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Condensed Consolidated Reviewed Financial Results for the Period Ended 31 March 2016
AFRICAN BANK INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1946/021193/06)
(Ordinary share code: ABL) (ISIN: ZAE000030060)
(Hybrid instrument share code: ABLP) (ISIN: ZAE000065215)
(“ABIL” or “the Group” or “the Company”)
CONDENSED CONSOLIDATED REVIEWED FINANCIAL RESULTS FOR THE PERIOD ENDED 31 MARCH 2016
HIGHLIGHTS
Total Equity of R1.59 billion
Total cash and cash equivalents of R1.94 billion
HEPS – 29.5 cents per share
EPS – 29.5 cents per shares
Net asset value per ordinary share of 30.8 cents *
* Note: The Net asset value per share is calculated after a notional deduction of
preference share equity from total shareholder equity. As the preference shares are non-
convertible and non-redeemable, preference shareholders only participate in the equity of
the Company on winding up. Net asset value per ordinary share calculated as at 31 March
2016 using total equity is 106.1 cents per share.
BACKGROUND
Subsequent to the reporting period, on 19 May 2016, the joint business rescue practitioners
of the Company filed notice of substantial implementation of the business rescue plan,
following which, control of the Company reverted to the directors of ABIL (“the Board”).
The Company still owns 100% of The Standard General Insurance Company Limited
(“Stangen”) which is now the Company’s only trading subsidiary.
Since the previous year end, there were no changes in the status of the Company’s
investments in Residual Debt Services Limited (formerly African Bank Limited) (“RDS”) which
is still in curatorship and Ellerine Holdings Limited (in business rescue). Both of these
investments were impaired in full in previous financial periods.
ABIL, with dispensation granted by the JSE, did not publish consolidated financial
statements for the interim period ended 31 March 2015 and financial year ended 30
September 2015. As a company may only compare financial statements to previously
published financial statements, this publication does not include consolidated financial
statements for comparative purposes for the six months ended 31 March 2015 and financial
year ended 30 September 2015.
FINANCIAL PERFORMANCE
SUMMARY OF CONSOLIDATED FINANCIAL RESULTS
The Group reported net profit after tax of R443 million for the six month period ended
31 March 2016. The trading profits were generated exclusively by Stangen.
Headline earnings per share were 29.5 cents for the six months ended 31 March 2016.
CONSOLIDATED STATEMENT OF CASH FLOW
Dividends paid from Stangen to ABIL as a result of Stangen’s strong cash generation enabled
the business rescue practitioners of ABIL to pay approximately R600 million to the
Company’s creditors during the six months ended 31 March 2016.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
The total shareholder equity is R1.59 billion as at 31 March 2016. The resultant solvency and
liquidity ratios confirm the financial stability of the Group.
EVENTS AFTER THE REPORTING PERIOD
ABIL concluded an agreement with African Bank Limited releasing R400 million in cash to
the Company which enabled the business rescue practitioners to pay the balance owing to
the Company’s creditors in full. As a result, the business rescue proceedings of ABIL ended
on 19 May 2016.
Following the successful implementation of the business rescue plan and final payment to
creditors, ABIL is both solvent and liquid with unencumbered cash reserves of R250 million.
Stangen concluded an agreement with African Bank Limited and RDS in respect of its run-
down credit life portfolio effective 1 April 2016. The agreement provides certainty for
Stangen on the run-down credit life portfolio and its realisable value. Stangen is no longer
exposed to changes in the credit insurance regulatory environment or risk of higher
retrenchments emerging in the current economic environment. Stangen remains in a strong
financial position.
GOING CONCERN
The Board concluded that the preparation of the financial information on a going concern
basis is appropriate.
DIVIDENDS
No ordinary or preference dividends were declared in the current period (2015: Rnil).
DIRECTORATE AND COMPANY SECRETARY
There were no changes to the Board of ABIL during the period under review.
