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Sable - Preliminary profit statement the audited group results
for the year ended 30 June 2006 and dividend declaration
Sable Holdings Limited
("SABLE")
(Registration No. 1968/010636/06)
Incorporated in the Republic of South Africa
Share code: SBL ISIN code: ZAE000006383
Preliminary profit statement the audited group results for the year ended
30 June 2006 are as follows
Abridged Consolidated Income Statement
Year ended Year ended
30 June 2006 30 June 2005
(Audited) (Audited)
R"000 R"000
Revenue 25,436 37,192
Operating profit 16,828 12,817
Net interest paid (5,465) (7,248)
Depreciation (650) (787)
Impairment of loans - (328)
Dividends received 1,487 294
Profit on disposal of investment properties 5,283 17,340
Profit on disposal of operating assets - 25
Revaluation of company held for resale 400 -
Revaluation of investment properties 20,373 6,471
Profit before taxation 38,256 28,584
Taxation (4,002) (3,439)
Profit after taxation 34,254 25,145
Profit from associated companies 13,883 11,964
Net profit for the year 48,137 37,109
Number of ordinary shares in issue
during the year excluding treasury
shares (000) 7,506 7,506
Earnings per ordinary share (cents) 641.3 494.4
Headline earnings per ordinary share (cents) 281.6 175.2
Dividend per ordinary share (cents) 50.0 50.0
Reconciliation - headline earnings and distributable earnings
Net profit for the year 48,137 37,109
Adjustments:
Straight-line rental income accrual
- subsidiaries (243) (220)
- associates (69) 24
Impairment of loans - 328
Profit on disposal of investment properties (4,383) (16,872)
Profit on disposal of operating assets - (17)
Revaluation of investment properties and
Company held for resale
- subsidiaries (17,734) (5,492)
- associates (4,567) (1,709)
Headline earnings for the year 21,141 13,151
Abridged Consolidated Balance Sheet
Year ended Year ended
30 June 2006 30 June 2005
(Audited) (Audited)
R"000 R"000
Assets
Non-current assets 286,096 165,118
Properties, vehicles and equipment 199,083 94,950
Investments - treasury 39,485 32,320
Investments - associates 45,313 36,509
Company held for resale 750 350
Deferred taxation asset 1,088 612
Loans receivable 377 377
Current assets 28,524 29,532
Inventories 13,223 6,212
Trade and other receivables 7,072 14,496
Cash and cash equivalents 8,229 8,824
Total assets 314,620 194,650
Equity and liabilities
Capital and reserves 187,709 143,325
Share capital and premium 18,397 18,397
Non-distributable reserves 48,144 34,332
Revaluation reserves 51,181 26,352
Retained profits 69,987 64,244
Non-current liabilities 101,473 35,279
Interest-bearing borrowings 96,484 33,684
Deferred taxation liability 4,989 1,595
Current liabilities 25,438 16,046
Trade and other payables 7,020 11,254
Interest-bearing borrowings 12,144 973
Interest-free borrowing - 210
Current portion of interest-bearing borrowings 5,274 2,284
Shareholders for dividends 39 17
Taxation payable 961 1,308
Total equity and liabilities 314,620 194,650
Number of ordinary shares in issue (000) 8,420 8,420
Less: Treasury shares (000) (914) (914)
7,506 7,506
Net asset value per ordinary share (cents) 2,501 1,909
Interest-bearing liabilities to total
capital and reserves (%) 60.7 25.8
Abridged Consolidated Cash Flow Statement
Year ended Year ended
30 June 2006 30 June 2005
(Audited) (Audited)
R"000 R"000
Cash outflow from operating activities (4,397) (5,149)
Cash generated by operations 8,564 8,505
Movements in working capital (3,821) 273
Net interest paid (5,465) (7,248)
Dividends received 1,487 294
Dividends paid (3,731) (2,635)
Taxation paid (1,431) (4,338)
Cash (outflow)/inflow from investing activities (72,949) 45,897
Cash inflow/(outflow) from financing activities 65,580 (26,003)
Net (decrease)/increase in cash and cash
equivalents (11,766) 14,745
Cash and cash equivalents at the beginning
of the year 7,851 (6,894)
Cash and cash equivalents at the end of the year (3,915) 7,851
Abridged Statement of Changes in Equity
Year ended Year ended
30 June 2006 30 June 2005
(Audited) (Audited)
R"000 R"000
Balance at beginning of the year
- previously reported 143,325 109,334
Change in accounting policy - 212
Restated balance at beginning of the year 143,325 109,546
Net profit for the year 48,137 37,109
Purchase of shares by subsidiary - (686)
Dividends paid (3,753) (2,644)
Balance at end of the year 187,709 143,325
Comments
Basis of preparation and accounting policies
The preliminary group profit statement, for the year ended 30 June 2006,
has been prepared in accordance with International Financial Reporting
Standard ("IFRS"), IAS 34 - Interim Financial Reporting and the
requirements of the Companies Act of South Africa 1973, as amended. The
results incorporate accounting policies which are consistent with those
applied in the previous year.
