| Fri 2 Jun 2006, 9:00 | | Brait - Reviewed group results for the year ended |
|
BAT
BRAIT
Brait - Reviewed group results for the year ended 31 March 2006
Brait S.A.Societe Anonyme
("Brait" or "the Company")
(Incorporated in Luxembourg)
Registration number: RC Luxembourg B-13861
Registered office: 180 rue des Aubepines, L-1145, Luxembourg
Share code: BAT
ISIN code: LU0011857645
Reviewed group results
for the year ended 31 March 2006
Partnerships based on passion, energy and a pioneering spirit of enterprise
Highlights
- Earnings continue to grow strongly
Attributable earnings up by 38,6% to US$47,0 million (ZAR 300,8 million)
Headline earnings up by 22,4% to US$41,5 million (ZAR 265,5 million)
- Return on equity increases from 32% to 45,9%
- Annual dividend distributions up 32,7% to 18,24 US cents per share
- NAV improved to 155,7 US cents per share (961,6 SA cents per share), an
increase of 54,5% (after adding back dividends)
- Debt capital of US$72,9 million (ZAR 450 million) raised to leverage organic
growth
- Growth in Funds Under Management (fee earning) from US$508 million to
US$1,046 million
Salient features
for the year ended 31 March
Supplementary Rand
information (Note 1)
Audited Reviewed Reviewed Audited
2005 2006 2006 2005
ZARm ZARm US$m US$m Change
302,8 338,6 Profit from operations 52,9 48,5 9,1%
242,4 250,2 Private equity 39,1 38,8
0,7 5,8 Corporate finance 0,9 0,1
7,3 8,3 Specialised funds 1,3 1,2
52,4 74,3 Group investments 11,6 8,4
(15,7) (15,4) Finance costs (2,4) (2,5)
(69,7) 12,2 Capital items 1,9 (11,2)
217,4 335,4 Profit before taxation 52,4 34,8 50,6%
(3,1) (17,3) Taxation (2,7) (0,5)
214,3 318,1 Profit after taxation 49,7 34,3 44,9%
(2,6) (17,3) Minority interest (2,7) (0,4)
211,7 300,8 Attributable earnings 47,0 33,9 38,6%
PERFORMANCE
Headline earnings per share
237,1 291,7 - Basic (cents) 45,8 38,0 20,5%
216,7 256,7 - Diluted (cents) 40,3 34,7 16,1%
Attributable earnings per
share
237,1 331,9 - Basic (cents) 51,9 38,0 36,6%
216,7 292,1 - Diluted (cents) 45,6 34,7 31,4%
89,89 119,32 Dividends per share 18,24 13,75 32,7%
21,47 51,51 - Interim (cents) 7,85 3,50
68,42 67,81 - Final proposed (cents) 10,39 10,25
Net asset value per share
813,0 961,6 (cents) 155,7 130,3 19,5%
32,0% 45,9% Return on equity 45,9% 32,0% 43,4%
FINANCIAL STATISTICS
Market capitalisation
1 033,4 2 536,9 - 31 March (m) 410,8 165,6 148,0%
88,3 101,5 Shares in issue (m) 101,5 88,3 14,9%
Weighted average shares in
issue
89,3 90,6 - Basic (m) 90,6 89,3 1,5%
97,7 103,0 - Diluted (m) 103,0 97,7 5,4%
Closing share price
1 170,0 2 500,0 - 31 March (cents) 404,8 187,5 115,9%
ZAR/Dollar exchange rate
6,2395 6,1765 - closing 0,1619 0,1603
6,2503 6,3979 - average 0,1563 0,1600
Note 1: The disclosure above is for information purposes and does not form part
of the group financial statements.
