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MICROmega - Quaterly Results

Release Date: 03/06/2002 08:17
Code(s): MMG
Wrap Text

MICROmega - Quaterly Results MICROmega Holdings Limited (Incorporated in the Republic of South Africa) (Registration number 1998/003821/06 Share code MMG ISIN ZAE000034435 ("Micromega" or "the Company") UNAUDITED GROUP RESULTS For the three months ended 31 March 2002 Increase in attributable earnings 23% Increase in headline earnings 19% SUMMARISED INCOME STATEMENT 31 March 31 March Percentage UNAUDITED 2002 2001 Change R (` 000) R (` 000) Operating income 11 423 9 003 27 Interest income 705 623 Net income before taxation 12 128 9 626 26 Taxation 2 967 2 188 Profit attributable to shareholders 9 161 7 438 23 Weighted average number of shares 76 332 74 000 Headline earnings per share 12.0 10.1 19 ABRIDGED BALANCE SHEET 31 March 31 March 31 December UNAUDITED 2002 2001 2001 R (` 000) R (` 000) R (` 000) ASSETS Non-current assets 14 884 17 759 15 937 Goodwill 89 450 77 240 87 871 Current assets Accounts receivable 8 407 5 454 8 942 Bank balances 35 625 30 287 41 333 Total assets 148 366 130 740 154 083 EQUITY AND LIABILITIES Capital and reserves 91 736 74 381 69 273 Non-current liabilities 26 188 40 990 46 441 Current liabilities Taxation 3 941 4 400 4 790 Accounts payable 4 806 4 107 9 522 Income received in advance 10 839 1 362 10 839 Current provisions 10 856 5 500 13 218 Total equity and liabilities 148 366 130 740 154 083 COMMENTARY ON RESULTS We are pleased to report that our financial intermediary services continue to perform favorably. We are however disappointed with our ability in MICROmega Revenue Management Services to leverage earnings through the delivery of asset and liability management solutions into our revenue management client base. Our inability is primarily attributed to the slow down in public sector capital expenditure and the scarcity of long-term private sector investors willing to invest in the municipal debt market. Whilst we were aware of these fundamentals when we entered this market all indications from both Local Government and investors was the resurgence of infrastructural development with an improved perception of municipal debt investment during 2002. We believe that in the short to medium term this market condition will remain unchanged and we will therefore not place reliance on this sector as a contributor to superior profit growth. Whilst we are disappointed with our inability to add value to the municipal sector which we believe has need for our asset and liability management services we are pleased to report that our current revenue management business is responsible for the management of over R9 billion of annual municipal and public utility revenues. The business is performing well and we continue to enjoy strong market penetration and solid annuity income. MICROmega Securities, our inter-dealer brokering operation, continues to perform in line with expectation. Global Credit Ratings has had a successful first quarter. The higher reliance being placed on ratings in the local market and our strategic position as the leading rating agency on the African continent should ensure continued high earnings growth from this operation. Quarterly reporting The Board has elected to discontinue quarterly reporting and will in future only report the Groups interim and final financial results. By order of the Board Directors: J E Newbury (Non - Executive Chairman), I G Morris (Managing Director), A G Fletcher, M M Ngoasheng, F R Proudfoot Date: 03/06/2002 08:15:06 AM Produced by the SENS Department

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