Transitional Arrangements
The group"s transition to IFRS has been established as at 1 July 2004.
Opening balances at 1 July 2004 have been restated to reflect all existing
IFRS statements applicable.
Financial results
The group reported a net profit of R48.1 million (June 2005 - R37.1
million) from a robust property market, for the year ended 30 June 2006.
Earnings per share increased by 30% from 494.4 cents to 641.3 cents, with
headline earnings per share increasing by 61% from 175.2 cents to 281.6
cents for the year ended 30 June 2006.
Operating profits are represented as follows:
June 2006 June 2005
R"000 R"000
Net rentals and property trading 8,748 9,098
Treasury growth 8,080 3,719
16,828 12,817
The net asset value per share increased by 31% (2005 - 32%) to R25.01 (2005
- R19.09). A revaluation surplus of R20.8 million (2005 - R6.5 million)
pertaining to the investment property portfolio, reflected the significant
increase in property valuations, although being mindful of the recent
interest rate upward trend.
Acquisitions and developments
Sable has acquired and developed investment properties in Gauteng amounting
to R91.7 million during the year, comprising 55% industrial warehousing,
20% office buildings and 25% retail centres.
Disposals
A disposal of a multi-tenanted industrial park for R9.7 million in
Booysens, Johannesburg, generated a capital profit of R5.3 million.
Treasury investments
The investment in The PSG Global Hedge Portfolio improved by R6.9 million,
due to rand weakening and the improvement of a dollar-based unit price. The
closing investment at June 2006 was R34.8 million (June 2005 - R27.9
million).The domestic share portfolio managed by BOE Securities (Pty) Ltd
again performed well by increasing the investment value from R3.3 million
to R4.6 million at June 2006.
Associate investments
Sable Homes, of which Sable Holdings has a 45% interest, added net earnings
of R9.1 million (2005 - R10.4 million) during the year, mostly from the
development and resale of stands in residential housing estates in the
Gauteng area, as well as the revaluation of residential property
investments. Other significant associate earnings totalled R2.1 million and
were derived from the resale of industrial land in Kya Sands, Johannesburg.
A loan of R1.8 million that was impaired in a previous financial year, was
reversed to income during the current year.
Borrowings
Long-term interest-bearing borrowings increased from R35.9 million to
R101.8 million at June 2006, as a result of acquisitions of R91.7 million
as mentioned above. Interest-bearing borrowings to total capital and
reserves equated to 60.7% (June 2005 - 25.8%).
Prospects
Sable Holdings has committed a further R48 million in respect of retail
investment property subsequent to year end. Opportunities in all property
segments are continually being sought both internally and with strategic
partners. Sable Homes has begun developing large land holdings comprising
retail and decor centres, upmarket residential estates and office parks in
a new node of Pretoria East, named Hazeldean.
Audit report
The consolidated results for the year have been audited by Andre van der
Merwe and Associates and their unqualified audit report is available for
inspection at the company"s registered office.
Dividends
Notice is hereby given that a cash dividend of 50 cents per share (2005 -
50 cents per share) ("the dividend") has been declared, payable to
shareholders recorded in the books of the company at the close of business
on Friday, 20 October 2006. Shareholders are advised that the last day to
trade "cum" the dividend will be Friday, 13 October 2006. Shares will trade
"ex" dividend as from Monday, 16 October 2006, and the record date will be
Friday, 20 October 2006. Payment will be made on Monday, 23 October
2006.Shares may not be dematerialised or rematerialised during the period
Monday, 16 October 2006, to Friday, 20 October 2006,both days inclusive.
For and on behalf of the board
J Nash (Chairman)
PH Nash (Managing director)
27 September 2006
Directors: J Nash* (Chairman), PH Nash (Managing),IR Kemp, JA Pelser*
*Non-executive
Registered office: Sable Place, Fairway Office Park, 52 Grosvenor Road,
Bryanston 2021. PO Box 786390, Sandton 2146.
Transfer secretaries: Computershare Investor Services 2004 (Pty) Limited,
70 Marshall Street, Johannesburg. PO Box 61051, Marshalltown 2107.
Sponsor: Sasfin Capital - A division of Sasfin Bank Limited
Date: 27/09/2006 01:51:49 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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