Abridged group income statements
for the year ended 31 March
Supplementary Rand information
Audited Reviewed Reviewed Audited
2005 2006 2006 2005
ZARm ZARm Notes US$m US$m
281,2 284,8 Revenue 44,5 45,0
204,9 315,4 Other income 49,3 32,8
486,1 600,2 Total revenue and income 93,8 77,8
(193,3) (272,5) Operating expenses (42,6) (30,9)
10,0 10,9 Income from associates 1,7 1,6
302,8 338,6 Profit from operations 4 52,9 48,5
(15,7) (15,4) Finance costs (2,4) (2,5)
(69,7) 12,2 Capital items 5 1,9 (11,2)
217,4 335,4 Profit before taxation 52,4 34,8
(3,1) (17,3) Taxation (2,7) (0,5)
214,3 318,1 Profit for the year 49,7 34,3
Attributable to:
- equity holders of the
211,7 300,8 parent 47,0 33,9
2,6 17,3 - minority shareholders 2,7 0,4
89,89 119,32 Dividends per share (cents) 18,24 13,75
Basic attributable earnings
237,1 331,9 per share (cents) 51,9 38,0
Diluted earnings per share
216,7 292,1 (cents) 45,6 34,7
Abridged group balance sheets
as at 31 March
Supplementary Rand information
Audited Reviewed Reviewed Audited
2005 2006 2006 2005
ZARm ZARm Notes US$m US$m
ASSETS
741,9 1 050,6 Non-current assets 170,1 118,9
695,7 1 009,2 Investments 163,4 111,5
46,2 41,4 Other non-current assets 6,7 7,4
346,9 799,7 Current assets 129,5 55,6
111,1 518,2 Cash and cash equivalents 83,9 17,8
235,8 281,5 Other current assets 45,6 37,8
Non-current assets held for
51,1 - sale 3 - 8,2
1 139,9 1 850,3 Total assets 299,6 182,7
EQUITY AND LIABILITIES
718,1 975,8 Equity and reserves 158,0 115,1
Liabilities
180,3 616,4 Non-current liabilities 99,8 28,9
- 450,3 Redeemable preference 11 72,9 -
shares
Other non-current
180,3 166,1 liabilities 26,9 28,9
159,1 258,1 Current liabilities 41,8 25,5
Liabilities directly
associated with
non-current assets held for
82,4 - sale - 13,2
1 139,9 1 850,3 Total equity and 299,6 182,7
liabilities
Net asset value per
813,0 961,6 ordinary share (cents) 155,7 130,3
Abridged group cash flow statements
for the year ended 31 March
Reviewed Audited
2006 2005
US$m US$m
Cash flows from:
Operating activities 22,9 20,6
Finance cost (2,4) (2,5)
Capital items (3,5) (4,1)
Taxation paid (2,2) (0,8)
Change in working funds (11,5) (6,2)
Cash (applied in)/generated by operating activities 3,3 7,0
Cash flows generated from/(applied in) investing
activities 24,4 (17,1)
Cash flows generated from/(applied in) operating and
investing activities 21,0 (10,1)
Dividends paid (19,8) (6,3)
Cash flows from financing activities 61,6 19,2
Net increase in cash and cash equivalents 66,2 2,8
Effects of exchange rate changes on cash and cash
equivalents (0,1) -
Cash and cash equivalents at beginning of year 17,8 15,0
Cash and cash equivalents at end of year 83,9 17,8
Group statements of changes in equity
for the year ended 31 March
Attributable to equity holders of the parent
Share Foreign Total
capital currency equity
and Legal Equity translati Retaine Minorit and
on d y
premium reserve reserv reserves reserve interes reserve
s e s t s
US$m US$m US$m US$m US$m US$m US$m
Balance at
31 March 70,6 2,6 2,5 (30,6) 43,7 - 88,8
2004
Net
translation
adjustments - - - 0,5 - - 0,5
Profit for
the year - - - - 33,9 0,4 34,3
Share
entitlement - - 0,4 - - - 0,4
s
Foreign
currency
adjustment
on capital - - (0,3) - - - (0,3)
Ordinary (
dividends
paid - - - - (6,3) - 6,3)
Treasury
shares (3,3) - - - - - (3,3)
Transfer
from
capital to (0,7) - - - 0,7 - -
reserves
Acquisition
of - - - - - 1,0 1,0
subsidiary
