To view the PDF file, sign up for a MySharenet subscription.

RACP - RECM and CALIBRE LIMITED - Reviewed preliminary financial results for the

Release Date: 24/04/2012 14:11
Code(s): JSE RACP
Wrap Text

RACP - RECM and CALIBRE LIMITED - Reviewed preliminary financial results for the year ended 31 March 2012 RECM and CALIBRE LIMITED (Incorporated in the Republic of South Africa) (Registration number 2009/012403/06) Preference share code: RACP ISIN: ZAE000145041 ("RAC" or "the Company") Reviewed preliminary financial results for the year ended 31 March 2012
Notes Reviewed Audited 31 March 31 March 2012 2011 R R
Statement of Financial Position Assets Non-current assets Other 1 288 052 283 219 875 financial 090 assets Current 277 392 960 295 609 assets 693 Trade and other 6 148 068 receivables 6 217 106 Other 1 270 542 851 288 509 financial 508 assets Cash and cash 2 equivalents 702 041 883 079 Total assets 565 445 243 515 484 783
Equity and liabilities Equity Share capital 3 50 000 50 000 000 000 Reserves 4 3 039 119 86 038 attributable to ordinary shares Retained income attributable 5 2 582 201 1 226 to ordinary shares 749
55 621 320 51 312 787 Reserves and retained income 6 50 591 878 11 815 attributable to preference 084 shares Reserves 4 27 352 070 774 346 Retained 5 23 239 808 11 040 income 738 Total Equity 106 213 198 63 127 871
Liabilities Non-current 456 966 433 450 140 liabilities 062 Other 7 450 000 450 000 financial 000 000 liabilities Deferred tax 6 966 433 140 062 Current 2 265 612 2 216 liabilities 850 Trade and other 1 003 978 678 359 payables Current tax 1 261 634 1 538 payable 491
Total equity and 565 445 243 515 484 liabilities 783 Reviewed Audited 31 March 31 March
2012 2011 Statement of Comprehensive R R Income
Revenue 25 925 159 24 041 715 Operating (7 613 (6 376 expenses 484) 434) Operating 18 311 675 17 665 Profit 281 Finance costs (113) (866)
Profit before 18 310 809 17 665 taxation 168 Taxation (4 756 287) (5 053 413)
Profit after 13 554 12 611 taxation 522 755 Available-for-sale financial 36 357 085 1 000 assets adjustments 446 Taxation related to components of other (6 826 280) (140 comprehensive income 062) 29 530 805 860 384
Total comprehensive income 43 085 328 13 472 139 Total comprehensive income attributable to: Ordinary 4 308 533 1 347 shareholders 214 Preference 38 776 794 12 124 shareholders 925 43 085 327 13 472 139
Statement of Changes in Equity Share Share Total Fair value Retained Total capital premium share adjustment income/(Lo Equity
capit assets - ss) al available- for-sale reserve
R R R R R R Balance at 31 70 - (344 268) (344 March 2010 - 70 198) Changes in equity Total - 860 384 12 611 755 13 472 comprehensive - - 139 income Issue of 49 930 49 - 49 999 ordinary 49 950 999 - 930 shares 000 930 Balance 31 50 49 950 860 384 12 267 487 63 127 March 2011 000 000 50 871 000
000 Changes in equity Total - - 29 530 805 13 554 522 43 085 comprehensive 327 income Balance 31 50 49 950 50 30 391 189 25 822 009 106 213 March 2012 000 000 000 198 000
Reviewed Audited 31 March 31 March
2012 2011 R R Statement of Cash Flows Cash flows from operating activities
Cash utilised in (7 218 827) (11 920 operations 757) Interest 24 050 488 23 452 income 240 Dividends 1 874 671 589 475 received Finance costs (866) (113) Tax paid (5 033 144) (3 514 922) 13 672 322 8 605 923
Cash flows from investing activities
Purchase of financial (13 853 (507 384 assets 360) 152) (13 853 (507 384
360) 152) Cash flows from financing activities Proceeds on - 49 999 share issue 930 Proceeds from other - 450 000 financial liabilities 000 Net movement on - (338 shareholders` loans 622)
