SABLE HOLDINGS LIMITED - Unaudited Interim Consolidated Condensed Group Results for the period ended 31 December 2012

Release Date: 26/03/2013 17:35
Code(s): SBL
 
Wrap Text
Unaudited Interim Consolidated Condensed Group Results for the period ended 31 December 2012

Sable Holdings Limited
("Sable" or "the company" or "the group") 
(Incorporated in the 
Republic of South Africa) 
(Registration No. 1968/010636/06)
Share code: SBL
ISIN code: ZAE000006383

Unaudited interim consolidated condensed group results for 
the period ended 31 December 2012

Earnings per share                             down       296,0% 
Headline earnings per share                    down       186,5%

Consolidated condensed statement of financial position
                                      Unaudited          Audited
                                         As at        Year ended
                                      31 December        30 June
(R?000)                             2012        2011        2012
Assets
Non-current assets               568 437     541 158     538 775
Investment property              295 381     287 982     267 049
Investments                       22 944      36 016      35 060
Investments in joint
ventures                         246 199     212 219     232 743
Deferred taxation                    381         106         381
Other non-current assets           3 532       4 835       3 542
Current assets                     6 925      15 199      34 097
Cash and cash equivalents          3 225       2 434       4 542
Other current assets               3 700      12 765      29 555
Non-current asset held for
sale                               3 200           -       3 200
Total assets                     578 562     556 357     576 072
Equity and liabilities
Reserves                         420 850     401 895     424 004
Non-current liabilities          129 745     129 258     118 015
Interest-bearing borrowings      108 999     100 916      97 269
Deferred taxation                 20 746      28 342      20 746
Current liabilities               27 967      25 204      34 053
Interest-bearing borrowings       10 206       6 630      11 769
Bank overdraft                       464       1 184       2 202
Other current liabilities         17 297      17 390      20 082
Total equity and
liabilities                      578 562     556 357     576 072
Weighted average number of 
ordinary shares in issue net 
of treasury shares (?000)          9 175       9 175       9 175
Net asset value per
ordinary share (cents)             4 587       4 380       4 621

Consolidated condensed statement of comprehensive income
                                      Unaudited          Audited
                                    Six months ended  Year ended
                                      31 December        30 June
(R?000)                            2012        2011         2012
Revenue                          28 333      16 282       31 361
Turnover                         28 105      16 036       30 957
Profit from operations            7 014       6 327       12 821
Profit/(loss) on disposal
of investments and                  721        (159)       (822)
investment property
Profit/(loss) on disposal
of investments                      426        (159)        172
Profit/(loss) on disposal
of investment property              295           -        (994)
Fair value (impairment)/gains on 
investments and investment
property                           (310)        297      (3 151)
Fair value
(impairment)/gains on
investment                         (438)        297          85
Net gains/(impairment) on 
revaluation of investment
property                            128           -      (3 236)
Profit before net finance
costs and taxation                7 425       6 465       8 848
Income from investments               -          28          46
Finance income                      228         246         404
Finance costs                    (4 589)     (4 686)     (9 786) 
Share 
of (loss)/profit from
joint ventures                   (5 667)       (361)     16 752
(Loss)/profit before
taxation                         (2 603)       1 692     16 264
Taxation                           (551)        (94)      7 386
Net (loss)/profit for the
period                           (3 154)       1 598     23 650
Other comprehensive income            -            -          -
Total comprehensive
(loss)/income for the            (3 154)       1 598     23 650
period
Total comprehensive (loss)/income 
attributable to:
Equity shareholders of
Sable Holdings Limited           (3 143)       1 604     23 647
Non-controlling interest            (11)         (6)          3 
(Loss)/earnings and diluted
(loss)/earnings per
ordinary share (cents)            (34,3)        17,5      257,7

