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Abridged unaudited consolidated results for the three month period ended 30 September 2014
SOUTHERN VIEW FINANCE LTD
(Incorporated in Bermuda with registration number 47305)
Class A share codes: BSX: SVF.BH JSE: SVF ISIN: BMG829251013
Class B share codes: BSX: SVFB.BH JSE: SVFB ISIN: BMG 829251195
ABRIDGED UNAUDITED CONSOLIDATED RESULTS FOR THE THREE MONTH PERIOD ENDED 30
SEPTEMBER 2014
Southern View Finance Ltd (the Company) 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 aquired 100% of the share capital in Southern View Finance
Mauritius Ltd and Southern View Finance UK Ltd during the 2013 financial year and 100% of the share
capital in Southern View Finance SA Holdings (Pty) Ltd during the 2014 financial year (the Group). 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
The Group is an international financial services business, offering affordable and appropriate access to
financial service products aimed at the mass market. The Group's aim is to provide low cost financial
service products, which currently includes (i) small and affordable loans and will include (ii) mobile banking
(iii) money transfers and (iv) micro insurance products. The Group partners with and leverages established
retail and other networks to distribute its products. The Group'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. It is in the process of expanding into further jurisdictions. The key business metrics of the
Group'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
BUSINESS REVIEW
The Group's performance was in line with all the key business metrics listed above. The Gross and Net
Loan Book as at 30 September 2014 were R1,624,886,428 and R1,357,610,694 respectively. There were
468,364 active customers.
DIVIDEND
No dividend has been declared for the period under review.
BASIS OF PREPARATION
These abridged unaudited consolidated results for the three month period ended 30 September 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 Consolidated Financial Statements for the year
ended 30 June 2014.
By order of the Board
Merwe Scholtz
Chairman
December 2014
SOUTHERN VIEW FINANCE LTD
ABRIDGED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2014
Unaudited as at Unaudited as at
30 September 30 September
2014 2013
R R
Assets
Cash and cash equivalents 641 383 527 11 685 703
Loans and advances to clients 1 357 610 694 -
Property, plant and equipment 156 284 466 1 677 177
Intangible assets 35 156 513 -
Other financial assets 75 773 797 4 745 328
Total assets 2 266 208 997 18 108 208
Liabilities
Loans at amortised cost 1 332 189 192 3 987
Trade and other payables 149 337 047 6 396 138
Current income tax liabilities 18 815 523 -
Total liabilities 1 500 341 762 6 400 125
Equity
Shareholders' equity 765 867 235 11 708 083
Total equity 765 867 235 11 708 083
Total liabilities and equity 2 266 208 997 18 108 208
SOUTHERN VIEW FINANCE LTD
ABRIDGED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE THREE MONTH PERIOD
ENDED 30 SEPTEMBER 2014
Unaudited for the Unaudited for
three month the three month
period ended 30 period ended 30
September 2014 September 2013
R R
Net interest income 233 778 643 -
Loan fee income 167 789 467 -
Direct distribution expense (59 113 735) -
Net portfolio income 342 454 376 -
Other income 6 743 023 161
Operating costs (87 588 208) (10 457 747)
Net bad debt written off (158 035 424) -
Bad debt provision (9 943 697) -
Funding costs (34 850 317) -
Other expenses (283 674 622) (10 457 586)
Operating profit (loss) before tax 58 779 754 (10 457 586)
Income tax expense (12 296 806) -
Profit (loss) for the three month period 46 482 948 (10 457 586)
Earnings (loss) per share cents
Basic 67 (340)
Diluted 67 (340)
*
SOUTHERN VIEW FINANCE LTD
ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE THREE MONTH PERIOD
ENDED 30 SEPTEMBER 2014
Share Share Retained Total
capital premium earnings Reserves equity
R R R R R
Balance at 01 July
2013-audited 3 010 30 092 865 (10 332 498) (747 630) 19 015 747
Total comprehensive
loss for the three
month period - - (10 457 586) - (10 457 586)
Shares issued 314 3 149 604 - - 3 149 918
Balance at 30
September 2013-
unaudited 3 324 33 242 469 (20 790 084) (747 630) 11 708 079
Balance at 01
October 2013-
unaudited 3 324 33 242 469 (20 790 084) (747 630) 11 708 079
Total comprehensive
profit for the period - - 62 247 031 - 62 247 031
Shares issued 76 526 645 352 651 - - 645 429 177
Balance at 30 June
2014-audited 79 850 678 595 120 41 456 947 (747 630) 719 384 287
Total comprehensive
profit for the three
month period - - 46 482 948 - 46 482 948
Balance at 30
September 2014-
unaudited 79 850 678 595 120 87 939 895 (747 630) 765 867 235
SOUTHERN VIEW FINANCE LTD
ABRIDGED CONSOLIDATED CASH FLOWS FOR THE THREE MONTH PERIOD ENDED 30 SEPTEMBER 2014
Unaudited as at 30 Unaudited as at 30
September 2014 September 2013
R R
Profit (loss) before taxation 58 779 754 (10 457 586)
Adjustments for:
Depreciation and amortisation 6 625 816 171 831
Tax paid (12 296 806) -
Changes in working capital:
Loans and other receivables 29 202 229 (4 540 797)
Trade and other payables (10 225 882) 3 874 183
Net cash generated (utilised) in operating activities 72 085 111 (10 952 369)
Net cash utilised in investing activities (18 363 115) (1 242 601)
Net cash generated from financing
activities 24 392 590 3 149 918
Net cash at the beginning of the period 563 268 941 20 730 755
Net cash at the end of the period 641 383 527 11 685 703
* Headline earnings (loss) per share cents
Basic 67 (340)
Diluted 67 (340)
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(Non Executive), Gregory Toloram (Non Executive), James Bareham (Executive
Officer), Hermanus Troskie (Non Executive), Hendrik van der Merwe Scholtz (Non Executive Chairman),
Sam Sithole (Non Executive)
Auditors: PricewaterhouseCoopers Mauritius
Transfer secretary: Computer Share 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: KPMG Services (Pty) Ltd
Company secretary: Mercury Group Limited
23 October 2014
Date: 23/12/2014 04:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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