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Trematon Capital Investments Ltd - Reviewed results for the year ended 31 August 2002 and a cautionary announcement Trematon Capital Investments Ltd (Incorporated in the Republic of South Africa) (Registration number 1997/008691/06) Reviewed results for the year ended 31 August 2002 and a cautionary announcement Reviewed Audited
2002 2001 GROUP BALANCE SHEET R`000 R`000 ASSETS Non-current assets 26 158 107 062 Property, plant and equipment 586 801 Investments 25 572 106 261 Current assets 1 158 8 403 Accounts receivable 616 329 Proceeds on sale of investment - 4 800 Taxation 178 174 Cash and short-term loans 364 3 100 Total assets 27 316 115 465 EQUITY AND LIABILITIES Ordinary shareholders` interests 23 276 93 399 Non-current liabilities Convertible debentures - 13 562 Current liabilities 4 040 8 504 Accounts payable 595 3 222 Interest-bearing debt 3 445 5 282 Total equity and liabilities 27 316 115 465 Net asset value per share 22 cents 86 cents Fully diluted net asset value per 22 cents 91 share cents 105 168 Number of shares in issue at 31 August 109 200 (000) 105 168 117 210
Diluted number of shares in issue (000) Reviewed Audited 2002 2001
GROUP INCOME STATEMENT R`000 R`000 Net interest received 817 136 Operating costs (2 022) (3 298) net management expense (1 444) (2 472) listing, statutory and professional (578) (826) costs Loss from operations (1 205) (3 162) Investment valuation adjustments (59 602) (649 611) Loss before taxation (60 807) (652 773) Taxation expense - 5 Loss after taxation (60 807) (652 778) Share of accumulated loss of associates (1 252) (2 586) Loss for the year (62 059) (655 364) Reconciliation between loss and headline loss Loss attributable to shareholders (62 059) (655 364) * Investment valuation adjustments (59 602) (649 611) Headline loss attributable to (2 457) (5 753) shareholders Headline loss per share (2,25) (5,26) cents cents Loss per share (56,8) (600,2) cents cents Weighted average number of shares in 109 200 109 200 issue (000) * Investment valuation adjustments - Loss on disposal of - (4 685) investments - Investments in associates (2 812) (12 148) written down - Market valuation (64 854) (632 778) adjustments - Reversal of amounts 8 064 - previously written off against associate 59 602 (649 611)
Reviewed Audited GROUP CASH FLOW STATEMENT 2002 2001 R`000 R`000 Cash flows from operating activities Cash absorbed by operations (4 832) (6 933) Taxation (paid) refund (4) 162 Net finance income 817 136 Net cash outflow from (4 019) (6 635) operating activities Net cash inflow (outflow) 6 219 (852) from investing activities Net increase/(decrease) in 2 200 (7 487) cash and cash equivalents Cash and cash equivalents at (5 282) 2 205 beginning of year Cash and cash equivalents at (3 082) (5 282) end of year STATEMENT OF CHANGES IN EQUITY Retained
Share Share income Group capital premium (accumulated Total loss) R`000 R`000 R`000 R`000
Balance at 31 1 092 171 235 576 436 748 763 August 2000 Net loss for the (655 364) (655 364) year Balance at 31 1 092 171 235 (78 928) 93 399 August 2001 Shares cancelled (40) (8 024) (8 064) Net loss for the (62 059) (62 059) year Balance at 31 1 052 163 211 140 987 23 276 August 2002 REVIEW OF RESULTS During the year under review, Trematon`s net asset value per share decreased from 86 cents to 22 cents mainly as a result of the fall in share price of Intec Telecom Systems Plc ("Intec"). The headline loss per share for the year of 2,25 cents compares with the headline loss with 5,26 cents in 2001. The loss per share after the negative investment valuation adjustment amounted to 56,8 cents (2001 : 600,2 cents). Trematon`s most significant asset remains its attributable shareholding in Intec, held indirectly by Mican Limited ("Mican"). The prevailing negative market sentiment towards the IT and telecoms sectors has continued to impact adversely on the value of Intec shares, which fell from 83p in 2001 to 22p at 31 August. The value of the group`s other IT investments, namely its attributable investments in Iocore Oy (Finland) Adaptive Systems (Denmark, Norway, Sweden) and Iocore SA (South Africa) held by Mican and Gracefield Investments (Pty) Ltd ("Gracefield") has also been negatively affected by market conditions and sentiment. The R64,8m investment valuation adjustment resulted from the reduced valuations of the Intec investment and the Group`s other IT related investments. During the period, Generation Clothing performed well, increasing revenues and profitability through exports. Digitot launched commercial models of its alcohol spirit, draft beer and cold drink dispensers together with its related bar management systems during the period, following lengthy field trials. While these products have gained favourable market response in South Africa and the United Kingdom, because the Digitot business model comprises renting dispensing equipment to customers and thus recognising revenue over the period of the rental agreements, Digitot is only expected to reach break-even level during 2003. During the year, the agreement in terms of which Trematon acquired its 30 percent shareholding in Southern Focus Holdings Ltd in 2001 was cancelled. This investment had been fully provided against in 2001. By agreement, Trematon cancelled 4 032 000 ordinary shares which had been issued to vendors. Trematon also disposed of its 40% shareholding in software developer Equis Holdings (Pty) Ltd to the Equis management for a nominal consideration. This investment had also been written off in full in 2001. The outstanding convertible debentures amounting to R10,362m issued by Trematon pursuant to its Share Incentive Scheme have been redeemed in terms of the Rules of the Scheme. The proceeds received by the Trematon Share Incentive Trust were utilised to repay its indebtedness to the Group. Accounting policies The financial statements of the Group comply with South African Statements of Generally Accepted Accounting Practice and are consistent with those applied in the previous financial year. Prospects Prospects for Trematon`s investment portfolio continue to be linked to global IT and Telecoms markets which appear to have started demonstrating signs of a cautious recovery. Review by auditors The company`s auditors, KPMG Inc., have reviewed these results. Their review opinion is available on request from the Company Secretary. CAUTIONARY ANNOUNCEMENT Trematon shareholders are advised that proposals are being considered which, if implemented, may have an effect on Trematon`s share price. Mican and Gracefield are currently negotiating a restructure of their funding requirements with their financiers. It is anticipated that Trematon will require to finance its attributable share of the debt to facilitate it taking direct ownership of its share of the underlying investments. Various alternatives are currently being investigated by Trematon regarding the financing of this debt as well as Trematon`s other funding requirements. Trematon shareholders are accordingly advised to exercise caution when dealing in their shares until a further announcement is made which is expected to be on or about 31 January 2003. By order of the board CW GARVIE SECRETARY 26 November 2002 Registered office Postal address The Manor House PO Box 712 14 Nuttall Gardens Durban Morningside 4000 4001 Telephone: (031)303-9667 Fax: (031)303-9694 Directors: NA Labuschagne (Chairman), RB McElligott (CEO), P Ditz, M Farrer, MG Meehan, AJF Mundell, RE Sherrell Transfer secretaries : Computer Share Investors Services Limited, 70 Marshall Street, Johannesburg 2001 Date: 26/11/2002 07:45:00 AM Supplied by www.sharenet.co.za Produced by the JSE SENS Department