Consolidated condensed statement of cash flows
                                      Unaudited          Audited
                                    Six months ended   Year ended
                                      31 December         30 June
(R?000)                             2012        2011        2012
Cash inflow from operating
activities                        28 677       2 039       8 561
Cash outflow from investing
activities                       (36 244)     (9 382)    (15 608)
Cash inflow from financing
activities                         7 988       7 397       8 191
Net increase in cash and
cash equivalents                     421          54       1 144
Cash and cash equivalents at the 
beginning of the period            2 340       1 196       1 196
Cash and cash equivalents
at the end of the period           2 761       1 250       2 340
Cash and cash equivalents at the 
end of the period consist of:
Cash and cash equivalents          3 225       2 434       4 542
Bank overdraft                      (464)     (1 184)     (2 202)
                                   2 761       1 250       2 340

Reconciliation of net (loss)/profit for the period to headline 
(loss)/earnings
                                      Unaudited          Audited
                                    Six months ended  Year ended
                                      31 December        30 June
(R?000)                             2012         2011       2012
Net (loss)/profit attributable to 
equity shareholders of the holding
company                           (3 143)       1 604     23 647
Adjustments through subsidiaries:
(Profit)/loss on disposal
of investment property              (295)           -        994
Net fair value
(gains)/impairment on
investment property                 (128)           -      3 236
Tax effects of adjustments            79            -       (743) 
Adjustments through joint
ventures:
(Profit)/loss on disposal
of investment property              (308)        (126)     1 747
Fair value impairment/(gains) on
investment property                3 008            -    (15 293)
Tax effects of adjustments          (505)          17      2 473
Headline (loss)/earnings
for the period                    (1 292)       1 495     16 061
Headline (loss)/earnings
per ordinary share (cents)         (14,1)        16,3      175,0

Consolidated condensed segmental analysis
                                       Unaudited         Audited
                                    Six months ended  Year ended
                                      31 December        30 June
(R?000)                              2012        2011       2012
Segmental revenue                  28 333      16 282     31 361
Investment property                27 126      15 265     29 285
Commercial                          4 010       3 045      6 196
Industrial                         16 464       5 499     11 601
Retail                              5 690       5 743     10 307
Residential                           962         978      1 181
Corporate and inter-segment
charges                             1 207       1 017      2 076
(Loss)/profit before
taxation                           (2 603)      1 692     16 264
Investment property                 8 734       6 988      8 146
Commercial                          2 547       1 440      4 023
Industrial                          2 855       2 349        535
Retail                              2 817       2 736      3 030
Residential                           515         463        558
Corporate and inter-segment
charges                           (11 337)     (5 296)     8 118
Investment property               295 381     287 982    267 049
Commercial                        102 399      75 400     74 276
Industrial                         96 644      99 878     96 422
Retail                             83 138      99 504     83 151
Residential                        13 200      13 200     13 200

Consolidated condensed statement of changes in equity
                                                  Non-   
                      Share      Non-             control-      
                    capital distribu-              ling
                        and    table  Retained     inte-   Total 
(R?000)             premium reserves  earnings     rests  equity
Balance at 30
June 2011            51 425  125 120   223 695     57  400 297
Total comprehensive 
income for the
year                      -        -    23 647      3   23 650
Profit transfer           -        -        57      -       57
Share of profit from 
joint ventures            -   16 752   (16 752)     -        -
Balance at 30
June 2012            51 425  141 872   230 647     60  424 004
Total comprehensive 
loss for the
period                   -        -    (3 143)    (11)  (3 154)
Share of loss
from joint               -   (5 667)    5 667       -        -
ventures
Balance at 31
December 2012       51 425  136 205   233 171      49  420 850

Basis of preparation and accounting policies

The unaudited interim consolidated condensed group results have been 
prepared in accordance with the Framework concepts and the 
measurement and recognition requirements of the International 
Financial Reporting Standards ?IFRS? and containing information 
required by IAS 34 ?Interim Financial Reporting? and AC 500 standards 
as issued by the Accounting Practices Board, the JSE Limited Listings 
Requirements and in the manner required by the Companies Act, 71 of 
2008, as amended and has been consistently applied to the prior period. The accounting policies and methods of computation are 
consistent with those used in the annual financial statements for the 
financial year ended 30 June 2012. The consolidated condensed 
statement of financial position as at 31 December 2012 and the related 
consolidated condensed statement of comprehensive income, consolidated 
condensed statement of changes in equity and statement of cash flow 
for the period ended have not been reviewed by the group?s auditors.
The unaudited interim consolidated condensed group results for the 
period ended 31 December 2012 were prepared by KA Haswell, the 
group financial director, and have been approved by the board on 
19 March 2013 and will be published on 26 March 2013.

