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SBL - Sable Holdings - Unaudited Group Results For the Period Ended
31 December 2008
SABLE HOLDINGS LIMITED
(Registration number: 1968/010636/06)
(Incorporated in the Republic of South Africa)
Share code: SBL & ISIN: ZAE000006383
(`Sable` or `the company`)
UNAUDITED GROUP RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2008
Condensed consolidated income statement
Period ended Period ended Year ended
31 December 2008 31 December 2007 30 June 2008
(Unaudited) (Restated) (Audited)
R`000 R`000 R`000
Revenue 15 363 14 492 29 596
Operating profit before
non-trading items 5 093 6 801 23 971
Profit on disposal of listed
investments 137 630 845
Profit on disposal of investment
property 5 392 - -
Impairments of listed
investments (2 113) (916) (3 180)
Fair value gains on
investment property - - 6 695
Operating profit 8 509 6 515 28 331
Finance income 1 723 2 069 1 584
Finance costs (10 243) (11 388) (20 284)
Share of profit/(loss) from
associates and joint ventures 4 285 (881) 14 108
Profit/(loss) before taxation 4 274 (3 685) 23 739
Taxation 328 83 3 986
Net profit/(loss) for
the period 4 602 (3 602) 27 725
Attributable to equity holders of the holding company:
Equity holders of the holding
company 4 619 (3 599) 27 751
Minority interest (17) (3) (26)
4 602 (3 602) 27 725
Number of ordinary shares
Shares in issue (`000) 8 170 8 170 8 170
Less: Treasury shares (`000) (792) (792) (792)
Weighted average number of ordinary
shares in issue (`000) 7 378 7 378 7 378
Earnings/(loss) per
ordinary share (cents) 62.6 (48.8) 376.1
Headline earnings/(loss)
per ordinary share (cents) 91.2 (44.6) 219.4
Dividend per ordinary share (cents) - - -
Reconciliation of headline earnings/(loss)
Net profit/(loss) attributable
to equity shareholders of the
holding company 4 619 (3 599) 27 751
Adjustments after tax:
Straight-line rental
income accrual - 65 -
Net impairment of investments:
Listed investments 2 113 916 3 180
Associates and joint ventures - (421) (1 937)
Revaluation of investment property:
Subsidiaries - - (4 820)
Associates and joint ventures - (248) (2 151)
SIC 21 Income Taxes:
Recovery of revalued
non-depreciable assets - - (5 833)
Headline earnings/(loss)
for the period 6 732 (3 287) 16 190
Condensed consolidated cash flow statement
Period ended Period ended Year ended
31 December 2008 31 December 2007 30 June 2008
(Unaudited) (Restated) (Audited)
R`000 R`000 R`000
Cash (outflow)/inflow from
operating activities (862) (418) 4 529
Cash generated from operations 8 460 13 022 27 794
Finance costs (10 243) (11 388) (20 284)
Finance income 1 723 2 069 1 584
Dividend paid - (3 669) (3 680)
Taxation paid (802) (452) (885)
Cash outflow from investing
activities (17 959) (6 542) (36 643)
Cash inflow from financing
activities 36 999 9 421 34 163
Net increase in cash and
cash equivalents 18 178 2 461 2 049
Cash and cash equivalents
at the beginning of
the period (44 031) (46 080) (46 080)
Cash and cash equivalents
at the end of period (25 853) (43 619) (44 031)
Cash and cash equivalents at the end of the period consist of:
Cash and cash equivalents 13 060 983 478
Bank overdrafts (17 186) (2 588) -
Loans on demand (21 727) (42 014) (44 509)
(25 853) (43 619) (44 031)
Condensed consolidated balance sheet
At At At
31 December 2008 31 December 2007 30 June 2008
(Unaudited) (Restated) (Audited)
R`000 R`000 R`000
Assets
Non-current assets 561 089 484 883 531 574
Investment property 327 110 291 068 324 678
Investments 226 651 188 857 200 330
Other non-current assets 7 328 4 958 6 566
Current assets 17 120 5 203 9 969
Cash and cash equivalents 13 060 983 478
Other current assets 4 060 4 220 9 491
Total assets 578 209 490 086 541 543
Equity and liabilities
Total equity attributable
to equity holders 352 050 288 332 319 948
Shareholders` equity 352 129 288 398 320 010
Minority interest (79) (66) (62)
