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LABAT AFRICA LIMITED - INTERIM RESULTS AND FURTHER CAUTIONARY ANNOUNCEMENT LABAT AFRICA LIMITED (Incorporated in the Republic of South Africa) Share code: LAB ISIN: ZAE000018354 (Registration number 1986/001616/06) ("the company" or "the group") THE POWER TO DELIVER UNAUDITED RESULTS FOR THE HALF-YEAR ENDED 31 AUGUST 2004 GROUP CONSOLIDATED INCOME STATEMENT Unaudited Unaudited Reviewed 6 months 6 months 12 months 31-Aug-04 31-Aug-03 29-Feb-04
R"000 R"000 R"000 Revenue 97 343 90 433 175 651 Net operating income before depreciation and amortisation 4 065 13 065 7 019 Depreciation and amortisation (9 943) (6 668) (16 324) Net operating (loss)/income before interest and taxation (5 878) 6 397 (9 305) Interest paid (5 236) (6 426) (11 518) Interest received 139 518 931 Net (loss)/income before taxation (10 975) 489 (19 892) Taxation 3 919 1 922 6 896 Net (loss)/income after taxation (7 056) 2 411 (12 996) Attributable to outside shareholders (2 918) (1 241) (650) (Loss)/Income attributable to shareholders (9 974) 1 170 (13 646) Shares in issue throughout period (`000) 184 415 184 415 184 415 Basic (loss)/earnings per share (cents) (5,4) 0,6 (7,4) Headline (loss)/earnings per share (cents) (5,5) 0,6 (7,1) Reconciliation of basic to headline earnings: Basic (loss)/earnings (9 974) 1 170 (13 646) Goodwill 76 - 193 Profit/(Loss) on sale of assets (299) - 431 Headline (loss)/earnings (10 197) 1 170 (13 022) CASH FLOW STATEMENT Unaudited Unaudited Reviewed 6 months 6 months 12 months 31-Aug-04 31-Aug-03 29-Feb-04
R"000 R"000 R"000 Net flow from operating activities 9 341 (2 628) 3 302 Net flow from investing activities (17 831) (3 923) (23 233) Net flow from financing activities 13 861 (3 095) 2 727 Net increase/(decrease) in cash 5 371 (9 646) (17 204) Cash at beginning of period 5 351 22 555 22 555 Cash at end of period 10 722 12 909 5 351 GROUP CONSOLIDATED BALANCE SHEET Unaudited Unaudited Reviewed
6 months 6 months 12 months 31-Aug-04 31-Aug-03 29-Feb-04 R"000 R"000 R"000 ASSETS Fixed assets 48 391 51 285 46 567 Investments 58 552 47 672 55 386 Deferred taxation 26 493 17 871 21 980 Non-current assets 133 436 116 828 123 933 Cash 10 722 12 909 5 351 Inventory 22 262 33 614 26 337 Instalment sale debtors 84 430 91 135 92 913 Trade and other receivables 38 814 27 426 22 588 Current assets 156 228 165 084 147 189 Total assets 289 664 281 912 271 122 EQUITY AND LIABILITIES Share capital and reserves 130 508 154 723 138 539 Outside shareholders 8 096 8 004 5 178 Total shareholders" funds 138 604 162 727 143 717 Long-term liabilities 24 133 20 912 18 680 Deferred taxation 10 153 11 079 11 600 Non-current liabilities 34 286 31 991 30 280 Bank overdraft 29 345 15 986 21 113 Instalment sale bank finance 37 215 34 433 36 109 Accounts payable 50 214 36 775 39 903 Current liabilities 116 774 87 194 97 125 Total equity and liabilities 289 664 281 912 271 122 Number of shares in issue (`000) 184 415 184 415 184 415 Total net asset value per share (cents) 71 84 75 STATEMENT OF CHANGES IN EQUITY Share Share Distributable R"000 capital premium reserves Balance 29 February 2004 1 844 48 855 87 239 Sub-total 1 844 48 855 87 239 Loss for period (9 974) Acquisition of subsidiary Balance 31 August 2004 1 844 48 855 77 265 Non- Capital
distributable and R"000 reserves reserves Balance 29 February 2004 601 138 539 Sub-total 601 138 539 Loss for period (9 974) Acquisition of subsidiary 1 943 1 943 Balance 31 August 2004 2 544 130 508 COMMENTARY GENERAL During the period under review, world-wide trading conditions for the semi-conductor industry continued to have an adverse effect and the Rand strength added to these trading difficulties for SAMES. This has meant that the good performance of the other underlying businesses has been masked by the difficulties experienced by SAMES. However indications are that SAMES is recovering in line with the recovery of the international semi-conductor industry and coupled with the growth in our other businesses we are optimistic that the group will return to profitability in the medium term. RETAIL AND FURTHER CAUTIONARY ANNOUNCEMENT As previously reported, the credit retail business, because of its constant need for capital, would be sold. It no longer fits the strategy of the group, which is to grow our technology businesses. We are close to finalising an agreement to sell the business with the effective date of sale being as at 1 November 2004, subject to conditions precedent and the completion of the normal regulatory process. This sale will see a major reduction in the company debt. It is anticipated that a detailed announcement will be published in the near future. Accordingly, shareholders are advised to continue to exercise caution when dealing with their securities on the JSE Security Exchange South Africa, until such announcement is made. ACCOUNTING POLICIES The accounting policies applied are consistent with those applied in the previous year and are in compliance with South African Statements of Generally Accepted Accounting Practice. CORPORATE GOVERNANCE The group subscribes to the values of good corporate governance at all levels and is committed to conduct business with discipline, integrity and social responsibility. DIVIDENDS It is company policy that no dividends will be declared as group surpluses will be retained to fund future growth. For and on behalf of the board B G VAN ROOYEN Chairman 29 November 2004 Registered office Transfer secretaries Island House Computershare Investor Services 2004 (Pty) Ltd Constantia Park Centre 70 Marshall Street Corner 14th Avenue and Johannesburg Hendrik Potgieter Road 2001 Weltevreden Park PO Box 61051 1709 Marshalltown, 2107 Sponsor Brait Sponsors Date: 29/11/2004 03:36:58 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department
