| Wed 19 Apr 2006, 17:09 | | Purple Capital Limited - Unaudited Interim Financi |
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PPE
PPE
Purple Capital Limited - Unaudited Interim Financial Results for the six months
ended 28 February 2006
Purple Capital Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/013637/06)
Share code: PPE ISIN: ZAE000071411
("Purple Capital" or "the Company")
Unaudited Interim Financial Results
for the six months ended 28 February 2006
ABRIDGED INCOME STATEMENT
Restated
Unaudited Audited Reviewed
Six months Year Six months
28 February 31 August 28 February
2006 2005 2005
R"000 R"000 R"000
Net operating loss (2 802) (5 581) (663)
Black Economic Empowerment
Transaction (1 483) - -
Operating loss before
financial income (4 285) (5 581) (663)
Financial income 783 362 16
Financial expenses - (163) (90)
Share of profit of associates 2 223 1 647 -
Loss before tax (1 279) (3 735) (737)
Taxation - 2 652 (38)
Net loss after taxation (1 279) (1 083) (735)
Weighted number of shares in issue
at end of period - post-share
consolidation (000) 144 937 99 211 61 582
Basic loss per share
(cents) (0,88) (1,09) (1,26)
Headline loss per share
(cents) (0,88) (1,09) (1,26)
Diluted attributable
loss per share (cents) (0,88) (1,07) (1,26)
ABRIDGED CASH FLOW STATEMENT
Restated
Unaudited Audited Reviewed
Six months Year Six months
28 February 31 August 28 February
2006 2005 2005
R"000 R"000 R"000
Cash flow from operating
activities (2 976) (4 256) (1 720)
Cash flow from investing
activities 6 981 (1 653) 199
Cash flow from financing
activities 2 25 312 7 383
Net increase in cash and cash
equivalents 4 007 19 403 5 862
Cash and cash equivalents
at beginning of period 19 068 (335) (335)
Cash and cash equivalents
at end of period 23 075 19 068 5 527
ABRIDGED BALANCE SHEET
Restated
Unaudited Audited Reviewed
Six months Year Six months
28 February 31 August 28 February
2006 2005 2005
R"000 R"000 R"000
ASSETS
Fixed assets 296 328 275
Interests in associate companies 22 757 20 038 10 956
Other investments 2 773 672 -
Deferred tax 2 652 2 652 -
Total non-current assets 28 478 23 690 11 231
Trade and other receivables 307 294 81
Cash and cash equivalents 23 075 19 068 5 589
Non-current assets held for sale - 9 272 -
Total current assets 23 382 28 634 5 670
Total assets 51 860 52 324 16 901
EQUITY AND LIABILITIES
Issued capital and premium 82 891 82 889 47 761
Retained earnings (38 582) (35 226) (33 248)
Other reserves 6 989 3 386 869
Total equity 51 298 51 049 15 382
Trade and other payables 562 1 275 1 519
Total current liabilities 562 1 275 1 519
Total equity and liabilities 51 860 52 324 16 901
Net asset value per ordinary share
- post-share consolidation (cents) 35.39 35.22 13.80
STATEMENT OF CHANGES IN EQUITY
Restated
Unaudited Audited Reviewed
Six months Year Six months
28 February 31 August 28 February
2006 2005 2005
R"000 R"000 R"000
Balance at beginning of year 51 049 7 883 7 906
Net (loss) for the period (1 279) (1 083) (775)
Share-based payments 1 526 1 739 869
Shares issued 2 42 510 8 000
Issue cost written-off - - (618)
51 298 51 049 15 382
COMMENTARY
Financial review
The Company"s operations have produced a small profit for the six months ended
February 2006 before taking into account the charge of R1,5 million (required
in terms of IFRS 2) for the option component of the DENOSA BEE transaction
completed in September 2005.
With respect to the balance sheet:
- The shareholdings in acsis and Bridge Capital Group are reflected at
historical cost;
- Purple Capital retains an economic interest of approximately 33% of
Blackstar Managers" two-thirds carried interest in investments made on behalf
of Blackstar Investors PLC which recently raised GBP35 million (R375 million)
for equity investment in BEE transactions - having recovered most of our
initial expenditure, this investment is held at a residual cost of R0.3
million on the balance sheet.