Total liabilities 226 159 201 754 221 595
Non-current liabilities 172 176 141 657 164 673
Interest-bearing borrowings 140 781 104 601 130 396
Other non-current liabilities 31 395 37 056 34 277
Current liabilities 53 983 60 097 56 922
Loans on demand 38 913 44 602 44 509
Other current liabilities 15 070 15 495 12 413
Total equity and liabilities 578 209 490 086 541 543
Net asset value per ordinary
share (cents) #4 399 3 908 4 337
Interest-bearing borrowings
to total equity (%) 52.6 54.3 55.8
Interest-bearing borrowings
to total assets (%) 32.0 32.0 33.0
Condensed consolidated statement of changes in equity
Period ended Period ended Year ended
31 December 2008 31 December 2007 30 June 2008
(Unaudited) (Restated) (Audited)
R`000 R`000 R`000
Balance at the beginning of
the period 319 948 295 623 295 623
Net profit/(loss) for
the period 4 619 (3 599) 27 751
Claw-back rights offer # 27 500 - -
Movement in other reserves (17) (3) 264
Dividend paid - (3 689) (3 690)
Balance at the end of the
period 352 050 288 332 319 948
Condensed consolidated segmental report
Segment revenue 15 363 14 492 29 596
Investment property 15 422 14 886 30 159
Trading property - 24 53
Corporate costs (59) (418) (616)
Segment result (operating profit
before non-trading items) 5 093 6 801 23 971
Investment property 9 301 8 425 19 473
Trading property - (34) (54)
Corporate costs (4 208) (1 590) 4 552
Comments
Basis of preparation and accounting policies
The unaudited condensed consolidated financial results for the six months ended
31 December 2008 have been prepared in accordance with International Financial
Reporting Standards ("IFRS"), IAS 34 Interim Financial Reporting, the Companies
Act, as amended, and the JSE Listings Requirements. The principal accounting
policies used in the preparation of the unaudited results are consistent with
those used in the prior year other than as set out below:
The voluntary change in accounting policy with regards to IAS 31 Interest in
Joint Ventures in which interests in jointly controlled entities were previously
proportionately consolidated, are now consolidated using the equity method. The
comparative period has been restated accordingly.
Financial results
The effects of the change in the accounting policy as described above on the
December 2007 results are as follows:
31 December 2007 31 December 2007
(Restated) (Unaudited) Difference
R`000 R`000 R`000
Income statement
Loss before taxation and share
of losses from associates and
joint ventures (2 804) (925) 1 879
Taxation 83 (112) (195)
Share of losses from associates
and joint ventures (881) (2 565) (1 684)
Net loss for the period (3 602) (3 602) -
Consolidated income statement
Comparative analysis between 31 December 2008 (unaudited) and 31 December
2007 (restated).
The group reported a net profit of R4.6 million for the period ended 31 December
2008 (December 2007 - R3.6 million loss). Earnings per share increased from a
loss of 48.8 cents to earnings of 62.6 cents, with headline earnings per share
increasing from a headline loss of 44.6 cents to headline earnings of 91.2
cents. Revenue increased by 6.0% from R14.5 million to R15.4 million. Operating
profit before non-trading items decreased from R6.8 million to R5.1 million,
primarily due to property development fees accounted for in the December 2007
period. Profit on disposal of investment property of R5.3 million related to the
disposal of a commercial office property in Bryanston, Sandton, as well as a
residential property in central Sandton. Impairments of R2.1 million reflected
the impairment of the fair value of the listed share portfolio at 31 December
2008.
Share of profits from associates and joint ventures increased from a loss of
R0.9 million to profits of R4.3 million.
Consolidated balance sheet
The net asset value per ordinary share increased by 1.4% from 4 337 cents
(June 2008) to 4 399 cents.