Balance at
31 March 66,6 2,6 2,6 (30,1) 72,0 1,4 115,1
2005
Net
translation
adjustments - - - 0,7 - 0,8 1,5
Restructuri
ng of - - - - (0,3) (0,3) (0,6)
subsidiary
Sale of
interest in
subsidiary - - - - - 1,8 1,8
Bonus
shares 12,3 - - - - - 12,3
issued
Treasury (12,3)
shares - - - - - (12,3)
Delivered
share
scheme 9,4 - - - - - 9,4
shares
Profit for
the year - - - - 47,0 2,7 49,7
Foreign
currency
adjustment
on capital - - 0,2 - - - 0,2
Share
entitlement - - 0,7 - - - 0,7
s
Ordinary
dividends
paid - - - - (19,8) - (19,8)
Transfer
from
capital to (40,0) - - - 40,0 - -
reserves
Balance at
31 March 36,0 2,6 3,5 (29,4) 138,9 6,4 158,0
2006
Group segmental reports
for the year ended 31 March
Supplementary Rand information
Audited Reviewed Reviewed Audited
2005 2006 2006 2005
ZARm ZARm US$m US$m
BUSINESS ANALYSIS
Segment income
281,2 284,8 Revenue 44,5 45,0
142,5 70,4 - Private equity 11,0 22,8
25,6 50,5 - Corporate finance 7,9 4,1
15,0 25,0 - Specialised funds 3,9 2,4
98,1 138,9 - Group investments 21,7 15,7
204,9 315,4 Other income 49,3 32,8
186,1 293,7 - Private equity 45,9 29,8
(1,9) (0,6) - Corporate finance (0,1) (0,3)
19,4 16,6 - Specialised funds 2,6 3,1
1,3 5,7 - Group investments 0,9 0,2
486,1 600,2 Total segment income 93,8 77,8
302,8 338,6 Segment result 52,9 48,5
242,4 250,2 - Private equity 39,1 38,8
0,7 5,8 - Corporate finance 0,9 0,1
7,3 8,3 - Specialised funds 1,3 1,2
52,4 74,3 - Group investments 11,6 8,4
(15,7) (15,4) Finance cost (2,4) (2,5)
(69,7) 12,2 Capital items 1,9 (11,2)
217,4 335,4 Profit before taxation 52,4 34,8
1 110,0 1 867,6 Segment assets 302,4 177,9
540,8 735,0 - Private equity 119,0 86,7
9,6 1,9 - Corporate finance 0,3 1,5
129,6 470,0 - Specialised funds 76,1 20,8
430,0 660,7 - Group investments 107,0 68,9
29,9 (17,3) Other (2,8) 4,8
1 139,9 1 850,3 Total assets per balance sheet 299,6 182,7
167,6 266,1 Segment liabilities 43,1 26,9
28,0 59,3 - Private equity 9,6 4,5
11,7 16,1 - Corporate finance 2,6 1,9
1,2 6,8 - Specialised funds 1,1 0,2
126,7 183,9 - Group investments 29,8 20,3
254,2 608,4 Other 98,5 40,7
Total liabilities per balance
421,8 874,5 sheet 141,6 67,6
942,4 1 601,5 Segment net assets 259,3 151,0
512,8 675,7 - Private equity 109,4 82,2
(2,1) (14,2) - Corporate finance (2,3) (0,4)
128,4 463,2 - Specialised funds 75,0 20,6
303,3 476,8 - Group investments 77,2 48,6
(224,3) (625,7) Other 101,3 (35,9)
Total net assets per balance
718,1 975,8 sheet 158,0 115,1
GEOGRAPHICAL ANALYSIS
Segment income
281,2 284,8 Revenue 44,5 45,0
79,8 138,9 - International 21,7 13,9
201,4 145,9 - South Africa 22,8 31,1
204,9 315,4 Other income 49,3 32,8
127,2 60,9 - International 9,5 20,8
77,7 254,5 - South Africa 39,8 12,0
486,1 600,2 Total segment income 93,8 77,8
302,8 338,6 Segment result 52,9 48,5
73,6 78,2 - International 12,2 13,1
229,2 260,4 - South Africa 40,7 35,4
(15,7) (15,4) Finance cost (2,4) (2,5)
217,4 335,4 Profit before taxation 52,4 34,8
942,4 1 601,5 Segment net assets 259,3 151,0
453,9 1 066,7 - International 172,7 75,3
488,5 534,8 - South Africa 86,6 75,7
(224,3) (625,7) Other (101,3) (35,9)
Total net assets per balance
718,1 975,8 sheet 158,0 115,1
Notes to the financial statements
for the year ended 31 March
The results for the year ended 31 March 2006 have been reviewed by the group"s
auditors, Deloitte & Touche, and their unqualified review opinion is available
for inspection at the group"s registered office.
