Wrap Text
Summarised report relating to the audited financial results for the year ended 31 March 2016 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 2016 and details of the notice of the
annual general meeting
Summarised consolidated statement of financial position
at 31 March 2016
Figures in R’000 2016 2015
Assets
Property, plant and equipment 17 230 17 294
Intangible assets 355 588
Investments 39 841 38 629
Deferred tax assets 1 145 2 426
Loans and receivables 4 768 6 203
Non-current assets 63 339 65 140
Inventories 11 185 8 746
Loans and receivables 46 468 39 281
Trade and other receivables 254 464 197 916
Investments 22 988 131 881
Cash and cash equivalents 118 112 58 116
Current assets 453 217 435 940
Total assets 516 556 501 080
Equity and liabilities
Stated capital 48 668 48 668
Revaluation reserve 7 983 8 170
Retained earnings 37 749 31 577
Equity 94 400 88 415
Liabilities
Deferred tax liabilities 2 602 2 384
Non-current liabilities 2 602 2 384
Trade and other payables 7 610 12 212
Insurance contract liability 411 944 398 069
Current liabilities 419 554 410 281
Total liabilities 422 156 412 665
Total equity and liabilities 516 556 501 080
Summarised consolidated statement of comprehensive income
for the year ended 31 March 2016
Figures in R’000 2016 2015
Revenue 51 062 55 932
Cost of sales (20 621) (21 722)
Gross profit 30 441 34 210
Other income 4 062 2 328
Investment income from operations 30 699 28 796
Operating expenses (40 626) (46 327)
Administrative expenses (19 146) (15 308)
Results from operating activities 5 430 3 699
Investment income 3 869 3 037
Profit before taxation 9 299 6 736
Taxation (expense)/credit (1 312) 88
Profit for the year 7 987 6 824
Other comprehensive income:
Items that will never be reclassified to
profit or loss
Tax related to property valuation –
capital gains tax rate change (187) –
Total comprehensive income for the year 7 800 6 824
Profit attributable to:
Owners of the company 7 987 6 824
Total comprehensive income attributable
to:
Owners of the company 7 800 6 824
Earnings per share (cents) 12,05 10,30
Diluted earnings per share (cents) 12,05 10,30
Summarised consolidated statement of cash flows
for the year ended 31 March 2016
Figures in R’000 2016 2015
Cash flows from operating activities
Cash (utilised by)/generated from
operations (75 909) (7 130)
Investment income received from
operations 29 264 23 723
Dividends received 1 435 1 339
Dividends paid (1 988) –
Net cash (utilised by)/generated from
operating activities (47 198) 17 932
Cash flows from investing activities
Acquisition of property, plant and
equipment (336) (582)
Proceeds on sale of property, plant and
equipment 104 –
Acquisition of intangible assets (22) (185)
Acquisition of investments – (4 204)
Proceeds from disposal of investments 1 873 2 192
Investment income received 3 869 3 037
Short-term funds disinvested/(invested) 108 893 (71 409)
Related parties loans advanced (7 187) (20 479)
Net cash generated from/(utilised by)
investing activities 107 194 (91 630)
Total cash movement for the year 59 996 (73 698)
Cash and cash equivalents at the
beginning of the year 58 116 131 814
Total cash and cash equivalents at the
end of the year 118 112 58 116
Summarised consolidated statement of changes in equity
for the year ended 31 March 2016
Re-
Stated valuation Retained Total
Figures in R’000 capital reserve earnings equity
Balance at 1 April 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
Total comprehensive income
for the year
Profit for the year – – 7 987 7 987
Other comprehensive income
Deferred tax on property
revaluations
– capital gains tax rate
change – (187) – (187)
Total comprehensive income
for the year – (187) 7 987 7 800
Transactions with the
owners of the company
Distributions to the
owners of the company
Dividends paid – – (1 988) (1 988)
Prescribed dividends – – 173 173
Total transactions with
the owners of the company – – (1 815) (1 815)
Balance at 31 March 2016 48 668 7 983 37 749 94 400
Summarised segmental report
for the year ended 31 March 2016
Figures in R’000 2016 2015
Segment assets
Furniture retail 63 679 63 782
Insurance and finance 486 431 469 363
Subtotal 550 110 533 145
Head office and eliminations (33 554) (32 065)
Total segment assets 516 556 501 080
Segment revenue
Furniture retail 36 564 37 717
Insurance and finance 15 918 19 818
Subtotal 52 482 57 535
Head office and eliminations (1 420) (1 603)
Total segment revenue 51 062 55 932
Net profit/(loss) for the year
Furniture retail 820 (764)
Insurance and finance 3 627 4 564
Subtotal 4 447 3 800
Head office and eliminations 3 540 3 024
Total net profit/(loss) for the year 7 987 6 824
Accounting policies
Basis of preparation
These summarised consolidated financial statements for the year
ended 31 March 2016 (“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. This announcement does not include the
information required pursuant to paragraph 16A(j) of IAS 34. 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.
