| Wed 16 Aug 2006, 9:29 | | Samrand - Reviewed Preliminary Consolidated Result |
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SMR
SMR
Samrand - Reviewed Preliminary Consolidated Results for the 12 months
ended 31 March 2006
Samrand Development Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1971/003132/06)
Share code: SMR & ISIN: ZAE000010419
("Samrand" or "the group" or "the company")
REVIEWED PRELIMINARY CONSOLIDATED RESULTS
for the 12 months ended 31 March 2006
The reviewed consolidated results of Samrand Development Holdings Limited and
its subsidiaries ("the group") for the 12 months ended 31 March 2006 are set
out below:
ABRIDGED CONSOLIDATED BALANCE SHEET
12 months 12 months
31/03/2006 31/03/2005
(reviewed) (audited)
R"000 R"000
Assets
Non-current assets 99 256 89 403
Loan to local authority 99 256 89 403
Property, plant and equipment - -
Current assets 233 717 241 681
Developed land for resale 205 680 209 935
Accounts receivable 23 381 27 915
Bank and cash balances 4 656 3 831
Total assets 332 973 331 084
Equity and liabilities
Share capital and reserves 65 638 89 465
Non-current liabilities 9 503 8 743
Current liabilities 257 832 232 876
Accounts payable 257 832 232 876
Total equity and liabilities 332 973 331 084
Net asset value per share (cents) 48,2 65,7
Net tangible asset value per share (cents) 48,2 65,7
ABRIDGED CONSOLIDATED INCOME STATEMENT
Gross revenue 11 097 20 745
Land sales 7 595 10 657
Rental income 3 502 10 088
Loss from operations (221) (3 952)
Net financing expense (23 649) (11 282)
Loss on disposal of investment property - (13 985)
Loss before taxation (23 870) (29 219)
Taxation 43 (2 745)
Loss for year (23 827) (31 964)
Average number of shares in issue ("000) 1 361 1 361
Loss per share (cents) (17,5) (21,5)
Headline loss per share (cents) (17,5) (11,2)
ABRIDGED CONSOLIDATED CASH FLOW STATEMENT
Operating activities 9 913 23 156
Investing activities (9 813) 91 601
Financing activities 725 (105 858)
Net cash generated 825 8 899
Cash and cash equivalents
at beginning of year 3 831 (5 068)
Cash and cash equivalents at end of year 4 656 3 831
ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity at beginning of year 89 465 121 429
Impairment of loan account 3 169 -
Loss for the year (26 996) (31 964)
Equity at end of year 65 638 89 465
COMMENTARY
INCOME STATEMENT
The rental income of R3,5 million relates to the Samrand Flagship Building
situated at No. 1 Samrand Avenue, Centurion, which is the only revenue
producing building in the group. Net rentals are remitted to Nedbank Limited
("Nedbank") each month.
Land sales of R7,6 million were achieved and a portion thereof was remitted to
Nedbank by mutual agreement.
Net financing charges of R23,6 million includes interest accrued on the
disputed claim by New Republic Bank Limited (under Receivership) and interest
charged by Nedbank, less interest earned on the bridging finance loan to the
Tshwane Metropolitan Municipality.
BALANCE SHEET
The accrual for the disputed claim by New Republic Bank Limited (under
Receivership) amounts to R173 million. This matter is set down for trial in
February 2007.
The accrual of R16,4 million for the unconfirmed and disputed inter-group
loans has been retained.
The litigation pertaining to the loan by the group and arrear service charges
raised on the group by the Tshwane Metropolitan Municipality has been
suspended by mutual agreement. Negotiations between the parties continues.
LOSS PER SHARE
This is determined as follows: 31/03/2006 31/03/2005
Loss before taxation (R"000) (23 870) (29 219)
Divided by shares in issue ("000) 1 361 1 361
Loss per share (cents) (17,5) (21,5)
HEADLINE LOSS PER SHARE
This is determined as follows: 31/03/2006 31/03/2005
R"000 R"000
Loss before taxation (23 870) (29 219)
Add back: Disposal of investment property - 13 985
Headline loss (23 870) (15 234)
Divided by shares in issue ("000) 1 361 1 361
Headline loss per share (cents) (17,5) (11,2)
PROSPECTS
The group is currently considering an offer for the sale of certain land which
offer is subject to the acceptance of the directors and then the majority of
the shareholders in general meeting.
AUDIT APPROVAL
These preliminary results were reviewed by the group auditor, Meagher Moynihan
and are qualified.
QUALIFICATION
We have been unable to verify the existence of certain material loan accounts
reflected in the financial statements of the Group as at 31 March 2006.
Requests for verification of these loan accounts have not been responded to
for these companies. The loan accounts amounts to R16 445 995. Consequently,
we did not obtain all the information and explanations we considered necessary
to satisfy ourselves as to the existence and valuation of these loan accounts.
GOING CONCERN
Without qualifying our opinion, we draw attention to the fact that Samstocks
(Pty) Ltd, a subsidiary of Samrand Development Holdings Ltd, has incurred a
net loss of R497 472 (2005: R4 729 403) during the year ended 31 March 2006.
The company"s total liabilities exceeded its total assets by R17 235 773
(2005: R16 738 302). These conditions indicate the existence of a material
uncertainty which may cast significant doubt about the subsidiary"s ability to
continue as a going concern.
SIGNIFICANT UNCERTAINTY REGARDING LITIGATION
The company is the defendant in some litigation with certain major creditors.
All matters are being defended, and ongoing discussions have taken place
between the parties" respective legal representatives, where appropriate. The
ultimate outcome of the matters remains uncertain.
DIVIDENDS
No dividends have been declared or proposed for the year under review.
ACCOUNTING POLICIES
The results have been prepared in accordance with International Financial
Reporting Standards ("IFRS"). There were no changes to the figures reported
for the previous corresponding period as a result of the adoption of IFRS.
The preliminary financial results have been reviewed in terms of Rule 3.23 of
the Listings Requirements of the JSE Limited by the group"s auditors, Meagher
Moynihan. This review opinion is available for inspection at the registered
office.
For and on behalf of the board of directors
I D P Burger N B Egan
Non-Executive Chairman Executive Director
16 August 2006
Directors:
Non-executive: I D P Burger, P Berrange, M D Lamola
T W van den Heever, A D Wilkins
Executive: N B Egan
Company Secretary: N B Egan
Registered Office: Suite 7, 123 Rietfontein Road, Primrose, 1401
Postal Address: PO Box 6060, Homestead, 1412
Transfer Secretaries: Computershare Investor Services 2004
(Pty) Limited, 70 Marshall Street, Johannesburg, 2001
Sponsor: Vunani Corporate Finance
Auditors: Meagher Moynihan
Date: 16/08/2006 09:29:29 AM Produced by the JSE SENS Department
