Wrap Text
SEKUNJALO INVESTMENTS LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 96/06093/06)
("SEKUNJALO")
NOW IS THE TIME
* OPERATING PROFIT UP BY 133%
* HEADLINE EARNINGS PER SHARE UP BY 39%
* EARNINGS PER SHARE UP BY 75%
* EPS OF 28.5C EXCEEDS PROSPECTUS FORECAST BY 21%
FINAL AUDITED RESULTS FOR THE YEAR ENDED 31 AUGUST 1999
GROUP INCOME STATEMENT
ACTUAL PROFORMA AUDITED
12 MONTHS 12 MONTHS % 18 MONTHS
TO 31 AUG 99 TO 31 AUG 98 INCREASE TO 31 AUG 99
R000'S R000'S R000'S
TURNOVER 302 311 240 842 26% 391 676
OPERATING PROFIT 28 440 12 216 133% 27 242
NET INTEREST PAID (14 276) (9 229) (18 426)
NET INCOME BEFORE TAXATION 14 164 2 987 8 816
TAXATION (503) (7 088) 962
NET INCOME AFTER TAXATION 13 661 (4 101) 9 778
INCOME FROM ASSOCIATES 7 810 5 998 30% 7 810
NET INCOME 21 471 1 897 17 558
OUTSIDE SHAREHOLDERS'
INTEREST (9 085) 7 383 (4 823)
NET INCOME ATTRIBUTABLE TO
ORDINARY SHAREHOLDERS 12 386 9 280 33% 12 765
SHARES IN ISSUE (000'S) 88 689 88 689
WEIGHTED AVERAGE
NUMBER OF SHARES 43 363 56 855
EARNINGS PER SHARE 28.5 16.3 75%
HEADLINE EARNINGS PER
SHARE (CENTS) 24.2 17.4 39%
NET ASSET VALUE PER SHARE
(CENTS) 160 124
NET TANGIBLE VALUE PER
SHARE (CENTS) 94 108
GROUP BALANCE SHEET
AUDITED PROFORMA
AS AT AS AT
31 AUG 99 31 AUG 98
R000'S R000'S
CAPITAL EMPLOYED
SHAREHOLDERS' FUNDS 141 516 130 168
LONG-TERM LIABILITIES 69 704 76 738
OUTSIDE SHAREHOLDERS' INTEREST 134 063 117 606
345 283 324 512
EMPLOYMENT OF CAPITAL
FIXED ASSETS 89 872 94 382
GOODWILL 48 400 2 467
INVESTMENT & LOANS 156 537 107 373
DEFERRED TAXATION (4 706) (13 193)
CURRENT ASSETS 183 158 183 091
INVENTORIES 56 806 51 842
ACCOUNTS RECEIVABLE 81 858 59 752
BANK & CASH ON HAND 44 494 71 497
CURRENT LIABILITIES 127 978 49 608
ACCOUNTS PAYABLE 60 922 36 368
CURRENT PORTION OF LONG-TERM
LIABILITIES 37 952 2 197
BANK OVERDRAFT 25 619 9 891
TAXATION 3 485 1 152
NET CURRENT ASSETS 55 180 133 483
345 283 324 512
COMMENT
INTRODUCTION
THE BOARD OF DIRECTORS OF THE SEKUNJALO INVESTMENT GROUP IS DELIGHTED TO
ANNOUNCE THE MAIDEN RESULTS AS A LISTED COMPANY FOR THE YEAR ENDED AUGUST 31,
1999. SEKUNJALO IS LISTED IN THE "HOTEL AND LEISURE" SECTOR OF THE JOHANNESBURG
STOCK EXCHANGE.
SEKUNJALO, WHICH MEANS "NOW IS THE TIME" IN XHOSA, HAS EMERGED AS A SIGNIFICANT
GROUP WITH AN ENTREPRENEURIAL CULTURE AND A STRONG SENSE OF CORPORATE SOCIAL
RESPONSIBILITY.
