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Consolidated Unaudited Interim Results for the Six Months Ended 31 August 2015
Adrenna Property Group Limited
(Incorporated in the Republic of South Africa) (Registration number 1998/012245/06)
(JSE share code: ANA ISIN: ZAE000163580)
CONSOLIDATED UNAUDITED INTERIM RESULTS
FOR THE SIX MONTHS ENDED 31 AUGUST 2015
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
Six months Six months 12 months
ended ended ended
31 August 2015 31 August 2014 28 February 2015
R'000 R'000 R'000
(unaudited) (unaudited) (audited)
Revenue 11 224 14 062 26 228
Cost of sales – (2 881) (4 322)
Gross profit 11 224 11 181 21 906
Operating income before interest and revaluations 5 893 4 853 10 310
Fair value adjustment on investment properties – – 5 650
Investment income 98 229 253
Finance costs (3 064) (3 344) (6 549)
Net income before taxation 2 927 1 738 9 664
Taxation (381) (492) (2 443)
Income after taxation for the period 2 546 1 246 7 221
Non–controlling interest – – –
Income attributable to ordinary shareholders 2 546 1 246 7 221
Total net profit 2 546 1 246 7 221
Other comprehensive income – – –
Total comprehensive income attributable to:
– Ordinary shareholders 2 546 1 246 7 221
– Non–controlling interests – – –
2 546 1 246 7 221
CONDENSED STATEMENT OF FINANCIAL POSITION
31 August 2015 31 August 2014 28 February 2015
R'000 R'000 R'000
(unaudited) (unaudited) (audited)
ASSETS
Non–current assets
Property, plant and equipment – 72 –
Investment properties 212 141 206 491 212 141
Loans owing by third parties 6 580 404 –
Operating lease assets 5 586 5 678 5 586
Deferred taxation 3 713 4 292 4 073
228 020 216 937 221 800
Current assets
Loans owing by third parties 1 305 232 –
Inventory 1 430 2 871 1 430
Accounts receivable 1 205 1 380 1 364
Operating lease assets 1 658 1 708 1 658
Current taxation receivable 433 156 732
Cash and cash equivalents 122 33 169
6 153 6 380 5 353
Total assets 234 173 223 317 227 153
EQUITY AND LIABILITIES
Equity
Stated capital and reserves 120 116 111 595 117 570
Non–current liabilities
Borrowings 68 104 66 072 62 800
Deferred tax 29 737 27 983 29 866
97 841 94 055 92 666
Current liabilities
Current portion of borrowings 7 889 7 462 7 015
Loans owing to third parties 409 406 406
Accounts payable 1 063 1 942 2 100
Taxation payable 138 – 232
Bank overdraft 6 717 7 857 7 164
16 216 17 667 16 917
Total equity and liabilities 234 173 223 317 227 153
CONDENSED STATEMENT OF CASH FLOWS
Six months Six months 12 months
ended ended ended
31 August 2015 31 August 2014 28 February 2015
R'000 R'000 R'000
(unaudited) (unaudited) (audited)
Cash generated by operations 4 848 2 251 6 109
Cash flows from investing activities (7 800) 6 528 7 218
Cash flows from financing activities 3 352 (6 705) (10 424)
Movement in cash and cash equivalents 400 2 074 2 903
Cash and cash equivalents at the beginning of the period (6 995) (9 898) (9 898)
Cash and cash equivalents at the end of the period (6 595) (7 824) (6 995)
CONDENSED STATEMENT OF CHANGES IN EQUITY
31 August 2015 31 August 2014 28 February 2015
R'000 R'000 R'000
(unaudited) (unaudited) (audited)
STATED CAPITAL
Ordinary stated capital 567 567 567
RESERVES
Retained earnings
Balance at beginning of period 117 003 109 782 109 782
Comprehensive income attributable to ordinary shareholders 2 546 1 246 7 221
Balance at the end of the period 119 549 111 028 117 003
Total reserves attributable to:
Ordinary shareholders 119 549 111 028 117 003
Non–controlling interests – – –
Total reserves 119 549 111 028 117 003
Total equity and reserves 120 116 111 595 117 570
SUPPLEMENTARY INFORMATION
31 August 2015 31 August 2014 28 February 2015
(unaudited) (unaudited) (audited)
Number of ordinary shares in issue at the beginning of the period
('000) 55 915 55 915 55 915
Number of ordinary shares in issue at the end of the period ('000) 55 915 55 915 55 915
Weighted average number of shares in issue during the
period ('000) 55 915 55 915 55 915
Basic earnings:
Net profit per condensed statement of comprehensive income 2 546 1 246 7 221
Basic earnings per share (cents) 4,6 2,23 12,9
Headline earnings:
Net profit per condensed statement of comprehensive income 2 546 1 246 7 221
Profit on sale of investment property – – 18
Revaluation of investment property (net of taxation) – – (3 485)
Headline earnings 2 546 1 246 3 754
Headline earnings per share (cents) 4,6 2,23 6,7
Dividends per share (cents) – – –
Net asset value per share (cents) 214,8 199,6 210,3
Tangible net asset value per share (cents) 214,8 199,6 210,3
NOTES
BASIS OF PREPARATION
These condensed consolidated financial statements have been prepared in accordance with IAS 34: Interim Financial
Reporting, the requirements of the Companies Act, No. 71 of 2008 and the Listings Requirements of the Johannesburg Stock
Exchange. The unaudited condensed consolidated results have been prepared on the going concern basis as the directors
are of the view that the group has adequate resources in place to continue in operation for the foreseeable future. The
accounting policies applied are in compliance with International Financial Reporting Standards and the SAICA Financial
Reporting Guides (formerly the AC 500 Standards) as issued by the Accounting Practices Committee and its successor and
are consistent with those applied in the most recent annual financial statements. These results were prepared by the Financial
Director, Mr H Beukes. These results have not been reviewed or audited.
