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TREMATON CAPITAL INVESTMENTS LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 97/08691/06)
("TREMATON")
AUDITED RESULTS FOR THE YEAR ENDED 31 AUGUST 2000
AUDITED GROUP BALANCE SHEET
31 AUGUST 31 AUGUST
2000 1999
R'000 R'000
ASSETS
NON-CURRENT ASSETS 758 978 69 151
PROPERTY, PLANT AND EQUIPMENT 504 593
INVESTMENTS* 758 474 68 558
CURRENT ASSETS 9 079 67 969
SECURITIES HELD FOR TRADING - 4 034
ACCOUNTS RECEIVABLE 1 970 479
PROCEEDS ON SALE OF INVESTMENT - 12 000
TAXATION 341 62
CASH AND SHORT-TERM LOANS 6 768 51 394
TOTAL ASSETS 768 057 137 120
EQUITY AND LIABILITIES
ORDINARY SHAREHOLDERS' INTERESTS 748 763 126 154
NON-CURRENT LIABILITIES
CONVERTIBLE DEBENTURES 13 562 8 065
CURRENT LIABILITIES 5 732 2 901
ACCOUNTS PAYABLE 732 2 901
INVESTMENT ACQUISITION 5 000 -
TOTAL EQUITY AND LIABILITIES 768 057 137 120
NET ASSET VALUE PER SHARE (CENTS) 686 120
FULLY DILUTED NET ASSET VALUE
PER SHARE (CENTS) 650 123
NO OF SHARES IN ISSUE AT
31 AUGUST 2000 ('000) 109 200 105 000
DILUTED NUMBER OF SHARES
IN ISSUE ('000) 117 210 109 158
*90% OF INVESTMENTS COMPRISE LISTED SHARES HELD DIRECTLY AND INDIRECTLY BY THE
GROUP.
AUDITED GROUP INCOME STATEMENT
31 AUGUST 31 AUGUST
2000 1999
R'000 R'000
INVESTMENT INCOME 200 170
NET INTEREST RECEIVED 4 112 5 486
TRADING PROFIT 1 171 1 290
NET MANAGEMENT EXPENSES (2 630) (4 223)
PROFIT FROM OPERATIONS 2 853 2 723
FAIR VALUE MOVEMENTS 611 658 (27 080)
EXCEPTIONAL ITEMS - (22 068)
PROFIT/(LOSS) BEFORE TAXATION 614 511 (46 425)
TAXATION EXPENSE 583 368
PROFIT/(LOSS) AFTER TAXATION 613 928 (46 793)
SHARE OF RETAINED INCOME OF ASSOCIATES 302 2 295
PROFIT/(LOSS) FOR YEAR 614 230 (44 498)
RECONCILIATION BETWEEN EARNINGS AND
HEADLINE EARNINGS
PROFIT/(LOSS) ATTRIBUTABLE TO
SHAREHOLDERS 614 230 (44 498)
ADJUSTMENTS FOR:
FAIR VALUE MOVEMENTS 611 658 27 080
EXCEPTIONAL ITEMS - 22 067
HEADLINE EARNINGS ATTRIBUTABLE TO
SHAREHOLDERS 2 572 4 649
HEADLINE EARNINGS PER SHARE (CENTS) 2,4 6,3
EARNINGS/(LOSS) PER SHARE (CENTS) 573,5 (59,8)
WEIGHTED AVERAGE NUMBER OF SHARES
IN ISSUE ('000) 107 100 74 375
AUDITED CASH FLOW STATEMENT
31 AUGUST 31 AUGUST
2000 1999
R'000 R'000