1. Basis for preparation
The financial statements of the group are prepared in accordance with
International Financial Reporting Standards (IFRS). The abridged financial
statements are presented in accordance with International Accounting Standards
34 (Interim Financial Reporting). The accounting policies are consistent with
those applied in the previous year.
2. Supplementary Rand information
The balance sheets and income statements of the group have also been presented
in Rands for the convenience of South African stakeholders in the group. The
supplementary Rand results have been converted from the US$ measurement results
using a closing rate of R6,1765 to US$1 (2005: R6,2395 to US$1) for the balance
sheets and an average rate of R6,3979 to US$1 (2005: R6,2503 to US$1) for the
income statements.
3. Non-current assets held for sale
The group"s Johannesburg property and buildings, including fittings, situated at
9 Fricker Road Illovo, have been sold during the year, resulting in a gain of
US$2,8 million (ZAR17,9 million) which is included in the income statements for
the current year.
Reviewed Audited
2006 2005
US$m US$m
4. Profit from operations includes:
Dividends received 2,3 11,3
Interest received 23,3 16,2
Depreciation (0,6) (0,4)
Related party transactions
- Interest received 1,0 1,9
- Interest paid (1,2) (0,6)
- Fees paid (0,6) (0,7)
- Dividends received 0,9 -
5. Capital items include:
Currency hedge cost (2,2) (4,1)
Fair valuation adjustment of financial liability (1,4) (7,1)
Profit on disposal of interest in subsidiary 2,9 -
Profit on disposal of property, buildings and
fittings 2,8 -
Realisation of translation adjustment (0,2) -
Total capital items 1,9 (11,2)
6. Investment in associates
- Unlisted
- carrying value 11,3 8,6
- directors" valuation 11,3 8,6
7. Commitments, guarantees and contingent
liabilities
- Commitments (principally to Brait III and IV) 41,4 20,4
- Sureties, guarantees and subordinated loans 5,3 7,0
- Contingent liabilities contracted - 1,5
8. Related party balances
- Liabilities (14,5) (14,4)
- Assets 11,5 17,7
9. Interest-bearing liabilities
All liabilities are interest bearing except for US$37,8 million (2005: US$20,3
million) in respect of accounts payable, accruals, provisions and deferred
taxation.
10. Headline earnings
As IFRS does not recognise the concept of headline earnings, Brait had
historically prepared a reconciliation between attributable earnings and
headline earnings for illustrative purposes for South African users, based on
adjustments required by South African Statements of Generallay Accepted
Accounting Practice.
Reviewed Audited
2006 2005
US$m US$m
Attributable earnings 47,0 33,9
Headline earnings adjustment (5,5) -
- Profit on disposal of interest in subsidiary (2,9) -
- Profit on sale of non-current assets held for
sale (2,8) -
- Realisation of translation adjustment 0,2 -
Headline earnings 41,5 33,9
11. Redeemable cumulative preference shares
In March 2006 a subsidiary of the group, Brait South Africa Limited, raised
US$73 million (ZAR450 million) preference share capital to provide additional
capital to leverage the group"s internal growth strategy.
450 000 (four hundred and fifty thousand) cumulative redeemable preference
shares were issued at a par value of ZAR0,01 and a premium of ZAR999,99 per
share. These shares carry a dividend of 78% of the South African Prime rate and
are redeemable in four tranches on 31 July of each year commencing in 2010 until
2013. This issue had no significant impact on the earnings and headline earnings
per share.
12. Subsequent events
No events have taken place between 31 March 2006 and the date of the release of
this report, which would have a material impact on either the financial position
or operating results of the group.
Commentary
Group profile
Brait is an international investment and financial services group focused on
private equity, corporate finance, specialised funds and strategic investments.
It is listed on the Luxembourg, London and the JSE Limited, with shareowners"
funds of US$158 million at 31 March 2006.
Brait"s earnings are derived from:
- private equity management fees and investment returns;
- alternative funds management fees and investment returns;
- corporate and debt advisory services; and
- group investment returns.
Financial results
Earnings
- Profit from operations - US$52,9 million
Profit from operations has increased from US$48,5 million to US$52,9 million for
the period. Earnings improved in all business segments with the major
contributions coming from the group"s private equity and group investments
operations.
