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SABLE HOLDINGS LIMITED
("SABLE")
(REGISTRATION NUMBER 68/10636/06)
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
INTERIM REPORT
THE UNAUDITED GROUP RESULTS FOR THE HALF YEAR ENDED 31 DECEMBER 1999 ARE AS
FOLLOWS:
CONSOLIDATED INCOME STATEMENT
6 MONTHS 6 MONTHS YEAR ENDED
31 DEC 99 31 DEC 98 30 JUNE 99
(UNAUDITED) (UNAUDITED) (AUDITED)
R000 R000 R000
TURNOVER 11 615 15 238 25 256
OPERATING PROFIT/(LOSS) 6 834 (249) 6 875
NET INTEREST PAID (1 086) (3 072) (4 910)
DEPRECIATION (987) (893) (1 993)
PROFIT ON DISPOSAL OF
FIXED ASSETS 572 - -
NET PROFIT/(LOSS) BEFORE
TAXATION 5 333 (4 214) (28)
TAXATION SA NORMAL CURRENT (131) - (182)
NET PROFIT/(LOSS) AFTER
TAXATION 5 202 (4 214) (210)
SHARE OF PROFIT/(LOSS) IN
ASSOCIATED COMPANIES 665 (1 723) (1 625)
NET PROFIT/(LOSS) FOR
THE PERIOD 5 867 (5 937) (1 835)
WEIGHTED AVERAGE NUMBER OF
ORDINARY SHARES IN ISSUE
(000) 8 767 8 607 8 687
EARNINGS PER SHARE (CENTS) 66.9 (69.0) (21.1)
HEADLINE EARNINGS/(LOSS)
PER SHARE (CENTS) 60.4 (69.0) (21.1)
DIVIDENDS PER SHARE (CENTS) - - -
SUPPLEMENTARY INFORMATION
HEADLINE EARNINGS/(LOSS) PER SHARE FOR THE PERIOD
NET PROFIT/(LOSS) FOR THE
PERIOD 5 867 (5 937) (1 835)
LESS: AFTER TAX PROFIT
ON DISPOSAL OF FIXED
ASSETS (572) - -
5 295 (5 937) (1 835)
CONSOLIDATED CASH FLOW STATEMENT
6 MONTHS 6 MONTHS YEAR ENDED
31 DEC 99 31 DEC 98 30 JUNE 99
(UNAUDITED) (UNAUDITED) (AUDITED)
R000 R000 R000
CASH INFLOW/(OUTFLOW) FROM
OPERATING ACTIVITIES 6 081 (9 087) (3 181)
CASH GENERATED BY OPERATIONS 6 834 (249) 6 716
MOVEMENTS IN WORKING CAPITAL 622 (1 316) (472)
NET INTEREST PAID (1 086) (3 072) (4 866)
TAXATION PAID (289) (4 450) (4 433)
DIVIDEND PAID - - (126)
CASH (OUTFLOW) FROM
INVESTING ACTIVITIES (13 298) (22 531) (6 308)
INVESTMENT IN ASSOCIATED
COMPANIES (1 860) (983) (1 977)
ADDITIONS TO FIXED ASSETS (6 342) (11 049) (13 235)
INCREASE IN CARRYING VALUE
OF INVESTMENTS (5 656) (10 499) 7 819
PROCEEDS ON DISPOSAL OF
FIXED ASSETS 560 - 1 085
CASH INFLOW FROM FINANCING
ACTIVITIES 4 420 10 311 10 253
PROCEEDS FROM ISSUE OF
SHARE CAPITAL - 300 300
INCREASE IN MEDIUM AND
LONG-TERM LIABILITIES 4 420 10 011 9 953
NET (DECREASE)/INCREASE IN
CASH AND CASH EQUIVALENTS (2 797) (21 307) 764
CASH AND CASH EQUIVALENTS AT
THE BEGINNING OF PERIOD (3 209) (3 973) (3 973)
CASH AND CASH EQUIVALENTS
AT THE END OF PERIOD (6 006) (25 280) (3 209)
