Sharenet Sites 
Sharenet Sites
SABLE HOLDINGS LIMITED
("SABLE")
(REGISTRATION NO. 68/10636/06)
INTERIM PROFIT STATEMENT
GROUP RESULTS FOR THE HALF YEAR ENDED 31 DECEMBER 1997 ARE AS FOLLOWS:
CONSOLIDATED INCOME STATEMENT
6 MONTHS 6 MONTHS YEAR ENDED
31 DEC 1997 31 DEC 1996 30 JUNE 1997
(UNAUDITED) (REVIEWED) AUDITED)
R000 R000 R000
----------------------------------------------------------------
TURNOVER 14 166 12 470 26 491
----------------------------------------------------------------
OPERATING INCOME 5 955 11 119 22 681
NET INTEREST PAID (4 370) (3 929) (5 533)
DEPRECIATION (650) (587) (1 304)
----------------------------------------------------------------
INCOME BEFORE TAXATION
AND EXCEPTIONAL ITEMS 935 6 603 15 844
EXCEPTIONAL ITEMS (45 300) - -
----------------------------------------------------------------
NET INCOME/(LOSS)
BEFORE TAXATION (44 365) 6 603 15 844
TAXATION 97 404 232
----------------------------------------------------------------
NET INCOME/(LOSS)
AFTER TAXATION (44 462) 6 199 15 612
INCOME/(LOSS) FROM
ASSOCIATED COMPANIES (593) 1 445 12 245
SHARE OF RECURRING
NET INCOME/(LOSS) (593) 2 284 (363)
SHARE OF EXCEPTIONAL
ITEMS - (839) 12 608
----------------------------------------------------------------
NET INCOME/(LOSS) FOR
THE PERIOD (45 055) 7 644 27 857
----------------------------------------------------------------
WEIGHTED AVERAGE
NUMBER OF ORDINARY
SHARES IN ISSUE (000) 8 242 8 011 8 077
EARNINGS/(LOSS) PER
SHARE (CENTS) (546,7) 95,4 345,0
HEADLINE EARNINGS
PER SHARE (CENTS)
AFTER EXCEPTIONAL
ITEMS 3,0 105,9 189,0
HEADLINE EARNINGS PER
SHARE (CENTS)
- CONTINUING OPERATIONS 10,2 - -
DIVIDEND PER SHARE
(CENTS) 425,0 0,0 61,0
----------------------------------------------------------------
CONSOLIDATED BALANCE SHEET
6 MONTHS YEAR ENDED
31 DEC 1997 30 JUNE 1997
(UNAUDITED) (AUDITED)
R000 R000
----------------------------------------------------------------
CAPITAL EMPLOYED
ORDINARY SHAREHOLDERS' INTEREST 98 145 139 630
LONG-TERM LIABILITIES -
INTEREST-BEARING 151 20 157
----------------------------------------------------------------
98 296 159 787
----------------------------------------------------------------
EMPLOYMENT OF CAPITAL
FIXED ASSETS 26 826 27 187
INVESTMENTS 41 944 41 285
ASSOCIATED COMPANIES 10 144 104 724
----------------------------------------------------------------
78 914 173 196
OTHER NET CURRENT ASSETS 20 056 2 889
SHAREHOLDERS FOR DIVIDEND - (4 958)
SHORT-TERM LIABILITIES -
INTEREST-BEARING (674) (11 340)
----------------------------------------------------------------
98 296 159 787
----------------------------------------------------------------
INTEREST-BEARING DEBT TO TOTAL
SHAREHOLDERS FUNDS (%) - 23
NET ASSET VALUE PER SHARE (CENTS) 1 146 1 715
NUMBER OF ORDINARY SHARES IN
ISSUE (000) 8 567 8 143
UNLISTED INVESTMENTS AT
DIRECTORS' VALUATION 10 144 39 816
GUARANTEES ISSUED ON BEHALF OF
ASSOCIATED COMPANIES 30 750 46 993
----------------------------------------------------------------
SUPPLEMENTARY INFORMATION
6 MONTHS 6 MONTHS YEAR ENDED
31 DEC 1997 31 DEC 1996 30 JUNE 1997
(UNAUDITED) (REVIEWED) AUDITED)
R000 R000 R000
----------------------------------------------------------------
1. EXCEPTIONAL ITEMS
COMPANY
LOSS ON DISPOSAL
OF INVESTMENTS
IN ASSOCIATED
COMPANIES (45 300) - -
----------------------------------------------------------------
(45 300) - -
----------------------------------------------------------------
ASSOCIATES
SURPLUS/(LOSS) ON DISPOSAL
OF INVESTMENTS AND
PROPERTIES - (35) 14 016
LOSS ON DISPOSALS OF
DISCONTINUED OPERATIONS - (568) (853)
COMPANY RESTRUCTURING COSTS - (236) (555)
----------------------------------------------------------------
- (839) 12 608
----------------------------------------------------------------
2. HEADLINE EARNINGS PER SHARE
NET INCOME/(LOSS) FOR THE
PERIOD (45 055) 7 644 27 857
ADD: EXCEPTIONAL ITEMS 45 300 839 (12 608)
----------------------------------------------------------------
245 8 483 15 249
----------------------------------------------------------------
3. HEADLINE EARNINGS PER SHARE -
CONTINUING OPERATIONS
HEADLINE EARNINGS - ABOVE 245
ADD: LOSSES ON DISCONTINUED
OPERATIONS - ASSOCIATED
COMPANIES 593
----------------------------------------------------------------
838
----------------------------------------------------------------
GENERAL
DURING THE PERIOD UNDER REVIEW SABLE DISPOSED OF ITS INTEREST IN THE DON GROUP
LIMITED ("THE DON") AND SAPROP LIMITED FOR AN AGGREGATE AMOUNT OF R49 MILLION.
