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Labat Africa Limited - Abridged Report On The Audited Financial Results For The Year Ended 28 February 2005 And Notice Of Annual General Meeting LABAT AFRICA LIMITED Incorporated in the Republic of South Africa Registration number 1986/001616/06 Share code: LAB ISIN: ZAE000018354 ("Labat" or "the group") Restatement of certain financial figures. Set out below is a restatement of the reviewed provisional results for the year ended 28 February 2005 dated 31 August 2005 relating to the accounting of operating leases. The following adjustments have been made: Additional operating lease expenses of R0,2 million in 2005, R0,1 million in 2004, R0,4 million in 2003 and R1,5 million in the years prior to 2003. GROUP BALANCE SHEET Audited Restated Restated 28 February 29 February 28 February 2005 2004 2003
(R"000) (R"000) (R"000) Assets Property, plant and 53 726 46 567 53 201 equipment Intangible assets 34 984 46 157 26 646 Other investments 2 032 2 285 446 Deferred taxation 22 492 21 981 13 912 Non-current assets 113 234 116 990 94 205 Inventory 22 196 26 337 35 417 Trade and other 89 933 116 188 123 351 receivables Cash and cash equivalents 3 295 5 351 22 555 Current assets 115 424 147 876 181 323 Total assets 228 658 264 866 275 528 Equity and liabilities Capital and reserves 69 878 130 474 146 070 Minority Interest 8 584 5 097 4 369 Long-term liabilities 22 665 20 941 25 944 Deferred taxation 2 835 10 948 11 471 Non-current liabilities 25 500 31 889 37 415 Trade and other payables 59 817 40 184 37 436 Bank overdraft 64 879 57 222 50 238 Current liabilities 124 696 97 406 87 674 Total equity and 228 658 264 866 275 528 liabilities GROUP INCOME STATEMENT Audited Restated Restated 12 months 12 months 12 months
to 28 to 29 to 28 February February February 2005 2004 2003 (R"000) (R"000) (R"000)
Revenue 193 867 175 657 244 930 Continuing operations 130 814 95 862 Discontinuing operations 63 053 79 795 Operating (loss)/income before (3 328) 7 074 40 063 depreciation and amortisation Continuing operations 3 189 3 034 Discontinued operations (6 517) 4 040 Depreciation and amortisation (22 693) (17 984) (12 118) Continuing operations (20 613) (16 680) Discounted operations (2 080) (1 304) Operating (loss)/profit before (26 021) (10 910) 27 945 interest and taxation Continuing operations (17 424) (13 646) Discontinuing operations (8 597) 2 736 Interest paid (9 503) (11 518) (11 680) Continuing operations (6 501) (6 388) Discontinuing operations (3 002) (5 130) Interest received 541 931 1 291 Continuing operations 430 831 Discontinuing operations 111 100 (Loss)/Profit before taxation, sale and fair value adjustments (34 983) (21 497) 17 556 Continuing operations (23 541) (19 203) - Discontinuing operations (11 442) (2 294) - Sales of investments and fair (27 650) (431) - value adjustments Impairment on discontinued (30 156) - - operations Negative goodwill on 1 943 - - acquisition of subsidiary Revaluation surplus on 2 906 - - property Loss on sale of investment (2 343) (431) - (Loss)/Profit before taxation (62 633) (21 928) 17 556 Taxation 4 109 6 901 11 986 Continuing operations (4 966) 6 054 - Discontinuing operations 9 075 847 - (Loss)/Profit after taxation (58 524) (15 027) 29 542 Minority interest (4 423) (569) (775) Loss attributable to (62 947) (15 596) 28 767 shareholders Shares in issue throughout year 184 415 184 415 184 903 (`000) Basic loss per share (cents) (34.1) (8.5) 15.6 Headline loss per share (cents) (19.3) (7.5) 16.9 STATEMENT OF CHANGES IN EQUITY Audited Restated Restated 28 29 28
February February February 2005 2004 2003 (R"000) (R"000) (R"000) Share Capital Balance at beginning of year 1 844 1 844 1 849 Share buy-back - - (5) Balance at end of year 1 844 1 844 1 844 Share premium Balance at beginning of year 48 855 48 855 49 090 Share buy-back - - (235) Balance at end of year 48 855 48 855 48 855 Non distributable reserves Balance at beginning of year - - - Revaluation of investments - 601 - Revaluation of property 2 420 - - Reserve on equity loan - - - Restatement Reversal of revaluation surplus - (601) - Balance at end of year 2 420 - - Distributable reserves Balance at beginning of year 79 775 95 371 71 379 (Loss)/ Profit for the year (62 947) (13 646) 30 394 Prior year adjustment relating to the capitalisation - - (888) of finance leases Prior year adjustment relating to deferred taxation liability (69) - - raised Restatement Amortisation of goodwill - - (1 190) (1 190) current year Amortisation of goodwill - prior - (2 487) year Amortisation of intangibles - (469) - Foreign exchange rate gain - 86 - Subsidiary previously not - (324) - consolidated Operating lease-current year - (53) (436) Operating lease-prior year - - (1 401) Balance at end of year 16 759 79 775 95 371 Total capital and reserves 69 878 130 474 146 070 Reconciliation between earnings and headline earnings: 2005 2004 2003 R"000 R"000 R"000
Basic (loss)/earnings (62 947) (15 596) 28 767 Goodwill amortised - 1 384 1 325 Negative goodwill (1 943) - - Impairment of investments 30 156 - and assets Loss on sale of investment 2 343 431 - Profit on sale of fixed (321) - - assets Revaluation of property (2 906) - - Write-off of share premium - - 1 142 Headline earnings (35 618) (13 781) 31 234 CASH FLOW STATEMENT Audited Restated Restated 28 29 28 February February February 2005 2004 2003
(R"000) (R"000) (R"000) Cash flow from operating 10 071 3 302 9 186 activities Cash flow from investing (21 639) (23 233) (43 548) activities Cash flow from financing 9 512 2 727 17 305 activities Net (decrease) / increase (2 056) (17 204) (17 057) in cash and cash equivalents Cash and cash equivalents 5 351 22 555 39 612 at beginning of year Cash and cash equivalents 3 295 5 351 22 555 at end of year BASIS OF PREPARATION The group"s auditors, RAIN Chartered Accountants, have audited the financial information for the year to 28 February 2005. Their audit report is available for inspection at the registered office of Labat. Without qualifying the audit report the auditors emphasised the following matters: Going concern - the ability of two subsidiaries in the group to continue as going concerns is dependent upon the successful conclusion of certain funding initiatives. Significant uncertainty regarding litigation - various claims and counter-claims have been made by and against the company and no provision for any liability has been made. Revised financial statements - certain misstatements in the 2004 annual financial statements necessitating restatement of the company and group financial statements. NOTICE OF ANNUAL GENERAL MEETING The annual financial statements of Labat for the year ended 28 February 2005, which include a notice of the annual general meeting, were dispatched to shareholders on 30 September 2005. The annual general meeting of Labat shareholders will be held at 15:00 on Friday, 28 October 2005 in the boardroom, Ground Floor, Island House, Constantia Park Centre, Corner 14th Avenue and Hendrik Potgieter Road, Weltevreden Park, 1709. For and on behalf of the board B G van Rooyen Chairman 13 October 2005 Registered Office: Island House Constantia Park Centre Cnr 14th Avenue, Hendrik Potgieter Road Weltevreden park, 1709 Transfer Secretaries: Computershare Investor Services 2004 (Proprietary) Limited 70 Marshall Street Johannesburg 2001 Date: 13/10/2005 05:11:04 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department
