Wrap Text
Summarised report relating to the audited financial results for the year ended 31 March 2015 and Notice of AGM
Nictus Limited
(Incorporated in the Republic of South Africa)
(Registration number 81/011858/06)
JSE Share code: NCS
ISIN Code NA0009123481
(“Nictus” or “the Company” or the “Group”)
Summarised report relating to the audited financial results for
the year ended 31 March 2015 and details of the notice of the
annual general meeting
Summarised consolidated statement of financial position
at 31 March 2015
Figures in R’000 Restated* Restated*
2015 2014 2013
Assets
Property, plant and equipment 17 294 16 997 17 681
Intangible assets 588 573 –
Investments 38 629 32 883 26 058
Deferred tax assets 2 426 2 460 3 124
Loans and receivables 6 203 5 723 10 944
Non-current assets 65 140 58 636 57 807
Inventories 8 746 8 408 10 674
Loans and receivables 39 281 18 802 –
Trade and other receivables 197 916 155 577 145 070
Investments 131 881 60 472 34 183
Cash and cash equivalents 58 116 131 814 86 275
Current assets 435 940 375 073 276 202
Total assets 501 080 433 709 334 009
Equity and liabilities
Stated capital 48 668 48 668 48 668
Revaluation reserve 8 170 8 170 5 905
Retained earnings 31 577 24 753 21 476
Equity 88 415 81 591 76 049
Liabilities
Deferred tax liabilities 2 384 2 506 5 045
Non-current liabilities 2 384 2 506 5 045
Trade and other payables 12 212 10 692 7 733
Insurance contract liability 398 069 338 920 244 698
Provisions – – 484
Current liabilities 410 281 349 612 252 915
Total liabilities 412 665 352 118 257 960
Total equity and liabilities 501 080 433 709 334 009
*For further details refer to note 39 on page 113 of the full integrated
annual report available on our website at www.nictuslimited.co.za.
Summarised consolidated statement of comprehensive income
for the year ended 31 March 2015
Figures in R’000 2015 2014
Revenue 55 932 48 757
Cost of sales (21 722) (20 685)
Gross profit 34 210 28 072
Other income 2 328 2 285
Operating expenses (46 327) (37 541)
Investment income from operations 28 796 18 557
Administrative expenses (15 308) (11 110)
Results from operating activities 3 699 263
Investment income 3 037 3 405
Finance expenses – (1)
Profit before taxation 6 736 3 667
Taxation credit/(expense) 88 (653)
Profit for the year 6 824 3 014
Other comprehensive income:
Items that will never be
reclassified to profit or loss
Taxation related to components of
other comprehensive income – 263
Total comprehensive income for the year 6 824 3 277
Profit attributable to:
Owners of the parent 6 824 3 014
Total comprehensive income attributable to:
Owners of the parent 6 824 3 277
Basic earnings per share (cents) 10,30 4,55
Diluted basic earnings per share (cents) 10,30 4,55
Headlines earnings per share (cents) 10,30 4,55
Diluted headlines earnings per share (cents) 10,30 4,55
Summarised consolidated statement of cash flows
for the year ended 31 March 2015
Figures in R’000 2015 2014
Cash flows from operating activities
Cash (utilised by)/generated from operations (7 130) 70 647
Investment income received from operations 23 723 17 233
Dividends received 1 339 1 324
Finance expenses paid – (1)
Net cash generated from operating activities 17 932 89 203
Cash flows from investing activities
Acquisition of property, plant and equipment (582) (11)
Proceeds on sale of property, plant and equipment – 210
Acquisition of intangible assets (185) (573)
Acquisition of investments (4 204) (6 825)
Proceeds from disposal of investments 2 192 –
Investment income received 3 037 3 405
Short-term funds invested (71 409) (26 289)
Related parties loans advanced (20 479) (14 627)
Loans and receivables advanced – 1 046
Net cash utilised by investing activities (91 630) (43 664)
Cash movement for the year (73 698) 45 539
Cash and cash equivalents at the beginning
of the year 131 814 86 275
Cash and cash equivalents at the end
of the year 58 116 131 814
Summarised consolidated statement of changes in equity
for the year ended 31 March 2015
Re-
Stated valuation Retained Total
