Wrap Text
Audited Results for the year ended 31 December 2014
Blackstar Group SE
Incorporated in Malta
Company number SE 4
Registered as an external company with limited liability in the
Republic of South Africa under registration number
2011/008274/10
Share code: BCK or BLCK
ISIN: MT0000620113
("Blackstar" or the "Company" or the "Group")
Audited Results for the year ended 31 December 2014
Highlights
- Intrinsic NAV increased by 23.3% over the last financial year to R1.6 billion (in Pounds Sterling an
increase of 19.4% to GBP89.0 million)
- Transaction announced with Tiso Investment Holdings
- Announced acquisition of remaining 67.5% of Times Media Group
- Blackstar to be renamed Tiso Blackstar
- Final dividend declared of 14 cents (0.77 pence) per ordinary share
- Realised Cadiz investment at a return of 39.0%
Overview
2014 was an exceptional year for Blackstar Group SE ("Blackstar" or "the Company" or "the Group"). Not only
did the investments and operations performance exceed expectations, but we were also able to arrange two
large transactions, which are in the process of being concluded in 2015, that will not only enhance Blackstar's
scale and profitability but also put the Group on a new growth path. The acquisition with Tiso Investment Holdings
Proprietary Limited (RF) ("TIH") and the acquisition of the remaining 67.5% of Times Media Group Limited
("TMG") that Blackstar doesn't already own, will herald a new era for the new Tiso Blackstar Group.
During the year Blackstar enhanced its cash flow from operations and grew its Intrinsic net asset value
("Intrinsic NAV") by 23.3% from R1.3 billion (GBP74.6 million) to R1.6 billion (GBP89.0 million) or R19.29 (GBP1.07)
per share at 31 December 2014. As an Investment Holding Company, it is our belief that one needs to have
lean head office costs so we are always mindful of costs. We have been able to lower our overhead costs
at the Blackstar head office level.
Blackstar's debt reduced from R175.0 million (GBP9.8 million) when initially raised in February 2014 to finance
an additional 7.3% interest in TMG, to the current R72.7 million (GBP4.0 million) as at 31 December 2014.
Our steel interests, Stalcor Proprietary Limited ("Stalcor") and Global Roofing Solutions Proprietary Limited
("GRS"), which were merged into one cost effective streamlined business Consolidated Steel Industries
Proprietary Limited ("CSI"), performed way above expectations. GRS in particular is growing nicely into Africa
where we now generate close to 40% of the total GRS turnover. CSI has been able to buck the negative
trend that most of the South African steel businesses find themselves in. CSI was completely reviewed from
top to bottom and as a result has been able to enhance all aspects of the business from cash flows back to
Blackstar to better service to our customers.
During the period we also received a total of R59.5 million (GBP3.3 million) from Robor Proprietary Limited
("Robor") as a result of the management buy-in and a dividend of R3.1 million (GBP0.2 million). Our interest in
Robor also increased from 17.5% to 19.1%.
TMG made up 62.8% of the Blackstar Intrinsic NAV as at 31 December 2014. As announced on 8 December 2014,
Blackstar has made an offer to TMG shareholders to purchase their equity in order to make TMG a
100% held subsidiary of Blackstar.
Subsequent to year end, Blackstar realised R36.1 million (GBP2.0 million) on disposal of its investment in
Cadiz Holdings Limited ("Cadiz") thereby successfully generating a return of 39.0% on funds invested.
We continue to grow our property portfolio Blackstar Real Estate Proprietary Limited and the property
subsidiaries ("BRE") opportunistically and during the year we added two new properties.
The South African Rand continued to weaken during the current year with the closing ZAR/GBP exchange
rate increasing to 18.001 at 31 December 2014 compared to 17.431 at 31 December 2013. As the majority of
the Group's assets are based in Rands, this continues to have a significant impact on the Pounds Sterling
reported results of the Group. Blackstar manages its currency risk by holding the Group's cash resources in
Pounds Sterling and US Dollars.
Investments review
Robor
Robor has experienced a decline in sales in South Africa in almost all market segments and all these reflect
the slow economy and the lack of spend on infrastructure projects. Focus areas for growth into the future are
in the Energy, Mining (mainly Africa) and Water segments where Robor will become an engineering steel solutions
provider. Over the past 12 months exports made up 17% of total revenue and this is forecast to
increase going forward.
Post the management buy-in concluded in 2014 Robor has continued to implement its consolidation and
restructure initiatives. These are proceeding according to the plan which was to create space for a future
investment (relating to enhanced capabilities in tube, pipe and structural steel solutions in growing market
segments) and deliver operational cost savings equal to at least the new rental charge.