SEKUNJALO'S SUSTAINABLE GROWTH STRATEGY INVOLVES ITS ABILITY TO INFLUENCE AND
ADD VALUE TO ITS INVESTMENTS RESULTING IN STRONG EARNINGS FROM ITS SUBSIDIARIES
AND ASSOCIATES. SEKUNJALO'S EMPLOYMENT OF INDUSTRY SPECIALISTS AND ITS MODEL
OF INCENTIVISATION HAVE RESULTED IN THE GROUP'S INVESTMENTS EXCEEDING FORECAST
FOR THE YEAR ENDED 31 AUGUST 1999.
DURING THE PAST YEAR, THE GROUP HAS ESTABLISHED ITSELF AS A MARKET LEADER IN
ITS BUSINESSES AND HAS DEVELOPED INNOVATIVE PRODUCTS, ACHIEVING AWARDS FOR
EXCELLENCE IN ENTREPRENEURSHIP.
GROUP FINANCIAL OVERVIEW
THE GROUP PRODUCED OUTSTANDING RESULTS FOR 12 MONTHS TO 31 AUGUST 1999. THE
GROUP'S TURNOVER INCREASED BY 26% FROM R241M TO R302M. EARNINGS PER SHARE
INCREASED BY 75% TO 28.5 CENTS FROM 16,3 CENTS RECORDED FOR THE COMPARABLE
PERIOD. OPERATING PROFIT FOR 12 MONTHS ROSE TO R28 MILLION FROM R12 MILLION -
AN INCREASE OF 133%. THE GROUP'S EARNINGS PER SHARE TO AUGUST 1999 EXCEEDED ITS
FORECAST BY 21%. HEADLINE EARNINGS PER SHARE INCREASED BY 39% TO 24,2 CENTS
FORM 17,4 CENTS RECORDED FOR THE COMPARABLE PERIOD. THE GROUP WAS ABLE TO
ACHIEVE THESE OUTSTANDING RESULTS DUE TO PRUDENT EMPLOYMENT OF CAPITAL AND THE
ABILITY TO DIRECTLY INFLUENCE ITS INVESTMENTS.
REVIEW OF INVESTMENTS
THE GROUP'S INVESTMENT CATEGORIES INCLUDE HEALTHCARE, LEISURE, INFORMATION
TECHNOLOGY, FINANCIAL SERVICES AND INDUSTRIAL INVESTMENTS. THE GROUP HAS
INVESTED IN NICHE AREAS IN THE ABOVE SECTORS WHICH ALLOWS IT TO BE A CATEGORY
LEADER VIA MOST OF ITS INVESTMENTS.
THE HIGHLIGHT OF THE PERIOD UNDER REVIEW HAS BEEN THE POSITIVE CONTRIBUTION TO
GROUP EARNINGS FROM ALL ITS INVESTMENTS. THIS IS ESPECIALLY COMMENDABLE IF IT
IS CONSIDERED THAT THE GROUP CONTROLS, MANAGES AND INFLUENCES DIVERSE
INVESTMENTS IN WHAT HAS BEEN A TOUGH TRADING ENVIRONMENT. FURTHERMORE, THE
GROUP'S INVESTMENTS IN DEVELOPING BUSINESSES AND JOINT VENTURES WITH
MICRO-ENTREPRENEURS HAVE STARTED CONTRIBUTING EARNINGS EARLIER THAN EXPECTED.
