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Provisional Consolidated Reviewed Annual Financial Statements For The Year Ended 28 February 2017
AFRICAN DAWN CAPITAL LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/020520/06)
JSE code: ADW
ISIN: ZAE000060703
("the Company" or "the Group" or "Afdawn")
Provisional consolidated reviewed annual financial statements for the year ended 28 February 2017
- Revenue declined by R0.3 million to R37 million
- Operating expense increased by R1.6 million to R44.5 million as result of:
- Increased employment costs in Knife Capital (refer to note 11)
- Circular cost incurred relating to approved Shareholder transactions
- Operating loss increased by R4.4 million to R6.8 million
- Finance Cost increased by R0.2m to R3,2 million as result of:
- Penalties and interest on VAT
- Interest charge on director loans
- Borrowings were reduced by R4.6 million to R15.8 million
- Loss for the year increased by R4.4 million to R11.3 million
- Loan from directors increased as directors funded Company and did not receive salaries and fees for a period (refer to note 7 and 8)
- Net Cash from operating activities increased by R1.3 million
- Net Asset Value decreased by R11.3 million as result of:
- Operating losses in Knife Capital
- Impairment of Goodwill in Knife Capital due to negative trading results
- Penalties and Interest accrued on SARS
- Increased head office costs due to circular costs relating to Approved Shareholder transactions.
- The outstanding SARS matter is still a key risk to the sustainability of the Group, and a material uncertainty still exists on the Company
and Group's ability to continue as a going concern.
Statement of Financial Position as at 28 February 2017
2017 2016
Notes R '000 R '000
Assets
Non-Current Assets
Property, plant and equipment 605 879
Goodwill 4,679 8,076
Intangible assets 3,775 5,155
Deferred tax 697 381
9,756 14,491
Current Assets
Other financial assets - 312
Properties in possession 2 15 853 18,247
Trade and other receivables 3 31 193 35,981
Cash and cash equivalents 1,983 3,005
49,029 57,545
Total Assets 58,785 72,036
Equity and Liabilities
Equity
Share capital and share premium 5 313,943 313,943
Accumulated loss (303,630) (291,442)
10,313 22,501
Liabilities
Non-Current Liabilities
Deferred tax 758 1,125
Borrowings 6 6,316 7,829
7,074 8,954
Current Liabilities
Current tax payable 4 16,280 15,054
Borrowings 6 9,475 12,524
Finance lease liabilities - 19
Loans from directors 7 1,523 487
Operating lease liability - 28
Trade and other payables 8 14,120 12,469
41,398 40,581
Total Liabilities 48,472 49,535
Total Equity and Liabilities 58,785 72,036
Statement of Profit or Loss and Other Comprehensive Income
2017 2016
Notes R '000 R '000
Revenue 9 36,991 37,329
Cost of sales (366) (839)
Gross profit 36,625 36,490
Other income 10 1,387 3,910
Operating expenses (44,880) (42,836)
Operating loss 11 (6,868) (2,436)
Investment income 84 346
Profit/(Loss) on fair value movement - contingent consideration
liability 7 - 2,000
Impairment of goodwill (3,397) -
Reduction in liability to Nexus liquidator 2,162
Deemed interest expense (585) (552)
Impairment to properties in possession 2 (971) (3,284)
Finance costs 12 (3,245) (3,018)
Loss before taxation (12,820) (6,944)
Taxation 632 34
Loss for the year (12,188) (6,910)
Loss attributable to:
Owners of the parent (12,188) (6,910)
(12,188) (6,910)
Basic and diluted loss per share restated (c) 17 (55.6) (31.6)
Statement of Changes in Equity
Share Share Total share Accumulated Total
capital premium capital loss equity
R '000 R '000 R '000 R '000 R '000
Balance at 1 March 2015 8,803 305,140 313,943 (284,532) 29,411
Total comprehensive loss for the year - - - (6,910) (6,910)
Balance at 29 February 2016 8,803 305,140 313,943 (291,442) 22,501
Total comprehensive loss for the year - - - (12,188) (12,188)
Balance at 28 February 2017 8,803 305,140 313,943 (303,630) (10,313)
Note(s) 5 5 5
Statement of Cash Flows
2017 2016
Notes R '000 R '000
Cash flows from operating activities
Cash generated by/(used in) operations 14 4,836 3,490
Interest income 84 346
Finance costs 12 (2, 403) (2,080)
Tax received/(paid) 322 (1,307)
Net cash from operating activities 2,839 449
Cash flows from investing activities
Purchase of property, plant and equipment (44) (570)
Proceeds on disposal of property, plant and equipment 31 248
Purchase of intangible assets (303) (346)
Additional cost of property in possession - -
Net cash from investing activities (316) (668)
Cash flows from financing activities
Borrowings (repaid)/raised 6 (4,562) (11,280)
Finance lease payments (19) (163)
Directors' loans raised/(repaid) 7 1,036 (730)
Net cash from financing activities (3,545) (12,173)
Total cash movement for the year (1,022) (12,392)
Cash at the beginning of the year 3,005 15,397
Total cash at end of the year 1,983 3,005
Statement of compliance
These reviewed condensed provisional consolidated financial statements have been prepared in accordance with the
International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board, IAS 34:
Interim Financial Reporting, the Johannesburg Stock Exchange ("JSE") Listings Requirements, the requirements of
the South African Companies Act, as amended and the financial reporting pronouncements as issued by the Financial
Reporting Standards Council, South African Institute of Chartered Accountants financial reporting as issued
by the Accounting Practices Committee.