The Board takes a conservative view on investment valuations and the Group's investment in Robor was valued
at R80.0 million (GBP4.4 million) at year end which is currently less than the Group's share of the tangible
net asset value of Robor. Robor generated an EBITDA of R184.1 million (GBP10.3 million) for their financial year
ended 30 September 2014.
CSI
Blackstar merged its steel business interests, Stalcor and GRS, within Stalcor and renamed it Consolidated
Steel Industries Proprietary Limited ("CSI").
Aggregate revenue earned by these wholly owned businesses grew during the year by 40.9% to R1.8 billion
(GBP0.1 billion), with an EBITDA increase of 28.7% to over R75.0 million (GBP4.2 million) during this period.
GRS continued its expansion initiative into Africa. This expansion was funded through cash generated by
CSI's operations. GRS now has fully functioning entities in Namibia, Botswana, Zambia, Zimbabwe and
Ghana with Mozambique in the process of being established. Direct and indirect sales revenues earned by
GRS through this newly established African-network exceeded R340.0 million (GBP19.0 million), being over one
third of GRS's total sales for the year. These revenues contributed significantly to CSI's overall profitability
and cash flow.
Blackstar's investment in CSI has increased by R145.0 million (GBP8.1 million) over the past year to a fair value
of R357.0 million (GBP19.8 million) at 31 December 2014.
TMG
TMG's interims were released on 30 March 2015. Please refer to www.timesmedia.co.za for full results. TMG
is a unique asset, with high barriers to entry and good cash flow generation. Its brands are well known.
TMG is well positioned and performing above its competitors in the print segment of the market. TMG
newspapers are gaining in both circulation and advertising market share. The TMG digital business continues
to grow and break new ground.
As referred to in Annexure A, the intrinsic fair value of Blackstar's investment in TMG amounted to R1.0 billion
(GBP55.9 million) at 31 December 2014.
Other equity investments
Blackstar's remaining investments performed to expectations and are earmarked for sale at the right
valuation.
Property
During the year we added to our property portfolio by acquiring two commercial properties with long term
tenants. BRE now has six commercial properties in South Africa and one in Namibia with a total gross fair
value of R193.9 million (GBP10.8 million) and a value of R71.0 million (GBP3.9 million) net of third party
debt raised to finance the property acquisitions. BRE also started a development on vacant land in an industrial
development near the King Shaka airport in KwaZulu-Natal. This development will be completed by May 2015
and we expect to secure tenants in the next few weeks. To date BRE has generated good returns on the
capital it has invested in its property portfolio over the last four years.
Our philosophy with our property investments is to leverage the property as much as possible and contribute a
sliver of equity secured by a solid long-term tenant.
As at 31 December 2014, the fair value of Blackstar's investment in BRE, included in the Intrinsic NAV (refer
to Annexure A), amounted to R65.3 million (GBP3.6 million).
Financial review
Blackstar is considered to be an Investment Entity and therefore measures its investments, including certain
subsidiaries and associates, at fair value through profit and loss as opposed to consolidating and equity
accounting. The following subsidiaries, which provide services that relate to the Company's own investment
activities, continue to be consolidated: Blackstar Cyprus (Investors) Limited ("Blackstar Cyprus"); Blackstar
Group Proprietary Limited ("Blackstar SA"); and Blackstar Fund Managers Proprietary Limited ("BFM").
As a result of this accounting treatment, the Blackstar consolidated balance sheet is more closely aligned with
the Intrinsic NAV of the Group than it would be under the traditional equity accounting model. The Intrinsic
NAV provides shareholders with an analysis of the inherent value of each investment held as at year end.
References to the Intrinsic NAV are made based on the 31 December 2014 Intrinsic NAV as included in
Annexure A.
As at 31 December 2014, the reported Intrinsic NAV amounted to R1.6 billion (GBP89.0 million) compared to the
reported NAV per the Blackstar consolidated balance sheet of R1.5 billion (GBP80.6 million), a difference of
R152.3 million (GBP8.5 million) which is mainly attributable to the differing share price used to value Blackstar's
investment in TMG. In calculating the Intrinsic NAV, Blackstar's investment in TMG has been valued based
on a price of R24.50 per share. This represents the value ascribed to TMG shares per the Scheme of
Arrangement (as detailed within both the Blackstar and TMG circulars), which differed from the closing,
quoted share price of TMG shares at 31 December 2014 of R21.00 per share. In accordance with the
requirements of EU IFRS which specifically states that in all cases if there is a quoted price in an active
market for an asset or a liability an entity shall use that price without adjustment when measuring fair value,
the carrying value of the TMG investment included in the consolidated balance sheet is determined using the
closing quoted share price of R21.00.
