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GRAND PARADE INVESTMENTS LIMITED - Unaudited interim results of Grand Parade Investments Limited (GPI) for the six months ended 31 December 2012

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Unaudited interim results of Grand Parade Investments Limited (GPI) for the six months ended 31 December 2012

Grand Parade Investments Limited 
(Incorporated in the Republic of South Africa)
(Registration number: 1997/003548/06)
Share code: GPL
ISIN:  ZAE000119814
("GPI" or "the company")

UNAUDITED INTERIM RESULTS
OF GRAND PARADE INVESTMENTS LIMITED (GPI)
FOR THE SIX MONTHS ENDED 31 DECEMBER 2012

Highlights

- 18% increase in Slots group GGR

- 11% increase in group revenue

- 12% increase in adjusted headline earnings per share

- Increase in dividend paid, in respect to the previous
  financial year, to 20.0 cents per share (12.5 cents ordinary
  and 7.5 cents special)

- Burger King Master Franchise for Southern Africa acquired

- Rights to manufacture gaming machines locally acquired

CONDENSED GROUP STATEMENT OF COMPREHENSIVE INCOME     
for the six months ended 31 December 2012

                                                                                       Unaudited       Unaudited      Audited
                                                                                     31 December     31 December      30 June
                                                                                            2012            2011         2012
                                                                             Notes        R'000s          R'000s       R'000s
Revenue                                                                          1       240 937         216 301      430 651
Cost of sales                                                                    2      (136 642)       (114 518)    (231 248)

Gross profit                                                                             104 295         101 783      199 403
Operating costs                                                                          (68 210)        (57 947)    (107 599)

Operating profit                                                                          36 085          43 836       91 804
Profit from equity-accounted investments                                         3        54 830          76 530      131 072
Profit on disposal of investments                                                4                       60 239       60 248
Realisation of fair value reserve                                                5                       35 588       35 588
Reversal of impairment of investment                                             6                          336          336
Depreciation and amortisation                                                           (17 499)        (18 342)     (38 610)

Net profit before finance costs and taxation                                              73 416         198 187      280 438
Finance income                                                                   7         3 070           3 084        6 797
Finance costs                                                                    8        (6 907)        (15 595)     (24 225)

Net profit before taxation                                                                69 579         185 676      263 010
Taxation                                                                         9        (6 796)         (4 214)     (11 598)

Net profit for the period                                                                 62 783         181 462      251 412

Other comprehensive income
Realisation of fair value reserve                                                                       (35 588)     (35 588)
Unrealised fair value losses on available-for-sale investments, net of tax                   (79)         (4 193)      (5 676)
Total comprehensive income for the period                                                 62 704         141 681      210 148

Profit for the period attributable to:
Ordinary shareholders                                                                     62 783         181 462      251 412

Total comprehensive income attributable to:
Ordinary shareholders                                                                     62 704         141 681      210 148

CONDENSED GROUP STATEMENT OF FINANCIAL POSITION
at 31 December 2012

                                                                       Unaudited     Unaudited     Audited
                                                                     31 December   31 December     30 June
                                                                            2012          2011        2012
                                                             Notes        R'000s        R'000s      R'000s

ASSETS
Non-current assets                                              11     1 443 279     1 360 037   1 406 521
Current assets                                                  12       399 292       741 217     461 805

Total assets                                                           1 842 571     2 101 254   1 868 326

EQUITY AND LIABILITIES
Total equity                                                           1 588 554     1 851 649   1 617 477
Non-current liabilities
 Deferred tax liability                                                  11 525        11 640      11 525
 Cumulative redeemable preference shares                       13       101 670       131 235     101 670
 Interest-bearing borrowings                                   13        24 000        40 000      36 000
 Provisions                                                                 620           156         173
 Finance lease liability                                                    165         1 260       1 134
Current liabilities                                             14       116 037        65 314     100 347

Total equity and liabilities                                           1 842 571     2 101 254   1 868 326

Net asset value (before deducting treasury shares) (cents)                   345           394         312
Net asset value (after deducting treasury shares) (cents)                    346           396         314
Tangible net asset value per share (cents)                                   306           356         351
Adjusted tangible net asset value per share (cents)                          306           358         352