These condensed consolidated provisional financial statements were compiled under the supervision of the group Chief Financial
Officer, G Hope, CA(SA), and were reviewed by the Company's external auditor, Grant Thornton Cape Inc.
A copy of their unmodified review opinion which includes an Emphasis of Matter paragraph regarding going concern, as detailed
below, is available from the Company's registered office.
The auditor's unmodified review opinion which includes an Emphasis of Matter paragraph regarding going concern report does not
necessarily report on all the information contained in this announcement. Users are therefore advised that in order to get a
full understanding of the nature of the auditor's engagement, they should obtain a copy of the auditor's review opinion report
together with the accompanying financial information from the company's registered office.
Emphasis of Matter
'Without qualifying their conclusion, the auditors would like to draw attention to Note 1, Going concern judgement, in
this SENS announcement which indicates the existence of a material uncertainty which may cast significant doubt on
the Company's and group's ability to continue as a going concern.'
These provisional consolidated financial statements were compiled by Dylan Kohler, Professional Accountant (SA).
Approval by the Board
The provisional consolidated financial statements for the year ended 28 February 2017 (including comparatives)
were approved and authorised for issue by the board of directors on 31 May 2017.
Notes to the financial statements
1. Going concern judgement
The consolidated and separate financial statements have been prepared on the basis of accounting policies applicable to a
going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets
and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business.
The material uncertainties relating to events or conditions which may cast doubt upon the ability to continue as a going
concern are outlined below.
This judgement is based on a careful consideration of the following:
- Financial statements should be prepared on a going concern basis unless it is intended to liquidate the entity or to
cease trading or there is no realistic alternative but to do so.
- In considering whether the going concern assumption is appropriate, all available information is taken into
account, including information about the foreseeable future.
- Where there are material uncertainties relating to events or conditions which may cast doubt upon the ability to
continue as a going concern, those uncertainties should be disclosed.
The material uncertainties relating to events or conditions which may cast doubt upon the ability to continue as a going
concern are outlined in the table below. The table also outlines the actions being taken to manage these uncertainties
and also the current status of these uncertainties and actions.
Uncertainty Action Status
Timing of the amount payable to SARS The directors have engaged with tax The current relationship with SARS
advisors to assist them in making a is constructive and conducive to an
submission to SARS and to negotiate a amicable outcome. A compromise
settlement agreement. offer was submitted to SARS by legal
advisors and we await the result
from SARS.Various payment and funding
options are available to the board to be
considered.
Ability of Afdawn and all of its A number of actions are being taken to The Candlestick property was
subsidiaries to meet ongoing mitigate the risk of this uncertainty transferred on 12 May 2017 and
commitments. The risk of this materialising. These include: (a) The the Nedbank bond plus the
uncertainty materialising in a manner Candlestick transaction was concluded PTF3 and Blue Dot was settled
that could affect the relevance of the and we await transfer of the property. plus most of the trade
going concern assumption could arise. b) Consideration is given to sell certain creditors were settled.
other assets c) the collection of a There is ongoing engagement
debtor becoming highly likely . d) The with funders. The Elite
Elite transaction got Shareholder transaction was cancelled and
approval in June 2016. Company has right to claim
and recover damages from
Dzothe.
