Wrap Text
SKJ - Sekunjalo Investments Limited - Press release: Sekunjalo results affected
by fishing seasonality
SEKUNJALO INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1996/006093/06
Share code: SKJ ISIN: ZAE000017893
("SIL")
PRESS RELEASE: Sekunjalo Results affected by Fishing Seasonality
Sekunjalo Investments Limited (Sekunjalo) today reported a loss in headline
earnings for the period ended 28 February 2008, in line with expectations due
largely to the seasonality of its fishing business.
Sekunjalo, South Africa`s top BEE company in 2006, is comprised of a number of
manufacturing and resource-driven investments in the following sectors:
Industrial (primarily fishing) and Technology and Innovation-Driven investments
in Healthcare and Pharmaceuticals, Information Technology and Communication,
Financial Services, Aquaculture, Biotechnology and Enterprise Development.
Sekunjalo has also received The Business Map Foundation Top BEE Partnership
Award for 2007, as well as the Financial Mail Top Empowerment Companies Award
for 2008, for the top-ranked listed Company in the General Industrials sector of
the JSE.
Compared to the same period in 2007, reporting revenue is up 22,5% to R229,7
million from R187,4 million, but has incurred an operating loss of R43,5 million
compared to an operating profit of R12,1 million last year. The headline loss
per share is reflected at 4,90 cents compared to headline earnings of 2,91 cents
per share as at 28 February 2007. In addition, due to a change in
classification of its investment in Biotechnology, the interim results exclude
fair value adjustments.
According to Mo Kajee, Sekunjalo CEO, it should however be noted that
historically, the Group has consistently performed well in the second half of
the financial year, due to the cyclical nature of its businesses. `In line with
this trend, the Group expects a much stronger performance in the second half of
the financial year,` said Kajee.
The loss in earnings by subsidiary, Premier Fishing, is due largely to the poor
catches in the pelagic sector, high fuel prices, depressed prices for fishmeal
globally and poor west coast rock lobster catches. Despite the poor catches of
west coast rock lobster, however, it is anticipated that catches will improve
significantly in the next few months. In fact, south coast rock lobster catches
have been good and the favourable rand/dollar exchange rate will further boost
revenues for the second half of the year.
In addition, with its recent acquisition of the Marine Growers Abalone Farm in
the Eastern Cape, Premier will continue to become a major contributor to the
sustainability of South Africa`s abalone resource.
Sekunjalo Health Care (SHC) and its associated health care companies, continue
to supply both the private and the public sectors. A strategy embarked upon at
the end of last year has enabled this division to engender significant cost-
cutting measures, with a view to managing the Pharmaceuticals and Diagnostics
businesses to break even by the 2008 financial year. Health System
Technologies, the IT arm of SHC, continues to operate profitably and has
recently won a tender by the National Health Laboratory System (NHLS), which
will involve rolling out systems to public sector laboratories nationally.
The Group`s ICT businesses, known as Sekunjalo TSG (Technical Solutions Group),
is a collaboration of businesses focused on software development and
implementation, as well as the provision of business intelligence solutions.
Sekunjalo TSG has performed well during the said period and is currently well
positioned to deliver full-year targeted results. Plans to list Sekunjalo TSG
are currently under review and the Group will make an announcement in this
regard shortly.
With regard to the Group`s financial services interest, which is held through
its wholly-owned subsidiary, Sekunjalo Capital (Pty) Ltd, an integrated
financial services platform has been developed through extensive software
development. This platform is able to deal with the complexity of distributing
financial services products and has, in fact, resulted in the business being
significantly populated.
Sekunjalo has a 49.9% investment in Bioclones, a leading South African
biotechnology company that develops, manufactures and markets biotech products
for human pharmaceutical use. Bioclones manufactures Erythropoietin (EPO) at
its manufacturing plant in Pretoria. EPO is the leading biopharmaceutical
product by sales revenues with a market size in excess of $12 billion.
Ribotech, a Bioclones subsidiary based in Cape Town, is in the early stages of
developing a facility for the manufacture of G-CSF, a partner product to
Repotin, used in the treatment of Neutropaenia.
Dependent on market conditions and liquidity, Bioclones is currently evaluating
the feasibility of listing its interests on either the London or New York Stock
Exchange in 2009.
`As a firmly established and pre-eminent Black Economic Empowerment (BEE) Group
and its ninth year of listing, the Directors expect a strong second half
performance from the Fishing, IT and Financial Services businesses.
Furthermore, the Group will continue with its strategy of migrating to an
investment holding company and unlocking value through separate listings of its
IT and Biotechnology divisions,` said Kajee.
Ends
Prepared by: Kay Herman
Sekunjalo Investments Limited
Tel (021) 702 7700
Mobile 073 160 3314
Contact Person: Mohamed (Mo) Kajee
Chief Executive Officer
Sekunjalo Investments Limited
Tel (021) 702 7700
Mobile 082 461 6580
Date: 13/05/2008 17:39:02 Supplied by www.sharenet.co.za
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