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Unaudited interim results for the six months ended 30 September 2016
Capital Appreciation Limited
Incorporated in the Republic of South Africa
(Registration number 2014/253277/06)
Tax number 9591281176
JSE Share Code: CTA
ISIN: ZAE000208245
(the "Company")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2016
INTRODUCTION
The directors have pleasure in submitting their condensed report for the six months ended 30 September 2016.
Capital Appreciation Limited issued a Pre-Listing Statement on 28 September 2015 for the purpose of raising capital and
being listed on the Main Board of the Johannesburg Stock Exchange ("JSE"). The Company raised R1 billion through a
private placement and obtained a listing on 16 October 2015 on the JSE in the Non-Equity Investment Instrument sector as a
Special Purpose Acquisition Company ("SPAC"). The primary purpose of a SPAC is to conclude an acquisition of a viable
asset being an investment in a commercial enterprise with high growth potential.
Unless and until such viable asset is acquired, the only material asset of a SPAC is the cash it holds pursuant to the
capital raising/private placement as aforesaid. In terms of the JSE Listings requirements and in this case, such cash is to
be held in escrow and invested in interest bearing investment grade securities for the protection of the Company's
shareholders. If an acquisition of a viable asset is not concluded within a period of 24 months from the date on which
the SPAC was listed, or such later date as the JSE may permit, the SPAC is required to return the subscription funds,
to shareholders, plus interest earned, less certain permissible expenses and taxation.
STATUS REVIEW
During the period under review, the company's executives have reviewed and assessed several potential acquisitions.
Certain of these propositions present interesting prospects for further consideration and the company's executives continue
to work diligently on these matters to ensure that the company's investment objectives are satisfactorily fulfilled.
The company will make an announcement on SENS as soon as a viable asset acquisition has been finally negotiated.
While the acquisition of a viable asset is expected to enhance shareholder value, in the unlikely event of an acquisition
not occurring within the permitted period, the cash already available for redemption of 1,000,000,000 shares qualifying for
redemption is 103.05 cents per share at 30 September 2016.
CONDENSED STATEMENT OF FINANCIAL POSITION AT 30 SEPTEMBER 2016
Unaudited Audited
30 September 2016 31 March 2016
R R
Assets
Non-Current Assets
Property, plant and equipment 175 046 172 685
175 046 172 685
Current Assets
Interest receivable and prepayments 591 145 479 640
Cash and cash equivalents 1 037 033 673 1 008 020 404
1 037 624 818 1 008 500 044
Total Assets 1 037 799 864 1 008 672 729
Equity and Liabilities
Equity
Redeemable ordinary share capital 1 000 002 500 1 000 002 500
Constituent ordinary share capital 4 000 000 4 000 000
Constituent costs (22 543 311) (22 543 311)
Accumulated profit 49 052 784 22 158 579
1 030 511 973 1 003 617 768
Liabilities
Current Liabilities
Accounts payable 1 132 680 4 969 177
Tax liability 6 155 211 85 784
7 287 891 5 054 961
Total Equity and Liabilities 1 037 799 864 1 008 672 729
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
Audited
Unaudited Five and a half
Six months to month period 16 October
30 September 2016 2015 to
31 March 2016
R R
Revenue 39 745 134 32 995 626
Operating expenses (2 384 623) (2 214 856)
Profit before taxation 37 360 511 30 780 770
Taxation (10 466 306) (8 622 191)
Total comprehensive profit for the period 26 894 205 22 158 579
Earnings per share (cents)
Basic and headline earnings per share (cents) 2,15 1,77
Redeemable ordinary shares in issue 1 250 000 000 1 250 000 000
CONDENSED STATEMENT OF CHANGES IN EQUITY
Redeemable Constituent
ordinary share ordinary share Constituent Accumulated
capital capital costs profit Total equity
R R R R R
Issue of ordinary share capital * *
Balance at 1 March 2015 * *
Conversion of ordinary share