In accordance with paragraph 3.59 of the JSE Listings Requirements, Acorim Proprietary
Limited was appointed as ABIL’s company secretary with effect from 9 March 2016.
LOOKING AHEAD
The current Board will convene an annual general meeting at which new directors will be
proposed to and voted on by ABIL shareholders.
On behalf of the Board
Mutle Mogase
Chairman
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Reviewed
six months
ended
31 March 2016
R million
Dividend received -
Insurance income 918
Interest received 74
Total income 992
Insurance claims 2
Operating costs (317)
Impairment of financial instruments (36)
Impairment of subsidiaries -
Finance costs (10)
Indirect taxation: VAT (2)
Profit before taxation 629
Direct taxation: Normal (186)
Profit for the period 443
Reconciliation between basic earnings and headline earnings
Profit for the period 443
Preference share dividend -
Basic earnings attributable to ordinary
shareholders 443
Adjusted for: Impairment of subsidiaries -
Headline earnings 443
Earnings per share
Basic and diluted earnings per ordinary share 29.5
Headline earnings per ordinary share 29.5
Weighted number of shares in issue (million) 1,501.0
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Reviewed
six months
ended
31 March 2016
R million
Assets
Short-term deposits and cash 1,935
Other assets 577
Investment in subsidiaries -
Equipment 1
Intangible assets 15
Total assets 2,528
Liabilities and equity
Taxation 105
Deferred taxation 9
Policyholder liabilities under insurance contracts 443
Borrowings 197
Other liabilities 182
Total liabilities 936
Ordinary shareholders' equity 462
Preference shareholders' equity 1,130
Total equity (capital and
reserves) 1,592
Total liabilities and equity 2,528
Tangible net asset value per ordinary share (cents) 29.8
Net asset value per ordinary share (cents) 30.8
Number of shares in issue (million) 1,501.0
CONDENSED STATEMENT OF CHANGES IN EQUITY
Ordinary shares
Share Ordinary Preference
capital and Distributable shareholders' share capital
R million premium reserves equity and premium Total
Balance at 30 September 2015 14,650 (14,631) 19 1,130 1,149
Total comprehensive profit for the
period - 443 443 - 443
Balance at 31 March 2016 14,650 (14,188) 462 1,130 1,592
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW
Reviewed
six months
ended
31 March 2016
R million
Cash (utilised) / generated from operations (44)
Cash receipts 956
Cash paid (1,000)
Indirect and direct taxation paid (113)
Cash (outflow) / inflow from operating activities (157)
Cash outflow from investing activities (2)
Acquisition of property and equipment (2)
Cash outflow from financing activities (273)
Cash outflow from funding activities (273)
(Decrease) / increase in cash and cash equivalents (432)
Cash and cash equivalents at the beginning of the period 2,367
Cash and cash equivalents at the end of the period 1,935
NOTES TO THE FINANCIAL STATEMENTS
NET ASSET VALUE PER SHARE
Net asset value per share
Total equity 1,592
Less Preference shareholders equity (1,130)
Equity attributable to ordinary shareholders 462
Total number of shares in issue (million) 1,501
NAV per ordinary share (cents) 30.8
* Note: The Net asset value per share is calculated after a notional deduction of
preference share equity from total shareholder equity. As the preference shares are non-
convertible and non-redeemable preference shareholders only participate in the equity of
the Company on winding up. Net asset value per ordinary share calculated as at 31 March
2016 using total equity is 106.1 cents per share.
CONDENSED CONSOLIDATED SEGMENTAL REVENUE AND RESULTS
Consolidated results
31 March 2016
Insurance Corporate Total
R million
Net income 918 - 918
EBITDA 617 (16) 601
Interest received 60 14 74
Impairment of financial instruments (15) (21) (36)
Finance costs - (10) (10)
Profit before taxation attributable to shareholders 662 (33) 629
Total assets 1,827 701 2,528
Total liabilities 591 345 936
AUDITORS' REPORT
“The accompanying financial information has been reviewed by the independent auditors,
Grant Thornton Johannesburg Partnership.
