jse top 40
Lookup >>
24/02/2012 : 12:47:02
SBV/SVN - Sabvest Limited - Abridged audited results for the year ended 31
SBV
Posted Fri, 24 Feb 2012

SBV SVN SBV SBV/SVN - Sabvest Limited - Abridged audited results for the year ended 31 December 2011 and cash dividend declaration SABVEST LIMITED Incorporated in the Republic of South Africa Registration number 1987/003753/06 "Sabvest" or "the group" or "the company" ISIN: ZAE000006417 - ordinary shares ISIN: ZAE000012043 - "N" ordinary shares Share code: SBV - ordinary shares Share code: SVN - "N" ordinary shares ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 31 December 2011 AND CASH DIVIDEND DECLARATION CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL POSITION as at 31 December 2011 31 Dec 31 Dec 2011 2010 Audited Audited R`000 R`000 Non-current assets 563 755 453 800 Property, plant and equipment 616 745 Deferred tax asset - 555 Share trust receivables 4 131 3 761 Investment holdings 559 008 448 739 Associates 403 072 329 373 Long-term investments 155 936 119 366 Current assets 18 385 41 686 Finance advances and receivables 5 943 16 532 Other financial instruments 7 727 5 899 Short-term investments 2 363 16 021 Cash balances 2 352 3 234 Total assets 582 140 495 486 Ordinary shareholders` equity 517 323 427 098 Non-current liability 49 417 55 491 Interest-bearing debt 40 000 48 124 Deferred tax liability 9 417 7 367 Current liabilities 15 400 12 897 Interest-bearing debt 7 915 5 133 Accounts payable 7 485 7 764 Total equity and liabilities 582 140 495 486 Net asset value per share - cents 1 120 922 Net asset value per share with investments in associates valuation (intrinsic value) - cents 1 563 1 230 Number of shares in issue less held in share trust/treasury - 000`s 46 172 46 320 CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS for the year ended 31 December 2011 31 Dec 31 Dec 2011 2010 Audited Audited R`000 R`000 Cash generated by operating activities 4 533 552 Cash generated by/(utilised in) investing activities 9 111 (45 054) Cash effects of financing activities (9 441) 50 359 Cash utilised for the payment of dividends (7 867) (6 939) Change in cash and cash equivalents (3 664) (1 082) Current interest-bearing debt, less cash balances, at beginning of year (1 899) (817) Current interest-bearing debt, less cash balances, at end of year (5 563) (1 899) CONSOLIDATED CONDENSED STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 December 2011 31 Dec 31 Dec 2011 2010 Audited Audited R`000 R`000 Gross income from operations and investments 115 522 100 031 Dividends received 29 302 17 208 Interest received 881 2 884 Income on financial instruments and shares 6 223 (1 166) Fees and sundry income 2 407 5 125 Fair value adjustments to Investments 21 027 21 585 Equity accounted retained income of associates 55 682 54 395 Share of net income of associates 81 631 68 752 Less: Dividends received (25 949) (14 357) Direct transactional costs 209 - Impairments 1 013 (144) Interest paid 4 741 3 892 Net income before expenses and exceptional items 109 559 96 283 Less: Expenditure 24 610 23 103 Operating costs 24 460 22 783 Depreciation 150 320 Exceptional items - losses/(gains) 692 (325) Net income before taxation 84 257 73 505 Taxation - deferred 2 606 2 849 Net income for the year attributable to equity shareholders 81 651 70 656 Translation of foreign subsidiary/ associates 2 289 (1 515) Total comprehensive income for the year attributable to equity shareholders 83 940 69 141 Earnings per share - cents 176,6 154,0 Dividends per share 20 cents (2010: 13 cents) (proposed after year-end) - cents 24,0 17,0 Weighted average number of shares in issue - 000`s 46 236 45 869 Headline earnings per share - cents 178,1 153,0 Reconciliation of headline earnings Net income for the year 81 651 70 656 Exceptional losses/(gains) - group 985 (236) Exceptional gains - associates (293) - (Gains)/losses arising from former finance operations - (89) Profit on sale of property, plant and equipment - (167) Headline earnings for the year 82 343 70 164 CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN EQUITY as at 31 December 2011 Non- distri- Accu- Share Share butable mulated capital premium reserve profit Total R`000 R`000 R`000 R`000 R`000 Balance as at 1 January 2010 867 48 874 241 789 87 541 379 071 Total comprehensive income for the year - - (1 515) 70 656 69 141 Loss in share trust - written back - - 808 - 808 Share-based payment charge - written back - - (643) - (643) Attributable income of associates - - 54 395 (54 395) - Movement in translation and other reserves of associates - - (16 081) - (16 081) Shares held in treasury (3) (362) - - (365) Shares held in share trust - written back - 1 855 - - 1 855 Shares held in share trust - (2 349) - - (2 349) Shares of "N" ordinary shares - 2 600 - - 2 600 Dividends