| Wed 11 Oct 2006, 17:00 | | Blue Financial Services Limited - Abridged Prelist |
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JSE
BFS
Blue Financial Services Limited - Abridged Prelisting Statement
This abridged prelisting statement is not an invitation to the public to
subscribe for shares in Blue but issued in compliance with the Listings
Requirements of the JSE for information purposes only. The information in
this abridged prelisting statement has been extracted from a full
prelisting statement issued by Blue on 11 October 2006 ("the detailed
prelisting statement"), which is available as set out in paragraph 7. At
the date of listing the authorised share capital of Blue comprises 1 000
000 000 ordinary shares with a par value of 0.0001 cents each, of which 320
000 000 ordinary shares are in issue.
BLUE FINANCIAL SERVICES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1996/006595/06)
(previously GFS Konstruksie Oranje Vrystaat (Proprietary) Limited)
(JSE Code: BFS & ISIN: ZAE000083655)
("BLUE" or "the Company")
ABRIDGED PRELISTING STATEMENT
Listing of Blue ordinary shares ("shares") on the JSE Limited ("the JSE").
1. INCORPORATION AND HISTORY
Blue was incorporated in Pretoria under the name JR 17 Investments
(Proprietary) Limited on 28 May 1996, thereafter the name was changed
to G.F.S. Konstruksie Oranje Vrystaat (Proprietary) Limited on 2 July
1996 and thereafter to Blue Financial Services (Proprietary) Limited
on 23 May 2005. The Company was converted to a public company, Blue
Financial Services Limited, on 30 November 2005. On 1 March 2006,
Blue acquired all the underlying subsidiaries.
2. NATURE OF THE COMPANY"S BUSINESS AND INDUSTRY
BLUE is a South African based company with operations in several
African countries which focuses primarily on providing ethical,
innovative and affordable credit solutions to people within Africa.
As a financial services enterprise it partners with employers
(governments, parastatals and businesses) to provide their employees
with a range of financial services, including personal loans,
mortgages, home-improvement loans, insurance offerings and
telecommunications packages. These partnerships enable BLUE to offer
the above solutions to its client base at affordable rates while
limiting its risk in doing so.
BLUE targets creditworthy employees below LSM7 (households with an
average income of R5 495 and less) standards, a sector that remains
largely excluded from main stream credit markets.
Currently operating in South Africa, Botswana, Zambia, Tanzania and
Uganda. The company plans to expand its business operations to Kenya
and Cameroon within the next twelve months. Other African countries,
have also been targeted as part of the next phase of its roll-out
plan.
3. PROSPECTS
Since its expansion into Botswana, the Company has increased its
turnover to R18 million for the financial year ended in February 2004.
The Company"s turnover of R40 million for the year that ended in
February 2005 showed substantial growth notwithstanding the fact that
growth was restricted as a result of limited access to capital. Due
to the cost incurred through its expansion strategy, the Company"s
profit growth was limited in relation to its turnover growth. The
infrastructural investment laid the foundation for the Company"s
planned future growth.
The Company"s turnover increased to more than R60 million for the year
ended February 2006, with the increase in turnover being attributable
to the expansion of its network into Zambia.
The key drivers to Blue"s growth will be a rollout into selected
countries in Africa, as well as the completion of its capital raising
strategy. A listing on AltX will improve its ability to secure the
first phase funding, which will allow it to increase its book for the
African leg of its operations. The successful execution of the
capital raising strategy will allow the Company to achieve its
projected turnover growth over the next three years.
4. SUMMARY OF HISTORICAL AND FORECAST INCOME STATEMENTS
The forecast financial information, reflected below, is contained in
the detail prelisting statement, and has been reviewed and reported
upon by the reporting accountants. Such report is contained in the
detailed prelisting statement and is available for inspection.
