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MVG - Mvelaphanda Group Limited - Reviewed year end results for 30 June 2009
MVELAPHANDA GROUP LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1995/0041553/06
Ordinary share code: MVG Preference share code: MVGP
Ordinary share ISIN: ZAE000060737
Preference share ISIN: ZAE000073540
("Mvela Group" or "the Group" or "the Company")
Reviewed year end results for 30 June 2009
KEY FEATURES
- Revenue increased by 6% to R3 746 million
- Operating profit increased to R256 million from R247 million in the prior year
- Cash generated from operations increased to R363 million from R271 million in
the prior year
- Intrinsic net asset value per ordinary share at 30 June 2009 of R7,90 (2008:
R8,68)
- Batho Bonke funding concluded
- Group restructuring announced to unlock value to shareholders
Yolanda Cuba, CEO commented: "The general trading environment for most of our
operations improved slightly in the second half of our financial year and
operating efficiencies have resulted in an overall good set of results. The fair
value adjustment for the year was also positive as a result of the favourable
sentiment towards the financial services and healthcare sectors."
SUMMARISED GROUP BALANCE SHEET
Reviewed Audited
year year
ended ended
30 June 30 June
2009 2008
R`000 R`000
ASSETS
Non-current assets 5 802 582 5 521 050
Property, plant and equipment 322 610 268 150
Intangible assets 860 812 851 429
Investment in associates 720 580 779 995
Strategic investments 3 864 909 3 524 859
Financial asset-derivative financial - 3 242
instruments
Deferred taxation 33 671 93 375
Current assets 1 262 554 1 546 227
Strategic investments 11 254 33 652
Other current assets 781 748 642 562
Cash and cash equivalents 469 552 870 013
Assets in disposal group held for sale - 280 295
TOTAL ASSETS 7 065 136 7 347 572
EQUITY AND LIABILITIES
Capital and reserves 4 017 544 3 943 488
Shareholders` equity 3 839 888 3 820 259
Minority interest 177 656 123 229
Non-current liabilities 2 210 823 1 161 603
Interest-bearing liabilities 1 700 627 769 541
Non-interest-bearing liabilities - 2 653
Financial liability-derivate financial 34 199 -
instrument
Deferred taxation 475 997 389 409
Current liabilities 836 769 2 065 586
Interest-bearing liabilities 64 084 61 545
Non-interest-bearing liabilities 25 021 3 977
Accrued interest-bearing liabilities* - 1 288 943
Other current liabilities 747 664 711 121
Liabilities in disposal group held for - 176 895
sale
TOTAL EQUITY AND LIABILITIES 7 065 136 7 347 572
Net number of ordinary shares in issue 406 665 406 665
(000)
Diluted net number of ordinary shares in 465 482 464 063
issue (000)#
Fully diluted net number of ordinary 465 482 588 488
shares in issue (000)##
Net asset value per ordinary share 824,9 823,2
(cents)
Net tangible asset value per ordinary 632,8 619,6
share (cents)
Fully diluted net asset value per 824,9 649,2
ordinary share (cents)
Fully diluted net tangible asset value 632,8 488,6
per ordinary share (cents)
*Due to the non-finalisation of the funding structure of the Avusa transaction,
the debt of R1 289 million was credited to current interest-bearing liabilities
at 30 June 2008. R1 010 million was financed by financial institutions during
the financial period ending 30 June 2009.
#Calculated on the basis that all preference shares will be converted into
ordinary shares after November 2009.
##At 30 June 2009 - calculated on the basis that all preference shares will
be converted into ordinary shares in accordance with their terms. At 30 June
2008 - calculated on the basis that all preference shares and BEE shares will
be converted into ordinary shares in accordance with their terms.
