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SKJ - Sekunjalo - Sekunjalo experiences strong turnaround in operational business performance Sekunjalo Investments Limited (Incorporated in the Republic of South Africa) Registration number 1996/006093/06 Share code: SKJ and ISIN: ZAE000017893 ("Sekunjalo" or "the Group") Date: 25 November 2008 (Full results and commentary live on SENS) SEKUNJALO EXPERIENCES STRONG TURNAROUND IN OPERATIONAL BUSINESS PERFORMANCE Black Empowerment Group, Sekunjalo Investments Limited (Sekunjalo), has continued to increase its business efficiencies by reporting a vast improvement in its operating profits for the last financial year, from a R68m operating loss to R16,8m operating profit across all of its major business units. Mo Kajee, CEO of Sekunjalo said that he was satisfied with the turnaround in the Group`s results. The improved operating profits occurred despite the challenging trading conditions which the businesses operated under during the last year. Mo Kajee said, "it is important to note that Sekunjalo is lowly geared with a debt equity ratio of 12% and had very limited share issues during the year under review". The trend in the last five years has seen increased efficiencies resulting in increased profits and cash flows as well as reducing debt, and a significantly strengthened balance sheet. Compared to the same reporting period, revenue of R638,3m is up on R449,2m in 2007 due largely to acquisitions and our partnership with Affinity groups in the Financial Services division. Headline earnings are not comparable to last year due to change in circumstances and hence the accounting for our Biotech investment which has now become an associate. As a consequence fair valuation adjustments included in headline earnings are now excluded. Premier Fishing continues to improve its operating profits due to the positive performance of both west and south coast rock lobster as well as the squid division all of which are prized in international markets. The Group has invested into its aquaculture business through an acquisition of Marine Growers as well as expanding its capacity in Gaansbaai. This is a key growth area for the Group due to closure of the wild abalone sector. Sekunjalo Technology Solutions (TSG) has significantly improved its operating profits from R7,7m (2007) to R15,2m this year reflecting a 97% increase. This performance is due largely to the conclusion of major licensing deals, increased consulting revenue and the conclusion of a major Gauteng department of health hospital information system (HIS) tender. The financial services division which is a start up business required additional investment in the current year to build capacity for its range of innovative products. The population of these licences and businesses will only incur marginal costs as the majority of the investment has already been made in the infrastructure required. The Healthcare division, Sekunjalo Health Care (SHC) has been significantly restructured for turnaround which has produced a significant reduction in its operating loss of R7,9m compared to an operating loss of R41,7m last year through exiting our healthcare commodities businesses and focussing on the efficiencies of the pharmaceutical business. The Group`s investment in Bioclones which owns 22 global patents in the areas of novel technologies, infectious diseases and cancer treatment molecules and is Africa`s only producer of Erythropoietin. Bioclones engages in both research and development for novel therapeutics and the manufacture of affordable anaemia and cancer recovery treatments. New acquisitions espAfrika, the Cape Town International Jazz Festival and Sure Tripos Travel have boosted revenues and contributed to the improved operating position of the Group. Sekunjalo acquired a 30% stake after year end in British Telecom`s (BT) South African business. BT is a world provider of communications solutions and services operating in 170 countries. This partnership will explore opportunities for the benefit of both parties. Commenting on the prospects for the Group, Mo Kajee said that Sekunjalo is the empowerment partner of choice to many large and small businesses, it has solid B-BBEE credentials and an international reputation as a founder company of the World Economic Forum (WEF) New Champions and Community Global Growth Company (CGGC). Sekunjalo continues to monitor global and local markets as it is still committed to listing both its ICT and Biotech investments. ENDS Contact details: Sekunjalo Investments Limited Mohamed (Mo) Kajee, CEO Tel: 2721 419 0124 Fax: 2721 419 0731 Email: mok@sekunjalo.com Date: 26/11/2008 07:06:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
