ANNOUNCEMENT OF GROUP RESULTS FOR THE YEAR ENDED 30 APRIL 2009
The Directors of Imara Holdings Limited have pleasure in an...
Upcoming SlideShare
Loading in …5
×

Imara Holdings (Botswana) FY 2009 financial results

192 views

Published on

Imara Holdings (Botswana) FY 2009 financial results

Published in: Investor Relations
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
192
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Imara Holdings (Botswana) FY 2009 financial results

  1. 1. ANNOUNCEMENT OF GROUP RESULTS FOR THE YEAR ENDED 30 APRIL 2009 The Directors of Imara Holdings Limited have pleasure in announcing the audited financial results of the Group for the twelve months ended 30 April 2009. SALIENT FEATURES AND HIGHLIGHTS Revenue Decreased by 43% to P 102.34 million Attributable earnings Decreased by 90% to P 5.77 million Operating earnings after adjusting for“special”items** Increased by 362% Profit after tax Decreased to P 5.67 million Return on equity 4% Diluted earnings per share 10 thebe Year on year increase in cash and cash equivalents P 64.46 million Free cash flow per share Increased from P 0.18 to P 1.20 Ordinary dividend per share 3 thebe Redemption calls on various Imara Africa Funds were met with no conditionality FIVE YEAR FINANCIAL HIGHLIGHTS 2009 2008 2007 2006 2005 Revenue P 000’s 102 336 178 967 127 481 57 680 30 368 Attributable earnings P 000’s 5 770 56 449 48 143 9 816 47 Diluted earnings per share thebe 10 100 90 19 0.4 Dividend yield –ordinary dividend % 0.67 2.26 5.60 6.67 - Shareholders’equity P 000’s 132 168 139 098 91 713 55 983 21 537 Total assets P 000’s 208 464 257 229 172 683 106 330 37 829 Return on equity % 4 41 52 18 0.2 ABRIDGED CONSOLIDATED INCOME STATEMENT Year ended 30 April 2009 2008 % CONTINUING OPERATIONS: Pula Pula change Revenue 102 335 955 178 967 238 (43) Costs of services sold (15 817 000) (16 495 102) Gross profit 86 518 955 162 472 136 (47) Other income 5 756 530 2 399 359 Operating expenses (83 011 032) (98 429 985) Finance costs (758 456) (458 599) Income from associate 139 918 92 529 Profit before taxes 8 645 915 66 075 440 (87) Taxation (2 926 805) (9 692 211) Profit for the year from continuing operations 5 719 110 56 383 229 DISCONTINUED OPERATIONS: Loss for the year from discontinued operations (45 332) (801 576) Profit for the year 5 673 778 55 581 653 (90) Attributable to: Equity holders of the parent 5 769 867 56 449 140 (90) Minority interest (96 089) (867 487) Profit for the year- as above 5 673 778 55 581 653 (90) EARNINGS PER SHARE: 2009 2008 thebe thebe Earnings per share - Basic 10.2 103 Earnings per share - Diluted 10.1 100 Earnings per share from continuing operations: Earnings per share - Basic 9.9 100 Earnings per share - Diluted 9.8 101 Special dividend per share - 17 Ordinary dividend per share 3 19 Total dividend per share 3 36 Notes: 1. Discontinued Operations – In November 2007 a decision was taken to discontinue the operations of Imara Asset Management Botswana (Pty) Limited. The company is dormant and its results are separately disclosed as “Discontinued Operations”. ABRIDGED CONSOLIDATED BALANCE SHEET As at 30 April 2009 2008 % Pula Pula change ASSETS Non-current Assets Equipment 3 470 742 3 821 393 Goodwill & intangible assets 711 357 900 217 Investment in associate 2 246 312 2 712 265 Available-for-sale financial assets 5 832 270 8 714 677 Deferred tax asset 1 176 696 857 748 13 437 377 17 006 300 (21) Current Assets Listed trading securities 3 953 387 4 116 788 Trade and other receivables 89 559 076 188 382 152 Cash and cash equivalents 101 512 702 44 884 280 Tax refundable 1 916 2 839 866 195 027 081 240 223 086 (19) TOTAL ASSETS 208 464 458 257 229 386 (19) EQUITY AND LIABILITIES Equity Stated capital 44 909 348 37 111 325 Non-distributable reserves 10 312 300 9 650 370 Distributable reserves 76 946 281 92 336 185 Total shareholders’equity 132 167 929 139 097 880 (5) Minority interest 327 132 423 221 Total equity 132 495 061 139 521 101 (5) Non - current liabilities Interest bearing loans and borrowings 915 017 15 739 Deferred taxation 125 445 7 525 1 040 462 23 264 Current Liabilities Trade, other payables and provisions 74 614 503 107 578 614 Listed trading securities sold