CONSOLIDATED BALANCE SHEET
6 MONTHS 6 MONTHS YEAR ENDED
31 DEC 99 31 DEC 98 30 JUNE 99
(UNAUDITED) (UNAUDITED) (AUDITED)
R000 R000 R000
CAPITAL EMPLOYED
ORDINARY SHAREHOLDERS'
INTEREST 68 859 58 867 62 992
LONG-TERM LIABILITIES -
INTEREST-BEARING 14 500 10 138 10 080
83 359 69 005 73 072
EMPLOYMENT OF CAPITAL
FIXED ASSETS 51 845 46 366 46 478
INVESTMENTS 22 826 35 491 17 172
ASSOCIATED COMPANIES 11 214 7 596 8 688
85 885 89 453 72 338
OTHER NET CURRENT ASSETS 3 783 4 909 3 943
SHORT-TERM LIABILITES -
INTEREST-BEARING (6 309) (25 357) (3 209)
83 359 69 005 73 072
INTEREST-BEARING DEBT TO
TOTAL SHAREHOLDERS' FUNDS 30.2 60.3 21.1
NET ASSET VALUE PER SHARE
(CENTS) 785 671 719
NUMBER OF ORDINARY SHARES
IN ISSUE 8 767 8 767 8 767
UNLISTED INVESTMENTS IN
ASSOCIATED COMPANIES AT
DIRECTORS' VALUATION (R000) 11 214 7 596 8 688
SURETYSHIPS ISSUED IN RESPECT
OF ASSOCIATED AND SUBSIDIARY
COMPANIES' ACTUAL BORROWINGS
(R000) 15 957 23 556 22 647
COMMENTS
RESULTS
WE ARE PLEASED TO REPORT A RETURN TO PROFITABILITY FOR THE SIX MONTHS ENDED 31
DECEMBER 1999. HEADLINE EARNINGS FOR THE PERIOD UNDER REVIEW WERE R5.3 MILLION
(DECEMBER 1998 - HEADLINE LOSS OF R5.9 MILLION) WITH HEADLINE EARNINGS PER
SHARE OF 60.4 CENTS (DECEMBER 1998 - HEADLINE EARNINGS PER SHARE OF 69.0 CENTS)
REPORTED. TURNOVER REDUCED BY 24% TO R11.6 MILLION (DECEMBER 1998 - R15.2
MILLION) MAINLY DUE TO THE DISPOSAL OF OUR AUTOMOTIVE ACCESSORY DIVISION IN
OCTOBER 1999 AS WELL AS DIMINISHED REVENUE AT THE PROTEA GARDENS HOTEL. THE
IMPROVEMENT OF OPERATING PROFIT TO R6.8 MILLION (DECEMBER 1998 - LOSS OF R0.2
MILLION) WAS ASSISTED THROUGH SUSTAINED POSITIVE EARNINGS OF R3.1 MILLION BY
SABLE'S ADMINISTRATION AND TREASURY DIVISION AS WELL AS RENTAL EARNINGS OF R3.8
MILLION FROM COMMERCIAL AND RESIDENTIAL BUILDINGS. PROFITS FROM ASSOCIATE
COMPANIES OF R0.6 MILLION WERE REPORTED PRIMARILY THROUGH STRONG SALES OF
RESIDENTIAL STANDS BY SABLE HOMES AT THE ROYAL PARKS ESTATE IN BRYANSTON,
SANDTON, AS WELL AS THE GENERAL DECLINE IN INTEREST RATES, REDUCING THE COST OF
BORROWINGS.
BORROWINGS INCREASED BY 56.4% FROM R13.3 MILLION AT JULY 1999 TO R20.8
MILLION. INVESTMENTS OF R1.9 MILLION WERE MADE IN ASSOCIATE COMPANIES AS EQUITY
IN DEVELOPMENTS AT THE BRYANSTON COUNTRY CLUB. A FURTHER R5.3 MILLION WAS
UTILISED TO ERECT SABLE'S NEW HEAD OFFICE AT THE FAIRWAYS OFFICE PARK IN
BRYANSTON, SANDTON.
