Wrap Text
Interim Results For The Six Month Period Ended 30 June 2014
BONATLA PROPERTY HOLDINGS LIMITED
(Incorporated in the Republic of South Africa
(Registration number 1996/014533/06)
Share code: BNT & ISIN code: ZAE000013694
("Bonatla" or "the company")
INTERIM RESULTS FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2014
Abridged Consolidated Statement of Financial Position
As at As at As at
30 June 30 June 31 December
2104 2013 2013
6 months 6 months Year
Restated
Unaudited Unaudited Audited
R’000 R’000 R’000
ASSETS
Non-Current assets 300 420 198 649 300 596
Property, plant and equipment 49 999 47 762 49 994
Investment property 93 385 - 93 385
Goodwill 38 200 45 000 38 200
Investments 1 016 1 178 1 016
Prepayments 53 623 54 205 53 914
Loans 10 339 - 9 968
Deferred taxation 3 858 504 4 119
Deposits 50 000 50 000 50 000
Current assets 109 161 119 213 102 795
Inventories 371 715 733
Trade and other receivables 107 957 117 366 101 070
Prepayments - current portion 583 583 583
Cash and cash equivalents 250 549 409
Assets held for sale and discontinued operations 13 000 183 001 13 160
Total assets 422 581 500 863 416 551
EQUITY AND LIABILITIES
Equity capital and reserves 303 514 375 816 311 970
Share capital 256 070 256 070 256 070
Shares to be issued 221 857 221 857 221 857
Accumulated loss (187 052) (118 535) (179 508)
Available-for-sale financial assets reserve (1 080) (918) (1 080)
Equity contribution 18 354 18 354 18 354
Non-controlling interests (4 635) (1 012) (3 723)
Non-current liabilities 64 075 30 091 62 924
Borrowings - long term 37 769 22 592 39 057
Deferred taxation 26 306 7 499 23 867
Current Liabilities 54 992 31 225 36 290
Borrowings - short term 20 774 11 403 13 163
Trade and other payables 28 297 17 467 19 207
Bank overdraft 112 566 -
Taxation 5 809 1 789 3 920
Liabilities associated with assets held for sale
and discontinued operations - 63 731 5 367
Total equity and liabilities 422 581 500 863 416 551
cents cents cents
Net asset value per share 24.18 29.94 24.86
Net tangible asset value per share 21.14 26.36 21.81
Ordinary Shares in issue (including to be issued) 1 255 099 285 1 255 099 285 1 255 099 285
Diluted asset value per share 24.18 29.94 24.86
Diluted tangible asset value per share 21.14 26.36 21.81
Total shares (ordinary) and including to be issued 1 255 099 285 1 255 099 285 1 255 099 285
Abridged Consolidated Statements of Profit or Loss and Other Comprehensive Income
For the For the For the
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2014 2013 2013
Unaudited Unaudited Audited
R’000 R’000 R’000
Revenue 4 117 13 542 19 459
Cost of sales (4 639) (4 260) (9 728)
Gross margin (522) 9 282 9 731
Other income 13 25 426
Operating costs (7 228) (13 705) (44 220)
Impairment – goodwill - - (6 800)
Results from operating activities (7 737) (4 398) (40 863)
Investment revenue 553 - 297
Finance charges (3 263) (3 923) (8 434)
Loss before taxation (10 447) (8 321) (49 000)
Taxation (590) 383 (2 892)
Loss from continuing operations (11 037) (7 938) (51 892)
Profit/(loss) from discontinued operations 2 580 6 926 (11 417)
Loss for the period (8 457) (1 012) (63 309)
Other comprehensive loss - - (162)
Total comprehensive loss for the period (8 457) (1 012) (63 471)
Attributable to:
– owners of the parent – continuing operations (10 125) (6 411) (47 815)
– discontinued operations 2 580 6 926 (11 417)
(7 545) 515 (59 232)
– non-controlling interest (912) (1 527) (4 239)
Total comprehensive loss for the period (8 457) (1 012) (63 471)
Loss for the period (8 457) (1 012) (63 309)
Attributable to:
– owners of the parent – continuing operations (10 125) (6 411) (47 653)
– discontinued operations 2 580 6 926 (11 417)
(7 545) 515 (59 070)
– non-controlling interest (912) (1 527) (4 239)
Loss for the year (8 457) (1 012) (63 309)
Cents Cents Cents
Basic (loss)/earnings per share from continuing (0.60) 0.04 (4.71)
operations
Diluted basic (loss)/earnings per share from continuing (0.60) 0.04 (4.71)
operations
Headline (loss)/earnings per share (0.60) 0.26 (2.76)
