Wrap Text
Condensed Consolidated Interim Results for the six months ended 30 September 2014
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
Diluted headline loss per share of 10.0 cents
Assets under management of R26.4 billion
Net asset value per share of 197 cents
CONDENSED CONSOLIDATED INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2014
CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
% 6 months 6 months 12 months
(R thousands) Change Notes 30 Sep 14 30 Sep 13 31 Mar 14
Continuing operations
Gross operating revenue (11) 65 607 73 312 138 593
Interest income (1) 13 899 13 989 27 138
Net investment income (14 435) 19 657 47 223
Net (loss)/income from investments (14 388) 19 785 47 171
Foreign exchange (loss)/gain (47) (128) 52
Income attributable to linked assets 32 4 283 3 257 4 486
Net fair value gains on linked
financial instruments 190 964 259 063 532 108
Linked liability adjustment (186 681) (255 806) (527 622)
Fair value adjustment on third-party
mutual funds 4 803 (15 332) (37 955)
Operating expenses (3) (83 504) (86 015) (165 386)
Impairment of financial assets at
amortised cost 2 (17 353) - -
Impairment of goodwill 3 (160 000) - -
Operating (loss)/profit (186 700) 8 868 14 099
Finance costs (9) (105) (124)
Share of profit/(loss) of associate 1 434 (4 017) (3 843)
Impairment of investment in associate 4 (18 000) - -
(Loss)/profit before taxation (203 275) 4 746 10 132
Taxation 2 783 (1 304) (2 332)
Total comprehensive income from continuing
operations (200 492) 3 442 7 800
Discontinued operation
Loss from discontinued operation - (1 904) (1 904)
Total comprehensive (loss)/income (200 492) 1 538 5 896
Earnings/(Loss) per share (cents)
Basic - from continuing operations (88.9) 1.5 3.3
Basic - from discontinued operation - (0.8) (0.8)
(88.9) 0.7 2.5
Diluted - from continuing operations (88.9) 1.5 3.3
Diluted - from discontinued operation - (0.8) (0.8)
(88.9) 0.7 2.5
Notes to the condensed consolidated interim
statement of comprehensive income
Reconciliation of headline earnings:
(Loss)/Profit attributable to equity holders
of the company (200 492) 1 538 5 896
Remeasurements included in equity-accounted earnings - - 102
Taxation impact - - (28)
Loss on disposal of plant and equipment - 285 284
Taxation impact - (80) (80)
Impairment of goodwill 160 000 - -
Impairment of investment in associate 18 000 - -
Headline (loss)/earnings (22 492) 1 743 6 174
Headline (loss)/earnings per share (cents)
Basic (10.0) 0.7 2.7
Diluted (10.0) 0.7 2.7
Share information:
Issued number of shares ('000) 245 823 252 911 245 823
Consolidated number of shares ('000) 225 505 232 593 225 505
Weighted average number of shares ('000) 225 505 232 945 231 409
Diluted weighted average number of shares ('000) 225 517 233 006 231 479
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION
Unaudited Audited
(R thousands) Note 30 Sep 14 31 Mar 14
ASSETS
Intangible assets 80 033 239 285
Plant and equipment 6 508 5 086
Interests in associates - equity accounted 4 43 908 60 474
Deferred taxation 28 350 22 843
Investments backing linked funds 6 129 026 5 616 688
Financial assets - at fair value 4 106 321 3 856 625
Interest in associates - at fair value 439 738 471 813
Loans and receivables 146 710 94 720
Investment property 337 773 336 689
Cash and cash equivalents 1 098 484 856 841
Financial assets - at amortised cost 82 469 97 745
Financial assets - at fair value 365 639 416 232
Interests in associates - at fair value 20 356 14 795
Receivables and prepayments 54 603 61 180
Taxation 930 2 679
Cash and cash equivalents 86 896 126 906
Total assets 6 898 718 6 663 913
EQUITY
Capital and reserves
Ordinary share capital and premium 16 989 16 991
Treasury shares (52 880) (52 880)
Share-based payment reserve 36 854 37 610
Retained earnings 443 241 653 656
Total equity 444 204 655 377
LIABILITIES
Deferred taxation 3 822 6 590
Linked investment contract liabilities 5 963 305 5 410 476
Third-party financial liabilities arising on
consolidation of mutual funds 434 296 555 287
Provisions 3 734 5 288
Trade and other payables 49 254 30 874
Taxation 103 21
Total liabilities 6 454 514 6 008 536
Total equity and liabilities 6 898 718 6 663 913
Net asset value (cents per share) 197 291
Net tangible asset value (cents per share) 151 177
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOW
Restated
Unaudited Unaudited
6 months 6 months
(R thousands) 30 Sep 14 30 Sep 13
Cash flow from operating activities
