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SEKUNJALO INVESTMENTS LIMITED - PRESS RELEASE

Release Date: 30/11/2004 07:30
Code(s): SKJ
Wrap Text

SEKUNJALO INVESTMENTS LIMITED - PRESS RELEASE SEKUNJALO INVESTMENTS LIMITED (Incorporated in the Republic of South Africa) (Registration number 1996/006093/06) Share code: SKJ ISIN: ZAE000017893 PRESS RELEASE SEKUNJALO RELEASES ANNUAL FINANCIAL RESULTS 29 November 2004 Sekunjalo Investments Limited today released its annual financial results for the year ended 31 August 2004. The results reveal headline earnings per share of 2,66 cents, group turnover of R311,6million, headline earnings of R 4,1 million and a net profit of R3,9million. CEO, Dr Iqbal Surve, described the results as a solid performance despite the impact of the strengthened rand on the Group"s industrial business in the fishing sector and the export business in the health sector. He indicated that the Group has taken into account in its future growth strategy that a strengthened rand is here to stay and hence has put in place a number of steps to decrease its dependence on exports and use the capital asset base of the group"s companies to focus on importing from the African continent as well as a stronger focus on its leading brands in the local market. Partially the decrease in earnings has been due to the strengthened rand but also a softening of the American market for lobster tails. An increased focus on the European market with the emphasis on live lobster exports over the next 12 months are some of the steps taken to offset the dependency on the dollar and the American market. The past financial year saw a surplus of canned fish in the South African market which resulted in pressure on canned fish prices as well as a decrease off take from the processing plant. However the past year showed a significantly strengthened performance from the pharmaceutical, diagnostic and information technology business from the group which showed a significant turnaround to a positive earnings as compared to the previous year. Sekunjalo is confident that the group strategy to build a significant pharmaceutical and diagnostic business in on track and is expecting the pharmaceutical business to become a significant contributor to the earnings of the group in the years ahead. Dr Surve said, "Of significance to our shareholders is that the group balance sheet has been substantially strengthened by a combination of the Rights Offer in February 2004 as well as a reduction in long-term borrowings. The net effect of the above is that the Group"s balance sheet has been strengthened by almost R100 million since the last financial year. The group now has a solid platform from which to make key acquisitions and grow through a targeted and selective acquisition strategy in line with its transformative business model." Sekunjalo recently announced its acquisition of 70 % of medical administrator and life assurance companies, Benmed and Bonlife, respectively, which is aimed at providing affordable solutions to the still untapped market of the poor and emerging black middle class. Shareholders should evaluate Sekunjalo on its underlying asset base, since the Group has built up a significant asset base, which if unlocked, will bring significant value to shareholders. "We look forward to the forthcoming period and unlocking value for Sekunjalo shareholders" said Dr Surve. Ends Issued by Zenariah Barends : Head Group Communications For further information call: Z Barends 082 441 0433 / 021 451 7976 Date: 30/11/2004 07:30:09 AM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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