Wrap Text
Unaudited interim results for the six months ended 30 September 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”)
Unaudited interim financial results for the six months ended 30 September 2012
Six months ended Twelve Months Six Months
Notes 30 September 2012 ended 31 ended 30
March 2012 September 2011
R R R
Statement of Financial Position
Assets
Non-current assets
Other financial assets 1 363 553 765 288 052 283 236 629 884
Current assets 208 657 001 277 392 960 287 477 345
Trade and other receivables - 6 148 068 -
Cash and Money Market funds 208 657 001 271 244 892 287 477 345
Total assets 572 210 766 565 445 243 524 107 229
Equity and liabilities
Equity
Share capital 2 50 000 000 50 000 000 50 000 000
Ordinary shareholders interest 3 6 280 862 5 621 320 2 229 642
56 280 862 55 621 320 52 229 642
Preference shareholders interest 3 56 527 756 50 591 878 20 066 770
Total Equity 112 808 618 106 213 198 72 296 412
Liabilities
Non-current liabilities 456 869 334 456 966 433 451 059 135
Other financial liabilities 4 450 000 000 450 000 000 450 000 000
Deferred tax 5 6 869 334 6 966 433 1 059 135
Current liabilities 2 532 814 2 265 612 751 682
Trade and other payables 827 913 1 003 978 630 978
Current tax payable 1 704 901 1 261 634 120 704
Total equity and liabilities 572 210 766 565 445 243 524 107 229
Six months ended Twelve Months Six Months
30 September ended 31 ended 30
2012 March 2012 September 2011
Statement of Comprehensive Income R R R
Revenue 11 681 766 25 925 159 8 335 709
Operating expenses (3 987 566) 7 613 484 (3 499 443)
Operating Profit 7 694 200 18 311 675 4 836 266
Finance costs - (866) -
Realised gain on the sale of investment 1 520 604 - -
Option Income 332 200 - -
Profit before
taxation 9 547 004 18 310 809 4 836 266
Taxation (2 472 102) (4 756 287) (1 313 459)
Profit after taxation 7 074 902 13 554 522 3 522 807
Other comprehensive income (479 482) 29 530 805 5 645 733
Available-for-sale financial assets adjustment (576 490) 36 357 085 6 564 806
Taxation related to components of other
comprehensive income 97 008 (6 826 280) (919 073)
Total comprehensive income 6 595 420 43 085 327 9 168 540
Total comprehensive income attributable
to:
Ordinary shareholders 659 542 4 308 533 916 854
Preference shareholders 5 935 878 38 776 794 8 251 686
6 595 420 43 085 327 9 168 540
Statement of Changes in Equity
Share Share Total Fair value Retained Total Equity
capital premium share adjustment assets income
capital – available-for-
sale reserve
R R R R R R
Balance at 31
March 2011 50 000 49 950 000 50 000 000 860 384 12 267 487 63 127 871
Changes in equity
Total
comprehensive
income - - - 5 645 733 3 522 807 9 168 540
Balance 30
September 2011 50 000 49 950 000 50 000 000 6 506 117 15 790 294 72 296 411
Changes in equity
Total
comprehensive
income - - - 23 885 072 10 031 715 33 916 787
Balance 31 March
2012 50 000 49 950 000 50 000 000 30 391 189 25 822 009 106 213 198
Changes in equity
Total
comprehensive
(loss)/income - - - (479 482) 7 074 902 6 595 420
Balance 30
September 2012 50 000 49 950 000 50 000 000 29 911 707 32 896 911 112 808 618
(note 2) (Note 2) (Note 2) (Note 3) (Note 3)
Six months ended Twelve Months Six Months
30 September ended 31 ended 30
2012 March 2012 September 2011
R R R
Statement of Cash Flows
Cash flows from operating
activities
Cash utilised in/(received from)
operations 2 336 566 (7 218 827) 2 670 282
Interest income 10 256 969 24 050 488 8 087 763
Dividends received 1 424 797 1 874 671 247 946
Finance costs - (866) -
Tax paid (2 049 335) (5 033 144) (2 731 246)
11 968 997 13 672 322 8 274 745
Cash flows from investing activities
Proceeds from sale of non-current assets 1 520 604 - -
Purchase of financial assets (14 164 908) (13 853 360) (9 047 587)
(12 644 304) (13 853 360) (9 047 587)
Total cash movement for the period (675 307) (181 038) (772 842)
Cash at beginning of period 702 041 883 079 883 079
Total cash and cash equivalents end of period 26 734 702 041 110 237
Notes to the interim results for the period ended 30 September 2012
Six Months
Twelve Months ended 30
Six months ended ended 31 September
30 September 2012 March 2012 2011
R R R
1 Other financial assets
Available-for-sale financial instruments
Non-current assets
Listed - Quoted 78 386 979 34 373 878 19 486 070
Unlisted – Quoted 12 358 301 13 267 347 3 731 064
Unlisted - Unquoted 29 129 101 280 000 280 000
Unit trusts 243 679 384 240 131 058 213 132 750
363 553 765 288 052 283 236 629 884
2 Ordinary Share Capital
Authorised
5 000 000 Ordinary shares of R0.01 each 50 000 50 000 50 000
Issued
5 000 000 Ordinary shares of R0.01 each 50 000 50 000 50 000
Share premium 49 950 000 49 950 000 49 950 000
50 000 000 50 000 000 50 000 000
3 Reserves and Retained Income