SUMMARISED GROUP CASH FLOW STATEMENT
Reviewed Audited
year year
ended ended
30 June 30 June
2009 2008
R`000 R`000
Profit from operations 255 590 246 747
Non-cash items 116 456 144 670
Movement in working capital (9 101) (120 268)
Cash generated from operations 362 945 271 149
Net interest (paid)/received (93 179) 73 134
Investment income received 51 751 11 263
Normal taxation paid (120 585) (85 699)
Cash available from operating
activities before the payment
of capital gains tax 200 932 269 847
Capital gains tax paid (342) (61 044)
Cash available from operating 200 590 208 803
activities
Cash effects from investing (52 400) (1 904 183)
activities
Cash effects from financing (434 237) 1 244 770
activities
Dividends paid (115 481) (30 016)
Net movement in cash and cash (401 528) (480 626)
equivalents
Cash and cash equivalents at the 871 080 1 351 706
beginning of the period1
Cash in disposal group held for sale - (1 067)
Cash and cash equivalents at the end 469 552 870 013
of the period
1(870 013 + 1 067)
SUMMARISED GROUP STATEMENT OF CHANGES IN EQUITY
Reviewed Audited
year year
ended ended
30 June 30 June
2009 2008
R`000 R`000
Balance at the beginning of the 3 943 488 6 000 490
period
Disposal/(acquisition) of (427) 445
subsidiaries
Shares bought back - (259 546)
Cost of BEE transaction 16 175 16 175
Net profit/(loss) for the period 176 447 (1 685 193)
Dividends/distributions (118 139) (128 883)
4 017 544 3 943 488
SUMMARISED GROUP INCOME STATEMENT
Reviewed Audited
year year
ended ended
30 June 30 June
2009 % 2008
R`000 Change R`000
Revenue 3 745 662 6 3 538 918
Profit from operations 255 590 4 246 747
Interest income 60 111 97 052
Interest expense (204 792) (39 924)
Share of loss from (34 131) (526 262)
associates
Net fair value adjustments 365 463 (1 620 105)
and profit/(loss) from
investments
Cost of BEE transaction (16 175) (16 175)
Goodwill impaired - (11 486)
Net profit/(loss) before 426 066 123 (1 870 153)
taxation
Taxation expense (249 619) 184 960
Normal, deferred, capital (221 218) 189 850
gains and foreign taxation
Secondary tax on companies (28 401) (4 890)
Net profit/(loss) after 176 447 110 (1 685 193)
taxation
Attributable to:
Ordinary shareholders 88 973 (1 532 789)
Other shareholders 87 474 (152 404)
- Preference shareholders 29 962 30 016
- Minority shareholders 57 512 (182 420)
176 447 110 (1 685 193)
Weighted average net number 406 665 416 564
of ordinary shares in issue
(000)
Diluted weighted average net 465 482 473 962
number of ordinary shares in
issue (000)*
Earnings/(loss) per ordinary 21,9 106 (368,0)
share (cents)
Headline earnings/(loss) per 49,9 114 (362,6)
ordinary share (cents)
Diluted earnings/(loss) per 25,6 108 (317,1)
ordinary share (cents)
Diluted headline 50,1 116 (312,4)
earnings/(loss) per ordinary
share (cents)
Dividend/distribution per - 27,0
ordinary share (cents)
Interim - 6,0
Final - 16,0
Special - 5,0
Dividend per preference 55,0 55,0
share (cents)
Interim 27,5 27,7
Final 27,5 27,3
*Calculated on the basis that all preference shares will be converted into
ordinary shares after November 2009.