- Capital items - US$1,9 million
Currency hedge cost
Brait has consistently applied its policy of hedging the group"s South African
tangible assets into US dollars, which is the functional currency of Brait S.A..
The cost of the hedge recognised against income for the year was US$2,2 million.
Fair value adjustment of financial liability
The sale of 26% of Brait South Africa Limited during the previous financial year
to the group"s new BEE partner has not been recorded as a sale as it has given
rise to a financial instrument which has been disclosed in terms of IAS 32
(Financial Instruments: Disclosure and Presentation) and measured in terms of
IAS 39 (Financial Instruments: Recognition and Measurement). The fair value
adjustment loss of this financial instrument for the year was US$1,4 million.
Profit on disposal of interest in subsidiary
During the year the group introduced new strategic partners to Bayport Holdings
Limited realising a profit on disposal of US$2,9 million and reducing Brait"s
effective economic interest to 41,66%. Brait continues to consolidate Bayport as
the group"s voting interest is 53,41%.
Profit on disposal of property, buildings and fittings
The group has sold its Johannesburg property and buildings, including fittings,
situated at 9 Fricker Road, Illovo, during the second half of the year resulting
in a gain of US$2,8 million.
Return on equity - 45,9%
The US dollar return on average shareowners" funds was 45,9%, substantially
exceeding the 32% achieved in the previous year. The group"s net asset value
increased by 54,5% after adding back dividends paid.
Segmental review
Private Equity
Private equity has produced another set of solid results for the year. This
performance has been driven primarily by value recognition in Brait III and
further growth in the group"s proprietary investing income. Revenue and other
income have increased by 8% and after recognising abnormal costs incurred in
raising Brait IV, profit from operations improved by 1% from US$38,8million to
US$39,1 million. Return on equity in private equity was 40,8% on average capital
employed of US$95,8 million.
Brait has been well positioned in 2005/2006 to take advantage of the
opportunities in the private equity market and further establish its position as
a leading South African independent fund manager. Earlier this year, Brait was
voted best African private equity manager by Private Equity International. Brait
has continued to improve its unique 15 year investment record and, Brait III,
South Africa"s largest private equity fund to date, promises to complement this
achievement with the current gross internal rate of return in excess of 38%.
Deal flow has been strong, particularly in realisations with more than US$140
million being returned to investors in the period. Given the experience of the
management team, Brait is well placed to take on the next chapter in Brait
Private Equity, Brait IV.
Investor support for Brait"s new general equity fund, Brait IV, has been strong.
This has been driven by Brait"s investment performance and South African equity
market fundamentals. Management is confident that this fund will be closed as
its largest fund to date by December 2006.
Some notable transactions were concluded during the period, namely:
- the Net 1 listing on Nasdaq and partial realisation in Brait III;
- the Reclamation Group buy-out and realisation in Brait III;
- follow on investments in Logical Options and Medu Capital in Brait III;
- the unwinding of Brait II following the realisations of Nortech, Unispan and
Shoe City; and
- the disposals of Dywidag, Metra Holdings and Aqua Enabling in proprietary
investments.
Investment earnings from private equity are by nature volatile and dependent on
timing and market conditions. Earnings from private equity investments
incorporate income distributions as well as realised and unrealised fair value-
based uplifts. Approximately 69% of private equity earnings in the period are
unrealised.
Corporate Finance
Operating earnings for the year from Corporate Finance were significantly up,
albeit from a low base.
The main contributor within the corporate finance area was Specialised Debt
Finance ("SDF") with operational earnings of US$3,2 million for the year.
Following the success of the first euro high yield bond for a South African
corporate pioneered by the division, it also advised on the first South African
management buy-out funded by euro bonds. SDF"s ability to identify opportunities
and to design innovative funding structures using various funding sources and
instruments, presents strong opportunities for continued earnings growth.
Its market leadership, experience, international relationships and expertise
gained through, among others, its facilitation of two of the four euro bond
offerings by South African issuers to date, should contribute in
this regard.
Specialised Funds
Specialised funds income, which consists of fees earned from the management of
third-party capital in the group"s hedge funds and investment returns generated
from Brait"s own seed capital, increased by 18% to
US$6,5 million from US$5,5 million the previous year. Operating earnings
increased by 8% to US$1,3 million from US$1,2 million the previous year.
