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FOR THE 6 MONTHS ENDED 29 FEBRUARY 2000 (INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA) (REGISTRATION NUMBER 96/06093/06) (SEKUNJALO - NOW IS THE TIME) COMMENTARY GROUP PROFILE
SEKUNJALO INVESTMENTS LTD., HAVING CONSOLIDATED ITS POSITION AS A BLACK EMERGING CORPORATE, LISTED ON THE JOHANNESBURG STOCK EXCHANGE IN MAY 1999 AS AN ECONOMIC EMPOWERMENT GROUP WITH A DIVERSE INVESTMENT PORTFOLIO.
SEKUNJALO HAS SUBSEQUENTLY IDENTIFIED HEALTHCARE AND LEISURE AS ITS PRIMARY FOCUS. SEKUNJALO HAS A 32% EQUITY INTEREST IN SEKUNJALO HEALTHCARE, WHICH IS THE SINGLE LARGEST BLACK CONTROLLED HEALTHCARE COMPANY IN SOUTH AFRICA (EXCLUDING HOSPITALS). SEKUNJALO IS IDEALLY POSITIONED TO EXPLOIT AND BENEFIT FROM THE MANY OPPORTUNITIES IN THE PUBLIC AND PRIVATE SECTOR.
SEKUNJALO IS ALSO THE SINGLE LARGEST SHAREHOLDER OF THE LEISURENET GROUP, WHICH IS THE LEADER IN THE SOUTH AFRICAN FITNESS MARKET.
LEISURENET IS ALSO RECOGNISED AS A DOMINANT PLAYER IN THE INTERNATIONAL FITNESS MARKET THROUGH ITS HEALTHLAND OPERATION, LOCATED IN THE UK, EUROPE AND AUSTRALIA. FINANCIAL PERFORMANCE
THE RESULTS ACHIEVED ARE IN KEEPING WITH THE RESPECTIVE MANAGEMENT TARGETS FOR THE FIRST HALF OF THE FINANCIAL YEAR AND REFLECT THE SEASONALITY ASSOCIATED WITH THE FISHING INDUSTRY IN PARTICULAR. MANAGEMENT ARE CONFIDENT OF MEETING THEIR PERFORMANCE OBJECTIVES FOR THE YEAR. ACCORDINGLY THE GROUP IS PLEASED TO REPORT THAT: - TURNOVER HAS INCREASED BY 53% - OPERATING INCOME IS UP BY 129% - HEADLINE EARNINGS PER SHARE IS UP BY 157% OPERATIONAL REVIEW AND PROSPECTS
THE GROUP, COMPARED TO THE SAME PERIOD LAST YEAR HAS CHANGED SIGNIFICANTLY. IN PARTICULAR SEKUNJALO HEALTHCARE HAS MADE SIGNIFICANT PROGRESS AND HAS BECOME A MORE FOCUSSED ENTITY, DISPOSING OF OPERATIONS WHICH DO NOT STRATEGICALLY FIT INTO HEALTHCARE'S CORE BUSINESS.
SEKUNJALO HEALTHCARE IS POISED TO BECOME A STRONG CONTRIBUTOR TO EARNINGS. AS A CONSEQUENCE OF ITS EMPOWERMENT STATUS, COMBINED WITH THE LOCAL MANUFACTURING OF STRONGLY BRANDED PRODUCTS, IT HAS ACHIEVED SUCCESS IN THE STATE TENDER MARKET IN ITS NICHE CATEGORIES. AN INCREASED PORTFOLIO OF PRODUCTS HAS RESULTED IN INCREASED PENETRATION INTO THE PRIVATE MARKET DRIVEN BY AN EXPERIENCED NATIONAL SALES TEAM. LEISURENET CONTINUES TO BE A MAJOR CONTRIBUTOR TO THE GROUP'S EARNINGS.
SEKUNJALO INTENDS ESTABLISHING THE "SEKUNJALO AFRICA EQUITY FUND" TO HOLD ITS OTHER INVESTMENTS. SEKUNJALO'S FISHING SUBSIDIARY, PREMIER FISHING, WHILST BEING AFFECTED BY THE TURMOIL IN THE ALLOCATION OF FISHING QUOTAS DOMINATES THE LOCAL FISH SPREADS MARKET THROUGH ITS STRONG 'PECKS ANCHOVETTE' AND 'REDRO' BRANDS. IN ADDITION, LOBSTER EXPORTS CONTINUE TO PROVIDE A STRONG RAND HEDGE COMPONENT OF EARNINGS.
