DELTA EMD LIMITED - Audited consolidated results for the year ended 27 December 2017

Release Date: 01/03/2018 12:19
Code(s): DTA
 
Wrap Text
Audited consolidated results for the year ended 27 December 2017

DELTA EMD LIMTED
Registration number: 1919/006020/06
Income tax number: 9375057719
Share code: DTA       ISIN: ZAE000132817
("DELTA EMD" or "the Group")

AUDITED CONSOLIDATED RESULTS
FOR THE YEAR ENDED 27 DECEMBER 2017

SUMMARISED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

                                                                            Audited       Audited
                                                                            year to       year to
                                                                           December      December
                                                                               2017          2016
                                                               Note           R'000         R'000
Interest received                                                             6 203         9 374
Rental and other income                                                       2 299         1 370
Administrative expenses                                                     (2 320)       (1 920)
(Expenses)/income related to discontinuation of business                    (2 223)         3 784
Profit for the year before taxation                                           3 959        12 608
Taxation                                                                      (623)         1 341
Profit for the year                                                           3 336        13 949
Total comprehensive profit for the year                                       3 336        13 949
Attributable to equity holders of parent company
Profit for the year                                                           3 336        13 949
Total comprehensive profit for the year                                       3 336        13 949
Profit attributable to ordinary shareholders                      1           3 336        13 949
Number of shares in issue ('000)                                             49 166        49 166
Weighted number of shares in issue ('000)                                    49 166        49 166
Attributable earnings per share (cents) 
- basic and diluted                                                             6,8          28,4
Dividend per share (cents)                                                        -         100,0


SUMMARISED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

                                                                            Audited       Audited
                                                                            year to       year to
                                                                           December      December
                                                                               2017          2016
                                                                              R'000         R'000
ASSETS
Current assets
Trade and other receivables                                                     808           928
Bank balances and cash                                                       80 649       103 830
Taxation receivable                                                               -           141
Non-current assets held for sale                                             25 949        25 949
Total assets                                                                107 406       130 848
EQUITY AND LIABILITIES 
Total shareholders' funds                                                    95 352        92 016
Current liabilities 
Trade and other payables                                                      3 283        22 797
Short-term provisions                                                         8 763        16 035
Taxation payable                                                                  8             -
Total equity and liabilities                                                107 406       130 848
Net asset value per share (cents)                                               194           187


SUMMARISED CONSOLIDATED STATEMENT OF CASH FLOWS

                                                                            Audited       Audited
                                                                            year to       year to
                                                                           December      December
                                                                               2017          2016
                                                                              R'000         R'000
Cash (utilised)/generated from trading                                      (2 244)         3 234
Movement in current and non-current provision                               (7 273)      (40 776)
Increase in working capital                                                (19 393)       (4 139)
Cash utilised by operations                                                (28 910)      (41 681)
Interest received                                                             6 203         9 374
Taxation paid                                                                 (474)         (252)
Cash outflow from operating activities                                     (23 181)      (32 559)
Dividend paid - ordinary                                                          -      (49 163)
Net decrease in cash and cash equivalents                                  (23 181)      (81 722)
Cash and cash equivalents at beginning of year                              103 830       185 552
Cash and cash equivalents at end of year                                     80 649       103 830


SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

                                                              Share
                                                            capital
                                                                and     Accumulated
                                                            premium          profit         Total
                                                              R'000           R'000         R'000
Balance at 27 December 2015                                   4 856         122 326       127 182
Profit for the year                                               -          13 949        13 949
Dividend paid                                                     -        (49 163)      (49 163)
Prior year unclaimed dividend reversed                            -              48            48
Balance at 27 December 2016                                   4 856          87 160        92 016
Profit for the year                                               -           3 336         3 336
Balance at 27 December 2017                                   4 856          90 496        95 352

NOTES
                                                                            Audited       Audited
                                                                            year to       year to
                                                                           December      December
                                                                               2017          2016
                                                                              R'000         R'000
1.    Reconciliation between attributable earnings and headline earnings
      Profit attributable to ordinary shareholders                            3 336        13 949
      Headline earnings attributable to ordinary shareholders                 3 336        13 949
      Attributable headline earnings per share
      - basic and diluted                                                       6,8          28,4

2.    Basis of presentation
      The Group is domiciled in South Africa. The audited summarised consolidated financial results at and for the year ended
      27 December 2017 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. The decision was approved at the Annual General Meeting of the company held on 9 May 2014. The
      company will be wound down and de-registered 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
      International Financial Reporting Standards (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 summarised financial statements have been prepared in accordance with the requirements of the JSE limited
      Listings Requirements for preliminary financial statements, and the requirements of the Companies Act applicable to summarised
      consolidated financial statements. The Listings Requirements require preliminary reports to be prepared in accordance with the
      framework concepts and the measurement and recognition requirements of IFRS, the SAICA Financial Reporting Guides as
      issued by the Accounting Practices Committee, Financial Pronouncements as issued by the Financial Reporting Standards
      Council , and as a minimum contain the information required by IAS 34: Interim Financial Reporting.

