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Sekunjalo Investments Ltd- Interim Results for the period ended 28 February 2003 and further cautionary announcement Sekunjalo Investments Limited (Incorporated in the Republic of South Africa) Registration Number 1996/006093/06 Share Code: SKJ ISIN: ZAE000017893 ("Sekunjalo") Interim Results for the Period Ended 28 February 2003 HIGHLIGHTS Group Headline Earnings 31% Group Turnover 16% Headline EPS 31% GROUP INCOME STATEMENT Unaudited Unaudited 6 months 6 months Audited Group Group Group
to 28 Feb 2003 to 28 Feb 2002 to 31 Aug 2002 R"000 R"000 R"000 Revenue 176 801 151 788 346 013 Operating income 12 754 10 398 49 207 Finance cost (9 258) (9 478) (24 781) Profit before tax 3 496 920 24 426 Taxation (1 362) (136) (11 317) Income after tax 2 134 784 13 109 Income from associates - 26 4 219 Income 2 134 810 17 328 Minority shareholders interest (798) 293 (407) Net Income for the period 1 336 1 103 16 921 Headline earnings Attributable income 1 336 1 103 16 921 Goodwill written off/ Amortisation of dossiers 468 274 1 246 Profit on disposal of property, plant and equipment - - (1 562) Loss on permanent diminution of investment property - - 35 Loss on write-off of investments - - 109 Development costs written off - - 169 Headline earnings 1 804 1 377 16 918 Number of shares in issue 88 688 848 88 688 848 88 688 848 Headline earnings per share (cents) 2.03 1.55 19.08 Earnings per share (cents) 1.51 1.24 19.08 Diluted earnings per share (cents) 1.47 1.22 18.68 GROUP STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 28 FEBRUARY 2003 Non- Share Share Distributable Accumulated
Capital Premium Reserves Profit/(Loss) Total R"000 R"000 R"000 R"000 R"000 Balance at 31 August 2001 1 554 126 283 39 (122 510) 5 366 Net profit from ordinary activities - - - 1 103 1 103 Balance at 28 February 2002 1 554 126 283 39 (121 407) 6 469 Net profit from ordinary activities - - - 1 336 1 336 Balance at 28 February 2003 1 554 126 283 39 (120 071) 7 805 GROUP BALANCE SHEET Unaudited Unaudited
6 months 6 months Audited Group Group Group to 28 Feb 2003 to 28 Feb 2002 to 31 Aug 2002 R"000 R"000 R"000
ASSETS Non-current assets 133 338 135 940 140 925 Property, plant and equipment 66 916 64 837 64 746 Goodwill and intangible assets 15 895 21 696 19 051 Pharmaceutical dossiers 29 750 31 450 30 600 Investments (incl. Associate co"s) 6 250 9 744 12 741 Loans receivable 2 486 4 381 6 293 Deferred taxation 12 041 3 832 7 494 Current assets 159 505 129 409 162 516 Inventories 47 508 45 707 43 174 Trade and other receivables 59 084 55 508 62 921 Bank and cash on hand 52 913 28 194 56 421 TOTAL ASSETS 292 843 265 349 303 441 EQUITY and LIABILITIES Capital and Reserves Issued capital 127 837 127 837 127 837 Non-distributable reserves 39 39 39 Accumulated loss (120 071) (121 406) (106 176) 7 805 6 470 21 700 Non-current liabilities Interest-bearing borrowings 109 157 93 113 88 430 Non interest-bearing borrowings 1 842 22 468 449 Minority shareholders interest 52 540 49 910 46 251 Current liabilities 121 499 93 388 146 611 Trade and other payables 76 424 63 057 91 981 Bank overdraft 41 140 29 269 40 592 Receiver of revenue 3 935 1 062 14 038 TOTAL EQUITY and LIABILITIES 292 843 265 349 303 441 ABRIDGED CASH FLOW STATEMENT FOR THE PERIOD ENDED 28 FEBRUARY 2003 Unaudited Unaudited Audited 6 months 6 months 12 months
to 28 Feb 2003 to 28 Feb 2002 to 31 Aug 2002 R"000 R"000 R"000 Cash Flows From Operating activities (17 913) (12 924) 32 372 Cash Utilised By Investing activities (14 552) (13 638) (16 055) Cash Flows From Financing activities 28 409 31 491 5 516 Net (decrease)/increase in cash and cash equivalents (4 056) 4 929 21 833 Cash and cash equivalents at beginning of year 15 829 (6 004) (6 004) Cash and cash equivalents at end of year 11 773 (1 075) 15 829 OVERVIEW Sekunjalo Investments Limited has produced a favourable set of interim results for the period ended 28 February 2003. The interim results have been prepared on the historical cost basis in accordance with South African Statements of Generally Accepted Accounting Practice. Accounting policies, which have been applied, are consistent in all material respects with those applied in the previous year. Group turnover for the six-month period increased by 16% from R151,78 million to R176,80 million; Operating income increased from R10,39 million to R12,75 million; Headline earnings per share is up from 1,55 