Income for the year ended 31 December 2014 amounted to R245.3 million (GBP13.7 million) which includes the
following: R38.3 million (GBP2.1 million) generated from investments in the form of performance and monitoring
fees, dividends and interest income; R204.7 million (GBP11.5 million) net gains on investments; and R2.3 million
(GBP0.1 million) net foreign exchange gains.
The net gains on investments comprises of realised gains on disposals of R2.8 million (GBP0.2 million) and
unrealised fair value gains of R201.9 million (GBP11.3 million). Unrealised gains mainly include a fair value gain
of R165.0 million (GBP9.2 million) recognised on the net investment in CSI, and a gain of R27.4 million (GBP1.5
million) arising on the investment in Robor.
Operating expenses amounted to R92.2 million (GBP5.2 million) which includes amongst others the day-to-day
operational expenses incurred to run Blackstar and its consolidated subsidiaries, the long term Management
Incentive Scheme awards expense, as well as deal specific and other non-recurring costs incurred. The
increase from R76.5 million (GBP5.1 million) in the prior year can be attributed to the higher long term
Management Incentive Scheme award which is calculated based on the growth in the Blackstar Intrinsic NAV.
For the current financial year, operational costs to run the daily Blackstar operations amounted to 1.5% of the
reported net asset value ("NAV") per the consolidated balance sheet as at 31 December 2014 which is lower than
the prior year's reported figure of 1.7% of balance sheet NAV as at 31 December 2013. Operational costs are closely
monitored and action is taken wherever possible to cut any excess expenditure in order to improve the
profitability of the Group.
Finance costs increased by R5.4 million (GBP0.3 million) when compared to the prior year mainly as a result of
the interest cost arising on the access facility raised to acquire further TMG shares. The ongoing finance costs
for this facility have reduced significantly since draw down due to the fact that 58.5% of the debt was repaid
during the 2014 financial year.
Total equity attributable to equity holders of the parent amounted to R1.5 billion as at 31 December 2014, an
11.3%, or R146.8 million increase since 31 December 2013. The same figures in Pounds Sterling only
reflected an increase of 7.7%, or GBP5.8 million, to GBP80.6 million at 31 December 2014 which can be attributed to
the fact that the Rand weakened during the reporting period.
Total assets increased from R1.3 billion (GBP75.7 million) as at 31 December 2013 to R1.5 billion (GBP85.9 million)
as at 31 December 2014 mainly as a result of the new investment in TMG, growth in this underlying
investment, and an increase in the fair value of CSI and Robor during the current financial year.
An access facility was opened with Rand Merchant Bank to finance R175.0 million (GBP9.8 million) of the TMG
share purchases made in the first quarter of 2014. By year end, Blackstar had already reduced the
outstanding debt to R72.7 million (GBP4.0 million). The debt repayments were largely funded by the proceeds
received from Robor and dividends received from TMG. The debt is interest bearing with interest repayable
quarterly and a bullet capital repayment in 2017. On implementation of the TMG and Kagiso Tiso Holdings Proprietary Limited
("KTH") acquisitions, the access facility will be settled and be replaced by the new debt raised to finance these acquisitions.
Cash and cash equivalents declined by R59.9 million (GBP3.4 million) during the current financial year to an
amount of R63.0 million (GBP3.5 million). Significant cash flow movements during the year included a R242.5
million (GBP13.6 million) cash outflow as a result of investment activity; a R167.8 million (GBP9.8 million)
cash inflow on realisation of investments including repayments of loan receivables; a R72.7 million
(GBP4.0 million) cash inflow from the access facility net of repayments; R20.4 million (GBP1.1 million) cash
outflow on treasury share purchases; and R18.5 million (GBP1.0 million) paid out in cash dividends to shareholders.
Dividend
Given the strong performance of the Company, the Board has resolved to declare a final gross dividend of
14 South African cents (1.08 cents in Euros and 0.77 pence in Pounds Sterling) per ordinary share for the year
ended 31 December 2014.
The exchange rates have been fixed for the calculation of the Euro and Pounds Sterling equivalents based on
the closing exchange rates on Tuesday, 21 April 2015 of EUR 1 = ZAR 13.013 and GBP 1 = ZAR 18.094.