paid - - - (6 939) (6 939) Balance as at 31 December 2010 864 50 618 278 753 96 863 427 098 Total comprehensive income for the year - - 2 289 81 651 83 940 Loss in share trust - written back - - 11 - 11 Attributable income of associates - - 55 975 (55 975) - Movement in translation and other reserves of associates - - 15 470 - 15 470 Shares held in treasury (7) (1 255) - - (1 262) Shares held in treasury - written back 3 362 - - 365 Shares held in share trust (3) (2 778) - - (2 781) Shares held in share trust - written back - 2 349 - - 2 349 Dividends paid - - - (7 867) (7 867) Balance as at 31 December 2011 857 49 296 352 498 114 672 517 323 Contingent liabilities 1. The group has rights and obligations in terms of shareholder and purchase and sale agreements relating to its present and former investments. 2. Commitments for the lease of premises are as follows: Year 1 R420 000 INVESTMENT PROFILE at 31 December 2011 Economic Carrying Intrinsic interest value value % R`000 R`000 Unlisted Industrial Associates Flowmax Holdings Limited (BVI/UK) 40,00 SA Bias Industries (Pty) Limited* 57,30 Set Point Group (Pty) Limited 49,80 Sunspray Food Ingredients (Pty) Limited 47,10 403 072 677 644 * Voting interest 48,5% Unlisted Investments Korbitec Holdings (Pty) Limited Korbicom (Pty) Limited Primedia Holdings 1 Limited - JJPIK Loans Transaction Capital (Pty) Limited 19 161 19 161 Listed Investments Ordinary shares Brait SA 1 500 000 29 925 Datatec Limited 1 000 000 40 900 Metrofile Holdings Limited 20 500 000 59 450 Net1 UEPS Technologies Inc 100 000 6 500 Other 2 363 139 138 139 138 Total portfolio 561 371 835 943 PERFORMANCE INDICATORS Compound Compound Growth Growth Growth 1 year 3 years 8 years Cents (%) (%) (%) Intrinsic net asset value per share 1 563 27,07 15,44 20,66 Dividends per share 24 41,18 19,68 29,68 Headline earnings per share 176 16,41 25,59 17,36 COMMENTARY PROFILE Sabvest is an investment group which has been listed since 1988. Its ordinary and "N" ordinary shares are quoted in the Financials - Equity Investment Instruments sector of the JSE Limited. Sabvest has significant or joint controlling interests in four unlisted industrial groups which are accounted for as associates, and a long-term portfolio of eight other investments which are accounted for on a fair value basis. Four of these are JSE-listed. In addition, Sabvest maintains finance advances and share bond and debt instrument portfolios and undertakes other fee and profit earning activities. FINANCIAL RESULTS Sabvest achieved good results for the twelve months. Headline earnings per share increased by 16% to 177 cents per share and intrinsic value per share by 27% to 1 563 cents per share. The growth in HEPS was achieved through higher attributable earnings of associates and the strong share price performance of the listed investments. Operating costs include once-off amounts totalling R3,5 million which will not recur in 2012. The increase in intrinsic value was aided by exchange gains on the group`s foreign operations and investments through SA Bias Industries and Flowmax due to the weakening of the Rand. Shareholders` funds with investments at intrinsic value increased to R722m. Net gearing reduced to 6%. Steadily increasing cash flows from the group`s industrial associates have enabled Sabvest to declare an increase in dividends of 41% to 24 cents per share. With regard to medium-term growth, Sabvest continues to exceed its performance targets. Intrinsic net asset value per share has increased at a compound rate of 21% over the past eight years, dividends per share at 29% and HEPS at 17%. PERFORMANCE AND VALUATION OF INDUSTRIAL ASSOCIATES Sabvest`s four unlisted industrial associates performed well with Sabvest`s share of their after tax income increasing by 19% to R82m. Flowmax and Sunspray recorded particularly strong results during the period and satisfactory results were achieved by Set Point and SA Bias Industries. On a look-through basis the unaudited combined revenue of the four groups for the twelve months increased by 18,4% to R1,55bn. In determining intrinsic values, Sabvest`s associates have been valued using the maintainable earnings multiple model with PE ratios in the 6,5 to 7,5 times range, adjusted for net cash or net debt in each. The valuation of associates increased by 29,6% to R677,7m year on year. CHANGES IN INVESTMENT HOLDINGS During the period, Sabvest: - Increased its holding in Brait SA to 1,5 million shares. - Disposed of its listed foreign portfolio. - Provided financial support to some of its unlisted investee companies for their growth programmes. With regard to Sabvest`s industrial associates: - Flowmax acquired DEA Engineering in the USA and 60% of Mechtronic in the UK. - Set Point Group opened a new water laboratory with 16 quality accreditations, new