cents to 2,03 cents. The improved performance is due to the growth model and restructuring which the group has implemented. GROUP PROFILE Sekunjalo Investments Limited is a black-owned and controlled investment holding company, which listed on the JSE Securities Exchange SA in May 1999. It manages and controls its investments in Health Care, Information Technology and Industrial (primarily fishing) sectors. Sekunjalo Health Care (SHC) is the largest empowerment health care company in South Africa. Its core focus is the manufacture and distribution of branded medical consumables. Within the Industrial portfolio, Premier Fishing is the largest BEE fishing company in South Africa. It is competitive in the lobster, pelagic and squid markets, locally and internationally. Sekunjalo"s information technology interest in Health System Technologies (HST) is in a niche area, with synergies between HST and the health care businesses. REVIEW OF INVESTMENTS Sekunjalo Health Care (SHC) SHC has undergone a major restructuring which has included the streamlining of management to improve operational efficiencies and obtain optimal returns. The health care environment remains extremely competitive with limited financial support extended to BEE health care companies. This has constrained the growth of SHC and its ability to compete effectively in the market place. The sale of certain subsidiaries is under consideration, with a view to refocusing SHC on the pharmaceutical businesses. Sekpharma (Pty) Ltd Sekpharma continues to build on its relationship with multinational companies. This has provided Sekpharma with a solid base to increase its market share in pharmaceutical distribution. Promex Promex continues to be the dominant supplier of syringes and needles in the public sector. Rapimed Rapimed continues to obtain contracts in the public sector for diagnostic consumables. Sekunjalo Information Technology Health System Technologies (HST) Subsequent to the successful implementation of the first phase of the Health Information System (HIS) in the Western Cape Provincial Health department, HST has been awarded additional contracts by the Department, which has contributed to the positive performance of HST. Sekunjalo Industrials Premier Fishing Premier Fishing has performed favourably. The company continues to export to Asia, Europe and the USA. It has also focused on building strong local brands such as Pecks Anchovette, Redro and Seagro and has significantly increased its market share. The investment in an abalone aquaculture farm has benefited the company through increased exports. PROSPECTS The Group anticipates challenging trading conditions in the second half of the financial year due to the stronger Rand and the outbreak of the Severe Acute Respiratory Syndrome (SARS) epidemic in Asia, which will adversely affect our fishing subsidiary. This is likely to have a detrimental impact on second half earnings. The recent award by the BusinessMap Foundation to Sekunjalo of the "Top BEE Market Performer 2003" is a timeous acknowledgement of the resilience and performance of Sekunjalo. The award has reinforced the commitment of management and staff to raising performance levels within the Group to face the challenges that lie ahead. Sekunjalo is still actively pursuing the recovery of a substantial portion of its investment in LeisureNet. Shareholders will be kept informed about this initiative. FURTHER CAUTIONARY Further to the cautionary announcement dated 8 April 2003, shareholders are advised that the negotiations referred to therein are continuing. As these negotiations may have an effect on the price at which Sekunjalo shares trade on the JSE Securities Exchange SA, shareholders are advised to continue to exercise caution when dealing in their Sekunjalo shares until a further announcement is made. By order of the Board Dr WA Mgoqi Dr MI Surve Cape Town Chairman Chief Executive 21 May 2003 Directors Dr WA Mgoqi (Chairman), Dr MI Surve* (Chief Executive Officer), Ferhad Kahn CA(SA) (Financial Director), MY Kajee CA(SA) (Company Secretary), AJ Snyders, KC Patel, ZA Kota, D Case * Executive Directors Sponsor Sasfin Corporate Finance A Division of Sasfin Bank Limited Registered Address 70 Rosmead Avenue Kenilworth 7700 Transfer Secretaries Computershare Investor Services Limited 70 Marshall Street Johannesburg, 2001 Date: 21/05/2003 12:35:53 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department
