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NCS - Nictus Limited - Interim Results for the six months ended 30 September

Release Date: 29/11/2011 12:27
Code(s): NCS
Wrap Text

NCS - Nictus Limited - Interim Results for the six months ended 30 September 2011 Nictus Limited (Incorporated in the Republic of South Africa) (Registration number 1981/001858/06) JSE Share code: NCS NSX Share code: NCT ISIN Code: NA0009123481 ("Nictus" or "the company") Unaudited Audited CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Six Six Year months months ended ended ended
30 Sept 30 Sept 31 Mar 11 11 10 R`000 R`000 R`000
Revenue 273 037 194 522 494 109 Cost of sales (205 822) (142 746) (377 350) Claims incurred (13 455) (11 892) (24 057) Gross profit 53 760 39 884 92 702 Other income 5 342 2 736 10 793 Investment income from 19 950 14 517 27 828 operations Operating and administrative (68 261) (53 365) (113 481) expenses Operating 10 791 3 772 17 842 profit Investment 2 738 3 899 6 722 income Operating profit before 13 529 7 671 24 564 financing costs Financing costs (1 948) (2 241) (5 090) Profit before 11 581 5 430 19 474 taxation Taxation (1 301) (2 024) (3 991) Profit for the 10 280 3 406 15 483 period Other 7 426 - - comprehensive income Total comprehensive income for the 17 706 3 406 15 483 period Profit and total comprehensive income attributable to: Equity 17 706 3 406 15 483 holders
Basic earnings per share 19.24 6.41 28.97 (cents) Diluted earnings per share 19.24 6.37 28.97 (cents) Number of shares in issue 53 443 53 177 53 443 (000`s)
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION at 30 at 30 Sept at 31 Sept 11 10 Mar 11
R`000 R`000 R`000 ASSETS Non-current assets Investment - 16 217 17 840 property Property, plant 99 216 73 589 89 378 and equipment Intangible 1 858 2 238 2 191 assets and goodwill Investments 44 473 33 545 38 296 Loans and 248 251 244 103 252 184 receivables Deferred tax 13 190 13 992 13 391 assets 406 988 383 684 413 280 Current asset 541 380 462 445 522 778 Non-current 18 849 - - assets held for sale Total assets 967 521 846 129 936 058
EQUITY Share capital 26 722 26 589 26 722 Revaluation 37 857 30 431 30 431 reserve Contingency 15 659 24 632 17 083 reserve Retained income 43 869 17 572 37 198 Total equity 124 107 99 224 111 434 LIABILITIES Non-current liabilities Interest bearing loans and 4 776 11 799 11 748 borrowings Deferred tax 15 583 14 549 14 131 liabilities 20 359 26 348 25 879 Current 822 751 720 557 798 745 liabilities* Insurance 715 224 616 441 690 216 contract liability Other current 107 527 104 116 108 529 liabilities Total 843 110 746 905 824 624 liabilities Total equity 967 217 846 129 936 058 and liabilities * Included in current liabilities is the insurance contract liability. Premiums received under this liability are invested in terms of the respective insurance acts enacted in Namibia and South Africa with the result that certain investments are of a long term nature. Unaudited Audited
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW Six Six months Year months
ended ended ended 30 Sept 30 Sept 10 31 Mar 11 11 R`000 R`000 R`000
Cash flow from operating activities Cash generated 759 30 595 47 710 by operations Investment income from 6 844 3 856 10 516 operations received Interest paid (1 948) (2 241) (5 090) Ordinary 13 106 5 353 17 312 dividends received Taxation (394) (2 059) (86) refunded / (paid) Net cash flow from 18 367 35 504 70 362 operating activities Net cash flow (utilised (2 901) 6 463 (29 309) by)/ from investing activities Net cash flow from (24 561) (8 647) (5 702) financing activities Net (decrease)/increase in cash and (9 095) 33 320 35 351 cash equivalents Cash and cash equivalents at beginning 273 333 237 982 237 982 of period Cash and cash equivalents at end of 264 238 271 302 273 333 period CONDENSED SEGMENTAL REPORT Six Six months Year months ended ended Ended 30 Sept 30 Sept 10 31 Mar 11
11 R`000 R`000 R`000 Segment assets Motor retail 207 025 128 063 161 575 Furniture 142 703 97 845 111 225 retail Insurance & 832 103 756 034 819 544 Finance 1 181 981 942 1 092 344 831 Head office and (214 614) (135 813) (156 286) eliminations 967 217 846 129 936 058 Segment revenue Motor retail 197 761 139 920 358 648 Furniture 46 801 36 931 80 103 retail Insurance & 29 274 25 218 60 299 Finance 273 836 202 069 499 050 Head office and (799) (7 547) (4 941) eliminations 273 037 194 522 494 109
Operating profit / (loss) after taxation Motor retail 1 420 2 015 2 492 Furniture 1 335 1 748 (1 780) retail Insurance & 11 617 4 395 16 194 Finance 14 372 8 158 20 466
Head office and (4 092) (4 752) (4 983) eliminations 10 280 3 406 15 483