The final dividend will be paid in accordance with the salient dates and times set out below:
Last day to trade on the South African register Friday, 8 May 2015
Trading ex-dividend commences on the South African register Monday, 11 May 2015
Last day to trade on the UK register Wednesday, 13 May 2015
Trading ex-dividend commences on the UK register Thursday, 14 May 2015
Record date for shareholders recorded on the UK and South African registers Friday, 15 May 2015
Date of payment Monday, 8 June 2015
Share certificates may not be dematerialised or rematerialised between Monday, 11 May 2015 and Friday, 15
May 2015, both days inclusive, and transfers between the UK register and the South African register may not
take place during that period.
Dividend tax will be withheld from the amount of the gross dividend of 14 South African cents per share paid
to South African shareholders at the rate of 15% unless a shareholder qualifies for exemption. After the
dividend tax has been withheld, the net dividend will be 11.9 South African cents per share. There are no
other taxes (foreign or otherwise) to be withheld from the dividend. The Company had a total of
81,296,942 shares in issue at the date on which the dividend was announced, being Friday, 24 April 2015. The
dividend will be distributed by Blackstar Group SE (Malta tax registration number 995944033) and is regarded
as a foreign dividend.
Tiso Blackstar Group – Outlook
At the General Meeting of the Company held on 23 March 2015, Blackstar shareholders approved resolutions of the
acquisition of the shares not already owned in TMG and the acquisition of 22.9% of KTH from TIH and the
Tiso Foundation Charitable Trust ("Tiso Foundation") (the "Acquisitions"). The Acquisitions will substantially
increase Blackstar's scale and Intrinsic NAV to approximately R4.5 billion (GBP251.8 million) without materially
adding to the head office costs of the Group (refer to Annexure B). Annexure B includes the 31 December
2014 Intrinsic NAV adjusted for the impact of the Acquisitions as if they had been completed on that date.
This Annexure is a useful tool which can be used by shareholders and potential investors to assess the impact
the Acquisitions have and to assist them in determining the estimated NAV of the Company post implementation
of the Acquisitions.
The TMG Scheme Meeting and General Meeting were held on 30 March 2015 and all resolutions were
passed by the requisite majority of TMG shareholders. The implementation of the Acquisitions remains
subject to the fulfilment (or waiver where applicable) of the outstanding conditions and terms envisaged as
detailed in both the TMG Scheme Circular and Blackstar Circular.
The new combined group called Tiso Blackstar, will have a London office and focus on Pan-African
investment opportunities to benefit from the long term demographic trends that will grow Africa's economies
over the next decades. The underlying, market-leading assets of Tiso Blackstar, predominantly based in
South Africa, give the Company a solid foundation for its growth aspirations as it seeks to become the capital
partner of choice to businesses growing in Africa.
These Acquisitions will set the platform for Tiso Blackstar's next exciting growth path and will bring in the
skills of our new partners Nkululeko Sowazi and David Adomakoh, who together with the Tiso Foundation will
become the largest shareholders of Tiso Blackstar.
KTH is one of South Africa's successful investment companies to emerge from Black Economic
Empowerment ("BEE") beginnings. KTH has a solid asset base with good cash flow generation. Many of their
BEE type investments are now reaching maturity.
KTH's investee entities include market leaders in key sectors including, amongst others, media, resources,
infrastructure, power and financial services and include a mix of both listed and private investments. KTH's
main investments which make up 77.3% of their NAV are as follows:
- Kagiso Media Proprietary Limited ("KML") – 100% shareholding. KML has interests in substantial media
assets including East Coast Radio and Jacaranda FM.
- MMI Holdings Limited ("MMI") – 7.1% shareholding. MMI is a South African based financial services
group listed on the JSE. Its core businesses are long and short-term insurance, asset management,
savings, investment, healthcare administration and employee benefits.
- Actom Proprietary Limited ("Actom") – 18.6% shareholding. Actom is the largest manufacturer, repairer
and distributor of electro-mechanical equipment and turnkey solutions in Southern Africa.
- Exxaro Resources Limited ("Exxaro") – 4.2% shareholding owned through a BEE structure. Exxaro is a
South African-based mining group, listed on the JSE with a diverse and world-class commodity portfolio in
coal, mineral sands, base metals and industrial minerals, including exposure to iron ore. As the second-
largest South African coal producer with capacity of 45 million tonnes per annum and the third-largest
global producer of mineral sands, Exxaro is a significant participant in the coal and mineral sands markets
and provides a unique listed investment opportunity into these commodities.
- Idwala Industrial Holdings Proprietary Limited ("Idwala") – 30.5% shareholding. Idwala is a company
focused on mining, processing, distribution and sales of lime and industrial minerals. It exploits a scarce
and unique white calcitic and dolomitic limestone deposit in the Port Shepstone area of KwaZulu-Natal.