Diluted headline (loss)/earnings per share (0.60) 0.26 (2.76)
Weighted average ordinary shares in issue for basic
and headline (loss)/earnings per share 255 099 285 1 255 099 285 1 255 099 285
Weighted average ordinary and preference shares in
issue for diluted (loss)/earnings per share 255 099 285 1 255 099 285 1 255 099 285
Abridged Consolidated Statements of Cash Flow
As at As at As at
30 June 30 June 31 December
2014 2013 2013
6 months 6 months 12 months
Unaudited Unaudited Audited
R’000 R’000 R’000
Cash outflows from operating activities (3 200) (39 490) (72 558)
Cash outflows from investing activities (396) (1 903) (3 084)
Cash inflows from financing activities 3 325 43 558 77 528
Net (decrease)/increase in cash and cash
equivalents (271) 2 165 1 886
Cash and cash equivalents at the beginning of the
period 409 (1 477) (1 477)
Cash and cash equivalents at the end of the period 138 688 409
Abridged Consolidated Statements of Changes in Equity
Share Share Treasury Shares Available Restated Restated Restated Total
Capital Premium Shares To be For sale Retained Equity Non-
Issued Financial
Assets Earnings/ Contribution Controlling
Reserve (Accumulated Interests
Loss)
R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000
Balance at
31 December 2012 8 697 247 373 (17 461) 239 318 (918) (100 180) 18 354 (18 354) 376 929
Total comprehensive loss for
the 6 months - - - - - 514 - (1 527) (1 013)
Increase in investment in
subsidiary - - - - - (18 869) - 18 869 -
Balance at
30 June 2013 8 697 247 373 (17 461) 239 318 (918) (118 535) 18 354 (1 012) 376 816
Total comprehensive loss for
the 6 months - - - - (162) (59 585) - (2 711) (62 458)
Increase in investment in
subsidiary - - - - - (1 387) - - (1 387)
Balance at 31 December
2013 8 697 247 373 (17 461) 239 318 (1 080) (179 507) 18 354 (3 723) 311 971
Total comprehensive loss for
the 6 months - - - - - (7 545) - (912 (8 457)
Increase in investment in
subsidiary -
Balance at 30 June 2014 8 697 247 373 (17 461) 239 318 (1 080) (187 052) 18 354 (4 635) 303 514
COMMENTARY
1 Basis of preparation
The unaudited abridged interim results for the six months ended 30 June 2014 (prepared in
accordance with IAS 34 – Interim Financial Reporting) have been prepared in accordance with
accounting policies consistent with International Financial Reporting Standards and with those applied
in previous periods as well as the JSE Listings Requirements.
2 Commentary on results
The revenue decreased by 69,6% in the period under review, cost of sales increased by 8,9% while
operating costs decreased by 47,3%. The decrease in revenue is mainly attributable to performance
fees being charged in the prior period.
The gearing ratio of the company increased from 9,0% to 19,3%.
30-Jun-14 30-Jun-13 31-Dec-13
R’000 R’000 R’000
3 Segment information
The basis of segmentation has remained the same
as used in the last annual financial statements.
Segment assets
Investment property - Leisure 54 485 55 037 54 765
Investment property - Industrial 325 325 325
Investment property - Commercial and retail 168 426 258 324 164 884
Manufacturing 106 806 123 077 104 438
Head office 92 539 64 100 92 139
Consolidated 422 581 500 863 416 551
The assets held for sale are reflected in the
Investment property - Commercial and Retail
segment.
Segment liabilities
Investment property - Industrial 596 555 572
Investment property - Commercial and retail 49 706 65 501 48 818
Manufacturing 21 660 11 860 15 660
Head office 47 105 47 130 39 531
Consolidated 119 067 125 046 104 581
Segment revenues and results by reportable
segment
Net Net Net
Segment Segment Segment
Continuing operations Revenue revenue revenue
Investment Property - Industrial - - -
Investment Property - Commercial and Retail 3 792 4 730 9 023
Manufacturing 326 612 2 235
Head Office - 8 200 8 200
From continuing operations 4 118 13 542 19 458
Discontinued operations
Investment Property - Commercial and Retail 1 096 7 715 10 147
The Head Office revenue decreased due to a risk
and performance fee being charged in 2013.
