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Unaudited Interim Results for the Six Months Ended 31 August 2014
LABAT AFRICA LIMITED
Incorporated in the Republic of South Africa
(Registration number 1986/001616/06)
JSE code: LAB ISIN: ZAE000018354
(“Labat” or “the company”)
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2014
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION
Unaudited Reviewed Audited
6 months 6 months 12 months
31 August 2014 31 August 2013 28 February 2014
Figures in Rand (‘000) R'000 R'000 R'000
ASSETS
Property, plant and equipment 143 26 583 51
Deferred taxation 1 331 - -
Non-current assets 1 474 26 583 51
Other financial assets 10 10 10
Inventories 3 033 4 331 4 106
Trade and other receivables 2 548 1 075 688
Cash and cash equivalents 16 303 1 718 1 048
Current assets 21 894 7 134 5 852
Non-current Assets held for sale - - 20 672
Total assets 23 368 33 716 26 575
EQUITY AND LIABILITIES
Share capital and reserves (969) 610 (8 582)
Share Capital 2 110 1 540 1 540
Share premium 57 735 49 764 49 764
Non Distributable Reserves (0) 12 926 5 656
Distributable Reserves (60 814) (63 621) (65 542)
Deferred taxation 73 4 554 -
Non-current liabilities 73 4 554 -
Trade and other payables 3 949 3 169 4 075
Loans from Directors 2 078 8 366 9 540
Provisions 5 057 5 578 8 263
South African Revenue Services 13 180 11 439 11 035
Bank Overdraft - - 29
Current liabilities 24 264 28 553 32 942
Liabilities of disposal group 2 213
Total equity and liabilities 23 368 33 716 26573
Number of shares in issue (000?) 259 148 202 212 202 212
Total Net (liability) /asset value per share (cents) (0.4) 0.3 (4.24)
CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
6 months 6 months 12 months
31 August 2014 31 August 2013 28 February 2014
R'000 R'000 R'000
Revenue 8 173 5 217 9 942
Cost of Sales (2 237) (1 869) (3 537)
Gross Profit 5 936 3 347 6 405
Other Income 61 - 187
Operating Expenses (4 422) (4 868) (12 152)
- - -
Operating Profit 1 575 (1 521) (5 560)
Interest received 67 2 12
Finance Costs - - (474)
Reversal of impairment -
Loss/profit before taxation 1 642 (1 519) (6 022)
Taxation
Profit/ loss from continuing operations 1 642 (1 519) (6 022)
Profit/(loss) from discontinued operations 789 - 2 414
Taxation - discontinued income 2 612 - -
Profit/(Loss) for the year 5 043 (1 519) (3 608)
Other comprehensive income - - (7 101)
Total comprehensive profit/(Loss) for the period 5 043 (1 519) (10 709)
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOW
Unaudited Unaudited Audited
Figures in rand (‘000) 6 months 6 months 12 months
31 August 2014 31 August 2013 29 February 2014
Net flow from operating activities (5920) (1 185) (3 003)
-continuing 1241 (1 185) (1 652)
-discontinuing (7 162) - (1 351)
Net flow from investing activities 20 242 1 322 11
-continuing 1 252 1 322 11
-discontinuing 18 990 - -
Net flow from financing activities 822 750 1 832
-continuing 822 750 1 832
-discontinuing - - -
Net (decrease)/increase in cash 15 144 888 (1 160)
-continuing 3 316 888 191
-discontinuing 11 828 - (1 351)
Cash at beginning of period 1 159 830 941
-continuing 1 048 830 830
-discontinuing 111 - 111
Cash at end of period 16 303 1 718 (220)
-continuing 4 364 1 718 1 021
-discontinuing 11 939 - (1 240)
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGE IN EQUITY
Non- Total Capital
Share Share Distributable Accumulated and
R'(000) Capital Premium Reserves loss reserves
Balance at 1 March 2013 1 490 49 065 12 926 (62 102) 1 379
Loss for the year (3 608) (3 608)
Other comprehensive loss (7 101) (7 101)
Total comprehensive loss for the year (7 101) (3 608) (10 709)
Issue of shares 51 699 750
Transfer of revaluation reserve through
use (169) 169 -
Total contributions by and distributions
to owners of company recognized
directly in equity 51 699 (169) 169 -
Balance at 28 February 2014 1 541 49 764 5 656 (65 541) (8 582)
Loss for the period-continuing operations (2 883) (2 883)
Reversal of impairment-continuing
operations 4 525 4 525
Profit from discontinuing operations 3 401 3 401
Comprehensive profit for the year 5 043 5 043
Transfer of revaluation reserve through
sale (5 656) 5 656 -
Issue of shares 569 7 971
De-recognition of reserves on sale of
property (5 971) (5 971)