Directors commentary on results

Unaudited comparative analysis between 31 December 2012 (unaudited) 
and 31 December 2011 (unaudited)
The group reported a net loss of R3,2 million (2011: profit R1,6 million) for
the period ended 31 December 2012. Earnings per share decreased by 296.0% from 
earnings of 17,5 cents to a loss of 34,3 cents, with no dilution in either period, 
whilst headline earnings per share decreased by 186,5% from 16,3 cents to a loss of 
14,1 cents per share. Profit from operations for the period ended was R7,0 million 
(2011: R6,3 million), whilst profit/loss on disposals and fair value adjustments on
investments and investment property resulted in a net gain of R0,4 million (2011: R0,1 million). 
Share of loss from joint ventures reported for the period was R5,7 million (2011: R0,4 million).

Consolidated condensed statement of comprehensive income 
Revenue for the period increased from R16,3 million to R28,3 million, 
which included an amount in respect of an industrial unit which was 
sold during the period for R10,8 million. Profit/(loss) on disposal of 
investments and investment property increased from a loss of R0,2 million to a profit of R0,7 million.
Investments in JSE listed shares were disposed of for a R0,4 million profit. Fairlands Shopping Centre,
an investment property, was realised for a profit of R0,3 million above fair value
previously reported. Fair value (impairment)/gains on investments and investment property decreased from
a net gain of R0,3 million to a net impairment of R0,3 million. Finance costs, net of investment and finance
income, remained unchanged at R4,4 million for the period.
Share of (loss)/profit from joint ventures increased from a loss of R0,4 million to R5,7 million. Loss from operations increased from 
R0,5 million to R3,5 million and fair value gains and profit from disposal of investment property decreased from a profit of R0,1 million 
to loss of R2,2 million net of tax. Hazeldean Shopping Centre, located in Hazeldean, Pretoria, was the only joint venture asset revalued
during the period and was impaired by R2,4 million net of tax. Taxation for the period increased from R0,1 million to R0,6 million.

Consolidated condensed statement of financial position as at 
31 December 2012
Unaudited comparative analysis between 31 December 2012 (unaudited) 
and 30 June 2012 (audited)
Investment property
Analysis of investment property
                          31 December 2012          30 June 2012
                                  Number of              Number of
                          R 000  properties      R 000  properties
Carrying value at the 
beginning of
the period              270 249         15    273 145          15
Additions                28 204          -     17 067           1
Disposals and
transfers                     -          -    (16 727)         (1) 
Revaluations                128          -     (3 236)          -
Carrying value at the 
end of the period       298 581         15     270 249          15
*These balances are inclusive of a non-current asset held for sale 
of R3,2 million.

Investment property has increased from R270,3 million to R298,6 
million. Development costs of R28,2 million were invested in 
Hertford Office Park, located in Midrand, Johannesburg.
Investments decreased from R35,0 million to R22,9 million. Sable's
10% shareholding valued at R12,1 million in a development located in 
Gosforth Park, Johannesburg, was realised in the form of shares for 
developable land, and has consequently been transferred to 

Investment in joint ventures.

Investments in joint ventures increased by R13,5 million as a
result of a loss of R5,7 million and net loan funding outflows of 
R19,2 million, comprising of the above mentioned transfer from 
Investments of R12,1 million and additional net loan funding of 
R7,1 million. Other current assets, which comprise of receivables and inventory,
decreased from R29,6 million to R3,7 million. The decrease is attributable to the 
receipt of proceeds from Fairlands Shopping Centre of R16,5 million and the realisation
of industrial warehouse inventory of R10,8 million. Interest-bearing borrowings have increased 
from R109,0 million to R119,2 million. This increase was primarily used to fund the development 
at Hertford Office Park. Other current liabilities have decreased from R20,1 million to R17,2 million.
The decrease was due to the prepayment of the above mentioned inventory which was realised during the period. 