Cash flow from operations 204 779 839 997
Taxation refunded/(paid) (893) (1 303)
Interest received 13 022 8 510
Interest paid (9) (105)
Dividends received 3 544 -
Cash generated from operations 220 443 847 099
Ordinary dividends paid (9 922) (16 307)
Net cash flow from operating activities 210 521 830 792
Cash flow from investing activities
Proceeds on disposal of financial assets 124 42 025
Purchase of financial assets (4 954) (11 870)
Additions to intangible assets (1 713) (1 018)
Additions to plant and equipment (2 341) (2 058)
Proceeds on disposal of plant and equipment - 746
Net cash flow from investing activities (8 884) 27 825
Cash flow from financing activities
Cancellation/(Issue) of A ordinary shares (4) 96
Repurchase of treasury shares - (446)
Net cash flow from financing activities (4) (350)
Net change in cash and cash equivalents 201 633 858 267
Cash and cash equivalents at beginning of year 983 747 1 336 448
Cash and cash equivalents at end of year 1 185 380 2 194 715
Attributable to the group 86 896 137 690
Attributable to policyholders 1 098 484 2 057 025
The cash flow includes a cash outflow from discontinued operations of R1.9 million in
cash flow from operating activities for 30 September 2013.
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
Unaudited Unaudited
6 months 6 months
(R thousands) 30 Sep 14 30 Sep 13
Share capital, share premium and treasury shares
Opening balance (35 889) (27 249)
(Cancellation)/Issue of shares - (446)
Issues/(Repurchases) of A ordinary shares (4) 13
(35 893) (27 682)
Reserves
Opening balance 691 266 700 158
Premium on issue/(cancellation) of equity-settled share
appreciation rights - 83
Employee scheme - value of services provided (755) 973
Total comprehensive (loss)/income (200 492) 1 538
Dividends paid (9 922) (16 307)
480 097 686 445
Total shareholders' equity 444 204 658 763
CONDENSED CONSOLIDATED INTERIM SEGMENT REPORT
Asset
(R thousands) Management Advisory Investments Total
Unaudited 6 months to
30 September 2014
Segment revenue 65 918 12 165 (87) 77 996
Segment costs 72 725 9 508 - 82 233
Segment (loss)/profit (6 807) 2 657 (87) (4 237)
Corporate costs (3 408)
Share-based payment expense - Advisory (1 711)
Impairment of financial assets
at amortised cost (17 353)
Impairment of goodwill (160 000)
Impairment of investment in associate (18 000)
Share of profit of associate 1 434
Loss before taxation (203 275)
Gross operating revenue (external) 53 442 12 165 - 65 607
Unaudited 6 months to
30 September 2013 (restated)
Segment revenue 70 439 7 153 10 482 88 074
Segment costs 72 490 6 206 - 78 696
Segment profit/(loss) (2 051) 947 10 482 9 378
Corporate costs (2 956)
Share before taxation on
discontinued operation 2 341
Share of loss of associate (4 017)
Profit before taxation 4 746
Gross operating revenue (external) 61 292 6 362 5 658 73 312
Year-on-year % segment revenue (6%) 70% (11%)
Year-on-year % segment costs 0% 53% 4%
Year-on-year % segment profit (232%) 181%
Audited 12 months to
31 March 2014
Segment revenue 137 222 18 209 20 107 175 538
Segment costs 143 812 13 808 - 157 620
Segment profit/(loss) (6 590) 4 401 20 107 17 918
Corporate costs (6 284)
Loss before taxation on
discontinued operation 2 341
Share of loss of associate (3 843)
Profit before taxation 10 132
Gross operating revenue (external) 112 887 17 411 8 295 138 593
Investments and Advisory have been shown as separate segments as the chief operating
decision-maker of the group, the executive committee, has started reviewing the
segments' results separately since the publication of the prior period interim results.
The prior year Investment and Advisory segment has been split out into two segments.
This has had no effect on the previously reported segment's totals.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
1 Basis of presentation
The condensed consolidated interim financial statements are prepared in accordance
with International Financial Reporting Standards, IAS 34 - Interim Financial Reporting,
the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee
and Financial Pronouncements as issued by the Financial Reporting Standards Council
and the requirements of the Companies Act of South Africa. The accounting policies
applied in the preparation of these interim financial statements are in terms of
International Financial Reporting Standards and are consistent with those applied
in the previous consolidated annual financial statements.