The fair value adjustment assets 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 instruments 36 781 041 37 357 622 7 565 252
Deferred tax on available-for-sale financial
instruments (6 869 334) (6 966 433) (1 059 135)
Reserves 29 911 707 30 391 189 6 506 117
Retained income 32 896 911 25 822 009 15 790 295
Total Reserves and Retained Income 62 808 618 56 213 198 22 296 412
Reserves and Retained Income attributable to:
Ordinary shareholders:
Reserves: Fair value adjustments of assets-
available-for-sale reserve 2 991 171 3 039 119 650 612
Retained income 3 289 691 2 582 201 1 579 030
6 280 862 5 621 320 2 229 642
Preference shareholders:
Reserves: Fair value adjustments of assets-
available-for-sale reserve 26 920 536 27 352 070 5 855 505
Retained income 29 607 220 23 239 808 14 211 265
56 527 756 50 591 878 20 066 770
Total Reserves and Retained Income 62 808 618 56 213 198 22 296 412
4 Other financial liabilities
Preference Shares
Authorised: 100 000 000 Redeemable,
participating, non-cumulative Preference
shares of R0.01 each 1 000 000 1 000 000 1 000 000
Held at amortised cost:
Issued: 45 000 000 Redeemable,
participating, non-cumulative preference
shares 450 000 000 450 000 000 450 000 000
5 Deferred Tax
Recognised in other comprehensive income 6 869 334 6 966 433 919 073
Reconciliation of deferred tax liability
At beginning of year 6 966 433 140 062 140 062
Temporary difference on available-for-sale
instruments adjustment (97 099) 6 826 371 779 011
6 869 334 6 966 433 919 073
6 Net asset value (NAV)
Net Asset Value per preference shares as at
30 September 2012 (cents per share) 1 126 1 112 1 045
Headline/basic and diluted earnings per
ordinary and preference share (cents per
share) 14 27 7
7 Events after balance sheet date
The directors are not aware of any matter or circumstance arising since the end of the period.
Basis of accounting preparation
The accounting policies applied for the six months are consistent, in all material respects, with those
used in the Annual Financial Statements of the prior period in accordance with the recognized 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 Listing Requirements of the JSE and the
Companies Act 71 of 2008.
The interim 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 the subject of ongoing review, they may be amended between the date of this report
and the finalization of the annual financial statements for the year ending 31 March 2013. The financial
results have been prepared under the supervision of Mr Lonn Potgeiter CA(SA).
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
The most notable investment made during the past six months has been our investment in The American
Home Investors Fund Ltd. This is an investment partnership that invests in single family residential
units in the south eastern states of the USA. We are of the opinion that this represents one of those
rare opportunities when all the elements of a good investment come together: sellers motivated by non-
economic reasons, a lack of buying due to regulatory constraints and good underlying fundamentals.
Our commitment to purchase Namaqualand Mines from De Beers Consolidated Mines Limited as part of a
consortium led by Trans Hex Group Limited is still in place, but has not been consummated yet, due to
one outstanding precedent condition. This condition relates to government action and we feel it is
important to resolve it appropriately before finalizing the transaction. We still expect to commit
about R100 million to this investment.
We continue to make steady progress in deploying capital to listed shares and shares that trade over
the counter, but we are struggling to find many new opportunities. The prices of smaller companies
have rallied strongly over the past 6 months, and, with few exceptions, the price to value
relationship is no longer as juicy as it once was.
On a 'see-through' basis, 43.6% of RAC's assets were invested at 30 September 2012. This excludes the
Namaqualand Mines commitment referred to above. The remainder of RAC's assets consists of cash and
money market investments. According to our estimates, the investments owned by RAC at 30 September
2012 were in aggregate priced at about 63% of fair value.
Signed on behalf of the board
P Viljoen
Cape Town, 8 November, 2012
Directors: P Viljoen (Chairman), T de Bruyn, G Pretorius, L Potgieter, M Davis, J Swiegers
Company Secretary: G Simpson
Registered Office:
7th Floor Claremont
Central
8 Vineyard Road
Claremont
7700
South Africa
Transfer Secretaries: Sponsor:
Link Market Services South Deloitte & Touche Sponsor Services
Africa (Pty) Limited, (Pty) Ltd
13th Floor, Rennie House Building 6, The Woodlands
19 Ameshoff Street 20 Woodlands Drive
Braamfontein, 2001 Woodmead, Sandton,
2196
South Africa
Date: 08/11/2012 05:35:00 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.
Sharenet Sites 
