| Wed 21 Sep 2005, 15:31 | | African Dawn - Interim Results for the period ende |
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African Dawn - Interim Results for the period ended 31 August 2005
AFRICAN DAWN CAPITAL LIMITED
(Formerly ABC Cash Plus Limited)
(Incorporated in the Republic of South Africa)
(Registration Number: 1998/020520/06)
Share Code: ADW
ISIN Code: ZAE000060703
Interim Results for the period ended 31 August 2005
Reviewed Reviewed Audited
BALANCE SHEETS 31 Aug 31 Aug 29 Feb
2005 2004 2005
R`000 R`000 R`000
ASSETS
Non current assets 18,980 12,912 18,244
Property, plant and equipment 161 171 162
Financial receivables 16,950 11,186 15,555
Available-for-sale investments 554 22 554
Share incentive schemes - 50 -
Deferred income tax assets 1,315 1,483 1,973
Current assets 12,970 8,259 10,516
Financial receivables 8,445 5,585 7,626
Trade and other receivables 3,125 511 1,046
Cash and cash equivalents 1,400 2,163 1,844
Total assets 31,950 21,171 28,760
EQUITY AND LIABILITIES
Shareholders Funds 10,293 6,502 8,223
Share capital and premium 13,385 12,775 13,385
Accumulated loss (3,092) (6,273) (5,162)
Non current liabilities 17,333 12,109 16,735
Borrowings 17,333 12,109 16,735
Current liabilities 4,324 2,560 3,802
Borrowings 4,299 2,534 3,725
Trade and other payables 25 26 77
Total equity and liabilities 31,950 21,171 28,760
Shares in issue at period end 56,267 50,450 56,267
(`000)
Net asset value per share (cents) 18,29 12,89 14,61
Reviewed Reviewed Audited
INCOME STATEMENTS 31 Aug 31 Aug 28 Feb
2005 2004 2005
R`000 R`000 R`000
Revenue 5,154 2,828 6,633
Operating expenses (1,250) (1,602) (4,923)
Profit before finance costs and 3,904 1,226 1,710
depreciation
Finance costs (1,155) (665) (488)
Depreciation and amortisation (21) (21) (42)
Profit before taxation 2,728 540 1,180
Taxation (658) 491 963
Net profit for the period 2,070 1,031 2,143
Headline earnings 2,070 1,031 2,143
Basic and diluted earnings per 3.67 2.04 4.16
share (cents)
Weighted average number of shares 56,267 50,450 51,516
(`000)
Headline earnings per share 3.67 2.04 4.16
(cents)
Reviewed Audited Reviewed
CASH FLOW STATEMENTS 31 Aug 28 Feb 31 Aug
2005 2005 2004
R`000 R`000 R`000
Cash flows from operating (1,595) 260 (3,265)
activities
Cash flows from investing (20) (10,776) (23)
activities
Cash flows from financing 1,171 10,925 4,016
activities
Net movement in cash and cash (444) 409 728
equivalents
Cash and cash equivalents at 1,844 1,435 1,435
beginning of year
Cash and cash equivalents at end of 1,400 1,844 2,163
year
STATEMENT OF CHANGES IN Share Share Outside Acc Total
EQUITY Capital Premium Share- Loss
holders
Interest
R`000 R`000 R`000 R`000 R`000
Balance as at 1 March 2004 505 12,270 - (7,305) 5,470
Net profit relating to - - - - -
subsidiaries sold
Net operating profit for - - - 1,031 1,031
the period
Sale of subsidiaries - - - - -
Balance as at 31 August 505 12,270 - (6,274) 6,501
2004
Net operating profit for - - - 1,112 1,112
the period
Issue of share capital 58 552 - - 611
Balance as at 28 February 563 12,822 - (5,162) 8,223
2005
Net operating profit for - - - 2,070 2,070
the period
Balance as at 31 August 563 12,822 - (3,092) 10,293
2005
COMMENTS
The Board of Directors are pleased to present the reviewed interim financial
results of the Group for the six months ended 31 August 2005
NATURE OF THE BUSINESS
The primary business of the company is the granting of short and medium term
home-improvement loans.
HIGHLIGHTS
The group generated R2.1 million (2004: R1,3m) after tax profits for the six
months under review.
Net asset value per share increased from 12,89 cents per share at 31 August 2004
to 18.29 cents per share at 31 August 2005. This represents an 42% increase from
31 August 2004 to 31 August 2005.
Headline earnings and earnings per share increased from 2.04 cents per share at
31 August 2004 to 3.67 cents per share at 31 August 2005. This represents an 80%
increase from 31 August 2004 to 31 August 2005.
