Sharenet Sites 
Sharenet Sites
LABAT AFRICA LIMITED
(FORMERLY ACREM HOLDINGS LIMITED)
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 86/01616/06)
("LABAT")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 1999
CONSOLIDATED INCOME STATEMENTS
UNAUDITED UNAUDITED AUDITED
6 MONTHS 6 MONTHS 11 MONTHS
31/08/99 30/09/98 28/02/99
R'000 R'000 R'000
TURNOVER 40 707 18 817 32 071
GROSS INCOME 30 329 12 587 23 629
OPERATING EXPENSES 22 042 11 700 21 774
NET INCOME BEFORE INTEREST AND TAXATION 8 287 887 1 855
NET INTEREST RECEIVED/(PAID) (2 382) (1 666) (3 352)
NET INCOME/(LOSS) BEFORE TAXATION 5 905 (784) (1 497)
TAXATION (616) - 289
NET INCOME AFTER TAXATION 5 289 (784) (1 208)
ATTRIBUTABLE TO OUTSIDE SHAREHOLDERS 214 - -
INCOME ATTRIBUTABLE TO SHAREHOLDERS 5 503 (784) (1 208)
WEIGHTED AVERAGE NUMBER OF SHARES ('000) 148 922 19 388 19 388
EARNINGS/(LOSS) PER SHARE (CENTS) 3,7 (4) (6,2)
HEADLINE EARNINGS/(LOSS)
PER SHARE (CENTS) 3,7 (4) (6,2)
CONSOLIDATED BALANCE SHEETS
UNAUDITED UNAUDITED AUDITED
AT AT AT
31/08/99 30/09/98 28/02/99
EMPLOYMENT OF CAPITAL R'000 R'000 R'000
NON-CURRENT ASSETS
INVESTMENTS 21 572 - -
FIXED ASSETS 8 432 1 106 1 182
NET CURRENT ASSETS 48 711 24 729 24 027
CURRENT ASSETS
CASH AND CASH EQUIVALENTS 20 125 9 10
INVENTORIES 15 013 3 524 3 250
TRADE AND OTHER RECEIVABLES 78 924 41 994 43 252
144 062 45 527 46 512
CURRENT LIABILITIES
BANK OVERDRAFT 4 389 4 411 6 355
SHORT-TERM DEBT 19 255 14 214 14 273
NON-INTEREST BEARING LIABILITIES
AND PROVISIONS 41 707 2 173 1 857
65 351 20 798 22 485
78 715 25 835 25 209
CAPITAL EMPLOYED
SHARE CAPITAL 1 827 776 776
SHARE PREMIUM 48 724 12 752 12 752
DISTRIBUTABLE RESERVES 7 748 2 668 2 245
SHAREHOLDERS' FUNDS 58 299 16 196 15 773
OUTSIDE SHAREHOLDERS (214) - -
TOTAL SHAREHOLDERS' FUNDS 58 085 16 196 15 773
LONG-TERM LIABILITIES 10 890 170 320
DEFERRED TAXATION 9 740 9 469 9 116
78 715 25 835 25 209
NUMBER OF SHARES IN ISSUE ('000) 182 721 19 388 19 388
NET ASSET VALUE PER SHARE (CENTS) 32 84 81
GROUP PROFILE
DURING THE PERIOD UNDER REVIEW, THE COMPANY, NAMED ACREM HOLDINGS LIMITED AND A
RETAILER OF A DIVERSIFIED RANGE OF MERCHANDISE, ACQUIRED THE BUSINESS OF
LABAT-ANDERSON (SA) (PTY) LIMITED WITH EFFECT FROM 1 JUNE 1999. SHARES WERE
THEN SUB-DIVIDED ON A FIVE-FOR-ONE BASIS, THE NAME WAS CHANGED TO LABAT AFRICA
LIMITED AND ITS LISTING WAS TRANSFERRED TO THE "VENTURE CAPITAL MARKET" SECTOR
OF THE JOHANNESBURG STOCK EXCHANGE ON 14 JUNE 1999.
LABAT AFRICA LIMITED IS NOW CONSTITUTED AS AN INNOVATIVE SOLUTIONS PROVIDER TO
PUBLIC AND PRIVATE SECTOR ENTERPRISE OFFERING SERVICES AND SOLUTIONS WHICH ARE
CUSTOMISED TO THE INDIVIDUAL REQUIREMENTS OF CUSTOMERS. LABAT AFRICA'S CORE
AREAS OF COMPETENCY ARE NOW FOCUSED ON TECHNOLOGY, MANAGEMENT SERVICES AND
SPECIALIST OUTSOURCING SERVICES.
COMMENTARY ON RESULTS
THE PRIOR PERIOD COMPARATIVE FIGURES ARE IN RESPECT OF THE RETAILING BUSINESS
OF ACREM HOLDINGS LIMITED. THE RESULTS OF LABAT-ANDERSON ARE INCLUDED IN THE
CURRENT PERIOD FOR THE 3 MONTHS TO 31 AUGUST 1999.
FOLLOWING THE SIGNIFICANT CHANGE IN THE NATURE OF THE GROUP'S BUSINESS,
ATTRIBUTABLE INCOME FOR THE SIX MONTHS ENDED 31 AUGUST 1999 INCREASED TO AN
ATTRIBUTABLE PROFIT OF R5,5 MILLION FROM A TRADING LOSS OF R784 000 IN THE
PRIOR PERIOD.
