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Abridged Unaudited Consolidated Results for the Period Ended 31 March 2014 - SVF/SVFB
SOUTHERN VIEW FINANCE LTD
(Incorporated in Bermuda with registration number 47305)
BSX share code: SVF.BH
JSE share code: SVF
ISIN: BMG829251013
("SOUTHERN VIEW FINANCE" or the “Company")
ABRIDGED UNAUDITED CONSOLIDATED RESULTS FOR THE PERIOD ENDED
31 March 2014
Southern View Finance Ltd was incorporated in Bermuda on 10 January 2013 and obtained its
certificate to commence business on the same day. The Company has been established for the
purpose of holding investments. The Company's primary listing is on the Bermuda Stock Exchange
("BSX"). It has a secondary listing on the Alternative Exchange of the JSE Limited ("AltX").
DESCRIPTION OF THE BUSINESS
Southern View Finance is an international financial services business, offering affordable and
appropriate access to financial service products aimed at the mass market. The Company's aim is to
provide low cost financial service products, which will include (i) small and affordable loans (ii) mobile
banking (iii) money transfers and (iv) micro insurance products. The Company partners with and
leverages established retail and other networks to distribute its products. The company's initial focus
has been in South Africa, where it has partnered with a significant clothing and apparel retailer to offer
small, low cost loans to its customers. The Company is in the process of expanding into further
jurisdictions. The key business metrics of the Company's loan product are:
(1) an average loan amount of R3,000
(2) a loan term of 6 months
(3) a targeted monthly cash yield percentage on the loan portfolio of >20%
(4) targeted write-offs (all capital, interest and fees) of <12% of all advances and revenues
(5) a Bad Debt Provision of <= 20% which delivers a provision cover in excess of 100% of Non
Performing Loans
(6) new loan applications of >100 000 per month
REPORTING CURRENCY
The reporting currency of the Company was changed from United States Dollar to South African Rand
by a Directors resolution dated 19 February 2014. Therefore, the opening balances were retranslated
effective from 1st July 2013.
BUSINESS REVIEW
Southern View Finance Ltd has performed in line with expectations following its listing on the BSX and
the AltX and the successful acquisition of Southern View Finance Mauritius Ltd, Southern View Finance
UK Ltd and Southern View Finance SA Holdings (Pty) Ltd.
The Company's performance was in line with all the key business metrics listed above. The Gross and
Net Loan Book as at 31 March 2014 were R1,364,738,648 and R1,121,704,551 respectively. There
were 464,961 active customers.
Since the last financial year end a further R648 569 096 of capital was introduced to the business by
shareholders.
DIVIDEND
No dividend has been declared for the period under review.
BASIS OF PREPARATION
These abridged unaudited consolidated results for the period ended 31 March 2014 have been
prepared in accordance with the International Financial Reporting Standards, including IAS 34 - Interim
Financial Reporting, the rules of the BSX and the Listings Requirements of the JSE Limited.
ACCOUNTING POLICIES
The results below have not been audited or reviewed by the Company's external auditors. The
accounting policies adopted are consistent with those published in the Audited Annual Financial
Statements for the period from incorporation on 10 January 2013 to 30 June 2013.
COMPARATIVE FIGURES
The Company was incorporated on 10 January 2013, but only started trading on 25 October 2013.
Comparative figures reflecting trading activity for the same period in the prior year are therefore not
appropriate and have not been included for this reason.
By order of the Board
Merwe Scholtz
Chairman
June 2014
ABRIDGED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period ended 31 March 2014
Unaudited for the period ended 31 March 2014
ZAR
Revenue
Interest and fee income 407,741,499
Expenses
Operating expenses (430,051,744)
Administrative expenses (44,203,991)
Finance costs (30,284,101)
Loss from operations (96,798,337)
Other interest income 2,859,493
Foreign currency gain 1,235,759
Other income 46,727,650
Loss for the period before tax (45,975,434)
Taxation -
Loss for the period attributable to shareholders (45,975,434)
Other comprehensive income -
Total comprehensive loss for the period
attributable to shareholders (45,975,434)
Actual number of shares in issue (Class A shares) 55,299,671
Weighted number of shares in issue (Class A shares) 27,470,446
Basic loss per share (Class A shares) (1.67)
Headline loss per share (Class A share) (1.67)
Reconciliation of loss and headline loss:
Loss for the period attributable to shareholders (45,975,434)
Headline loss attributable to shareholders (45,975,434)
ABRIDGED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 March 2014
Unaudited as at 31 March 2014
ZAR
ASSETS
Non-current assets
Property, plant and equipment 115,905,437
Goodwill 17,827,548
Current assets
Cash and cash equivalent 331,288,034
Net Loan Advances 1,121,704,551
Other receivables 39,279,646
Total Assets 1,626,005,215
EQUITY AND LIABILITIES
Capital and Reserves
Share Capital 69,851
Share premium 678,595,120
Retained earnings (56,307,929)
Other reserves (747,629)
Total equity attributable to shareholders 621,609,412
Non-current Liabilities
Loans 589,546,885
Current Liabilities
Trade and other payables 414,848,918
Total liabilities 1,004,395,803
Total Equity and Liabilities 1,626,005,215
ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period ended 31 March 2014
Share Share Retained Other Total
capital premium earnings equity
Reserves
ZAR ZAR ZAR ZAR ZAR
Balance at incorporation - - - -
Total comprehensive loss for the - - (10,332,495) 747,629 (9,584,866)
period
Shares issued 3,010 30,092,865 30,095,875
Balance at 30 June 2013 - 3,010 30,092,865 (10,332,495) 747,629 20,511,009
Restated
Balance at 01 July 2013 3,010 30,092,865 (10,332,495) 747,629 20,511,009
Total comprehensive loss for the - - (45,975,434) - (45,975,434)
period
Shares issued 66,841 648,502,255 - - 648,569,096
Balance at 31 March 2014 - 69,851 678,595,12 (56,307,929) 747,629 623,104,671
unaudited
ABRIDGED CONSOLIDATED STATEMENT OF CASH FLOWS
For the period ended 31 March 2014
Unaudited as at 31 March 2014
ZAR
Loss before taxation (45,975,434)
Adjustments for:
Depreciation and amortisation 614,283
Unrealised gain on depreciation -
Unrealised gain on retranslated loss -
Changes in working capital:
Trade and other receivables (1,155,217,298)
Trade and other payables 406,760,607
Net cash utilised in operating activities (793,817,841)
Net cash generated from investing activities (133,740,860)
Net cash generated from financing activities 1,238,115,981
Effect of exchange rate fluctuations on cash held -
Net cash at the beginning of the period 20,730,755
Net cash at the end of the period 331,288,034
Interests of directors and executive officers:
Mr Hendrik van der Merwe Scholtz is the ultimate beneficial owner of 81.5% of the issued Class B
shares, held through various corporate entities
Registered office:
Mercury House, 101 Front Street, Hamilton, Bermuda, HM12
Directors: James Keyes, Gregory Toloram, James Bareham, Herman Troskie, Merwe Scholtz
(chairman), Sam Sithole
Auditors: Moore Stephens BKV Inc.
Transfer secretary: Computershare Investor Services (Pty) Ltd
Ground floor, 70 Marshall Street, Johannesburg, 2001, South Africa
Registrar and transfer agent: Mercury Group Limited
BSX sponsor: Global Custody and Clearing Limited
JSE sponsor: Bravura Capital (Proprietary) Limited
Company secretary: Mercury Group Limited
Date: 03/07/2014 04:35:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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