SEKUNJALO HEALTH CARE PERFORMED EXCEPTIONALLY WELL AND IS AN ENDORSEMENT OF THE
GROUP'S BUSINESS FORMULA OF INVESTING IN ESTABLISHED COMPANIES AS WELL AS IN
DEVELOPING JOINT VENTURES WITH MICRO-ENTREPRENEURS. SEKUNJALO HEALTH CARE,
THROUGH ITS STRONG EMPOWERMENT CREDENTIALS, HAS BEEN ABLE TO MAXIMISE
OPPORTUNITIES THAT HAVE ARISEN OUT OF CHANGES IN THE HEALTHCARE ENVIRONMENT. WE
ARE THEREFORE CONFIDENT OF THE GROWTH PROSPECTS AND OPPORTUNITIES OF THE
COMPANY AS A NICHE PROVIDER OF PRODUCTS AND SERVICES IN WHICH IT ENJOYS
SIGNIFICANT MARKET SHARE. SEKUNJALO'S COMPETITIVE ADVANTAGE ARISES OUT OF IT
HAVING STRONG BRANDS WITH BARRIERS TO ENTRY; BEING A LOW-COST MANUFACTURER WITH
THE ABILITY TO GENERATE INCREASED EXPORT SALES; BENEFITING FROM PUBLIC AND
PRIVATE SECTOR VENTURES; ALL UNDER THE LEADERSHIP OF A COMPETENT MANAGEMENT
TEAM. SEKUNJALO HEALTH CARE WILL CONTINUE TO BE A STRONG CONTRIBUTOR TO FUTURE
EARNINGS THROUGH BOTH ORGANIC GROWTH AND KEY ACQUISITIONS.
LEISURENET SEKUNJALO IS THE LARGEST SHAREHOLDER OF THE LISTED LEISURENET GROUP
AND IS PLEASED TO CONFIRM THAT IT HAS PERFORMED EXCEPTIONALLY WELL THROUGH ITS
CORE PRODUCT OF HEALTH AND FITNESS CLUBS. LEISURENET IS THE CATEGORY LEADER IN
FITNESS CLUBS, THROUGH ITS 83 HEALTH & RACQUET CLUBS IN SOUTH AFRICA, WITH MORE
THAN ONE MILLION MEMBERS. THE SOUTH AFRICAN BUSINESS IS WELL ESTABLISHED AND
CONTINUES TO GROW AND SUSTAIN OPERATIONAL MARGINS. LEISURENET'S AMBITIOUS
OFFSHORE PLAN IN EUROPE (GERMANY SPAIN & UK) AND AUSTRALIA WILL POSITION THE
COMPANY AS THE LARGEST MULTI-COUNTRY HEALTH AND FITNESS OPERATOR OVER THE NEXT
FEW YEARS. THE OFFSHORE EXPANSION COULD BE FOLLOWED BY SEPARATE LISTINGS OF
LEISURENET IN THE EUROPEAN AND AUSTRALIAN STOCK EXCHANGES. WE ARE CONFIDENT
THAT LEISURENET, THROUGH ITS PROVEN FORMULA, BRAND-BUILDING CAPABILITIES AND
COMPETENT MANAGEMENT WILL SUCCEED OFFSHORE. SEKUNJALO WILL CONTINUE TO PLAY AN
INFLUENTIAL ROLE IN THE DEVELOPMENT OF LEISURENET'S BUSINESSES THROUGH ITS
BOARD REPRESENTATION.
SEKUNJALO FINANCIAL SERVICES HAS EXCEEDED ITS FORECAST AND CONTRIBUTED TO GROUP
EARNINGS EARLIER THAN EXPECTED. IT HAS ESTABLISHED ITSELF AS A CORPORATE
FINANCIAL ADVISOR TO A NUMBER OF ENTERPRISES, ASSOCIATE BLACK EMPOWERMENT
GROUPS AND SUBSIDIARIES OF THE SEKUNJALO INVESTMENT GROUP.
SEKUNJALO FINANCIAL SERVICES CONTINUES TO ADVISE THE $12M TRILOGY FUND WHOSE
OBJECTIVE IT IS TO INVEST IN LISTED AND UNLISTED EMPOWERMENT COMPANIES.
