Wrap Text
Unaudited Interim Consolidated Condensed Group Results for the period ended 31 December 2012
Sable Holdings Limited
("Sable" or "the company" or "the group")
(Incorporated in the
Republic of South Africa)
(Registration No. 1968/010636/06)
Share code: SBL
ISIN code: ZAE000006383
Unaudited interim consolidated condensed group results for
the period ended 31 December 2012
Earnings per share down 296,0%
Headline earnings per share down 186,5%
Consolidated condensed statement of financial position
Unaudited Audited
As at Year ended
31 December 30 June
(R?000) 2012 2011 2012
Assets
Non-current assets 568 437 541 158 538 775
Investment property 295 381 287 982 267 049
Investments 22 944 36 016 35 060
Investments in joint
ventures 246 199 212 219 232 743
Deferred taxation 381 106 381
Other non-current assets 3 532 4 835 3 542
Current assets 6 925 15 199 34 097
Cash and cash equivalents 3 225 2 434 4 542
Other current assets 3 700 12 765 29 555
Non-current asset held for
sale 3 200 - 3 200
Total assets 578 562 556 357 576 072
Equity and liabilities
Reserves 420 850 401 895 424 004
Non-current liabilities 129 745 129 258 118 015
Interest-bearing borrowings 108 999 100 916 97 269
Deferred taxation 20 746 28 342 20 746
Current liabilities 27 967 25 204 34 053
Interest-bearing borrowings 10 206 6 630 11 769
Bank overdraft 464 1 184 2 202
Other current liabilities 17 297 17 390 20 082
Total equity and
liabilities 578 562 556 357 576 072
Weighted average number of
ordinary shares in issue net
of treasury shares (?000) 9 175 9 175 9 175
Net asset value per
ordinary share (cents) 4 587 4 380 4 621
Consolidated condensed statement of comprehensive income
Unaudited Audited
Six months ended Year ended
31 December 30 June
(R?000) 2012 2011 2012
Revenue 28 333 16 282 31 361
Turnover 28 105 16 036 30 957
Profit from operations 7 014 6 327 12 821
Profit/(loss) on disposal
of investments and 721 (159) (822)
investment property
Profit/(loss) on disposal
of investments 426 (159) 172
Profit/(loss) on disposal
of investment property 295 - (994)
Fair value (impairment)/gains on
investments and investment
property (310) 297 (3 151)
Fair value
(impairment)/gains on
investment (438) 297 85
Net gains/(impairment) on
revaluation of investment
property 128 - (3 236)
Profit before net finance
costs and taxation 7 425 6 465 8 848
Income from investments - 28 46
Finance income 228 246 404
Finance costs (4 589) (4 686) (9 786)
Share
of (loss)/profit from
joint ventures (5 667) (361) 16 752
(Loss)/profit before
taxation (2 603) 1 692 16 264
Taxation (551) (94) 7 386
Net (loss)/profit for the
period (3 154) 1 598 23 650
Other comprehensive income - - -
Total comprehensive
(loss)/income for the (3 154) 1 598 23 650
period
Total comprehensive (loss)/income
attributable to:
Equity shareholders of
Sable Holdings Limited (3 143) 1 604 23 647
Non-controlling interest (11) (6) 3
(Loss)/earnings and diluted
(loss)/earnings per
ordinary share (cents) (34,3) 17,5 257,7
Consolidated condensed statement of cash flows
Unaudited Audited
Six months ended Year ended
31 December 30 June
(R?000) 2012 2011 2012
Cash inflow from operating
activities 28 677 2 039 8 561
Cash outflow from investing
activities (36 244) (9 382) (15 608)
Cash inflow from financing
activities 7 988 7 397 8 191
Net increase in cash and
cash equivalents 421 54 1 144
Cash and cash equivalents at the
beginning of the period 2 340 1 196 1 196
Cash and cash equivalents
at the end of the period 2 761 1 250 2 340
Cash and cash equivalents at the
end of the period consist of:
Cash and cash equivalents 3 225 2 434 4 542
Bank overdraft (464) (1 184) (2 202)
2 761 1 250 2 340
Reconciliation of net (loss)/profit for the period to headline
(loss)/earnings
Unaudited Audited
Six months ended Year ended
31 December 30 June
(R?000) 2012 2011 2012
Net (loss)/profit attributable to
equity shareholders of the holding
company (3 143) 1 604 23 647
Adjustments through subsidiaries:
(Profit)/loss on disposal
of investment property (295) - 994
Net fair value
(gains)/impairment on
investment property (128) - 3 236
Tax effects of adjustments 79 - (743)
Adjustments through joint
ventures:
(Profit)/loss on disposal
of investment property (308) (126) 1 747
Fair value impairment/(gains) on
investment property 3 008 - (15 293)
Tax effects of adjustments (505) 17 2 473
Headline (loss)/earnings
for the period (1 292) 1 495 16 061
Headline (loss)/earnings
per ordinary share (cents) (14,1) 16,3 175,0
Consolidated condensed segmental analysis
Unaudited Audited
Six months ended Year ended
31 December 30 June
(R?000) 2012 2011 2012
Segmental revenue 28 333 16 282 31 361
Investment property 27 126 15 265 29 285
Commercial 4 010 3 045 6 196
Industrial 16 464 5 499 11 601
Retail 5 690 5 743 10 307
Residential 962 978 1 181
Corporate and inter-segment
charges 1 207 1 017 2 076
(Loss)/profit before
taxation (2 603) 1 692 16 264
Investment property 8 734 6 988 8 146
Commercial 2 547 1 440 4 023
Industrial 2 855 2 349 535
