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Consolidated Unaudited Interim Results for the Six Months Ended 31 August 2012
Adrenna Property Group Limited
(formerly Colliers South Africa Holdings Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1998/012245/06)
(JSE Share code: ANA
ISIN: ZAE000163580)
CONSOLIDATED UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2012
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
Six months ended 12 months ended
31 August 31 August 29 February
2012 2011 2012
R'000 (unaudited) (unaudited) (audited)
Revenue 14 278 28 476 26 324
Operating income before interest
and fair value adjustments 6 319 4 766 9 243
Fair value adjustments (15) 2 697
Investment income 51 104 62
Finance costs (4 265) (4 689) (8 106)
Net income before taxation 2 105 166 3 896
Taxation (636) (1 723) (186)
Income/(Loss) after taxation from
continuing operations 1 469 (1 557) 3 710
Loss after taxation from disposal group (56 909)
Income/(Loss) for the period 1 469 (1 557) (53 199)
Income/(Loss) attributable to:
Ordinary shareholders 1 469 (1 519) (53 199)
Non-controlling interests (38)
Total net profit/(loss) 1 469 (1 557) (53 199)
Other comprehensive income:
Foreign currency translation reserve 6
Sale of group companies 848
Total comprehensive income
attributable to:
Ordinary shareholders 1 469 (665) (53 199)
Non-controlling interests (38)
1 469 (703) (53 199)
CONDENSED STATEMENT OF FINANCIAL POSITION
31 August 31 August 29 February
2012 2011 2012
R'000 (unaudited) (unaudited) (audited)
ASSETS
Non-current assets
Property, plant and equipment 4 515
Investment properties 190 053 204 239 190 053
Investments and loans 16 369
Operating lease debtors 3 020 3 020
Deferred taxation 5 573 13 551 5 344
198 646 238 674 198 417
Current assets
Investments and loans 11 719 12 359
Inventory 8 736 45 370 10 188
Accounts receivable 3 027 18 385 1 905
Operating lease debtors 705 696 705
Taxation receivable 58
Cash and cash equivalents 242 1 817 227
24 429 66 326 25 384
Total assets 223 075 305 000 223 801
EQUITY AND LIABILITIES
Share capital and reserves 89 048 122 644 87 579
Non-current liabilities
Borrowings 78 629 94 749 80 346
Deferred taxation 22 432 20 299 22 354
101 061 115 048 102 700
Current liabilities
Current portion of borrowings 18 277 34 621 17 557
Investments and loans 1 727
Accounts payable 2 674 18 832 2 370
Operating lease creditors 20
Taxation payable 702 1 933 222
Bank overdraft 11 313 11 902 11 646
32 966 67 308 33 522
Total equity and liabilities 223 075 305 000 223 801
CONDENSED GROUP CASH FLOW STATEMENT
Six months ended 12 months ended
31 August 31 August 29 February
2012 2011 2012
R'000 (unaudited) (unaudited) (audited)
Cash generated/(utilised) by operations 2 433 (81) (4 631)
Cash flows from investing activities (18) 6 252 2 331
Cash flows from financing activities (2 067) (8 125) (988)
Movement in cash and cash equivalents 348 (1 954) (3 288)
Cash and cash equivalents
at the beginning of the period (11 419) (8 131) (8 131)
Cash and cash equivalents
at the end of the period (11 071) (10 085) (11 419)
CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY
31 August 31 August 29 February
2012 2011 2012
R'000 (unaudited) (unaudited) (audited)
STATED CAPITAL
Ordinary stated capital 567 558 567
Share premium 8
567 566 567
RESERVES
Retained income
Balance at beginning of period 87 012 122 652 122 652
Comprehensive income/(loss) attributable
to ordinary shareholders 1 469 (665) (53 199)
Reduction of non-controlling interest
due to MBO 17 559
Balance at end of period 88 481 121 987 87 012
Reserves attributable to:
Ordinary shareholders 88 481 121 987 87 012
Non-controlling interests 91
TOTAL RESERVES 88 481 122 078 87 012
TOTAL EQUITY 89 048 122 644 87 579
SUPPLEMENTARY INFORMATION
31 August 31 August 29 February
2012 2011 2012
(unaudited) (unaudited) (audited)
Number of ordinary shares in issue
at beginning of the period ('000) 55 915 55 915 55 915
Less: Treasury shares ('000) (133)
Number of ordinary shares in issue
at end of the period ('000) 55 915 55 782 55 915
Weighted average number of shares
in issue during the period ('000) 55 915 55 782 55 915
Reconciliation of headline
earnings/(loss):
Net income/(loss) per statement of
comprehensive income
Attributable to continuing operations 1 469 (665) 3 710
Attributable to disposal groups (56 909)
Profit on sale of investment property
Attributable to continuing operations (115)
Attributable to disposal groups
Loss on sale of property, plant
and equipment
Attributable to continuing operations
Attributable to disposal groups 156
Impairments
Attributable to continuing operations
Attributable to disposal groups 19 384
Reversal of provisions
Attributable to continuing operations (100)
Attributable to disposal groups (775)
Forgiveness of debt
Attributable to continuing operations
Attributable to disposal groups (872)
Fair value adjustments (net of taxation)
Attributable to continuing operations 13 (2 000)
Attributable to disposal groups
Headline earnings/(loss):
Attributable to continuing operations 1 469 (652) 1 495
Attributable to disposal groups (39 016)
Basic earnings/(loss) and diluted basic
earnings/(loss) per share (cents)
Attributable to continuing operations 2,6 (1,2) 6,6
Attributable to disposal groups (101,8)
Headline earnings/(loss) and
diluted headline earnings/(loss)
per share (cents)
Attributable to continuing operations 2,6 (1,2) 2,7
Attributable to disposal groups (69,8)
Dividends per share (cents)
Net asset value per share (cents) 159,3 219,9 156,6
Net tangible asset value
per share (cents) 159,3 219,9 156,6
Contingent liabilities (R'000)
There are no instruments in issue that have a dilutive effect on earnings.