The Manufacturing revenue decreased due to more
maintenance downtime in 2014.
Segment results after elimination of inter-
segment revenue and costs
Investment Property - Leisure (291) (291) (583)
Investment Property - Industrial (24) (132) (149)
Investment Property - Commercial and Retail 1 106 1 762 1 263
Manufacturing (3 873) (9 936) (35 532)
Head Office (4 655) (4 199) (5 864)
(7 737) (4 398) (40 865)
Investment revenue 553 - 297
Finance charges (3 263) (3 923) (8 435)
Loss before tax (10 447) (8 321) (49 003)
Taxation (590) 383 (2 892)
Profit/(loss) from discontinued operations 2 580 6 926 (11 416)
Loss for the period (8 457) (1 012) (63 311)
Other comprehensive loss - - (162)
Total comprehensive loss (8 457) (1 012) (63 473)
4 Investment property
There have been no material changes in investment property.
5 Investment in subsidiaries
There have been no changes in investment in subsidiaries.
6 Assets held for sale and discontinued operations
The company intends to dispose of the Madeline Street property.
7 Share capital
Share
capital
and share
premium Number of
Reconciliation R’000 shares
Shares issued – 31 December 2013 8 697 869 724 813
– ordinary share capital 8 697
– share premium 247 373
Total – 30 June 2014 256 070 869 724 813
8 Shares to be issued
Ordinary – 12 Bluezone property acquisitions 231 798 369 969 272
– settle liabilities 7 520 85 250 000
Total number of ordinary shares to be issued 239 318 455 219 272
Less:Treasury shares (17 461) (69 844 800)
Fair value shares to be issued at 30 June 2014 221 857 385 374 472
Total issued shares and shares to be issued 1 255 099 285
Weighted average shares in issue for basic and headline
(loss)/earnings per share 1 255 099 285
Weighted average shares in issue for diluted basic and
headline (loss)/earnings per share 1 255 099 285
9 Equity contribution
The equity contribution reflects the group's share of the recapitalisation of Carbon and Processing
Technologies (Pty) Limited by this company's non-controlling shareholders.
10 Non-controlling interests
The minority shareholders in the activated carbon and charcoal business shared in their proportions of
the loss (R1,53 million) made during the first six months of 2014.
11 Borrowings
Total borrowings increased from R52,2 million to R58,5 million at 30 June 2014.
12 Prior period error and restatement of the comparative period
The group increased its investment in a subsidiary prior to June 2013. The interim report as issued for
the period ended June 2013 did however not reflect the losses in the subsidiary that were acquired on
the increase on this investment. This restatement on the acquisition of the losses has no effect on the
statement of profit or loss and other comprehensive income.
Management has decided that, in order to more appropriately reflect the fact that the non-controlling
shareholders of a subsidiary have taken responsibility to recapitalise the subsidiary company to the
extent of the losses it suffered without a change in their voting rights or beneficial shareholding in the
same company, to restate the comparative period. This has resulted in the addition of an additional
classification in equity capital and reserves that deals with the group's share of the equity contribution
made. This restatement has no effect on the statement of profit or loss and other comprehensive
income.
