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Sable Holdings Limited - Interim Report
Sable Holdings Limited
("SABLE")
(Registration No. 1968/010636/06)
Share code: SBL ISIN code: ZAE00006383
INTERIM REPORT
The unaudited group results for the half-year ended 31 December 2002 are as
follows:
Consolidated Income Statement
Six months Six months Year ended
31 Dec 2002 31 Dec 2001 30 June 2002
(Unaudited) (Unaudited) (Audited)
R000 R000 R000
Revenue 8,595 19,805 28,711
Operating (loss)/profit (942) 12,342 14,012
Net interest paid (3,848) (567) (2,086)
Depreciation (447) (516) (1,055)
(Loss)/profit before
abnormal items (5,237) 11,259 10,871
Net revaluation of
investment properties and
companies held for resale - - 1,957
Profit on disposal of
investments in subsidiaries - 129 334
Net profit on disposal of
investment properties and
companies held for resale 68 38 34
(Loss)/profit before taxation (5,169) 11,426 13,196
Taxation (8) (898) (1,592)
(Loss)/profit after taxation (5,177) 10,528 11,604
Profits/(losses) from
associated companies 6,038 (499) (2,060)
Net profit for the period 861 10,029 9,544
Number of ordinary shares
in issue during the period
after deducting those
repurchased in the buy-back
programme(000) 7,570 8,420 8,002
Earnings per ordinary share
(cents) 11.4 119.1 119.3
Headline (losses)/earnings per
ordinary share (cents) (58.2) 117.1 105.5
Dividend per ordinary share
(cents) - - 20.0
SUPPLEMENTARY INFORMATION
Net profit for the period 861 10,029 9,544
Adjustments:
Net revaluation of investment
properties and companies held
for resale - subsidiaries - - (1,957)
Profit on disposal of investments
in subsidiaries - (129) (334)
Net profit on disposal of
investment properties and
companies held for resale
- subsidiaries (68) (38) (34)
Revaluation of investment
properties and impairment
of investment
- associates (5,205) - 1,223
Headline (losses)/earnings
for the period (4,412) 9,862 8,442
CONSOLIDATED BALANCE SHEET
Six months Six months Year ended
31 Dec 2002 31 Dec 2001 30 Jun 2002
(Unaudited) (Unaudited) (Audited)
R000 R000 R000
Assets
Non-current assets 148,117 88,501 146,838
Investment properties,
plant and equipment 95,519 33,741 95,097
Investments - other 32,298 40,733 38,792
Investments - associates 17,112 11,528 10,860
Companies held for resale 1,696 2,122 1,696
Deferred taxation 16 - 16
Loans receivable 1,476 377 377
Current assets 13,437 9,969 6,871
Inventories 10,933 6,315 3,327
Trade and other receivables 2,439 2,347 1,972
Cash and cash equivalents 65 1,307 1,572
Total assets 161,554 98,470 153,709
Equity and liabilities
Capital and reserves 90,297 81,521 90,950
Share capital and premium 19,083 19,024 19,083
Non-distributable reserves 16,879 12,359 10,916
Revaluation reserves 24,293 - 29,808
Retained profits 30,042 50,138 31,143
Non-current liabilities 51,455 11,014 52,261
Interest-bearing
liabilities 50,910 11,014 51,229
Deferred taxation 545 - 1,032
Current liabilities 19,802 5,935 10,498
Trade and other payables 4,351 4,146 5,513
Interest-bearing liabilities 11,374 1,129 1,734
Interest-free liability 1,802 - 1,614
Current portion of interest-
bearing liabilities 2,142 - 1,180
Shareholders for dividends 20 2 2
Taxation payable 113 658 455
Total equity and liabilities 161,554 98,470 153,709
Number of ordinary shares
in issue (000) 8,420 8,555 8,420
Less: Treasury shares
repurchased (000) (850) (985) (850)
7,570 7,570 7,570
Net asset value per
ordinary share (cents) 1 193 1 077 1 202
Interest-bearing liabilities
to total capital and
reserves (%) 71.3 14.9 59.5
ABRIDGED CONSOLIDATED CASH FLOW STATEMENT
Six months Six months Year ended
31 Dec 2002 31 Dec 2001 30 June 2002
(Unaudited) (Unaudited) (Audited)
R000 R000 R000
Cash (outflow)/inflow from
operating activities (10,564) 3,272 4,135
Cash outflow from investing
activities (315) (12,985) (56,724)
Cash inflow from financing
activities 831 7,814 50,350
Net decrease in cash and cash
equivalents (10,048) (1,899) (2,239)
Cash and cash equivalents at
the beginning of the period (162) 2,077 2,077
Cash and cash equivalents at
the end of the period (10,210) 178 (162)
STATEMENT OF CHANGES IN EQUITY
Six months Six months Year ended
31 Dec 2002 31 Dec 2001 30 June 2002
