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TMT - Trematon - Unaudited Results for the Six Months Ended 28 February 2007 Trematon Capital Investments Limited (Incorporated in the Republic of South Africa) (Registration number 1997/008691/06) Share code: TMT & ISIN: ZAE000013991 ("Trematon" or "the company") Unaudited results for the six months ended 28 February 2007 Balance sheet Unaudited Audited 28 February 31 August 2007 2006 2006 R`000 R`000 R`000
ASSETS Non-current assets 90 260 62 647 81 559 Equipment 15 - 18 Investment in joint venture 5 438 - 4 718 Investments 84 807 62 557 76 047 Deferred tax asset - 90 776 Current assets 73 790 51 480 30 437 Investments 15 312 22 991 7 548 Tax receivable 69 - 69 Trade and other receivables 16 473 658 31 Cash and cash equivalents 41 936 27 831 22 789 Total assets 164 050 114 127 111 996 EQUITY AND LIABILITIES Equity 129 484 105 485 105 161 Share capital and share premium 203 296 200 046 203 296 Fair value reserve 19 537 9 612 7 095 Foreign exchange translation reserve - 155 - Accumulated loss (100 358) (104 328) (105 230) Total equity attributable to equity holders of the parent 122 475 105 485 105 161 Minority interest 7 009 - - Non-current liabilities 5 290 5 233 1 968 Deferred tax liability 5 290 5 233 1 968 Current liabilities 29 276 3 409 4 867 Tax payable 2 823 1 442 4 358 Trade and other payables 26 443 1 935 476 Interest on debentures 10 32 32 Bank overdraft - - 1 Total equity and liabilities 164 050 114 127 111 996 Net asset value per share (cents) 70 61 60 Income statement Unaudited Audited
Six months Year ended ended 28 February 31 August 2007 2006 2006
Notes R`000 R`000 R`000 Trading profit 4 627 14 827 17 564 Investment income 2 772 2 132 3 411 Finance costs (94) (284) (288) Loss from equity accounted investment (359) - (52) Profit before taxation 6 946 16 675 20 635 Taxation (1 817) (4 807) (5 020) Profit for the period/year 5 129 11 868 15 615 Attributable to: Equity holders of the parent 4 872 11 868 15 615 Minority interest 257 - - 5 129 11 868 15 615 Number of shares issued (thousands) 174 873 171 623 174 873 Weighted average number of shares (thousands) 174 873 171 623 173 248 Basic earnings per share (cents) 2.79 6.92 9.00 Headline earnings per share (cents) 2 1.67 2.48 4.60 Cash flow statement Unaudited Audited
Six months Year ended ended 28 February 31 August 2007 2006 2006
R`000 R`000 R`000 Cash flow from operating activities Cash generated by/(used in) operations 6 626 207 (3 415) Interest received 2 244 2 063 3 292 Dividends received 528 69 119 Finance costs (94) (284) (288) Tax paid (3 838) (1 288) (1 288) Net cash inflow/(outflow) from operating activities 5 466 767 (1 580) Cash flow from investing activities Acquisition of equipment - - (20) Acquisition of subsidiary 8 162 - - Loan advanced to joint venture (720) - (4 770) Acquisition of investments (36 525) (32 862) (85 023) Proceeds from sale of investments 42 764 61 114 123 930 Net cash inflow from investing activities 13 681 28 252 34 117 Cash flow from financing activities Proceeds on share issue - - 3 250 Repayment of loans payable - (1 372) (13 605) Net cash outflow from financing activities - (1 372) (10 355) Net increase in cash and cash equivalents 19 147 27 647 22 182 Cash and cash equivalents at beginning of period/year 22 789 184 184 Effect of exchange rate movement on cash balances - - 423 Total cash and cash equivalents at end of the period/year 41 936 27 831 22 789 Statement of changes in equity Unaudited Audited Six months Year ended ended 28 February 31 August
2007 2006 2006 R`000 R`000 R`000 Total equity at 1 September 105 161 98 166 98 166 Conversion to IFRS - - 86 Total recognised income 18 332 7 164 3 659 Profit for the period attributable to equity holders of the parent 4 872 11 868 15 615 Profit for the period attributable to minority interest 257 - - Fair value gains/(loss) on available-for-sale investments attributable to equity holders of the parent 10 974 5 419 (4 352) Fair value gains on available-for-sale investments attributable to minority interest 761 - - Fair value loss/(gains) on available-for-sale investments realised through income statement 1 468 (10 123) (7 604) Acquisition of subsidiary 5 991 - - Foreign exchange translation difference - 155 - Issue of shares - - 3 250 Total equity at 28 February/31 August 129 484 105 485 105 161 Notes 1 The interim financial statements were prepared in accordance with International Financial Reporting Standards (IFRS). Unaudited Audited Six months Year ended ended 28 February 31 August