short 140 624 577 218 Interest bearing loans and borrowings 15 806 10 020 Tax payable 157 933 407 866 Bank overdraft 69 9 111 303 74 928 935 117 685 021 (36) Total liabilities 75 969 397 117 708 285 TOTAL EQUITY & LIABILITIES 208 464 458 257 229 386 (19) ABRIDGED CONSOLIDATED CASH FLOW STATEMENT Year ended 30 April 2009 2008 Pula Pula Profit from operating activities 8 600 583 65 273 864 Adjustments to operating profit (6 994 618) (13 376 100) Operating cash flows before working capital changes 1 605 965 51 897 764 Working capital changes 65 582 499 (27 171 435) Income tax paid (1 828 126) (20 114 354) Net cash flows from operating activities 65 360 338 4 611 975 Cash flows from investing activities 12 316 051 11 707 059 Cash flows from financing activities (13 215 145) (6 500 843) Net increase in cash and cash equivalents 64 461 244 9 818 191 Cash and cash equivalents at beginning of year 35 772 977 25 862 634 Exchange rate differences on cash and cash equivalents 1 278 412 92 152 Cash and cash equivalents at end of year 101 512 633 35 772 977 Analysed as follows: Cash, bank and short term investments 101 512 702 44 884 280 Bank overdraft (69) (9 111 303) Net cash and cash equivalents 101 512 633 35 772 977 ABRIDGED STATEMENT OF CHANGES IN EQUITY Stated Non-distributable Distributable Minority Capital Reserves Reserves Interest TOTAL Balance at 1 May 2007 29 807 821 11 362 928 50 541 896 (289 096) 91 423 549 Issuance of ordinary shares 7 303 504 - - - 7 303 504 Movement for the year - (1 712 558) - 1 579 804 (132 754) Profit / (loss) for the year - - 56 449 140 (867 487) 55 581 653 Dividends paid - - (14 654 851) - (14 654 851) Balance at 30 April 2008 37 111 325 9 650 370 92 336 185 423 221 139 521 101 Balance at 1 May 2008 37 111 325 9 650 370 92 336 185 423 221 139 521 101 Issuance of ordinary shares 7 798 023 - - - 7 798 023 Current year movement - 661 930 - - 661 930 Profit / (loss) for the year - - 5 769 867 (96 089) 5 673 778 Dividend paid to BEE partners - - (915 012) - (915 012) Dividends paid - - (20 244 759) - (20 244 759) Balance at 30 April 2009 44 909 348 10 312 300 76 946 281 327 132 132 495 061 BASIS OF PREPARATION OF FINANCIAL STATEMENTS The consolidated 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 Board, (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 & OUTLOOK Our cautious outlook announced at the interim stage and the subsequent trading statement advising that the performance in the second half year could be particularly disappointing was prescient, but with the benefit of hindsight, perhaps understated. In the event headline net profit fell approximately 90% to Pula 5.77 million. However in light of the global carnage in the banking and financial services sector, we at least continued to trade profitably and our return on equity was the same as the U.S. Treasury bond yield. In addition our 2008 results were grossly distorted by Pula 55.2 million of performance fees from our Imara Africa funds. It is a mute and highly debatable point, whether performance fees are special, exceptional or non-recurring for a financial services group and perhaps we should let shareholders adjudicate on this issue. However looking at our“core earnings”and stripping out the performance fees component, our 2009 results actually increased by 362%, a credible performance under the circumstances. Furthermore our cash and cash equivalent figures more than doubled from Pula 44.9 million to Pula 102 million, not only a source of considerable comfort in the cash struck world but a valuable war chest for potential acquisitions. On the trading front all the themes identified in previous statements struck with a vengeance. Our stable of Imara Africa funds were hit by a massive wave of redemptions, part of the global“dash for cash”forcing us to sell in a rapidly falling illiquid market. However unlike many competitors we did not, have to resort to trading suspensions, rationing, or technical tricks such as side pockets and our investors were particularly grateful and the industry duly impressed. As expected corporate finance markets simply disappeared as corporate decision making froze and executives hunkered down in crisis mode. As a result our corporate finance division