Wrap Text
Unaudited condensed results for the six months ended 27 June 2016
DELTA EMD LIMITED
Registration number: 1919/006020/06
Income tax number: 9375057719
Share code: DTA ISIN: ZAE000132817
("Delta EMD" or "the Group")
UNAUDITED CONDENSED RESULTS
FOR THE SIX MONTHS ENDED 27 JUNE 2016
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
six months to six months to year to
June June December
2016 2015 2015
Note R'000 R'000 R'000
Revenue – 15 211 15 211
Gross profit – 2 988 2 988
Interest received 4 638 6 400 13 223
Interest paid – – (714)
Distribution expenses – (1 865) (1 465)
Administrative expenses (1 202) (8 946) (8 389)
Expenses related to discontinuation of business (7 151) (8 601) (42 217)
Other income 486 85 1 694
Pappas Quarry and related expenses – (813) (16 203)
Profit on sale of assets – 896 9 899
Net foreign exchange gains – 966 839
(Loss) before taxation (3 229) (8 890) (40 345)
Taxation – – (1 545)
(Loss) for the year (3 229) (8 890) (41 890)
Other comprehensive income
Reclassification adjustments relating to foreign operations disposed
of in the year – 4 650 4 650
Total comprehensive (loss) for the year (3 229) (4 240) (37 240)
Attributable to equity holders of parent company
(Loss) for the year (3 229) (8 890) (41 890)
Total comprehensive (loss) for the year (3 229) (4 240) (37 240)
Headline (loss) attributable to ordinary shareholders 1 (3 229) (9 535) (51 789)
Number of shares and weighted number of shares in issue ('000) 49 166 49 166 49 166
Attributable (loss) per share (cents)
– basic and diluted (6.6) (18.0) (85.2)
Dividend per share (cents) 100.0 250.0 250.0
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
six months to six months to year to
June June December
2016 2015 2015
R'000 R'000 R'000
ASSETS
Current assets
– Inventories – 2 403 –
– Trade and other receivables 789 8 470 2 616
– Taxation receivable 101 101 101
– Bank balances and cash 111 888 241 171 185 553
Non-current assets held for sale 25 949 11 810 25 949
Total assets 138 727 263 955 214 219
EQUITY AND LIABILITIES
Total shareholders' funds 74 789 160 166 127 182
Non-current liabilities
Non-current provisions – 6 168 –
Current liabilities
– Trade and other payables 27 971 5 549 28 672
– Short-term provisions 34 413 92 064 56 812
– Taxation payable 1 554 8 1 553
Total equity and liabilities 138 727 263 955 214 219
Net asset value per share (cents) 152 326 259
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
six months to six months to year to
June June December
2016 2015 2015
R'000 R'000 R'000
Cash utilised by trading (7 867) (20 077) (62 753)
Movement in current and non-current provisions (22 398) – (45 474)
Decrease in working capital 1 126 62 230 93 607
Cash (utilised)/generated by operations (29 139) 42 153 (14 620)
Net interest received 4 638 6 400 12 509
Cash (outflow)/inflow from operating activities (24 501) 48 553 (2 111)
Capital expenditure – – (20 000)
Proceeds on sale of assets – 88 163 103 189
Net cash (outflow)/inflow before financing activities (24 501) 136 716 81 078
Dividends paid – ordinary (49 164) (122 914) (122 914)
Net (decrease)/increase in cash and cash equivalents (73 665) 13 802 (41 836)
Cash and cash equivalents at beginning of period 185 553 227 378 227 378
Currency translation of cash in foreign subsidiary – (9) 11
Cash and cash equivalents at end of period 111 888 241 171 185 553
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Foreign
capital currency
and translation Accumulated
premium reserve profit Total
R'000 R'000 R'000 R'000
Balance at 27 December 2014 4 856 4 650 282 464 291 970
(Loss) for the period – – (8 890) (8 890)
Reclassification adjustment relating to foreign operations
disposed of in the year – (4 650) 4 650 –
Dividend paid – – (122 914) (122 914)
Balance at 27 June 2015 4 856 – 155 310 160 166
(Loss) for the period – – (33 000) (33 000)
Prior year unclaimed dividend reversed – – 16 16
Balance at 27 December 2015 4 856 – 122 326 127 182
(Loss) for the period – – (3 229) (3 229)
Dividend paid – – (49 164) (49 164)
Balance at 27 June 2016 4 856 – 69 933 74 789
NOTES
Unaudited Unaudited Audited
six months to six months to year to
June June December
2016 2015 2015
R'000 R'000 R'000
1. Reconciliation between attributable loss and headline loss
Attributable (loss) after taxation (3 229) (8 890) (41 890)
Profit on sale of assets – (896) (9 899)
Taxation effect raised – 251 –
Headline (loss) attributable to ordinary shareholders (3 229) (9 535) (51 789)
Attributable headline (loss) per share in cents
– basic and diluted (6,6) (19,4) (105,3)
2. Basis of presentation
The Group is domiciled in South Africa. The unaudited condensed consolidated financial results at and for the period ended
27 June 2016 comprise the company and its subsidiaries (the "Group").
The Group's principal accounting policies have been applied consistently over the current and prior financial years.