The Company's shares are currently suspended on AIM and the JSE. An announcement shall be made within the next
few days as to the timelines of when the suspension from AIM and the JSE shall be lifted.
Andrew Bonamour
Non-executive Director
24 April 2015
Annexure A
Intrinsic NAV as at 31 December 2014
Unaudited Unaudited
31 December 31 December
2014 2014
R'000 GBP'000
Times Media Group Limited 1,006,381 55,908
Consolidated Steel Industries Proprietary Limited 357,000 19,833
Robor Proprietary Limited 80,000 4,444
Blackstar Real Estate Proprietary Limited and the property subsidiaries 65,324 3,629
Blackstar Special Opportunities Fund 49,014 2,723
Cadiz Holdings Limited 20,813 1,156
Other listed investments 22,634 1,257
Other unlisted investments 24,605 1,367
Net assets of consolidated companies 5,590 311
Cash and cash equivalents 44,050 2,447
Access facility (72,673) (4,037)
Intrinsic NAV 1,602,738 89,038
Actual number of shares in issue net of treasury shares held ('000) 83,099 83,099
Intrinsic NAV per share (in Rands/Pounds Sterling) 19.29 1.07
Ordinary share price on 31 December 2014 (in Rands/Pounds Sterling) 11.85 0.67
Ordinary share price discount to Intrinsic NAV 39% 38%
Notes:
1. The Intrinsic NAV provides a measure of the underlying value of the Group's assets and does not indicate when the investments will
be realised, nor does it guarantee the value at which the investments will be realised.
2. For the purposes of determining the intrinsic values, listed investments on recognised stock exchanges (other than TMG) are valued
using quoted bid prices and unlisted investments are shown at Directors' valuation, determined using the discounted cash flow
methodology. This methodology uses reasonable assumptions and estimations of cash flows and terminal values, and applies an
appropriate risk-adjusted discount rate that quantifies the investment's inherent risk to calculate a present value. Given the
subjective nature of valuations, the Group is cautious and conservative in determining the valuations and has a track record of
selling its unlisted investments in the ordinary course of business above the levels at which it values them. The investment in TMG
is calculated based on a share price of R24.50 per share representing the value ascribed to a TMG share per the Scheme of
Arrangement.
3. All amounts have been translated using the closing exchange rates at 31 December 2014. The ZAR/GBP closing exchange rate at
31 December 2014 was 18.001.
4. Other unlisted include investments in Blackstar Fund Managers Proprietary Limited, Navigare Securities Proprietary Limited, New
Bond Capital Limited and the loan to CCPA Properties Proprietary Limited.
5. The ordinary share price is the actual share price reflected on the JSE and the London Stock Exchange ("LSE") at 31 December
2014, being the closing share price on 8 December 2014 when the share was suspended from trade.
Annexure B
Adjusted Intrinsic NAV as at 31 December 2014 post the Acquisitions
Annexure B includes the 31 December 2014 Intrinsic NAV adjustment to incorporate the Acquisitions, as if they had been completed on that date reflecting both the investment in TMG and KTH at fair value. This can be used by Shareholders in assessing the impact of these Acquisitions and in determining the estimated Blackstar Intrinsic NAV post implementation of the Acquisitions.
Unaudited Unaudited
31 December 2014 31 December 2014
R'000 GBP'000
Times Media Group Limited * 2,598,525 144,357
Kagiso Tiso Holdings Proprietary Limited ^ 1,858,977 103,272
Consolidated Steel Industries Proprietary Limited 357,000 19,833
Robor Proprietary Limited 80,000 4,444
Blackstar Real Estate Proprietary Limited and the property subsidiaries 65,324 3,629
Blackstar Special Opportunities Fund 49,014 2,723
Cadiz Holdings Limited 20,813 1,156
Other listed investments 22,634 1,257
Other unlisted investments 24,605 1,367
Net assets of consolidated companies 5,590 311
Cash and cash equivalents 10,315 573
Term debt (559,750) (31,096)
Access facility - -
Intrinsic NAV 4,533,047 251,826
Actual number of shares in issue net of treasury shares held ('000) 266,660 266,660
Intrinsic NAV per share (in Rands/Pounds Sterling) 17.00 0.94
Ordinary share price on 31 December 2014 (in Rands/Pounds Sterling) 11.85 0.67
Ordinary share price discount to Adjusted Intrinsic NAV 30% 29%
Notes:
* The investment in TMG has been reflected at fair value calculated based on a share price of R24.50 per share representing the value ascribed to a TMG share per the TMG Scheme.
^ The fair value of the investment in KTH has been determined based on the most recent available KTH Intrinsic NAV. A discount of 16.5% has been applied to the KTH Intrinsic NAV to take into account head office costs and potential CGT liability on assets that may be realised.