Pro forma profit history and forecast
Combined Combined Combined
Audited Audited Audited Forecast Forecast
February February February February February
2004 2005 2006 2007 2008
R"000 R"000 R"000 R"000 R"000
Income 20 417 40 965 60 942 175275 340 761
Interest
income - - - - 1 768
pension and
provident
loans
Interest
income salary 13 735 29 917 46 368 143 586 288 482
advance
Interest
income home 173 3 158 9 299 14 057 26 886
improvement
Interest
income long - - - - 4 966
term loans
Interest - - - - 964
income home
loans
Interest 2 600 910
other
Origination - 811 591 2 400 3 000
home loans
Other income 6 403 6 363 4 286 11 603 11 603
Insurance 106 677 382 1 016 2 168
income
Rental income - 40 15 13 13
Cost of sales 7 314 16 719 21 822 60 193 161 074
Gross profit 13 103 24 246 39 120 104 060 179 686
Operating 10 634 18 799 28 649 73 888 107 868
expenses
Profit before 2 429 5 447 10 471 41 194 71 818
taxation
Taxation 382 1 433 3 333 12 379 21 461
Profit after 2 048 4 014 7 138 28 816 50 357
taxation
Preference - - - 3 021 4 4400
dividend
2 048 4 014 7 138 25 795 45 916
Issued shares 300 000 320 000 320 000
(`000)
Weighted 300 000 311 667 320 000
average
shares in
issue (`000)
Fully diluted 300 000 379 608 387 941
weighted
average
shares in
issue (`000)
Earnings per 2.38 8.28 14.35
share in
cents
Fully diluted 2.38 6.79 11.84
earnings per
share in
cents
Headline
earnings per 2.38 8.28 14.35
share in
cents
Fully diluted
headline 2.38 6.79 11.84
earnings per
share in
cents
5. DIRECTORS, COMPANY SECRETARY AND REGISTERED OFFICE
5.1 Full names, nationalities, ages, business addresses and
occupations of the board of directors of Blue:
Director Age Occupation Business address
Dave van 33 Chief 34 Bouvardia
Niekerk Executive Avenue, Lynnwood
Officer Ridge, 0001
Riaan Swart 35 Chief 34 Bouvardia
Operating Avenue, Lynnwood
Officer Ridge, 0001
Wessel Smit 38 Executive 34 Bouvardia
Director Avenue, Lynnwood
Ridge, 0001
Johannes 57 Financial 34 Bouvardia
Coetzee Director Avenue, Lynnwood
Ridge, 0001
Mpumela 50 Independent 10 Cradock
Sondiyasi* Non Avenue, Sanlam
Executive Arena, Rosebank
Director
Ceasar 33 Independent Plot 441 - 7A,
Siwale* Non Kasue Road,
Executive Roma, Lusaka,
Director Zambia
* Non Executive
5.2 Company secretary and registered office are:
J Coetzee (BComm, HBA, MBA)
34 Bouvardia Avenue
Lynwood Ridge
Pretoria, 0001
(PO Box 72041, Lynwood Ridge, 0040)
6. LISTING ON THE JSE
The JSE has granted Blue a listing in respect of 320 000 000 ordinary
shares on AltX under the abbreviated name "Blue", share code "BFS" and
ISIN ZAE000083655, with effect from the commencement of business on
Thursday, 12 October 2006,
7. COPIES OF THE PRELISTING STATEMENT
* Copies of the prelisting statement, may be obtained during normal
business hours on weekdays during the offer period, from:
* Blue Financial Services Limited, BLUE Building, 34 Bouvardia
Street, Lynnwood Ridge, Pretoria;
* Exchange Sponsors (Proprietary) Limited, Building Three, First
Floor, Commerce Square, 39 Rivonia Road, Sandhurst, Sandton; and
Marriott Corporate Property Bank Limited, Building Three, First Floor,
Commerce Square, 39 Rivonia Road, Sandhurst, Sandton.
Johannesburg
12 October 2006
www.blue.co.za
Merchant Bank Designated Advisor
Marriott Corporate Property Exchange Sponsors (Pty)
Bank Ltd
Registration Attorneys Auditors and reporting
accountants
Piet Van Zyl PKF
Warning: The listing of ordinary shares in the company is on AltX.
Investors are advised of the risks of investing in a company listed on
AltX. Investors are advised that the JSE does not guarantee the viability
or the success of a company listed on AltX. In terms of the Listings
Requirements, the company is obliged to appoint and retain a Designated
Adviser, which is required to, inter alia, attend all board meetings held
by the company to ensure that all the Listings Requirements and applicable
regulations are complied with, approve the Financial Director of the
company and guide the company in a competent, professional and impartial
manner. If the company fails to retain a Designated Adviser, it must make
arrangements to appoint a new Designated Adviser within 10 business days,
failing which the company faces suspension of trading of its securities.
If a Designated Adviser is not appointed within 30 days of such suspension,
the company faces the termination of its listing without the prospect of an
appropriate offer to minority shareholders.
Date: 11/10/2006 05:00:39 PM Produced by the JSE SENS Department