On 5 March 2014, the company announced that the board of directors had taken the decision, subject to approval by the
company's shareholders, to discontinue the operations in a phased and orderly manner during 2014 and to realise value for
the company's assets during 2014 and 2015. The decision was approved at the Annual General Meeting of the company
held on 9 May 2014. The company has been wound down and will be deregistered in due course. The above information
highlights that the going-concern principle is not applicable in the preparation of the company's financial statements. When the
company ceases trading, the directors are of the opinion that the company will be in a position to discharge all of its liabilities,
due to the company's cash resources and to recover the assets at their carrying amounts. The effect, if any, of preparing the,
financial statements, other than on the going-concern basis will be negligible. Consequently the financial statements have
been prepared on a basis consistent with IFRS which among other things, requires writing assets down to their recoverable
amounts. It also requires recognising a liability for contractual commitments that may have become onerous as a consequence
of the decision to cease trading.
The Group's condensed consolidated financial results have been prepared in accordance with the requirements of the JSE
Limited Listings Requirements for interim reports, and the requirements of the Companies Act applicable to condensed financial
statements. The Listings Requirements require interim reports to be prepared in accordance with the framework concepts
and the measurement and recognition requirements of International Financial Reporting Standards (IFRS), the SAICA Financial
Reporting Guidelines as issued by the Accounting Practices Committee, Financial Pronouncements as issued by the Financial
Reporting Standards Council as well as, the information required by IAS 34 Interim Financial Reporting.
COMMENTARY – UNAUDITED
The Group's results for the period ended 27 June 2016 reflect the actions taken toward the discontinuation of the Group's business.
Losses for the period totalled R3.2 million (2015: R8.9 million), and losses per share totalled 6.6 cents (2015: 18.0 cents). Headline losses per share
for the period were 6.6 cents (2015: 19.4 cents). Included in these losses were expenses relating to the discontinuation of the business which totalled
R7.1 million for the period (2015: R8.6 million).
No proceeds from sales of assets were realised during the period (2015: R88.2 million). Net cash utilised by operations during the period totalled
R29.1 million (2015: net cash generated by operations of R42.2 million).
The Group's cash balances decreased during the period by R73.7 million and totalled R111.9 million at 27 June 2016 (Dec 2015: R185.6 million). The
Group's cash outflow during the period included the payment of a R1 per share dividend which amounted to a total of R49.2 million.
The assets classified at period-end as non-current assets held for sale include the Nelspruit plant site parcels owned by the Company and the parcel
historically leased by the Company and during the period purchased by the Company. Trade creditors at period-end included the R20.0 million to
be paid after period-end for the parcel purchased.
PROSPECTS
The salvage and sale of the plant and equipment formerly located at the Group's Nelspruit plant site is complete and payment has been received
for those assets.
During December 2015, the Company received a definitive remediation order for the Nelspruit plant site from the Department of Environmental
Affairs, and in June 2016 a report on the ongoing remediation was submitted to the Department of Environmental Affairs.
Efforts to market and sell the Nelspruit plant site continue.
Following the sale of the Nelspruit plant site the Group intends to delist and deregister the Company and make distributions to shareholders.
DIRECTORATE
Mr Collin Naicker resigned from the board on 3 June 2016.
PREPARER OF FINANCIAL STATEMENTS
These summarised consolidated financial statements have been prepared by EJ Nel CA(SA) in her capacity as financial director.
TG Atkinson EJ Nel
(Chairman) (Financial Director)
Johannesburg
12 September 2016
Registered office
15 Heyneke Street, Industrial Site, Nelspruit, 1200
Transfer Secretaries
Computershare Investor Services Proprietary Limited
70 Marshall Street, Johannesburg, 2001, PO Box 61051, Marshalltown, 2107
Directors
Independent non-executive: AC Hicks, L Matteucci, BR Wright
Non-executive: P Baijnath
Executive: TG Atkinson (Chairman), EJ Nel CA(SA) (Financial Director)
Sponsor: Rand Merchant Bank (A Division of FirstRand Bank Limited)
Date: 12/09/2016 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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