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Consolidated Unaudited Interim Results for the six months ended 31 August 2013
Adrenna Property Group 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 2013
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
Six months Six months Twelve months
ended ended ended
31 August 31 August 28 February
2013 2012 2013
R'000 R'000 R'000
(unaudited) (unaudited) (audited)
Revenue 14 060 14 278 29 780
Cost of sales (1 461) - (1 452)
Gross profit 12 599 14 278 28 328
Operating income before interest and
revaluations 5 427 6 319 12 590
Fair value adjustment on investment properties - - 10 848
Investment income 437 51 1 069
Finance costs (3 568) (4 265) (8 052)
Net income before taxation 2 296 2 105 16 455
Taxation (696) (636) (5 925)
Income after taxation for the period 1 600 1 469 10 530
Non-controlling interest - - -
Income attributable to ordinary shareholders 1 600 1 469 10 530
Total net profit 1 600 1 469 10 530
Other comprehensive income - - -
Total comprehensive income attributable to:
- Ordinary shareholders 1 600 1 469 10 530
- Non-controlling interests - - -
1 600 1 469 10 530
CONDENSED STATEMENT OF FINANCIAL POSITION
31 August 31 August 28 February
2013 2012 2013
R'000 R'000 R'000
(unaudited) (unaudited) (audited)
ASSETS
Non-current assets
Property, plant and equipment 68 - 74
Investment properties 197 161 190 053 197 161
Investments and loans 7 350 - 8 053
Operating lease assets 4 665 3 020 4 665
Deferred taxation 3 856 5 573 3 646
Goodwill on acquisition 19 - 19
213 119 198 646 213 618
Current assets
Investments and loans 2 403 11 719 2 275
Inventory 7 203 8 736 8 664
Accounts receivable 1 239 3 027 1 312
Operating lease assets 1 491 705 1 491
Cash and cash equivalents 13 242 510
12 349 24 429 14 252
Total assets 225 468 223 075 227 870
EQUITY AND LIABILITIES
Equity
Stated capital and reserves 99 724 89 048 98 124
Non-current liabilities
Borrowings 78 570 78 629 82 188
Deferred tax 25 620 22 432 25 620
104 190 101 061 107 808
Current liabilities
Current portion of borrowings 6 901 18 277 6 724
Investments and loans 406 - 411
Accounts payable 2 904 2 674 3 198
Taxation payable 738 702 595
Bank overdraft 10 605 11 313 11 010
21 554 32 966 21 938
Total equity and liabilities 225 468 223 075 227 870
CONDENSED ABRIDGED STATEMENT OF CASH FLOWS
Six months Six months Twelve months
ended ended ended
31 August 31 August 28 February
2013 2012 2013
R'000 R'000 R'000
(unaudited) (unaudited) (audited)
Cash generated by operations 2 778 2 433 4 911
Cash flows from investing activities 575 (18) 6 315
Cash flows from financing activities (3 445) (2 067) (10 307)
Movement in cash and cash equivalents (92) 348 919
Cash and cash equivalents at the beginning
of the period (10 500) (11 419) (11 419)
Cash and cash equivalents at the end
of the period (10 592) (11 071) (10 500)
CONDENSED STATEMENT OF CHANGES IN EQUITY
31 August 31 August 28 February
2013 2012 2013
R'000 R'000 R'000
(unaudited) (unaudited) (audited)
STATED CAPITAL
Ordinary stated capital 567 567 567
RESERVES
Retained earnings
Balance at the beginning of the period 97 557 87 012 87 012
Acquisition in terms of IFRS 3:
Business Combinations during the period - - 15
Comprehensive income attributable to ordinary
shareholders 1 600 1 469 10 530
Balance at the end of the period 99 157 88 481 97 557
Total reserves attributable to:
Ordinary shareholders 99 157 88 481 97 557
Non-controlling interests - - -
Total reserves 99 157 88 481 97 557
Total equity and reserves 99 724 89 048 98 124
SUPPLEMENTARY INFORMATION
31 August 31 August 28 February
2013 2012 2013
(unaudited) (unaudited) (audited)
Number of ordinary shares in issue at the
beginning of the period ('000) 55 915 55 915 55 915
Number of ordinary shares in issue at the end
of the period ('000) 55 915 55 915 55 915
Weighted average number of shares in issue
during the period ('000) 55 915 55 915 55 915
Basic earnings:
Net profit per condensed statement of
comprehensive income 1 600 1 469 10 530
Basic earnings per share (cents) 2,9 2,6 18,8
Headline earnings:
Net profit per condensed statement of
comprehensive income 1 600 1 469 10 530
Profit on sale of investment property - - (610)
Impairments - - 23
Revaluation of investment property
(net of taxation) - - (6 609)
Headline earnings 1 600 1 469 3 334
Headline earnings per share (cents) 2,9 2,6 5,9
Dividends per share (cents) - - -
Net asset value per share (cents) 177,3 158,2 174,5
Tangible net asset value per share (cents) 177,3 158,2 174,5
There was no dilution in basic or headline earnings per share during the period.
