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Unaudited results for the half year ended 30 September 2017
LONG4LIFE LIMITED
(previously Long4Life Proprietary Limited)
(Incorporated in South Africa)
(Registration Number: 2016/216015/06)
Share code:L4L
ISIN:ZAE000243119
("Long4Life" or "the Company")
UNAUDITED RESULTS FOR THE HALF YEAR ENDED
30 SEPTEMBER 2017
Registration No: 2016/216015/06
"Long4Life is a work in progress,
and we intend building a company
that can deliver quality operating
earnings from good cash generating
businesses, with low- to medium-risk
characteristics and with a reasonable
line-of-sight to profitability. Our
foundational investments are exciting
and attractively positioned to deliver
future growth, while also providing
the platform to conclude additional,
larger, value enhancing transactions
going forward."
Brian Joffe
CEO
CONDENSED CONSOLIDATED STATEMENT
OF PROFIT AND LOSS
Half year
ended Year-end
30 September 31 March
2017 2017
R'000s Unaudited Audited
Gain in remeasurement of investment 5 966 –
Operating expenses (10 905) (130)
Staff and personnel costs (8 340) (130)
Administrative and other costs (2 565) –
Trading loss (4 939) (130)
Acquisition costs (5 431) –
Conditional share plan expense (5 292) –
Loss before interest and taxation (15 662) (130)
Net finance income 72 594 –
Profit (loss) before taxation 56 932 (130)
Taxation (15 589) –
Profit (loss) for the period 41 343 (130)
Shares in issue
Total ('000) 405 500 *
Weighted ('000) 391 776 *
Basic earnings (loss) per share (cents) 10.55 (130.00)
Headline earnings (loss) per share (cents) 10.55 (130.00)
*Less than R1 000
CONDENSED CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
Half year
ended Year-end
30 September 31 March
2017 2017
R'000s Unaudited Audited
ASSETS
Non-current assets 59 341 –
Property, plant and equipment 6 877 –
Intangible assets 32 –
Deferred taxation 1 491 –
Investments 50 941 –
Current assets 1 995 549 *
Trade and other receivables 6 651 –
Cash and cash equivalents 1 988 898 *
TOTAL ASSETS 2 054 890 *
EQUITY AND LIABILITIES
Capital and reserves 2 027 775 (18 893)
Stated capital 2 002 500 *
Transactional costs for issuing equity instruments (21 230) (18 763)
Share-based payments reserve 5 292 –
Retained income (loss) 41 213 (130)
Non-current liabilities 34 –
Operating lease liability 34 –
Current liabilities 27 081 18 893
Trade and other payables 10 000 18 893
Provision for taxation 17 081 –
TOTAL EQUITY AND LIABILITIES 2 054 890 *
Net asset value (deficit) per share (cents) 500.07 (188.93)
* Less than R1 000
CONDENSED CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
Half year
ended Year-end
30 September 31 March
2017 2017
R'000s Unaudited Audited
Equity attributable to shareholders of the Company
Stated capital 2 002 500 *
Balance at beginning of the period * *
Shares issued during the period 2 002 500 –
Equity-settled share-based payment reserve 5 292 –
Balance at beginning of the period – –
Arising during the period 5 292 –
Transactional costs for issuing equity instruments (21 230) (18 763)
Balance at the beginning of the period (18 763) –
Arising during the period (2 467) (18 763)
Retained earnings 41 213 (130)
Balance at the beginning of the period (130) –
Profit (loss) for the period 41 343 (130)
Total equity 2 027 775 (18 893)
* Less than R1 000
CONDENSED CONSOLIDATED STATEMENT
OF CASH FLOWS
Half year
ended Year-end
30 September 31 March
2017 2017
R'000s Unaudited Audited
Cash flow from operating activities 61 788 –
Operating loss (15 662)
Depreciation and amortisation 475 (130)
Non-cash items 2 025 –
Cash generated before changes in net working capital (13 162) (130)
Working capital changes excluding transactional costs for issuing
equity instruments 2 356 130
Cash generated by operations (10 806) –
Net finance income 72 594 –
Cash effects of investment activities (52 523) –
Additions to property, plant and equipment (7 352) –
Additions to intangible assets (32) –
Acquisition of investments (45 139) –
Cash effects of financing activities 1 979 633 –
Proceeds from shares issued 1 979 633 –
Net increase in cash and cash equivalents 1 988 898 –
Cash and cash equivalents at beginning of year * *
Cash and cash equivalents at end of year 1 988 898 *
* Less than R1 000
COMMENTARY
INTRODUCTION
Long4Life Limited ("L4L") is an investment holding company which was listed on the
Johannesburg Stock Exchange on 7 April 2017, through the placement of shares, raising
capital of R2 billion. Further details are contained in L4L's Pre-Listing Statement which was
issued on 31 March 2017. The company's income for the period was mainly derived from
interest earned on the capital raised.
