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NICTUS BEPERK - Consolidated interim results for the six months ended 30 September 2014

Release Date: 01/12/2014 07:05
Code(s): NCS     PDF:  
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Consolidated interim results for the six months ended 30 September 2014

Nictus Limited
Incorporated in the Republic of South Africa
RSA 1981/011858/06
NAM F81/11858
JSE share code: NCS
NSX share code: NCT
ISIN number: NA0009123481
(“Nictus” or “the Group” or “the Company”)

www.nictuslimited.co.za

Consolidated interim results
for the six months ended 30 September 2014

Highlights
- Group revenue increased by 12% to R25,3 million
- Group’s total assets increased by 37% to R506 million year-on- year
- Investment income from operations increased by 66% to R13,5 million
- Net profit after taxation for the period increased by 112%
  resulting in a profit of R2,7 million

Condensed consolidated statement of comprehensive income

                                  Unaudited   Unaudited    Audited
                                 Six months Six months        Year
                                      ended       ended      ended
                                    30 Sept     30 Sept     31 Mar
                            %          2014        2013       2014
                         Change       R’000       R’000      R’000
Revenue                      12      25 382      22 743     48 757
Cost of sales                        (9 194)    (10 374)   (13 964)
Claims incurred                      (3 123)     (2 223)    (6 721)
Gross profit                 29      13 065      10 146     28 072
Other income                          1 033           –      2 285
Investment income from
operations                   66      13 560       8 164     18 557
Operating and
administrative expenses             (26 155)    (19 245)   (48 651)
Operating profit/(loss)               1 503        (935)       263
Finance income                        2 057       2 634      3 405
Financing costs                           –           –         (1)
Profit before taxation      110       3 560       1 699      3 667
Taxation                               (861)       (428)      (653)
Profit after taxation       112       2 699       1 271      3 014
Other comprehensive
income for the year                       –           –        263
Total comprehensive
income for the period       112       2 699       1 271      3 277
Profit and total
comprehensive income
attributable to:
Owners of the company                 2 699       1 271      3 277
Earnings per share
Basic earnings per
share (cents)               112        4,07        1,92       4,55
Diluted earnings per
share (cents)               112        4,07        1,92       4,55
Weighted average number
of shares in issue (000s)            66 270      66 270     66 270


Condensed consolidated statement of financial position

                                   Unaudited   Unaudited   Audited
                                  Six months Six months       Year
                                       ended       ended     ended
                                     30 Sept     30 Sept    31 Mar
                                        2014        2013      2014
                                       R’000       R’000     R’000
Assets
Non-current assets
Property, plant and equipment         17 051      17 415    16 997
Intangible assets                        573           –       573
Investments                           36 595      28 415    32 883
Loans and receivables                  5 540       7 232     5 723
Deferred tax assets                    3 971       2 741     2 460
                                      63 730      55 803    58 636
Current assets                       442 063     313 927   375 073
Total assets                         505 793     369 730   433 709
Equity
Stated capital                        48 668      48 668    48 668
Revaluation reserve                    8 170       5 905     8 170
Retained earnings                     27 452      22 747    24 753
Total equity                          84 290      77 320    81 591
Liabilities
Non-current liabilities
Deferred tax liabilities               3 829       5 483     2 506
Current liabilities*                 417 674     286 927   349 612
Insurance contract liability         408 422     278 040   338 920
Other current liabilities              9 252       8 887    10 692
Total liabilities                    421 503     292 410   352 118
Total equity and liabilities         505 793     369 730   433 709


Reconciliation between earnings and headline earnings

                                   Unaudited   Unaudited   Audited
                                  Six months Six months       Year
                                       ended       ended     ended
                                     30 Sept     30 Sept    31 Mar
                                        2014        2013      2014
                                       R’000       R’000     R’000
Profit for the period, net of
taxation                               2 699       1 271    3 014
Profit on disposal of property,
plant and equipment net of
taxation                                   –           –     (12)
Headline earnings                      2 699       1 271    3 002
Headline earnings per share
(cents)                                 4,07        1,92     4,53
Diluted headline earnings per
share (cents)                           4,07        1,92     4,53


Condensed consolidated statement of cash flow

                                   Unaudited  Unaudited  Audited
                                  Six months Six months     Year
                                       ended      ended    ended
                                     30 Sept    30 Sept   31 Mar
                                        2014       2013     2014
                                       R’000      R’000    R’000
Cash flow from operating
activities
Cash generated from operations        23 179     32 529   67 242
Investment income from
operations received                   12 880      6 653   17 233
Interest paid                              –          –       (1)
Interest received                      2 057      2 634    3 405
Ordinary dividends received              680        717    1 324
Net cash inflow from operating
activities                            38 796     42 533   89 203
Net cash utilised by investing
activities                           (16 530)   (27 886) (17 375)
Net increase in cash and cash
equivalents                           22 266     14 647   71 828
Cash and cash equivalents at
beginning of period                  192 286    120 458  120 458
Cash and cash equivalents at end
of period                            214 552    135 105  192 286

Condensed segmental report
                                  Unaudited       Unaudited     Audited
                                 Six months      Six months        Year
                                      ended           ended       ended
                                    30 Sept         30 Sept      31 Mar
                                       2014            2013        2014
                                      R’000           R’000       R’000
Segment assets
Furniture retail                     50 079          57 639      50 429
Insurance and finance               488 835         347 352     413 126
                                    538 914         404 991     463 555
Head office and eliminations        (33 121)        (35 261)    (29 846)
                                    505 793         369 730     433 709
Segment revenue
Furniture retail                     17 954          19 985      36 573
Insurance and finance                 6 292           5 033      13 460
                                     24 246          25 018      50 033
Head office and eliminations          1 136          (2 275)     (1 276)
                                     25 382          22 743      48 757
Operating profit/(loss) after
taxation
Furniture retail                     (1 457)            303        (806)
Insurance and finance                 4 389           2 461       5 040
                                      2 932           2 764       4 234
Head office and eliminations           (233)         (1 493)     (1 220)
                                      2 699           1 271       3 014


