Wrap Text
Unaudited condensed consolidated interim results for the period ended 30 September 2013
Cadiz Holdings Limited
(Incorporated in the Republic of South Africa)
("Cadiz", Cadiz Holdings Limited)
(Incorporated in the Republic of South Africa)
("Cadiz", "the group" or "the company")
Registration number: 1997/007258/06
JSE share code: CDZ
ISIN: ZAE000017661
KEY FEATURES
Turnaround plan progressing well
Costs well contained
Earnings per share from continuing operations up 25%
Market leading unit trust performance
UNAUDITED CONDENSED CONSOLIDATED INTERIM RESULTS
For the six months ended 30 September 2013
CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME
Restated* Restated*
Unaudited Unaudited Audited
% 6 months 6 months 12 months
(R thousands) Change 30 Sep 13 30 Sep 12 31 Mar 13
Continuing operations
Gross operating revenue (2) 73 312 74 852 147 504
Interest income 24 13 989 11 280 21 954
Net investment income (31) 19 657 28 541 55 124
Net income from investments 19 785 28 485 55 010
Foreign exchange (losses)/gains (128) 56 114
Income attributable to linked assets 162 3 257 1 245 4 560
Net fair value gains on linked financial
instruments 259 063 256 299 510 794
Linked liability adjustment (255 806) (255 054) (506 234)
Fair value adjustment on third party
mutual fund interests (16) (15 332) (18 209) (37 694)
Operating expenses (0) (86 015) (86 049) (171 037)
Operating profit (24) 8 868 11 660 20 411
Finance costs (105) (276) (154)
Share of loss of associates (43) (4 017) (7 026) (11 345)
Profit before taxation 9 4 746 4 358 8 912
Taxation (1 304) (1 469) (3 803)
Total comprehensive income from
continuing operations 19 3 442 2 889 5 109
Discontinued operation
Loss from discontinued operation (1 904) - -
Total comprehensive income (47) 1 538 2 889 5 109
Earnings/(Loss) per share (cents)
Basic - from continuing operations 25 1.5 1.2 2.2
Basic - from discontinued operation (0.8) - -
(42) 0.7 1.2 2.2
Diluted - from continuing operations 25 1.5 1.2 2.2
Diluted - from discontinued operation (0.8) - -
(42) 0.7 1.2 2.2
NOTES TO THE CONDENSED CONSOLIDATED
INTERIM STATEMENT OF COMPREHENSIVE INCOME
Reconciliation of headline earnings:
Profit attributable to equity holders
of the company 1 538 2 889 5 109
Deficit/(surplus) on disposal of plant
and equipment 285 (70) (70)
Taxation impact (80) 20 20
Headline earnings (39) 1 743 2 839 5 059
Headline earnings per share (cents)
Basic (42) 0.7 1.2 2.2
Diluted (42) 0.7 1.2 2.2
Share information:
Issued number of shares ('000) 252 911 253 228 253 276
Consolidated number of shares ('000) 232 593 232 909 232 957
Weighted average number of shares ('000) 232 945 232 834 232 878
Diluted weighted average number of shares ('000) 233 006 233 546 233 238
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION
Restated* Restated*
Unaudited Unaudited Audited
(R thousands) 30 Sep 13 30 Sep 12 31 Mar 13
ASSETS
Intangible assets 238 733 237 220 238 423
Plant and equipment 5 207 4 606 5 161
Investment in associates 60 300 68 636 64 317
Deferred taxation 26 305 16 783 24 575
Investments backing linked funds 5 263 023 4 080 0 4 915 417
Financial assets - at fair value 3 014 989 3 413 322 3 586 177
Receivables 11 782 12 534 19 095
Investment property 179 227 57 768 153 372
Cash and cash equivalents 2 057 025 596 381 1 156 773
Financial assets - at amortised cost 94 808 77 635 87 752
Financial assets - at fair value 476 093 316 551 412 004
Receivables and prepayments 53 771 46 809 66 649
Taxation 254 9 001 1 888
Cash and cash equivalents 137 690 209 171 179 675
Total assets 6 356 184 5 066 417 5 995 861
EQUITY
Capital and reserves
Ordinary share capital and premium 25 198 25 562 25 644
Treasury shares (52 880) (52 875) (52 893)
Share-based payment reserve 37 146 36 245 36 173
Retained earnings 649 300 661 793 663 985
Total equity 658 764 670 725 672 909
LIABILITIES
Deferred taxation 8 604 3 321 7 694
Linked investment contract liabilities 5 196 010 4 056 889 4 846 601
Third party financial liabilities arising on
consolidation of mutual funds 453 823 268 117 405 801