SEKUNJALO'S STRATEGY TO INVEST IN NICHE AREAS WHERE IT HAS A COMPETITIVE EDGE
HAS SEEN IT DEVELOP A TEAM OF EXPERTS IN SECURITIZATION AND HAS RECENTLY
CONCLUDED AN ALLIANCE WITH POLICYLINK OF AUSTRALIA, A GLOBAL LEADER OF
SECURITIZED PRODUCTS IN THE INSURANCE INDUSTRY.
SEKUNJALO'S INFORMATION TECHNOLOGY INVESTMENTS DEVELOPED OUT OF ITS SYNERGIES
WITH ITS HEALTH AND INDUSTRIAL BUSINESSES. SYSTEC, A HEALTH INFORMATION SYSTEMS
PROVIDER HAS RECENTLY PROCURED SIGNIFICANT CONTRACTS TO PROVIDE HOSPITAL
INFORMATION TECHNOLOGY SOLUTIONS. SYSTEC HAS THE RIGHTS TO SOFTWARE FROM SMS
(SHARED MEDICAL SYSTEMS), ONE OF THE WORLD'S LARGEST HEALTH INFORMATION
TECHNOLOGY COMPANIES WHICH IS LISTED ON THE NEW YORK STOCK EXCHANGE. SEMTECH,
AN ENTERPRISE EFFICIENCY MANAGEMENT INFORMATION SOFTWARE COMPANY HAS DEVELOPED
PROPRIETARY SOFTWARE FOR LARGE-SCALE MANUFACTURING ENTERPRISES. THE GROUP WILL
CONTINUE TO ACQUIRE INFORMATION TECHNOLOGY COMPANIES AND DEVELOP ALLIANCES WITH
COMPANIES WHICH WILL RESULT IN SYNERGIES WITH THE GROUP'S CORE INVESTMENTS.
SEKUNJALO'S INDUSTRIAL INVESTMENTS INCLUDE ITS INVESTMENTS IN PREMIER FISHING
SOUTH AFRICA. PREMIER FISHING WAS ABLE TO DELIVER A SATISFACTORY PERFORMANCE
DESPITE SEASONAL FLUCTUATIONS AND THE DELAY IN ISSUING QUOTAS. AS ONE OF SOUTH
AFRICA'S LARGEST BLACK-CONTROLLED FISHING COMPANIES, PREMIER FISHING IS
WELL-POSITIONED TO BENEFIT FROM THE EMPOWERMENT CREDENTIALS OF THE SEKUNJALO
INVESTMENT GROUP WHICH IS IN ALIGNMENT WITH THE OBJECTIVES OF THE NEW LIVING
MARINE RESOURCES BILL.
SEKUNJALO'S VENTURES WITH EMERGING BUSINESSES IN FACILITIES MANAGEMENT, WASTE
CONVERSION AND OTHER INSIGNIFICANT STAKES HAVE NOT CHANGED.
PROSPECTS
THE GROUP'S PROSPECTS ARE EXCITING AS A RESULT OF ITS POSITION AS A MARKET
LEADER IN MOST OF ITS INVESTMENT SECTORS. AS A RENAISSANCE COMPANY IT HAS COME
TO REPRESENT A NEW WAVE OF BLACK ECONOMIC EMPOWERMENT BUILT ON SOUND
MANAGEMENT, ENTREPRENEURSHIP, PRUDENT INVESTMENT STRATEGY AND APPLIED CORPORATE
GOVERNANCE.
* SEKUNJALO HEALTH CARE IS EXPECTED TO INCREASE ITS EXPORT OF PATENTED AND
PROPRIETARY PRODUCTS INTO THE AFRICAN (ZIMBABWE, KENYA, NIGERIA), SOUTH
AMERICAN AND MIDDLE-EASTERN MARKETS. PLANS ARE AT AN ADVANCED STAGE TO EXPORT
SOME PRODUCTS INTO THE EUROPEAN AND NORTH AMERICAN MARKETS, SUBJECT TO THE
COMPLETION OF KEY REGULATORY REQUIREMENTS.