The full Summarised Consolidated Financial Statements are
available on our website, at our registered office and upon
request.
The new standards and interpretation 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 2016
Profit on
ordinary Net
Figures in R’000 activities Taxation profit
2016
Profit for the year 9 299 (1 312) 7 987
Adjustments for:
Profit on disposal of
property, plant and
equipment (18) 5 (13)
Headline earnings 9 281 (1 307) 7 974
2015
Profit for the year 6 736 88 6 824
2016 2015
Headline earnings per share (cents) 12,03 10,30
Diluted headline earnings per share
(cents) 12,03 10,30
Responsibility for consolidated financial statements
The consolidated financial statements for the year ended 31 March
2016 (“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.
This Summarised Financial Statements have been extracted from the
Audited Financial Statements, but is 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 2016, other than that a dividend of 3,00 cents per
share was declared by the directors subsequent to year end,
payable to shareholders registered on 22 July 2016. A separate
announcement will follow containing details of the dividend.
Chairman’s report - BJ Willemse
We are grateful to confirm that we continue on a strong growth
path and that the longer-term strategic plan is in place and in
the process of being implemented.
I believe the fact that Nictus Limited has a strong family
shareholder base gives the company scope to focus on long-term
growth and sustainable profit. We do not have to worry about the
major shareholder’s support to continue on a sustainable growth
path that will deliver long-term returns to our shareholders and
other stakeholders.
Nicolaas C Tromp stepped down as managing director (MD) of Nictus
Limited group, after spending over 40 years building the original
Nictus group. The fact that the group was unbundled into two
separate listed companies in Namibia and South Africa – each
continuing with strong growth – pays tribute to his leadership and
long-term vision. We hope to continue to benefit from his
experience and insight as a board member, especially in evaluating
new business opportunities.
Gerard R de V Tromp was appointed the new MD, after spending a
number of years in the group in various capacities. He has a young
and dynamic new management team, which is well educated and
committed to the long-term growth path.
The SA economy is in a downturn phase, with a difficult operating
environment for business. However, given the strong shareholder
base and a strong management team we are confident that we will
continue to deliver profit growth and utilise new opportunities.
In the furniture industry, a number of large competitors closed
down – while Nictus Furnishers remained profitable. We will
continue to do ethical business and focus on selling furniture to
our long established loyal customer base. The consolidation in the
furniture industry has put the industry on a healthier path and we
believe has created new opportunities for the group. Nictus
Furnishers has embarked on a new venture with a German company to
distribute very competitively priced, high quality compact
furniture throughout South Africa.
The insurance company, Corporate Guarantee, continued to grow its
asset base, following renewed focus in the niche market and will
continue to do business with integrity, after the unlawful conduct
of previous management. Strong further growth is envisaged.