CONDENSED GROUP STATEMENT OF CASH FLOWS                             
for the six months ended 31 December 2012

                                                                          Unaudited      Unaudited      Audited
                                                                        31 December    31 December      30 June
                                                                               2012           2011         2012
                                                                Notes        R'000s         R'000s       R'000s

Cash flows from operating activities
Cash generated from operations                                     15        48 684         13 893       48 344
Income tax paid                                                              (7 722)       (11 076)     (25 704)
Finance income                                                                3 070          3 084        6 797

Net cash inflow from operating activities                                    44 032          5 901       29 437

Cash flows from investing activities
Acquisition of plant and equipment                                          (20 713)       (18 989)     (35 647)
Acquisition of land and buildings                                           (35 675)                   (25 002)
Acquisition of intangibles                                                   (2 939)        (2 707)      (3 672)
Consideration from disposal of property, plant and equipment                      6             74          117
Proceeds from the sale of investments                                                     733 589      733 935
Dividends received                                                           66 203        144 193      182 686

Net cash inflow from investing activities                                     6 882        856 160      852 417

Cash flows from financing activities
Dividend paid                                                               (90 382)       (43 891)    (322 405)
Shares bought back                                                                                    (24 321)
Decrease in loans                                                  16        (8 053)      (173 817)    (178 494)
Finance costs                                                                (6 907)       (15 595)     (20 735)

Net cash outflow from financing activities                                 (105 342)      (233 303)    (545 955)

Net (decrease)/increase in cash and cash equivalents                        (54 428)       628 758      335 899
Cash and cash equivalents at the beginning of the period                    405 147         69 248       69 248

Cash and cash equivalents at the end of the period                          350 719        698 006      405 147

GROUP STATEMENT OF CHANGES IN EQUITY
for the six months ended 31 December 2012

                                         Capital                                         Available-for-
                                      redemption                                                   sale
                                         reserve      Ordinary        Share    Treasury      fair value    Accumulated
                                            fund share capital      premium      shares         reserve        profits         Total
                                          R'000s        R'000s       R'000s      R'000s          R'000s         R'000s        R'000s

Balance at 30 June 2011                      301           117      754 047      (4 451)         49 396        957 382     1 756 792
Total comprehensive income for the
period                                                                                      (39 781)       181 462       141 681
Ordinary dividends declared                                                                               (46 824)      (46 824)

Balance at 31 December 2011                  301           117      754 047      (4 451)          9 615      1 092 020     1 851 649
Total comprehensive income for the
period                                                                                       (1 483)        69 950        68 467
Dividends declared                                                                                       (280 944)     (280 944)
Share buy-back                                             (2)     (24 319)                                              (24 321)
Treasury shares issued to employees                                   521       2 105                                      2 626

Balance at 30 June 2012                      301           115      730 249      (2 346)          8 132        881 026     1 617 477
Total comprehensive income for the
period                                                                                          (79)        62 783        62 704
Dividends declared                                                                                        (91 902)      (91 902)
Conversion of par value shares to
non-par value shares                                  730 249     (730 249)                                                    
Treasury shares issued to employees                                              275                                        275

Balance at 31 December 2012                  301       730 364                  (2 071)          8 053        851 907     1 588 554

SEGMENTAL ANALYSIS                                                                                           
AND ACCOUNTING POLICIES AND BASIS OF PREPARATION

SEGMENTAL ANALYSIS

IFRS 8: Operating Segments requires a "management approach" whereby segment information is presented on the same basis as
that used for internal reporting purposes to the chief operating decision maker/s who have been identified as the Board of Directors.

During the current period the group acquired the Master Franchise of Burger King for Southern Africa. The view of management
is that this business will operate independently from the other businesses in the group and have therefore created a new Food
segment under which this business will be monitored.