operating units in the WearCheck oil analysis division in Dubai and India and widened the scope of the international activities of African Mineral Standards. DIVIDENDS Dividends are determined relative to Sabvest`s own expected recurring net cash flows from investments, realisations and services over a period that are not earmarked for new investments. Dividends are considered twice annually. Dividends for the year have been increased from 17 cents to 24 cents per share. Over the past eight years dividends have been maintained or increased annually. RELATED PARTIES Related party transactions exist between subsidiaries and the holding company, fellow subsidiaries and associated companies, and comprise fees, dividends and interest. Transactions with directors relate to fees and monies lent to the group by individuals and companies controlled by the directors. BASIS OF PREPARATION These condensed consolidated annual financial statements have been prepared in accordance with the framework concepts, the recognition and measurement criteria of International Financial Reporting Standards (`IFRS`) and comply with the disclosure requirements of International Accounting Standard 34: Interim Financial Reporting as issued by the International Accounting Standards Board (`IASB`), the AC 500 standards as issued by the Accounting Practices Board, the JSE Listings Requirements and the requirements of the Companies Act No 71 of 2008, as amended. They have been prepared on the historical cost basis, except for certain financial instruments which are measured at fair value or at amortised cost. The significant accounting policies and methods of computation are consistent in all material respects with those applied in the previous financial year, except as disclosed below. The significant accounting policies are available for inspection at the Group`s registered office. There has been no material changes in judgments or estimates of amounts reported in prior reporting periods. The Group adopted the new, revised or amended accounting pronouncements as issued by the IASB, which were effective and applicable to the Group from 1 January 2011. The application of these changes however, had no impact on the Group`s financial results for the period. The preparation of these condensed consolidated financial statements was supervised by the Chief Financial Officer, R Pleaner CA(SA). AUDIT OPINION The group`s annual financial statements have been audited by the independent auditors, Deloitte & Touche, whose unmodified audit report is available for inspection at the Group`s registered office. The condensed financial information presented has been derived from the audited annual financial statements for the year ended 31 December 2011. PROSPECTS All of the group`s associates are projecting improved earnings in 2012. In addition, most of the companies in the group`s investment portfolios are expected to record improved results although the extent to which these will affect listed share prices is obviously uncertain. The group`s net operating cash flows are also expected to increase. As a result we anticipate a satisfactory year ahead. These projections have not been reviewed and reported on by the group`s external auditors. For and on behalf of the Board Haroon Habib Christopher Seabrooke Raymond Pleaner Chairman CEO CFO Sandton 24 February 2012 Cash Dividend Declaration Notice is hereby given that a final cash dividend of 20 cents (2010: 13 cents) per ordinary share and "N" ordinary share for the twelve months ended 31 December 2011 has been declared payable to shareholders in accordance with the undermentioned timetable: Last date to trade "CUM" dividend Thursday, 15 March 2012 Trading "EX" dividend commences Friday, 16 March 2012 Record date Friday, 23 March 2012 Dividend payment date Monday, 26 March 2012 No dematerialisation or rematerialisation of share certificates will be allowed for the period from Friday, 16 March 2012 to Friday, 23 March 2012, both days inclusive. Registered address: 4 Commerce Square, 39 Rivonia Road, Sandhurst, Sandton 2196 Communications: Postal address: PO Box 78677, Sandton 2146, Republic of South Africa Telephone: (011) 268 2400 Fax: (011) 268 2422 e-mail: ho@sabvest.com Transfer secretaries: Computershare Investor Services (Pty) Limited, 70 Marshall Street, Marshalltown 2001 PO Box 61051, Marshalltown 2107) Directors: H Habib# (Chairman), P Coutts-Trotter (Deputy Chairman), CS Seabrooke* (Chief Executive), CP Coutts-Trotter*, NSH Hughes#, DNM Mokhobo#, GE Nel, R Pleaner*, BJT Shongwe# *Executive #Independent Sponsor: Rand Merchant Bank (A division of FirstRand Bank Limited) www.sabvest.com Date: 24/02/2012 12:47:01 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.


Video

Latest SENS






















28.11.2013 04:45pm BK ONE LIMITED - Trading update