These interim condensed consolidated financial statements for the period ended 31 March
2016 have been reviewed by Grant Thornton Johannesburg Partnership who expressed a
modified review conclusion as follows:
BASIS FOR ADVERSE REVIEW CONCLUSION ON THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The company is required in terms of International Financial Reporting Standards (IAS 34)
Interim Financial Reporting to include comparative financial information in respect of the
preceding period to its interim financial information. As described in the commentary to the
financial information the company did not publish condensed consolidated financial
statements for the financial year ended 30 September 2015 nor for the six months ended 31
March 2015. As a company may only provide comparative financial information that has
previously been published in terms of the JSE Listings Requirements, this publication does
not include condensed consolidated financial statements for comparison purposes for the
six months ended 31 March 2015 and financial year ended 30 September 2015.
CONCLUSION
Based on our review, due to the non-disclosure of comparative information as Basis for
Adverse Conclusion paragraph, we conclude that the accompanying condensed
consolidated financial statements do not present fairly the financial position of African Bank
Investments Limited as at 31 March 2016 and its financial performance and cash flows for
the period then ended in accordance with the International Financial Reporting Standard,
(IAS) 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the
Accounting Practices Committee and Financial Pronouncements as issued by Financial
Reporting Standards Council and the requirements of the Companies Act of South Africa.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
In accordance with our responsibilities in terms of sections 44(2) and 44(3) of the Auditing
Profession Act, we report that we have identified a reportable irregularity in terms of the
Auditing Profession Act. We have reported such matters to the Independent Regulatory
Board for Auditors. The Annual General Meeting has not been held within 15 months from
the previous Annual General Meeting as required by Section 61(7) if the Companies Act.”
A copy of the auditor’s review report is available for inspection at the company’s registered
office together with the financial statements identified in the auditor’s report.
BASIS OF PREPARATION
The preparation of this financial information was supervised by Ebraim Mullah B.Compt (Hons).
This condensed financial information has been prepared in accordance with the framework
concepts and the measurement and recognition requirements of the International Financial
Reporting Standards (IFRS) adopted by the International Accounting Standards Board,
Interpretations issued by the International Financial Reporting Interpretations Committee
(IFRIC) of the IASB, IAS 34 Interim Financial Reporting, the SAICA Financial Reporting Guides
as issued by the Accounting Practices Committee, Listings Requirements of JSE Limited and
Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council
and the requirements of the Companies Act of South Africa (Act 71 of 2008) as amended.
The accounting policies, methods of computation and their application are consistent with
International Financial Reporting Standards and have been applied consistently to the
interim period presented in these financial statements. A copy of the review opinion is
available for inspection at the Company’s registered offices.
Johannesburg
30 June 2016
SPONSOR
Merchantec Capital
BOARD OF DIRECTORS
Independent non-executive: MC Mogase (Chairman), Advocate MF Gumbi, NB Langa-Royds,
M Mthombeni, RJ Symmonds, N Adams
African Bank Investments Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1946/021193/06)
(Ordinary share code: ABL) (ISIN: ZAE000030060)
(Hybrid instrument code: ABLP) (ISIN: ZAE000065215)
REGISTERED OFFICE
52 Corlett Drive, Wanderers Office Park, Illovo, South Africa, 2196
Private Bag X31, Northlands, South Africa, 2116
COMPANY SECRETARY
Acorim Proprietary Limited
SHARE TRANSFER SECRETARIES
Link Market Services South Africa Proprietary Limited
13th Floor, Rennie House, 19 Ameshoff Street, Braamfontein
PO Box 4844, Johannesburg, 2000
Telephone: +27 11 713 0800
Telefax: +27 86 674 4381
WEBSITE
www.abil.co.za
Date: 30/06/2016 05:06:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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