Elite has been repaying the Elite has made arrangement with Elite had ongoing negotiations
Sandown loan on a monthly basis, Sandown on a monthly basis with Sandown. These
but has not fully complied with the when needed. negotiations centre on
original agreed repayment schedule accommodating Elite's ability to
Sandown could have demanded immediate repay the loan over longer
repayment of this loan. period.
Sandown have agreed to extend
terms of the repayment to three
years .Elite has repaid R7,2
million of the original R15 million
Sandown loan.
The strategy regarding Elite and Knife Elite concluded the transaction with The board of Afdawn has to
Capital needs to be re-evaluated. Dzothe in June 2016 . A deposit of explore all its options. The
R2million was paid and Dzothe was in extention of the Sandown debt
breach with the rest of purchase repayment period will enble Elite
consideration . The transaction was to fund itself in the short term.
cancelled 12 May 2017. The success of the Knife
business model needs to be
re-evaluated and restructured
accordingly.
2. Properties in possession
2017 2016
Almika Properties 81 Proprietary Limited, Benoni, Gauteng 3,889 5,312
Greenoaks - Centurion, Gauteng 44,415 44,415
Greenoaks - PTF3 share of property (16,174) (16,174)
32,130 33,553
Impairment (16,277) (15,306)
Carrying amount 15,853 18,247
Reconciliation of movement 2017 Almika Greenoaks
Opening balance 5,312 44,415
Sold (1,423) -
PTF3 share of Greenoaks - (16,174)
Impairment (3,609) (12,668)
280 15,573
Reconciliation of movement 2016
Almika Greenoaks
Opening balance asset 6 749 44,415
Sold (1,437) -
PTF3 share of Greenoaks - (16,174)
Impairment (3,609) (11,697)
1,703 16,544
Almika
Almika owns a low-cost residential development consisting of 50 units in Loerie Park, Benoni, Gauteng. The development
has now been completed and the units are in the process of being sold. In terms of the agreement with the property
developer, Afdawn Group will receive R70 000 on transfer of each unit that is sold. It is estimated that this will amount
to approximately R3,4 million.
A total of 46 units have been transferred and payments of R3,2 million have been received by February 2017. The final
remaining 4 units have since been sold and the final R0,28 million was received in March 2017.
Greenoaks
Candlestick has title to a residential housing complex called Greenoaks in Centurion, Gauteng. These units are currently
being rented to tenants on annual leases (with renewal periods and rates subject to negotiation). Rental income of
R4,753,360 (2016: R5 314 558) has been recognised.
Greenoaks was transferred to Candlestick in August 2010 in settlement of amounts due to African Dawn Property Transfer
Finance 2 Proprietary Limited ("PTF 2") and Africa Dawn Property Transfer Finance 3 Proprietary Limited ("PTF 3") by Blue
Dot Properties 1198 CC ("Blue Dot"). PTF 3 is not part of the Afdawn Group.
In terms of an agreement between PTF 2 and PTF 3, any amount realised on disposal of the property less amounts payable
to Nedbank (under the first mortgage bond) less related costs less amounts due to certain other third parties will be
shared between PTF 2 and PTF 3 on a 50:50 basis in settlement of the balance of their respective loans to Blue Dot.
For this reason, the reconciliation above is split as follows:
a. Amount relating to legal title of entire property
b. Less PTF3 share of the property (50%)
c. Equals amount relating to Afdawn Group's share of the property (i.e. the 50% referred to above that is
in substance Afdawn Group's share of the property).
Blue Dot has since been placed in liquidation and there is a dispute in terms of which the liquidator is attempting to have
the property transferred back into the insolvent estate of Blue Dot. Negotiations between the Blue Dot liquidator and
Candlestick have concluded and a settlement has been reached whereby on the sale of the building the Nedbank bond
and selling costs will be settled first and the balance will be split in the following ratio PTF2 35%, PTF3 35% and Blue Dot
liquidator 30%.
The other claims against the property include:
d. A Nedbank loan, in terms of which Nedbank registered a first bond against the property. The original facility
was R14 100 000 and the amount outstanding at the reporting date was R6,164,210 (2016: R7 563 952) .
A sales agreement was entered into in April 2016, in terms of which the property will be sold for R32 500 000. The group expects
to realize R8 373 000 from the sale. The property was transferred on the 10 May 2017 and Candlestick has received their portion
of the proceeds and the Nedbank bond , PTF3 and the Blue Dot liquidator were settled in full.