Listed below is a detailed analysis:

                              Unaudited            Unaudited          Audited         Unaudited              Unaudited        Audited
                            31 December          31 December          30 June       31 December            31 December        30 June
                                   2012                 2011             2012              2012                   2011           2012
                                 R'000s               R'000s           R'000s            R'000s                 R'000s         R'000s
                                                 Revenue                                            Inter-segment revenue
Casinos                           1 218               18 391           18 821                                                     
Gaming                          233 666              197 832          403 583                                                     
Services                            108                   78               96            34 375                 31 240         63 095
Property                                                                                                                       
Food                                                                                                                           
Other                             5 945                                8 151                                                     
                                240 937              216 301          430 651            34 375                 31 240         63 095
                                            Interest income                                           Interest expense
Casinos                                                                                                                        
Gaming                              883                  672            1 500               (74)                   (98)          (195)
Services                            111                   90              281            (2 071)                (2 657)        (5 429)
Property                                                                                                                       
Food                                 10                                                    (1)                                   
Other                             2 066                2 322            5 016            (4 761)               (12 840)       (18 601)
                                  3 070                3 084            6 797            (6 907)               (15 595)       (24 225)
                                     Depreciation and amortisation                               Equity-accounted earnings
Casinos                                                                               54 830                 76 530        131 072
Gaming                           (7 962)             (7 534)         (15 661)                                                     
Services                         (9 531)            (10 650)         (22 785)                                                     
Property                                                                                                                       
Food                                                                                                                           
Other                                (6)               (158)            (164)                                                     
                                (17 499)            (18 342)         (38 610)            54 830                 76 530        131 072
                                                Taxation                                               Profit after tax
Casinos                                                                               54 928                191 085        231 639
Gaming                           (7 597)             (4 440)          (9 826)            15 883                 11 262         24 026
Services                          1 405              (2 078)          (3 015)             2 652                  6 109          7 741
Property                            (83)                                 55               (398)                                (141)
Food                                 (2)                                               (9 098)                                  
Other                              (519)              2 304            1 188             (1 184)               (26 994)       (11 853)
                                 (6 796)             (4 214)         (11 598)            62 783                181 462        251 412
                                              Total assets                                              Total liabilities
Casinos                       1 102 756           1 083 957        1 109 667             (1 848)                (1 428)        (1 769)
Gaming                          266 059             265 616          273 278            (40 992)               (39 171)       (38 982)
Services                         76 842              67 634           72 270            (65 787)               (66 473)       (70 570)
Property                         63 865                              28 574                169                                 (216)
Food                             13 554                                                   (42)                                   
Other                           319 495             684 047          384 537           (145 517)              (142 533)      (139 312)
                              1 842 571           2 101 254        1 868 326           (254 017)              (249 605)      (250 849)

Revenue under the "other" segment comprises the dividends received from preference share investments.

ACCOUNTING POLICIES AND BASIS OF PREPARATION

The accounting policies applied in the interim financial statements are in accordance with International Financial Reporting
Standards (IFRS), whilst the disclosures contained within comply with IAS 34: Interim Financial Reporting, the AC 500 Standards
as issued by the Accounting Practices Board or its successor and the Companies Act of South Africa, as amended. The interim
report has not been audited and therefore no review opinion has been obtained. The accounting policies and methods of
computation are consistent with those applied in the financial results for the year ended 30 June 2012, except for applying
IFRS 10: Consolidated Financial Statements, IFRS 11: Joint arrangements and IFRS 12: Disclosure of Interests in Other Entities, as
well as IAS 28(R): Investments in Associates and Joint Ventures. The application of these standards as well as the revised IAS 28
has not resulted in changes in the previous treatments of subsidiaries, joint ventures or associates.

NOTES TO THE FINANCIAL STATEMENTS
for the six months ended 31 December 2012

It is important to note that the prior period results include the effects of the transaction concluded with Sun International Limited
(Sun International) on 2 December 2011, which resulted in once-off gains of no less than R128.1 million. These once-off gains include
R60.2 million profit from the disposal of investments, R35.6 million realisation of fair value gains relating to disposed investments and net
cancellation fee income from the restructure of the SunWest (Pty) Ltd management fee of R32.3 million. In this context management
considers adjusted headline earnings per share as a more meaningful measure of performance as it adjusts for the effect of these
once-off gains.

