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Alpina - Audited consolidated results of the group for the year ended 30 June
2005
Alpina Investments Limited
Incorporated in the Republic of South Africa)
(Registration number: 1997/021085/06)
Share Code: ALA & ISIN: ZAE000048377
("Alpina" or "the company")
AUDITED CONSOLIDATED RESULTS OF THE GROUP FOR THE YEAR ENDED 30 JUNE 2005
CONSOLIDATED INCOME STATEMENT
Year ended Year ended
30 Jun 2005 30 Jun 2004
Revenue 22 401 404 17 619 813
Recoveries 5 819 179 2 405 967
Operating costs (14 368 906) (13 318 160)
Operating profit 13 851 677 6 707 620
Investment Income 115 476 2 916 812
Other income - 12 079
Impairments & Write-offs (1 411 550)
Profit on disposal of subsidiary 2 926 662 -
Reversal of unsubstantiated liability entry 4 379 807 -
that has prescribed
Loans receivable written off (2 361 996) -
Revaluation /(devaluation) of properties 9 071 822 (18 625 367)
Profit on sale of investment property 1 873 210 2 460 324
Finance charges (15 752 313) (13 562 687)
Profit/ (loss) 14 104 345 (21 502 769)
Straight line operating lease adjustment 733 060 814 849
Profit/ (loss) before taxation 14 837 405 (20 687 920)
Taxation (6 917 910) 5 399 854
Profit/(loss) for year 7 919 495 (15 288 066)
Earnings/(loss) per linked unit (cents) 43.66 (132.85)
Headline earnings/(loss) per linked unit (9.84) (30.42)
(cents)
Weighted number of linked units 18 139 125 11 507 890
Diluted number of linked units 17,758,125 17,428,645
Reconciliation between net earnings and headline earnings
Net profit/(loss) per Income Statement 7 919 495 (15 288 066)
- Profit on disposal of subsidiary (2 926 662)
- Loans written off 2 361 996
- Reversal of unsubstantiated liability (4 379 807)
entry that has prescribed
- Straight line operating lease adjustment (733 060) (814 849)
- Impairment of goodwill - 1 411 550
- Profit on sale of investment property (1 873 210) (2 460 324)
- Fair value adjustment to investment (9 071 822) 18 625 367
property
- Tax effect as a result of the above 6 917 910 (4 974 107)
Headline earnings/(loss) (1 785 160) (3 500 429)
Note: Headline earnings for the year ended 30 June 2004 has been adjusted to
exclude the tax effect of the reconciling items.
CONSOLIDATED CASH FLOW STATEMENT
Year ended
30 Jun 2005 Year ended
30 Jun 2004
Net cash flow from operating activities (8 654 407) 1 543 277
- Cash generated from operations 6 942 521 12 167 549
- Interest received 115 476 2 916 812
- Interest paid (15 752 313) (13 562 687)
- Taxation paid 39 909 21 603
Net cash outflow from investing activities 12 768 040 (81 091 783)
Net cash inflow from financing activities (3 349 532) 79 280 733
Net increase/ (decrease) in cash and cash 764 101 (267 773)
equivalents
Cash and cash equivalents at the begin of 12 109 279 882
the year
Cash and cash equivalents at the end of the 776 210 12 109
year
CONSOLIDATED BALANCE SHEET
Year Ended Year
30 Jun 2005 Ended
30 Jun 2004
Investment properties 90 700 001 127 800 000
Tangible assets 136 317 313 544
Loans receivable 5 404 500 1 656 788
Non Current Assets - 5 691 841
Current assets 4 829 115 7 789 619
Total assets 101 069 933 143 251 792
Shareholders" equity (2 112 891) (6 893 028)
Subordinated debentures 17 283 349 14 143 990
Long-term borrowings 77 286 960 126 735 919
Current liabilities 8 612 515 9 264 912
Total equity and liabilities 101 069 933 143 251 792
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Shares Distribu-
table
capital premium to issue reserve / Total
(Accumu-
lated
loss)
Balance at 1 July 3,752 4,736,589 - 2,068,390 6,808,731
2002
Outside (356,840) (356,840)
shareholders"
interest
Attributable loss - - - -1,208,006 (1,208,006)
for 6 months
Balance at 31 3,752 4,736,589 - 503,544 5,243,885
December 2002
Restructering cost (516,680) (516,680)
Attributable loss - - - (2,165,968) (2,165,968)
for 6 months
Balance at 30 June 3 752 4 219 909 - (1 536 503) 2 687 158
2003
Restructure of 87 417 (178 587) - - (91 170)
share capital as
per circular dated
15 July 2003
Attributable loss - - - (1 970 962) (1 970 962)
for 6 months
Balance at 31 91 169 4 041 322 - (3 507 465) 625 026
December 2003
Issue of linked 70 617 - - - 70 617
units
Shares to be - - 3 158 964 - 3 158 964
issued
Restructuring - (524 687) - - (524 687)
costs
Attributable loss - - - (14 131 953) (14 131 953)
for 6 months
Balance at 30 June 161 786 3 516 635 3 158 964 (17 639 418) (10 802 033)
