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SEKUNJALO INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1996/006093/06)
("Sekunjalo")
Now is the Time
INTERIM RESULTS
for the period ended 28 February 2001
GROUP INCOME STATEMENT
Unaudited Unaudited
6 months 6 months
to 28 Feb 2001 to 29 Feb 2000
R000's R000's
Revenue 108 489 162 823
Operating income/(loss) (2 054) 2 557
Finance (cost)/income (6 930) (3 925)
(Loss)/profit before tax (8 985) (1 368)
Income tax gain/(expense) 237 (2 543)
Loss after tax (8 747) (3 911)
Loss on disposal of subsidiaries (33 523) (4 663)
Income from associates 1 358 9 061
(Loss)/income (40 913) 487
Minority shareholders' interest 24 640 317
Net (loss)/income for the period (16 273) 804
Headline earnings
Attributable (loss)/income (16 273) 804
Goodwill written off 180 1 235
Loss/(profit) on sale of subsidiaries 33 523 11 556
Minority shareholders' interest (24 640) (8 650)
Headline earnings (7 210) 4 945
Number of shares in issue 88 688 848 88 688 848
Weighted average
number of shares in issue 43 363 000 43 363 000
Headline (loss)/earnings
per share (cents) (17) 11
(Loss)/earnings per share (cents) (38) 2
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GROUP STATEMENT OF CHANGES IN EQUITY
Non-dis Accumulated
Share tributable Profit/
Capital Reserves (loss) Total
R000's R000's R000's R000's
Balance at 31 August 1999 127 989 1 061 12 466 141 516
Fundamental error - - (1 141) (1 141)
Restated balance 127 989 1 061 11 325 140 375
Disposal of subsidiaries/associates - (1 022) (440) (1 462)
Net gains/(losses) not recognised
in the income statement 127 989 39 10 885 138 913
Net profit/(loss) from ordinary
activities - - (120 759) (120 759)
Share issue expenses (152) (152)
Balance at 31 August 2000 127 837 39 (109 874) 18 002
Net profit/(loss) from ordinary
activities (16 273) (16 273)
Increase in non-distributable
reserves 10 10
Balance at 28 February 2001 127 837 49 (126 147) 1 739
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GROUP BALANCE SHEET
Unaudited Unaudited
6 months 6 months
to 28 Feb 2001 to 29 Feb 2000
R000's R000's
ASSETS
Non-current assets 123 793 326 925
Property, plant and equipment 77 712 74 391
Goodwill and intangible assets 33 427 85 652
Investments 11 882 165 541
Loans receivable 772 1 341
Current assets 102 478 180 306
Inventories 37 341 65 221
Trade and other receivables 52 246 111 761
Bank and cash on hand 12 890 3 324
TOTAL ASSETS 226 271 507 231
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EQUITY AND LIABILITIES
Capital and reserves
Issued capital 127 837 127 975
Non-distributable reserves 49 426
(Accumulated loss)/retained income (126 147) 13 269
1 739 141 670
Non-current liabilities
Deferred taxation 3 879 4 378
Interest-bearing borrowings 94 504 77 892
Shareholders' loans (2 492) 286
Minority shareholders' interest 58 042 143 636
Current liabilities 70 599 139 369
Trade and other payables 43 661 111 623
Bank overdraft 24 037 24 556
Receiver of Revenue 2 901 3 190
TOTAL EQUITY AND LIABILITIES 226 271 507 231
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ABRIDGED CASH FLOW STATEMENT
GROUP GROUP
Unaudited Audited
6 months 12 months
to 28 Feb 2001 to 31 Aug 2000
R000's R000's
CASH FLOWS FROM OPERATING ACTIVITIES 16 221 52 876
CASH UTILISED BY INVESTING ACTIVITIES (26 439) (75 505)
CASH FLOWS FROM FINANCING ACTIVITIES 18 690 (15 865)
Net increase/(decrease) in cash
and cash equivalents 8 472 (38 494)
Cash and cash equivalents at
beginning of year (19 619) 18 875
Cash and cash equivalents at
end of year (11 147) (19 619)
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GROUP PROFILE
Sekunjalo Investments Limited is a black economic empowerment company which
was listed on the JSE Securities Exchange South Africa in May 1999. The
group has a diverse investment portfolio and manages its underlying
investments in healthcare, fishing, engineering and the information
technology sectors.
