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Condensed Unaudited Interim Results for the six months
ended 30 June 2012
CAPE EMPOWERMENT LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/001807/06)
Share code: CAP ISIN: ZAE000145066
("the Group" or "the company")
CONDENSED UNAUDITED INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 JUNE 2012
TANGIBLE NAV PER SHARE +2% TO 61,2 CENTS
CONDENSED UNAUDITED GROUP STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
six months six months 12 months
30 June 30 June 31 December
R'000 Notes 2012 2011 2011
Revenue 99 332 98 719 213 728
Cost of sales (68 368) (79 273) (151 505)
Gross profit 30 964 19 446 62 223
Other income 270 165 2 146
Operating expenses (37 022) (26 409) (74 655)
Operating loss before capital items (5 788) (6 798) (10 286)
Loss on sale of capital assets 3 (8 332) (9 206) (10 771)
Impairments 1 (4 061) (2 902) (8 865)
Operating loss after capital items (18 181) (18 906) (29 922)
Investment revenue 8 308 8 533 13 115
Fair value adjustments 2 23 659 3 277 60 985
Gain on deconsolidation of subsidiary 2 876
Finance costs (284) (1 343) (2 432)
Profit/(loss) before taxation 13 502 (8 439) 44 622
Taxation (8 045) 709 (17)
Total comprehensive income/(loss) for
the period 5 457 (7 730) 44 605
Non-controlling interest 644 62 789
Total comprehensive income/(loss)
attributable to owners of the parent 6 101 (7 668) 45 394
Basic earnings/(loss) per share (cents) 1,2 (1,5) 8,7
Headline earnings/(loss) per share (cents) 1,2 (1,5) 8,1
Fully diluted earnings/(loss) per share
(cents) 1,1 (1,4) 8,2
Fully diluted headline earnings/(loss) per
share (cents) 1,2 (1,4) 7,7
CONDENSED UNAUDITED GROUP STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
30 June 30 June 31 December
R'000 2012 2011 2011
ASSETS
Non-current assets 261 755 88 142 178 396
Investment property 3 640 3 640 3 640
Property, plant and equipment 7 041 11 315 7 673
Other financial assets 251 074 72 276 167 083
Deferred tax assets 911
Current assets 197 810 315 197 257 140
Inventories 94 861 102 000 92 431
Other financial assets 6 553 87 536 89 599
Trade and other receivables 54 208 46 074 41 763
Cash and cash equivalents 42 188 79 587 33 347
TOTAL ASSETS 459 565 403 339 435 536
EQUITY AND LIABILITIES
Share capital 266 314 266 314 266 314
Share based payment reserve 2 880 1 898 2 447
Treasury shares (40 197) (40 197) (40 197)
Retained income 89 507 30 344 83 406
Non-controlling interests 2 975 4 346 3 619
TOTAL EQUITY 321 479 262 705 315 589
LIABILITIES
Non-current liabilities 75 225 91 565 5 116
Borrowings 68 681 89 843 4 139
Deferred tax 6 544 1 722 977
Current liabilities 62 861 49 069 114 831
Borrowings 90 115 72 837
Trade and other payables 62 574 48 757 41 797
Dividend payable 197 197 197
TOTAL LIABILITIES 138 086 140 634 119 947
TOTAL EQUITY AND LIABILITIES 459 565 403 339 435 536
Net asset value per share (cents) 2% 61,2 49,7 60,0
Net tangible asset value per share (cents) 2% 61,2 49,7 60,0
CONDEDNSED UNAUDITED GROUP STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
six months six months 12 months
30 June 30 June 31 December
R'000 2012 2011 2011
Cash flow from operating activities 8 784 (8 786) (2 852)
Cash flows from investing activities 8 371 55 618 23 616
Cash flow from financing activities (8 314) (4 712) (17 694)
Net increase in cash and cash equivalents 8 841 42 120 3 070
Cash resources at the beginning of the period 33 347 28 210 30 277
Cash resources at the end of the period 42 188 70 330 33 347
CONDENSED UNAUDITED GROUP STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 June 2012
Total
Share attributable
based to owners Non-
Share Share Treasury payment Retained of the controlling
R'000 Capital premium shares reserve income parent interests Total
Balance at
1 January 2011 29 764 236 550 (40 197) 1 350 38 012 265 479 4 408 269 887
Total
comprehensive
income for the year 45 394 45 394 (789) 44 605
Share-based
payments 1 097 1 097 1 097
Balance at
31 December
2011 29 764 236 550 (40 197) 2 447 83 406 311 970 3 619 315 589
Total
comprehensive
income for the
period 6 101 6 101 (644) 5 457
Share-based
payments 433
Balance at
30 June 2012 29 764 236 550 (40 197) 2 880 89 507 318 071 2 975 321 046