The condensed consolidated interim financial results have been prepared under the
supervision of the finance director, Mr F C Shaw (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 2014.
2 Impairment of financial assets at amortised cost
Makana funded the acquisition of 34.4 million Cadiz shares through the issue of
preference shares now redeemable in February 2017. Makana is a fully functioning
investment company and the Cadiz shares and other assets support this liability.
Following the decrease in the Cadiz share price management has considered the
recoverability of the preference shares and provided R17.4 million against the
R65.5 million Makana preference shares.
3 Impairment of goodwill
The assets under management in the asset management cash-generating unit have
declined over the period and as a result management expects the turnaround to take
longer than originally envisaged. This has resulted in an impairment of the carrying
value of the goodwill by R160.0 million to R66.9 million based on a value-in-use
valuation. The estimates used to test goodwill were as follows:
Starting assets under management of R26.4 billion (March 2014: R28.5 billion),
annual average asset growth in assets of 13.2% (March 2013: 16.7%) applied over a
ten-year cash projection period, average total fees of 0.46% (March 2014: 0.50%),
an average cost-to-income ratio of 88% (March 2014: 75%), a weighted average cost
of capital of 22% (March 2014: 22%) and a long-term growth rate of 6% (March 2014: 6%).
4 Impairment of investments in associates
The recoverable amount of the investment in associates has been determined based on
value-in-use calculations.
During the period BNP Paribas Cadiz Securities' in which Cadiz holds 40%, has
started making profits. However, based on the current revenue mix and the previous
delays experienced, management has revised revenue and cost growth estimates and
impaired the carrying value of the associates by R18.0 million to R43.9 million.
The estimates used to test for impairment in investment in associates were as follows:
Annual average growth in revenue and costs over a five-year period of 20.6% and 12.1%
respectively (2013: 22.2% and 9.3%), a weighted average cost of capital of 20%
(March 2014: 20%) and a long-term growth rate of 6% (March 2014: 6%). This has been
tested against the estimated call option price receivable should BNP Paribas exercise
their call option in October 2016.
5 Reclassification of comparative figures
For the year ended 31 March 2014 cash flows from consolidated collective investment
schemes have been reclassified from cash flows from investing activities to cash flows
from operating activities. The comparative interim balances as at 30 September 2013
have been restated to align the presentation with that of 31 March 2014.
As
previously
(R thousands) reported Adjustments Restated
30 September 2013
Statement of cash flows
Cash flow from operating activities
Cash flow from operations 1 006 007 (166 010) 839 997
Cash generated from operations 1 013 109 (166 010) 847 099
Net cash flow from operating activities 996 802 (166 010) 830 792
Cash flow from investing activities
Proceeds on disposal of financial assets (76 085) 118 110 42 025
Purchase of financial assets (59 770) 47 900 (11 870)
Net cash flow from investing activities (138 185) 166 010 27 825
6 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 2014. There have been no change in the risk mangement 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 table below 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.
- 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
30 September 2014
Investments backing linked funds
Financial assets - designated at
fair value through profit or loss
- Collective investment schemes - 703 338 - 703 338
- debentures - listed 164 158 - - 164 158
- debentures - unlisted - 1 765 789 21 503 1 787 292
- domestic equities - listed 571 531 - 2 571 533
- domestic equities - unlisted - - - -
- fixed interest securities - listed 446 833 4 674 451 507
- international equities - listed 41 549 - - 41 549
- international equities - unlisted - 386 944 - 386 944
Investment property - - 337 773 337 773
Financial assets - designated at
fair value through profit or loss
Private equity investments - - 8 448 8 448
Collective investment schemes - 143 510 788 144 298
- fixed interest securities - unlisted - 32 756 6 302 39 058
- investment-linked policies - 9 256 - 9 256
Other investments - 14 596 - 14 596
Financial assets - at fair value
through profit or loss
Conversion option
- related conversion option
at fair value - - 525 525
Listed investments 149 457 - - 149 457
Interests in associates - measured
at fair value
Collective investment schemes - 430 088 30 006 460 094
1 373 528 3 486 277 410 021 5 269 826
Financial
assets -
Investment at fair
Level 3 reconciliations property value Total
Balance at beginning of period 336 689 11 988 348 677
Additions - 22 22
Transfer from level 2 to level 3 - 63 275 63 275