NOTES
BASIS OF PREPARATION
These condensed consolidated financial statements have been prepared in accordance with IAS 34: Interim
Financial Reporting, the requirements of the Companies Act of South Africa and the Listings Requirements
of the JSE Limited. The unaudited condensed consolidated results have been prepared on the going
concern basis as the directors are of the view that the group has adequate resources in place to continue in
operation for the foreseeable future. The accounting policies applied are in compliance with International
Financial Reporting Standards and the AC 500 Standards as issued by the Accounting Practices Board or its
successor and are consistent with those applied in the most recent annual financial statements.
CONDENSED SEGMENT RESULTS
Operating revenue and income/(loss) before taxation (after elimination of intra-group transactions and
balances) has been incurred by the segments as follows:
Six months ended 12 months ended
31 August 31 August 29 February
2012 2011 2012
R'000 (unaudited) (unaudited) (audited)
Revenue
Investment Property Holding 14 278 9 237 26 324
Property-related services 17 184
Property held for resale 90
Head office administration 1 965
14 278 28 476 26 324
Income/(loss) before taxation
Investment Property Holding 2 740 3 060 7 099
Property-related services 261
Property held for resale (286)
Head office administration (635) (2 869) (3 203)
Income before taxation from
continuing operations 2 105 166 3 896
Total assets
Investment Property Holding 210 214 245 102 211 570
Property-related services 17 431
Property held for resale 12 812
Head office administration 12 861 29 655 12 231
Total assets attributable to
continuing operations 223 075 305 000 223 801
Total liabilities
Investment Property Holding 122 482 144 923 125 318
Property-related services 13 897
Property held for resale 2 155
Head office administration 11 545 21 381 10 904
Total liabilities attributable
to continuing operations 134 027 182 356 136 222
GENERAL REVIEW AND FINANCIAL RESULTS
Difficulties arise in the comparability of figures presented, due to the fact that the results for both
periods ended 31 August 2011 and 29 February 2012 contain results contributed by non-core subsidiaries
disposed of during the financial year ended 29 February 2012. The current period of six months ended
31 August 2012 reflects the results of the listed group without any influence from the non-core subsidiaries
disposed of.
While taking the abovementioned into cognisance, the net profit before taxation for the six months
ended 31 August 2012 reflected a significant improvement when compared with the period ended
31 August 2011. The net profit before tax is also well on its way to equalling or improving upon the figure
for the year ended 29 February 2012. This performance is due to a combination of a well-performing
investment property segment and extensive cost-control policies implemented throughout the group.
Total comprehensive income for the six months ended 31 August 2012 also shows markedly improved
figures in comparison with the prior periods presented.
The directors continue to seek opportunities to expand the property portfolio within the group and to
reduce existing borrowings.
During the current period a subsidiary company holding investment property disposed of an excess
residential unit held as part of a small number of units classified as inventory. The unit was disposed
of at a marginal loss, with the greater part of the proceeds being utilised to reduce the existing bond
in the subsidiary. Inventory decreased by R1 452 000, with the associated bond liability being reduced
by R1 362 000.
Every effort has been made in reducing the existing bank overdraft, with an amount approximating
R333 000 having been allocated toward this reduction in the current period. This has had the effect of a
marginal increase in the net asset value per share. This trend is expected to continue.
As previously stated the directors will continue to focus on the generation of additional net asset value
through the expansion of the property portfolio coupled with efforts to reduce borrowings and limit
unnecessary overheads.
A directors' valuation of the remaining investment property was performed, and no significant change in
fair value occurred since the beginning of the current financial year.
SUBSEQUENT EVENTS
Post-31 August 2012, an agreement was concluded for the disposal of three units (held as investment
property) of the Salt Rock development for a consideration of R4 350 000 excluding Value-Added
Taxation. Inventory has been calculated to decrease by R3 450 000 and the transaction should yield an
accounting profit of approximately R652 000. The entirety of the proceeds, less commission and sundry
transaction costs, will be utilised against the associated bond liability. It is anticipated that the bond
liability will decrease by approximately R4 000 000.
DIVIDENDS
Taking into account the negative impacts of the depressed economy and related problems in the property
industry, the directors have resolved to retain cash in the group to ensure future growth. As such, no
dividend has been recommended.
Note
A typographical error occurred during the printing of the Annual Financial Statements distributed to
shareholders relating to the year-end 29 February 2012.
A balance of R4 191 000 per the Cash Flow Statement
was erroneously reflected on the "Movement in outside shareholders' interest" line. This figure should have been
reflected as part of the year's "Movement in financial assets" (one line down from its shown position).
It is stressed that the figure itself is correct, the total of "Cash flows from Investing Activities"
remains the same and the end result of the Cash Flow Statement itself is unaffected.
DIRECTORS
R P Fertig (Chief Executive Officer)
W P Alcock (Chairman), B W Kaiser, B Mothelesi*, M Moela*
(Non-executive) (*Independent non-executive)
REGISTERED OFFICE
2969 William Nicol Drive, Wedgewood Link, Bryanston, 2021
TRANSFER SECRETARIES
Computershare Investor Services (Pty) Limited
70 Marshall Street, Johannesburg, 2001
SPONSOR
ARCAY MOELA SPONSORS (PTY) LIMITED
Date: 05/10/2012 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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