| Fri 19 May 2006, 12:32 | | New Corpcapital - Unaudited Interim Results: Six M |
|
NCA
NCA
New Corpcapital - Unaudited Interim Results: Six Months Ended 28 February 2006
NEW CORPCAPITAL LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2001/006539/06)
Share code: NCA & ISIN: ZAE000067765
("New Corpcapital")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 28 FEBRUARY 2006
Consolidated balance sheet
Unaudited IFRS Restated IFRS Restated
Rm 28 Feb 2006 28 Feb 2005 31 Aug 2005
assets
Non-current assets 582,2 534,9 597,4
Financial product assets 291,9 291,6 277,1
Investments available for
sale - surrendered
policies 28,0 14,8 25,3
Associates and joint
ventures - - 47,7
Corpcapital Life
policyholder investments,
interest bearing
securities and deposits 262,3 228,5 247,3
Current assets 96,5 341,5 202,4
Cash and cash equivalents 68,1 135,5 180,6
Trading securities and
liquid assets 0,5 2,2 0,5
Advances and other
accounts receivable 21,6 200,0 15,1
Taxation assets 6,3 3,8 6,2
Total assets 678,7 876,4 799,8
Equity and liabilities
Share capital and premium 214,9 411,9 254,7
Accumulated losses (123,6) (196,7) (128,3)
Total shareholders" equity 91,3 215,2 126,4
Total liabilities 587,4 661,2 673,4
Non-current liabilities 554,3 537,2 524,6
Corpcapital Life
policyholders liabilities
- investment contracts 262,3 228,5 247,3
Long-term debt - 17,1 -
Deferred taxation 0,1 - 0,1
Financial product
liabilities 291,9 291,6 277,2
Current liabilities 33,1 124,0 148,8
Short-term debt 18,9 108,1 132,0
Trading liabilities 0,5 2,2 0,5
Accounts payable and
accruals 12,3 12,5 14,9
Taxation liabilities 1,4 1,2 1,4
Total equity and
liabilities 678,7 876,4 799,8
Net asset value per share
(cents) 24,0 21,520,000,0 33,3
Issued ordinary shares
("000) 379,941 1 379,941
Consolidated income
statement Unaudited IFRS Restated IFRS Restated
six months six months year
Rm 28 Feb 2006 28 Feb 2005 31 Aug 2005
Revenue 50,3 39,0 78,1
Profit before taxation and
goodwill 4,7 13,1 17,3
Goodwill arising on
acquisition of subsidaries
of Corpcapital - - 66,1
Profit before taxation 4,7 13,1 83,4
Taxation - 0,1 1,9
Profit after taxation 4,7 13,1 81,5
Earnings per ordinary share
(cents) 1,2 1,306,515,3 21,5
Weighted average number of
ordinary
shares in issue ("000) 379,941 1 379,941
Analysis of headline
earnings adjustments Unaudited IFRS Restated IFRS Restated
six months six months year
Rm 28 Feb 2006 28 Feb 2005 31 Aug 2005
Attributable profits 4,7 13,1 81,5
Headline earnings
adjustments (7,3) - (71,7)
Goodwill amortisation - - (1,4)
Profits on sale of
associates (7,3) - (4,2)
Impairment of investments
and business - - (66,1)
Headline (loss)/earnings (2,6) 13,1 9,8
Headline (loss)/earnings
per share (cents) (0,7) 1,306,515,3 2,6
Consolidated statement of
changes Unaudited IFRS Restated IFRS Restated
in equity six months six months year
Rm 28 Feb 2006 28 Feb 2005 31 Aug 2005
Ordinary shareholders"
equity at beginning of year 126,4 202,1 202,1
Attributable profit 4,7 13,1 81,5
Distributions (39,8) - (157,2)
91,3 215,2 126,4
Consolidated cash flow
statement Unaudited IFRS Restated IFRS Restated
six months six months year
Rm 28 Feb 2006 28 Feb 2005 31 Aug 2005
Operating activities -
winding down operations (125,1) 80,6 58,0
Taxation paid (0,1) (0,3) (0,4)
Investing activities 52,4 17,7 11,0
Financing activities (39,7) 9,4 83,9
Net change in cash and cash
equivalents (112,5) 107,4 152,5
Opening cash and cash
equivalents 180,6 28,1 28,1
Closing cash and cash
equivalents 68,1 135,5 180,6
Accounting Policies and International Financial Reporting Standards (IFRS)
These interim results have not been audited or reviewed by the company"s
auditors.
With effect from 1 September 2005 New Corpcapital has prepared its consolidated
financial statements in accordance with IFRS. In accordance with IFRS1 - First
Time Adoption of IFRS, New Corpcapital has prepared an opening IFRS balance
sheet at the date of transition to IFRS, being 1 September 2004. Comparative
figures for the year ended 31 August 2005 and the six months ended 28 February
2005 have been restated accordingly. The IFRS standards are subject to ongoing
review and interpretation by the International Accounting Standards Board.