Provisions 2 245 2 261 4 759
Trade and other payables 31 034 61 239 51 092
Taxation 5 704 3 865 7 005
Total liabilities 5 697 420 4 395 692 5 322 952
Total equity and liabilities 6 356 184 5 066 417 5 995 861
Net asset value (cents per share) 283 288 289
Net tangible asset value (cents per share) 173 180 179
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOW
Restated* Restated*
Unaudited Unaudited Audited
6 months 6 months 12 months
(R thousands) 30 Sep 13 30 Sep 12 31 Mar 13
Cash flow from operating activities 996 802 199 266 815 815
Cash generated from operations 1 014 412 318 072 930 097
Taxation (paid)/refunded (1 303) (2 430) 2 094
Dividends paid (16 307) (116 376) (116 376)
Cash flow from investing activities 138 185 145 420 (231 188)
Cash flow from financing activities (350) 49 164
Net change in cash and cash equivalents 858 267 53 895 584 791
Cash and cash equivalents at beginning of year 1 336 448 751 657 751 657
Cash and cash equivalents at end of year 2 194 715 805 552 1 336 448
Attributable to the group 137 690 209 171 179 675
Attributable to policyholders 2 057 025 596 381 1 156 773
The cash flow includes a cash outflow from discontinued operations of R1.9 million in
cashflow from operating activities for 30 September 2013.
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
Unaudited Unaudited Audited
6 months 6 months 12 months
(R thousands) 30 Sep 13 30 Sep 12 31 Mar 13
Share capital, share premium and treasury shares
Opening balance (27 249) (27 592) (27 592)
(Cancellation)/Issue of shares (446) 285 355
Issues/(Repurchases) of A ordinary shares 13 (6) (12)
(27 682) (27 313) (27 249)
Reserves
Opening balance 700 158 811 755 811 755
Net premium on issue/(cancellation) of equity
settled share appreciation rights 83 (45) (73)
Employee scheme - value of services provided 973 (185) (257)
Total comprehensive income 1 538 2 889 5 109
Dividends paid (16 307) (116 376) (116 376)
686 445 698 038 700 158
Total shareholders' equity 658 763 670 725 672 909
CONDENSED CONSOLIDATED INTERIM SEGMENT REPORT
(R thousands) Asset Investments
Management and Advisory Total
Unaudited 6 months to 30 September 2013
Segment revenue 70 439 17 635 88 074
Segment costs 72 490 6 206 78 696
Segment profit (2 051) 11 429 9 378
Corporate costs (2 956)
Loss before taxation on discontinued operation 2 341
Share of loss of associates (4 017)
Profit before taxation 4 746
Gross operating revenue (external) 61 292 12 020 73 312
Restated unaudited 6 months to 30 September 2012*
Segment revenue 68 950 20 836 89 786
Segment costs 67 318 6 254 73 572
Segment profit 1 632 14 582 16 214
Corporate costs (4 830)
Share of loss of associates (7 026)
Profit before taxation 4 358
Gross operating revenue (external) 61 587 13 265 74 852
Year-on-year % segment revenue 2% (15%) (2%)
Year-on-year % segment costs 8% (1%) 7%
Year-on-year % segment profit (226%) (22%) (42%)
Restated audited 12 months to 31 March 2013*
Segment revenue 140 219 38 054 178 273
Segment costs 134 823 14 586 149 409
Segment profit 5 396 23 468 28 864
Corporate costs (8 607)
Share of loss of associates (11 345)
Profit before taxation 8 912
Gross operating revenue (external) 120 602 26 902 147 504
* The audited March 2013 annual results and unaudited September 2012 interim results
were restated due to a change in accounting policy which has been disclosed in the
notes below. The restatements to the comparative information have not been audited.
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
BASIS OF PRESENTATION
These results have been prepared in terms of International Financial Reporting
Standards ("IFRS") and comply with IAS 34 - Interim Financial Reporting, the Listings
Requirements of the JSE Limited and the Companies Act No. 71 of 2008. The condensed
interim financial statements do not include all of the information required for full
annual financial statements.
The condensed consolidated interim financial results have been prepared under the
supervision of the chief financial officer Mr R Jahnig (CA) SA.