BASIS OF PRESENTATION OF CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
The condensed consolidated financial statements have been prepared in accordance with the
recognition and measurement criteria of International Financial Reporting Standards (IFRS) and
its Interpretations adopted by the International Accounting Standards Board (IASB) in issue
and effective for the group at 30 September 2017, the SAICA Financial Reporting Guides as
issued by the Accounting Practices Committee and financial reporting pronouncements as
issued by the Financial Reporting Standards Council. The results are presented in accordance
with IAS 34 – Interim Financial Reporting, and comply with the Listings Requirements of the
JSE Limited and the Companies Act of South Africa, 2008.
In preparing these interim condensed consolidated financial statements, management make
judgements, estimates and assumptions that affect the application of accounting policies and
the reported amounts of assets and liabilities, income and expense.
These results have not been audited or reviewed by the group's auditors. The condensed
consolidated financial statements have been prepared by Sarah Bishop CA(SA), under the
supervision of Peter Riskowitz CA(SA), and were approved by the board on 26 October 2017.
COMPARATIVE FIGURES
The company was incorporated in June 2016 and was dormant during the period to
30 September 2016, and accordingly no comparatives are presented for the period then ended.
Comparative figures are, however, presented for the nine months ended 31 March 2017 during
which period limited activity took place, with the company only commencing and pursuing its
activities as an investment holding company following its listing on 7 April 2017.
SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied in these interim condensed consolidated financial statements
are the same as those applied in the group's consolidated financial statements as at and for
the period ended 31 March 2017.
Financial instruments
When measuring the fair value of an asset or a liability, the group uses market observable data
as far as possible. Fair values are categorised into different levels in a fair value hierarchy based
on the inputs used in the valuation techniques categorised as follows:
Listed and unlisted investments are classified as investments at fair value through profit or loss
or available-for-sale financial assets. Fair value of listed investments is calculated by reference
to stock exchange quoted selling prices at the close of business on the reporting date. Fair
value of unlisted investments is determined by using appropriate valuation models:
- Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
- Level 2: Inputs other than quoted prices included in Level 1 that are observable for the
asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
- Level 3: Inputs for the asset or liability that are not based on observable market data
(unobservable inputs).
The following table shows the carrying amounts and fair values of financial assets and financial
liabilities, including their levels in the fair value hierarchy for financial instruments measured at
fair value. It does not include fair value information for financial assets and financial liabilities
not measured at fair value if the carrying amount is a reasonable approximation of fair value.
Current
assets
R'000s Investments Total Level 1
30 September 2017
Financial assets measured at fair value
(769 124 Holdsport shares) 50 941 50 941 50 941
EVENTS AFTER THE REPORTING PERIOD
The following acquisitions, each of which remained subject to the fulfilment of certain conditions
as at 30 September 2017, and are accordingly not included in the interim results presented
herewith, have subsequently become unconditional. L4L has acquired 100% of the issued
share capital in each of these companies.
