| Fri 22 Sep 2006, 14:27 | | African Dawn Capital Limited - Interim Results for |
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ADW
ADW
African Dawn Capital Limited - Interim Results for the period ended
31 August 2006
African Dawn Capital Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 1998/020520/06)
Share Code: ADW
ISIN Code: ZAE000060703
Reviewed Reviewed Audited
31 Aug 31 Aug 28 Feb 2006
2006 2005 R"000
R"000 R"000
ASSETS
Non current assets 46 818 18 980 34 226
Fixed assets 4 174 161 2 029
Financial receivables 34 917 16 950 27 163
Goodwill 7 727 554 5 034
Deferred income tax assets - 1 315 -
Current assets 27 452 12 970 20 214
Financial receivables 17 615 8 445 13 388
Trade and other receivables 4 128 3 125 5 492
Cash and cash equivalents 5 709 1 400 1 334
Total assets 74 270 31 950 54 440
EQUITY AND LIABILITIES
Shareholders Funds 53 859 10 293 30 804
Share capital and premium 45 509 13 385 29 927
Accumulated profit/(loss) 8 350 (3 092) 877
Non current liabilities 15 281 17 333 14 756
Borrowings 15 281 17 333 14 756
Current liabilities 5 130 4 324 8 879
Borrowings 2 891 4 299 5 283
Trade and other payables 383 25 2 219
Taxation 1 856 - 1 377
Total equity and liabilities 74 270 31 950 54 440
Shares in issue at period end 120 639 56 267 91 730
(`000)
Net asset value per share (cents) 44,64 18,29 30,51
Reviewed Reviewed Audited
INCOME STATEMENTS 31 Aug 31 Aug 28 Feb 2006
2006 2005 R"000
R"000 R"000
Revenue 17 972 5 154 19 638
Operating expenses (8 013) (1 250) (12 151)
Profit before finance costs and 9 959 3 904 7 487
depreciation
Finance costs (874) (1 155) (581)
Depreciation and amortisation (256) (21) (272)
Profit before taxation 8 829 2 728 6 634
Taxation (479) (658) (596)
Net profit for the period 8 350 2 070 6 038
Headline earnings 8 350 2 070 6 038
Basic and diluted earnings per 7,2 3,7 9,4
share (cents)
Weighted average number of shares 116 706 56 267 64 465
(`000)
Headline earnings per share 7,2 3,7 9,4
(cents)
Reviewed Audited Reviewed
CASH FLOW STATEMENTS 31 Aug 31 Aug 28 Feb
2006 2005 2006
R"000 R"000 R"000
Cash flows from operating activities 8 110 (1 595) 8 076
Cash flows from investing activities (1 867) (20) (4 285)
Cash flows from financing activities (1 868) 1 171 (3 761)
Net movement in cash and cash 4 375 (444) (510)
equivalents
Cash and cash equivalents at 1 334 1 844 1 844
beginning of year
Cash and cash equivalents at end of 5 709 1 400 1 334
year
STATEMENT OF CHANGES IN Share Share Acc Total
EQUITY Capital Premium (Loss)/
Profit
R"000 R"000 R"000 R"000
Balance as at 28 562 12 823 (5 162) 8 223
February 2005
Net profit for the - - 6 038 6 038
period
Issue of share capital 355 16 188 - 16 543
Balance as at 28 917 29 011 876 30 804
February 2006
Net profit for the - - 8,329 8,329
period
Issue of share capital 292 15,290 15,582
Balance as at 31 August 1,209 44,301 9,205 54,714
2006
COMMENTS
The Board of Directors is pleased to present the reviewed interim financial
results of the Group for the six months ended 31 August 2006.
NATURE OF THE BUSINESS
African Dawn was listed on the Alternative Exchange during April 2004 and has
four operating divisions namely, home improvement financing, property transfer
funding, estate agency services and education and training.
HIGHLIGHTS
The group generated R8,3 million (2005: R2,1m) after tax profits for the six
months under review.
Net asset value per share increased by 144% from 31 August 2005 to 31 August
2006.
Earnings per share increased by 95% from 31 August 2005 to 31 August 2006.
BUSINESS REVIEW AND PROSPECTS
African Dawn has continued to generate exponential growth in earnings for the 6
months under review. The current range of products will continue to have a
positive impact on earnings.
FINANCIAL REVIEW
Revenue increased as a result of the consolidation of Bhenka Financial Services
("Bhenka") as well as property transfer funding income, which collectively
contributed R9,8m. Bhenka contributed to the increase in operating expenses,
due to the labour intensive nature of that business.
A further issue of shares for cash (which resulted in R11m additional cash
resources) as well as the second share-payment to Bhenka, resulted in an
increase in share capital and premium of R29m since 28 February 2006. The
proceeds of the issues for cash were utilised to increase the property transfer
funding advances books (financial receivables) by R12m.
Goodwill increased by R2.7m as a result of the second payment to Bhenka.
TRANSITIONAL ADJUSTMENTS IN TERMS OF IFRS
Comparative figures have been restated to reflect the transition from South
African Statements of Generally Accepted Accounting Practice to International
Financial Reporting Standards. The adjustments represents :
The reclassification of financial instruments in accordance with IAS 32 :
Financial instruments : Disclosure and Presentation and IAS39 : Financial
instruments : Recognition and Measurement. These adjustments had no effect on
the income statement and the effect on the balance sheet has been disclosed in
the transitional reconciliations presented below.
The adoption of the new interpretation of IAS17 (AC 105) - Operating leases, to
include fixed rental commitments. The effect of the new interpretation of
operating leases was found to be immaterial.
INTERNATIONAL FINANCIAL REPORTING STANDARDS AND COMPANIES ACT REQUIREMENTS
The reviewed interim financial statements were prepared in compliance with
International Financial Reporting Standards (IFRS) as well as the Companies Act.
CORPORATE GOVERNANCE
The group subscribes to the principles of, and implements where possible, the
recommendations of the King II Code on Corporate Governance.
DIVIDENDS
The group will continue to retain and utilise cash generated to maximise
returns. The Board reviews the dividend policy annually.
REVIEWED OPINION
The results have been reviewed by Van Dyk Rossouw Inc. The unqualified review
report is available for inspection at the company"s registered office.
For and on behalf of the Board
JM VAN TONDER CM VAN NIEUWKERK
Chief Executive Officer Financial Director
22 September 2006
Registered office: 1st Floor, Dunkeld Place, 12 North Road, Dunkeld West
Transfer secretaries: Computershare Limited, Ground Floor, 70 Marshall Street,
Johannesburg
Directors: I Mophatlane (Chairman),* SW de Bruyn*, C de Wet Vivier*, CJ Odams ,
MN Ramasehla , CM Van Nieuwkerk, JM Van Tonder
*Non-executive
Date: 22/09/2006 02:27:20 PM Produced by the JSE SENS Department