Significant current developments and prospects
Joint ventures
The unbundling disposal of 63 000mý zoned industrial land situated at 
Gosforth Park, Germiston, to a development company in which Sable is 
a 50% co-owner, has become unconditional and final transfer of the 
land is in progress. The industrial park comprises large industrial 
warehousing developments within a 273 000mý industrial estate. Sable 
anticipates that with active marketing underway, development activity 
should begin towards the end of 2013. A further reorganisation of 
Sable's assets has currently been concluded, subject to competition 
commission approval, at a commercial site next to Montecasino, Fourways. 
The reorganisation increases Sable's interest from 13,4% to 36,6% in two income 
producing property investments as well as retaining a 12,1% interest, together with several prominent land 
developers, in 40 865 mý of prime commercial land. The reorganisation is expected to be finalised by June 2013.Sable, 
together with a partner, has commenced with a demolition and part redevelopment of 2 existing industrial properties 
in Kyalami, Midrand. The new retail shopping centre will comprise 8400mý of national retail anchors, restaurants and line shops. 
Trading within the centre is expected to commence in December 2013. Sable's 50% interest in Hertford Office Park, Midrand, 
Johannesburg, has seen 3 A-grade office buildings comprising 6 138 mý completed and occupied by national tenants. The remainder 
of the park comprising 25 000mý continues to be developed incrementally. Sales of retirement houses and apartments at the Retreat
in Hazeldean, Pretoria East, continue steadily with a frail care centre currently being designed.

Litigation

As previously reported, Sable received notification of an application 
made to the High Court against a group company seeking to claim 
compensation for alleged dealings conducted prior to 2001. The matter is being defended and the directors and group's 
legal advisors consider the likelihood of action against the group company being successful, as remote. Except for the above, the directors 
are not aware of any legal or arbitration proceedings active, pending or threatened against or being brought by the company, which may have a 
material effect on the group?s financial position.

Dividends

The board of directors have resolved not to declare a dividend for 
the period ended 31 December 2012. All cash reserves have been 
earmarked for funding development and investment property 
opportunities within the group.

Cautionary announcement - relating to a potential delisting of the company's
shares from the JSE Limited

As previously reported, shareholders are advised that the company's 
board of directors are considering a possible delisting of the 
company's shares from the JSE Limited. Any delisting proposal would 
be accompanied by a cash offer (at a price verified by an independent 
expert as being fair subject to directors approval) to be made to all 
shareholders who wish to monetise their investment in the company. 
Discussions in this regard are ongoing and accordingly shareholders 
are advised to continue to exercise caution when dealing in their 
shares in the company.

Related party transactions

Management fees were charged to joint ventures during the period. 
Events after reporting period end Sable's board of directors are not 
aware of any reportable material events that have occurred between the
end of the financial period and the date of this report.

Going concern

The financial statements have been prepared on the going concern 
basis as the directors have every reason to believe that the company has adequate
resources in place to continue in operation for the foreseeable future.

For and behalf of the board
PH Nash (Chairman)
GBJ Bowes (Managing director)

26 March 2013

Directors: PH Nash (Chairman)*, GBJ Bowes (Managing), KA Haswell
(Financial), IA Chambers*, CC Froneman*, JN Snell*
(*non-executive)
(*independent)

Registered office: Sable Place, Fairway Office Park, 52 Grosvenor
Road, Bryanston, 2021. PO Box 786390, Sandton, 2146.

Transfer secretaries: Computershare Investor Services Proprietary 
Limited, 70 Marshall Street, Johannesburg, 2001. PO Box 61051, 
Marshalltown, 2107.

Designated Advisor:
Java Capital













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