Condensed consolidated statement of changes in equity

                                        Revalu-
                             Stated       ation Retained    Total
                            capital     reserve earnings   equity
                              R’000       R’000    R’000    R’000
Balance at
1 April 2013                 48 668       5 905   21 476   76 049
Total comprehensive
income                            –           –    1 271    1 271
Profit for the period             –           –    1 271    1 271
Balance at
30 September 2013            48 668       5 905   22 747   77 320
Total comprehensive
income                            –           –    2 006    2 006
Profit for the period             –           –    1 743    1 743
Tax adjustments to
revaluation of
properies                         –           –      263      263
Transfer to reserves              –       2 265        –    2 265
Adjustments to
revaluation reserve               –       2 265        –    2 265
Balance at
31 March 2014                48 668       8 170   24 753   81 591
Total comprehensive
income                            –           –    2 699    2 699
Profit for the period             –           –    2 699    2 699
Balance at
30 September 2014            48 668       8 170   27 452   84 290


Notes to the financial information

1. Statement of compliance
These 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
the Financial Reporting Pronouncements as issued by the Financial
Reporting Standards Council and 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 annual financial statements. The financial information for
the year ended 31 March 2014 has been extracted from the audited
annual financial information, however the Condensed Consolidated
Interim Report (‘the Interim Report’) has itself not been audited or
reviewed. The directors take full responsibility for the preparation
of the Interim Report and the correct extraction of the financial
information included therein from the underlying annual financial
statements for the year ended 31 March 2014. The annual financial
statements and the audit report thereon is available for inspection
at the Company’s registered office and on the Company’s website
www.nictuslimited.co.za.
The preparation of the Group’s condensed consolidated financial
results was supervised by the Group Financial Director, FM Theart,
CA(SA).

2. Basis of measurement
The condensed consolidated interim financial statements are presented
in thousands of South African Rands (R’000s) on the historical cost
basis, except for derivative financial instruments and financial
instruments at fair value which are measured at fair value and
property which is measured at market value. The accounting policies
presented in the annual financial statements for the year ended 31
March 2014 have been applied consistently to all of the periods
presented in these condensed consolidated interim financial
statements by all Group entities. The accounting policies are in
terms of IFRS.

3. Related parties
During the six-month period ended 30 September 2014, certain
companies within the Group entered into transactions with each other.
These intra-Group transactions have been eliminated on consolidation.
Related party information is unchanged from that reported at
31 March 2014. Refer to the 2014 annual report for further information,
accessible on Nictus’s website www.nictuslimited.co.za.

4. Review of operations
The revenue and profit for the period under review increased compared
to the six months ended 30 September 2013. The major contributing
factor is attributed to the significant premium and investment income
growth in the insurance segment.
Despite the turmoil in the South African economy resulting in strikes
and labour unrest across all sectors, the equity markets have
performed well.

Segmental results
Furniture retail: Revenue decreased by 10% compared to the six months
ended 30 September 2013. The furniture retail sector
remains under pressure with rising inflation and consumer debt
showing a visible impact on consumer spending.
Insurance and finance: The premium income increased by 25% for the
six month period ended 30 September 2014. Investment income was
higher than in the previous period as a result of good growth on the
equity markets resulting in an increased segmental profit for the
first six months ended 30 September 2014.

Headline earnings
For the six-month period ended 30 September 2014 there were no items
that impacted the headline earnings calculation.

Basic earnings per share
Earnings per share for the six months ended 30 September 2014 was
4,07 cents (30 September 2013: 1,92 cents), and headline earnings per
share of 4,07 cents (30 September 2013: 1,92 cents).

Dividend
No interim dividend has been declared.

Prospects
The Group has historically generated more earnings in the second part
of the financial year than the first. The board is confident that
despite the difficulties in the retail sector the various segments
are well placed to build on the positive results achieved in the
first six months to ensure a sustainable growth.

Directors
GR de V Tromp was appointed as Deputy Managing Director of Nictus
Limited on 18 November 2014.

Secondary listing
With the successful conclusion of the 2012 unbundling the directors
resolved to cancel the secondary listing of Nictus on the Namibian
Stock Exchange.



On behalf of the board:

NC Tromp       FM Theart
Randburg
1 December 2014

Directors
BJ Willemse (Chairman – Independent non-executive)
Gerard Swart (Independent non-executive)
NC Tromp (Managing Director)
FM Theart (Financial Director)
JD Mandy (Independent non-executive)
PJ de W Tromp (Non-executive)

Transfer secretary
Computershare Investor Services Proprietary Limited
PO Box 61051, Marshaltown 2107

Company secretary
Veritas Board of Executors Proprietary Limited
Corner of Pretoria and Dover Street, Randburg PO Box 2878, Randburg 2125
Registered office

Nictus Building
Corner of Pretoria and Dover Street
PO Box 2878, Randburg 2125

Namibia registered office
3rd Floor, Corporate House
17 Luderitz Street
Windhoek
PO Box 755, Windhoek 9000

Sponsor on the NSX
Simonis Storm Securities (Proprietary) Limited

Sponsor on the JSE
KPMG Services Proprietary Limited

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