RECONCILIATION BETWEEN EARNINGS & HEADLINE EARNINGS Six Six months Year
months Ended ended ended 30 Sept 30 Sept 10 31 Mar 11 11
Profit for the 10 280 3 406 15 483 period Loss on disposal of property, plant 20 13 81 and equipment Headline 10 300 3 419 15 564 earnings
Headline earnings per share 19.27 6.43 29.12 (cents) CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Share Revaluation Conting Retained Total
capital reserve ency income equity reserve R`000 R`000 R`000 R`000 R`000
Balance at 1 26 589 30 431 21 282 20 356 99 158 April 2010 Total - - - 3 406 3 406 comprehensive income Profit for the - - - 3 406 3 406 period Transfer from - - 3 350 (3 350) - contingency reserve Dividend paid - - - (3 340) (3 340) Transfer from - - - - - treasury shares Balance at 30 26 589 30 431 24 632 17 572 99 224 September 2010 Total - - - 12 077 12 077 comprehensive income Profit for the - - - 12 077 12 077 period Revaluation of - - - - - land and buildings Transfer to - - (7 549) 7 549 - contingency reserve Transfer from 133 - - - 133 treasury shares Balance at 31 26 722 30 431 17 083 37 198 111 434 March 2011 Total - 7 730 - 9 976 17 706 comprehensive income Profit for the - 7 730 - 9 976 17 706 period Transfer to - - (1 434) 1 424 - contingency reserve Dividend paid - - - (5 033) (5 033) Transfer from - - - - - treasury shares Balance at 30 26 722 38 161 15 659 43 869 124 107 September 2011
NOTES TO THE FINANCIAL INFORMATION 1. BASIS OF PREPARATION The interim financial statements have been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) and its interpretations adopted by the International Accounting Standards Board (IASB), the Companies Act and the AC 500 series. The accounting policies are consistent with those applied for the year ended 31 March 2011. Standards and interpretations effective subsequent to this date have not had a material effect on the results. These interim financial statements also comply with the recognition, measurement, presentation and disclosure requirements of IAS 34 - Interim Financial Reporting. 2. FOREIGN CURRENCY The Group`s functional currency is Namibia dollars. As the entity`s primary listing is on the Johannesburg Stock Exchange, the interim financial statements have been presented in South African Rands being the Group`s presentation currency. The Namibia Dollar and the South African Rand are translated on a one-to-one basis. 3. COMPARATIVE FIGURES The September 2010 comparatives are consistent with the accounting policies and basis of presentation applied to both the current period and the previous year ended 31 March 2011. 4. RELATED PARTIES During the period, certain companies within the Group entered into transactions with each other. These intra-group transactions have been eliminated on consolidation. Related party information is unchanged from that reported at 31 March 2011. Refer to the 2011 annual report for further information. REVIEW OF OPERATIONS Profit before taxation Group revenue increased by 40% to R273 million. The Group`s asset base increased by 14% to R967 million. Gross profit increased by 35% to R54m. Profit for the period increased by 202% to R10.3 million. Cost of sales increased by 44% to R206 million. Operating and administrative expenses increased by 28% to R68 million. Headline earnings increased by 200% to 19.27 cents per share. Overview of first six months The profit for the period increased significantly compared to the first six months of the prior period. A major contributor to the increase in profits is investment income that increased significantly compared to the comparable period. It is expected that the high investment income earned during the first six months will not be repeated in the following six months of the year. The growth experienced in the motor and furniture division in terms of revenue is in line with the growth of the Group. Costs of establishing new branches in South Africa and Namibia however placed the profits in the vehicle and furniture segment under pressure. SEGMENTAL RESULTS There was no change in the segments from the 31 March 2011 annual report. Motor retail: Increases in the revenue for all departments in this segment contributed to the 41% increase in segment revenue. The branches that were opened and taken over during the last 6 months of the prior financial year were the major contributors to the revenue growth. Returning the new branches to profitability was a challenge since take over with the processes completed during the first 6 months of the year. Obtaining vehicle stock however remains a problem after the tsunami that hit Japan earlier in the year and it is expected that availability of vehicle stock will return to normal during November 2011.