Holdsport Limited ("Holdsport"): Holdsport is the leading nationwide retailer of specialist
sports and outdoor apparel and equipment. Holdsport, which will be key in building the L4L
investment platform, has a strong balance sheet and is cash generative, thus facilitating
acquisitive in addition to organic growth.
Sorbet Holdings Proprietary Limited ("Sorbet"): The Sorbet group, which comprises a
network of roughly 200 stores, offers a range of professional and beauty therapy treatments,
as well as premium body and skincare products for women and men. Sorbet represents an
excellent platform for the group to expand its interests in the health, beauty and grooming
sector.
Inhle Beverages Proprietary Limited ("Inhle"): Inhle is a well-established contract packing
(co-packing) business and specialises in the canning and bottling of carbonated soft drinks,
energy drinks and natural mineral water using cans and polyethylene terephthalate (or PET).
Opportunities exist to expand capacity and Inhle's offerings to the market.
Further detail on each of these acquisitions is contained in various Stock Exchange News
Services ("SENS") announcements published by L4L.
Change of financial year-end
The board of L4L considers it appropriate to align the company's financial year to that of its
largest investee company, Holdsport, and accordingly L4L's financial year-end will be changed
to the end of February, effective 28 February 2018.
DIVIDENDS
The board intends to commence the payment of dividends with effect from the February 2018
financial year. This will be based on the operating income of the group, excluding passive
income, with appropriate dividend cover.
DIRECTORATE
Kevin Hedderwick resigned from the board on 6 October 2017. Syd Muller and Keneilwe
Moloko were appointed to the board as independent non-executive directors with effect from
24 October 2017 and 1 November 2017, respectively.
PROSPECTS
With the newly acquired companies, L4L's market capitalisation will increase substantially as
it now gains substance and scale as a JSE-listed entity. This places the group in a position to
conclude larger acquisition transactions going forward.
The future of the South African economy remains uncertain in the short- to medium-term.
Invariably in these circumstances, opportunities present themselves and L4L is ideally
positioned to take advantage of this situation. L4L is well capitalised and under-geared,
creating capacity for both organic and acquisitive growth into 2018.
Signed on behalf of the board
Brian Joffe Peter Riskowitz
Chief executive officer Chief financial officer
Johannesburg, South Africa
26 October 2017
DIRECTORS
Independent non-executive directors
Graham Dempster (Chairman)
Colin Datnow
Lionel Jacobs
Syd Muller
Tasneem Abdool-Samad
Executive directors
Brian Joffe (Chief executive officer)
Peter Riskowitz (Chief financial officer)
Alternate director
Jason Joffe
COMPANY SECRETARY
TMF Corporate Services (South Africa) Proprietary Limited represented by Marlene Klopper
CORPORATE INFORMATION
Long4Life Limited Independent auditors
("L4L", ''the group", or "the company'') Deloitte & Touche
Incorporated in the Republic of South Africa Practice number: 902276
Registration number: 2016/216015/06 Deloitte Place, The Woodlands
Share code: L4L 20 Woodlands Drive, Woodmead, Sandton, 2193
ISIN: ZAE000243119 Private Bag X6, Gallo Manor, 2052
Transfer secretaries Registered office
Computershare Investor Services 7th Floor, Rosebank Towers
Proprietary Limited 13-15 Biermann Avenue
Registration number: 2004/003647/07 Rosebank, Johannesburg, 2196
1st Floor, Rosebank Towers Box 521870, Saxonwold, 2132
13-15 Biermann Avenue
Rosebank, Johannesburg, 2196 Further information can be found on
PO Box 61051, Marshalltown, 2107 the Long4Life website:
Telephone +27 (11) 370 5000 www.long4life.co.za
Sponsor
The Standard Bank of South Africa Limited
30 Baker Street, Rosebank
South Africa, 2196
www.long4life.co.za
Date: 27/10/2017 07:05:00 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.
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