1. Revenue

Revenue comprises gross gaming revenue (GGR) from GPI's limited payout machine (LPM) business, dividends received from National
Casino Resort Manco (Pty) Ltd (National Manco), Winelands Manco (Pty) Ltd (Winelands Manco) and preference share investments
held with Grindrod Bank Limited (Grindrod).

GGR is the term used for the net revenue generated by an LPM from the amount of cash played through the LPM less pay-outs to
players. GGR increased by 18.1% on the prior period.

                           Revenue        Revenue
                         Unaudited      Unaudited    Revenue
                       31 December    31 December    30 June
                              2012           2011       2012
                            R'000s         R'000s     R'000s

Gaming revenue             233 773        197 910    403 680
 Grandslots               139 830        122 901    249 634
 Kingdomslots              71 306         59 603    119 259
 Grand Gaming Slots        19 092         11 932     26 713
 Other                      3 545          3 474      8 074

Dividend income              7 164         18 391     26 971

Total revenue              240 937        216 301    430 651

The dividend income of R7.2 million for the current period consists of R5.9 million from the Grindrod preference shares, R0.4 million
from the National Manco and R0.9 million from the Winelands Manco. The prior period dividend income of R18.4 million included a
R13.4 million dividend from Real Africa Holdings Limited (RAH), which was disposed on 2 December 2011 as part of the restructure
deal with Sun International.

2. Cost of sales

Cost of sales is directly related to GGR, and comprises direct costs such as commissions to site owners, gambling levies and monitoring
fees. Cost of sales has increased by 19.3% as a result of an increase in GGR and contributions to the National Responsible Gaming
Programme and CSI contributions.

3. Profit from equity-accounted investments

Profit from equity-accounted investments is made up of profits from jointly-controlled entities, SunWest International (Pty) Ltd
(SunWest), and profits from associate, Akhona Gaming Portfolio Investments (Pty) Ltd (Akhona GPI).

The 28.4% decrease in the equity-accounted earnings from the prior period results from the cancellation fees paid by SunWest and
received by Western Cape Casino Resort Manco (Pty) Ltd (Western Cape Manco) as part of the restructure with Sun International
being included in the prior year earnings.

4. Profit on disposal of investments

There were no disposal of investments in the period under review. In the prior period a profit of R60.2 million was recognised
on the sale of a 4.9% interest in SunWest, a 21.2% interest in Worcester Casino (Pty) Ltd (Golden Valley) and the entire investment
of 30.6% in RAH, which were sold as part of the deal with Sun International concluded on 2 December 2011 and disclosed in the
2012 Integrated Annual Report.

5. Realisation of fair value reserve

There was no realisation of fair value reserves in the period under review. In the prior period the group released in terms of IAS 39:
Financial Instruments  Recognition and Measurement, R35.6 million of fair value adjustments previously recognised through the
statement of comprehensive income, as a result of disposing its interest in RAH in the statement of comprehensive income.

6. Reversal of impairment of investment in associate

There was no reversal of impairment of investment in associates in the period under review. In the prior period in terms of IAS 36:
Impairment of Assets, the group reversed R0.3 million of previously recognised impairments of the investment in Golden Valley when
a portion of the investment was sold to Sun International.

7. comparative reclassification

The finance income generated from investments has been reallocated from revenue to finance income during the period under
review. As a result of this reallocation, the comparative figures have been restated.

8. Finance costs

Finance costs have decreased significantly by 55.7% when compared to the prior period as a result of the lower level of debt. During
the current period R8.0 million was repaid on the term loan with Sanlam Capital Markets (SCM) whilst in the prior period the group
repaid its R40.0 million term loan with Grindrod and redeemed R125.7 million of preference shares held by SCM.

9. Taxation

The tax charge in the statement of comprehensive income has increased by 61.3% when compared to the prior period.
The increase is as a result of the increase in the profitability of the Slots group.