1. The Intrinsic NAV provides a measure of the underlying value of the Group's assets and does not indicate when the investments will be realised, nor does it guarantee the value at which the investments will be realised.
2. For the purposes of determining the intrinsic values, listed investments on recognised stock exchanges (other than TMG) are valued using quoted bid prices and unlisted investments are shown at Directors' valuation, determined using the discounted cash flow methodology. This methodology uses reasonable assumptions and estimations of cash flows and terminal values, and applies an appropriate risk-adjusted discount rate that quantifies the investment's inherent risk to calculate a present value. Given the subjective nature of valuations, the Group is cautious and conservative in determining the valuations and has a track record of selling its unlisted investments in the ordinary course of business above the levels at which it values them.
3. All amounts have been translated using the closing exchange rates at 31 December 2014. The ZAR/GBP closing exchange rate at 31 December 2014 was 18.001.
4. Other unlisted include investments in Blackstar Fund Managers Proprietary Limited, Navigare Securities Proprietary Limited, New Bond Capital Limited and the loan to CCPA Properties Proprietary Limited.
5. The ordinary share price is the actual share price reflected on the JSE and the LSE at 31 December 2014, being the
closing share price on 8 December 2014 when the share was suspended from trade.
Consolidated statement of comprehensive income
for the year ended 31 December 2014
2013 2014 2014 2013
R'000 R'000 GBP'000 GBP'000
261,025 245,289 Income 13,737 17,287
(76,541) (92,172) Operating expenses (5,162) (5,070)
184,484 153,117 Operating profit 8,575 12,217
(208) (7,266) Net finance costs (407) (14)
3,156 1,458 Finance income 82 209
(3,364) (8,724) Finance costs (489) (223)
184,276 145,851 Profit before taxation 8,168 12,203
222 137 Taxation 8 15
184,498 145,988 Profit for the year 8,176 12,218
Other comprehensive income/(loss) - items
that may subsequently be reclassified to profit and loss:
Currency translation differences on the translation of
- - Rand denominated Group entities (2,431) (20,297)
- - Release of foreign currency translation reserve - 1,425
Total other comprehensive loss
- - recognised directly in equity (2,431) (18,872)
184,498 145,988 Total comprehensive income/(loss) for the year 5,745 (6,654)
Profit for the year attributable to:
183,857 146,584 Equity holders of the parent 8,210 12,175
641 (596) Non controlling interests (34) 43
184,498 145,988 8,176 12,218
Total comprehensive income/(loss) attributable to:
183,857 146,584 Equity holders of the parent 5,779 (6,697)
641 (596) Non controlling interests (34) 43
184,498 145,988 5,745 (6,654)
Basic and diluted earnings per ordinary share
231.34 181.77 attributable to equity holders (in cents/pence) 10.18 15.32
Weighted average number of shares (net of
79,476 80,642 treasury shares, in thousands) 80,642 79,476
Basic and diluted headline earnings per share^
2013 2014 2014 2013
R'000 R'000 GBP'000 GBP'000
183,857 146,584 Profit for the period attributable to equity holders of the parent 8,210 12,175
Adjusted for:
(5) - Profit on disposal of equipment - -
1 - Total tax effects of adjustments - -
183,853 146,584 Headline earnings 8,210 12,175
Basic and diluted headline earnings per ordinary share
231.33 181.77 attributable to equity holders (in cents/pence) 10.18 15.32
^ Disclosure of headline earnings has been provided in accordance with the JSE Listings Requirements.