CONDENSED SEGMENT RESULTS
Six months Six months Twelve months
ended ended ended
31 August 31 August 28 February
2013 2012 2013
R'000 R'000 R'000
(unaudited) (unaudited) (audited)
Revenue
Investment Property Holding 12 832 14 278 29 780
Property-related services - - -
Property held for resale 1 228 - -
Head office administration - - -
14 060 14 278 29 780
Income before taxation
Investment Property Holding 4 877 2 740 18 096
Property-related services (62) - (229)
Property held for resale (233) - -
Head office administration (2 286) (635) (5 262)
2 296 2 105 12 590
Total assets
Investment Property Holding 215 141 210 214 217 434
Property-related services 1 - 2
Property held for resale - - -
Head office administration 10 326 12 861 10 434
225 468 223 075 227 870
Total liabilities
Investment Property Holding 113 671 122 482 117 436
Property-related services 738 - 1 032
Property held for resale - - -
Head office administration 11 335 11 545 11 278
125 744 134 027 129 746
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, No. 71 of 2008 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 SAICA Financial Reporting Guides
(formerly the AC 500 Standards) as issued by the Accounting Practices Committee and its successor and
are consistent with those applied in the most recent annual financial statements. These results were
prepared by the Financial Director, Mr H Beukes.
GENERAL REVIEW AND FINANCIAL RESULTS
Revenue yielded in the six months ended 31 August 2013 has shown a marginal decrease in comparison
with the six months ended 31 August 2012, as a result of the disposal of 3 consolidated units of rental-
generating retail investment property in the group's Red Sails development in Hout Bay. The allocation
of the proceeds of this disposal to the outstanding bond obligation and the resultant significant
reduction in the associated finance costs has, however, more than counteracted the abovementioned
negative effect and has allowed for the group's net income before tax for the six months ended
31 August 2013 of R1,6 million to surpass the figure of R1,469 million for the corresponding prior
period by 8,9%.
In addition to the factors mentioned above, a subsidiary company also disposed of an excess residential
unit held as part of a small number of similar units classified as inventory. The unit was disposed of at
a marginal loss, with the majority of proceeds being allocated to the reduction of the existing bond
facility in the subsidiary. Inventory decreased by R1 461 000 from the February 2013 figure, with the
associated bond liability being reduced by R1 156 000.
The improvement in total comprehensive income for the six months ended 31 August 2013 as
compared to the six months ended 31 August 2012 bears testament to the effectiveness of the cost-
cutting exercises implemented in prior periods, the directors continuing effort to reduce existing
borrowings and the buoying effects of well-performing property investments.
The group continues to actively reduce its existing bank overdraft with First National Bank, having
reduced the overdraft by R405 000 in the six months since the end of the preceding financial year.
The reduction in both the outstanding bond liabilities and the bank overdraft, coupled with the
improvement in comprehensive income generated, has produced an improvement in the net asset
value per share approximating 3 cents per share since the financial year-end.
It is also pleasing to note that headline earnings per share for the six months ended 31 August 2013
exceed the same figure for the corresponding six months ended 31 August 2012 by 12%.
As previously stated the directors will continue to focus on the generation of additional net asset value
through the expansion of the property portfolio couple with efforts to reduce borrowings and limit
unnecessary overheads.
DIRECTORS
Mr Robert Sephton Watson was appointed as an independent non-executive director of the company
with effect from 3 September 2013.
SUBSEQUENT EVENTS
Post-31 August 2013 an agreement was concluded for the disposal of a residential unit classified
as inventory and located in the Red Sails development in Hout Bay. Disposal proceeds will equal
R2 400 000 with inventory and borrowings decreasing by approximately R1 451 000 and R2 093 000
respectively.
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.
DIRECTORS: R P Fertig (Chief Executive Officer), W P Alcock+ (Chairman)
H Beukes CA(SA) (Financial Director), B Mothelesi*, M Moela*, R Watson*
(+Non-executive) (*Independent non-executive)
COMPANY SECRETARY: B W Kaiser
TRANSFER SECRETARIES: Computershare Investor Services (Pty) Limited
70 Marshall Street, Johannesburg, 2001
REGISTERED OFFICE: 2969 William Nicol Drive, Wedgewood Link, Bryanston, 2021
SPONSOR: ARCAY MOELA SPONSORS (PTY) LIMITED
13 November 2013
Date: 13/11/2013 01:47:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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