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RAH - Real Africa Holdings Limited - Profit and dividend announcement for the

Release Date: 30/08/2011 10:00
Code(s): RAH
Wrap Text

RAH - Real Africa Holdings Limited - Profit and dividend announcement for the year ended 30 June 2011 Real Africa Holdings Limited (Registration number 1994/003919/06) Share code: RAH ISIN code: ZAE000008702 ("Real Africa" or "RAH" or "the company") Profit and Dividend Announcement for the year ended 30 June 2011 GROUP STATEMENTS OF COMPREHENSIVE INCOME Year ended Year 30 June ended 30 June
2011 2010 R`000 Audited Restated# Revenue 64 391 62 718 Net investment profit 6 359 1 076 Share of profits of associates 41 111 37 812 Interest income 1 562 1 443 Operating income 113 423 103 049 Operating costs (3 437) (3 869) Impairment of associate - (12 659) Impairment of available-for-sale - (7 368) investment Interest expense - (21) Profit before tax 109 986 79 132 Tax (957) 1 403 Profit for the year 109 029 80 535 Other comprehensive income: Changes in fair value of available-for- 42 943 77 693 sale financial instruments Reclassification adjustment for impairment - 96 included in profit for the year Total comprehensive income for the year 151 972 158 324 Profit for the year attributable to: Minority shareholders 14 076 3 267 Ordinary shareholders 94 953 77 268 109 029 80 535 Total comprehensive income for the year attributable to: Minority shareholders 16 708 7 812 Ordinary shareholders 135 264 150 512 151 972 158 324 #Amounts relating to the amortisation of intangible assets forming part of the investment in the associates (R10.6 million in 2011 and R6.6 million in 2010) have been reclassified from a separate "Amortisation" disclosure line in the statements of comprehensive income below operating income and have been included as a reduction in the "Share of profit of associates" line as disclosed before "Operating Income". This reclassification has been made to the comparative financial information to comply with the disclosure requirements of IAS 28 Investment in Associates. This reclassification impacts neither profit before nor after tax. Similarly it does not change earnings per share, headline earnings per share or the statement of financial position. Earnings per share (cents) 26.2 21.4 Headline earnings per share (cents) 24.9 24.5
GROUP STATEMENTS OF FINANCIAL POSITION 30 June 30 June 2011 2010 R`000 Audited Audited ASSETS Non current assets Investment in associates 83 042 93 555 Available-for-sale investments 834 974 784 892 918 016 878 447 Current assets Accounts receivable 110 556 Tax 215 196 Cash and cash equivalents 28 831 26 317 Loan to associate 5 128 - 34 284 27 069 Total assets 952 300 905 516 EQUITY AND LIABILITIES Capital and reserves Ordinary shareholders` equity 875 674 838 136 Minority interest 64 724 56 432 940 398 894 568 Non current liabilities Tax - 10 510 - 10 510
Current liabilities Accounts payable and accruals 907 438 Tax 10 995 - 11 902 438
Total liabilities 11 902 10 948 Total equity and liabilities 952 300 905 516 SUMMARISED GROUP STATEMENTS OF CASH FLOW Year ended Year
30 June ended 30 June 2011 2010 R`000 Audited Audited Cash flows from operating activities (3 013) (3 037) Cash flows from investing activities 111 669 101 216 Cash flows from financing activities (106 142) (100 729) Net cash flows 2 514 (2 550) HEADLINE EARNINGS PER SHARE Year ended Year 30 June ended 30
June 2011 2010 R`000 Audited Audited Headline earnings per share (cents) 24.9 24.5 Weighted average number of shares 361.9 361.8 (million) Reconciliation of headline earnings (R`000) Earnings attributable to ordinary 94 953 77 268 shareholders Adjusted for: Realised investment profits (6 500) (2 172) Impairment of associate - 12 659 Impairment of available-for-sale - 7 368 investment Tax on above items - (1 788) Minority interest in the above items 1 508 (4 646) Headline earnings 89 961 88 689 NET ASSET VALUE 30 June 30 June
R`000 2011 2010 Afrisun Leisure 1 247 257 1 161 081 Other net liabilities (4 809) (5 732) Cash 19 160 24 721 Net asset value 1 261 608 1 180 070 Issued shares net of treasury shares 361.9 361.9 (million) Net asset value per share (cents) 349 326 Note All the investments held by Afrisun Leisure have been valued using the Discounted Cash Flow (DCF) valuation method applying a discount rate of 11.64% (30 June 2010:12.11%) at 30 June 2011, to the directors` current estimated future cash flows. A minority discount of 15% has been applied to the valuation of the gaming company investments. GROUP STATEMENTS OF CHANGES IN EQUITY R`000 Ordinary Minority Total shareholders interest `equity Audited For the year ended 30 June 2011 Balances at 30 June 2010 838 136 56 432 894 568 Profit for the year 94 953 14 076 109 029 Other comprehensive income 40 311 2 632 42 943 Dividends paid (97 726) (8 416) (106 142) Balances at 30 June 2011 875 674 64 724 940 398 Audited For the year ended 30 June 2010 Balances at 30 June 2009 780 487 56 465 836 952 Profit for the year 77 268 3 267 80 535 Other comprehensive income 73 244 4 545 77 789 Disposal of treasury shares 1 196 - 1 196 Dividends paid (94 059) (7 845) (101 904) Balances