ACCOUNTING POLICIES
The accounting policies applied are in terms of IFRS and consistent with those applied
in the annual financial statements for 31 March 2013, except as described below:
- IFRS 10, 'Consolidated Financial Statements': Under IFRS 10, subsidiaries are all
entities (including structured entities) over which the group has control. The
group controls an entity when the group has power over an entity, is exposed to, or
has rights to, variable returns from its involvement with the entity and has the
ability to affect these returns through its power over the entity. Subsidiaries are
fully consolidated from the date on which control is transferred to the group. They
are deconsolidated from the date that control ceases.
The financial effects of the change in accounting policy are shown in the "Adoption
of IFRS 10" note.
- IFRS 12, Disclosure of Interests in Other Entities: Additional disclosures are
required to enable users of the financial statements to evaluate the nature of, and
risks associated with, the group's interest in other entities; and the effects of
those interests on its financial position, financial performance and cash flows.
The group will assess the required disclosures for the year ended 31 March 2014.
- IFRS 13 'Fair Value Measurement': IFRS 13 measurement and disclosure requirements
are applicable for the March 2014 year-end. The group has included the disclosures
required by IAS 34 paragraph 16A(j). See "Financial risk management" note.
1. RECLASSIFICATION OF COMPARATIVE FIGURES
The following reclassifications were made to the 30 September 2012 figures in line
with the changes made in our 31 March 2013 financial statements in order to provide
more reliable and relevant information:
- The order of presentation of its statement of financial position was changed from
a current/non-current classification to a liquidity-based statement of financial
position. This has had no financial impact;
- Cash flows related to the investments backing linked funds and the linked
investment contract liabilities of R113.8 million which were previously excluded
from the group's statement of cash flows, have been included in net cash generated
from operations;
- Provisions of R2.3 million previously included within trade and other payables
have been separated and disclosed in the statement of financial position;
- Financial assets of R221.5 million were split out into "at amortised cost"
(R77.6 million) and "at fair value" (R143.9 million) on the face of the statement
of financial position; and
- The cash flow presentation was changed from the direct method to the indirect
method.
All of the above reclassifications were only changes in presentation.
2. ADOPTION OF IFRS 10
The adoption of IFRS 10 has resulted in the consolidation of the Cadiz Stable Fund,
the Cadiz Protected Income Fund, the Cadiz Inflation Plus Fund and the Cadiz
Property Investment Trust. The group has applied IFRS 10 retrospectively in
accordance with the transition provisions of IFRS 10.
The tables below show the effect on the Statement of comprehensive income,
Statement of financial position, Statement of cash flow and segment report.
There was no effect on the Statement of changes in equity.
As IFRS 10
previously adjust-
(R thousands) reported* ments Restated
STATEMENT OF COMPREHENSIVE INCOME
30 September 2012
Gross operating revenue 80 481 (5 629) 74 852
Interest income 8 929 2 351 11 280
Net income from investments 15 559 12 926 28 485
Net fair value gains on linked financial
instruments 255 054 1 245 256 299
Fair value adjustment on third party mutual
fund interests (4 280) (13 929) (18 209)
Operating expenses (89 085) 3 036 (86 049)
31 March 2013
Gross operating revenue 156 130 (8 626) 147 504
Interest income 14 746 7 208 21 954
Net income from investments 26 275 28 735 55 010
Net fair value gains on linked financial
instruments 506 234 4 560 510 794
Fair value adjustment on third party mutual
fund interests (6 776) (30 918) (37 694)
Operating expenses (170 078) (959) (171 037)
As IFRS 10
previously adjust-
(R thousands) reported* ments Restated
STATEMENT OF FINANCIAL POSITION
30 September 2012
Assets
Investments backing linked funds 4 056 889 23 116 4 080 005
Financial assets - at fair value 3 466 122 (52 800) 3 413 322
Receivables 2 118 10 416 12 534
Investment property - 57 768 57 768
Cash and cash equivalents 588 649 7 732 596 381
Financial assets - at fair value 143 862 172 689 316 551
Receivables and prepayments 46 029 780 46 809
Cash and cash equivalents 189 183 19 988 209 171
Liabilities
Third party financial liabilities arising on
consolidation of mutual funds 51 544 216 573 268 117
31 March 2013
Assets
Investments backing linked funds 4 846 601 68 816 4 915 417
Financial assets - at fair value 3 747 716 (161 539) 3 586 177
Receivables - 19 095 19 095
Investment property - 153 372 153 372
Cash and cash equivalents 1 098 885 57 888 1 156 773
Financial assets - at fair value 251 158 160 846 412 004
Receivables and prepayments 54 943 11 706 66 649
Cash and cash equivalents 66 081 113 594 179 675
Liabilities
Third party financial liabilities arising on
consolidation of mutual funds 50 839 354 962 405 801
As IFRS 10
previously adjust-
(R thousands) reported* ments Restated
STATEMENT OF CASH FLOWS
30 September 2012
Cash flow from operating activities (6 111) 205 377 199 266
Cash flow from investing activities 32 237 (177 657) (145 420)
31 March 2013
Cash flow from operating activities 491 654 324 161 815 815
Cash flow from investing activities (78 509) (152 679) (231 188)
As IFRS 10
previously adjust-
(R thousands) reported* ments Restated
SEGMENT REPORT
30 September 2012
Gross operating revenue (external)
- Asset Management 67 216 (5 629) 61 587
31 March 2013
Gross operating revenue (external)
- Asset Management 129 228 (8 626) 120 602
* After adjusting for the reclassifications made as a result of changes made to
the 31 March 2013 annual financial statements referred to above.