RECONCILIATION BETWEEN NET PROFIT/(LOSS) ATTRIBUTABLE TO ORDINARY SHAREHOLDERS
AND HEADLINE NET PROFIT/(LOSS) ATTRIBUTABLE TO ORDINARY SHAREHOLDERS
Reviewed Audited
year year
ended ended
30 June 30 June
2009 2008
R`000 R`000
Net profit/(loss) attributable to 88 973 (1 532 789)
ordinary shareholders
Net disposal/impairment of 115 485 12 632
subsidiaries and investments
Net profit on sale of property, plant (1 943) (2 769)
and equipment
Impairment of goodwill (gross of tax - 11 486
and minority interest)
Tax effect 748 774
Headline net profit/(loss) 203 263 (1 510 666)
attributable to ordinary shareholders*
SEGMENTAL INFORMATION
Reviewed Audited
year year
ended ended
30 June 30 June
2009 2008
R`000 R`000
Net assets
Consumer services 3 065 566 3 732 559
Financial services 613 572 413 896
Construction and Infrastructure 146 138 273 594
Telecoms, Media and Technology 192 268 (476 561)
4 017 544 3 943 488
Revenue
Consumer services 3 745 662 3 538 918
Financial services - -
Construction and Infrastructure - -
Telecoms, Media and Technology - -
3 745 662 3 538 918
Net profit/(loss) for the period
Consumer services 524 229 (422 063)
Financial services 199 677 (667 116)
Construction and Infrastructure (127 455) (86 101)
Telecoms, Media and Technology (403 829) (482 262)
Impairment of goodwill - (11 486)
Cost of BEE transaction (16 175) (16 175)
176 447 (1 685 193)
INTRODUCTION
The Group derives income from its wholly controlled and partially-owned
investment activities. The investments are more fully detailed in the
Investments section.
FINANCIAL PERFORMANCE
Revenue of R3 746 million was 6% ahead of the prior year`s revenue of R3 539
million with the Group`s profit from operations increasing marginally by 4% to
R256 million from R247 million, in the previous year.
The gross interest earned on cash balances yielded an effective 9,1% return per
annum whilst the average cost of debt in 2009 increased to 13,4% from 11,6% in
30 June 2008. Dividend income for the year under review amounted to R50 million
(30 June 2008:
R11 million).
Net interest paid for the year amounted to R145 million compared to net interest
received of R57 million at 30 June 2008. The decrease was mainly as a result of
lower cash balances for the year under review, the introduction of the debt
incurred to part fund the acquisition of the investment in Avusa and the full
year effect of the debt relating to the investment in Vox Telecom acquired the
previous year.
The fair value adjustments and profit and loss, excluding dividend income, from
investments amounted to a net gain of R315 million for the 2009 financial year
against a loss of R1 631 million for the previous year.
A R34 million loss from associates was recorded in the current year (30 June
2008: R526 million loss) which is net of an impairment loss of R116 million
mainly in respect of the Group`s interest in Avusa.
The amortised cost on the 124 425 055 redeemable option-holding shares ("BEE
shares"), issued during the 2007 financial year by the Group, relating to
employees, has been recognised in the income statement in accordance with AC
503, Accounting for black economic empowerment (BEE) transactions at R16 million
for the current financial year.
Tax of R250 million (30 June 2008: R185 million credit) was charged to the
income statement of which R28 million resulted from the payment of Secondary Tax
on Companies in respect of the ordinary and preference share dividends paid
during the year, R54 million in normal tax charge and R168 million in a deferred
tax charge relating mainly to the net fair value gain on strategic investments.
The weighted average net number of ordinary shares in issue decreased by 2,4% to
407 million ordinary shares at 30 June 2009 from 417 million ordinary shares at
30 June 2008 as a result of a full year effect in respect of share buy-backs
during the previous financial year. No share buy-backs were undertaken in the
current financial year. The 465 million diluted weighted average net number of
ordinary shares in issue is calculated on the basis that all the preference
shares will be converted to ordinary shares on 4 November 2009.
Taking the above into account, the earnings per share amounted to 21,9 cents
compared to a loss per share of 368,0 cents in the previous year. The headline
earnings per share amounted to 49,9 cents compared to a headline loss per share
of 362,6 cents in the previous year.
FINANCIAL POSITION
The Group`s cash position reduced to R470 million at 30 June 2009 from R871
million at 30 June 2008 mainly as a result of the cash utilised for the
acquisition of Avusa and debt repayments.