Consolidated statement of changes in equity
for the year ended 31 December 2014
Capital Treasury Non
Share redemption shares Retained Attributable to controlling
Share capital premium reserve reserve earnings equity holders interests Total equity
R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
Balance as at 1 January 2013 574,671 22,125 52,173 - 499,956 1,148,925 (294) 1,148,631
Total comprehensive income for the year - - - - 183,857 183,857 641 184,498
Income for the year - - - - 183,857 183,857 641 184,498
Other comprehensive income for the year - - - - - - - -
Purchase of treasury shares - - - (89,910) - (89,910) - (89,910)
Effect of share split and consolidation 1 (1) - (2,499) - (2,499) - (2,499)
Treasury shares issued to acquire NBC - (447) - 64,347 - 63,900 - 63,900
Reduction in non controlling interests arising on
acquisition of further shares in BFM - - - - (123) (123) 18 (105)
Equity settled share based payment - - - - 20,287 20,287 - 20,287
Treasury shares issued during the year as part of
the long term Management Incentive Scheme - (209) - 9,214 (9,005) - - -
Dividend paid - - - - (20,871) (20,871) - (20,871)
Balance as at 31 December 2013 574,672 21,468 52,173 (18,848) 674,101 1,303,566 365 1,303,931
Total comprehensive income/(loss) for the year - - - - 146,584 146,584 (596) 145,988
Income/(loss) for the year - - - - 146,584 146,584 (596) 145,988
Other comprehensive income for the year - - - - - - - -
Purchase of treasury shares - - - (20,449) - (20,449) - (20,449)
Reduction in non controlling interests arising on
acquisition of further shares in BFM - - - - (175) (175) 25 (150)
Equity settled share based payment - - - - 32,730 32,730 - 32,730
Treasury shares issued for property acquisition - 240 - 6,360 - 6,600 - 6,600
Treasury shares issued during the year as part of
the long term Management Incentive Scheme - 1,435 - 23,653 (25,088) - - -
Dividend paid - - - - (18,464) (18,464) - (18,464)
Balance as at 31 December 2014 574,672 23,143 52,173 (9,284) 809,688 1,450,392 (206) 1,450,186
Foreign
Currency
Capital Treasury Translation Attributable Non
Share redemption shares Reserve Retained to equity controlling
Share capital premium reserve reserve (FCTR) earnings holders interests Total equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance as at 1 January 2013 55,347 1,974 4,599 - (6,034) 27,529 83,415 (22) 83,393
Total comprehensive income/(loss) for the
year - - - - (20,297) 13,600 (6,697) 43 (6,654)
Income for the year - - - - - 12,175 12,175 43 12,218
Other comprehensive income/(loss) for
the year - - - - (20,297) 1,425 (18,872) - (18,872)
Purchase of treasury shares - - - (5,955) - - (5,955) - (5,955)
Effect of share split and consolidation - - - (166) - - (166) - (166)
Treasury shares issued to acquire NBC - (30) - 4,262 - - 4,232 - 4,232
Reduction in non controlling interests
arising on acquisition of further shares in
BFM - - - - - (9) (9) 1 (8)
Equity settled share based payment - - - - - 1,344 1,344 - 1,344
Treasury shares issued during the year as
part of the long term Management
Incentive Scheme - (14) - 611 - (597) - - -
Dividend paid - - - - - (1,382) (1,382) - (1,382)
Balance as at 31 December 2013 55,347 1,930 4,599 (1,248) (26,331) 40,485 74,782 22 74,804
Total comprehensive income/(loss) for the
year - - - - (2,431) 8,210 5,779 (34) 5,745
Income/(loss) for the year - - - - - 8,210 8,210 (34) 8,176
Other comprehensive loss for the year - - - - (2,431) - (2,431) - (2,431)
Purchase of treasury shares - - - (1,147) - - (1,147) - (1,147)
Reduction in non controlling interests
arising on acquisition of further shares in
BFM - - - - - (10) (10) 1 (9)
Equity settled share based payment - - - - - 1,833 1,833 - 1,833
Treasury shares issued for property
acquisition - 14 - 357 - - 371 - 371
Treasury shares issued during the year as
part of the long term Management
Incentive Scheme - 80 - 1,325 - (1,405) - - -
Dividend paid - - - - - (1,034) (1,034) - (1,034)
Balance as at 31 December 2014 55,347 2,024 4,599 (713) (28,762) 48,079 80,574 (11) 80,563
A 2013 interim dividend of 8 South African cents, 0.50 pence per ordinary share was paid on 22 November 2013.
A 2013 final dividend of 14 South African cents, 0.80 pence, per ordinary share was paid on 30 May 2014.
A 2014 interim dividend of 9 South African cents, 0.49 pence per ordinary share was paid on 10 November 2014.
A 2014 final dividend of 14 South African cents, 0.77 pence, per ordinary share, has been proposed, to be paid on 8 June 2015.