capital to constituent ordinary share capital * * *
Issue of redeemable ordinary
share capital 1,000,000,000 1,000,000,000
Issue of founders' initial ordinary
share capital 7,500 7,500
Issue of constituent ordinary share capital 4,000,000 4,000,000
Redemption of founders' initial
ordinary share capital (5,000) (5,000)
Redemption of constituent ordinary share
capital * *
Constituent costs (22,543,311) (22,543,311)
Total comprehensive profit for
the period 22,158,579 22,158,579
Balance at 31 March 2016 1,000,002,500 4,000,000 (22,543,311) 22,158,579 1,003,617,768
Total comprehensive profit for
the six months ended 30 September 2016 26 894 205 26 894 205
Balance at 30 September 2016 1,000,002,500 4,000,000 (22,543,311) 49,052,784 1,030,511,973
*Less than R1
CONDENSED STATEMENT OF CASH FLOWS
Audited
Unaudited Five and a half
Six months to month period 16 October
30 September 2016 2015 to
31 March 2016
R R
Cash flows from operating activities (6,223,058) 2,283,658
Interest income 39,745,134 32,995,626
Tax paid (4,396,879) (8,536,407)
Net cash from operating activities 29,125,197 26,742,877
Cash flows from investing activities
Property, plant and equipment (111,928) (181,662)
Net cash from investing activities (111,928) (181,662)
Cash flows from financing activities
Issue of redeemable ordinary share capital 1 000,000,000
Issue of founders' initial ordinary share capital 2,500
Issue of constituent ordinary share capital 4,000,000
Payment of constituent costs (22,543,311)
Net cash from financing activities 981,459,189
Total cash movement for the period 29,013,269 1,008,020,404
Total cash at beginning of the year 1,008,020,404
Total cash at end of the period 1,037,033,673 1,008,020,404
1. Basis of preparation
The condensed unaudited financial statements have been prepared in accordance with International Financial Reporting
Standards ("IFRS"), IAS 34 Interim Financial Reporting Standards, the SAICA Financial Reporting Guides as issued by the
Accounting Practices Committee, the Financial Reporting Pronouncements as issued by the Financial Reporting Standards
Council, the South African Companies Act, 71 of 2008, as amended and the Listings Requirements of the JSE Limited. The
accounting policies and methods of computation used in the preparation of this report are consistent with those of the
previous period and with those applied in the financial statements for the period ended 31 March 2016.
2. Revenue
Audited
Unaudited Five and a half
Six months to month period 16 October
30 September 2016 2015 to
31 March 2016
R R
Bank - interest income 39,745,134 32,995,626
Total interest income is calculated and received at the negotiated interest rates with ABSA Bank and Investec Bank on cash
held on call and on notice deposits.
3. Events after the reporting period
No events or circumstance have arisen since the end of the financial period.
4. Comparative financials
No comparative financial data is prepared for the six months ended 30 September 2015. The comparative financial data
relates to a five and a half month period being from date of commencement of business, 16 October 2015 to 31 March 2016.
5. Interim dividend
No dividend was declared during the interim period.
6. Preparation
Mr. A Salomon (CA(SA)), Chief Financial Officer, is responsible for this set of financial statements and has supervised the
preparation thereof in conjunction with the Financial Manager, Ms. C Sacharowitz (CA(SA)).
By order of the Board
Chairman Chief Financial Officer
Motty Sacks Alan Salomon
Directors
M Sacks# (Chairman), M Pimstein*(Joint Chief Executive), B Sacks*(Joint Chief Executive), A Salomon*, Dr. D Matjila#,
R Morar#, B Bulo#, J M Kahn#, V Sekese#, C Valkin# *Executive # Non-Executive
Registered Office
4th Floor, 1 Vdara, 41 Rivonia Road, Sandhurst, 2196
Company Secretary
Horwath Leveton Boner
Auditors
Ernst & Young Inc.
Sponsor
Investec Bank Limited
Email
investor@capitalappreciation.co.za
Website
www.capitalappreciation.co.za
Sandton
03-Nov-16
Date: 03/11/2016 11:00:00 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,
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