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Sekunjalo - Sekunjalo Releases Annual Results

Release Date: 01/12/2005 17:02
Code(s): SKJ
Wrap Text

Sekunjalo - Sekunjalo Releases Annual Results Sekunjalo Investments Limited (Incorporated in the Republic of South Africa) (Registration number 1996/006093/06) Share code: SKJ & ISIN: ZAE000017893 ("Sekunjalo" or "the Company") 1 December 2005 SEKUNJALO RELEASES ANNUAL RESULTS SEKUNJALO"S NAV AND EARNINGS ROCKET Sekunjalo Investments Limited today released its annual financial results for the year ended 31 August 2005. Financial Highlights are as follows:- 2005 2004 (% change) Headline earnings for the group R12.14m R1.83m (' 563%) Operating profit achieved R53.35m R20.91m (' 155%) Earnings for the group R37.47m R1.61m (' 2227%) Headline earnings per share of 4.76c 1.18c (' 303%) Basic earnings per share of 14.69c 1.04c (' 1313%) Net asset value for the company R826.3m R173m (' 378%) Net asset value per share for the company 291c 75c (' 288%) CEO, Dr Iqbal Surve said the results are proof of an outstanding performance by the group, especially considering the challenges it faced in the past year; a strengthened rand (affecting export margins and increasing import competition), restructuring in the health care business and underperformance in the Premfresh trading business. He said "the outstanding performance was made possible due to earlier than expected contributions from the financial services and information technology businesses, which this year were the largest contributors to the group"s earnings. This was the first year that the fishing sector was not the major contributor to the group"s earnings. This was due to the underperformance of its trading joint venture (Premfresh). The core fishing business remains a solid performer. Sekunjalo is a mature and established black controlled Investment Holding Company with South African and global operations. Sekunjalo"s investments are Technology and Innovation driven, which include the following sectors: Healthcare & Pharmaceuticals, Aquaculture & Biotechnology, Information Technology and Telecommunications and Financial Services. The Manufacturing and Employment driven investments include the following sectors: Industrials (Food and Fishing), Brands, Enterprise Development and SMME support". Dr Surve added: "Sekunjalo"s business model of integrating experienced senior executives with emerging black entrepreneurs and managers has created an exciting complement of senior management that positions the group well for growth." He said that this year alone Sekunjalo has attracted a number of senior executives with experience of more than 50 years creating a substantially strengthened and experienced management team. Dr Surve said, "the NAV of Sekunjalo has increased to R826 million (R2.91 per share). This is of special significance to our shareholders. The group is currently trading at a substantial discount to its NAV. Measures are being taken in the course of the next year to unlock this NAV. This includes providing stakeholders with more detailed information of the group"s investments in this year"s Annual Report, the first road show in 5 years to institutional shareholders in the first quarter of next year as well as the potential listing of some of the group"s subsidiaries and the merging of some of its investments". Dr Surve said that the executive management of the group has set itself the target of a year on year growth of 30% on earnings. He said that despite the substantial increase in earnings, Sekunjalo as a classic Investment Holding company should be evaluated on its NAV since its business is to acquire and unlock value in its investments, thereby increasing the NAV as these results clearly demonstrate. Dr Surve said that the prospects for the group are excellent especially in its Technology and Innovation driven portfolio. Furthermore, the allocation of Long Term Rights in the fishing sector, the focus on Brand Development and the decision to invest further in Enterprise Development and SMME support by appointing a senior executive to oversee this portfolio, will result in a period of exceptionally high growth for the group through continuing to add value to its investments. Dr Surve further said that for the first time the group has quantified the economic value added to the South African economy in a detailed Corporate Citizenship Report. "Sekunjalo shareholders will be pleased to note that the group has added R1.6billion to the economic value of South Africa in the past year". The Chairman of Sekunjalo, Dr Wallace Mgoqi said, "Sekunjalo is a true black economic empowerment success story. The group performed exceptionally well as an Investment Holding company in a challenging environment". He said that Sekunjalo"s extensive support of corporate social investment, skills development, SMME support, procurement for black entrepreneurs shows that it is possible to combine value driven ethos with excellence. He further said that the outstanding performance of Sekunjalo is validated by the company"s CEO, Dr Iqbal Surve receiving the Top 300 Companies Businessman of the Year Award as well as being appointed to the Advisory Board of the Clinton Global Initiative. Dr Surve concluded by saying "the turnaround is due to the tremendous effort of all the group"s management and employees, to whom I extend my sincere appreciation". For more information contact: Melody Mjila Group Communications Manager Tel: 021-658 2700 Fax: 021-658 2714 Email: melody@sekunjalo.com Date: 01/12/2005 05:02:05 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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