Wrap Text
SBL - Sable - Unaudited Interim Group Results for the six months ended 31
December 2011 and Renewal Of Cautionary Announcement
SABLE HOLDINGS LIMITED
(`Sable` or `the company` or `the group`)
(Incorporated in the Republic of South Africa)
(Registration No. 1968/010636/06)
Share code: SBL
ISIN code: ZAE000006383
UNAUDITED INTERIM GROUP RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2011 AND
RENEWAL OF CAUTIONARY ANNOUNCEMENT
Earnings per share down 12.1%
Headline earnings per share up 25.4%
Net asset value per share up 0.4%
CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL POSITION
Unaudited Audited
As at As at
31 December 30 June
(R`000) 2011 2010 2011
Assets
Non-current assets 541 158 520 441 532 220
Investment property 287 982 272 545 273 145
Investments 248 235 238 210 253 947
Deferred taxation 106 3 997 106
Other non-current assets 4 835 5 689 5 022
Current assets 15 199 4 240 13 229
Cash and cash equivalents 2 434 728 1 196
Other current assets 12 765 3 512 12 033
Non-current asset held for sale - 4 500 -
Total assets 556 357 529 181 545 449
Equity and liabilities
Total equity 401 895 381 785 400 297
Non-current liabilities 129 258 125 386 124 957
Interest-bearing borrowings 100 916 95 054 96 615
Deferred taxation 28 342 30 332 28 342
Current liabilities 25 204 22 010 20 195
Total equity and liabilities 556 357 529 181 545 449
CONSOLIDATED CONDENSED STATEMENT OF COMPREHENSIVE INCOME
Unaudited Audited
Six months ended Year ended
31 December 30 June
(R`000) 2011 2010 2011
Revenue 16 282 16 648 30 203
Turnover 16 036 16 089 29 477
Profit from operations 6 327 5 188 8 872
(Loss)/profit on disposal of (159) 7 949
investments and investment
property
(Loss)/profit on disposal of (159) 7 7
investments
Profit on disposal of investment - - 942
property
Fair value gains on investments 297 749 4 234
and investment property
Fair value gains/(impairment) on 297 249 (61)
investment
Net surplus on revaluaton of - 500 4 295
investment property
Profit before net finance costs 6 465 5 944 14 055
and taxation
Income from investments 28 24 48
Finance income 246 535 726
Finance costs (4 686) (6 398) (9 589)
Share of (loss)/profit from (361) 2 336 16 422
joint ventures
Profit before taxation 1 692 2 441 21 662
Taxation (94) (622) (1 331)
Net profit for the period 1 598 1 819 20 331
Other comprehensive income - - -
Total comprehensive income for 1 598 1 819 20 331
the period
Total comprehensive income
attributable to:
Equity shareholders of Sable 1 604 1 825 20 343
Holdings Limited
Non-controlling interest (6) (6) (12)
Earnings and diluted earnings 17.5 19.9 221.7
per ordinary share (cents)
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
Unaudited Audited
Six months ended Year ended
31 December 30 June
(R`000) 2011 2010 2011
Cash inflow/(outflow) from 2 039 (156) (9 193)
operating activities
Cash (outflow)/inflow from (9 382) 32 154 35 749
investing activities
Cash inflow/(outflow) from 7 397 (31 009) (24 150)
financing activities
Net increase in cash and cash 54 989 2 406
equivalents
Cash and cash equivalents at the 1 196 (1 210) (1 210)
beginning of the period
Cash and cash equivalents at the 1 250 (221) 1 196
end of the period
Cash and cash equivalents at the
end of the period comprise of:
Cash and cash equivalents 2 434 728 1 196
Cash and cash equivalents - bank (1 184) (949) -
overdrafts
1 250 (221) 1 196
RECONCILIATION OF NET PROFIT FOR THE PERIOD TO HEADLINE EARNINGS
Unaudited Audited
Six months ended Year ended
31 December 30 June
(R`000) 2011 2010 2011
Net profit attributable to 1 604 1 825 20 343
equity shareholders of the
holding company
Adjustments through wholly-owned
subsidiaries:
Profit on disposal of investment - - (942)
property
Fair value gains on investment - (500) (4 295)
property
Tax effects of adjustments - 140 1 334
Adjustments through joint
ventures:
Profit on disposal of investment (126) (315) (1 008)
property
Fair value gains on investment - - (14 293)
property
Tax effects of adjustments 17 44 3 946
Headline earnings for the period 1 495 1 194 5 085
Headline earnings per ordinary 16.3 13.0 55.4
share (cents)
CONSOLIDATED CONDENSED SEGMENTAL ANALYSIS
