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Delta Emd Limited - Unaudited Condensed Results For The Six Months Ended 27 June 2016

Release Date: 12/09/2016 07:05:00      Code(s): DTA     
DELTA EMD LIMITED 
Registration number: 1919/006020/06
Income tax number: 9375057719
Share code: DTA      ISIN: ZAE000132817
("Delta EMD" or "the Group")

UNAUDITED CONDENSED RESULTS
FOR THE SIX MONTHS ENDED 27 JUNE 2016

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
                                                                                  Unaudited        Unaudited       Audited
                                                                              six months to    six months to       year to
                                                                                       June             June      December
                                                                                       2016             2015          2015
                                                                       Note           R'000            R'000         R'000

Revenue                                                                                   ?           15 211        15 211
Gross profit                                                                              ?            2 988         2 988
Interest received                                                                     4 638            6 400        13 223
Interest paid                                                                             ?                ?         (714)
Distribution expenses                                                                     ?          (1 865)       (1 465)
Administrative expenses                                                             (1 202)          (8 946)       (8 389)
Expenses related to discontinuation of business                                     (7 151)          (8 601)      (42 217)
Other income                                                                            486               85         1 694
Pappas Quarry and related expenses                                                        ?            (813)      (16 203)
Profit on sale of assets                                                                  ?              896         9 899
Net foreign exchange gains                                                                ?              966           839

(Loss) before taxation                                                              (3 229)          (8 890)      (40 345)
Taxation                                                                                  ?                ?       (1 545)

(Loss) for the year                                                                 (3 229)          (8 890)      (41 890)

Other comprehensive income
Reclassification adjustments relating to foreign operations disposed
of in the year                                                                            ?            4 650         4 650

Total comprehensive (loss) for the year                                             (3 229)          (4 240)      (37 240)

Attributable to equity holders of parent company
(Loss) for the year                                                                 (3 229)          (8 890)      (41 890)
Total comprehensive (loss) for the year                                             (3 229)          (4 240)      (37 240)

Headline (loss) attributable to ordinary shareholders                    1          (3 229)          (9 535)      (51 789)

Number of shares and weighted number of shares in issue ('000)                       49 166           49 166        49 166
Attributable (loss) per share (cents)
? basic and diluted                                                                   (6.6)           (18.0)        (85.2)
Dividend per share (cents)                                                            100.0            250.0         250.0

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
                                                                                  Unaudited        Unaudited       Audited
                                                                              six months to    six months to       year to
                                                                                       June             June      December
                                                                                       2016             2015          2015
                                                                                      R'000            R'000         R'000
ASSETS
Current assets
? Inventories                                                                             ?            2 403             ?
? Trade and other receivables                                                           789            8 470         2 616
? Taxation receivable                                                                   101              101           101
? Bank balances and cash                                                            111 888          241 171       185 553
Non-current assets held for sale                                                     25 949           11 810        25 949

Total assets                                                                        138 727          263 955       214 219

EQUITY AND LIABILITIES
Total shareholders' funds                                                            74 789          160 166       127 182
Non-current liabilities
Non-current provisions                                                                    ?            6 168             ?
Current liabilities
? Trade and other payables                                                           27 971            5 549        28 672
? Short-term provisions                                                              34 413           92 064        56 812
? Taxation payable                                                                    1 554                8         1 553

Total equity and liabilities                                                        138 727          263 955       214 219

Net asset value per share (cents)                                                       152              326           259

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                                                                                  Unaudited        Unaudited       Audited
                                                                              six months to    six months to       year to
                                                                                       June             June      December
                                                                                       2016             2015          2015
                                                                                      R'000            R'000         R'000

Cash utilised by trading                                                            (7 867)         (20 077)      (62 753)
Movement in current and non-current provisions                                     (22 398)                ?      (45 474)
Decrease in working capital                                                           1 126           62 230        93 607

Cash (utilised)/generated by operations                                            (29 139)           42 153      (14 620)
Net interest received                                                                 4 638            6 400        12 509

Cash (outflow)/inflow from operating activities                                    (24 501)           48 553       (2 111)
Capital expenditure                                                                       ?                ?      (20 000)
Proceeds on sale of assets                                                                ?           88 163       103 189

Net cash (outflow)/inflow before financing activities                              (24 501)          136 716        81 078
Dividends paid ? ordinary                                                          (49 164)        (122 914)     (122 914)

Net (decrease)/increase in cash and cash equivalents                               (73 665)           13 802      (41 836)
Cash and cash equivalents at beginning of period                                    185 553          227 378       227 378
Currency translation of cash in foreign subsidiary                                        ?              (9)            11

Cash and cash equivalents at end of period                                          111 888          241 171       185 553

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
                                                                       Share        Foreign
                                                                     capital       currency
                                                                         and    translation       Accumulated
                                                                     premium        reserve            profit        Total
                                                                       R'000          R'000             R'000        R'000

Balance at 27 December 2014                                            4 856          4 650           282 464      291 970
(Loss) for the period                                                      ?              ?           (8 890)      (8 890)
Reclassification adjustment relating to foreign operations
disposed of in the year                                                    ?        (4 650)             4 650            ?
Dividend paid                                                              ?              ?         (122 914)    (122 914)

Balance at 27 June 2015                                                4 856              ?           155 310      160 166

(Loss) for the period                                                      ?              ?          (33 000)     (33 000)
Prior year unclaimed dividend reversed                                     ?              ?                16           16
Balance at 27 December 2015                                            4 856              ?           122 326      127 182
(Loss) for the period                                                      ?              ?           (3 229)      (3 229)
Dividend paid                                                              ?              ?          (49 164)     (49 164)

Balance at 27 June 2016                                                4 856              ?            69 933       74 789

NOTES
                                                                                  Unaudited         Unaudited      Audited
                                                                              six months to     six months to      year to
                                                                                       June              June     December
                                                                                       2016              2015         2015
                                                                                      R'000             R'000        R'000
1.    Reconciliation between attributable loss and headline loss
      Attributable (loss) after taxation                                            (3 229)           (8 890)     (41 890)
      Profit on sale of assets                                                            ?             (896)      (9 899)
      Taxation effect raised                                                              ?               251            ?