Sekunjalo Health Care, the largest health care company in South Africa, has
recently appointed Dr Vincent Msibi as executive chairman. It is one of the
largest manufacturers of medical products on the African continent and
provides the health care industry with a number of branded goods. These
include pharmaceuticals, rapid diagnostics, medical consumables and capital
equipment. The Group's health services component includes health information
systems, medical logistics and distribution.
Premier Fishing, under the leadership of Mohamed Kajee, is one of South
Africa's largest and longest established fishing companies. Its businesses
include a large fish processing factory in Saldanha Bay. It has built a
business competitive in the lobster, squid and pelagic markets.
Sekunjalo's investment in the engineering and information technology sectors
is further testimony to the commitment of Sekunjalo to local manufacturing
and job creation.
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FINANCIAL COMMENTARY
The results achieved are in keeping with management targets and budgets for
the first half of the financial year. The results are not comparable to the
previous year since those interims included an investment in LeisureNet,
which went into liquidation.
The seasonal fluctuations associated with both the health care and fishing
industries have resulted in an operating loss for this 6 month period in
keeping with management's expectations. However, management is confident of
achieving performance targets and a turnaround to profitability for the full
financial year.
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OPERATIONAL REVIEW AND PROSPECTS
The Group has been substantially restructured and has adopted a sustainable
growth strategy, which will enable it to emerge as one of the top black
corporates in the next three years.
Sekunjalo Health Care has disposed of businesses which were considered non-
core and did not fit into the strategic repositioning of the group. This has
resulted in operating-losses for the current reporting period. The disposal
of these subsidiaries, despite the reflected short term loss, will enable
the group to deliver enhanced earnings in future years. As a consequence of
its empowerment credentials and ownership of branded health care products,
Sekunjalo Health Care will be a significant contributor to group earnings.
The export of the diagnostic product range continues to generate foreign
currency. The appointment of senior executives with specialist industry
experience has strengthened the management teams of operating entities.
Premier Fishing, having undertaken a number of strategic and restructuring
initiatives, is set to contribute substantially to the Group's results for
the second half of the financial year. The fortified management team, as
well as the stability in the industry, has resulted in Premier Fishing
performing according to expectations.
Sekunjalo Investment Holdings (Pty) Limited, the controlling shareholder of
Sekunjalo Investments Limited, is currently concluding a transaction with a
broad-based black economic empowerment consortium to recapitalise the
Sekunjalo Group. The company will make further announcements in this regard
in the near future.
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STRATE
In order to assist shareholders and to facilitate an orderly transition
ahead of the company's conversion to STRATE (Share Transactions Totally
Electronic), scheduled for commencement on 28 May 2001, the directors have
considered it prudent to appoint Mercantile Bank as a CSDP (Central
Securities Depository Participant) to assist issuers and shareholders to
validate and dematerialise their listed shares prior to their conversion to
STRATE. The first day of trade for electronic settlement is the 18 June 2001
while the first electronic settlement will take place on the 25 June 2001.
Documentation setting out the details of the programme has been posted to
shareholders on Monday 21 May 2001.
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BY ORDER OF THE BOARD
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Adv. WA MGOQI Dr MI SURVE
Chairperson Chief Executive Officer
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DIRECTORS
Adv.WA Mgoqi (Chairperson) , *Dr MI Surve (Chief Executive Officer) *MY
Kajee CA(SA),
RA Seria, A Snyders, K Patel, D Case, Z Kota
* Executive
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Registered Address Transfer Secretary
70 Rosmead Avenue Computershare Services Limited
Kenilworth Edura House, 41 Fox Street
7708 Johannesburg 2001