3. Trade and other receivables
2017 2016
Trade receivables 50,672 53,865
Impairment allowance (20,602) (18,934)
Deemed interest adjustment (585) -
Deposits 267 293
VAT - 145
Other receivables 1,441 612
31,193 35,981
Certain trade receivables are used as security on related borrowings from the National Housing Finance Corporation
("NHFCE"). Refer to note 6.
4. Current tax receivable/(payable)
Current tax payable (16,280) (15,054)
(16,280) (15,054)
A Section 200 application was made in June 2013 and was declined in May 2015 on the basis that Afdawn Group's financial
position did not warrant a compromise. A new submission has subsequently been made to SARS with a view to reaching a
settlement on this, submitted in December 2016.
A liability has been recognised in full for all interest and penalties that are payable to SARS.
Change in estimate - interest and penalties on income tax and VAT liability.
As disclosed in the prior year financial statements an estimate was made of the current tax and vat liabilities relating to
Afdawn, and all related subsidiaries, plus the related interest and penalties that would be due to SARS. However, as a
result of the section 200 application to SARS being declined in May 2015 additional interest and penalties of R0,842 million
and R0,252 million vat.(2016: R0,938 million) were due.
5. Share capital and share premium
Authorised
50,000,000 50,000,000
125 000 000 Ordinary shares at 40c each
The total shares in issue as at 28 February 2017 amounted to 21,925,057 (2016: 877,002,273).
Reconciliation of number of shares in issue
Reported as at 01 March 877,002 880,270
Treasury shares cancelled 9 March 2015 - (3,268)
Share consolidation @ 1 share per 40 held (855,077)
21,925 877,002
Reconciliation of share values 'R000:
Reported at beginning of period 313,943 313,943
Movement - -
Reported at the end of the period 313,943 313,943
2017 2016
R'000 R'000
Share Premium 305,140 305,140
Ordinary shares 8,803 8,803
313,943 313,943
On 1 December 2014, the board resolved to apply to the JSE Limited for the treasury shares to be de- listed. These
shares were de-listed on 9 March 2015.
The board undertook to consolidate the shares in issue in order to improve the tradability per SENS The consolidation
was completed at 1 share for every 40 share held on 29 November 2016.
6. Borrowings
GROUP 2017 R'000 Present
Loan Value Deemed
Balance Adjustment interest Balance
DD Breedt 300 300
The loan bears interest of 10,5% per annum is secured by ceded
debtors and is repayable over 6 months.
HT Malan 200 200
The loan bears interest of 10,5% per annum is secured by ceded
debtors and is repayable over 6 months.
ME Malan 200 200
The loan bears interest of 10,5% per annum is secured by ceded
debtors and is repayable over 6 months.
JP Verwey 160 160
The loan bears interest of 10,5% per annum is secured by ceded
debtors and is repayable over 3 months.
PS Van Der Westhuizen 100 100
The loan bears interest of 10,5% per annum is secured by ceded
debtors and is repayable over 6 months.
National Housing Finance Corporation ("NHFCE") - 1,436 - - 1,436
Elite entered into a separate facility agreement whereby the
loan is secured on the associated debtors, bears interest at
prime +5% and is repayable over 5 years from the borrowing
date. Afdawn has provided a guarantee on the loan facility.
Sandown Capital loan - The convertible bond was not 3,898 - - 3,898
converted and new terms are as follows: The loan
bears interest at prime currently 10.5% + 1% and is repayable in
installments of R100,000 for 8 month and then R125,000
therafter. The loan is unsecured.
Sandown Capital Interest free portion loan - The loan 3,333 - - 3,333
bears interest at prime current 10.5% and is repayable in
instalments of starting in December 2016. The loan is unsecured.
up to R700,000
Nedbank mortgage bond - The loan is secured on fixed 6,164 - - 6,164
property. Interest is levied at prime -0.5% and the loan is
repayable in instalments of R172,932 per month. The bond
arose as part of a property in possession transaction. The
monthly instalments are funded through the cash generated
through operations at Greenoaks.
15,791 - - 15,791
GROUP 2016 R'000 Present
Loan Value Deemed
Balance Adjustment interest Balance
National Housing Finance Corporation ("NHFCE") - 2,576 - - 2,576
Elite entered into a separate facility agreement whereby the
loan is secured on the associated debtors, bears interest at
prime +5% and is repayable over 5 years from the borrowing
date. Afdawn has provided a guarantee on the loan facility.