* LEISURENET, THROUGH ITS OFFSHORE BRAND, HEALTHLAND, HAS BECOME A CATEGORY
LEADER IN AUSTRALIA AND IS SET TO BECOME THE LEADING PLAYER IN HEALTH AND
FITNESS CLUBS IN GERMANY, UK, SPAIN AND SWITZERLAND. A LISTING OF LEISURENET ON
THE EUROPEAN AND AUSTRALIAN STOCK EXCHANGES IS PLANNED AND SEKUNJALO
SHAREHOLDERS SHOULD BENEFIT SUBSTANTIALLY FROM THIS.
* SEKUNJALO FINANCIAL SERVICES, THROUGH ITS MANAGEMENT OF THE $12M OFFSHORE
TRILOGY FUND IS WELL PLACED TO CONTINUE TO ATTRACT INTERNATIONAL CAPITAL AND
BENEFIT FROM ALLIANCES WITH INTERNATIONAL FINANCE BUSINESSES AND FUND MANAGERS.
THE GROUP'S RECENT ALLIANCE WITH POLICYLINK OF AUSTRALIA HAS POSITIONED IT WELL
IN THE S.A. SECURITISATION INDUSTRY.
THE SEKUNJALO INVESTMENT GROUP'S EMERGENCE AS A RENAISSANCE CORPORATE WITH A
TRACK RECORD OF ADDING VALUE TO ITS INVESTMENTS HAS POSITIONED IT WELL FOR
ORGANIC GROWTH FROM ITS SOUTH AFRICAN OPERATIONS. FURTHERMORE, ITS ABILITY TO
ATTRACT GOOD QUALITY DEAL FLOW ALLOWS IT TO SELECTIVELY ACQUIRE BUSINESSES
WITHIN ITS INVESTMENT CATEGORIES. THE GROUP IS EXPECTED TO GENERATE INCREASED
EARNINGS FROM ITS EXPORTS AND OFFSHORE BUSINESS EXPANSION AND IS THEREFORE AN
IDEAL RAND HEDGE AGAINST CURRENCY DEVALUATION.
YEAR 2000 COMPLIANCE
THE GROUP HAS UNDERTAKEN A COMPREHENSIVE INTERNAL REVIEW OF ALL EXISTING
COMPUTER AND INFORMATION TECHNOLOGY SYSTEMS, AND IS SATISFIED THAT ALL
INTERNALLY USED SYSTEMS ARE YEAR 2000 COMPLIANT.
DIVIDEND
IN VIEW OF SEKUNJALO'S INVESTMENT STRATEGY, THE GROUP'S POLICY IS TO RETAIN
ATTRIBUTABLE INCOME FOR GROWTH. THE DIRECTORS WILL PERIODICALLY REVIEW THIS
POLICY.
BY ORDER OF THE BOARD
ADV W MGOQI DR M.I SURVE'
CHAIRMAN CHIEF EXECUTIVE
CAPE TOWN
29 NOVEMBER 1999
DIRECTORS
ADV W MGOQI* (CHAIRMAN), DR M.I SURVE' (CHIEF EXECUTIVE OFFICER), M.Y KAJEE
CA(SA) (COMPANY SECRETARY), M.J MORIFI, M HEERDEN CA(SA), PROF L LOOTS, S
LEWIS*, R SERIA*, D GIHWALA*, A SNYDERS*, K PATEL*, K ROMAN*, D CASE* (ALT), Z
KOTA* (ALT)
*NON-EXECUTIVE
TRANSFER SECRETARIES REGISTERED ADDRESS
COMPUTERSHARE SERVICES LIMITED SEKUNJALO HOUSE
EDURA HOUSE 70 ROSMEAD AVENUE
41 FOX STREET KENILWORTH
JOHANNESBURG 7708
2001
Sharenet Sites 