3. FINANCIAL RISK MANAGEMENT
The group is exposed to a variety of financial risks which include credit risk,
market risk (including currency, price and interest rate risk) and liquidity risk.
The group's risk management programme focuses on the unpredictability of financial
markets and seeks to limit potential adverse effects on the group, while operating
within a framework that ensures alignment with the group's overall strategy and
risk appetite.
The condensed interim financial statements do not include all financial risk
management information and disclosures required in the annual financial statements;
they should be read in conjunction with the group's annual financial statements
as at 31 March 2013. There have been no changes in the risk management department
or in any risk management policies since the year-end.
FAIR VALUES
The carrying amounts and the fair values of the group's financial assets and
liabilities are the same. Where assets are held at amortised cost, the fair values
approximate the carrying values as these have floating rates.
Fair value measurements recognised in the statements of financial position
The following table provides an analysis of the financial instruments that are
measured subsequent to initial recognition at fair value, grouped into levels 1
to 3 based on the degree to which the fair value is observable:
- level 1 fair value measurements are those derived from quoted prices
(unadjusted) in active markets for identifiable assets or liabilities;
- level 2 fair value measurements are those derived from inputs other than quoted
prices included within level 1 that are observable for the asset or liability,
either directly or indirectly; and
- level 3 fair value measurements are those derived from valuation techniques that
include inputs for the asset or liability that are not based on observable
market data.
Valuation techniques and assumptions applied for the purposes of measuring fair value
The fair values of financial assets and financial liabilities are determined as
follows:
For level 1:
- the fair values of financial assets and financial liabilities with standard terms
and conditions and traded on active liquid markets are determined with reference
to quoted market prices.
For level 2:
- the fair values of other financial assets and financial liabilities (excluding
derivative instruments) are determined in accordance with generally accepted
pricing models based on discounted cash flow analysis using prices from
observable current market transactions and dealer quotes for similar instruments;
- observable inputs generally used to measure the fair value of securities
classified as level 2 include benchmark yields, reported secondary trades,
broker-dealer quotes, issuer spreads, benchmark securities, bids, offers and
reference data;
- the fair values of derivative instruments are calculated using quoted prices.
Where such prices are not available, discounted cash flow analysis is performed
using the applicable yield curve for the duration of the instruments for
non-optional derivatives, and option pricing models for optional derivatives.
Foreign currency forward contracts are measured using quoted forward exchange
rates and yield curves derived from quoted interest rates matching maturities of
the contracts. Interest rate swaps are measured at the present value of future
cash flows estimated and discounted based on the applicable yield curves derived
from quoted interest rates; and
- the fair value of financial guarantee contracts is determined using option
pricing models where the main assumptions are the probability of default by the
specified counterparty extrapolated from the market-based credit information and
the amount of loss, given the default.
For level 3
- determinations to classify fair value measures within level 3 of the valuation
hierarchy are generally based on the significance of the unobservable factors
when compared to the overall fair value measurement. The group applies various
due diligence procedures, as considered appropriate, to validate the underlying
information used in the valuations.