Profit/(Loss) recognised in profit or loss 1 084 (3 037) (1 953)
Balance at end of period 337 773 72 248 410 021
Group
(R thousands) Level 1 Level 2 Level 3 Total
31 March 2014
Investments backing linked funds
Financial assets - designated at
fair value through profit or loss
- Collective investment schemes - 12 914 - 12 914
- debentures - listed 170 186 - - 170 186
- debentures - unlisted - 1 795 269 - 1 795 269
- domestic equities - listed 613 558 - - 613 558
- domestic equities - unlisted - 17 541 - 17 541
- fixed interest securities - listed 330 908 - - 330 908
- international equities - listed 47 149 - - 47 149
- international equities - unlisted - 869 099 - 869 099
Investment property - - 336 689 336 689
Financial assets - designated at
fair value through profit or loss
Private equity investments - - 7 963 7 963
Collective investment schemes - 175 855 - 175 855
- fixed interest securities - unlisted - 54 373 - 54 373
- investment-linked policies - 4 078 - 4 078
Other investments - 608 - 608
Financial assets - at fair value
through profit or loss
Conversion option
- related conversion option
at fair value - - 4 025 4 025
Listed investments 169 330 - - 169 330
Interests in associates - measured
at fair value
Collective investment schemes - 486 608 - 486 608
1 331 131 3 416 345 348 677 5 096 153
Financial
assets -
Investment at fair
Level 3 reconciliations property value Total
Balance at beginning of year 153 372 15 953 169 325
Additions 184 944 - 184 944
Losses recognised in profit or loss (1 627) (965) (2 592)
Capital repayment - (3 000) (3 000)
Balance at end of year 336 689 11 988 348 677
As at 30 September 2014 the group transferred R63.3 million of investments in African
Bank Limited from level 2 to level 3. This amount consists of R7.5 million held directly
by the group and R55.8 million held by policyholders. The investments in African Bank
Limited have been valued using guidance provided by the curator of African Bank Limited,
senior debt being valued at 90% of the face value and subordinated debt valued at nil.
African Bank Limited Preference shares are valued at 1 cent per share.
All investment properties are valued by an independent valuator on a three-year rolling
cycle and are sensitive to the property market.
The financial assets at fair value consist of the investment in Makana of R0.5 million
(March 2014: R4.0 million), the investment in Rotimode of R0.9 million (March 2014:
R0.9 million), the investment in KayaGas of R7.6 million (March 2014: R7.1 million) and
the investment in African Bank Limited of R63.3 million.
In determining the fair value of the Makana 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 16.8% (March 2014:
16.8%), risk-free rate of 7.5% (March 2014: 7.1%) and a dividend yield of 0%
(March 2014: 0%).
The investment in Rotimode represents the consideration settled. The investment in
KayaGas is secured and therefore no sensitivities were deemed necessary.
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 - Profitability for the period was impacted by the group's core
business, Cadiz Asset Management, experiencing a R2.1 billion decline in assets under
management. Cadiz Corporate Solutions and BNP Paribas Cadiz Securities both posted
improved performances for the period.
Cadiz has provided R17.4 million against its loan funding to empowerment partner,
Makana Investment Corporation (Makana), and written down the carrying value of its
investment in Makana, primarily as a result of the 27% decline in the Cadiz share price.
Owing to the performance of Cadiz Asset Management the group has impaired the goodwill
by R160.0 million to R66.9 million and the carrying value of the investment in the
BNP Paribas Cadiz Securities associates has been written down by R18.0 million to
R43.9 million.
These factors have contributed to a headline loss of R22.5 million. The diluted losses
per share are 88.9 cents with headline losses per share being 10.0 cents. These results
are in line with the trading statement released on SENS on 12 November 2014.
Operational performance - Gross segment revenue is 11% lower at R78.0 million mainly
as a result of losses from the Investments segment.
Gross segment expenses continued to be tightly managed and were 4% higher at
R82.2 million mainly as a result of increased costs in the Advisory business on higher
revenue. The group's staff head count was 7% lower at 90 (March 2014: 97).
Group segment losses were R4.2 million (2013: profit of R9.4 million).
Asset management - Cadiz Asset Management revenue decreased by 6% to R65.9 million
while expenses of R72.7 million were marginally higher, contributing to a loss for
the period of R6.8 million.
Total assets under management declined by R2.1 billion from March 2014 to R26.4 billion
at period-end mainly as a result of net outflows.
At 30 September 2014 assets under management within Cadiz Collective Investments were
R8.0 billion (30% of total assets under management) and Cadiz Life were R6.0 billion
(23% of total assets under management).