2004
Rental smoothing - - - 814 849 814 849
2004 effect
Straight line - - - 3 094 156 3 094 156
operating lease
adjustment
(AC105: Operating
leases amended
interpretation -
(refer Note 1)
Restated balance 161 786 3 516 635 3 158 964 (13 730 413) (6 893 028)
at 30 June 2004
Issue of linked 19 60 3 881 750 (3 158 64) - 742 391
units
Attributable loss - - - (1 324 508) (1 324 508)
for 6 months
Balance at 31 181 391 7 398 385 - (15 054 920) (7 475 145)
December 2004
Issue of - (3 881 750) - - (3 881 750)
debentures
incorrectly
classified as
share premium
Attributable - - - 9 244 004 9 244 004
profit for 6
months
Balance at 30 June 181 391 3 516 635 - (5 810 917) (2 112 891)
2005
Note 1
Rent received in advance as a result of rental smoothing
adjustment. As a result of the amended interpretation of
AC105: Accounting for Leases, the company has adjusted rent
received by smoothing the total lease rentals due under
current leases.
Retained income as previously stated (17 639 418)
Prior year corrections 3 094 156
Rental smoothing adjustment 2004 814 849
Restated retained income: 30 June 2004 (13 730 413)
Commentary for Alpina June 2005 Financial Statements Announcement
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
Limited.
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 2004.
Audit Opinion
Alpina"s auditors, Horwath Leveton Boner, have audited the financial statements
for the year ended 30 June 2005. Their unqualified report is available for
inspection at the registered office of the company.
Operating Performance
The Alpina results reflect an improvement in profit after tax from a loss of
R15,288 million for the year ended 30 June 2004 to a profit of R7,919 million in
2005. The headline loss has declined from a restated loss of R3,500 million in
2004 to a loss of R1,785 million for the year ended 30 June 2005.
This improvement can largely be ascribed to two factors:
- During the previous financial year, the Ixia properties only produced
income for part of the year; and
- During the 2005 financial year, a number of non-performing properties were
disposed of.
In anticipation of the corporate actions referred to herein, the board has
decided to write-off certain loans and reverse an unsubstantiated liability
entry that has prescribed.
Post balance sheet events
As previously announced on 15 August 2005, Alpina has entered into an agreement
with Bonatla Property Holdings Limited ("Bonatla") whereby Alpina will dispose
of the Manchester Park and VLC House properties for a net consideration of R1
700 000 (with Bonatla assuming the mortgage bonds on these properties), which
amount is to be settled by the repurchase by Alpina of 9 022 199 "b-class"
linked units at 18,84 cents per linked unit.
Pursuant to the disposal of Gold Edge II (Pty) Limited (the owner of the Bond
Street Centre Complex) to ABSA Mortgage Fund Managers (Pty) Limited ("AMFM") for
R100, Alpina will issue 3 000 000 "b-class" linked units to AMFM at an issue
price of 20 cents per linked unit, equivalent to an amount of R600 000. The
property has been valued at R39,3 million and the participation mortgage bond of
R45 million has been assumed by the purchaser.
Corporate actions
During the year under review, the Alpina board decided to dispose of a number of
properties, viz Delta City, Profurn House and the Bond Street Centre Complex. In
each of these instances, the property was either vacant or a major tenant had
vacated the premises on termination of their respective leases.
With regard to the acquisition of the Orion Property Portfolio, the preparation
of the circular to be sent to unit holders has reached an advanced stage. It is
anticipated that the circular will be mailed to unit holders by the end of
October 2005.
The circular will also deal with the proposed restructuring of the equity and
debenture capital of Alpina and the change of control that will result from the
acquisition of the Orion Property Portfolio.
Dividends or debenture distribution
No dividends or debenture distributions have been declared for the year under
review.
For and on behalf of the board:
Directors: PD Alexander*; 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 Investor Services 2004 (Pty)
Sponsor: Imara Corporate Finance South Africa (Pty) Limited
Auditors: Horwath Leveton Boner
3 October 2005
Date: 03/10/2005 04:52:16 PM Produced by the JSE SENS Department