10. Headline earnings, HEPS and adjusted HEPS

Headline earnings per share (HEPS) for the six-month period ended December 2012 when compared to the prior period decreased by 31.2%, 
while adjusted HEPS increased by 12.3%. HEPS decreased mainly as a result of the prior period non-recurring income and adjustments 
arising from the Sun International deal. The increase in the adjusted HEPS figure is as a result of higher dividends from Winelands 
Manco and National Manco, as well as the improved profitability of the Slots group combined with the effect of the reduced weighted
average number of shares in issue.

                                                                                        Unaudited      Unaudited    Audited
                                                                                      31 December    31 December    30 June
                                                                                             2012           2011       2012
                                                                                           R'000s         R'000s     R'000s

Basic and diluted earnings per share (cents)                                                13.63          38.57      53.58
Headline earnings per share (cents)                                                         13.68          19.87      34.88
Adjusted headline earnings per share (cents)                                                15.86          14.12      29.23
Dividends per share paid (cents)                                                            20.00          10.00      70.00

Headline earnings reconciliation
Earnings attributable to ordinary shareholders                                             62 783        181 462     251 412
Reversal of impairment of investment                                                                       (336)       (336)
Profit on disposal of investment                                                                        (60 239)    (60 248)
Realisation of fair value reserve                                                                       (35 588)    (35 588)
Loss on sale of Property, plant and equipment                                                351            145         447
Tax effect on above                                                                           (98)         8 036       7 950
Headline earnings                                                                          63 036         93 480     163 637
Reversal of employee share trust                                                              (75)          (200)         75
Preference share early redemption fee                                                                     2 100       2 100
Change in intended recovery of investments                                                              (10 918)    (10 918)
Reversal of cancellation fee                                                                            (32 271)    (32 271)
Reversal of transaction costs                                                               9 905         13 907      13 907
Adjusted headline earnings                                                                 72 866         66 098     136 530

Reconciliation of shares
Shares in issue (before deducting treasury shares) (000s)                                 460 680        470 459     460 678
Shares in issue (after deducting treasury shares) (000s)                                  459 648        468 239     459 508
Weighted average number of shares in issue (000s)                                         460 680        470 459     469 195
Adjusted weighted average number of shares in issue (000s)                                459 541        468 239     467 166

* Final dividend declared in respect of the previous financial year and paid in October.

11. Non-current assets

The increase in the non-current assets is mainly due to the redevelopment of the landmark building in Heerengracht Street,
Cape Town, which will be used as the group's headquarters. In addition, GPI Management Services (Pty) Ltd continued to invest in
new generation LPMs which it leases to the Slots group.

12. Current assets

Current assets have decreased mainly as a result of a decrease in cash and cash equivalents. Since December 2011 the group paid
special dividends in January 2012 of R282.3 million and in October 2012 of R34.6 million. Current assets for the current period consist of
cash and cash equivalents of R351.0 million, trade and other receivables of R27.8 million, loans of R15.6 million, income tax receivables
of R3.3 million and inventories of R1.9 million.

13. Non-current liabilities

The cumulative redeemable preference shares have decreased when compared to the prior period due to R30.7 million being
reclassified to current liabilities, which is the amount to be redeemed in March 2013. The terms of the preference shares are under
negotiation with the funders, Standard Bank of South Africa Limited (SBSA) and Nedbank Limited (Nedbank). R16.0 million has been
repaid on the SCM term loan since the prior period.

14. Current liabilities

Current liabilities comprise trade and other payables of R51.2 million, the current portion of the cumulative redeemable preference
shares of R30.7 million, the current portion of the term loan with SCM of R16.0 million, dividends payable of R12.2 million, income tax
payable of R1.2 million and the current portion of finance leases of R1.1 million.

