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SABLE HOLDINGS LIMITED - AUDITED ANNUAL FINANCIAL RESULTS
SABLE HOLDINGS LIMITED
(`SABLE`)
Incorporated in the Republic of South Africa
(Registration No. 1968/010636/06)
Share code: SBL ISIN code: ZAE00006383
Audited Annual Financial Results
The audited group results for the year ended 30 June 2002 are as follows:
Abridged Consolidated Income Statement
Year ended Year ended
30 June 2002 30 June 2001
(Audited) (Audited)
R000 R000
Revenue 28,711 16,890
Operating profit 14,012 8,529
Net interest paid (2,086) (450)
Depreciation (1,055) (1,208)
Dividends received - 215
Profit before abnormal items 10,871 7,086
Net revaluation of investment
properties and companies held
for resale 1,957 -
Profit/(loss) on disposal of
investments in subsidiaries 334 (2,630)
Loss on disposal of operating assets - (56)
Net profit on disposal of investment
properties and companies held for resale 34 732
Profit on disposal of demutualisation
shares - 6,378
Profit before taxation 13,196 11,510
Taxation (1,592) (536)
Profit after taxation 11,604 10,974
Losses from associated companies (2,060) (2,055)
Share of retained losses (837) (316)
Impairment of investment (1,788) (1,739)
Revaluation of investment property 565 -
Net profit for the year 9,544 8,919
Weighted average number of ordinary
shares in issue during the year after
deducting those repurchased in the
buy-back programme (000) 8,002 8,803
Earnings per ordinary share (cents) 119.3 101.3
Headline earnings per ordinary share
(cents) 105.5 70.8
Dividend per ordinary share (cents) 20.0 -
Reconciliation between earnings and
headline earnings (R000)
Net profit for the year 9,544 8,919
Adjustments:
Net revaluation of investment properties
and companies held for resale (1,957) -
(Profit)/loss on disposal of investments
in subsidiaries (334) 2,630
Loss on disposal of operating assets - 56
Net profit on disposal of investment
properties and companies held for resale (34) (732)
Profit on disposal of demutualisation shares - (6,378)
Impairment of investment and revaluation
of investment properties - associates 1,223 1,739
8,442 6,234
Abridged Consolidated Cash Flow Statement
Year ended Year ended
30 June 2002 30 June 2001
(Audited) (Audited)
R000 R000
Cash inflow from operating activites 4,135 7,987
Cash generated by operations 8,174 9,902
Movements in working capital (1,302) 350
Net interest paid (2,261) (611)
Dividend received - 215
Dividend paid - (879)
Taxation paid (476) (990)
Cash outflow from investing activities (56,724) (2,060)
Cash inflow/(outflow) from financing
activities 50,350 (12,076)
Net decrease in cash and cash
equivalents (2,239) (6,149)
Cash and cash equivalents at the
beginning of the year 2,077 8,226
Cash and cash equivalents at the
end of the year (162) 2,077
Abridged Consolidated Balance Sheet
Year ended Year ended
30 June 2002 30 June 2001
(Audited) (Audited)
R000 R000
Assets
Non-current assets 146,838 87,825
Investment properties, plant and
equipment 95,097 39,970
Investments - other 38,792 32,554
Investments - associates 10,860 12,021
Companies held for resale 1,696 2,903
Deferred taxation 16 -
Loans receivable 377 377
Current assets 6,871 3,636
Inventories 3,327 75
Trade and other receivables 1,972 1,207
Cash and cash equivalents 1,572 2,354
Total assets 153,709 91,461
Equity and liabilities
Capital and reserves 90,950 84,973
Share capital and premium 19,083 22,521
Non-distributable reserves 10,916 13,282
Revaluation reserves 29,808 9,561
Retained profits 31,143 39,609
Non-current liabilities 52,261 3,200
Interest-bearing liabilities 51,229 3,200
Deferred taxation 1,032 -
Current liabilities 10,498 3,288
Trade and other payables 5,513 2,798
Interest-bearing liabilities 1,734 277
Interest-free liability 1,614 -
Current portion of interest-bearing
liability 1,180 -
Shareholders for dividends 2 2
Taxation payable 455 211
Total equity and liabilities 153,709 91,461
Number of ordinary shares in issue (000) 8,420 8,555
Less: Treasury shares repurchased (000) (850) -
7,570 8,555
Net asset value per ordinary share (cents) 1,202 993
Interest-bearing liabilities to total
capital and reserves (%) 59.5 4.1
Net interest-bearing liabilities to
income-earning assets (%) 41.6 1.6
Unlisted investments in associated
companies at directors` valuation (R000) 10,860 12,021
Abridged Statement of Changes in Equity
Year ended Year ended
30 June 2002 30 June 2001
(Audited) (Audited)
R000 R000
Balance at beginning of the year 84,973 66,974
Repurchase of shares by subsidiary (2,966) -
Cancellation of shares in issue (68) (125)
Reduction in share premium (405) (651)
Realisation of revaluation reserves (128) -
Net revaluation of investment properties
and companies held for resale - 9,856
Net profit for the year 9,544 8,919
Restated balance at end of the year 90,950 84,973
Balance at end of the year 90,950 75,117
Change in accounting policy - 9,856
Restated balance at end of the year 90,950 84,973
COMMENTS
Results
The group reported a net profit of R9.5 million for the year ended 30 June 2002
(June 2001: R8.9 million).Earnings per share increased from 101.3 cents to 119.3
cents at 30 June 2002. Headline earnings were R8.4 million (June 2001: R6.2
million) with headline earnings per share of 105.5 cents (June 2001: 70.8 cents)
reported. Revenue increased by 70% mainly through sectional title apartment
sales in a joint venture project. Operating profits increased 64% from R8.5
million to R14.0 million.