Consolidated statement of financial position
as at 31 December 2014
31 December 31 December 31 December 31 December
2013 2014 2014 2013
R'000 R'000 GBP'000 GBP'000
Assets
875 875 Goodwill 49 51
1,524 2,777 Deferred tax assets 154 87
1,364 1,189 Equipment 66 78
Financial assets at fair value through profit
1,180,472 1,467,639 and loss 81,532 67,721
312,014 468,218 Net investments in subsidiaries 26,011 17,899
677,138 867,612 Net investments in associates 48,199 38,846
191,320 131,809 Financial assets held for trading 7,322 10,976
Investments classified as loans and
8,174 7,888 receivables 438 469
188 155 Current tax assets 9 12
4,065 1,923 Trade and other receivables 107 233
122,893 63,020 Cash and cash equivalents 3,501 7,050
1,319,555 1,545,466 Total assets 85,856 75,701
Liabilities
(60) (55) Deferred tax liabilities (3) (3)
(201) (15) Other financial liabilities (1) (12)
- (72,673) Borrowings (4,037) -
(469) - Current tax liabilities - (28)
(14,890) (22,537) Trade and other payables (1,252) (854)
(4) - Bank overdrafts - -
(15,624) (95,280) Total liabilities (5,293) (897)
1,303,931 1,450,186 Total net assets 80,563 74,804
Equity
574,672 574,672 Share Capital 55,347 55,347
21,468 23,143 Share premium 2,024 1,930
52,173 52,173 Capital redemption reserve 4,599 4,599
(18,848) (9,284) Treasury shares reserve (713) (1,248)
- - Foreign currency translation reserve (28,762) (26,331)
674,101 809,688 Retained earnings 48,079 40,485
Total equity attributable to equity
1,303,566 1,450,392 holders 80,574 74,782
365 (206) Non controlling interests (11) 22
1,303,931 1,450,186 Total equity 80,563 74,804
Net asset value per share (in
1,620 1,784 cents/pence) 99 93
Actual number of shares in issue (net
80,447 81,297 of treasury shares) 81,297 80,447
Consolidated statement of cash flows
for the year ended 31 December 2014
2013 2014 2014 2013
R'000 R'000 GBP'000 GBP'000
Cash flow from operating activities
(164,195) (116,491) Cash absorbed by operations (6,124) (10,728)
61,450 31,782 Dividend and interest income received 1,380 4,069
3,156 1,458 Finance income received 82 209
(3,364) (8,724) Finance costs paid (489) (223)
- 30 Taxation refunded 2 -
(906) (1,502) Taxation paid (83) (58)
(103,859) (93,447) Cash absorbed by operating activities (5,232) (6,731)
Cash flow from investing activities
(599) (32) Purchase of equipment (2) (40)
172 - Proceeds on disposal of equipment - 11
(105) (150) Acquisition of subsidiaries, net of cash acquired (8) (8)
(532) (182) Cash absorbed by investing activities (10) (37)
Cash flow from financing activities
(127) 72,673 Movement in borrowings 4,070 (8)
Acquisition of Blackstar shares as a result of the
(2,499) - share split and consolidation - (166)
(89,910) (20,449) Purchase of treasury shares (1,147) (5,955)
(20,871) (18,464) Dividends paid to equity holders of the parent (1,034) (1,382)
Cash generated/(absorbed) by financing
(113,407) 33,760 activities 1,889 (7,511)
(217,798) (59,869) Net decrease in cash and cash equivalents (3,353) (14,279)
Cash and cash equivalents at the beginning of
340,687 122,889 the year 7,050 24,735
- - Exchange losses on cash and cash equivalents (196) (3,406)
Cash and cash equivalents at the end of the
122,889 63,020 year 3,501 7,050
Notes to the consolidated financial statements
for the year ended 31 December 2014
1. Financial information
The financial information set out above does not constitute the Company's statutory accounts for the year ended
31 December 2014 or 2013 as defined in section 171 of the Malta Companies Act 1995. Statutory accounts for
the year ended 31 December 2014 will be delivered to the Malta Registrar of Companies following the
Company's annual general meeting. The auditors have reported on those accounts, their reports were unqualified
and did not include references to any matters to which the auditors drew attention by way of emphasis without
qualifying their reports. Their reports for the year ended 31 December 2014 and 31 December 2013 did not
contain statements under s149 paragraph (10), (11), (12) of the Malta Companies Act 1995.
The functional currency of the Company is the South African Rand, being the currency of the primary economic
environment in which the Company and its subsidiaries operate.
Blackstar is dual listed with a primary listing on the AIM market of the London Stock Exchange ("AIM") and a
secondary listing on the AltX of the JSE Limited ("JSE") in South Africa. As a result, Blackstar has two
presentational currencies being South African Rand ("Rands") and Pounds Sterling ("Pounds Sterling").
2. Distribution of the annual report and accounts to shareholders
The Group's audited statutory accounts for the year ended 31 December 2014 will be available shortly to
shareholders via the Company's website www.blackstar.eu.
24 April 2015
For further information, please contact:
Blackstar Group SE Leanna Isaac +356 2137 3360
ZAI Corporate Finance Limited Tom Price +44 020 3167 2820
PSG Capital (Pty) Limited David Tosi +27(0) 21 887 9602
Date: 24/04/2015 08:00:00 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 