Total interest bearing liabilities at 30 June 2009 decreased to R1765 million
from R2 120 million the previous year which resulted in a 14,6% decrease of the
Group`s debt to equity ratio to 44,0% (30 June 2008: 58,6%)
CAPITAL STRUCTURE
The issued ordinary share capital of the company remained unchanged at 443
million ordinary shares of which 35,7 million of the ordinary shares are held as
treasury shares.
BEE shares remained unchanged from the previous year and the options can be
exercised between 19 June 2011 and 19 June 2012.
The conversion price of the convertible perpetual cumulative preference shares
(54,7 million) has changed to R9,30 from R9,53 in the prior year as a result of
the ordinary dividends paid in October 2008. This means that each preference
share can be converted at the instance of the holder to 1,08 ordinary shares
from 4 November 2009 until 4 November 2010 after which these shares become
redeemable at the instance of the issuer or remain perpetual preference shares
at a dividend rate of 80% of the ruling prime overdraft rate. The preference
shares will continue to earn dividends at a rate of 5,5% per annum until 4
November 2010.
INTRINSIC NET ASSET VALUE
The Group`s intrinsic net asset value per ordinary share decreased by R0,89 in
the current year to R7,90 from R8,68 at 30 June 2008. The decrease is mainly
attributable to lower valuations as a result of the adoption of a conservative
approach within the current market environment, as well as the lower cash
balances.
The intrinsic net asset value per ordinary share net of capital gains taxation
and debt is set out in the table below:
Intrinsic NAV 30 June 2009 30 June 2008
Intrinsic Intrin- Intrin-
gross sic sic
net net
asset asset
asset Per Per
value share share
(after Debt value value
CGT) (1),(2) (1),(2)
Rm Rm Rm R Rm R
Absa 880 - 880 1,89 716 1,54
Group(3)
Avusa 529 (851) (322) (0,69) (379) (0,82)
Life 1 991 (365) 1 626 3,49 1 425 3,07
Healthcare
Group Five 211 - 211 0,45 361 0,78
Vox Telecom 107 (342) (235) (0,50) (14) (0,03)
Other 61 - 61 0,13 62 0,13
investments
Mvelaserve 1 195 (156) 1 039 2,23 1 374 2,96
Net cash 470 (50) 420 0,90 489 1,05
Total 5 444 (1 764) 3 680 7,90 4 034 8,68
1. Based on the fully diluted net number of 465 million ordinary shares after
share buy-backs and assuming that all the preference shares will be converted
into ordinary shares after November 2009 (2008: 464 million).
2. BEE shares issued in June 2007 have not been taken into account in
calculating the intrinsic net asset value per ordinary share as the minimum
option strike price of R17,50 is greater than the current Mvela Group ordinary
share price.
3. Value is after deducting outstanding debt at Batho Bonke level.
Based on Mvela Group`s ordinary share price listed on the JSE Limited ("JSE") of
R4,50 on 30 June 2009, the ordinary shares were trading at a discount of 43% to
the Group`s intrinsic net asset value per ordinary share of R7,90 at that date.
Based on Mvela Group`s ordinary share price listed on the JSE of R6,20 on 31
August 2009, the ordinary shares were trading at a discount of 24,7% to the
Group`s intrinsic net asset value per ordinary share of R8,23 at that date.
INVESTMENTS
MVELASERVE LIMITED ("MVELASERVE")
Revenue for the year ended 30 June 2009 increased by 6% to R3 746 million (30
June 2008: R3 539 million). EBITDA for the year was R392 million, which was in
line with the year ended 30 June 2008. Operating profit was 11% stronger than
the prior year at R274 million. Operating margin improved by 0,3% from the prior
year to 7,3% (30 June 2008: 7,0%).
