Imara Holdings (Botswana) HY 2010 financial results


Published on

Imara Holdings (Botswana) HY 2010 financial results

Published in: Investor Relations
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Imara Holdings (Botswana) HY 2010 financial results

  1. 1. Company registration number: CO 2002 / 3377 Registered in the International Financial Services Centre: Tax certificate number 22 Listed on the Venture Capital Market board of the Botswana Stock Exchange -“Imara” ANNOUNCEMENT OF UN-AUDITED INTERIM GROUP RESULTS FOR THE SIX MONTHS ENDED 31 OCTOBER 2009 The Directors of Imara Holdings Limited have pleasure in announcing the un-audited consolidated financial results of the Group for the six months ended 31 October 2009. CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY As at 31 October 2009 Stated Non-distributable Distributable Minority capital reserves reserves interest TOTAL Pula Pula Pula Pula Pula Balance at beginning of the period 44,909,348 10,312,300 76,946,281 327,132 132,495,061 Current period movement 1,197,535 212,774 - 1,410,309 Profit for the period - - 61,978 326,229 388,207 Dividends paid - - (2,840,487) (2,840,487) Balance at end of the period 46,106,883 10,312,300 74,380,546 653,361 131,453,090 SALIENT FEATURES - Revenue down 17%; - Attributable earnings decreased by 94% to P 388 000; - Exchange rate losses for the period of P3,9 million; - Attributable earnings adjusted for exchange rate losses of P 4,2 million; - Positive profit contribution from associate companies; - Cash & cash equivalents still strong at P 88 million; - Signs of sustainable recovery more apparent. CONDENSED CONSOLIDATED INCOME STATEMENT Un-audited Un-audited Period Audited Six months ended Six months ended on period Year ended 31 October 2009 31 October 2008 change 30 April 2009 Pula Pula % Pula Continuing operations: Total revenue 51,091,022 61,561,267 (17) 108,232,403 Total expenses (48,562,294) (53,154,894) (9) (99,586,488) Profit before taxation 2,528,728 8,406,373 (70) 8,645,915 Taxation (2,096,992) (2,305,215) (9) (2,926,805) Profit for the period from continuing operations 431,736 6,101,158 (93) 5,719,110 Discontinued operations: Loss after tax for the period from discontinued operations (43,529) - (45,332) Profit for the year 388,207 6,101,158 (94) 5,673,778 Attributable earnings: Attributable to equity holders of the parent 61,979 6,106,782 (99) 5,679,402 Minority interest 326,228 (5,624) (5,901) (5,624) Profit after taxation - per above 388,207 6,101,158 (94) 5,673,778 Earnings per share: Number Number Number Shares in issue at end of reporting period 57,218,297 56,771,576 56,778,236 Weighted number of shares in issue - basic 56,884,913 55,761,433 56,394,055 Weighted number of shares in issue - diluted 58,561,183 57,395,706 58,120,310 Thebe Thebe Thebe Earnings per share - All operations: - Basic 0.001 0.110 (99) 10,2 - Diluted 0.007 0.106 (94) 9,9 Earnings per share - Continuing operations: - Basic 0.007 0.109 (94) 10,1 - Diluted 0.007 0.106 (94) 9,8 CONDENSED CONSOLIDATED BALANCE SHEET Un-audited Un-audited Period Audited At 31 October 2009 At 31 October 2008 on period At 30 April 2009 Pula Pula change Pula % ASSETS: Non-current assets: Equipment 3,219,894 3,694,993 3,470,742 Goodwill 95,666 89,584 96,210 Intangible assets 519,478 499,800 615,147 Investment in associates 9,537,596 2,712,265 2,246,312 Available for sale financial assets 6,555,111 5,633,300 5,832,270 Deferred tax asset 1,138,668 954,949 1,176,696 21,066,413 13,584,891 55 13,437,377 Current assets: Cash & cash equivalents 88,433,796 110,693,262 101,512,702 Listed trading securities 1,840,247 358,366 3,953,387 Trade and other receivable 87,436,420 25,917,895 89,559,076 Tax refundable 1,373 2,149,356 1,916 177,711,836 139,118,879 28 195,027,081 Total assets 198,778,249 152,703,770 30 208,464,458 EQUITY AND LIABILITIES: Equity: Stated capital 46,106,883 44,900,012 44,909,348 Non-distributable reserves 10,525,074 6,184,562 10,312,300 Distributable reserves 74,167,772 78,198,208 76,946,281 Total shareholders’equity 130,799,729 129,282,782 1 132,167,929 Minority interest 653,361 417,598 327,132 Total equity 131,453,090 129,700,380 1 132,495,061 Non-current liabilities: Interest bearing borrowings 1,980,253 - 915,017 Deferred taxation 29,644 7,525 125,445 Total non-current liabilities 2,009,897 7,525 1,040,462 Current liabilities: Trade and other payables 64,085,842 20,714,241 72,892,116 Listed trading securities- sold short - - 140,624 Provisions 856,326 1,621,102 1,722,387 Current portion - interest bearing borrowings 10,145 9,149 15,806 Tax payable 362,949 591,184 157,933 Bank overdraft - 60,189 69 Total current liabilities 65,315,262 22,995,865 184 74,928,935 Total liabilities 67,325,159 23,003,390 193 75,969,397 Total equity and liabilities 198,778,249 152,703,770 30 208,464,458 CONDENSED CASH FLOW STATEMENT Un-audited Un-audited Audited Six months ended Six months ended Year ended 31 October 2009 31 October 2008 30 April 2009 Pula Pula Pula Cash flows from operating activities (10,439,495) 