| Fri 1 Oct 2004, 8:37 | | Alpina Investments Limited - Audited Consolidated |
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Alpina Investments Limited - Audited Consolidated Results Of The Group For The
Year Ended 30 June 2004 And Further Cautionary Announcement
ALPINA INVESTMENTS LIMITED
(Registration number: 1997/021085/06)
Share Code: ALA ISIN: ZAE000048377
AUDITED CONSOLIDATED RESULTS OF THE GROUP FOR THE YEAR ENDED 30 JUNE 2004 AND
FURTHER CAUTIONARY ANNOUNCEMENT
CONSOLIDATED INCOME STATEMENT
Audited Audited Year
Year ended ended
30 Jun 2004 30 Jun 2003
Revenue 20,025,780 11,114,920
Operating costs (16 290 692) (6,714,473)
Operating profit 3 735 088 4,400,447
Investment Income 2,916,812 807,885
Impairments & Write-offs 1,048,774 (5,539,094)
Net capital loss on (18,625,367) 6,249,140
revaluation of properties
Profit on sale of 2 460 324 -
investment property
Finance charges (13,562,687) (10,059,191)
Loss before taxation (22 027 056) (4,140,813)
Loss for period (16 996 413) (4,121,569)
Loss per linked unit (147.69) (10.99)
(cents)
Headline earnings/(loss) 5.04 (18.14)
per linked unit (cents)
Weighted number of linked 11 507 890 37,518,216
units
Diluted number of linked 17 428 645 -
units
Reconciliation between net earnings and headline earnings
Net loss per Income (16 996 413) (4 121 569)
Statement
- Amortization of goodwill - 269,687
- Impairment of goodwill 1,411,550 3,293,616
- Profit on sale of (2,460,324) -
investment property
- Fair value adjustment to 18,625,367 (6,249,140)
investment property
Headline earnings/(loss) 580 179 (6 807 406)
CONSOLIDATED CASH FLOW STATEMENT
Audited Year ended Audited Year ended
30 Jun 2004 30 Jun 2003
Net cash flow from operating 1 543 277 5,177,421
activities
- Cash generated from 12 167 549 14,509,949
operations
- Interest received 2 916 812 807,885
- Interest paid (13 562 687) (10,059,191)
- Taxation paid 21 603 (81,222)
Net cash outflow from (81 091 783) (14,321,164)
investing activities
Net cash inflow from financing 79 280 733 10,516,444
activities
Cash and cash equivalents at (267 773) 1,372,701
the end of the year
CONSOLIDATED BALANCE SHEET
Audited Audited
Year Ended Year Ended
30 Jun 2004 30 Jun 2003
Investment properties 127,800,000 52,262,000
Tangible assets 313,544 9,315,132
Intangible assets - 16,624,546
Investments - -
Loans receivable 1 656 788 8,876,732
Current assets 3 901 678 17 835 995
Deferred tax 5 691 841 147 623
Total assets 139 363 851 105 062,028
Shareholders` equity 2 973 147 2,687,162
Outside shareholders` - -
interest
Long-term borrowings 126 756 982 74,201,724
Non-current liabilities - -
Current liabilities 9 633 722 28,173,142
Total equity and liabilities 139 363 851 105,062,028
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Debenture Shares to Distributabl Total
capital premium capital issue e
reserve /
(Accumulated
loss)
Balance at 1 3,752 - - 2,068,390 6,808,
July 2002 4,736,589
Outside (356,840)
shareholders`
interest
Attributable - - - - (1,208,006) (1,208
loss for 6
months
Balance at 31 3,752 4,736,589 - - 503,544 5,243,
December 2002
Attributable - - - - (2,556,723) (2,556
loss for 6
months
Balance at 30 3,752 4,736,589 - - (2,053,179) 2,687,
June 2003
Restructure 87,417 (178,587) 91,169 - - (1)
of share
capital as
per circular
dated
15 July 2003
Attributable - - - - (1,970,962) (1,970
loss for 6
months
Balance at 31 91,169 4,558,002 91,169 - (4,024,141) 716,19
December 2003
Issue of 70,617 13,982,203 70,617 - - 14,123
shares
Shares to - - - 3,158,964 3,158,
issue
Attributable - - - - (15 025 453) (15 02
profit for 6
months
Balance at 30 161,786 18,540,205 161,786 3,158,964 (19 049 594) 2 973
June 2004
Commentary on results for year ended 30 June 2004
Basis of Preparation
The consolidated financial statements are prepared in accordance with South
African Statements of Generally Accepted Accounting Practice (`GAAP`), the South
African Companies Act, as amended, and the disclosure requirements of the JSE
Securities Exchange South Africa.
