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SABLE HOLDINGS LIMITED
("Sable")
(Registration number 1968/010636/06)
(Incorporated in the Republic of South Africa)
INTERIM REPORT
The unaudited group results for the half year ended 31 December 2000 are as
follows:
Consolidated Income Statement
Six months Six months Year ended
31 Dec 2000 31 Dec 1999 30 June 2000
(Unaudited) (Unaudited) (Audited)
R000 R000 R000.
Revenue 10,354 11,615 25,116
Operating profit 9,874 6,834 6,635
Net interest paid (415) (1,086) (1,149)
Depreciation (569) (987) (1,889)
Profit before abnormal
items 8,890 4,761 3,597
Loss on disposal of
investment in subsidiary (2,635) - (2,117)
(Loss)/profit on disposal
of operating assets (8) 572 564
Profit on disposal of property
investments 150 - 4,832
Profit before taxation 6,397 5,333 6,876
Taxation - SA normal (443) (131) (1,493)
Current 443 131 1,383
Secondary tax on companies - - 110
Profit after taxation 5,954 5,202 5,383
(Loss)/profit from
associated companies (1,877) 665 (596)
Net profit for the period 4,077 5,867 4,787
Weighted average number of
ordinary shares
in issue (000) 8,805 8,767 8,773
Earnings per ordinary
share (cents) 46.3 66.9 54.6
Headline earnings per
ordinary share (cents) 94.4 60.4 57.7
Dividend per ordinary
share (cents) - - 10.0
Supplementary information
1.Headline earnings per ordinary share (R000)
Net profit for the
period 4,077 5,867 4,787
Less: Loss/(profit)
on disposal of operating
assets 8 (572) (13)
Profit on disposal of
property investments (150) - (4,832)
Add: Loss on disposal
of investment in
subsidiary 2,635 - -
Loss on disposal of
listed investment - - 115
Losses from discontinued
activities - - 5,001
Losses from associated
company investment
write downs 1,739 - -
8,309 5,295 5,058
Abridged Cash Flow Statement
Six months Six months Year ended
31 Dec 2000 31 Dec 1999 30 June 2000
(Unaudited) (Unaudited) (Audited)
R000 R000 R000
Cash inflow from
operating activities 7,188 6,081 6,047
Cash (outflow)/inflow from
investing activities (3,471) (13,298) 968
Cash inflow from financing
activities - 4,420 4,420
Net increase/(decrease) in
cash and cash equivalents 3,717 (2,797) 11,435
Cash and cash equivalents
at the beginning of the
period 8,226 (3,209) (3,209)
Cash and cash equivalents at
the end of the period 11,943 (6,006) 8,226
Consolidated Balance Sheet
Six months Six months Year ended
31 Dec 2000 31 Dec 1999 30 June 2000
(Unaudited) (Unaudited) (Audited)
R000 R000 R000
Assets
Non-current assets 74,492 89,604 75,960
Properties for resale 13,493 23,249 17,462
Investment properties 17,074 28,499 20,826
Vehicles and equipment 71 97 82
Investments - listed 29,407 22,826 21,042
Investments - associates 11,171 11,214 12,752
Companies held for resale 2,899 3,419 3,419
Loans receivable 377 300 377
Current assets 15,015 5,104 11,244
Inventories 99 306 166
Trade and other
receivables 2,548 3,797 2,852
Prepaid taxation - 697 -
Cash and cash
Equivalents 12,368 304 8,226
Total assets 89,507 94,708 87,204
Equity and liabilities
Capital and reserves 71,051 68,858 66,974
Share capital and premium 23,297 23,221 23,297
Non-distributable
reserves 13,536 17,203 15,413
Retained profits 34,218 28,434 28,264
Non-current liabilities 14,500 14,500 14,500
Interest-bearing liabilities
Current liabilities 3,956 11,350 5,730
Trade and other payables 3,437 5,041 4,184
Interest-bearing
liabilities 425 6,309 -
Shareholders for dividends 7 - 881
Taxation payable 87 - 665
Total equity and
liabilities 89,507 94,708 87,204
Interest-bearing liabilities
to total capital and
reserves (%) 21.0 30.2 21.7
Net asset value per
ordinary share (cents) 807 785 761
Number of ordinary shares
in issue (000) 8,805 8,767 8,805
Unlisted investments in
associated companies
at directors'
valuation (R000) 11,171 11,214 12,752
Statement of Changes in Equity
Six months Six months Year ended
31 Dec 2000 31 Dec 1999 30 June 2000
(Unaudited) (Unaudited) (Audited)
R000 R000 R000
Balance at beginning of
the period 66,974 62,991 62,991
Issue of shares - - 76
Net profit for the period 4,077 5,867 4,787
Dividend payable - - (880)
Balance at end of period 71,051 68,858 66,974
Comments
Results
The group reported a net profit of R4.1 million for the period ended 31
December 2000 (December 1999 - profit of R5.9 million). Headline earnings were
R8.3 million (December 1999 - profit of R5.3 million) with headline earnings
per share of 94.4 cents (December 1999 - earnings per share of 60.4 cents)
reported.