Unaudited Audited
Six months ended Year ended
31 December 30 June
(R`000) 2011 2010 2011
Segmental revenue 16 282 16 648 30 203
Investment property 15 265 15 569 27 949
Commercial 3 045 3 138 5 406
Industrial 5 499 7 039 11 805
Retail 5 743 4 817 9 979
Residential 978 575 759
Corporate and inter-segment 1 017 1 079
charges 2 254
Profit before taxation 1 692 2 441 21 662
Investment property 6 988 4 705 14 621
Commercial 1 440 1 672 7 468
Industrial 2 349 2 158 3 910
Retail 2 736 804 3 136
Residential 463 71 107
Corporate and inter-segment (5 296) (2 264)
charges 7 041
Investment property 287 982 277 045 273 145
Commercial 75 400 66 451 63 901
Industrial 99 878 95 774 96 544
Retail 99 504 101 620 99 500
Residential 13 200 13 200 13 200
CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN EQUITY
(R`000) Share Non- Retained Non- Total
capital Distri- earnings Control- equity
and butable ling
premium reserves interests
Balance at 30 June 51 425 108 698 219 774 69 379 966
2010
Total - - 20 343 (12) 20 331
comprehensive
income for the
year
Share of profit - 16 422 (16 422) - -
from joint
ventures
Balance at 30 June 51 425 125 120 223 695 57 400 297
2011
Total - - 1 604 (6) 1 598
comprehensive
income for the
period
Share of loss from - (361) 361 - -
joint ventures
Balance at 31 51 425 124 759 225 660 51 401 895
December 2011
BASIS OF PREPARATION AND ACCOUNTING POLICIES
The unaudited interim consolidated condensed group results have been prepared in
accordance with the Framework concepts and the measurement and recognition
requirements of the International Financial Reporting Standards ("IFRS") and
containing information required by IAS 34 "Interim Financial Reporting" and AC
500 series as issued by the Accounting Practices Board, the JSE Limited Listings
Requirements and in the manner required by the Companies Act. The accounting
policies are consistent with those used in the annual financial statements for
the financial year ended 30 June 2011. The consolidated condensed statement of
financial position as at 31 December 2011 and the related consolidated condensed
statement of comprehensive income, consolidated condensed statement of changes
in equity and consolidated condensed statement of cash flows for the six months
ended have not been reviewed or reported on by the group`s auditors.
The unaudited interim consolidated condensed group results for the period ended
31 December 2011 have been approved by the board on 23 March 2012 and will be
published on 28 March 2012.
The unaudited interim group results for the six months ended 31 December 2011
have been prepared by the Financial Director, Mr KA Haswell CA(SA).
DIRECTORS` COMMENTARY ON RESULTS
Unaudited comparative analysis between 31 December 2011 and 31 December 2010
The group reported a net profit of R1.6 million (2010: R1.8 million) for the
period ended 31 December 2011. Earnings per share decreased by 12.1% from 19.9
cents to 17.5 cents, with no dilution in either period, whilst headline earnings
per share increased by 25.4% from 13.0 cents to 16.3 cents per share.
Consolidated condensed statement of comprehensive income
Revenue for the period decreased by 2.2% from R16.6 million to R16.3 million
primarily due to vacancies which exist in the commercial sector.
Group finance costs, net of investment and finance income, decreased from R5.8
million to R4.4 million. The decrease in finance costs was attributable to
reduced borrowings from the disposal of the Kya Sand portfolio in October 2010
and overall lower bank funding rates.
Share of profits from joint ventures decreased from earnings of R2.3 million to
a loss of R0.3 million.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2011
Investment property
Analysis of investment property
31 December 2011 30 June 2011
Number of Number of
R`000 properties R`000 properties
Carrying value at the 273 145 15 310 858* 22
beginning of the period
Additions 14 837 1 1 543 -
Disposals on transfers - - (43 551) (7)
Revaluations - - 4 295 -
Carrying value at the end 287 982 16 273 145 15
of the period
*These balances are inclusive of a non-current asset held for sale of R36.0
million.