Group
(R thousands) Level 1 Level 2 Level 3 Total
2013
Investments backing linked funds
Financial assets - at fair value
- collective investment schemes - 696 404 - 696 404
- debentures - listed 129 241 - - 129 241
- debentures - unlisted - 530 844 - 530 844
- domestic equities - listed 418 751 - - 418 751
- fixed interest securities - listed 360 868 - - 360 868
- international investments
- debentures 12 357 - - 12 357
- equities - listed 108 411 - - 108 411
- equities - unlisted - 758 112 - 758 112
Investment property - - 179 227 179 227
Financial assets - at fair value
Private equity investments - - 7 581 7 581
Unit trusts and life products - 99 686 - 99 686
Seed capital investments 293 - - 293
Seed capital - listed equities 12 554 - - 12 554
Financial assets - at fair value
Conversion option
- related conversion option
at fair value - - 6 101 6 101
Listed investments 349 878 - - 349 878
1 392 354 2 085 046 192 909 3 670 309
Financial
Investment assets - at
Level 3 reconciliations property fair value Total
Balance at beginning of year
- as previously stated 102 201 15 953 118 154
IFRS 10 adjustment 51 171 - 51 171
Balance at beginning of year - restated 153 372 15 953 169 325
Additions 25 546 - 25 546
Net investment income - unrealised 309 729 1 038
Capital repayment - (3 000) (3 000)
Balance at end of year 179 227 13 682 192 909
There were no transfers between the various levels during this reporting period.
All investment properties are valued by an independent valuator on a three-year
rolling cycle and are sensitive to the property market.
In determining the fair value of the option included in the financial assets at
fair value the Vandermark valuation model was used. Significant inputs into the
model were the exercise price, current market price of Makana based on a valuation
of the underlying investments, standard deviation of expected returns of 19.8%,
risk-free rate of 6.3% and a dividend yield of 0%. If the current market price of
the Makana option was 10% less than management's estimate, the fair value would
have been reduced by R610 098.
The only fair value liabilities in the group are the linked investment contract
liabilities which are all grouped into level 2.
POST-BALANCE SHEET EVENTS
The directors are not aware of any post-balance sheet events that materially
affect the financial results or the financial position of the group as presented
in the condensed consolidated interim results.
COMMENTARY
Financial performance - Cadiz Holdings has made significant progress in implementing
its turnaround plan over the past six months. However, the group encountered a
difficult trading period, with performance being impacted by lower than expected fee
income from asset management, reduced returns from the group's investment portfolio
and increased costs of the asset management staff equity and retention scheme.
Gross operating revenue was 2% lower at R73.3 million. Investment income, after
deducting third party mutual interests, declined by 15% to R18.3 million off a lower
capital base.
Group operating costs were in line with the previous period despite the inclusion of
the asset management staff equity and retention scheme expense for the first time.
Excluding the impact of this scheme, group operating costs decreased by 4%. The staff
head count was 13% lower at 100 (March 2013: 115).
The share of associate loss of R4.0 million is higher than expected and reflects the
costs of integrating the securities business into BNP Paribas and the delay in
generating revenue from international clients.
Operating profit from continuing operations of R8.9 million (2012: R11.7 million) is
24% lower than the prior year. Total comprehensive income from continuing operations
for the period increased by 19% from R2.9 million to R3.4 million.
Total comprehensive income for the period after taking into account the loss of
R1.9 million from discontinued operations decreased from R2.9 million to R1.5 million.
Earnings per share from continuing operations increased by 25% to 1.5 cent per share,
and earnings per share were 42% lower at 0.7 cents per share.
Headline earnings totalled R1.7 million, with diluted headline earnings per share
42% lower at 0.7 cents. This is in line with the earnings guidance provided to
shareholders in the trading statement issued on SENS on 29 October 2013.
Asset management - Cadiz has continued to focus on building an independent asset
management company which aims to enrich lives through investment excellence and is
therefore committed to delivering strong investment performance relative to its peers
and benchmarks.
Revenue increased by 2% to R70.4 million while expenses of R72.5 million were 8%
higher. This includes the cost of the staff alignment and retention scheme introduced
in 2013. The business incurred a loss of R2.1 million compared to a profit of
R1.6 million in the corresponding period last year.
Total assets under management declined by R5.9 billion from March 2013 to
R28.8 billion (September 2012: R34.8 billion). The net change in the asset base
represents a gain from market movement of R560 million offset by net outflows of
R6.5 billion, mainly as a result of a single client withdrawal of R5.5 billion.
While net cash flows have been negative, Cadiz Asset Management has benefited from
improving margins resulting from the acquisition of higher yielding mandates during
the period. While assets under management have declined by 17%, it is pleasing that
revenue has increased off this reduced asset base. At 30 September assets under
management within Cadiz Collective Investments were R8.7 billion (30% of total
assets under management) and Cadiz Life were R5.2 billion (18% of total assets
under management).