OPERATING SEGMENTS
for the six months ended 30 June 2012
Gaming Security
Property Property and and
R'000 development Other leisure services Dynamic Other Total
Total assets 85 028 238 338 29 101 50 060 57 038 459 565
Total liabilities (64 365) (6 289) (17 111) (28 215) (22 106) (138 086)
Total net assets 20 663 232 049 11 990 21 845 34 932 321 479
Percentage of total
net assets 6% 72% 4% 7% 11% 100%
Revenue 52 370 46 962 99 332
Profit/(loss) before
tax (3 264) 22 562 (2 133) (1 244) 4 112 (6 531) 13 502
SUPPLEMENTARY INFORMATION
30 June 30 June 31 December
2012 2011 2011
Number of shares and weigthed number of shares in issue ('000) 520 284 520 284 520 284
Fully diluted number and weighted number of shares in issue ('000) 550 284 550 284 550 284
RECONCILIATION OF HEADLINE EARNINGS/(LOSS)
Profit/(loss) for the period 6 101 (7 668) 45 394
(Profit)/loss on sale of property, plant and equipment 253 (14) 49
Gain on deconsolidation of subsidiary (2 876)
Fair value adjustment on investment property (220) (220)
Tax effect 31
Headline earnings/(loss) for the period 6 354 (7 871) 42 347
NOTES TO THE RESULTS
R'000
1. Impairments
Impairment of capitalised interest on land
under development (2 964)
Impairment of other financial assets (1 097)
(4 061)
2. Fair value adjustments
118 297 000 B-linked units in Ascension Poperties Limited 23 659
23 659
3. Loss on sale of capital assets
The loss on sale of capital assets include a loss of R8,6 million on the sale
of the Group's remaining Grand Parade Investments shares in March 2012.
The Group received a special dividend of R6,5 million prior to the sale.
COMMENTARY
1. INTRODUCTION
Cape Empowerment Limited is a black-owned and managed diversified
investment holding company with strong broad-based empowerment
credentials. We hold substantial investments in various sectors of the
economy, including Property, Security and Services and Light Engineering.
2. BASIS OF PREPARATION
The condensed unaudited consolidated interim results for the six
months ended 30 June 2012 have been prepared in accordance
with the requirements of the South African Companies Act (No. 71
of 2008, as amended) IAS 34 Interim Financial Reporting and the
AC 500 standards issued by the Accounting Practices Board and in
compliance with the Listings Requirements of the JSE Limited. The
interim results do not include all the information required in annual
financial statements in accordance with IFRS and should be read in
conjunction with the consolidated financial statements of the Group for
the year ended 31 December 2011.
The interim results have been prepared under supervision of the financial
director of the company, Henry Dednam CA(SA), in accordance with the
accounting policies adopted in the last annual financial statements for the
year ended 31 December 2011.
These interim results have not been audited or reviewed by the Group's
auditors.
3. Overview
3.1 Results
The Group's NAV per share increased with 2% to 61,2 cents per
share, mainly as a result of the fair value adjustment on the Group's
interest in Ascension Properties Limited ("Ascension") following the
successful listing of Ascension on the JSE on 11 June 2012. As
previously stated the Group is repositioning its investment focus
on the property sector.
Dynamic Engineering produced a solid performance for the six
months to June 2012.
3.2 Prospects
The outlook for the remainder of the year is expected to remain
stable. Ascension has recently announced various transactions in
line with their high-growth strategy and we support their strategy
in this regard.
AC Nissen SL Rai
Chairman Chief Executive Officer
Cape Town
27 September 2012
Board of directors
AC Nissen** (Chairman), TD Rai (Deputy Chairman), SL Rai (Chief Executive Officer),
J de Villiers (Managing Director), HB Dednam (Financial Director), PB Hesseling*,
E Tshabalala**, H Takolia**
*Non-executive **Independent non-executive
Company secretary: HB Dednam
Registered office: 5th Floor, 14 Long Street, Cape Town, 8001
Sponsor: Sasfin Capital (a division of Sasfin Bank Limited)
Date: 27/09/2012 05:24:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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