PROPERTY INVESTMENTS
OCCUPANCIES AT THE RESIDENTIAL AND COMMERCIAL BUILDINGS WERE EXTREMELY GOOD
DURING THE FIRST HALF OF THE YEAR. SABLE HAS CURRENTLY PROCEEDED WITH THE
AGGRESSIVE SELLING OF CERTAIN OF ITS RESIDENTIAL SECTIONAL TITLE COMPLEXES AND
COMMERCIAL BUILDINGS. CASH GENERATED IS EXPECTED TO BE IN THE ORDER OF R7.6
MILLION BY JUNE 2000. THE CURRENT CLIMATE OF LOW INTEREST RATES AND SHORT
SUPPLY OF RESIDENTIAL SPACE HAS ALLOWED SABLE TO TAKE ADVANTAGE OF ACHIEVING
EXCELLENT SELLING PRICES TO INVESTORS AND THE GENERAL PUBLIC.
SABLE HAS MOVED INTO ITS NEW HEAD OFFICE AT BRYANSTON, SANDTON, AND HAS LEASED
THE MAJORITY OF THE BUILDING TO GOOD QUALITY TENANTS. SABLE'S PREVIOUS HEAD
OFFICE IN SANDTON HAS BEEN FULLY TENANTED BY KLM/ALITALIA, ON A FIVE YEAR
LEASE, WITH EFFECT FROM 1 DECEMBER 1999.
THE PROTEA GARDENS HOTEL IN BEREA, JOHANNESBURG, CONTINUES TO SHOW
DISAPPOINTING RESULTS RECORDING A R1.3 MILLION LOSS DUE TO VERY LOW
OCCUPANCIES. SABLE IS CURRENTLY IN DISCUSSIONS WITH POTENTIAL PURCHASERS OF THE
HOTEL.
TREASURY INVESTMENTS
SABLE'S TREASURY INVESTMENTS LINKED TO THE JOHANNESBURG STOCK EXCHANGE HAVE
SHOWN GROWTH OF R5.2 MILLION SINCE JULY 1999. THE PORTFOLIOS ARE CONTINUALLY
BEING MONITORED BY SABLE MANAGEMENT AS WELL AS THE ASSET MANAGEMENT COMPANIES
INVESTING ON SABLE'S BEHALF.
AUTOMOTIVE ACCESSORY DIVISION
A DEAL WAS SUCCESSFULLY CONCLUDED IN THE DISPOSAL OF "SPRING SHADES" - AN
AUTOMOTIVE ACCESSORY DIVISION OF SABLE HOLDINGS LIMITED. THE STOCK AND
INTELLECTUAL RIGHTS WERE DISPOSED OF FOR R1.3 MILLION DURING OCTOBER 1999. THE
REMAINING STOCK OF R0.2 MILLION IS BEING TRADED ON A PIECE-MEAL BASIS, WITH
OPERATING ASSETS BEING EITHER RETAINED OR SOLD TO INTERESTED PARTIES.
PROSPECTS
SABLE WILL CONTINUE TO DISPOSE OF RESIDENTIAL AND COMMERCIAL PROPERTIES THAT DO
NOT MEET WITH ITS LONG-TERM INVESTMENT PHILOSOPHY, AND LOOK TO RE-INVEST THE
CASH PROCEEDS IN OPPORTUNITIES THAT MEET REQUIRED 'RISK AND RETURN' CRITERIA.
THE YEAR END HEADLINE EARNINGS ARE EXPECTED TO BE SIMILAR TO THOSE ACHIEVED IN
THE FIRST SIX MONTHS, ASSUMING THAT THE JOHANNESBURG STOCK EXCHANGE CONTINUES
ITS UPWARD TREND.
DIVIDENDS
IT IS ANTICIPATED THAT A FINAL DIVIDEND WILL BE PAID IN RESPECT OF THE CURRENT
FINANCIAL YEAR.
YEAR 2000 COMPLIANCE
THE GROUP EXPERIENCED NO DIFFICULTIES IN ITS Y2K TRANSITION.
FOR AND ON BEHALF OF THE BOARD
J NASH (CHAIRMAN)
PH NASH (MANAGING DIRECTOR) 29 MARCH 2000
REGISTERED OFFICE TRANSFER SECRETARIES
SABLE PLACE MERCANTILE REGISTRARS LIMITED
1A STAN ROAD 11 DIAGONAL STREET
MORNINGSIDE EXT 6 JOHANNESBURG 2001
SANDTON 2057