Investment property has increased by R14.9 million, from R273.1 million to
R288.0 million, primarily due to the completion of 768mSquared of mini
industrial warehousing in Laserdowns, Johannesburg, and the acquisition and
development of a 2 200mSquared commercial office building in Midrand,
Johannesburg.
Investments comprising of investments in listed shares, investments and
investments in joint ventures decreased by a net R5.7 million. Investments in
joint ventures decreased by R5.9 million through net loan funding inflows of
R5.6 million and a loss from operations of R0.3 million for the period.
Investment in listed shares increased by R0.2 million, net of disposal of
investments in listed shares.
Interest-bearing borrowings have increased by R4.3 million from R103.9 million
to R108.2 million. The increase in interest-bearing borrowings funded the newly
developed commercial office building in Midrand, Johannesburg, as well as the
mini industrial warehousing in Laserdowns, Johannesburg.
Significant current developments and prospects
Joint ventures
Sable has a direct shareholding of 32.4% in Hazeldean Square retail shopping
centre, located in Hazeldean, Pretoria East. The size of the centre is 16
246mSquared. Recent additions to the centre have been the commencement of the
building of an Engen petrol filling station as well as a 500mSquared stand-alone
panelbeating and carwash service facility. Both additions will assist in
creating a more diverse retail offering and consequently a larger customer base
to the centre.
Wholly-owned subsidiaries
Sable, with its joint venture partner Abland, has commenced with the part
development of a 30 000mSquared commercial office park comprising multiple A-
grade office buildings. The development known as Hertford Office Park is
situated at the Allandale offramp, Midrand, and is likely to be valued in excess
of R400.0 million when fully developed. The development timeline is dependent on
tenant demand and to date 1 503mSquared of leasing takeup has been concluded.
The first building will be occupied on 1 May 2012 with building 2 and 3`s
occupation date being 1 December 2012. Sable`s shareholding in this commercial
office park is 50.0%.
Directorate
Mr Dawid Pennington resigned as an independent non-executive director and was
replaced by Mr Clinton Froneman. Mr Froneman`s knowledge of investment property
coupled with his strong financial background will complement the existing board
and audit committee. The board would like to welcome Mr Froneman and wishes him
all the best in his new position. The board wishes to thank Mr Pennington for
his valuable contribution to the company over the past three years.
Company secretary
Watermans Business & Administration Services (Pty) Limited were appointed as
company secretary following the resignation of Carina de Beer on 17 February
2012.
Dividends
The board of directors has resolved not to declare a dividend for the period
ended 31 December 2011. All cash reserves have been earmarked for funding
development and investment property opportunities within the group.
Corporate activity -Fairlands Shopping Centre disposal
The directors of Sable refer to the announcement on 16 February 2012 in which
shareholders were advised that the company has entered into a Sale of Letting
Enterprise Agreement to dispose of Fairlands Shopping Centre for R16.9 million.
The parties are still in negotiations and shareholders will be advised once the
suspensive conditions of the transaction have been fulfilled.
Renewal of cautionary announcement
Further to the cautionary announcements, the last of which was dated 16 February
2012, shareholders are advised that as all the information required in terms of
the JSE Listings Requirements has not yet been announced, caution is still
required when dealing in Sable shares until the outstanding information is
published.
Related party transactions
Management fees were charged to joint ventures during the period.
Events after reporting period end
Sable`s board of directors are not aware of any reportable material events that
have occurred between the end of the financial period and the date of this
report.
Going concern
The financial statements have been prepared on the going concern basis as the
directors have every reason to believe that the company has adequate resources
in place to continue in operation for the foreseeable future.
For and behalf of the board
PH Nash (Chairman)
GBJ Bowes (Managing director)
28 March 2012
Directors: PH Nash (Chairman)*, GBJ Bowes (Managing), KA Haswell (Financial), IA
Chambers*, CC Froneman*, JN Snell* (*non-executive)
Registered office: Sable Place, Fairway Office Park, 52 Grosvenor Road,
Bryanston, 2021. PO Box 786390, Sandton 2146
Transfer secretaries: Computershare Investor Services (Proprietary) Limited, 70
Marshall Street, Johannesburg, 2001. PO Box 61051, Marshalltown 2107
Designated Advisor: Sasfin Capital - a division of Sasfin Bank Limited
Date: 28/03/2012 08:00:04 Supplied by www.sharenet.co.za
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