Figures in R’000 capital reserve earnings equity
Balance at 1 April 2013 48 668 5 905 21 476 76 049
Total comprehensive income
for the year
Profit for the year – – 3 014 3 014
Other comprehensive income
Taxation adjustments to
revaluation of properties – – 263 263
Total comprehensive income for
the year – – 3 277 3 277
Transfers to reserves
Adjustments to revaluation
reserve – 2 265 – 2 265
Balance at 31 March 2014 48 668 8 170 24 753 81 591
Total comprehensive income
for the year
Profit for the year – – 6 824 6 824
Total comprehensive income
for the year – – 6 824 6 824
Balance at 31 March 2015 48 668 8 170 31 577 88 415
Summarised segmental report
for the year ended 31 March 2015
Figures in R’000 2015 2014
Segment assets
Furniture retail 63 782 50 429
Insurance and finance 469 363 413 126
Subtotal 533 145 463 555
Head office and eliminations (32 065) (29 846)
Total segment assets 501 080 433 709
Segment revenue
Furniture retail 37 717 36 573
Insurance and finance 19 818 13 460
Subtotal 57 535 50 033
Head office and eliminations (1 603) (1 276)
Total segment revenue 55 932 48 757
Net profit/(loss) for the year
Furniture retail (764) (806)
Insurance and finance 4 564 5 040
Subtotal 3 800 4 234
Head office and eliminations 3 024 (1 220)
Total net profit / (loss) for the year 6 824 3 014
Accounting policies
Basis of preparation
These summarised consolidated financial statements for the year ended
31 March 2015 (“Summarised Financial Statements”) are prepared in
accordance with the requirements of the JSE Limited (“JSE”) Listings
Requirements (“Listings Requirements”), and the requirements of the
Companies Act (71 of 2008), as amended (“Companies Act”) applicable to
summarised financial statements.
The Summarised Financial Statements are prepared in accordance with
the framework concepts and the measurement and recognition
requirements of International Financial Reporting Standards (IFRS)
and the SAICA Financial Reporting Guides as issued by the Accounting
Practices Committee and financial pronouncements as issued by the
Financial Reporting Standards Council and, at a minimum, contain the
information required by IAS 34 Interim Financial Reporting. The
accounting policies applied in the preparation of the consolidated
financial statements from which the Summarised Financial Statements
were derived are in terms of International Financial Reporting
Standards and are consistent with those accounting policies applied
in the preparation of the previous consolidated financial statements.
Mr. Eckhart H Prozesky (financial director, CA (SA)) was responsible
for supervising the preparation of the Summarised Financial Statements.
This announcement does not include the information required pursuant
to paragraph 16A(j) of IAS 34.
The Summarised Financial Statements are available on our website, at
our registered office and upon request.
The new standards and interpretations adopted during the period under
review had no material impact on the Group.
Related parties
The Company has related party relationships with its subsidiaries,
fellow subsidiaries, associates and with its directors and executive
officers.
Reconciliation between earnings and headline earnings
for the year ended 31 March 2015
Figures in R’000 2015 2014
Profit for the year 6 824 3 014
Adjustments for:
Profit on disposal of property,
plant and equipment - (12)
Headline earnings 6 824 3 002
Responsibility for consolidated financial statements
The consolidated financial statements for the year ended
31 March 2015 (“Audited Financial Statements”) have been audited
by KPMG Inc., and their unqualified audit opinion is available
for inspection at the registered office of the Company.
The Summarised Financial Statements have been extracted from
the Audited Financial Statements, but are not itself audited. The
directors of Nictus are solely responsible for the preparation of the
Summarised Financial Statements and for its correct extraction from
the underlying Audited Financial Statements.