In recent years the hedge fund industry has moved into mainstream thinking, due
to the ability to offer alternative sources of market related returns (alpha)
and meaningful diversification in a world that is contracting due to
globalisation. The experience in South Africa has mirrored international growth
in assets and interest, with estimates placing the domestic industry at ZAR12
billion across nearly 100 funds.
Over the last five years, Specialised Funds has single-mindedly focused on
building performance consistency and infrastructure capability within our fund
of hedge funds, to offer institutional investors a cash plus product that is
complementary to traditional equity exposure. We have therefore been fortunately
positioned to benefit from an increased focus on portfolio re-balancing within
risk management by our target client base, and have emerged as a leader in our
particular space.
Assets under management (AUM) grew significantly, increasing by 691% since 31
March 2005 to US$512 million, spread across 19 hedge funds, chosen by our
multimanagement team for their ability to balance risk against investment
opportunity. Despite this considerable growth in AUM, we are fortunate to have
secured an additional ZAR3,1 billion of single strategy capacity with our
existing managers, and plan to add to this during the year as we search for new
sources of alpha.
Performance during the year was satisfactory, with Brait Absolute SA Fund (Brait
Absolute) continuing to outperform three-year rolling return objectives,
returning 6,6% above cash and 11,8% ahead of inflation, whilst limiting
volatility to 2,6%. Brait Absolute furthermore extended its consecutive positive
monthly returns to 44, while correlation and beta to the All Share Index
remained very low at 0,25 and 0,06 respectively.
We remain focused on delivering expected performance within specialised mandates
utilising hedge fund strategies, and aim to expand our capabilities during the
year ahead through specific product developments. We are in advanced stages of
launching a large multistrategy fund, which promises to enhance our abilities to
deliver exciting performance whilst minimising operational risk. In addition, we
believe that an increasing client base, including international investors
attracted to South Africa"s macro-economic developments, will expect more
customised solutions, which our experience in the industry suggests we can now
accommodate.
Group Investments
Earnings from the group"s strategic investments have increased by 38% to US$11,6
million from US$8,4 million and return on capital employed is 18,4%.
Bayport, the largest single contributor to Group Investments, maintained its
earnings growth increasing earnings by 277% from US$1,7 million to US$6,4
million. Bayport has grown its advances from US$16,2 million to US$33,8 million
and continues to expand its micro-lending and financial services operations in
sub-Saharan Africa.
The group"s South African micro-lending interests held through Capital Alliance
Finance remained profitable and generate surplus cash.
In November 2005, the group established an independent mezzanine fund management
business. Mezzanine Partners (Proprietary) Limited ("Mezzanine Partners"), a
joint venture between Brait South Africa Limited, Old Mutual Asset Managers
(South Africa) (Proprietary) Limited and its executive management, is South
Africa"s first independent mezzanine fund manager. At year-end, the first
mezzanine fund to be managed by Mezzanine Partners and Mezzanine Partners 1 LP,
had committed capital of US$43 million and concluded its maiden investment
subsequent to year-end.
PROSPECTS
Over the last three years Brait has focused on its core private equity business,
appreciably grown its earnings, and has developed some exciting new business
opportunities in its Specialised Funds and Bayport operations which are expected
to make a more significant contribution to earnings. The group believes that it
is now well positioned to capitalise on the opportunities prevalent in its
markets. These include:
- a uniquely experienced, motivated and capable team;
- the potential to deliver substantial further value in Brait III;
- significant new capital and future prospects from Brait IV;
- new low cost capital to expand Brait"s proprietary investment growth;
- a market leading position in the rapidly growing fund of hedge fund arena; and
- a profitable and expanding low risk micro-lending service offering in sub-
Saharan Africa.
The sustainable macro-economic prospects for Brait"s core businesses,
particularly in the African region, are as good as they have ever been over any
time in the past decade.
Provided there are no market or other events outside the group"s control, the
prospects for continued earnings growth and equity returns with these
fundamentals in place are very encouraging.
DIVIDEND
The board holds the view that dividend distributions are an important part of
long-term shareowners" wealth creation and an indication of the health of the
group. Accordingly, it has resolved to make regular dividend payments.