Retail 2 817 2 736 3 030
Residential 515 463 558
Corporate and inter-segment
charges (11 337) (5 296) 8 118
Investment property 295 381 287 982 267 049
Commercial 102 399 75 400 74 276
Industrial 96 644 99 878 96 422
Retail 83 138 99 504 83 151
Residential 13 200 13 200 13 200
Consolidated condensed statement of changes in equity
Non-
Share Non- control-
capital distribu- ling
and table Retained inte- Total
(R?000) premium reserves earnings rests equity
Balance at 30
June 2011 51 425 125 120 223 695 57 400 297
Total comprehensive
income for the
year - - 23 647 3 23 650
Profit transfer - - 57 - 57
Share of profit from
joint ventures - 16 752 (16 752) - -
Balance at 30
June 2012 51 425 141 872 230 647 60 424 004
Total comprehensive
loss for the
period - - (3 143) (11) (3 154)
Share of loss
from joint - (5 667) 5 667 - -
ventures
Balance at 31
December 2012 51 425 136 205 233 171 49 420 850
Basis of preparation and accounting policies
The unaudited interim consolidated condensed group results have been
prepared in accordance with the Framework concepts and the
measurement and recognition requirements of the International
Financial Reporting Standards ?IFRS? and containing information
required by IAS 34 ?Interim Financial Reporting? and AC 500 standards
as issued by the Accounting Practices Board, the JSE Limited Listings
Requirements and in the manner required by the Companies Act, 71 of
2008, as amended and has been consistently applied to the prior period. The accounting policies and methods of computation are
consistent with those used in the annual financial statements for the
financial year ended 30 June 2012. The consolidated condensed
statement of financial position as at 31 December 2012 and the related
consolidated condensed statement of comprehensive income, consolidated
condensed statement of changes in equity and statement of cash flow
for the period ended have not been reviewed by the group?s auditors.
The unaudited interim consolidated condensed group results for the
period ended 31 December 2012 were prepared by KA Haswell, the
group financial director, and have been approved by the board on
19 March 2013 and will be published on 26 March 2013.
Directors commentary on results
Unaudited comparative analysis between 31 December 2012 (unaudited)
and 31 December 2011 (unaudited)
The group reported a net loss of R3,2 million (2011: profit R1,6 million) for
the period ended 31 December 2012. Earnings per share decreased by 296.0% from
earnings of 17,5 cents to a loss of 34,3 cents, with no dilution in either period,
whilst headline earnings per share decreased by 186,5% from 16,3 cents to a loss of
14,1 cents per share. Profit from operations for the period ended was R7,0 million
(2011: R6,3 million), whilst profit/loss on disposals and fair value adjustments on
investments and investment property resulted in a net gain of R0,4 million (2011: R0,1 million).
Share of loss from joint ventures reported for the period was R5,7 million (2011: R0,4 million).
Consolidated condensed statement of comprehensive income
Revenue for the period increased from R16,3 million to R28,3 million,
which included an amount in respect of an industrial unit which was
sold during the period for R10,8 million. Profit/(loss) on disposal of
investments and investment property increased from a loss of R0,2 million to a profit of R0,7 million.
Investments in JSE listed shares were disposed of for a R0,4 million profit. Fairlands Shopping Centre,
an investment property, was realised for a profit of R0,3 million above fair value
previously reported. Fair value (impairment)/gains on investments and investment property decreased from
a net gain of R0,3 million to a net impairment of R0,3 million. Finance costs, net of investment and finance
income, remained unchanged at R4,4 million for the period.
Share of (loss)/profit from joint ventures increased from a loss of R0,4 million to R5,7 million. Loss from operations increased from
R0,5 million to R3,5 million and fair value gains and profit from disposal of investment property decreased from a profit of R0,1 million
to loss of R2,2 million net of tax. Hazeldean Shopping Centre, located in Hazeldean, Pretoria, was the only joint venture asset revalued
during the period and was impaired by R2,4 million net of tax. Taxation for the period increased from R0,1 million to R0,6 million.
Consolidated condensed statement of financial position as at
31 December 2012
Unaudited comparative analysis between 31 December 2012 (unaudited)
and 30 June 2012 (audited)
Investment property
Analysis of investment property
31 December 2012 30 June 2012
Number of Number of
R 000 properties R 000 properties
Carrying value at the
beginning of
the period 270 249 15 273 145 15
Additions 28 204 - 17 067 1
Disposals and
transfers - - (16 727) (1)
Revaluations 128 - (3 236) -
Carrying value at the
end of the period 298 581 15 270 249 15
*These balances are inclusive of a non-current asset held for sale
of R3,2 million.