15. Cash generated from operations

The reconciliation of net profit for the period to cash generated by operations is as follows:

                                                                                Unaudited           Unaudited     Audited
                                                                              31 December         31 December     30 June
                                                                                     2012                2011        2012
                                                                                   R'000s              R'000s      R'000s

Net profit after tax                                                               62 783             181 462     251 412
Tax for the period as per the statement of comprehensive income                     6 796               4 214      11 598
Depreciation and amortisation                                                     17 499              18 342      38 610
Finance income                                                                     (3 070)             (3 084)     (6 797)
Finance costs                                                                       6 907              15 595      24 225
Shares issued to employees                                                            276                              
Loss on sale of Property, plant and equipment                                        351                 145         447
Dividends received                                                                 (7 164)            (18 391)    (26 971)
Equity-accounted earnings                                                         (54 830)            (76 530)   (131 072)
Profit on sale of investment                                                                         (60 239)    (60 248)
Realisation of expenses previously recognised against share
premium                                                                                                           1 189
Impairment of loans                                                                                                 217
Reversal of impairment of investment                                                                    (336)       (336)
Realisation of fair value reserve                                                                    (35 588)    (35 588)

Net cash generated from operations before working capital
movements                                                                          29 548              25 590      66 686
Decrease in inventories                                                               136                 201         296
Decrease/(increase) in accounts receivable                                          5 237              17 860     (11 843)
Increase/(decrease) in accounts payable                                            13 763             (29 758)     (6 795)

Net cash generated from operations                                                 48 684              13 893      48 344

16. Decrease in loans

Loans receivable recovered                                                          2 805                              
Loans receivable advanced                                                                                        (1 250)
Employee loans receivable recovered                                                 1 692                          1 110
Employee loans receivable advances                                                                                   (7)
Redemption of preference shares                                                                     (125 726)   (125 726)
Finance leases advanced                                                                                             424
Finance leases repaid                                                                (550)                (91)     (1 045)
Term loans repaid                                                                 (12 000)            (48 000)    (52 000)

Decrease in loans                                                                  (8 053)           (173 817)   (178 494)

COMMENTARY

OPERATIONAL HIGHLIGHTS

The first half of this year saw GPI announcing two very exciting new investments.

The frenzy that greeted us with our announcement of concluding a deal to acquire the Master Franchise of Burger King for Southern
Africa was nothing short of incredible and it confirmed that the South African public are ready for a world-class competitive option
in the quick service restaurant (QSR) market. We are well on track to meeting our development plans and will have opened our first
restaurant before our June year-end.

Our venture into machine manufacturing, facilitated by our partnership with another world-class leader in their field, Merkur Gaming,
has the role of both reducing our costs in our LPM business, as well as allowing us to diversify our asset base.

On the LPM front, we have concluded the acquisition of a route operator licence in Mpumalanga and continue to increase our
number of licensed LPMs nationally. We believe the industry is ready for consolidation and we should be at the forefront thereof.

Review of operations

Casino group

The casino group consists of the group's equity investments in SunWest, Golden Valley and Akhona GPI. Whilst the South African
economy takes time to emerge from the tough trading environment of the last few years, our casino investments have performed
well, showing growth in revenues, earnings before interest, taxes, depreciation and amortisation (EBITDA) and net profit after tax.

SunWest

SunWest consists of GrandWest Casino and the Table Bay Hotel.

GrandWest's revenue increased by 5.3% when compared to the prior period and its EBITDA increased by 5.5% to R387.0 million. In
addition to the growth in the absolute EBITDA value, the EBITDA percentage also increased by 0.1% to 41.7%. These increases have
translated into a 30.5% increase in their profit after tax to R237.6 million. As our anchor investment we are very pleased with the
results for the period and acknowledge the effort that GrandWest's management team has put in to achieve these results.

Unfortunately the Table Bay Hotel incurred a R26.9 million loss after tax for the period. The loss for the period is 20.0% lower than
the loss reflected in the prior period, this negative sentiment is off-set by the fact that the current period EBITDA of R6.2 million is 577%
higher than the prior period and that revenue of R77.4 million which has increased by 12.9% when compared to the prior period.

The board of SunWest is investigating several measures to significantly influence this performance, as the financial performance
thereof is the only blight on an otherwise tremendous asset.

The dividend declared by SunWest of R235.0 million has increased by 10.6% when compared to the prior period.

Golden Valley

The Golden Valley Casino was negatively affected by the farm workers' strikes in its region and as a result was only able to increase
its revenue by 3.1% to R66.0 million. Its EBITDA decreased by 3.6% to R14.5 million and its EBITDA percentage decreased by 0.7%
to 22.7%. As a result the casino narrowly missed breakeven for this period and posted a loss after tax of R0.2 million, which is 92.0%
lower than the prior period.