- 499 661 308 Total cash movement for the (181 038) 883 079 period Cash at beginning of 883 079 - period
Total cash and cash equivalents end of 702 041 883 079 period
Notes to the annual financial results for the year ended 31 March 2012 1 Other financial assets Available-for-sale Listed and unlisted shares 47 641 225 17 631 - Quoted 034 Unlisted - Unquoted 280 000 280 000 Unit trusts 240 131 058 201 964 056 288 052 283 219 875
090 Money market funds 270 542 851 288 509 508 558 595 134 508 384
598 The fair values of the financial assets were determined as follows: listed and unlisted quoted investments are based on the quoted market price and unlisted securities on the last available traded price. 2 Cash and cash equivalents Bank balances 702 041 883 079 Reviewed Audited
31 March 31 March 2012 2011 R R 3 Share capital Authorise d 5 000 000 Ordinary shares of R0.01 50 000 50 000 each 100 000 000 Redeemable, 1 000 000 1 000 participating, non-cumulative 000 Preference shares of R0.01 each Issued 5 000 000 Ordinary shares of R0.01 50 000 50 000 each Share premium 49 950 000 49 950 000
50 000 000 50 000 000
4 Reserves The available-for-sale reserve comprises all fair value adjustments on available-for-sale financial instruments. When an asset or liability is derecognised, the fair value adjustment relating to that asset or liability is transferred to profit or loss. Available-for-sale financial 37 357 622 1 000 instruments 446 Deferred tax on available-for-sale (6 966 433) (140 financial instruments 062)
30 391 189 860 384 The reserves are attributable to the following classes of shareholders: 5 000 000 Ordinary 3 039 119 86 038 shares 45 000 000 Redeemable, 27 352 070 774 346 participating, non-cumulative preference shares 30 391 189 860 384
5 Retained income The retained income is attributable to the following classes of shareholders: 5 000 000 Ordinary 2 582 201 1 226 shares 749 45 000 000 Redeemable, 11 040 participating, non-cumulative 23 239 808 738 preference shares 25 822 009 12 267
487 6 Preference shareholders` Interest Reserves and retained income are divided between the ordinary and preference shareholders according to Article 4.5.3.2 of the Articles of Association of the Company. Refer to notes 4 and 5 for the various allocations Reserves: Fair value adjustments of 27 352 070 774 346 assets-available-for-sale reserve Retained income 23 239 808 11 040
738 50 591 878 11 815 084
7 Other financial liabilities Held at amortised cost 45 000 000 Redeemable, 450 000 000 450 000 participating. Non- 000 cumulative preference shares The other financial liabilities consists of 45 000 000 redeemable, participating, non-cumulative preference shares of R0.01 each and a share premium of R9.99 each, which shares are listed on the JSE Limited. These redeemable, participating, non-cumulative preference shares share in the reserves and the retained income of the company as per note 4 and 5. 8 Events after balance sheet date
The directors are not aware of any matter or circumstance arising since the end of the financial year.
Basis of accounting preparation The accounting policies applied for the year are consistent, in all material respects, with those used in the Annual Financial Statements of the prior period in accordance with the recognised and measurements criteria of International Reporting Standards (IFRS) and the presentation and disclosure requirements of International Accounting Standards 34, Interim Financial Reporting, as well as AC 500 standards as issued by the Accounting Practices Board, the Listings Requirements of the JSE and the Companies Act 71 of 2008.