      Headline (loss) attributable to ordinary shareholders                         (3 229)           (9 535)     (51 789)

      Attributable headline (loss) per share in cents
      ? basic and diluted                                                             (6,6)            (19,4)      (105,3)

2.    Basis of presentation
      The Group is domiciled in South Africa. The unaudited condensed consolidated financial results at and for the period ended
      27 June 2016 comprise the company and its subsidiaries (the "Group").

      The Group's principal accounting policies have been applied consistently over the current and prior financial years.
      
      On 5 March 2014, the company announced that the board of directors had taken the decision, subject to approval by the
      company's shareholders, to discontinue the operations in a phased and orderly manner during 2014 and to realise value for
      the company's assets during 2014 and 2015. The decision was approved at the Annual General Meeting of the company
      held on 9 May 2014. The company has been wound down and will be deregistered in due course. The above information
      highlights that the going-concern principle is not applicable in the preparation of the company's financial statements. When the
      company ceases trading, the directors are of the opinion that the company will be in a position to discharge all of its liabilities,
      due to the company's cash resources and to recover the assets at their carrying amounts. The effect, if any, of preparing the,
      financial statements, other than on the going-concern basis will be negligible. Consequently the financial statements have
      been prepared on a basis consistent with IFRS which among other things, requires writing assets down to their recoverable
      amounts. It also requires recognising a liability for contractual commitments that may have become onerous as a consequence
      of the decision to cease trading.

      The Group's condensed consolidated financial results have been prepared in accordance with the requirements of the JSE
      Limited Listings Requirements for interim reports, and the requirements of the Companies Act applicable to condensed financial
      statements. The Listings Requirements require interim reports to be prepared in accordance with the framework concepts
      and the measurement and recognition requirements of International Financial Reporting Standards (IFRS), the SAICA Financial
      Reporting Guidelines as issued by the Accounting Practices Committee, Financial Pronouncements as issued by the Financial
      Reporting Standards Council as well as, the information required by IAS 34 Interim Financial Reporting.

COMMENTARY ? UNAUDITED
The Group's results for the period ended 27 June 2016 reflect the actions taken toward the discontinuation of the Group's business.

Losses for the period totalled R3.2 million (2015: R8.9 million), and losses per share totalled 6.6 cents (2015: 18.0 cents). Headline losses per share
for the period were 6.6 cents (2015: 19.4 cents). Included in these losses were expenses relating to the discontinuation of the business which totalled
R7.1 million for the period (2015: R8.6 million).

No proceeds from sales of assets were realised during the period (2015: R88.2 million). Net cash utilised by operations during the period totalled
R29.1 million (2015: net cash generated by operations of R42.2 million).

The Group's cash balances decreased during the period by R73.7 million and totalled R111.9 million at 27 June 2016 (Dec 2015: R185.6 million). The
Group's cash outflow during the period included the payment of a R1 per share dividend which amounted to a total of R49.2 million.

The assets classified at period-end as non-current assets held for sale include the Nelspruit plant site parcels owned by the Company and the parcel
historically leased by the Company and during the period purchased by the Company. Trade creditors at period-end included the R20.0 million to
be paid after period-end for the parcel purchased.

PROSPECTS
The salvage and sale of the plant and equipment formerly located at the Group's Nelspruit plant site is complete and payment has been received
for those assets.

During December 2015, the Company received a definitive remediation order for the Nelspruit plant site from the Department of Environmental
Affairs, and in June 2016 a report on the ongoing remediation was submitted to the Department of Environmental Affairs.

Efforts to market and sell the Nelspruit plant site continue.

Following the sale of the Nelspruit plant site the Group intends to delist and deregister the Company and make distributions to shareholders.

DIRECTORATE
Mr Collin Naicker resigned from the board on 3 June 2016.

PREPARER OF FINANCIAL STATEMENTS
These summarised consolidated financial statements have been prepared by EJ Nel CA(SA) in her capacity as financial director.

TG Atkinson         EJ Nel
(Chairman)         (Financial Director)

Johannesburg
12 September 2016

Registered office
15 Heyneke Street, Industrial Site, Nelspruit, 1200

Transfer Secretaries
Computershare Investor Services Proprietary Limited
70 Marshall Street, Johannesburg, 2001, PO Box 61051, Marshalltown, 2107

Directors
Independent non-executive: AC Hicks, L Matteucci, BR Wright
Non-executive: P Baijnath
Executive: TG Atkinson (Chairman), EJ Nel CA(SA) (Financial Director)
Sponsor: Rand Merchant Bank (A Division of FirstRand Bank Limited)
Date: 12/09/2016 07:05:00 Supplied by www.sharenet.co.za                     
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