Regulations in the industry continue to change and add
administrative burdens and extra costs. Hopefully, the new
regulations will finally be enacted in January 2017 for which
Corporate Guarantee is well placed. Corporate Guarantee is fully
compliant with industry regulations and the new dispensation will
bring certainty from a regulatory point of view and will free up
resources to continue building the business. The focus remains on
a niche segment of the market with selected clients that can
benefit through Corporate Guarantee’s alternative risk transfer
mechanisms, designed to assist business with an appetite for own-
risk management.
Given a strong capital base and sufficient cash, we continue to
carefully evaluate new business opportunities to grow the business
further and to continue to deliver value to our stakeholders,
doing business on an ethical basis. I wish to thank all staff for
their loyalty and ethical way of doing business.
I thank my fellow board members for guidance and support in the
continuous building of the company for the benefit of all
stakeholders.
Group managing director’s report - NC Tromp
I am thankful to report that the group achieved satisfactory
results during the past financial year with a 17% increase in the
profit for the year. With the support of our loyal stakeholders,
management succeeded in finalising the reconstruction of the group
during a very tough year.
Overview
Gerard R de V Tromp (CA(SA), CA(Namibia)), the deputy managing
director of the group, who led the reconstruction of the group
during the year, has been appointed managing director of Nictus
Limited with effect from 18 April 2016. His main focus, together
with the new management team, will remain in Gauteng and the Cape
provinces, with a strong drive to achieve sustainable above
average returns for all stakeholders of the group over the next
three to five years.
Corporate governance
Nictus is committed to the highest standard of corporate
governance. In our opinion, good corporate governance cannot be
dictated by a set of rules and regulations, but must be driven by
the moral convictions of the persons implementing them.
We further acknowledge our responsibility to ensure that business
in the group is conducted with transparency, prudence, fairness,
accountability and integrity.
Segmental performance
Nictus Limited 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
The furniture segment was profitable during the past year. The
focus on the segment is on staff recruitment and development as
well as information technology development. The higher interest
rates will have a negative effect on this sector, but we expect to
remain profitable in the coming year.
Insurance and finance segment
Focus in the insurance and finance segment will be mainly the
development of information technology to ensure that we keep in
step with development in the insurance and finance industry.
Management will also concentrate on stakeholder relations as a
priority. The segment was consolidated during the past year, and
we already see the benefit coming through in the profitability of
the segment in the new year.
Outlook
Results of the restructuring of the group will bear fruit in the
next three to five years. Dedicated focus on increasing
shareholder and policyholder value in the coming year will be a
priority, although we foresee low growth in the economy because of
the increase in interest rates, the severe impact of the drought
and the increase in the exchange rate.
The effect of the higher interest rate will have a positive impact
on the investment side of the group. The coming year will see a
continued investment in development of management and related
structures under the leadership of the new managing director. I
firmly believe that the group is in good hands under the
leadership of Gerard Tromp and his management team.
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.
I wish to re-affirm our commitment to serving our customers, and
thank them, together with all stakeholders, for their continued
loyalty and support.
I am handing the reins over to my son and successor after serving
as managing director for 37 years and being in office for over 40
years. I will still serve on the boards of the various companies
in the Nictus group, and I trust that Gerard will experience the
same loyal support from all our stakeholders, as I have
experienced.
I thank you all for the support I have received for the past
almost four decades.
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
2016 (“the AGM”). The AGM will be held in the boardroom at the
Nictus Building, corner of Pretoria and Dover Street, Randburg,
Gauteng on Thursday, 18 August 2016 at 12h00.
The notice of AGM and the summarised version of the Audited
Financial Statements, are to be posted to Nictus shareholders on
Thursday, 30 June 2016. The integrated report is available on the
website www.nictuslimited.co.za.
B J Willemse
Chairman
30 June 2016
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
Nictus Building, 1st Floor
140 Mandume Ndemufayo Avenue, 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 and reporting accountant
KPMG Inc.
Registration number 1999/021543/21
KPMG Crescent
85 Empire Road, Parktown 2193
Private Bag 9, Parktown 2122
Date: 30/06/2016 10:00:00 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 
