our website: www.sasfin.com
Chairman: MB Glatt (Non-executive)
Executive directors: RDEB Sassoon* (Chief Executive Officer) *British
AW Greenstein (Managing Director)
M Segal
Non-executive directors: CN Axten, ETB Blight, D Paizes, ML Smith
Company secretary: SK Erasmus
Registered office:
Sasfin Place, 13-15 Scott Street, Waverley, 2090, Johannesburg
Tel: +27 11 809-7500 Fax: +27 11 887-6167/2489
Websites: www.sasfin.com www.sfpsecurities.com
Transfer secretaries:
Computershare Investor Services 2004 (Pty) Limited
70 Marshall Street, Johannesburg, 2001
(PO Box 61051, Marshalltown, 2107)
Company registration number: 1987/002097/06
Lead sponsor: KPMG Services (Pty) Limited
Joint Sponsor: Sasfin Corporate Finance, a division of Sasfin Bank Limited