Interest paid amounted to R2.9 million (June 2001: R1.4million) as a result of
increased borrowings utilised to purchase investment properties during the year.
Investment properties has increased by R54.9 million through the purchase of
retail and commercial investment properties in the Johannesburg area.
Inventories of R3.3 million comprise mainly land for development and resale. The
carrying value of other investments has increased by R6.2 million to R38.8
million.
Interest-bearing borrowings at 30 June 2002 amounted to R54.1 million at an
average interest cost of 13.95%. At year end, 69.9% of borrowings were on fixed
rate contracts of between 1- and 3 years. Net borrowings currently represent
41.6% of income-earning assets.
A subsidiary of Sable has repurchased 985 299 of Sable`s shares for an amount of
R3.5 million during the year. 850 299 of these shares are being held as treasury
stock and the balance of the shares have been cancelled on the JSE Securities
Exchange South Africa during March 2002.
In accordance with AC416, the capital outlay of the share repurchase has been
offset against the share capital and premium account.
Earnings and headline earnings per share have been calculated on the weighted
average number of ordinary shares in issue during the year after deducting those
repurchased in the buy-back programme.
Activities from investment properties and trading properties for resale
In an extremely buoyant market, Sable has sold its remaining residential
portfolio in Kew and Melrose Estate, Johannesburg. Sable has however, acquired
2 hectares of prime land in Bryanston, Sandton, to be developed as townhouses
and apartments for resale during 2003. Other residential land for resale has
been purchased in Bryanston, Sandton, and Lonehill, Fourways, through joint
venture structures.
Sable Homes, an associate of Sable Holdings, has developed and let its
residential development at the Wanderers Country Club, Johannesburg.
The development consists of 66 x 2- and 3-bedroomed units and will be held as a
long-term investment. A further residential development by Sable Homes is
currently in progress in Allen`s Nek, Roodepoort.
A joint venture entered into for the acquisition and resale of 124 units in a
sectional title apartment complex in Glenhazel, Johannesburg, was successfully
concluded during March 2002 and added R2.3 million in net profits to the final
results.
A commercial office building has been purchased in Sunninghill, Sandton, during
September 2001 for R5.5 million. The building is occupied by a single tenant
with a five-year lease in place. 2 retail shopping centres were also acquired in
Bryanston, Sandton, and Midrand, Johannesburg, for R14.3 million and
R33.9 million respectively. The total lettable area of both centres is
approximately 12,300 sq m and is currently fully let.
A comprehensive internal valuation of the investment properties has been
concluded. These were valued at R96.6 million, giving rise to a net surplus of
R11.7 million,
of which R9.5 million has been accounted for as a prior year adjustment and R2.2
million as a revaluation surplus in the current year`s income statement.
Treasury Investments
Investments in domestics shares totalling R1.7 million were relatively unchanged
from June 2001. The investment in Appleton Group Limited grew exceptionally well
by R6.7 million to R36.7 million (June 2001: R30.0 million). Most of this growth
related to a depreciation of the rand against the dollar, with the capital value
of the investment being protected in turbulent international markets.
Prospects
The company will continue to look for opportunities in expanding and developing
its current investment properties and land for resale during the forthcoming
year, however being mindful of rising interest rates and consequently, a cooling
down of property sentiment.
Basis of preparation of financial statements
The financial statements have been prepared in accordance with South African
Statements of Generally Accepted Accounting Practice and the accounting policies
used are consistent with the prior year other than as set out below.
Change in accounting policy
In accordance with recently amended South African Statements of Generally
Accepted Accounting Practice, AC 135 has been adopted. This statement deals with
the benchmark treatment for revaluations and profits and losses on the sale of
investment properties. The company now recognises revaluations and net profits
and losses on sale of investment properties for the year in the income
statement. The comparative amounts relating to these changes have been
appropriately restated.
Audit report
The consolidated results for the year have been audited by Andre van der Merwe
and Associates and their unqualified audit report will be available for
inspection at the company`s registered office.
Dividend
Notice is hereby given that a cash dividend of 20 cents per share (2001: nil)
("the dividend") has been declared, payable to shareholders recorded in the
books of the company at the close of business on Friday, 1 November 2002.
Shareholders are advised that the last day to trade "cum" the dividend will be
Friday, 25 October 2002. Shares will trade "Ex" dividend as from Monday, 28
October 2002, and the record date will be Friday, 1 November 2002. Payment will
be made on Monday, 4 November 2002.
Share certificates may not be dematerialised or rematerialised during the period
Monday, 28 October 2002 to Friday, 1 November 2002, both days inclusive.
For and on behalf of the board
J Nash (Chairman)
PH Nash (Managing director)
26 September 2002
Registered address:
1st Floor, Sable Place, Fairway Office Park, 52 Grosvenor Road, Bryanston 2021.
PO Box 786390, Sandton 2146.
Transfer Secretaries:
Computershare Investor Services, 11 Diagonal Street, Johannesburg 2001. PO Box
1053, Johannesburg 2000.
Date: 27/09/2002 08:07:03 AM Supplied by www.sharenet.co.za
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