# - The reconciliation of the net asset value per ordinary share is
calculated as follows:
December 2008 June 2008
R`000 R`000
Total equity attributable to equity holders 352 050 319 948
Less: Claw-back rights offer subscribed for
but not yet issued to majority shareholder (27 500) -
Adjusted equity attributable to equity holders 324 550 319 948
Weighted average number of ordinary
shares in issue (`000) 7 378 7 378
Net asset value per ordinary share (cents) 4 399 4 337
Investment property increased by a net amount of R2.4 million relating to a
capital spend of R21.0 million in respect of the ongoing upgrade of Noordheuwel
Shopping Centre in Krugersdorp less the disposal of a commercial office building
located in Bryanston, Sandton, at its carrying value of R18.6 million. The
investment property upgrade has been financed through long-term borrowings,
which increased from R130.4 million (June 2008) to R140.8 million at 31 December
2008.
Investments have been reported at R226.7 million (June 2008 - R200.3 million).
The investment increase of R26.4 million is as a result of R24.2 million in
direct equity and loan funding to associate and joint venture investments
financed by way of Sable`s rights offer, R4.3 million from associate and joint
venture profits and the impairment of R2.1 million of shares listed on the
Johannesburg Stock Exchange. The market value of the listed share portfolio was
R5.4 million (June 2008 - R7.8 million).
Loans on demand less cash and cash equivalents have been reported at R25.9
million (June 2008 - R44.0 million). The short-term debt has reduced
significantly through the proceeds from the sale of the abovementioned office
building.
# - Claw-back rights offer
Sable has finalised the terms of a subscription agreement with Isdale Holdings
BV, Sable Holdings` controlling shareholder, to raise approximately R35.0
million by way of a claw-back rights offer. The rights offer will result in the
issuing of 1 797 400 new ordinary shares of R0.50 each to Sable`s ordinary
shareholders at a subscription price of R19.47 per rights offer share and in the
ratio of 22 rights offer shares for every 100 Sable shares held. The
subscription price is at a premium of 14.53% to the closing price of Sable
ordinary shares on 10 November 2008 of R17.00. Shareholders recorded in the
register of members at the close of business on Thursday, 9 April 2009, are
granted the right to subscribe for rights offer shares in terms of the rights
offer. The rights offer shares will, upon allotment and issue, rank pari passu
in all respects with the Sable shares that are currently in issue.
Isdale Holdings BV part settled the rights offer through an advance payment of
R27.5 million during December 2008. The balance of the rights offer of R7.5
million was paid in January 2009. The rights offer shares of 1 797 400 had not
been allotted at 31 December 2008, although the subscription amount of R27.5
million is reflected as shareholders equity and detailed in the statement of
changes in equity.
Prospects
As indicated in the June 2008 reviewed results commentary, the directors
resolved to reduce shorter term debt which has been partly achieved. In addition
the claw-back rights offer has strongly positioned Sable to take advantage of a
market recovery in regard to its investment in Hazeldean, Pretoria East, which
comprises various property development opportunities.
The disposal of several other non-strategic investment properties has been
identified so as to further reduce shorter term debt during the
forthcoming six months.
Dividends
As is customary, the board of directors has resolved not to declare a
dividend for the six months ended 31 December 2008.
Going concern
The financial statements have been prepared on a going-concern basis as the
directors have every reason to believe that the company has adequate resources
in place to continue in operation for the foreseeable future.
For and on behalf of the board
P H Nash (Chairman)
GBJ Bowes (Managing director) 30 March 2009
Directors: PH Nash (Chairman), GBJ Bowes (Managing), IA Chambers*,
IR Kemp*, JA Pelser*, DJ Pennington*
(*non-executive)
Registered office: Sable Place, Fairway Office Park, 52 Grosvenor Road,
Bryanston 2021. PO Box 786390, Sandton 2146.
Transfer secretaries: Computershare Investor Services (Pty) Limited, 70 Marshall
Street, Johannesburg 2001. PO Box 61051, Marshalltown 2107.
Sponsor: Sasfin Capital - a division of Sasfin Bank Limited.
Date: 30/03/2009 16:57:24 Supplied by www.sharenet.co.za
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