Long-term investment performance remains compelling across most funds. In the short to
medium term, however, performance in some funds, in particular equity and multi-asset
class funds with a significant allocation to equities, has been lagging. The reasons
for this performance are not new. In line with the valuation-focused investment philosophy
we have had significant exposure to out-of-favour resource shares while not holding some
large industrial shares which have performed exceptionally well. Importantly, our core
equity thesis remains unchanged and we continue to hold exposure to resource shares.
While focused on delivering exceptional performance to our clients we are also cognisant
of our responsibility to preserve our investors' capital and believe clients will be
well rewarded for supporting us in the long term.
Performance in fixed income, while affected by the demise of African Bank in August,
continues to be strong, as does performance in structured products.
The turnaround in Cadiz Asset Management is taking longer than expected to bear fruit.
Assets under management are not expected to increase in the short term, and consequently
neither will the financial performance. However, the group remains committed to its
investment philosophy and process which management believes is in the best long-term
interests of clients.
Advisory - Cadiz Corporate Solutions, the group's advisory business, advised on several
local and an increasing number of cross-border M&A transactions. The loss of revenue due
to the adverse M&A conditions in the resources sector was supplanted by revenue streams
from other sectors. Revenue increased by 70% to R12.2 million while costs were 53% higher
at R9.5 million due in part to fees paid to strategic partners on deals completed. The
business made a profit of R2.7 million compared to R0.9 million in the corresponding
period last year.
Cadiz Corporate Solutions has a healthy deal pipeline and will continue to focus on
the resource and infrastructure sectors, at the same time being alive to any other
opportunities. Management now owns 24% of the business.
Investments - The group continues to retain a prudent capital base to support it
businesses and plans to distribute annual profits, adjusted for the non-cash impact of
the associates, to shareholders.
At the end of the period the group's investment portfolio totalled R263.2 million
(March 2014: R306.2 million). Net losses from investments were R0.1 million after a
R3.5 million mark-to-market loss on the Makana conversion option and a R2.6 million
loss due to exposure to African Bank in underlying investment portfolios.
At the end of the period the capital was invested as follows:
- R50.3 million invested mainly in liquid money market assets for regulatory capital
adequacy;
- R3.6 million invested in liquid assets for short-term commitments;
- R1.1 million invested as seed capital for the asset management products;
- R8.2 million loan to BNP Paribas Cadiz Securities for capital adequacy purposes;
- R48.2 million funding after a provision of R17.4 million to Makana, secured by the
Cadiz shares. Makana holds various unlisted investments which cover the value of the
funding, however management considered it appropriate to provide against the loan
funding as a result of the lower Cadiz share price.
- R18.5 million option to acquire 24.8% of Makana which holds a majority stake in
Sebenza Forwarding and Shipping, and empowerment stakes in Hulamin, Foskor, Tellumat,
KayaGas and various mining rights. The value of conversion rights was reduced in the
six months primarily due to the value of Makana's investment in Cadiz reducing in
line with the share price.
- R17.0 million invested in strategic unlisted investments which are unlikely to be
realised in the short to medium term; and
- R116.3 million held as a prudent operational buffer held in liquid assets with market
exposure.
Net asset value of R444.2 million (197.0 cents per share) comprises R202.9 million
(90.0 cents per share) liquid assets, R17.0 million (7.5 cents per share) unlisted
investments, R52.1 million (23.1 cents per share) invested in BNP Paribas Cadiz
Securities, R66.7 million (29.6 cents per share) invested in Makana and R6.5 million
(2.9 cents per share) fixed assets and R99.0 million (43.9 cents per share) in
intangible assets.
BNP Paribas Cadiz Securities - Cadiz has a 40% interest in BNP Paribas Cadiz Securities
which provides the South African equity market access to domestic and international
institutional investors. Cadiz' share of associate profits was R1.4 million (2013: loss
of R4.0 million). BNP Paribas has a call option to purchase the stake from Cadiz from
October 2016 and the period to be used to determine the strike price for that option
commences on 1 January 2015. Management has undertaken a valuation of the BNP Paribas
Cadiz Securities investment and considered it prudent to impair the investment by
R18.0 million. The carrying value of the investment in the securities associate is
therefore R43.9 million.
Share capital and treasury shares - During the period the company acquired 560 816 shares
for an average price of 106.6 cents per share and allocated them to staff in terms of
the Restricted Share Plan.
On behalf of the board of directors
Peter-Paul Ngwenya Fraser Shaw
Chairman Chief executive officer
Cape Town
14 November 2014
Registered office: The Terraces, 4th Floor, 25 Protea Road, Claremont, 7700
PO Box 44547, Claremont, 7735
Company secretary: C Schmahl
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)
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: 14/11/2014 07:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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