Investment performance remains competitive across most funds with particularly strong
performance in unit trust funds. Highlights include:
- The Cadiz Money Market Fund is either best or second best fund over all measurement
periods;
- The Cadiz Absolute Yield Fund is in the top quartile of all South African - Multi
Asset Income funds over all periods;
- The Cadiz Managed Flexible Fund ranked fifth out of 65 South African - Multi Asset
Class High Equity funds over five years; and
- The Cadiz Inflation Plus Fund is comfortably ahead of its rolling three-year CPI+5%
benchmark.
Investments and advisory - At year-end the group's investment portfolio totalled
R320.0 million. Revenue from the investment and advisory business declined by 15% to
R17.6 million as a result of lower returns on the investments and a lower capital base.
At the end of the period the capital was invested as follows:
- R53.4 million invested in liquid assets for regulatory capital adequacy;
- R12.1 million invested in liquid assets for short-term commitments;
- R50.0 million for working capital requirements for the asset management business;
- R8.0 million loan to BNP Paribas Cadiz Securities for capital adequacy purposes;
- R84.5 million invested in Makana, our strategic empowerment partner;
- R16.1 million invested in strategic unlisted investments; and
- R95.9 million held as a prudent operational buffer.
Cadiz Corporate Solutions, the group's advisory business, successfully concluded a
number of cross-border investments into South Africa and other African countries, and
continues to be recognised for its independence and relationships in the corporate
market, as well as in China and India.
Corporate costs - The group is nearing completion of the structural changes relating
to the turnaround plan and as a result corporate costs have been reduced by 39% to
R3.0 million.
BNP Paribas Cadiz Securities - Cadiz's share of the associate losses from BNP Paribas
Cadiz Securities, which provides South African equity market access to local and
international institutional investors, was R4.0 million which is 43% lower than last
year. The cash equities and structured products offerings continue to gain market
traction with both local and international clients. The research team comprises
18 analysts, including 13 fundamental analysts covering 54% of the JSE. The
non-fundamental analysts provide economic, political and quantitative research.
Share capital and treasury shares - During the period the company repurchased and
cancelled 0.4 million (2012: Nil) shares at an average purchase price of 122 cents
per share. No shares were issued during the period.
Prospects - As a result of the turnaround plan, Cadiz is a leaner, more focused
business. Key staff are aligned with the interests of stakeholders as partners in
the business, costs are well managed and the group is well positioned to deliver
growth in the medium to long-term.
Cadiz Asset Management remains committed to delivering excellence in investment
performance and client service across its product range. The focus created through
the turnaround plan can be expected to generate long-term value for clients.
The integration of BNP Paribas Cadiz Securities is nearing completion, with the final
phase being the implementation of the Algo and Direct Market Access systems over the
next six months. The team will continue to focus on increasing its penetration with
local and international institutional clients.
Cadiz Corporate Solutions has a healthy deal pipeline and will continue to focus on
the resources sector with renewed attention on local investors, and will also seek
out further opportunities in the hospitality, infrastructure and renewable energy
sectors. The team is well positioned, through its strategic partnerships with leading
international business advisory firms, The Beijing Axis (China) and Eternus Capital
(India), to capitalise on the appetite of foreign investors to gain African exposure.
The group is currently implementing an equity ownership scheme for the Corporate
Solutions staff.
The group will continue to retain a prudent capital base and intends to distribute
annual profits, excluding the non-cash impact of the associates, to shareholders.
On behalf of the board of directors
Peter-Paul Ngwenya Fraser Shaw
Chairman Chief executive officer
Cape Town
18 November 2013
Registered office: The Terraces, 4th Floor, 25 Protea Road, Claremont, 7700
PO Box 44547, Claremont, 7735
Directors: S P Ngwenya (Chairman)*, R F G Cadiz*, G W Fury*#, B H Kent*#,
A N Matyumza*#, B J Memela-Khambula*#, S J Saunders*#, F C Shaw (Chief executive
officer) (* Non-executive directors) (# Independent)
Company secretary: C Schmahl
Transfer secretaries: Computershare Investor Services (Pty) Limited
70 Marshall Street, Johannesburg, 2001; PO Box 61051, Marshalltown, 2107
Sponsor: Investec Bank Limited
www.cadiz.co.za
Date: 18/11/2013 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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