Sandown Capital Elite Two loan - The loan is 580 - - 580
unsecured, bears interest at prime and is repayable in
instalments of per month plus accrued interest.
Up to R80,000.
Sandown Capital loan - The convertible bond was not 6,300 - - 6,300
converted and new terms are as follows: interest is charged
at prime, currently 9.25% per annum and repayments of
up to R700,000 plus interest per month in the short term. The
loan is unsecured.
Sandown Capital Interest free portion loan - The loan 3,333 - - 3,333
bears interest at prime current 10.5% and is repayable in
instalments of starting in December 2016. The loan is unsecured.
up to R700,000.
Nedbank mortgage bond - The loan is secured on fixed 7,564 - - 7,564
property. Interest is levied at prime -0.5% and the loan is
repayable in instalments of R172,932 per month. The bond
arose as part of a property in possession transaction. The
monthly instalments are funded through the cash generated
through operations at Greenoaks.
20,353 - - 20,353
Non-current liabilities
At amortised cost 6,316 7,829
6,316 7,829
Current liabilities
At amortised cost 9,475 12,524
9,475 12,524
15,791 20,353
7. Loans from directors and shareholders
2017 2016
EA Van Heerden ***
20 162
JK Van Zyl ***
20 162
A Bohmert ***
20 163
WJ Groenewald**
183 -
G Hope**
1,280 -
1,523 487
*** The directors loans are interest free, unsecured and are repaid on an
ad hoc basis. The loans arose as part of the Knife Capital Group
acquisition transaction detailed in the circular issued on 7 March 2014.
** These loans attract 2% interest per month are unsecured and are repaid
on an adhoc basis.
Reconciliation Knife Capital Group acquisition 2017 2016
First NAV liability 1,217 1,217
(interest free payable at R60 833 per month with effect from
November 2014) Repayments (1,157) (730)
Subtotal 60 487
*On 1 July 2015 as announced on SENS, the vendors of Knife Capital have released Afdawn from the second NAV liability
and the share issue liability. The outstanding balance of loans from directors on acquisition of Knife Capital is R.06 million (2016:
R0,487 million).
Non-current liabilities - -
Current liabilities 1,523 487
1,523 487
8. Trade and other payables
2017 2016
Trade payables 2,528 473
VAT 4,703 5,938
Accrued leave pay 1,206 1,055
Accrued expenses 2,067 4,165
Deposits paid on sale of Candlestick and Elite 2,000 -
Directors unpaid salaries 1,233 -
Accrued audit fees - 450
Deposits received 383 388
14,120 12,469
R 4,408,300 (2016: 5,781,412) of the VAT liability is also the subset of the submission to SARS.
9. Revenue 2017 2016
Rendering of service 9,978 7,303
Non-interest income (administration fees) 1,112 798
Rental income 4,753 5,315
Interest received 21,074 23,878
Insurance revenue 74 35
36,991 37,329
10. Other income
Bad debts recovered on trade receivables 788 738
Sundry income 132 1,077
Fair value adjustment - 2,095
Share of capital costs on sale of Greenoaks paid by 3rd parties 467
-
1,387 3,910
11. Operating loss
Operating loss for the year is stated after accounting for the following:
Operating lease charges
· Premises 2,341 2,608
· Equipment 536 498
2,877 3,106
Loss on sale of property, plant and equipment 5 13
Impairment to properties in possession - 3,284
Legal fees 864 1,686
Amortisation on intangible assets 1,683 1,671
Depreciation on property, plant and quipment 282 394
Employee costs * 22,006 16,968
*Included in employee expenses are the following :
- HBD Carry to Knife Vendors in terms of Knife Sales Agreement 3,350 -
- HBD Carry to Knife Vendors in terms of Knife Settlement Agreement 3,350 -
12. Finance costs 2017 2016
NHFCE interest 275 415
Finance leases - 15
Directors loans 143
Bank 2 34
Sandown Capital borrowing 880 880
Other loans 159 -
Penalties and interest on VAT 259 -
Penalties and interest on income tax 842 938
Nedbank bond interest 685 736
3,245 3,018
13. Auditors' remuneration
2017 2016
Fees 1,313 1,721
Tax and secretarial services - -
1,313 1,721
14. Cash used in operations
Loss before taxation (12,820) (6,944)
Adjustments for:
Depreciation 282 394
Loss on disposal of property, plant and equipment 5 (13)
Investment income (84) (346)
Finance costs 2,403 2,080
Fair value of contingent consideration - (4,095)
Non-cash finance costs (penalties and interest on income tax) 842 938