(Unaudited) (Unaudited) (Audited)
R000 R000 R000
Balance at beginning of
the period 90,950 84,973 84,973
Repurchase of shares by
subsidiary - (3,497) (2,966)
Cancellation of shares
in issue - - (68)
Reduction in share premium - - (405)
Realisation of revaluation
reserves - (128) (128)
Net profit for the period 861 10,029 9,544
Dividend paid (1,514) - -
Restated balance at the end
of the period 90,297 91,377 90,950
Balance at end of the period 90,297 81,521 90,950
Change in accounting policy - 9,856 -
Restated balance at the end
of the period 90,297 91,377 90,950
COMMENTS
ACCOUNTING POLICIES
The accounting policies applied in the preparation of these financial statements
conform to South African Statements of Generally Accepted Accounting Practice
and are consistent with the accounting policies applied in the prior year.
RESULTS
Revenue earned was lower at R8.6 million (31 December 2001 - R19.8 million), due
to the purchase and resale of sectional title apartments amounting to R14.3
million in the previous comparative period. The group reported a net profit of
R0.9 million for the period ended 31 December 2002 (31 December 2001 - R10.0
million). Earnings per share decreased from 119.1 cents to 11.4 cents for the
period ended 31 December 2002. Headline losses were R4.4 million (31 December
2001 - earnings of R9.9 million) with headline losses per share of 58.2 cents
(31 December 2001 - 117.1 cents) reported. Operating (losses)/profits are
represented as follows:
Dec 2002 Dec 2001 June 2002
R"000 R"000 R"000
Property investments and
trading 5,145 4,420 7,789
Treasury investments (6,087) 7,922 6,223
(942) 12,342 14,012
Interest paid amounted to R3.8 million (31 December 2001 - R0.6 million), as a
result of increased borrowings utilised to purchase investment properties during
the last 12 months.
Investment properties are valued at R95.6 million (31 December 2001 - R33.8
million), the increase attributable to the purchase of retail and commercial
properties in the Johannesburg area.
Inventories of R10.9 million comprise residential projects under development,
for resale in the second half of 2003.
Investments in associated companies have increased to R17.1 million (31 December
2001 - R11.5 million) mainly through a
R5.2 million revaluation of Sable"s investment in its associated company, Sable
Homes.
Interest-bearing borrowings have increased by R52.3 million to R64.4 million, in
order to finance the purchase of investment properties and developments for
resale.
Activities from investment properties and trading properties for resale
Sable Homes has developed and let its residential developments at the Wanderers
Country Club, Johannesburg, and Allen"s Nek, Roodepoort. A further residential
development for long-term rental is under construction at Epsom Downs,
Bryanston.
Treasury Investments
The investment in The Appleton Global Hedge Portfolio, comprising international
fund managers utilising various alternative investment strategies, reversed some
of its historical currency gains, but did however preserve its dollar-based unit
fund price. This investment was valued at R30.6 million at 31 December 2002 (30
June 2002 - R36.7 million). The reduction of the market value has been included
under the company"s operating losses in accordance with Accounting Standard,
AC128.
Prospects
Sable has secured land for further development adjacent to the recently acquired
Hobart Road Shopping Centre. Residential
land for development and resale in Lonehill, Fourways, on which an 88-unit
sectional title scheme is envisaged, will begin
in the first half of 2003. Sable is currently considering various industrial
investment property acquisition opportunities.
Dividends
No dividend has been declared for the 6 months ended 31 December 2002.
For and on behalf of the board
J Nash (Chairman)
PH Nash (Managing director)
27 March 2003
Registered Office: Sable Place, Fairway Office Park, 52 Grosvenor Road,
Bryanston 2021.
Transfer secretaries: Computershare Investor Services Limited, 70 Marshall
Street, Johannesburg 2001.
Directors: J Nash* (Chairman), PH Nash (Managing), IR Kemp,
GJ Perrins* (*Non-executive)
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