Subsequent events
There were no events after the reporting date and up to the date of
approval of these financial statements that affected the presentation
of the consolidated financial statements for the year ended
31 March 2015, other than what was reported with regards to the
reportable irregularity and that a dividend of 3 cents per share was
declared by the directors subsequent to year end, payable to
shareholders registered on 24 July 2015.
Chairman’s report - BJ Willemse - Nictus Group
I am pleased to report that the past year signals a return to strong
growth in profit. A strong emphasis on “business conducted with
integrity” excites me.
Strategic goals were aligned across the diversified holdings of the
Group and management structures were put in place to support the
implementation thereof. I believe we are geared to carry the momentum
into the new financial year to ensure growth and profits, and to
resume with our dividend payments in accordance with our historical
track record.
Continuous changes in the regulatory environment, especially in the
insurance industry, continues to challenge resources and the cost
impact thereof is notable. Nevertheless, we remain committed to good
corporate governance as an assurance to the best interests of our
clients, shareholders and personnel.
We operate in an environment where onslaughts on business integrity
and even professional integrity by opportunists are a brutal reality.
The board and management team are very firm in our approach to
conducting business in an ethical manner. This is, and will remain, a
position of no compromise. We believe that we have our stakeholders’
full support in this regard.
The furniture retail returned to profitability and we are confident
that this upward trend is sustainable.
The industry has been tumultuously rocked the past year or two and we
are proud to have had stabilising structures in place to endure the
difficult period. We will continue to build the Nictus brand and
serve our customers.
The insurance market is evolving rapidly, driven by new regulatory
and capital requirements. A renewed focus on capital and investment
management has served us well and we remain proactive in our
adherence to the regulatory requirements, as well as the anticipated
developments therein. The focus will remain on a niche segment of the
market, with selected clients that can benefit through Corporate
Guarantee’s alternative risk transfer mechanisms, designed to assist
an appetite for own-risk management.
We remain well positioned and, with a new and energetic management
team, are optimistic that the business will continue to grow and
serve all stakeholders well in the long run.
Succession planning remains at the pinnacle of the board’s priority
list. Talent pools are developed on an ongoing basis to stimulate our
philosophy of promotion from within. In corroboration thereof, the
position of deputy managing director has been created to allow for
Mr Gerard Tromp to gain the necessary exposure to take over the reins
from the current managing director, Mr Nicolaas C Tromp. Furthermore,
Mr Eckhart H Prozesky has been appointed the financial director
following the resignation of Mr Frank M Theart.
I want to pay tribute to Mr Nicolaas C Tromp for his integrity and
ethical business values installed in the Group. We know this will be
the foundation upon which the business will continue to build, going
forward. The management and other personnel of the Group and subsidiary
companies are all willing to walk the extra mile in our future journey
to serve customers and deliver sustainable growth to shareholders; for
that I thank them profoundly.
Lastly, I want to thank my fellow board members for their strong
guidance and support on our journey to continue to build the business
for the future benefit of all stakeholders.
Group managing director’s report - NC Tromp - Nictus Group
I am pleased to announce that the current board’s more focused
approach resulted in a 126% growth in our net profit.
The continued discipline in the board’s corporate and commercial
approach propelled certain restructurings within the Group.
Overview
Mr Gerard R de V Tromp (CA (SA), CA (Namibia)), also the managing
director of the furniture segment, has been appointed as the deputy
managing director of the Group, confirming the board’s commitment to
succession planning. With the added responsibilities entrusted to
Mr Gerard Tromp, Mr Ruaan Smith (MBA), formerly the chief financial
officer of the Nictus furniture segment in Namibia, has been
appointed chief executive officer of the furniture segment.