recorded a loss. Although JSE trading activity fell sharply, especially on the futures side, our stockbroking division did remarkably well and recorded decent profits. In addition our risk management system proved to have successfully coped with the extreme stress testing this vicious bear market provided and we avoided nasty trading mistakes, client defaults etc. that typically occur in these troubled times. As to the future outlook we are, perhaps counter-intuitively, more optimistic than we have been for some years. Although our last budget exercise, done in a doom and gloom environment, suggested a small profit for the current year, the outlook has changed dramatically in recent months. Inflows into our Imara Africa Funds have accelerated sharply and funds under management are already substantially ahead of budget helped by selected stockmarket recoveries. In the mean time our stock broking division recently enjoyed a record month and our corporate finance division has significantly reduced their cost base through some highly creative measures which maintains their core competencies and skill set which is already gratifyingly being called upon again as conditions improve and mandates start to reappear. In conclusion your company, with a strong balance sheet, is in sound financial shape and is completely on track with its strategic mission. Notwithstanding the difficult market conditions, we have continued to expand our African foot print and business base with some exciting initiatives in Angola, Mauritius and Zambia. On the earnings front we suspect that all the risk is now on the upside and whilst clearly premature we could be particularly and pleasantly surprised by year end especially if, for example, the conditions in Zimbabwean capital markets continue their dramatic recovery. DIRECTORATE M. Mothibatsela resigned as a non-executive director on 12 August 2008. GE Johns was appointed as a non-executive director on 26 November 2008. DIVIDEND DECLARATION Notice is hereby given that the Board has declared an ordinary dividend, in respect of the year ended 30 April 2009, as follows: An ordinary dividend of 3 thebe per share, payable either in cash or scrip at the election of each shareholder, to all shareholders registered in the books of the company as at 21 August 2009. A Form of Election containing details of the scrip offer will be sent to shareholders by no later than 28 August 2009. In terms of the Botswana Income Tax Act (Chapter 50:01) as amended, withholding tax of 15%, unless varied by a Double Taxation Agreement, or any other currently enacted tax rate will be deducted, where applicable, from the gross dividend payable to shareholders. Withholding tax is applied to the ordinary dividend, to either the cash or scrip dividend payment. SHAREHOLDERS’DIARY Important dates pertaining to this dividend are: Declaration date 22 July 2009 Announcement of Group results and dividend declaration 30 July 2009 Last date to register 21 August 2009 Details of scrip dividend offer & Form of Election circulated to shareholders by no later than 28 August 2009 Latest time and date for receipt of Forms of Election 18 September 2009 Share certificates or cheques and dividend warrants mailed by 2 October 2009 For & on behalf of the Board of Directors PJS Gray DE Stone Chairman Company Secretary Transfer Secretaries: Corpserve – Botswana First Floor, Block A, Unit 3, Plot 117, Millennium Office Park, GABORONE Telephone 393 2244 : email: corpserve@info.bw Directors: PJS Gray (Chairman), MJS Tunmer (Chief Executive Officer), AR Fleming, GE Johns, JR Legat, ACH Mackeurtan, RH Macleod, RR Matthews, SM Ndoro, DE Stone For the year ended 30 April ** Operating earnings after adjusting for“special”items: Relates to Group earnings adjusted for performance fees earned in 2008 in the Asset Management Division and the extraordinary profit generated from the disposal of available- for-sale financial assets in the Stockbroking Division in 2007, as detailed in the table below. 2009 2008 2007 2006 2005 Attributable earnings P 000’s 5 770 56 449 48 143 9 816 47 Special items P 000’s - (55 199) (18 636) - - Operating profit after adjusting for special items** P 000’s 5 770 1 250 29 507 9 816 47

×