The restatement has the following effects on the Statements of Changes in Equity and the
Statements of Financial Position:
Retained
earnings/ Non-
(Accumulated Equity Controlling
Loss) Contribution Interests
R’000 R’000 R’000
Balance as at December 2012 as previously
reported (100 180) - -
Recapitalisation of subsidiary company by the
non-controlling shareholders - 18 354 (18 354)
Restated balance as at December 2012 (100 180) 18 354 (18 354)
Increase in investment in subsidiary (18 869) - 18 869
Total comprehensive loss for the 6 months as
previously reported 514 - (1 527)
Restated balance as at June 2013 (118 535) 18 354 (1 012)
Total comprehensive loss for the 6 months as
previously reported (59 585) - (2 711)
Increase in investment in subsidiary (1 388) - -
Balance as at December 2013 (179 508) 18 354 (3 723)
13 Profit/(loss) from discontinued operations
The net cash outflows from the discontinued
operations are as follows:
Cash inflows from operating activities 1 224 4 547 4 426
Cash (outflows)/inflows from investing activities (17) 50 840 108 169
Cash outflows from financing activities (1 113) (55 635) (113 481)
Net increase/(decrease) in cash and cash
equivalents 94 (248) (886)
Cash and cash equivalents at the beginning of
the period 67 953 953
Cash and cash equivalents at the end of the
period 161 705 67
The breakdown of the profit from discontinued
operations is as follows:
Revenue 1 096 7 715 10 147
Cost of sales (140) (1 780) (2 327)
Gross margin 956 5 935 7 820
Other operating income 3 168 11 11
Operating expenses (61) (449) (522)
Loss on disposal of subsidiaries (17) (1 375) (17 389)
Results from operating activities 4 046 4 122 (10 080)
Investment income - 13 21
Finance charges (441) (946) (1 360)
Profit/(loss) before taxation 3 605 3 189 (11 419)
Taxation (1 025) 3 737 2
Profit/(loss) after taxation 2 580 6 926 (11 417)
14 Reconciliation of headline (loss)/profit
(Loss)/profit attributable to ordinary equity
holders of the parent entity (7 545) 515 (59 070)
Fair value adjustment (net of deferred tax - - 191
Impairment – goodwill - 1 387 6 800
Loss on disposal of businesses 17 1 375 17 389
Headline (loss)/profit (7 528) 3 277 (34 690)
Earnings per share information cents cents cents
(Loss)/earnings per share (cents) (0.60) 0.04 (4.71)
Diluted basic (loss)/earnings per share (cents) (0.60) 0.04 (4.71)
Headline (loss)/earnings per share (cents) (0.60) 0.26 (2.76)
Diluted headline (loss)/earnings per share (cents) (0.60) 0.26 (2.76)
Weighted average shares in issue for basic and
headline (loss)/earnings per share 1 255 099 285 1 255 099 285 1 255 099 285
Weighted average shares in issue for diluted
basic and headline (loss)/earnings per share 1 255 099 285 1 255 099 285 1 255 099 285
15 Events after the reporting date
The company is engaged in negotiations for certain disposals and acquisitions which are expected to
be announced in due course.
16 Dividends
No dividends were declared during the period.
17 Management of the property portfolio
There are no appointed asset managers and this function is managed by the company during the
period under review.
The property management function is carried out by CDA Property Consultants (Pty) Limited, of which
the sole shareholder is C Douglas, who also is an executive director of Bonatla.
18 Board of directors
Mr RL Rainier (Non-executive)
Mr MH Brodie deceased on 15 March 2014
Mr NG Vontas (Chief Executive Officer)
Ms C Douglas
Mr W Voigt (Financial Director)
Mr R Bernstein (Independent Non-Executive)
Mr M Nurick (Independent Non-Executive) - appointed 12 September 2014
Mr Q D'Oliveira (Independent Non-Executive) - appointed 21 September 2014
19 Contingent liabilities
The directors are not aware of any contingent liabilities that, in their opinion, may have a material
effect on Bonatla’s financial position.
20 Future prospects
Against the tighter economic conditions which continue to prevail and continue to exert increasing
pressures on commercial property industry, the company has rationalised its property portfolio mainly
composed of B grade properties with short leases and non strategic locations. The company has also
entered agreements already announced on SENS to increase sizeably its portfolio with quality
property investments and developments. 2015 will see the completion of the initial portfolio
acquisitions.
Shareholders are referred to the previous announcements on SENS and are reminded that the
company is trading under a cautionary announcement.
21 Preparation of report
This report has been prepared by Wilfried Voigt, Financial Director.
30 September 2014
Johannesburg
Directors
NG Vontas, RL Rainier, C Douglas, W Voigt, R Bernstein, M Nurick, Q D'Oliveira
Registered address
31, 8th Street, Houghton, Johannesburg, 2198
Company secretary
Arcay Client Support (Pty) Limited
Transfer secretaries
Computershare Investor Services (Pty) Limited
Auditors
Nolands Inc.
Sponsors
Arcay Moela Sponsors (Pty) Limited
Date: 01/10/2014 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