85,139,873 65,360,338 Cash flows from investing activities (2,022,960) 2,192,905 12,316,051 Cash flows from financing activities (616,382) (12,472,682) (13,215,145) Movement in cash or cash equivalents (13,078,837) 74,860,096 64,461,244 Cash and cash equivalents at beginning of the period 101,512,633 35,772,977 37,051,389 Cash and cash equivalents at end of the period 88,433,796 110,633,073 101,512,633 Cash and cash equivalents comprise: Cash and equivalents 88,433,796 110,693,262 101,512,702 Bank overdraft - (60,189) (69) 88,433,796 110,633,073 101,512,633 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. CAUTIONARY ANNOUNCEMENT The company has been trading under a“Cautionary Announcement”since 31 July 2009. Negotiations relating to a regional acquisition are ongoing and shareholders are therefore advised to continue to exercise caution in dealing in their Imara shares. COMMENTARY Your company has emerged from the global meltdown stronger than anticipated. On a headline basis, revenue and earnings for the first six months of the current financial year were down 17% and 93% respectively compared with the prior period. The precautionary measures implemented earlier this year have been effective in minimizing the downside risks for the period under review. However, conventional comparisons with the corresponding period a year ago are not particularly illuminating in this case, as the six months ended 31 October 2008 were near peak earnings, whereas we temporarily moved into a loss making situation in the second half of the year. Cognizant of the difficult global operating environment, a primary test for the Group’s first half performance has been protecting capital for future growth and building stakeholder confidence without taking unreasonable risks. In this respect, moving back into profit in the first half of this financial year is encouraging and, were it not for an unrealized foreign exchange loss of P3.9 million, on our non-Pula cash holdings, we would have reported a respectable profit of P4.27 million which compares with P5.67 million recorded for the prior period. A close examination of our trading conditions clearly suggests we are entering a period of renewed growth and sustainable earnings. Our Stockbroking Division has recovered strongly especially on the futures side, while fund inflows and market movements have increased our funds under management beyond budget where the full earnings impact will be seen in the second half. This“endowment”effect should be reinforced by the introduction of a new institutionally orientated country fund and some other initiatives. Our“feast or famine”Corporate Finance Division still remains problematic but some creative measures to reduce costs, together with some new initiatives, should see a turnaround in due course. The merger of our trust business with Beresford Trust and Corporate Services in Mauritius, to create a new associate company, Imara Beresford International Limited, has already positively impacted earnings for the Trust Division and prospects for the second half of this financial year are encouraging. In summary, the cyclical picture for our business has improved significantly and now the earnings risk or surprises are clearly very much on the upside. OUTLOOK In the meantime, our strategic development remains completely on track, and, if anything, has been reinforced by the improvement in our competitive position as the global crisis took its toll of some market participants. In the last three months, we have expanded our geographic footprint and deepened our businesses with the merger of our trust business in Mauritius and the acquisition of equity stakes in stockbrokers in Zambia and Botswana. Finally, we have emerged from the worst financial crisis for over 80 years relatively unscathed, our business intact with no financial accidents that typically occur during these turbulent periods, a credit to our compliance, internal audit and risk management systems. Our balance sheet is strong, opportunities abound and we look forward to reporting favourable developments in due course. DIRECTORATE At the Annual General Meeting of the company held on 29 September 2009, Philip Gray stood down as Chairman but will continue to serve as a non-executive director. He has been replaced as Chairman of the company by Mike Ndoro. Roger Matthews retired as a non-exexcutive director at the Annual General Meeting, having served on the board since 2003. DIVIDEND The Board of Directors, in line with current dividend policy, have recommended that no interim dividend be declared in respect of the six months ended 31 October 2009. For & on behalf of the Board: Registered Offices: Transfer Secretaries: Union Provident Trust Corpserve Botswana First Floor, Time Square, Plot 134 First Floor, Block A, Unit 3, Plot 117 Independence Avenue Millennium Office Park, Kgale Hill, Gaborone Gaborone Directors: SM Ndoro (Chairman), MJS Tunmer (Chief Executive Officer), AR Fleming, PJS Gray, JR Legat, RH Macleod, ACH Mackeurtan, DE Stone