After taking into consideration the present financial and cash position of the
group, the board proposes to pay a final dividend of 10,39 US cents per share.
When added to the interim dividend of 7,85 US cents per share, this equates to
an annual dividend of 18,24 US cents per share (2005: 13,75 US cents per share)
and an annual dividend cover of 2,5 times diluted attributable earnings per
share.
Shareowners registered on the South African register are advised that the final
dividend is 67,81 cents per share, and has been determined using the Rand/US
dollar exchange rate in Luxembourg at 12:00 on 30 May 2006.
DIVIDEND NOTICE
Members will be asked to approve the following dividend declarations at the
Annual General Meeting of the company to be held on Wednesday, 26 July 2006 in
Luxembourg.
- the declaration of the final dividend of 10,39 US cents per share in respect
of the year ended 31 March 2006 and endorse the payment of the interim dividend
of 7,85 US cents per share, paid on 21 November 2005; and
- for shareowners registered on the South African register, the declaration of
the final dividend of 67,81 cents per share in respect of the year ended 31
March 2006 and endorse the payment of the interim dividend of 51,51 cents per
share, paid on 21 November 2005.
If approved by the shareowners, payment of the final dividend will be effected
on Wednesday, 16 August 2006 to shareowners registered as such on the record
date, Friday, 11 August 2006. The last day to trade "cum dividend" will be
Thursday, 3 August 2006 and the share will commence trading "ex dividend" on
Friday, 4 August 2006. Share certificates may not be dematerialised between
Friday, 4 August 2006 and Friday, 11 August 2006 both days inclusive. No
transfers between registers may take place between Friday, 28 July 2006 and
Friday, 11 August 2006 both days inclusive.
Non-resident shareowners registered on the South African register, who prefer
their dividends to be paid in US dollars, are advised to inform their
CSDPs/brokers accordingly and provide their banking details to their
CSDPs/brokers by the required deadline in terms of their agreements entered into
with their CSDPs/brokers.
For and on behalf of the board
ME King JJ Coulter
Senior Chairman Group Chief Executive
1 June 2006
Administration
Registered office
Brait S.A.
180, rue des Aubepines
L-1145, Luxembourg
Tel: +352 269255 2180
Fax: +352 269255 3642
Brait South Africa Limited
9 Fricker Road
Illovo Boulevard, Illovo, Sandton
South Africa
Tel: +27 11 507 1000
Fax: +27 11 507 1001
LISTING AGENT
Dexia Banque Internationale
Luxembourg
69, route d"Esch
L-2953, Luxembourg
Tel: +352 45901
Fax: +352 45902010
Transfer Agent/Registrar
United Kingdom
Capita IRG plc
Bourne House
34 Beckenham Road
Beckenham
Kent, BR3 4TU
United Kingdom
Tel: 0944 208 639 2157
Fax: 0944 208 639 2342
South Africa
Computershare Investor Services 2004 (Pty) Limited,
70 Marshall Street
Johannesburg, 2001
or
PO Box 61051, Marshalltown, 2107
Tel: +27 11 370 5000
Fax: +27 11 668 5200
Legal advisors to the Company
Elvinger, Hoss & Prussen
2, Place Winston Churchill
L-1340, Luxembourg
Independent Auditors
Deloitte & Touche S.A.
560, rue de Neudorf
L-2220
Luxembourg
Domiciliary agent and registrar
Experta Luxembourg S.A.
180, rue des Aub pines
L-1145, Luxembourg
Tel: +352 269255 2180
Fax: +352 269255 3642
JSE and LSE Issuer Name and Code
Issuer long name - Brait S.A.
Issuer code - BRAIT
Instrument alpha code/
Ticker symbol - BAT
ISIN - LU 0011857645
Directors
ME King (Senior Chairman)?*, AC Ball*, PAB Beecroft??, JE Bodoni?#,
BI Childs?, JJ Coulter
, JA Gnodde*, RJ Koch??, AM Rosenzweig?**,
CJ Tayelor*, HRW Troskie?**, SJP Weber#, PL Wilmot?*
?Non-executive, *South African, #Luxembourgish, ?British, **Dutch,
Irish
Financial information for the year ended 31 March 2006
is also available on the Brait website at www.brait.com
Date: 02/06/2006 09:00:25 AM Produced by the JSE SENS Department