- Sage recently announced on SENS that "... despite progress being made, all
escrow tax matters remain unresolved and are still being deliberated".
Accordingly, Purple Capital has only accounted for half of the outstanding
amount due if these tax matters are favourably resolved.
Purple Capital"s structured investment into the Enaleni Pharmaceuticals BEE
transaction (via Umnombo and DENOSA) is held at cost on the balance sheet.
As at 28 February the balance of shareholders" funds was R51,3 million and the
Company had cash on hand of R23.1 million.
Operational review
Over the past six months:
- Purple Capital concluded an empowerment transaction led by DENOSA, the
largest nurses and healthcare workers union in South Africa;
- the Company"s shares commenced trading on 3 October 2005 on a 1-for-10
consolidated basis;
- Blackstar Investors PLC raised GBP35 million (R375 million) for equity
investment in BEE transactions in South Africa. Blackstar Managers, in which
Purple Capital retains the effective interest outlined above, will manage
these investments. Andrew Bonamour, who heads up Blackstar Managers, resigned
as a director of Purple Capital on 31 December 2005;
- Purple Capital helped structure and fund the participation of Umnombo and
DIHOLD (the investment vehicle for DENOSA) in the Enaleni Pharmaceuticals BEE
transaction;
- it was announced on 3 February 2006 that 24.4 million shares, being 16,8%
of the issued share capital of the Company were purchased by strategic
investors,
including Mark Barnes, who increased his investment in Purple Capital to 31%;
and
- Ronnie Lubner, Chairman of the PG Group in South Africa and Chairman of the
International Belron Group, and Dennis Alter, Chairman and major shareholder
of Advanta Corporation, have both joined the board of Purple Capital as non-
executive directors.
Deal flow, through Umnombo, Purple Capital and Bridge Capital has increased
significantly although no revenue has been accounted for yet. We are well-
qualified and positioned to participate in the extraordinarily high level of
transactions currently in the market place, as a source of advisory revenue,
while our strategic platform is put in place.
Private Equity Funds will be a focus for the future. The successful launch of
Blackstar has proven Purple Capital"s credentials as an incubator of private
equity funds - more easily housed and grown in our structure than in the
institutional environment.
As ownership, strategic leadership and executive management continue to
transform at an increasing rate in South Africa we are all the more convinced
that our strategic mandate "...to build an independent South African financial
services group in partnership with black business leaders", is valid.
A number of alternative alliances, structures and acquisitions are being
evaluated and progressed towards bringing the components of the strategy
together.
Accounting policies
The interim results have been prepared in accordance with International
Financial Reporting Standards ("IFRS") and the results for the six month
period ended 28 February 2005 have been restated due to the first-time
adoption of IFRS. The audited results for the year ended 31 August 2005 were
already IFRS-compliant.
On behalf of the board
Mark Barnes Craig Carter
Chairman COO
Johannesburg
19 April 2006
Registered office: Transfer secretaries:
1st Floor, Eastwood Ultra Registrars (Pty) Limited
57 Sixth Road 11 Diagonal Street
Hyde Park, 2196 Johannesburg, 2001
(PO Box 411449, Craighall, 2024) (PO Box 4844, Johannesburg, 2000)
Independent auditors: Sponsor:
KPMG Incorporated Bridge Capital Services (Pty) Limited
Chartered Accountants (SA) 1st Floor, Building 22A
Registered Accountants and Auditors The Woodlands
KPMG Crescent Woodlands Drive
85 Empire Road, Parktown, 2193 Woodmead, Sandton, 2106
(Private Bag 9, Parkview, 2122) (PO Box 651010, Benmore, 2010)
Executive Directors: Mark Barnes (Chairman), Craig Carter
Non-executive Directors: Dennis Alter (American), Thembeka Gwagwa,
Ronnie Lubner (British), Julian Treger (British)
Date: 19/04/2006 05:10:23 PM Produced by the JSE SENS Department