The consolidated financial statements have been prepared on the fair value and
going concern basis. The principal accounting policies are consistent with those
applied in the annual financial statements for the year ended 30 June 2003.
IXIA Property Portfolio Acquisition
The Ixia property transfers were delayed as a result of the municipal
authorities being unable to timeously furnish the necessary clearance
certificates required to effect the Deeds office transfers. These transfers have
now been effected and Alpina has issued 8 311719 `b-class` linked units to the
vendor Bonatla, who will distribute these units to its linked unitholders in due
course. These are in addition to the 9 116 926 `a-class` linked units presently
in issue.
7 061 719 linked units were issued to Bonatla by 30 June 2004 and a further 1
250 000 by September 2004. Approximately 700 000 additional linked units are due
to be issued to Bonatla pending finalisation of the adjustment account.
Operating Performance
Alpina results reflect a loss for the period of R22 million. This was due to a
revaluation of the Alpina property portfolio required by GAAP, as well as a
further write down (impairment) resulting in a net capital loss amounting to
R18,6 million.
Headline earnings reflect a profit of R580 000, with HEPS of 5,04 cents per
linked unit.
Restructuring of Alpina Linked Units
The directors are contemplating a restructuring of the company`s `a-class` and
`b-class` linked units into a single linked unit. The rationale behind the
consolidation of the linked units is to present a simple, transparent business
structure for linked unitholders.
Progress Report on Acquisitions
On 7 July 2004 and 18 August 2004, it was announced that Alpina had signed a
heads of agreement to acquire properties to the value of approximately R200
million. The due diligence investigation and the valuation of properties have
reached an advanced stage, where after the terms of the transaction will be
negotiated.
At the appropriate time and on the conclusion of an agreement, a full
announcement will be made to linked unitholders. The implementation of the above
transaction may result in a change of control in Alpina and also have a material
effect on the price at which the company`s securities trade.
Company Objectives
The company`s short-term investment strategy is to create a property portfolio
of significant critical mass through the acquisition of quality, high-yielding
properties. Management is committed to further expansion of the property
portfolio and further growth in its assets can be anticipated in 2005.
Alpina intends to offer investors a highly tradable investment within a spread
of quality properties and related businesses. With an active management team, an
aggressive strategy will be applied to the administration, refurbishment and
letting of the existing property portfolio.
Audit Opinion
Alpina`s auditors, Horwath Leveton Boner have audited the financial information
for the year ended 30 June 2004. Their report is available for inspection at the
registered office of the company.
Dividends
No dividends have been declared for the six months under review.
Further Cautionary Announcement
Linked unitholders are referred to the progress report on the proposed
transaction set out herein and are accordingly advised to exercise caution when
dealing in the company`s securities until a further announcement is made.
For and on behalf of the board:
30 September 2004
Directors: PD Alexander*; MH Brodie*, DA Johnston*, MJ Lamolo*, M Makhubalo*; BA
Smith (Chief Executive), RS Wilkinson* (Chairman)
*Non-executive
Company Secretary: Corporate Governance Facilitators CC
Registered Office: 43 Wierda Road West, Wierda Valley, Sandton
Transfer Secretaries: Computershare Limited
Sponsor: Imara Corporate Finance South Africa (Pty) Ltd
Auditors: Horwath Leveton Boner