EARNINGS PER SHARE INCREASED TO 3,7 CENTS FROM A LOSS PER SHARE OF 4 CENTS IN
THE PRIOR YEAR PERIOD.
THE FEATURE OF THE PERIOD UNDER REVIEW IS THAT THE GROUP HAS REDUCED ITS
RELIANCE ON THE RETAIL SECTOR AND NOW COMPRISES THREE MAIN DIVISIONS NAMELY,
TECHNOLOGY, MANAGEMENT SERVICES, AND OUTSOURCING AND TRADING. EACH OF THESE
DIVISIONS CONTRIBUTED POSITIVELY TO EARNINGS FOR THE PERIOD UNDER REVIEW.
ACQUISITIONS
DURING THE PERIOD UNDER REVIEW THE GROUP CONCLUDED ACQUISITIONS IN STRATEGIC
AREAS OF ITS BUSINESS.
ARMADA RESOURCE MANAGEMENT AND DEPLOYMENT (PTY) LTD WHICH PROVIDES THE GROUP
WITH CORE COMPETENCIES IN THE DEVELOPMENT AND IMPLEMENTATION OF INFORMATION
TECHNOLOGY SOLUTIONS WAS ACQUIRED WITH EFFECT FROM 1 JULY 1999 FOR A CASH
CONSIDERATION OF R13 MILLION PAYABLE OVER 18 MONTHS. THIS AGREEMENT PROVIDES
FOR THE ISSUE OF ADDITIONAL SHARES ON THE ACHIEVEMENT OF FUTURE EARNINGS.
SOUTH AFRICAN MICRO-ELECTRONIC SYSTEMS (PTY) LTD, A NICHE MICRO-CHIP
MANUFACTURER WAS ACQUIRED WITH EFFECT FROM 1 JULY 1999 FOR A CASH CONSIDERATION
OF R9,6 MILLION. THE AGREEMENT PROVIDES FOR THE ISSUE OF ADDITIONAL SHARES ON
THE DELIVERY OF FUTURE EARNINGS.
BOTH ACQUISITIONS WILL SIGNIFICANTLY ENHANCE THE BUSINESS OF THE LABAT
TECHNOLOGY DIVISION.
ACME STORES (PTY) LTD ACQUIRED A FURTHER EIGHT STORES FROM DALES STORES (PTY)
LTD FOR A CASH CONSIDERATION OF R4,1 MILLION WITH EFFECT FROM 1 JUNE 1999. THIS
ACQUISITION HAS CREATED A STRONG BASE FROM WHICH TO ROLL OUT AN SMME FRANCHISE
NETWORK.
ALL ACQUISITIONS ARE PERFORMING WELL AND ARE EXPECTED TO MEET THEIR PROFIT
WARRANTIES.
YEAR 2000
THE GROUP HAS IN ALL MATERIAL RESPECTS COMPLETED ITS YEAR 2000 READINESS TESTS
TO ADDRESS THE SUSTAINED CONTINUITY OF BUSINESS PROCESSES, PROCEDURES, SYSTEMS
AND COMPUTER FACILITIES THROUGH 1999 AND BEYOND 2000.
THE DIRECTORS DO NOT FORESEE ANY CONTINGENT LIABILITY WITH REGARD TO THE
ARRIVAL OF THE YEAR 2000.
DIVIDENDS
IN ACCORDANCE WITH GROUP POLICY OF ANNUAL DISTRIBUTION, NO CAPITALISATION
SHARES HAVE BEEN ISSUED OR DIVIDEND DECLARED IN RESPECT OF THE PERIOD UNDER
REVIEW.
PROSPECTS
THE MAJORITY OF THE GROUP'S PROFITS WILL BE EARNED IN THE SECOND HALF OF THE
FINANCIAL YEAR WITH A FULL CONTRIBUTION FROM THE ACQUISITIONS AND BARRING
UNFORSEEN CIRCUMSTANCES, THE DIRECTORS ANTICIPATE THAT FORECAST EARNINGS OF
10,1 CENTS PER SHARE FOR THE YEAR ENDING 29 FEBRUARY 2000 CONTAINED IN THE
PRE-LISTING STATEMENT DATED 18 MAY 1999 SHOULD BE MET.
GOING FORWARD THE GROUP WILL CONTINUE TO EXPAND ITS BASE IN THE PUBLIC AND
PRIVATE SECTOR WITH ITS SELECTED NICHE MARKET SOLUTIONS AND SERVICES.
FOR AND ON BEHALF OF THE BOARD
26 NOVEMBER 1999
J J MODISE
CHAIRMAN
B G VAN ROOYEN
GROUP CHIEF EXECUTIVE
REGISTERED OFFICE TRANSFER SECRETARIES
LABAT AFRICA LIMITED MERCANTILE REGISTRARS LIMITED
LABAT HOUSE, CONSTANTIA PARK CENTRE 10TH FLOOR
CORNER 14TH AVENUE AND HENDRIK POTGIETER ROAD 11 DIAGONAL STREET
WELTEVREDEN PARK, 1709 JOHANNESBURG, 2001
(SUITE 248, PRIVATE BAG X09 (PO BOX 1053
WELTEVREDEN PARK, 1715) JOHANNESBURG, 2000)
SPONSORING BROKERS APPLETON SECURITIES
CORPORATE ADVISORS PSG INVESTMENT BANK
