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SABLE HOLDINGS LIMITED
('SABLE')
(REGISTRATION NO. 68/10636/06)
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INTERIM PROFIT STATEMENT
GROUP RESULTS FOR THE HALF YEAR ENDED 31 DECEMBER 1998 ARE AS FOLLOWS:
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CONSOLIDATED INCOME STATEMENT
6 MONTHS 6 MONTHS YEAR ENDED
31 DEC 1998 31 DEC 1997 30 JUNE 1998
(UNAUDITED) (UNAUDITED) (AUDITED)
R000 R000 R000
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TURNOVER 15 238 14 166 30 350
OPERATING (LOSS)/INCOME (249) 5 955 11 742
NET INTEREST PAID (3 072) (4 370) (3 844)
DEPRECIATION (893) (650) (1 439)
(LOSS)/INCOME BEFORE TAXATION
AND EXCEPTIONAL ITEMS (4 214) 935 6 459
EXCEPTIONAL ITEMS - (45 300) (43 145)
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NET (LOSS) BEFORE TAXATION (4 214) (44 365) (36 686)
TAXATION - (97) (4 758)
- CURRENT - 97 207
- SECONDARY TAX ON COMPANIES - - 4 551
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NET (LOSS) AFTER TAXATION (4 214) (44 462) (41 444)
(LOSS) FROM ASSOCIATED
COMPANIES (1 723) (593) (877)
SHARE OF RECURRING NET LOSSES
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NET (LOSS) FOR THE PERIOD (5 937) (45 055) (42 321)
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WEIGHTED AVERAGE NUMBER OF
ORDINARY SHARES IN
ISSUE (000) 8 607 8 242 8 403
(LOSS) PER SHARE (CENTS) (69,0) (546,7) (503,6)
HEADLINE (LOSS)/EARNINGS
PER SHARE (CENTS) (69,0) 3,0 9,8
DIVIDENDS PER SHARE (CENTS) - 425,0 425,0
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SUPPLEMENTARY INFORMATION
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1. EXCEPTIONAL ITEMS
- COMPANY
(LOSS) ON DISPOSAL OF
INVESTMENTS IN ASSOCIATED
COMPANIES - (45 300) (45 300)
PROFIT ON DISPOSAL OF OTHER
INVESTMENTS - - 2 155
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- (45 300) (43 145)
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2. HEADLINE (LOSS)/EARNINGS
PER SHARE
NET (LOSS) FOR THE PERIOD (5 937) (45 055) (42 321)
ADD: EXCEPTIONAL ITEMS - 45 300 43 145
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(5 937) 245 824
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CONSOLIDATED BALANCE SHEET 6 MONTHS YEAR ENDED
31 DEC 1998 30 JUNE 1998
(UNAUDITED) (AUDITED)
R000 R000
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CAPITAL EMPLOYED
ORDINARY SHAREHOLDERS' INTEREST 58 867 64 526
LONG-TERM LIABILITIES
- INTEREST-BEARING 10 138 127
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69 005 64 653
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EMPLOYMENT OF CAPITAL
FIXED ASSETS 46 366 36 205
INVESTMENTS 35 491 24 992
ASSOCIATED COMPANIES 7 596 8 336
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89 453 69 533
OTHER NET CURRENT ASSETS 4 909 (857)
SHORT-TERM LIABILITIES
- INTEREST-BEARING (25 357) (4 023)
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69 005 64 653
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INTEREST-BEARING DEBT TO TOTAL
SHAREHOLDERS' FUNDS (%) 60,3 6,43
NET ASSET VALUE PER SHARE (CENTS) 671 753
NUMBER OF ORDINARY SHARES IN ISSUE (000) 8 767 8 567
UNLISTED INVESTMENTS IN ASSOCIATED
COMPANIES AT DIRECTORS' VALUATION 7 596 8 336
GUARANTEES ISSUED ON BEHALF OF
ASSOCIATED COMPANIES 38 567 38 567
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COMMENTS
RESULTS
IN THE JUNE 1998 COMMENTARY, YOUR DIRECTORS STATED THAT SABLE'S SHARE
INVESTMENTS WOULD BE ADVERSELY AFFECTED BY MARKET TURBULENCE AS WELL AS
PROPERTY DEVELOPMENT ASSOCIATE COMPANY EARNINGS BEING IMPACTED BY HIGH INTEREST
RATES. AN ANALYSIS OF HEADLINE EARNINGS REFLECTS R6.0 MILLION WORTH OF LOSSES
ATTRIBUTABLE TO THE SHARE PORTFOLIO, A LOSS OF R1.7 MILLION ATTRIBUTABLE TO THE
ASSOCIATED COMPANIES WITH PROFITS OF R1.8 MILLION EARNED FROM OTHER GROUP
DIVISIONS. HEADLINE LOSSES AT 31 DECEMBER 1998 WERE 69C PER SHARE IN COMPARISON
WITH A 3 CENTS PER SHARE HEADLINE PROFIT AT 31 DECEMBER 1997. SUBSEQUENT TO THE
6 MONTHS ENDED 31 DECEMBER 1998, PROCEEDS REALISED FROM INVESTMENT BONDS HAVE
REDUCED SHORT-TERM DEBT BY R23.4 MILLION TO R2 MILLION AND CONSEQUENTLY, THE
LOWERING OF THE DEBT TO EQUITY RATIO FROM 60.3% TO 19.1%.