OF THIS SUM, R40 MILLION WAS USED TO REPAY OUR LONG AND SHORT-TERM BANK DEBT,
AND THE REMAINING R9 MILLION WAS USED TO PURCHASE A RESIDENTIAL PROPERTY FOR
THE GROUP'S TRADING DIVISION.
SINCE THE GROUP IS NOW VIRTUALLY UN-GEARED, YOUR DIRECTORS HAVE DECLARED AN
EXTRAORDINARY INTERIM DIVIDEND OF R4,25 PER SHARE WHICH WILL BE FUNDED FROM THE
SALE OF SABLE'S INVESTMENT BONDS AND OTHER LIQUID ASSETS. THESE DEVELOPMENTS
LEAVE THE COMPANY THE OPTIMUM CAPITAL TO CONTINUE WITH ITS CORE PROPERTY
ACTIVITIES.
DUE TO THE LARGE AMOUNT OF SECONDARY TAX ON COMPANIES PAYABLE ON THE DIVIDEND
THIS YEAR, WHICH AMOUNTS TO APPROXIMATELY R4,5 MILLION, HEADLINE EARNINGS FOR
THE FULL YEAR TO JUNE 1998 ARE ONLY EXPECTED TO BREAK EVEN.
FURTHER RATIONALISATION AND RE-STRUCTURING WILL RESULT IN A SIGNIFICANT
IMPROVEMENT IN RETURN ON EQUITY IN THE FUTURE.
RESULTS
THE INCOME STATEMENT REFLECTS AN EXCEPTIONAL LOSS OF R45,3 MILLION MAINLY
RESULTING FROM THE DON LOSS. AFTER CAREFUL ANALYSIS OF THE PROSPECTS FOR THE
DON, THE BOARD CONCLUDED THAT IT WOULD BE BETTER MAKING FUTURE INVESTMENTS
ELSEWHERE.
EARNINGS WERE ALSO AFFECTED BY THE FALL IN EQUITY MARKETS DURING OCTOBER 1997
RESULTING IN LOWER THAN EXPECTED INCOME FROM INVESTMENTS, WHILST PROPERTY
TRADING PROFITS IN THE CURRENT PERIOD ARE NEGLIGIBLE DUE TO THE TIMING ON
COMPLETION OF VARIOUS PROJECTS IN PROGRESS.
PROSPECTS
SABLE WILL CONSOLIDATE ITS PROPERTY RELATED ACTIVITIES AND MAINTAIN A STRONG
FINANCIAL PROFILE TO THE JUNE YEAR END. AS THE BULK OF THE GROUP'S PROFITS COME
HISTORICALLY FROM THE SECOND HALF YEAR, THE OUTLOOK FOR THE FULL YEAR IS MORE
ENCOURAGING. IN ADDITION, ALL INVESTMENT INCOME SHORTFALLS TO DECEMBER 1997
HAVE BEEN RECOUPED IN JANUARY AND FEBRUARY THIS YEAR.
IN VIEW OF THE EXTRAORDINARY INTERIM DIVIDEND DECLARED, SHAREHOLDERS ARE
ADVISED THAT NO FINAL DIVIDEND WILL BE PAID IN RESPECT OF THE CURRENT FINANCIAL
YEAR.
DECLARATION OF ORDINARY DIVIDEND
NOTICE IS HEREBY GIVEN THAT AN INTERIM DIVIDEND OF 425 CENTS PER SHARE HAS BEEN
DECLARED PAYABLE TO ALL ORDINARY SHAREHOLDERS REGISTERED IN THE BOOKS OF THE
COMPANY AT THE CLOSE OF BUSINESS ON FRIDAY, 24 APRIL 1998. PAYMENT OF THE
DIVIDEND WILL BE MADE IN CASH ON MONDAY, 1 JUNE 1998. THE TRANSFER REGISTER OF
MEMBERS WILL NOT BE CLOSED FOR THE PURPOSE OF PAYMENT OF THE ABOVE DIVIDEND.
FOR AND ON BEHALF OF THE BOARD
J NASH (CHAIRMAN)
P H NASH (MANAGING DIRECTOR)
24 MARCH 1998
REGISTERED OFFICE TRANSFER SECRETARIES
SABLE PLACE MERCANTILE REGISTRARS LIMITED
1A STAN ROAD 94 PRESIDENT STREET
MORNINGSIDE EXT 6 JOHANNESBURG 2001
SANDTON
DIRECTORS: J NASH (CHAIRMAN), PH NASH (MANAGING), IR KEMP,
GJ PERRINS