Operating expenses as a percentage of turnover has decreased from 57% at 31
August 2004 to 24% at 31 August 2005.
BUSINESS REVIEW AND PROSPECTS
African Dawn has continued to generate exponential growth in earnings for the 6
months under review. As previously announced, the range of products (still
focused on housing solutions to LSM 1-5 income groups) has been expanded to
include estate agency services, bond origination, pension backed lending,
education and training, the benefits of which should have a positive impact on
future earnings.
FINANCIAL REVIEW
The African Dawn Group has realised a profit of R2.1 million for the six months
under review, which is an increase of 101% over the comparable period in the
prior year.
Revenue and finance costs increased exponentially due to the fact that the
advances book has remained at its peak for the past 6 months. Management have
continued to contain operating expenses.
Trade and other receivables have increased due to more medium term loans being
extended within the group.
TRANSITIONAL ADJUSTMENTS IN TERMS OF IFRS
Comparative figures have been restated to reflect the transition from South
African Statements of Generally Accepted Accounting Practice to International
Financial Reporting Standards. The adjustments represents:
- The reclassification of financial instruments in accordance with IAS 32:
Financial instruments: Disclosure and Presentation and IAS39: Financial
instruments: Recognition and Measurement. These adjustments had no effect
on the income statement and the effect on the balance sheet has been
disclosed in the transitional reconciliations presented below.
- The adoption of the new interpretation of IAS17 (AC 105) - Operating
leases, which include fixed rental increases. The effect of the new
interpretation of operating leases was found to be immaterial.
INTERNATIONAL FINANCIAL REPORTING STANDARDS AND COMPANIES ACT REQUIREMENTS
The reviewed interim financial statements were prepared in compliance with
International Financial Reporting Standards (IFRS) for the first time, as well
as the Companies Act. The disclosures required by IFRS1 concerning the
transition from South African Statements of Generally Accepted Accounting
Practice to IFRS are as follows:
RECONCILIATION OF EQUITY AT 1 MARCH 2004 (DATE OF TRANSITION TO IFRS)
No adjustment was required at 1 March 2004.
RECONCILIATION OF EQUITY AT 28 FEBRUARY 2005
BALANCE SHEETS SA GAAP Effect of IFRS
R`000 transition R`000
R`000
ASSETS
Non current assets 18,244 - 18,244
Property, plant and equipment 162 - 162
Financial receivables 15,555 - 15,555
Unlisted investments 554 (554) -
Available-for-sale investments - 554 554
Deferred income tax assets 1,973 - 1,973
Current assets 10,516 - 10,516
Financial receivables 7,626 - 7,626
Trade and other receivables 1,046 - 1,046
Cash and cash equivalents 1,844 - 1,844
Total assets 28,760 - 28,760
EQUITY AND LIABILITIES
Shareholders Funds 8,223 - 8,223
Share capital and premium 13,385 - 13,385
Accumulated loss (5,162) - (5,162)
Non current liabilities 16,735 - 16,735
Borrowings 16,735 - 16,735
Current liabilities 3,802 - 3,802
Borrowings 3,725 - 3,725
Trade and other payables 77 - 77
Total equity and liabilities 28,760 - 28,760
CORPORATE GOVERNANCE
The group fully subscribes to the principles of, and implements where possible,
the recommendations of the King II Code on Corporate Governance.
DIVIDENDS
Dividends will not be paid in respect of the current financial year. Cash
generated will be retained and utilised to grow and expand the business of the
group.
REVIEWED RESULTS
The interim results for the six months ended 31 August 2005 have been reviewed
by Van Dyk Rossouw Inc. The auditors unqualified review opninion is available
for inspection at the company`s offices.
For and on behalf of the Board
I Mophatlane
Chairman
21 September 2005
Registered office:
12th Floor, Hillview Centre, Oak Street, Randburg
Transfer secretaries:
Computershare Investor Services 2004 (Pty) Limited, Ground Floor, 70 Marshall
Street, Johannesburg
Directors:
I Mophatlane,* C de Wet Vivier*, Olivier B*, JM Van Tonder, MN Ramasehla, JI van
Niekerk*, CM van Nieuwkerk
*Non-executive
Date: 21/09/2005 03:06:18 PM
Produced by the JSE SENS Department