The results of TMS, which was sold in October 2008, are consolidated for the
first three months of the reporting period. If the results of TMS are excluded,
then on a comparable basis, revenue for the remaining businesses of Mvelaserve
strengthened by 15%, while EBITDA was 21% ahead of prior year and operating
profit was 28% greater than the prior year. Operating margin for Mvelaserve,
excluding TMS, improved by 0,7% to 7,4% (30 June 2008: 6,7%).
Cash generated from operations for the year ended 30 June 2009 amounted to R363
million compared to R271 million generated in the prior year. This pleasing
improvement in cash generation is principally attributable to improved working
capital management within the Protea Coin Group and Contract Forwarding, as well
as the improvement in earnings and margins on a comparable basis.
Capital expenditure on property, plant and equipment (net of proceeds from the
disposal of property, plant and equipment) amounted to R220 million (30 June
2008: R288 million). Approximately R50 million of this capital expenditure was
attributable to the replacement of assets with the balance being used to expand
and grow Mvelaserve. The net outflows from asset financing relating to this
capital expenditure were approximately R75 million.
Depreciation and amortisation for the year ended 30 June 2009 was R118 million
(30 June 2008: R147 million).
The intrinsic net asset value per ordinary share attributable to Mvelaserve
decreased to R2,23 per Mvela Group ordinary share at 30 June 2009 compared to
R2,96 per Mvela Group ordinary share at 30 June 2008. The decrease in the
valuation is mainly influenced by FM being valued on a net present value basis
to reflect the remaining duration of the current Telkom Contract. In line with
depressed equity markets, lower earnings multiples have been applied to the
other business units. Mvelaserve made up 28,23% of the Group`s intrinsic net
asset value.
FACILITIES MANAGEMENT
FM has shown growth in revenue of 10% to R1 110 million and operating profit of
15% to R151 million arising primarily from increased project management by TFMC
of capital expenditure undertaken by Telkom and new business within Customised
Solutions. The extension of the Telkom Contract continues to be under
negotiation. Contracts in Customised Solutions performed ahead of expectations.
In line with the Mvelaserve strategy to use the existing contract base to grow
new business, the Customised Solutions pipeline is full of opportunities.
SECURITY
The Security business unit continued its turnaround during the year, driven by
growth in all divisions and new contract wins across the transport, mining and
public sectors. Revenue and operating profit increased by 21% to R1 321 million
and by 165% to R53 million respectively. The mining and guarding division
performed well and the AIT division, which had been incurring losses, turned
around during the year.
CATERING AND CLEANING
The Catering and Cleaning business unit demonstrated an improvement in revenue
of 14% to R750 million during the year attributable to organic growth in Project
Support Services and Berco offerings and revenue growth in RoyalSechaba`s
contract catering business. Operating profit was in line with prior year,
principally as a result of wage and food price inflation.
DIVERSIFIED SERVICES
Revenue and operating profit weakened compared to the prior year due to the sale
of TMS in the 2009 financial year. On a comparable basis, revenue and EBITDA
improved on the prior year while operating profit remained in line with the past
year`s performance. Khuseti, franchisor of the King Pie brand, was adversely
affected by the slowdown in consumer spending towards the end of 2008 and into
2009, which has negatively impacted the entire quick service restaurant market,
however, there is reason to be optimistic that the King Pie product range will
expand into the wholesale market. Zonke, the limited payout machine monitor for
the National Gaming Board, delivered a solid result for the year under review
while Contract Forwarding`s, freight forwarding and customs clearance agents,
contribution declined in the prior year as air and sea imports decreased.
Novare, a niche actuarial consultancy and asset management company, weakened its
performance on the prior year due to lower performance fees earned following the
contraction in capital markets.
STRATEGIC INVESTMENTS
FINANCIAL SERVICES SECTOR
Absa Group reported better than expected results with revenue increasing by 3,6%
to R20 981 million for the six months ended 30 June 2009. The Mvela Group`s
effective interest in Absa Group made up 24% of Mvela Group`s intrinsic net
asset value at 30 June 2009. Absa Group`s share price increased to R110 per
share at 30 June 2009 from R82,01 per share at 30 June 2008 which resulted in
the intrinsic value of Mvela Group in Absa Group improving by 23%.