Furniture retail: Revenue increased by 27% compared to September 2010. The administration office for the South African furniture division was relocated from Windhoek to Randburg in order to accommodate the growth within the segment. This resulted in additional expenses being incurred during the first 6 months of the year. The new branch in Soweto will also be profitable towards year- end. It is expected that the following 6 months within the segment will result in positive growth. The debtors book within the segment is very healthy compared to industry standards. Insurance and finance: The premium income for the first 6 months increased compared to the comparable period. Investment income was significantly higher than in the previous period resulting in a good first 6 months for the segment. The performance of equities on the JSE remains highly unpredictable and is monitored constantly to ensure returns are maximised. HEADLINE EARNINGS For the year to date the only item that impacted on the headline earnings was the loss on sale of equipment. BASIC EARNINGS PER SHARE Earnings per share for the six months ended 30 September 2011 was 19.24 cents (30 September 2010: 6.41 cents), compared to headline earnings per share of 19.27 cents (30 September 2010: 6.43 cents). DIVIDEND No interim dividend has been proposed by the Board of directors. DIRECTORS Prof BJ Willemse was appointed chairman of the Group during August 2011 after JL Olivier completed his term in office. JL Oliver will remain on the board as a non-executive director. PROSPECTS Subsequent to year-end Corporate Properties (Pty) Ltd, a subsidiary in the Group, was sold. The profits relating to the sale of the subsidiary will only be accounted for after September 2011 and proceeds from the sale will be utilised for development of current properties to support the growth of the Group. Historically the majority of the Group`s earnings are earned in the second part of the financial year and the board is of the opinion that the same will apply in the current financial year. On behalf of the board: N C Tromp W O Fourie Windhoek, 9 December 2011 COMPANY DETAILS Company registration number: RSA: 1981/01858/06, NAM: F81/11858 JSE share code: NCS, NSX Share code: NCT, ISIN number: NA0009123481 Directors: B J Willemse (Chairman - Non-executive),J L Olivier (Non- executive), N C Tromp (Managing Director), J N Campbell (Non-executive), F R van Staden (Executive Director), J J Retief (Executive Director), W O Fourie (Financial Director). Transfer Secretaries: Computershare Investor Services 2004 (Pty) Ltd, P O Box 61051, Marshalltown 2107 RSA Registered Office: Nictus Building, corner of Pretoria and Dover Street, Randburg (P O Box 2878, Randburg, 2125) Namibia Registered Office: 3rd Floor, Corporate House, 17 Luderitz Street, Windhoek (P O Box 755, Windhoek) Sponsor on the JSE: KPMG Services (Pty) Ltd Sponsor on the NSX: Namibia Equity Brokers (Pty) Ltd Johannesburg 29 November 2011 Sponsor on the JSE: KPMG Services (Pty) Ltd Sponsor on the NSX: Namibia Equity Brokers (Pty) Ltd Date: 29/11/2011 12:27:01 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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