at 30 June 2010 838 136 56 432 894 568 ACCOUNTING POLICIES The summarised consolidated annual financial statements for the year ended 30 June 2011 has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) and the presentation and disclosure requirements of IAS 34 - Interim Financial Reporting and AC500 standards issued by the Accounting Practices Board. The accounting policies applied, other than those described below, are consistent with those adopted in the financial statements for the year ended 30 June 2010. AUDIT OPINION Our auditor, PricewaterhouseCoopers Inc. audited the summarised consolidated annual financial statements and summarised consolidated financial information contained herein. Their audit reports in which they expressed unmodified opinions are available for inspection at the company`s registered office. REVIEW OF RESULTS Revenue of R64.4 million, comprising dividends received was R1.7 million above last year as a result of an increase in dividends received from SunWest offset in part by lower dividends from Afrisun KZN. The net investment profit of R6.4 million (2010: R1.1 million) relates mainly to a R6.5 million profit realised on the sale of a 14.3% interest in Zonwabise pursuant to a buyback by Zonwabise resulting from a commitment made for Emfuleni`s licence bid, partly offset by the impairment of the investment made to the Biotech Venture Fund of R0.1 million (2010: R1.1 million). The comparative year included a profit on sale of investments by the Biotech Venture Fund of R2.2 million. The share of profits of associates includes the group`s share of income from Afrisun Gauteng, Zonwabise and the management companies. The share of profits increased mainly due to the payment of a cancelation fee on the early termination of the Emfuleni Manco management contract which resulted in higher profits in National Manco and Zonwabise who each own 50% of Emfuleni Manco. Headline earnings per share increased by 1.4% due to the increase in the share of profits from associates. The board has declared a final dividend of 12 cents (2010:14 cents) per share, bringing the total dividend for the year to 25 cents (2010: 26 cents) per share. NON CURRENT ASSETS The group contributed R7.1 million for its share of a R70 million capitalisation of Golden Valley. Afrisun Leisure`s interest in Zonwabise reduced to 26.7% following the sale of shares in Zonwabise back to Zonwabise. The value of Afrisun Leisure has increased by 7.4% from R1 161 million at 30 June 2010 to R1 247 million as at 30 June 2011 due mainly to a drop in the discount rate used in the valuations from 12.11% at 30 June 2010 to 11.64% currently used. GRANDWEST EXCLUSIVITY GrandWest`s initial 10-year casino exclusivity in the Cape Metropole expired during December 2010. The Provincial Government of the Western Cape is still considering whether to permit one of the other casino licence holders in the Western Cape to relocate to the Cape Metropole and has engaged interested stakeholders before taking a final decision. There remains insufficient information to assess the potential impact on GrandWest`s revenue and profitability. EXPRESSION OF INTEREST BY SUN INTERNATIONAL LIMITED Shareholders are referred to the SENS announcement released on 30 August 2011 relating to the expression of interest by Sun International Limited to acquire the issued share capital of RAH. OUTLOOK Trading conditions within the leisure industry are likely to remain generally negative in the year ahead, hence hospitality and gaming revenues are only expected to improve marginally. The outlook has not been reviewed or reported on by the company`s auditors. DIVIDEND Notice is hereby given that a final dividend of 12 cents per share for the year ended 30 June 2011 (2010: 14 cents) has been declared, payable to shareholders recorded in the register of the company at the close of business on the record date appearing below. The salient dates applicable to the final dividend are as follows: 2011
Last day to trade cum final dividend Friday, 16 September First day to trade ex final dividend Monday, 19 September Record date Friday, 23 September Payment date Monday, 26 September No share certificates may be dematerialised or rematerialised between Monday, 19 September and Friday, 23 September 2011, both days inclusive. Dividend cheques will be posted and electronic payments made, where applicable, to certificated shareholders on the payment date. Dematerialised shareholders will have their accounts with their Central Securities Depository Participant or broker credited on the payment date. For and on behalf of the board MV Moosa RP Becker Chairman Financial director 30 August 2011 REGISTERED OFFICE 27 Fredman Drive, Sandown, Sandton, 2196 REGISTRAR Computershare Investor Services (Pty) Ltd, 70 Marshall Street, Johannesburg, 2001 SPONSOR Investec Bank Limited DIRECTORS MV Moosa (Chairman), RP Becker (Financial director), DC Coutts-Trotter, MJ Leeming, MMT Ramano, Y Waja SECRETARIES Sun International Corporate Services (Pty) Limited Date: 30/08/2011 10:00:01 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.

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