Investment property has increased from R270,3 million to R298,6
million. Development costs of R28,2 million were invested in
Hertford Office Park, located in Midrand, Johannesburg.
Investments decreased from R35,0 million to R22,9 million. Sable's
10% shareholding valued at R12,1 million in a development located in
Gosforth Park, Johannesburg, was realised in the form of shares for
developable land, and has consequently been transferred to
Investment in joint ventures.
Investments in joint ventures increased by R13,5 million as a
result of a loss of R5,7 million and net loan funding outflows of
R19,2 million, comprising of the above mentioned transfer from
Investments of R12,1 million and additional net loan funding of
R7,1 million. Other current assets, which comprise of receivables and inventory,
decreased from R29,6 million to R3,7 million. The decrease is attributable to the
receipt of proceeds from Fairlands Shopping Centre of R16,5 million and the realisation
of industrial warehouse inventory of R10,8 million. Interest-bearing borrowings have increased
from R109,0 million to R119,2 million. This increase was primarily used to fund the development
at Hertford Office Park. Other current liabilities have decreased from R20,1 million to R17,2 million.
The decrease was due to the prepayment of the above mentioned inventory which was realised during the period.
Significant current developments and prospects
Joint ventures
The unbundling disposal of 63 000mý zoned industrial land situated at
Gosforth Park, Germiston, to a development company in which Sable is
a 50% co-owner, has become unconditional and final transfer of the
land is in progress. The industrial park comprises large industrial
warehousing developments within a 273 000mý industrial estate. Sable
anticipates that with active marketing underway, development activity
should begin towards the end of 2013. A further reorganisation of
Sable's assets has currently been concluded, subject to competition
commission approval, at a commercial site next to Montecasino, Fourways.
The reorganisation increases Sable's interest from 13,4% to 36,6% in two income
producing property investments as well as retaining a 12,1% interest, together with several prominent land
developers, in 40 865 mý of prime commercial land. The reorganisation is expected to be finalised by June 2013.Sable,
together with a partner, has commenced with a demolition and part redevelopment of 2 existing industrial properties
in Kyalami, Midrand. The new retail shopping centre will comprise 8400mý of national retail anchors, restaurants and line shops.
Trading within the centre is expected to commence in December 2013. Sable's 50% interest in Hertford Office Park, Midrand,
Johannesburg, has seen 3 A-grade office buildings comprising 6 138 mý completed and occupied by national tenants. The remainder
of the park comprising 25 000mý continues to be developed incrementally. Sales of retirement houses and apartments at the Retreat
in Hazeldean, Pretoria East, continue steadily with a frail care centre currently being designed.
Litigation
As previously reported, Sable received notification of an application
made to the High Court against a group company seeking to claim
compensation for alleged dealings conducted prior to 2001. The matter is being defended and the directors and group's
legal advisors consider the likelihood of action against the group company being successful, as remote. Except for the above, the directors
are not aware of any legal or arbitration proceedings active, pending or threatened against or being brought by the company, which may have a
material effect on the group?s financial position.
Dividends
The board of directors have resolved not to declare a dividend for
the period ended 31 December 2012. All cash reserves have been
earmarked for funding development and investment property
opportunities within the group.
Cautionary announcement - relating to a potential delisting of the company's
shares from the JSE Limited
As previously reported, shareholders are advised that the company's
board of directors are considering a possible delisting of the
company's shares from the JSE Limited. Any delisting proposal would
be accompanied by a cash offer (at a price verified by an independent
expert as being fair subject to directors approval) to be made to all
shareholders who wish to monetise their investment in the company.
Discussions in this regard are ongoing and accordingly shareholders
are advised to continue to exercise caution when dealing in their
shares in the company.
Related party transactions
Management fees were charged to joint ventures during the period.
Events after reporting period end Sable's board of directors are not
aware of any reportable material events that have occurred between the
end of the financial period and the date of this report.
Going concern
The financial statements have been prepared on the going concern
basis as the directors have every reason to believe that the company has adequate
resources in place to continue in operation for the foreseeable future.
For and behalf of the board
PH Nash (Chairman)
GBJ Bowes (Managing director)
26 March 2013
Directors: PH Nash (Chairman)*, GBJ Bowes (Managing), KA Haswell
(Financial), IA Chambers*, CC Froneman*, JN Snell*
(*non-executive)
(*independent)
Registered office: Sable Place, Fairway Office Park, 52 Grosvenor
Road, Bryanston, 2021. PO Box 786390, Sandton, 2146.
Transfer secretaries: Computershare Investor Services Proprietary
Limited, 70 Marshall Street, Johannesburg, 2001. PO Box 61051,
Marshalltown, 2107.
Designated Advisor:
Java Capital
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