Amortisation of intangible assets - Non cashflow 1,683 1,670
Impairment of goodwill - Non cashflow 3,397 -
Reversal of nexus liabilities - Non cashflow (2,162)
Deemed interest expense - Non cashflow 585 552
Impairment of properties in possession (refer to note 2 ) - Non cashflow 971 3,283
Reversal of operating lease accrual - Non cashflow (28) 5
Changes in working capital:
Properties in possession 1,422 1,439
Trade and other receivables 4,204 3,853
Trade and other payables 3,824 736
Deferred income - (474)
Other financial assets
312 412
4,836 3,490
15. Events after the reporting period
Non-adjusting events
Elite Transaction
In June 2016, Afdawn and Dzothe Finance Solutions ("Dzothe Fin")entered into an revised agreement whereby Afdawn
will sell 100% of equity and certain shareholder claim of Elite , PTF1 and PTF2 to Dzothe Fin for a consideration of
R20million. African Dawn shareholders approved the Elite transaction in October 2016 . Dzothe paid the R2million deposit
but failed to make payment of R10million on Closing Date of transaction and Dzothe was in breach . Afdawn notified Dzothe
to remedy breach and after further negotiation Afdawn decided to cancel the transaction on 12 May 2017 in terms of the
agreement. Afdawn reserve it rights to claim and recover damages.
Disposal of properties in possession by Candlestick
A sales agreement was entered on 8 April 2016, in terms of which the property will be sold for R32 500 000. The group
expects to realize R8 373 000 from the sale. The property was transferred on the 10 May 2017 and Candlestick has
received their portion of the proceeds and the Nedbank bond , PTF3 and the Blue Dot Liquidator were settled in full.
16. Segment report
The segment information has been prepared in accordance with IFRS 8 - Operating Segments which defines the
requirements for the disclosure of financial information of an entity's operating segments. IFRS 8 requires
segmentation based on the group's internal organisation and reporting of revenue and operating income based upon
internal accounting methods.
The group discloses its operating segments according to the components regularly reviewed by the chief operating
decision-makers, being the executive directors. These amounts have been reconciled to the consolidated financial
statements. The measures reported by the group are in accordance with the accounting policies adopted for preparing
and presenting the consolidated financial statements. Segment revenue excludes value added taxation and includes
inter- segment revenue which is R2,642 million (2016: 2,642 million). Net revenue represents segment revenue from
which intersegment revenue has been eliminated. Sales between segments are made on a commercial basis. Segment
operating profit before capital items represents segment revenue less segment expenses. Segment expenses consist of
operating expenses. Depreciation, amortisation and impairments have been allocated to the segments to which they
relate.
The segment assets comprise all assets of the different segments that are employed by the segment and that are either
directly attributable to the segment, or can be allocated to the segment on a reasonable basis.
The group's reportable segments are based on the following lines of business:
a. Investment advisory and investment management
This segment consists of the Knife Capital Group which provides investment advisory and investment management
services to entrepreneurial and innovative companies.
b. Micro finance
This segment consists of Elite and Elite Two. These companies are involved in micro finance in the unsecured lending
industry and have a wide base of customers (mostly individuals).
c. Rentals of properties in possession
This segment consists of a residential complex with 76 units (a mix of 2 and 3 bedrooms), that are rented out on annual
leases to individuals.
d. Other
Other consists of the holding company together with other smaller entities not dealt with in other
segments. Segment information has been restated to comply with the segments identified above.
All the segments operate only in South Africa, largely in the Gauteng and Western Cape provinces therefore no
geographical information is provided. Similarly all non-current assets are in South Africa.
