Imara Holdings (Botswana) HY 2011 financial results

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Imara Holdings (Botswana) HY 2011 financial results

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Imara Holdings (Botswana) HY 2011 financial results

  1. 1. ABRIDGED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Un-audited Un-audited Period Audited Six months ended Six months ended on period Year ended 31 October 2010 31 October 2009 change 30 April 2010 Pula Pula % Pula Revenue 47,220,384 44,794,287 5% 92,808,907 Cost of services sold (8,158,116) (7,578,469) 8% (14,589,090) Gross profit 39,062,268 37,215,818 5% 78,219,817 Other income 2,515,783 4,632,254 -46% 5,032,298 Operating expenses (44,980,888) (40,994,349) 10% (82,266,563) Finance costs (101,269) (33,005) 207% (162,392) (Loss)/Income from associate (371,236) 1,664,481 -122% 1,921,454 Impairment on investment in associates (22,591) - (581,416) (Loss) / profit before taxes (3,897,933) 2,485,199 -257% 2,163,198 Taxation (544,448) (2,096,992) -74% (1,662,469) (Loss) / profit for the year (4,442,381) 388,207 -1244% 500,729 Other comprehensive income (697,642) 5,934,462 -112% 5,934,462 Total comprehensive income for the year net of tax (5,140,023) 6,322,669 -181% 6,435,191 (Loss) / profit for the year Attributable to: Equity holders of the parent (5,037,413) 61,979 246,765 Minority interest 595,032 326,228 253,964 (4,442,381) 388,207 500,729 Total comprehensive income for the year. Attributable to: Equity holders of the parent (5,735,055) 5,996,441 6,181,227 Minority interest 595,032 326,228 253,964 (5,140,023) 6,322,669 6,435,191 EARNINGS PER SHARE: Earnings per share - Basic thebe (0.076) 0.110 0.430 Earnings per share - Diluted thebe (0.074) 0.106 0.420 ABRIDGED CONSOLIDATED STATEMENT OF FINANCIAL POSITION Un-audited Un-audited Audited As at As at As at 31 October 2010 31 October 2009 Change 30 April 2010 Pula Pula % Pula ASSETS Non-currrent Assets Equipment 3,473,077 3,219,894 3,612,333 Goodwill 527,041 95,666 527,837 Intangible assets 340,641 519,478 438,487 Investment in associate 13,037,965 9,537,596 12,188,060 Available-for-sale-financial assets 9,170,911 6,555,111 8,475,145 Deferred tax asset 3,327,160 1,138,668 3,251,286 29,876,795 21,066,413 42% 28,493,148 Current Assets Listed trading securities 9,955,593 9,957,343 9,231,792 Trade and other receivables 135,030,949 87,436,420 82,312,674 Cash and cash equivalents 76,944,710 88,433,796 123,400,183 Tax refundable 411,833 1,373 661,444 222,343,085 185,828,932 20% 215,606,093 TOTAL ASSETS 252,219,880 206,895,345 22% 244,099,241 EQUITY AND LIABILITIES Equity Stated capital 48,532,981 46,106,883 48,532,981 Non-distributable reserves 17,234,252 10,525,074 17,931,894 Distributable reserves 68,342,410 74,167,772 74,352,559 Total shareholders equity 134,109,643 130,799,729 3% 140,817,434 Minority interest 2,598,917 653,361 2,003,885 Total equity 136,708,560 131,453,090 4% 142,821,319 Non - current Liabilities Interest bearing loans and borrowings - 1,980,253 - Deferred taxation 1,598,116 29,644 1,577,366 1,598,116 2,009,897 -20% 1,577,366 Current Liabilties Trade, other payables and provisions 79,603,649 64,942,168 90,973,592 Listed trading securities sold short 31,138,649 8,117,096 6,537,578 Interest bearing loans and borrowings 3,145,128 10,145 2,173,893 Tax payable 25,778 362,949 15,493 113,913,204 73,432,358 55% 99,700,556 Total liabilities 115,511,320 75,442,255 101,277,922 TOTAL EQUITY & LIABILTIES 252,219,880 206,895,345 22% 244,099,241 Transfer Secretaries: Corpserve Botswana, First Floor, Block A, Unit 3, Plot 117 Millennium Office Park, GABORONE, Telephone 393 2244: email: corpserve@info.bw Directors: SM Ndoro (Chairman), MJS Tunmer (Chief Executive Officer), AR Fleming GE Johns, JR Legat, ACH Mackeurtan, RH Macleod, L Maine, DE Stone. The Directors of Imara Holdings Limited have the pleasure in announcing the un-audited consolidated financial results of the Group for the six months ended 31 October 2010 ABRIDGED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME IMARA HOLDINGS LIMITED ANNOUNCEMENT OF UN-AUDITED INTERIM GROUP RESULTS FOR THE SIX MONTHS ENDED 31 OCTOBER 2010 Un-audited Un-audited Audited Six months ended Six months ended Year ended 31 October 2010 31 October 2009 30 April 2010 Pula Pula Pula Profit from operating activities (3,897,933) 2,485,199 2,163,198 Adjustment to operating profit (921,369) (2,521,960) (1,278,631) Operating cash flows before working capital changes (4,819,302) (36,761) 884,567 Working capital changes (40,207,387) (4,711,101) 25,264,420 Income tax paid (339,673) (1,949,209) (3,992,173) Net cash flows from operating activities (45,366,362) (6,697,071) 22,156,814 Cash flows from investing activities 1,074,367 (2,022,960) 3,615,891 Cash flows from financing activities (101,269) (616,382) (109,245) Net (decrease) / increase in cash and cash equivalents (44,393,264) (9,336,413) 25,663,460 Cash and cash equivalents at the beginning of the period 123,400,183 101,512,633 101,512,633 Exchange rate