2007 2006 2006 R`000 R`000 R`000 2 Headline earnings per share Headline earnings per share is calculated as follows: Profit attributable to equity holders of the parent 4 872 11 868 15 615 Realised profit on available-for-sale investments (2 262) (8 894) (8 894) Tax effects 302 1 290 1 290 Headline earnings 2 912 4 264 8 011 Headline earnings per share (cents) 1.67 2.48 4.60 The calculation of headline earnings per share is based on the weighted average number of 174 872 545 shares in issue during the year (2006: 173 247 545). Directors` report These results comply with International Financial Reporting Standards ("IFRS"). Previous results have been restated to comply with IFRS. The current management team has been in control of Trematon for two years. The company has diversified its investment base over this period and the company currently has investments in listed equities, unlisted equities and property related investments. Trading profit amounted to R4.6 million compared to R14.8 million in the corresponding six month period. This reflects reduced short-term trading activity compared to the previous period. Most of Trematon`s current income is derived from trading which, by its nature, should be expected to be highly variable. Net asset value increased to 70c from 60c at the last financial year end. Unlisted investments have not been revalued during this reporting period. Trematon has made further investments in its unlisted equity portfolio and unlisted property related investments which now comprise 26.2% of net asset value. This component of net asset value is expected to increase and management is actively seeking further opportunities in this area. At present, the income yield from the unlisted portfolio is low and there is limited scope for short term profits but good long term returns are expected. During February 2007, Trematon disposed of 2 520 000 shares in Intec Telecom plc for a total consideration of R16.2 million. Trematon owns 5 216 979 shares in Intec which represents 25.7% of net asset value. For more information on Intec, shareholders are referred to Intec`s comprehensive website at www.intecbilling.com. Trematon owns 54.7 million shares in Shops for Africa Ltd (75.8% of Shops for Africa`s total equity) which represents 14.5% of Trematon`s net asset value. At year end Shops for Africa was not accounted for as a subsidiary because it was in liquidation. Subsequent to year end Shops for Africa was brought out of liquidation and it has been accounted for as a subsidiary for the first time. The current balance sheet is therefore not strictly comparable with the prior period. Arnold Maresky, a former director of Paramount Properties Ltd has been appointed to the board of Shops for Africa and plans are well under way to rejuvenate the company. The company has net cash reserves at present but is not averse to gearing should appropriate opportunities arise. The primary focus of management is to increase the per share net asset value of the company in the long term. We will take advantage of short term trading opportunities when they arise but trading profits will be variable and cannot be forecast. No dividend payments are planned for the current financial year. Trematon has built a sound base for continued growth in per share net asset value and is constantly seeking to enhance the quality and growth potential of its investment portfolio. On behalf of the board AJ SHAPIRO Director Cape Town 3 May 2007 Directors: M Kaplan (Chairman), AJ Shapiro (CEO), A Groll (executive), AM Louw (non-executive), R Stumpf (non-executive) Registered office: 1st Floor, The Spearhead, 42 Hans Strijdom Avenue, Foreshore, 8001 Postal address: PO Box 7677, Roggebaai, 8012. Tel: (021) 421-5550. Fax: (021) 421-5551 Secretary: S Litten Transfer Secretaries: Computershare Investor Services 2004 (Pty) Limited, 70 Marshall Street, Johannesburg, 2001 Principal banker: Investec Bank Limited Sponsor: Bridge Capital Advisors (Pty) Limited, 1st Floor, Building 22A, The Woodlands, Woodlands Drive, Woodmead, Sandton, 2146 Auditors: KPMG Inc. Date: 07/05/2007 14:32:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department.