These condensed financial results were prepared under the review of Mr Michael Arbuthnot CA(SA)in his capacity as financial manager. The Annual Financial results have been prepared in accordance with the IFRS and IFRIC interpretations as adopted for use in South Africa at the time of the preparation of the information. As these standards and interpretations are subject to ongoing review, they may be amended between the date of this report and the finalization of the annual financial statements for the year ended 31 March 2012. Segmental analysis
The directors considered the implications of IFRS 8 Operating Segments and are of the opinion that the operations of the company are substantially similar and that the risks and returns of these operations are likewise similar. Resource allocation and the management of the operation are performed on an aggregated basis, and as such the company is considered to be a singly aggregated business and therefore is no additional reporting requirements in terms of IFRS 8.
Commentary RAC`s net asset value per share (for both the unlisted ordinary and the listed preference shares) increased from R10.26 to R11.12 over the past year. This reflects the fact that the bulk of the company`s assets were still in the form of cash and money market investments for most of the year. The book value of all RAC`s equity investments stands at R123.3 million while the market value of these investments at year-end was R162.1 million. At 8.4% (after tax), the increase in net asset value per share compares respectably to that delivered by the major asset class indices in South Africa of 7.5% for equities (FTSE/JSE All Share), 13.1% for bonds (South Africa All Bond Index) and 5.3% for cash (Short Term Fixed Income - SteFI - Call) over the same period. By year end, on a see-through basis, 28.3% (2011: 9.3%) of RAC`s assets were invested in listed and unlisted equities, with the balance held in cash and money market investments. Included in the cash and money market investments is a balance of R91.2 million earmarked for the funding of RAC`s interest in the Namaqualand Mines transaction, on which we have commented before. If this balance were included as an equity investment, it would raise the percentage of the portfolio invested in equity to 44.6%. As the percentages above suggest, we managed to deploy capital into a select number of attractive publicly traded equity opportunities during the year. As mentioned before, and in an effort to protect our investment opportunity set from competition, we generally refrain from disclosing details about our activities in publicly traded equities until such time as we have completed an ownership cycle (i.e. buy, hold and sell). But it is worth noting that many of the shares we own and were researching as potential investments experienced substantial share price increases during the last six months. This triggered a limited amount of selling activity on our part, but we have not completed a full ownership cycle with any of the investments owned by RAC yet. It is now almost a year since the bid of the Emerald Panther consortium (of which RAC is a member) for Namaqualand Mines was accepted. However, negotiations to finalise the exact terms of the investment continue. We will report progress in this matter when possible and appropriate. At year end, the publicly traded equities in RAC`s portfolio were in aggregate priced at about 68% of our estimate of fair value. This is attractive, but a notable contraction in the margin of safety from the 58% of fair value that the portfolio was priced at when we last disclosed this number with the interim results of 30 September 2011. We continue to investigate potential investments, both publicly traded and private, but the pace at which we deploy capital into opportunities will always depend on the value we find: the more plentiful the value, the more rapid will our pace of capital deployment be. We are selective in committing capital, and continue to pass on many opportunities that are presented to us. We would like to be able to invest meaningful amounts of capital in the year to come, but there is no guarantee that this will be possible. Net asset value(NAV) Net Asset Value of preference shares as 1 1 at 31 March 2012 (cents per share) 112.42 026.26 Headline earning per share (cents per 27.11 25.22 share) The preliminary financial results for the year ended 31 March 2012 were reviewed by the company`s auditors, BDO South Africa Incorporated and their report is available for inspection at the Company`s registered office. The review was conducted in accordance with IRSE 2410: Review of Interim Financial Information performed by the Independent Auditor of the entity. Signed on behalf of the board P Viljoen Cape Town, 24 April 2012 Directors: P Viljoen (Chairman), V Davis, T de Bruyn, L Potgieter, G Pretorius, W Stals, J G Swiegers Registered Office: 7th Floor Claremont Central 8 Vineyard Road Claremont 7700 South Africa Company Secretary: G Simpson Sponsor: Deloitte & Touche Sponsor Services (Pty) Ltd Transfer Secretaries: Link Market Services South Africa (Pty) Limited Date: 24/04/2012 14:11:01 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.

Share This Story