Operating profits of R9.9 million (December 1999 - profit of R6.8 million) were
derived from the following activities:
Dec 2000 Dec 1999
R000 R000
Rentals 3,171 3,831
Property trading 195 -
Administration and treasury 6,508 4,315
Discontinued trading operations - (1,312)
9,874 6,834
Net interest paid has decreased by R0.7 million to R0.4 million during the
period under review, mainly due to the further disposal of trading properties
for resale, which generated proceeds of R4.3 million. The depreciation charge
has also decreased by R0.4 million to R0.6 million (December 1999 - R1.0
million) as a result of the disposal of Sable's interests in its hotel
activities at 30 April 2000. A capital loss of R2.6 million on the disposal of
an investment property has been reflected in the income statement. R1.9
million relating mainly to the write down of certain associated company
commercial property and land investments, was deducted against net profits.
Net cash and cash equivalents have increased by R3.7 million from June 2000.
Listed investments have increased by R8.4 million through sustained growth in
international and local equities and bonds as well as rand depreciation, during
the period under review.
Activities from property investments and trading properties for resale
Investment properties continue to have good occupancies and rental escalations.
A commercial office building has been purchased, post December 2000, in Wierda
Valley, Sandton, for R10.7 million and is occupied by a single tenant on a
five-year lease. A commercial office/retail property investment in central
Johannesburg was disposed of for R0.8 million during November 2000.
A large component of residential properties for resale has been disposed of to
property investors. Sable currently remains with residential properties in
Melrose Estate, Johannesburg, after a further disposal of residential
properties in Bryanston, Sandton, during February 2001. Sable has recognised
several opportunities in residential land to be developed for resale and has
entered into joint ventures with its associate, Sable Homes, during February
2001.
Treasury Investments
Sable has sold a substantial portion of its shares under management by Gensec
Securities and invested in Odyssey Alternative Strategies Fund Limited, an
overseas-based asset management company investing in international shares,
stocks and bonds. The asset management company aims to achieve consistent and
substantial long-term capital appreciation, with significantly better risk
adjusted returns than world equity markets.
Prospects
Opportunities in commercial, industrial and residential property continue to be
sought in prime areas through direct investment or on a joint venture basis.
Earnings in the second half of the year are expected to be similar to those
achieved in the interim report, provided that the listed investments are not
adversely affected by current volatile world equity markets.
Dividends
It is anticipated that a final dividend will be paid in respect of the current
financial year.
For and on behalf of the board
J Nash (Chairman)
PH Nash (Managing director)
29 March 2001
Registered office:
Sable Place, Fairway Office Park, 52 Grosvenor Road, Bryanston 2021
Transfer secretaries:
Mercantile Registrars, 11 Diagonal Street, Johannesburg 2001.
Directors: J Nash* (Chairman), PH Nash (Managing), IR Kemp, GJ Perrins*
(*Non-executive)
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