2017 Investment
advisory and Rentals of
investment Micro properties in
management finance possession Other Total
R'000 R'000 R'000 R'000 R'000
Revenue external 10,712 21,361 4,753 165 36,991
Cost of sales 366 366
Other income 36 787 484 80 1,387
Investment income 23 29 30 1 84
Finance costs - 1,434 685 1,126 3,245
Operating expenses 12,581 21,504 4 934 10 814 49 833
Impairment trade and other receivables 261 1,344 (68) 130 1,667
Bad debts actually written off - 2,641 133 - 2,774
Impairment of goodwill 450 - - 2,947 3,397
Deemed interest - - - 585 585
Impairment to property in possession - - 971 - 971
Depreciation and amortisation 53 527 4 1,380 1,964
Reduction on liability to Nexus liquidator - 2,162 - - 2,162
Profit/(loss) before taxation (2,176) 1,402 (352) (11,694) (12,820)
Taxation (455) - 193 (370) (632)
Other comprehensive income - - - - -
Total comprehensive (1,721) 1,402 (545) (11,324) (12,188)
Segment total assets 1,766 23,665 16,902 16 452 58 785
Segment total liabilities 1,581 11,692 8,334 26,865 48,472
Intangible assets acquired 30 274 - - 304
Goodwill - - - 4,679 4,679
Property, plant and equipment acquired - 44 - - 44
2016 Investment Rentals of
advisory and properties
investment Micro in
management finance possession Other Total
R'000 R'000 R'000 R'000 R'000
Revenue 8,641 24,348 5,315 (975) 37,329
Cost of sales 984 - - (145) 839
Other income (8) 922 6 2,990 3,910
Investment income 81 1 2 262 346
Finance costs - 2,013 736 251 3,018
Operating expenses 8,166 22,342 6,596 5,732 42,836
Impairment trade and other receivables - 1,317 589 - 1,906
Bad debts actually written off - 2,168 293 44,145 46,606
Fair value adjustments - - - - -
Deemed interest expense - 460 - 92 552
Impairment of property in possession - - 3,284 - 3,284
Depreciation and amortisation 39 648 2 1,376 2,065
Profit/(loss) before taxation (435) 1,617 (2,010) (6,116) (6,944)
Taxation (102) (62) 499 (369) (34)
Other comprehensive income - - - - -
Total comprehensive (333) 1,679 (2,509) (5,747) (6,910)
Segment total assets 3,340 28,480 17,512 22,704 72,036
Segment total liabilities 1,434 40,911 21,306 (14,116) 49,535
Intangible assets acquired 299 47 - - 346
Goodwill - - - 8,076 8,076
Property, plant and equipment acquired 55 505 10 - 570
17. Loss per share
Basic and diluted loss per share
Basic loss per share and diluted loss per share are calculated by dividing the loss attributable to equity holders of the
company by the weighted average number of ordinary shares in issue during the year excluding ordinary shares held as
treasury shares (refer to note 5).
Basic and diluted loss per share 2017 2016
From continuing operations (c per share) (55.6) (31.5)
(55.6) (31.5)
Reconciliation of loss for the year to basic loss
Loss from continuing operations (12,188) (6,910)
Basic loss (12,188) (6,910)
Reconciliation of weighted average number of ordinary shares used for basic and diluted loss per share and headline and
diluted headline loss per share
Number of ordinary shares in issue 877,002 877,002
Adjusted for: (855,077) -
Restatement of prior year (855,077)
Other movement - -
Weighted average number of shares used for loss and headline loss per share 21,925 21,925
Headline loss and diluted headline loss per share
Headline loss per share continued (c) (40.1) (31.6)
(40.1) (31.6)
2017
Gross Net
Loss from operations (12,188)
Loss on disposal of property, plant and equipment 5 4
Impairment of goodwill 3,397 3,397
Headline loss from operations (8,787)
2016
Gross Net
Loss from operations (6,910)
Profit on disposal of property, plant and equipment (13) (9)
(6,916)
18. Change in directors
Directors Office Designation Changes
WJ Groenewald Chief Executive Officer Executive
(CEO) and acting
Chairperson
V Lessing Independent non-
executive
HH Hickey Chair audit committee Independent non-
executive
SM Roper Independent non-
executive
Graham Hope Chief Financial Officer Executive
(CFO)
Administration
Registered office Company secretary
202 Waterfront Terraces A Rich(on behalf of Statucor Proprietary Limited)
Waterfront Road Auditors
Tygervalley Waterfront Grant Thornton
7530 Designated Advisor
Tel: +27 (12) 914 5566 PSG Capital
Transfer secretaries
Computershare Investor Services Proprietary Limited Rosebank Towers, 15 Bierman Avenue, Rosebank, Johannesburg, 2196
Date 31 May 2017
Date: 31/05/2017 05:29:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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