The Absa Group empowerment entity, Batho Bonke in which Mvela Group has 44,7%
interest, exercised its options in Absa Group on 1 June 2009 and this resulted
in Batho Bonke owning directly 5,1% of Absa Group`s ordinary shares. This was
funded initially through a three months facility provided by Absa Group. The
temporary facility has been replaced by permanent funding of R1 700 million from
a consortium of financial institutions from 1 September 2009. Batho Bonke will
distribute R146 million to shareholders of which Mvela Group`s share is R65
million.
CONSUMER SERVICES SECTOR
Life Healthcare has continued to grow its business and services in the 12 months
to June 2009, increasing paid patient days by 4,3% and EBITDA in continuing
businesses by 14,4%. Mvela Group`s investment in Life Healthcare made up 44% of
Mvela Group`s intrinsic net asset value at 30 June 2009.
Life Healthcare continues to focus on managing its hospitals more effectively,
investing in new technology and expanding facilities to meet the growing demand
for healthcare. The company has a number of capital projects due for completion
in the next 9 months. A solid trading result, good control of working capital
and the disposal of businesses contributed to the strong generation of cash.
Mvela Group has received R178 million by way of repayments of shareholder loans
and dividends.
CONSTRUCTION AND INFRASTRUCTURE SECTOR
Group Five reported a 36% increase in revenue to R12 090 million (30 June 2008:
R8 899 million) and an increase of 28% in fully diluted earnings for the year
ended 30 June 2009. Group Five`s positioning in key growth markets has
contributed to the impressive results. These results were achieved despite the
cancelled orders in Dubai, the decline in the construction materials market and
the slowdown in mining and private real estate.
The intrinsic value of Mvela Group`s investment in Group Five shares decreased
to R211 million at 30 June 2009 from R361 million at 30 June 2008 as a result of
a decrease in the Group Five share price to R34,70 per share at 30 June 2009 (30
June 2008: R44,90). Mvela Group`s investment in Group Five made up 6% of the
Mvela Group`s intrinsic net asset value at 30 June 2009.
TELECOMS, MEDIA AND TECHNOLOGY SECTOR
Vox Telecom continues to trade satisfactorily due to consumer demand for managed
network and least cost routing services. Owing to the continued uncertainty
towards Vox Telecom in the market, Mvela Group is actively monitoring and
engaging material shareholders and management to ensure the company is managed
efficiently including new revenue opportunities. The Vox Telecom share price on
the JSE AltX at 30 June 2009 was 55 cents per share resulting in a negative
intrinsic value of R235 million net of debt.
Avusa`s results for the year ended 31 March 2009 were credible despite the sharp
downturn in the economy which resulted in a soft advertising market in the
second half of its financial year. Revenue from continuing operations was up 8%
to R4 875 million and profit after tax from continuing operations was up 7% to
R290 million. Mvela Group`s share of Avusa profits was R77 million at 30 June
2009.
Avusa will continue to pursue long term strategies and invest in businesses for
future growth, including the digital businesses which are ideally positioned for
the increased bandwidth anticipated in South Africa in the near future.
ACCOUNTING POLICIES AND INTERNATIONAL FINANCIAL REPORTING STANDARDS
The reviewed results for the year ended 30 June 2009 have been prepared in
accordance with International Financial Reporting Standards (IFRS), Interim
Financial Reporting (IAS) 34, the JSE Listings Requirements and in the manner
required by the Companies Act of South Africa. The accounting policies applied
are consistent with those applied in the prior year.