THE DIRECTORS OF SEKUNJALO ARE CONFIDENT ABOUT PROSPECTS FOR THE SECOND HALF OF THIS YEAR DESPITE THE VOLATILITY OF TRADING CONDITIONS. LIST OF DIRECTORS
ADV. W A MGOQI (CHAIRPERSON) - *DR. MI SURV (CHIEF EXECUTIVE) *M Y KAJEE CA (SA) - M J MORIFI - PROF L J LOOTS - S R LEWIS - R A SERIA - D C M GIHWALA - P J HAYES A SNYDERS - K C PATEL - K B ROMAN - D CASE - Z A KOTA * EXECUTIVE DIRECTORS GROUP INCOME STATEMENT
UNAUDITED PROFORMA UNAUDITED
6 MONTHS 6 MONTHS
ENDED ENDED
29 FEBRUARY 28 FEBRUARY 2000 1999
R 000'S R 000'S
%INCREASE REVENUE R162 823 R106 125 53
OPERATING INCOME/(LOSS) 2 557 (8 769) 129 FINANCE (COST)/INCOME (3 925) (11 145)
LOSS BEFORE TAXATION (1 368) (19 914)
INCOME TAX GAIN/ (EXPENSE) (2 543) 1 100
LOSS AFTER TAXATION (3 911) (18 814) LOSS ON DISPOSAL OF SUBSIDIARY (4 663) -
INCOME FROM ASSOCIATES 9 061 1 560
OUTSIDE SHAREHOLDERS PORTION 317 8 447 NET PROFIT/(LOSS) FOR THE
PERIOD 804 (8 807) 103 HEADLINE EARNINGS
ATTRIBUTABLE INCOME/ (LOSS): 804 (8 807) GOODWILL WRITTEN OFF 1 235 341 PROFIT ON SALE OF ISOSTER (2 206) - LOSS ON DISPOSAL OF PATHNET 13 762
OUTSIDE SHAREHOLDERS INTEREST (8 650) (253)
HEADLINE EARNINGS 4 945 (8 719) 157 WEIGHTED AVERAGE NUMBER 44 344 424 44 344 424 OF SHARES IN ISSUE
HEADLINE EARNINGS PER SHARE 11 (20) 157 (CENTS)
EARNINGS PER SHARE 2 (20) 109 (CENTS) GROUP BALANCE SHEET
UNAUDITED PROFORMA UNAUDITED
6 MONTHS 6 MONTHS
ENDED ENDED
29 FEBRUARY 28 FEBRUARY 2000 1999
R 000'S R 000'S ASSETS
NON CURRENT ASSETS 326 925 168 926
PROPERTY, PLANT AND EQUIPMENT 74 391 72 885
GOODWILL & INTANGIBLES 85 652 24 105
INVESTMENTS 165 541 70 273
LOANS RECEIVABLE 1 341 1 663
CURRENT ASSETS 180 306 99 247
INVENTORIES 65 221 41 731
ACCOUNTS RECEIVABLE 111 761 51 769
BANK AND CASH ON HAND 3 324 5 747
TOTAL ASSETS 507 231 268 173 EQUITIES AND LIABILITIES CAPITAL AND RESERVES
SHARE CAPITAL 127 975 62 462 NON DISTRIBUTABLE RESERVE 426 -
RETAINED INCOME 13 269 (9 608)
NON CURRENT LIABILITIES 82 556 91 170
DEFERRED TAXATION 4 378 10 742
INTEREST BEARING DEBT 77 892 80 428 SHAREHOLDERS LOANS 286 -
OUTSIDE SHAREHOLDERS INTEREST 143 636 77 958
CURRENT LIABILITIES 139 369 46 191
ACCOUNTS PAYABLE 111 623 33 253
BANK OVERDRAFT 24 556 11 862
TAXATION 3 190 1 076
TOTAL EQUITY AND LIABILITIES 507 231 268 173 NET ASSET VALUE (CENTS) INCLUDING INTANGIBLES PER SHARE 160 61 NET ASSET VALUE (CENTS) EXCLUDING INTANGIBLES PER SHARE 63 34 SEKUNJALO INVESTMENTS LTD (REG NO. 96/06093/06) 70 ROSMEAD AVENUE KENILWORTH 7708 CAPE TOWN SOUTH AFRICA TEL: +2721 683 9100 FAX: +2721 683 0417
