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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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