CAPITAL COMMITMENTS
Capital Expenditure 2009 2008
R`000 R`000
Contracted for 11 798 37 725
Not contracted for 18 589 13 075
30 387 50 800
Operating leases 2009 2008
R`000 R`000
Land and buildings 52 154 55 448
Equipment 4 295 5 693
Motor vehicles 47 137
56 496 61 278
OUTSTANDING LITIGATION
It was reported in the prior years that, Protea Aviation Security (Proprietary)
Limited has been named as second defendant with KLM Royal Dutch Airlines (as
first defendant) in a claim relating to the alleged theft of approximately
US$9,65 million foreign currency and valuable cargo during an alleged robbery
which took place at Johannesburg International Airport in December 2001. During
the current financial period the dispute has been resolved in an out of court
settlement, of which the monetary payment made by the Group was approximately R1
000 000.
REVIEWED OPINION
These results have been reviewed by Mvela Group`s auditors PKF (Jhb) Inc.,
Registered Auditors. Their unqualified reviewed opinion is available for
inspection at the company`s registered office.
ANALYST PRESENTATION
An audiocast of the presentation to analysts and investors will be made
available on the Mvela Group website from 15h00 on 3 September 2009.
FINAL DIVIDEND
ORDINARY SHARES
The directors of Mvela Group have resolved not to declare a final dividend for
the year ended 30 June 2009. This is due to the Group reviewing specific assets
within the context of the Restructuring plan. Should the cash not be used, it
will be returned to shareholders in the most efficient manner.
PREFERENCE SHARES
The directors of Mvela Group have resolved to declare a cash preference dividend
(No. 8) of 27,5 cents per preference share, for the six month period ended 30
June 2009, to preference shareholders. The last day to trade "cum" the
preference dividend in order to participate in the preference dividend is
Thursday, 17 September 2009. The preference shares of Mvela Group will commence
trading "ex" the preference dividend from the commencement of business on
Friday, 18 September 2009 and the record date will be Friday, 25 September 2009.
The preference dividend will be paid to preference shareholders on Monday, 28
September 2009. Preference share certificates may not be dematerialised or
rematerialised between Friday, 18 September 2009 and Friday, 25 September 2009,
both days inclusive.
RESTRUCTURING
Over the past five years, significant value has been created for shareholders
in the underlying investments of Mvela Group, excluding those in the telecoms
and media and technology sectors. However, this is not reflected in the Mvela
Group share price which still trades at a significant discount to its intrinsic
NAV. Considering this, together with the current corporate structure not being
appropriate to take advantage of the changed BEE landscape, the Board has agreed
to the realisation and unbundling of the Group`s assets and distribution to
shareholders in the most efficient and orderly manner over a period of time. No
new investments will be made by the Group.
PROSPECTS
Mvela Group continues to trade positively with a key focus on unlocking value
for shareholders. It is the stated intention of the board to achieve, at a
minimum, the intrinsic net asset value as reported for shareholders.
APPRECIATION
We extend our appreciation to all our employees and our investment companies for
their efforts in achieving a pleasing set of results in a very difficult trading
environment.
M S M Xayiya YZ Cuba
Executive Chairman Chief Executive Officer
2 September 2009
Executive Directors: MSM Xayiya (Executive Chairman), YZ Cuba (Chief Executive
Officer), GE Roth (Chief Financial Officer)
Non-Executive Directors: KD Dlamini*, BD Hopkins*, OA Mabandla*,
D Moshapalo*, MZ Mpofu*, RM Patel*, CD Stein, (*Independent)
Company Secretary: Mvelaphanda Management Services (Pty) Limited
Registered Office: Hunts End, 36 Wierda Road West, Wierda Valley, Sandton, 2196
Telephone 27 11 290-4200 Telefax 27 11 783-0027
Transfer Secretaries: Computershare Investor Services (Proprietary) Limited, 70
Marshall Street, Johannesburg, 2001
A copy of these results is available on the Mvelaphanda Group website at
www.mvelagroup.co.za
Sandton
3 September
Sponsor: Deutsche Securities SA (Pty) Limited
Date: 03/09/2009 08:05:02 Supplied by www.sharenet.co.za
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