Akhona GPI

Through our investment in Akhona GPI we hold an indirect holding of 3.29% in Sibaya Casino.

We concluded a deal with our partners in Akhona GPI during the period, where we will acquire the remaining stake in Akhona GPI and
gain full control of the investment. The deal will give us a greater exposure to Sibaya Casino, which is the second-best performing casino
in the Sun International portfolio. The deal is yet to be finalised as we are waiting for one final condition precedent to be concluded.

Gaming group

GPI owns and operates three limited payout slot machine (LPM) route licences: Grandslots in the Western Cape, Kingdomslots in
Kwazulu-Natal and Grand Gaming Slots in Gauteng.

The group's LPM GGR increased by 18.5% from R194.4 million to R230.3 million for the six-month period ended December 2012, whilst
the number of active LPMs in South Africa increased by only 9.1% from 7 018 to 7 659.

The key highlights for the period were the opening of Gauteng's first Type B, 40-slot LPM site at the Royal Park Hotel in Joubert Park
in mid-July, the approval in KwaZulu-Natal of the reallocation of 150 of Kingdomslots' LPMs from less profitable regions in the province
to the Durban metropolitan and South Coast areas in August and the announcement at the end of November of our joint-venture
agreement with German-based Merkur Gaming GmbH to establish Grand Merkur (Pty) Ltd to locally manufacture and distribute
gaming equipment.

Grandslots (Western Cape)

The Western Cape remains the best-performing province in the country in terms of LPM GGR; similarly Grandslots remains our
best-performing LPM operation generating GGR of R139.8 million, 13.8% up on the prior period. With only one competitor, Grandslots
enjoyed a 56.1% GGR market share and a 54.2% (873) LPM market share in December 2012. Our average GGR/Machine/Day
increased from R747 to R875 compared to the prior period.

Kingdomslots (KwaZulu-Natal)

Kingdomslots remained the market leader in KZN, generating GGR of R71.3 million, 19.6% up on the prior period. With three
competitors, Kingdomslots enjoyed a 39.7% GGR market share and a 38.35% (808) LPM market share in December 2012. Despite
the significant increase in our number of active machines from 704 in December 2011 to 808 in December 2012, our average GGR/
Machine/Day increased from R463 to R510 compared to the prior period, further emphasising the value in our aforementioned
successful application for the reallocation of 150 LPMs to the Durban metropole and KwaZulu-Natal South Coast.

Grand Gaming Slots (Gauteng)

Grand Gaming Slots, which is still in its relative infancy, generated GGR of R19.1 million, 60.0% up on the prior period. With four
competitors in Gauteng, Grand Gaming Slots enjoyed a GGR market share of 15.7% at 31 December 2012 and a 17.3% (233) LPM
market share. Despite the fact that this is still below fair market share of 20% the operation's GGR market share has shown steady
growth from the 14.6% GGR and LPM (174) market share it had on the same date in the prior period. Our average GGR/Machine/
Day increased from R400 to R449 over the same period.

Grand Gaming Slots, and the Gauteng Province as a whole, continues to have its LPM roll-out hampered by the fact that since
May 2012 the Gauteng Gambling Board has not been in a position to approve any LPM site licences. That said, we continue to submit
site licence applications and are confident that once the Gauteng Gambling Board is reconstituted we will benefit significantly from
our increased number of active sites and LPMs.

Property group

The Property group commenced with the redevelopment of the new GPI headquarters during the period. R35.7 million was spent on
the redevelopment project during the period and the project is expected to be completed in March 2013. The decision to acquire our
own Property to reduce our occupancy costs and secure our tenure is justified through our continued growth and initial indications
of increases in the Property value. Once the redevelopment is completed we are confident that our headquarters will be a landmark
building and the pride of Heerengracht Street in Cape Town.

Food group

The majority of the activity in the food group over the period related to the acquisition of the Burger King Master Franchise which
resulted in R9.9 million in costs being incurred. These costs consist of deal success fees, legal fees, consulting fees and travel expenses.