CASH FLOWS FROM OPERATING ACTIVITIES
CASH ABSORBED BY OPERATIONS - (5 083)
DIVIDENDS PAID (30) (1 513)
TAXATION PAID (875) (4 299)
NET FINANCE CHARGE 4 112 5 487
NET CASH INFLOW/(OUTFLOW) FROM
OPERATING ACTIVITIES 3 207 (5 408)
NET CASH OUTFLOW FROM
INVESTING ACTIVITIES (52 871) (69 647)
NET CASH INFLOW FROM FINANCING
ACTIVITIES 5 475 59 995
NET DECREASE IN CASH AND
CASH EQUIVALENTS (44 189) (15 060)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF YEAR 46 394 61 454
CASH AND CASH EQUIVALENTS AT
END OF YEAR 2 205 46 394
STATEMENT OF CHANGES IN EQUITY
RETAINED
INCOME/
SHARE SHARE (ACCUMULATED
GROUP CAPITAL PREMIUM LOSS) TOTAL
R'000 R'000 R'000 R'000
BALANCE AT 1 SEPTEMBER 1998 525 103 498 6 704 110 727
ISSUE OF SHARES AT A PREMIUM 525 59 850 60 375
SHARE ISSUE EXPENSES (450) (450)
NET LOSS FOR YEAR (44 498) (44 498)
BALANCE AT 31 AUGUST 1999 1 050 162 898 (37 794) 126 154
ISSUE OF SHARES AT A PREMIUM 42 8 358 8 400
SHARE ISSUE EXPENSES (21) (21)
NET PROFIT FOR YEAR 614 230 614 230
BALANCE AT 31 AUGUST 2000 1 092 171 235 576 436 748 763
REVIEW OF RESULTS
TREMATON'S NET ASSET VALUE AT 31 AUGUST 2000 HAS INCREASED TO R749 MILLION
(1999: R126 MILLION) WHICH TRANSLATES INTO A NET ASSET VALUE PER SHARE OF 686
CENTS (1999: 120 CENTS). MORE THAN 90% OF ITS ASSETS ARE CURRENTLY HELD
OFFSHORE. OPERATING EXPENSES FOR THE YEAR WERE R2,6 MILLION (1999: R4,2
MILLION).
THE MOST SIGNIFICANT EVENT WHICH OCCURRED DURING THE PERIOD UNDER REVIEW, WAS
THE LISTING ON THE LONDON STOCK EXCHANGE OF INTEC TELECOM SYSTEMS PLC
("INTEC"). TREMATON HAD AN EFFECTIVE 7,38% SHAREHOLDING IN INTEC AT 31 AUGUST.
THIS LISTING HAS PROVED MOST SUCCESSFUL, WITH MARKET CAPITALISATION HAVING
INCREASED FROM 304 MILLION ON LISTING TO 921 MILLION AT 31 AUGUST 2000. INTEC
HAS NOW BEEN INCLUDED IN BOTH THE TECHMARK 100 AND FTSE 250 INDICES. INTEC IS A
PRODUCER AND DISTRIBUTOR OF TELECOM- RELATED SOFTWARE SOLUTIONS. ITS CORE
PRODUCT, INTERCONNECT, IS THE MARKET LEADER BY MARKET SHARE FOR INTERCONNECT
BILLING AND SETTLEMENT SOFTWARE SOLUTIONS. AT 31 AUGUST 2000, THE VALUE OF
TREMATON'S ATTRIBUTABLE SHAREHOLDING IN INTEC AMOUNTED TO R691 MILLION, BASED
ON INTEC'S SHARE PRICE OF 6,20.
