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Delta Emd Limited - Audited Consolidated Results For The Year Ended 27 December 2016

Release Date: 28/02/2017 16:42:00      Code(s): DTA     
DELTA EMD LIMTED
Registration number: 1919/006020/06
Income tax number: 9375057719
Share code: DTA       ISIN: ZAE000132817
("DELTA EMD" or "the Group")

AUDITED CONSOLIDATED RESULTS
FOR THE YEAR ENDED 27 DECEMBER 2016

SUMMARISED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
                                                                                               Audited       Audited
                                                                                               year to       year to
                                                                                              December      December
                                                                                                  2016          2015
                                                                                     Note        R'000         R'000
Revenue                                                                                              ?        15 211
Gross profit                                                                                         ?         2 988
Interest received                                                                                9 374        13 223
Interest paid                                                                                        ?         (714)
Distribution expenses                                                                                ?       (1 465)
Administrative expenses                                                                        (1 920)       (8 389)
Income/(Expenses) related to shut down of business                                               3 784      (42 217)
Other income                                                                                     1 370         1 694
Pappas Quarry and related expenses                                                                   ?      (16 203)
Profit on sale of assets                                                                             ?         9 899
Net foreign exchange gains                                                                           ?           839
Profit/(Loss) for the year before taxation                                                      12 608      (40 345)
Taxation                                                                                         1 341       (1 545)
Profit/(Loss) for the year                                                                      13 949      (41 890)
Other comprehensive income
Reclassification adjustment relating to foreign operations disposed of in the year                   ?         4 650
Total comprehensive income/(loss) for the year                                                  13 949      (37 240)
Attributable to equity holders of parent company 
Profit/(Loss) for the year                                                                      13 949      (41 890)
Total comprehensive income/(loss) for the year                                                  13 949      (37 240)
Headline earnings/(loss) attributable to ordinary shareholders                         1        13 949      (51 789)
Number of shares in issue ('000)                                                                49 166        49 166
Weighted number of shares in issue ('000)                                                       49 166        49 166
Attributable earnings/(loss) per share (cents) 
? basic and diluted                                                                               28,4        (85,2)
Dividend per share (cents)                                                                       100,0         250,0

SUMMARISED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
                                                                                                Audited      Audited
                                                                                                year to      year to
                                                                                               December     December
                                                                                                   2016         2015
                                                                                                  R'000        R'000
ASSETS                                    
Current assets                                     
Trade and other receivables                                                                         928        2 616
Bank balances and cash                                                                          103 830      185 553
Taxation receivable                                                                                 141          100
Non-current assets held for sale                                                                 25 949       25 949
Total assets                                                                                    130 848      214 219
EQUITY AND LIABILITIES                                     
Total shareholders' funds                                                                        92 016      127 182
Current liabilities                                    
Trade and other payables                                                                         22 797       28 672
Short-term provisions                                                                            16 035       56 812
Taxation payable                                                                                      ?        1 553
Total equity and liabilities                                                                    130 848      214 219
Net asset value per share (cents)                                                                   187          259
                                    
SUMMARISED CONSOLIDATED STATEMENT OF CASH FLOWS                                     
                                                                                               Audited       Audited
                                                                                               year to       year to
                                                                                              December      December
                                                                                                  2016          2015
                                                                                                 R'000         R'000
Cash generated from/(utilised in) trading                                                        3 234      (62 753)
Movement in current and non-current provision                                                 (40 777)      (45 474)
(Increase)/Decrease in working capital                                                         (4 139)        93 607
Cash utilised in operations                                                                   (41 682)      (14 620)
Net interest received                                                                            9 374        12 509
Taxation paid                                                                                    (252)             ?
Cash outflow from operating activities                                                        (32 560)       (2 111)
Capital expenditure                                                                                  ?      (20 000)
Proceeds on sale of assets                                                                           ?       103 189
Net cash (outflow)/inflow before financing activities                                         (32 560)        81 078
Dividend paid ? ordinary                                                                      (49 163)     (122 914)
Net decrease in cash and cash equivalents                                                     (81 723)      (41 836)
Cash and cash equivalents at beginning of period                                               185 553       227 378
Currency translation of cash in foreign subsidiary                                                   ?            11
Cash and cash equivalents at end of period                                                     103 830       185 553

SUMMARISED 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 year                                                    ?              ?         (41 890)      (41 890)
Reversal of prior year foreign currency translation reserve          ?        (4 650)            4 650             ?
Dividend paid                                                        ?              ?        (122 914)     (122 914)
Prior year unclaimed dividend reversed                               ?              ?               16            16
Balance at 27 December 2015                                      4 856              ?          122 326       127 182
Profit for the year                                                  ?              ?           13 949        13 949
Dividend paid                                                        ?              ?         (49 163)      (49 163)
Prior year unclaimed dividend reversed                               ?              ?               48            48
Balance at 27 December 2016                                      4 856              ?           87 160        92 016