RELATED PARTY TRANSACTIONS

The group, in the ordinary course of business, entered into various transactions with related parties. All transactions were concluded
at arm's length. Any intra-group related party transactions and outstanding balances are eliminated in the preparation of the
consolidated financial statements of the group as presented.

DIVIDENDS

An ordinary dividend of 12.5 cents per share and a special dividend of 7.5 cents per share were declared and paid in October 2012.
We will continue to be a dividend-active company.

SUBSEQUENT EVENTS

On 5 February 2013 we signed an offer to purchase 100% of the net assets and operations of Zimele Slots Mpumalanga (Pty) Ltd
(Zimele). Zimele is one of two licensed LPM operators in the province, which currently makes allowance for 2 000 active LPMs. The
purchase is subject to the fulfilment of certain conditions precedent, which include the approval of the purchase by the Mpumalanga
Gambling Board.

PROSPECTS

The future for GPI is extremely bright with our exciting investments in Burger King and Grand Merkur. Both these businesses will
become operational during the second half of our financial year.

Burger King South Africa is scheduled to open its flagship store in our newly completed building in Heerengracht Street before the
end of our financial year, and will plan to have several more sites operational during the first half of the next financial year.
We also expect the first LPM to roll off the Grand Merkur production line before the end of the financial year.

Looking forward, our short-term goals for our LPM business remains to maintain our market leadership in both the Western Cape
and KwaZulu-Natal and to pursue the same objective in Gauteng once its Gambling Board constraints have been resolved and we
are able to roll out more LPMs. The group further continues to focus on its stated objective of attaining LPM route operator licences
for 7 500 machines in the medium term and aggressively looking at entering the technology betting market. The opportunities
in the sports-betting and on-line gaming sector (once it is legalised) are significant as is the case in the LPM sector where, at
31 December 2012, only 7 659 active LPMs were operational in South Africa out of a legislated total of 50 000. These objectives
and opportunities all point towards, what we believe to be, a significant coup in the establishment of Grand Merkur, and we are
confident that through Grand Merkur the group will be able to establish itself as a significant role-player in both the operations and
manufacturing sectors of the gaming industry.

The foundation of our investment base has been our casino investments and whilst gaming assets are not freely available, we
continue to look at opportunities to increase our exposure to cash-generative casino investments.

We will continue monitoring the progress of GrandWest's exclusivity in the Cape metropole and adapt our strategy accordingly.
Many of our opportunities and assets display remarkable synergies. Whilst we will not discard any opportunity that satisfies our
investment criteria, we will concentrate on those from which we can extract the best values that these synergies have to offer.
Please note that we will be moving to our new building at 33 Heerengracht Street, Foreshore, Cape Town during the last week in
February 2013. Our postal address and telephone numbers will remain the same.

For and on behalf of the board

H Adams							        A Keet	
Executive Chairman						Chief Executive Officer

Cape Town							Cape Town
27 February 2013						27 February 2013

Prepared by: D Pienaar CA(SA)

Directors
H Adams (Executive Chairman), A Abercrombie, AW Bedford#, A Keet (Chief Executive Officer), S Petersen (Financial Director),
D Pienaar+, Dr N Maharaj#*, N Mlambo#, C Priem#*, F Samaai#

(# non-executive  * independent  + alternate)

Registered office                                               Sponsor
10th Floor, 33 on Heerengracht                                  PSG Capital (Pty) Ltd
Heerengracht Street, Foreshore, Cape Town, 8001
(PO Box 6563, Roggebaai, 8012)                                  
                                                                Company Secretary
Transfer secretaries                                            Lazelle Parton
Computershare Investor Services (Pty) Ltd                       
70 Marshall Street, Johannesburg, 2001                          
(PO Box 61051, Marshalltown, 2107)                              Registration number
                                                                1997/003548/06
Attorneys                                                       Share code
Bernadt Vukic Potash & Getz Attorneys                           GPL
                                                                ISIN
Corporate advisers                                              ZAE000119814
Leaf Capital (Pty) Ltd                                          

www.grandparade.co.za
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