differences on cash and cash equivalents (2,062,209) (3,742,424) (3,775,910) Cash and cash equivalents at the end of the period 76,944,710 88,433,796 123,400,183 Analysed as follows: Cash and bank 60,681,226 57,583,341 84,409,809 Short term investments 16,263,484 30,850,455 38,990,374 Net cash and cash equivalents 76,944,710 88,433,796 123,400,183 ABRIDGED STATEMENT OF CHANGES IN EQUITY As at 31 October Stated Non-distributable Distributable Minority TOTAL capital reserves reserves interest Balance at 1 May 2009 44,909,348 10,312,300 76,946,281 327,132 132,495,061 Total comprehensive income - 5,934,462 246,765 253,964 6,435,191 Issuance of new shares 3,623,633 - - - 3,623,633 Movement for the year - 1,685,132 (2,840,487) 1,422,789 267,434 Balance at 30 April 2010 48,532,981 17,931,894 74,352,559 2,003,885 142,821,319 Balance at 1 May 2010 48,532,981 17,931,894 74,352,559 2,003,885 142,821,319 Total comprehensive income - (697,642) (5,037,413) 595,032 (5,140,023) Issuance of new shares - - - - - Movement for the year - - (972,736) - (972,736) Balance at 30 October 2010 48,532,981 17,234,252 68,342,410 2,598,917 136,708,560 BASIS OF PREPARATION OF FINANCIAL STATEMENTS The consolidation financial statements of the Group have been prepared on a going concern basis in accordance with International Financial Reporting Standards (IFRS), which comprise standards approved by the International Accounting Standards Boards, (IASB), and interpretations approved by the International Financial Reporting Interpretations Committee, (IFRIC), and the applicable requirements of the Botswana Companies Act, 2003. The financial statements have been prepared on an historical cost basis except for certain financial instruments that are carried at fair value. COMMENTARY The period under review has produced disappointing results with a loss of P5.14 million in total comprehensive income, despite a 5% increase in revenue. This confirms our cautious outlook at year end, and the subsequent trading statement advising that performance in the first half of the year could be below expectation. It must however, be noted that the loss includes certain non-recurring expense items namely rebranding and a share of prior year losses in our Malawi associate totaling P1.62 million. In addition adverse exchange rate movements resulted in an accounting loss of P2.06 million and further delays in the opening of the Stock Exchange in Angola has meant no revenue and ongoing costs.Whilst these factors have added to the quantum of the reported loss, the earnings trend remains a concern. Although cash and cash equivalents reflect a decline of P46.46 million to P76.94 million, a substantial portion of this is attributable to normal working capital movements in the South African stock broking business, while the exchange losses are a non cash item. The increased equity stake in the Mauritius Trust business was funded in cash at a cost of P1.23 million in September 2010. Shareholders` equity registered a marginal increase from the previous year. Management continues to focus on loss making businesses together with a critical review of operating costs, future acquisitions and capital expenditure. A comprehensive review of the Group structure is underway aimed at simplifying the structure, reducing administrative costs and improving tax efficiencies. It is pleasing to note that the Asset Management Division continues to perform well and is ahead of budget and the prior year. We have witnessed stagnant performance in the Stockbroking Division although in recent months there has been increased activity from both institutional and foreign investors across most markets. In South Africa, the Futures Desk continues to perform well. Corporate Finance remains disappointing in spite of an active deal pipeline. Cost containment strategies in this Division are working although top line revenue has remained subdued as the time taken to close mandates continues to increase. The Group rebranding exercise, which has been very well received by both staff and clients alike, is substantially complete. OUTLOOK As to the future, the trend of stronger second half earnings should continue in line with previous years. Notwithstanding the poor interim earnings performance your Board does not believe that a comprehensive change in Group strategy is warranted at this time. Cash preservation remains a key focus as management works to improve the earnings performance of the Group against a backdrop of continued uncertainties in world economies and the possibility of a further slowing in business activity. GOVERNANCE AND DIRECTORATE Mr Gunter Steffens OBE has been appointed as a non-executive director of the Company, subject to regulatory approval. As a former international banker, his appointment will further strengthen the Board, and will improve the balance between executive and non-executive directors. For & on behalf of the Board of Directors SM Ndoro DE Stone Chairman Company Secretary

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