NOTES
                                                                                        Audited              Audited
                                                                                        year to              year to
                                                                                       December             December
                                                                                           2016                 2015
                                                                                          R'000                R'000
1.   Reconciliation between attributable earnings and headline earnings
     Attributable profit/(loss) after taxation                                           13 949             (41 890)
     Profit on disposal of fixed assets                                                       ?              (9 899)
     Headline earnings/(loss) attributable to ordinary shareholders                      13 949             (51 789)
     Attributable headline earnings/(loss) per share
     ? basic and diluted                                                                   28,4              (105,3)
2.   Basis of presentation
     The Group is domiciled in South Africa. The audited summarised consolidated financial results at and for the year ended
     27 December 2016 comprise the company and its subsidiaries (the 'Group').
     The Group's principal accounting policies are in terms of International Financial Reporting Standard (IFRS), and 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 will be wound down and 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 summarised 
     consolidated 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 consolidated summarised financial results have been prepared in accordance with the requirements of the
     JSE Limited Listings Requirements for Provisional Financial Statements, and the requirements of the Companies Act of South
     Africa applicable to summarised consolidated financial statements. The Listings Requirements require Provisional reports to
     be prepared in accordance with the framework concepts and the measurement and recognition requirements of IFRS, the SAICA Financial 
     Reporting Guides as issued by the Accounting Practices Committee, Financial Pronouncements as issued by the Financial Reporting 
     Standards Council, and as a minimum contain the information required by IAS 34: Interim Financial Reporting.

     The directors take full responsibility for the preparation of the provisional report and the financial information has been correctly
     extracted from the underlying annual financial statements.

     The auditors, Deloitte & Touche, have issued their unmodified opinion on the consolidated financial statements for the year ended
     27 December 2016. The auditor's report contains an emphasis of matter paragraph regarding the basis of preparation used to
     prepare the consolidated and separate financial statement in the current year: "Without qualifying our opinion, we draw attention
     to the basis of preparation note, Note 1.2, in the consolidated and seperate financial statements regarding the basis of preparation
     used to prepare the consolidated and separate financial statements in the current year." The audit was conducted in accordance
     with International Standards on Auditing. This provisional report has been derived from the consolidated financial statements
     and consistent in all material respects, with the consolidated financial statements. Copies of their audit reports on these summarised 
     consolidated financial statements and consolidated financial statement are available for inspection at the Company's registered office. 
     Any reference to future financial performance included in this announcement, has not been audited or reported on by the Company's auditors. 
     The auditor does not report on the commentary hereon.

     Shareholders are advised that, in order to obtain a full understanding of the nature of the auditor's engagement, they should
     obtain a copy of the auditor's report together with the accompanying financial information from the company's registered office.

                                                                                                                  2016           2015
                                                                                                                 R'000          R'000
     Operating lease commitment                                                                                      ?              8


COMMENTARY UNAUDITED
The Group realised a comprehensive income of R13.9 million for the year compared to a loss of R37.2 million for the previous year. The
main contributors to the profit were interest earned and adjustments to certain provisions.

Total interest earned during the year on cash investments was R9.4 million.

The adjustments made to provisions included R9 million to the rehabilitation provision, R3.6 million to the provision for retention incentives,
and R2.4 million to the provision made during 2015 for brokerage fees.
The Group's expenses relating to the discontinuation of its businesses totalled R11.3 million, including R3.0 million for management and
staff, R2.0 million of administration expenses, R1.5 million for general works, and R3.0 million for continuing the Nelspruit plant site's
committed electrical supply.

Net cash utilised by operations during the year totalled R41.7 million (2015: R14.6 million). Working capital increased during the year by
R4.1 million (2015: decrease of R93.6 million).

The Group's year end cash balances decreased by R81.8 million from R185.6 million to R103.8 million, reflecting net cash utilised by
operations (R41.6 million) and the payment of a dividend of 100 cents per share (R49.1 million).

PROSPECT
The only remaining non-current assets held by the Group is the plant site in Nelspruit. Efforts to market the plant site continue. The sale
of the plant site most likely will require closure of the outstanding remediation order or a transaction that otherwise addresses the Group's
outstanding obligations to remediate and monitor the site.

Efforts also continue to address outstanding matters related to the Group's former plant site in Newcastle, Australia and the former calciner
plant in Hotazel, South Africa. These matters will need to be resolved before the Company can be delisted and deregistered.
The Group intends to pay a dividend after the Nelspruit plant site is sold and thereafter to delist and deregister the Company and to pay
a final dividend.

DIRECTORATE
On 31 May 2016 Mr Collin Naicker resigned as Operational Director.

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

AVAILABILITY OF COMPLETE SET OF FINANCIAL STATEMENTS
Shareholders are advised that in order to obtain a full understanding of the nature of the auditor's engagement they should obtain a
copy of the auditor's report together with the accompanying set of consolidated financial statements from the registered office of Delta
EMD Limited.

TG Atkinson                                                           EJ Nel (Financial director)
28 February 2017

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

Transferred Secretaries
Computershare Investor Services Proprietary Limited
Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196
PO Box 61051, Marshalltown, 2107

Directors:
Independent non-executive: AC Hicks, BR Wright, L Matteucci
Non-executive: P Baijnath
Executive chairman: TG Atkinson* (Chairman) *USA
Executive: EJ Nel CA(SA) (Financial director)

Sponsor: Rand Merchant Bank (A division of FirstRand Bank Limited)   Released on 28 February 2017



Date: 28/02/2017 04:42:00 Supplied by www.sharenet.co.za                     
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