      The auditors, Deloitte & Touche, have issued their unmodified opinion on the Groups' financial statements for the year ended
      27 December 2017. The auditor's report contains an emphasis of matter paragraph regarding the basis of preparation used to
      prepare the consolidated and separate financial statement in the current year: "Without qualifying our opinion, we draw attention
      to the basis of preparation note, Note 1.2, in the consolidated and separate financial statements regarding the basis of preparation
      used to prepare the consolidated and separate financial statements in the current year." The audit was conducted in accordance
      with International Standards on Auditing. This preliminary report has been derived from the consolidated financial statements
      and consistent in all material respects, with the consolidated financial statements. Copies of their unmodified audit reports on
      these summarised consolidated financial statements and consolidated financial statements together with the accompanying
      financial information are available for inspection at the company's' registered office. Any reference to future financial performance
      included in this announcement, has not been audited or reported on by the company's auditors. The auditor does not report
      on the commentary hereon. Shareholders are adviced that, in order to obtain a full understanding of the nature of the auditor's
      engagement, they should obtain a copy of the auditor's report together with the accompanying financial information from the
      company's registered office.


COMMENTARY UNAUDITED
The Group realised a profit for the year of R3.3 million (2016: R13.9 million). The main contributors to the profit were interest earned,
rental and the reversal of certain provisions, as was the case during the prior year.

Total interest earned for the year on cash investments was R6.2 million.

The Group's expenses related to the discontinuation of the business primarily included management costs of R2.1 million (2016:
R4.1 million); site operating costs of R4.0 million (2016: R4.7 million); and administration costs of R2.1 million (2016: R2.9 million). Income
resulting from the reversal of provisions totalled R6.1 million (2016: R15.6 million).

Net cash utilised by operations during the year totalled R28.9 million (2016: R41.6 million) and included the R20 million paid during the
year for the purchase during 2016 of a portion of the plant site formerly leased.

The Group's year-end cash balances decreased by R23.2 million from R103.8 million to R80.6 million, reflecting the R20 million payment
and operating expenses.

Total assets of the Group at year-end, including cash balances, totalled R107.4 million (2016: R130.8 million). Net asset value per share
at year-end was 194 cents (2016: 187 cents).

The directors are not aware of any material event which occurred after the reporting date up to the date of this report.

PROSPECT
The only remaining non-current asset held by the Group is the former plant site located in Nelspruit.

During the year, remediation of the Nelspruit plant site continued in terms of the order received during December 2015 from the Department
of Environmental Affairs.

The former plant site has been actively marketed for a period of 20 months and no substantial, unconditional offers have been received to
date. Efforts to market and sell the site continue.

Ongoing costs for the management of the former plant site and the Group continue to be closely managed. Work continues to prepare
the Company for possible de-listing and de-registration.

DIRECTORATE
No Change.

PREPARER OF FINANCIAL STATEMENTS
These summarised consolidated financial statements and the full set of consolidated financial statements have been prepared by
EJ Nel CA(SA) in her capacity as Financial Director of the Group.

AVAILABILITY OF COMPLETE SET OF FINANCIAL STATEMENTS
Shareholders are advised that in order to obtain a full understanding of the nature of the auditor's engagement they should obtain a copy
of the auditor's report together with the accompanying set of financial statements from the registered office of the Delta EMD Limited.

TG Atkinson                                                            EJ Nel (Financial director)
28 February 2018

DELTA EMD LIMTED
Registration number: 1919/006020/06
Income tax number: 9375057719
Share code: DTA       ISIN: ZAE000132817
("DELTA EMD" or "the Group")

Registered office
15 Heyneke Street, Industrial Site, Nelspruit, 1200

Transferred Secretaries
Computershare Investor Services Proprietary Limited
Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196
PO Box 61051, Marshalltown, 2107

Directors:
Independent non-executive: AC Hicks, BR Wright, L Matteucci
Non-executive: P Baijnath
Executive chairman: TG Atkinson* (Chairman) *USA
Executive: EJ Nel CA(SA) (Financial director)

Sponsor: Deloitte & Touche Sponsor Services Proprietary Limited                                               Released on 28 February 2018



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