Consequently IFRS information at year end may differ from the information
reported in this interim report.
Adjustments which reflect the major differences between previous accounting
policies under South African Statements of Generally Accepted Accounting
Practice (SA GAAP) and IFRS are:
IAS18 - Revenue
IAS18 requires that fees charged for managing investments are recognised as
revenue as the services are provided.
The fee income earned on the investment contracts were previously recognised at
the inception of the contracts. This income is now recognised on a straight
line basis over the term of the investment contract.
The financial effects of these adjustments, net of taxation, are set out in the
table below:
Reconciliation of previous
SA GAAP to IFRS IFRS transition
date
Rm 28 Feb 2005 31 Aug 2005 1 Sept 2004
Reconciliation of equity
Previously reported under
SA GAAP 222,9 131,2 212,9
Adjustment for adoption of
IFRS (7,7) (4,8) (10,8)
Equity reported under IFRS 215,2 126,4 202,1
Effect of IFRS adjustments:
Retained income and reserves (7,7) (4,8) (10,8)
Accounts payable and
accruals 7,7 4,8 10,8
Six months Year
28 Feb 2005 31 Aug 2005
Net profit after taxation
Previously reported under SA GAAP 10,0 75,5
Effect of IFRS on "Investing, trading and fee
income" 3,1 6,0
Net profit after taxation (restated) 13,1 81,5
Commentary
New Corpcapital Limited was listed on the JSE Limited on 27 June 2005 following
the liquidation of Corpcapital Limited and the termination of its listing. New
Corpcapital was previously an unlisted wholly-owned subsidiary of Corpcapital
and therefore comparative figures in its interim financial statements are not
comparable with those of the current interim period.
New Corpcapital continued Corpcapital"s well-advanced strategy of realising
group assets and returning capital to shareholders. Accordingly, the group"s
operations are regarded as discontinuing and the accounting policies adopted
for the interim period are consistent with the previous year. The policies
comply in all respects with International Financial Reporting Standards and
South African Statements of Generally Accepted Accounting Practice. Remaining
assets are reflected at fair value and continue to be managed by the group.
These include a dormant life insurance company, whose life policies mature
within two years, and the remnants of a debtors" book, currently being
collected.
Revenue for the interim period arises from interest earned and the profit on
the disposal of the group"s investment in Forza Group Limited. Long term
liabilities and corresponding assets reflected in the interim financial
statements arise from structured products of the group"s former bank and the
dormant life insurance company. Overhead costs have been reduced in line with
the limited scope of activities and all onerous contracts have been settled.
The board remains committed to cost-effectively winding-up the group"s
remaining operations.
The claims by the Brian Puttergill Family Trust for which the company bound
itself as surety and which were the subject of arbitration proceedings, were
settled during the current financial year. As previously published, the
settlement did not have a material impact on the anticipated further
distributions to shareholders. The previously reported claim against
Corpcapital by Clear Channel Independent, for which New Corpcapital had bound
itself as surety, was settled during the interim period under review. The
effect of the settlement was taken into account in arriving at the estimated
future distributions to shareholders of 25,5 cents per share over time, as
stated in the 31 August 2005 year-end financial statements.
Through suretyships and indemnities furnished by the group, New Corpcapital
remains indirectly engaged in litigation proceedings. Claims by and against
former director Nic Frangos are currently being heard by the High Court,
Pretoria. An application to court to order the Minister of Trade & Industry to
release the report into Corpcapital"s affairs has been heard by the High Court,
Pretoria and we are awaiting the court"s judgment. Frangos has opposed the
release of the inspectors" report and seeks the reopening of the inspection.
Based on the information available and the opinions of its advisors, the
company does not expect these proceedings to materially affect its estimate of
future realisable net asset value. The potential outcome of litigation
proceedings nevertheless remains inherently uncertain.
New Corpcapital distributed 10,5 cents per share to shareholders on 31 October
2005. A further announcement will be made as soon as the exact amount and
timing of a further interim distribution to shareholders has been determined.
The board anticipates that such announcement will be made within four weeks.
Tom Wixley Benji Liebmann
Chairman Director
19 May 2006
NEW CORPCAPITAL LIMITED (2001/006539/06)
1st floor, 3 Melrose Square, Melrose Arch
Johannesburg 2196
PO BOX 471917, PARKLANDS 2121 SOUTH AFRICA
TELEPHONE +27 11 684 1057 TELEFAX +27 11 684 1058
DIRECTORS: T A Wixley** (Non-executive CHAIRMAN)
D Brooking** N N LAZARUS* G B LIEBMANN
(*NON-EXECUTIVE) (**INDEPENDENT NON-EXECUTIVE)
(Share code: NCA ISIN: ZAE000067765)
Date: 19/05/2006 12:32:25 PM Produced by the JSE SENS Department