Balance at 31 August 2014 2 110 57 735 - (60 815) (969)
Per share information 31 August 31 August 28 February
2014 2013 2014
Basic earnings (loss) per share 2.33 (0.75) (1.81)
From continuing operations 1.35 (0.75) (3.02)
From discontinued operations 0.98 - 1.21
Reconciliation of profit/ (loss) for the period to basic
earnings Profit and loss for the period attributable to 2 919 (1 519) (6 022)
equity holders of parent from continuing operations
Profit and loss for the period attributable to equity holders 2 124 - 2 414
of the parent from discontinued operations
Headline earnings (loss) per share 1.32 (0.75) (1.70)
From continuing operations (0.75) (3.01)
From discontinued operations - 1.31
Reconciliation between earnings (loss) and headline
earnings (loss) from continuing operations
Basic earnings (loss) 2 919 (1 519) (6 022)
Adjusted for:
- Loss/(profit) on disposal of assets (61) - 17
Headline earnings (loss) for the period 2 858 (1 519) (6 005)
Weighted averages shares in issue („000) 216 446 197 155 199 683
OVERVIEW
BASIS OF PREPARATION OF THE UNAUDITED INTERIM RESULTS
Statement of compliance
The unaudited consolidated condensed group interim results have been prepared in accordance with the
recognition and measurement criteria of International Financial Reporting Standards (“IFRS”), the AC500
Standards and the presentation and disclosure requirements of IAS 34: Interim Financial Reporting, the JSE
Limited Listings Requirements and the Companies Act of South Africa. These interim results have not been
reviewed or audited and as such the auditors have not expressed an opinion on the figures.
Significant accounting policies
The same accounting policies, presentation and methods of computation have been followed in these unaudited
interim results as were applied in the preparation of the Group?s Financial Statements for the year ended 28
February 2014.
Basis of measurement
The unaudited consolidated condensed group interim results have been prepared on the historical cost basis
except for certain financial instruments measured at fair value.
INTERIM RESULTS
The directors are pleased to report that the SAMES business is trading profitably and is now generating
consistent profits. The re-design of the existing product range is virtually completed and a full complement of
new products will be launched in 2015. Prospects for growth are now evident and positive.
No segmental report has been presented as the company only operates in one segment in South Africa and
does not have any customers that represent more than 10% of its sales.
RIGHTS ISSUE AND SALE OF SURPLUS ASSETS
The rights issue and the sale of the SAMES property raised a total of R27.3 million. This has resulted in a
substantial reduction in liabilities and has left the company with a cash surplus of R16,3 million as at 31 August
2014.
PROSPECTS
Apart from the further development of the SAMES business as well as sustainable organic growth, Labat has
identified various potential acquisitions with a focus on the Rail Industry. These initiatives are being pursued with
the assistance of Global Emerging Markets (GEM) who have provided a $100 million equity line of credit for
these acquisitions. Shareholders are reminded that the Company is trading under cautionary in this regard.
DIVIDENDS
In line with group policy, no dividend has been declared. When deemed appropriate, a dividend will be declared.
GOING CONCERN
The board of directors is of the opinion that the group has sufficient resources to continue as a going concern.
SUBSEQUENT EVENTS
Management is not aware of any material events which occurred subsequent to the period ended 31 August
2014, although it is advised that the Company continues to trade under a cautionary announcement.
For and on behalf of the board
B G VAN ROOYEN Prepared by: D. O?NEILL
Chief Executive Officer Financial Director
Johannesburg
12 December 2014
Directors: B van Rooyen (CEO), D O`Neill (FD), R Majiedt #(Chairperson), B Jacobs #, D Asmal #
# - Independent non-executive
Company Secretary: S. Van Rooyen
Sponsor: Arbor Capital Sponsors Proprietary Limited
Date: 12/12/2014 03:47:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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