GENERAL
SABLE DISPOSED OF ITS LIBERTY LIFE INVESTMENT BOND FOR AN AMOUNT OF R5.5
MILLION. THE PROCEEDS WERE UTILISED TO SETTLE SHORT-TERM DEBT ARISING FROM AN
EXCEPTIONAL 'SECONDARY TAX ON COMPANIES' TAXATION CHARGE ON A PREVIOUS CASH
DIVIDEND PAYOUT. A PRIME RESIDENTIAL PROPERTY COMPLEX SITUATED IN THE NORTHERN
SUBURBS WAS PURCHASED FOR R10 MILLION AGAINST BORROWINGS WITH FAVOURABLE
FINANCING RATES. THE COMPLEX IS FOR SABLE'S PROPERTY TRADING DIVISION AND WILL
BE ACTIVELY MARKETED ONCE PROPERTY PRICES HAVE IMPROVED. SABLE PURCHASED A R20
MILLION INVESTMENT BOND FOR ITS TREASURY DIVISION WHICH MATURED DURING FEBRUARY
1999. EXCEPTIONAL CAPITAL PROFITS WILL BE EARNED FROM THIS INVESTMENT DURING
THE 1999 YEAR.
FACTORY UNITS IN WYNBERG WERE DISPOSED OF TOGETHER WITH SEVERAL RESIDENTIAL
UNITS IN SABLE'S PROPERTY TRADING DIVISION. RENTAL DEMAND HAS BEEN EXTREMELY
STRONG AND AS SUCH, TENANT OCCUPANCY IN BOTH THE COMMERCIAL AND RESIDENTIAL
BUILDING DIVISIONS HAS BEEN ABOVE 95%.
THE PROTEA GARDENS HOTEL MANAGED TO SHOW A MARGINAL PROFIT IN TIGHT TRADING
CONDITIONS TOGETHER WITH REASONABLE PROFITS EARNED FROM SPRING SHADES, AN
AUTOMOTIVE ACCESSORY DIVISION WITHIN THE SABLE GROUP.
NEW PROPERTY ACTIVITIES UNDERTAKEN BY THE ASSOCIATE COMPANIES HAVE BEEN DELAYED
DUE TO HIGH FINANCING COSTS AND POOR DEMAND FOR COMMERCIAL AND RESIDENTIAL
PROPERTY, ALTHOUGH CURRENT MARKET CONDITIONS POINT TO A MORE BUOYANT OUTLOOK IN
THE FUTURE.
PROSPECTS
THE BOARD ANTICIPATES THAT OPERATIONS DURING THE SECOND HALF YEAR WILL RECOUP A
PORTION OF THE LOSSES REPORTED THROUGH IMPROVED FINANCIAL MARKETS AND POSITIVE
SENTIMENT WITHIN SABLE'S ASSOCIATE COMPANIES. SABLE WILL CONTINUE TO SEEK
INVESTMENT OPPORTUNITIES IN PROPERTY AND OTHER RELATED ACTIVITIES.
SHAREHOLDERS ARE ADVISED THAT NO FINAL DIVIDEND WILL BE PAID IN RESPECT OF THE
CURRENT FINANCIAL YEAR.
YEAR 2000 COMPLIANCE
UNDER THE GUIDANCE OF SENIOR MANAGEMENT AND IN CONJUNCTION WITH A CONTRACTED IT
YEAR 2000 COMPLIANCE TEAM, A STRATEGY TO ENSURE YEAR 2000 COMPLIANCY THROUGHOUT
THE GROUP HAS BEEN IMPLEMENTED. PROJECT COSTS OF R100 000 ARE EXPECTED TO BE
INCURRED IN UPGRADING SOFTWARE AND HARDWARE. CURRENT PROGRESS IS WELL ADVANCED
AND COMPLIANCE BY JUNE 1999 IS PLANNED. YOUR DIRECTORS DO NOT EXPECT ANY
MATERIAL OPERATIONAL OR OTHER DIFFICULTIES, ANY ADVERSE EFFECT ON THE GROUP
EARNINGS OR LEGAL LIABILITY DUE TO YEAR 2000 RELATED ISSUES.
ALTHOUGH IT IS ANTICIPATED THAT ALL SIGNIFICANT AGENTS AND BUSINESS PARTNERS
WILL BE YEAR 2000 COMPLIANT, CONTINGENCY PLANS HAVE BEEN PUT IN PLACE.
FOR AND ON BEHALF OF THE BOARD
J NASH (CHAIRMAN)
P H NASH (MANAGING DIRECTOR)
25 MARCH 1999
REGISTERED OFFICE
SABLE PLACE
1A STAN ROAD,
MORNINGSIDE EXT 6
SANDTON 2057
TRANSFER SECRETARIES
MERCANTILE REGISTRARS LIMITED
11 DIAGONAL STREET
JOHANNESBURG 2001
DIRECTORS
J NASH (CHAIRMAN), PH NASH (MANAGING), IR KEMP, GJ PERRINS