CONDENSED SEGMENT RESULTS
Six months Six months 12 months
ended ended ended
31 August 2015 31 August 2014 28 February 2015
R'000 R'000 R'000
(unaudited) (unaudited) (audited)
Revenue
Investment Property Holding 11 224 10 466 20 833
Property–related services – – –
Property held for resale – 3 596 5 395
Head office administration – – –
11 224 14 062 26 228
Income before taxation
Investment Property Holding 5 321 3 339 15 779
Property–related services – (19) (28)
Property held for resale – 715 –
Head office administration (2 394) (2 297) (6 087)
2 927 1 738 9 664
Total assets
Investment Property Holding 225 710 219 634 225 710
Property–related services – 6 –
Property held for resale 1 430 2 871 1 430
Head office administration 7 033 806 13
234 173 223 317 227 153
Total liabilities
Investment Property Holding 107 174 102 714 100 949
Property–related services – – –
Property held for resale – – –
Head office administration 6 883 9 008 8 634
114 057 111 722 109 583
GENERAL REVIEW AND FINANCIAL RESULTS
A meaningful comparison of revenue for the six months ended 31 August 2015 can only be made by extracting the inventory
sales contained in the 2014 figures. This will reduce the 2014 revenue to R10 466 000. The 2015 results therefore reflect an
increase of 7% on the comparable results for 2014. This increase is in line with the average escalation rates attached to our
leasing structure, and satisfactorily exceeds the current Consumer Price Index of 4,7%.
The effects of reductions in vacancy levels to less than 1% across the group, accompanied by cost reductions negotiated with
suppliers, have yielded an increase in operating profits before interest and revaluations of 21,4%.
The directors continue with their efforts to maximise rental from the income-producing investment properties in the group.
During the period a second covering mortgage bond with ABSA Bank to the value of R9 700 000 was raised. This bears
interest at the prime lending rate less 1,5% and is secured by the Consani facility in Cape Town. This was made as a
preventative hedging measure against rising interest rates during the following 12-month period.
Proceeds from this facility were used to provide an external loan which yields a return in excess of the prime lending rate.
The group continued to actively decrease its existing bank overdraft with First National Bank, having reduced the overdraft
by R1 140 000 in the six months since the end of the preceding financial year.
Activities within the period ended 31 August 2015 have produced an improvement in the net asset value per share of
4,5 cents since the end of the preceding financial years.
RECLASSIFICATION OF PRIOR PERIOD FIGURES
To ensure comparability with both current figures and those reflected as at 28 February 2015, operating cost recoveries
effected during the period ended 31 August 2014 have been reclassified from revenue and set off against the relevant
expenses.
This reclassification has no effect on the disclosed operating profit before interest and revaluations, net profit or retained
earnings, and has been implemented to ensure enhanced disclosure.
The effect of the reclassification on the results for the period ended 31 August 2014 is as follows:
As previously Currently
disclosed Reclassification disclosed
Condensed statement of comprehensive income
Revenue 17 344 (3 282) 14 062
Gross profit 14 463 (3 282) 11 181
DIVIDENDS
Taking into account the negative impacts of the depressed economy and related problems in the property industry, the
directors have resolved to retain cash in the group to ensure future growth. As such, no dividend has been recommended.
30 October 2015
DIRECTORS: R P Fertig (Chief Executive Officer), W P Alcock† (Chairman), H Beukes CA(SA) (Financial Director),
B Mothelesi*, M Moela*, R Watson* (†Non-executive) (*Independent non-executive)
COMPANY SECRETARY: B W Kaiser
TRANSFER SECRETARIES: Computershare Investor Services (Pty) Limited, 70 Marshall Street, Johannesburg, 2001
REGISTERED OFFICE: 2969 William Nicol Drive, Wedgewood Link, Bryanston, 2021
SPONSOR: ARBOR CAPITAL SPONSORS (PTY) LIMITED
Date: 30/10/2015 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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