Mr Eckhart H Prozesky (CA (SA)), the former financial manager of the
furniture segment, has been appointed the financial director of the
Group. Mr Morné Louwrens (CA (SA), CA (Namibia)), director of
Corporate Guarantee and Insurance Company of Namibia Limited, has
been appointed chief executive officer of the insurance and finance
segment. These appointments followed the resignations of respectively
the former Group financial director and managing director of the
insurance and finance segment. The litigation statement in the notice
to the annual general meeting reports fully hereon.
The main focus of activities remains in Gauteng and the Cape provinces,
with a strong drive to yield a sustainable, above average return for
all stakeholders of the Group over the medium to long term.
Segmental performance
Nictus continues to implement its vision of being an independent and
diversified investment holding company. The investments in the
short-term insurance and furniture retail sectors remain the key
focus areas for the execution of this vision.
Furniture segment
I am grateful to report that the hard work in the furniture segment
has resulted in restored profitability during the year under review.
We are excited to carry this momentum forward into the coming year.
Insurance and finance segment
The Insurance and finance segment has grown satisfactorily in assets,
revenue and profitability, with sustainable growth and client
relations being the key focus points of the new management team.
Corporate governance
Nictus is committed to the highest standard of corporate governance.
In our opinion, good corporate governance cannot be dictated only by
a set of rules and regulations, but must be driven by the moral
convictions of the persons implementing them.
The Group endorses the King III Code of Corporate Governance
Principles, the International Financial Reporting Standards (IFRS)
and Integrated Reporting, whilst it complies with the Companies Act
of South Africa, and the JSE Listings Requirements.
We further acknowledge our responsibility to ensure that business
within the Group is conducted with transparency, prudence, fairness,
accountability and integrity.
Outlook
The coming year will see a continued investment in development of
management and related structures. Our expectation is that this
consolidation action will require at least another year to yield full
potential. I firmly believe that this restructuring has and will
continue to pave the way for the Group to flourish in the years to
come.
Our expectation is that both the furniture retail and insurance and
finance segments will maintain growth in profits, and that the
respective new and energetic management teams will produce
satisfactory results in the coming year. We are confident that the
overall growth of the Group will be positive for the coming year.
Appreciation
I would like to express my gratitude for the dedication and
contribution of the chairman and the members of the board, management
and staff for their support and commitment towards and the firm
belief in the strategic direction of the Group.
On behalf of the Group, I would like to reaffirm our commitment to
serving our customers and would like to thank them, together with all
our stakeholders, for their continued loyalty and support.
Above all I am humbled by the grace and thankful for the guidance of
God Almighty.
Integrated report and notice of annual general meeting
The Integrated Report contains a notice convening the annual general
meeting of Nictus shareholders for the year ended 31 March 2015 ("the
AGM"). The AGM will be held in the boardroom at the Nictus Building,
corner of Pretoria and Dover Street, Randburg, Gauteng on Thursday
20 August 2015 at 12h00.
The notice of AGM and a summarised version of the Audited Financial
Statements, are to be posted to Nictus shareholders on Tuesday,
30 June 2015. The integrated report is available on the website
www.nictuslimited.co.za.
B J Willemse
Chairman
30 June 2015
Sponsor on the JSE: KPMG Services Proprietary Limited
Registered office of the Company
Head office:1st Floor, Nictus Building
Corner of Pretoria and Dover Street, Randburg
PO Box 2878, Randburg 2125
Windhoek office: 3rd floor, Corporate House
17 Lüderitz Street, Windhoek
Private Bag 13231, Windhoek
Company secretary: Veritas Board of Executors Proprietary Limited
(Registration number 1984/007487/07)
1st Floor, Nictus Building
Corner of Pretoria and Dover Street, Randburg
PO Box 2878, Randburg 2125
Auditors: KPMG Inc.
(Registration number 1999/021543/21)
KPMG Crescent
85 Empire Road, Parktown 2193
Private Bag 9, Parktown 2122
Date: 30/06/2015 08:49:00 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 