DURING THE YEAR:
- TREMATON ACQUIRED A 25% SHAREHOLDING IN REAL AFRICA DUROLINK INVESTMENTS
(PTY) LTD, THE MANAGEMENT COMPANY OF AN IT INVESTMENT FUND, THE REAL TECHNOLOGY
TRUST, FOR A CASH CONSIDERATION OF R1,2 MILLION, WITH EFFECT FROM 1 NOVEMBER
1999. AN INVESTMENT OF R3 MILLION WAS ALSO MADE IN THE TRUST;
- TREMATON DISPOSED OF ITS 36% SHAREHOLDING IN SUPERCART HOLDINGS (PTY) LTD ON
22 DECEMBER 1999 FOR A CASH CONSIDERATION OF R5,5 MILLION;
- TREMATON ACQUIRED 30% SHAREHOLDING IN IT SERVICES GROUP SOUTHERN FOCUS
HOLDINGS (PTY) LTD ("SOUTHERN FOCUS") WITH EFFECT FROM 1 MARCH 2000 FOR A
PURCHASE CONSIDERATION OF R8,4 MILLION, SETTLED BY THE ISSUE OF 4,2 MILLION
TREMATON SHARES, AT AN ISSUE PRICE OF R2,00 PER SHARE. THE OPERATIONS OF
SOUTHERN FOCUS COMPRISE THE DELIVERY OF BUSINESS, TECHNOLOGY AND E-COMMERCE
SOLUTIONS TO MEDIUM AND LARGE CORPORATE AS WELL AS GOVERNMENTAL AND PARASTATAL
CLIENTS. SOUTHERN FOCUS ALSO HAS A CONTROLLING INTEREST IN AFRICAN PORT NETWORK
(PTY) LTD, A WEB-BASED PORTAL PROVIDING AN INDEPENDENT ON-LINE MARKETPLACE FOR
THE SHIPPING INDUSTRY;
- TREMATON ACQUIRED AN EFFECTIVE 11,59% SHAREHOLDING IN NEW AFRICA TECHNOLOGY
HOLDINGS (PTY) LTD ("NATH") FOR A CASH CONSIDERATION OF R58,58 MILLION. NATH
COMPRISED A MULTI-DISCIPLINARY IT GROUP WHICH HAS BEEN SUBSTANTIALLY
RESTRUCTURED DURING THE YEAR;
- TREMATON ACQUIRED A 40% SHAREHOLDING IN SOFTWARE DEVELOPER, EQUIS SOLUTIONS
(PTY) LTD, WITH EFFECT FROM 1 JUNE 2000 FOR A CASH CONSIDERATION OF R5 MILLION.
EQUIS DEVELOPS AND MARKETS SOFTWARE FOR NICHE COMMERCIAL APPLICATIONS. PRODUCTS
OWNED BY EQUIS INCLUDE SIMS, A SHARE INCENTIVE SCHEME MANAGEMENT SOLUTION;
COSEC, A COMPANY SECRETARIAL SOLUTION; AMS, A CHEQUE SIGNATORY MANAGEMENT
SYSTEM AND EMS, AN EMPLOYMENT EQUITY PROGRAMME MANAGEMENT SYSTEM; AND
- DIGITOT (PTY) LTD SUCCESSFULLY LAUNCHED ITS ELECTRONIC ALCOHOL DISPENSER
TOGETHER WITH RELATED LIQUOR MANAGEMENT SOFTWARE. THE UNITS ARE RENTED TO
ON-CONSUMPTION LIQUOR OUTLETS. SUBSEQUENT TO THE YEAR-END, IT HAS ALSO LAUNCHED
BEVACTIVE.CO.ZA, SOUTH AFRICA'S FIRST INDEPENDENT ON-LINE EXCHANGE FOR THE
LIQUOR INDUSTRY.
CHANGE IN ACCOUNTING POLICY
THE GROUP HAS ADOPTED AC 133 FINANCIAL INSTRUMENTS: RECOGNITION AND
MEASUREMENT. GAINS AND LOSSES ON SUBSEQUENT MEASUREMENT ARISING FROM A CHANGE
IN THE FAIR VALUE OF FINANCIAL INSTRUMENTS ARE INCLUDED IN NET PROFIT OR LOSS
FOR THE PERIOD IN WHICH IT ARISES.
PROSPECTS
TREMATON'S INVESTMENTS ARE CURRENTLY PERFORMING SATISFACTORILY. THE DIRECTORS
REMAIN COMMITTED TO INVESTING IN COMPANIES WHICH HAVE THE POTENTIAL TO YIELD
EXCEPTIONAL RETURNS.
BY ORDER OF THE BOARD
C W GARVIE
SECRETARY
27 NOVEMBER 2000
REGISTERED OFFICE POSTAL ADDRESS
THE MANOR HOUSE PO BOX 712
14 NUTTALL GARDENS DURBAN
MORNINGSIDE 4000
DURBAN
4001
TEL NO : 031-3039667
FAX NO : 031-3039694
E-MAIL : CGARVIE@TREMATON.CO.ZA
DIRECTORS: N A LABUSCHAGNE (CHAIRMAN), R B MCELLIGOTT (CEO), P DITZ, A EYAL, M
FARRER, M G MEEHAN, A J F MUNDELL, R E SHERRELL