FSG Ltd HY 2013

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FSG Ltd HY 2013

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FSG Ltd HY 2013

  1. 1. The Directors take pleasure in presenting the consolidated results of FSG Limited (“Group”) for the half year ended 30 June 2013   PERFORMANCE HIGHLIGHTS:   - Group Revenue increased by 14% to P52.1 million; - Group Profit before tax increased by 9% to P14.0 million; - Income from insurance package scheme increased by 16% to P16.7 million; - Operations continued to be expanded in Botswana and Zambia; - Earnings per share increased by 21% OPERATIONS:   Botswana The Group’s performance has been encouraging and both revenue and profit before tax saw a reasonable growth in the first half year ending 30th June 2013. Effective 1st January 2013, the Group restructured its operations into six Business Units namely manufacturing, funeral services, assurance, properties, private cemeteries and offshore investments: each of which is now administered distinctly as a profit centre.   During this period, the newly established Kasane branch was reconfigured and refurbished to FSG standards and it was officially opened in July 2013.This accords the Group further penetration in the Northern region.   Construction of a brand new branch in Palapye is in progress and it is expected to be fully operational by end of 2013.   The Group continues to invest in modernizing its infrastructure and fleet to maintain its lead position in delivering world class services in the funeral services industry.   Zambia The growth in Zambia is satisfactory. A new branch in Ndola was opened in January 2013. Progress is being made towards establishing a new branch in Kitwe in the first quarter of 2014. The Group is positioning itself to become a significant market player in Zambia over the next few years. Prospects The directors are confident that the growth in the Group will continue in the second half of the year.   DIVIDEND: The directors have resolved to declare an interim gross dividend of 5 (five) thebe per share payable on 25 October 2013, to members on the registered on or before 11 October 2013.   For and on behalf of the Board     --------------------------------- --------------------------------- Daniel Neo Moroka Milivoje Nikolic Chairperson of the Board Group Managing Director 18 September 2013 Directors: D N Moroka (Chairman), M Nikolic* (Group Managing Director), L S Nikolic, J A Burbidge**, J Bookbinder# (resigned 12 March, 2013) K Maphage, C Lesetedi-Letegele (*Serbian, **British, #Canadian) UNAUDITED GROUP FINANCIAL RESULTS For the half-year ended 30 June 2013 Private Bag BO 211 Gaborone Botswana Tel: +267 392 2074 Fax:+267 392 2074 www.fsg.co.bw Group accounting policies and basis of preparation These financial results have been extracted from the financial statements which have been prepared in accordance with International Financial Reporting Standards (IFRS) and in compliance with the Companies Act of Botswana (Companies Act, 2003). The accounting policies applied are consistent with those applied in prior period. The financial statements have been prepared on the historical cost basis. The results are presented in Botswana Pula and all values are rounded to the nearest thousands, except where otherwise indicated. STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 30 JUNE 2013 (P’000 ) Stated Revaluation Equity-settled Reserve Foreign Retained Attributable to Non-controlling Total capital reserve employee arising on currency Earnings owners of interests benefit partial disposal translation the company reserve of subsidiary reserve Balance at 1 January 2012 68,301 26,044 1,224 (237 ) (318 ) 49,317 144,332 289 144,621 Total comprehensive income/ (loss) for the year - 6,557 - - 225 26,758 33,540 (61 ) 33,479 Transfer to retained earnings on disposal of revalued property, plant and equipment - (631 ) - - - 631 - - - Transfer from equity-settled employee benefit reserve to stated capital on issue of shares 1,224 - (1,224 ) - - - - - - Dividends paid - - - - - (10,879 ) (10,879 ) - (10,879 ) Balance at 31 December 2012 69,525 31,970 - (237 ) (93 ) 65,827 166,993 228 167,221 Total comprehensive income/ (loss) for the period - - - - 176 11,750 11,926 (166 ) 11,760 Transfer to retained earnings on disposal of revalued property, plant and equipment - (619 ) - - - 619 - - - Transfer from deferred tax to retained earnings on disposal of revalued property, plant and equipment - - - - - 136 136 - 136 Dividends paid - - - - - (7,252 ) (7,252 ) - (7,252 ) Balance at 30 June 2013 69,525 31,351 - (237 ) 83 71,080 171,803 62 171,865 SEGMENT INFORMATION FOR THE HALF-YEAR ENDED 30 JUNE 2013 (P’000 ) Botswana Zambia South Africa Intersegment Totals eliminations Revenue from external customers 46,151 5,975 - - 52,126 Intersegment revenues 1,190 - - (1,190 ) - Investment revenue 1,593 14 - (167 ) 1,440 Finance costs (56 ) (144 ) (23 ) 167 (56 ) Depreciation (2,171 ) (370 ) - - (2,441 ) Income tax (3,351 ) 476 35 402 (2,438 ) Profit for the period 12,453 (554 ) (115 ) (201 ) 11,583 Reportable segment assets 203,340 11,087 607 (8,549 ) 206,485 Additions to segment non current assets 5,173 1,899 - 7,072 Segment liabilities (31,410 ) (10,803 ) (905 ) 8,499 (34,619 ) FOR THE HALF-YEAR ENDED 30 JUNE 2012 Revenue from external customers 41,821 3,817 - - 45,638 Intersegment revenues 5,405 - - (5,405) - Investment revenue 2,139 - 148 (1,723) 564 Finance costs (1,320 ) (569) (19 ) 1,723 (185 ) Depreciation (1,895 ) (272) - - (2,167 ) Income tax (3,189 ) (141) 7 (4 ) (3,327 ) Profit for the period 10,096 (670) (25 ) 93 9,494 Reportable segment assets 228,580 16,777 612 (71,934 ) 174,035 Additions to segment non current assets 3,844 187 - - 4,031 Segment liabilities (43,133 ) (16,375 ) (753 ) 34,260 (26,001 ) FOR THE YEAR ENDED 31 DECEMBER 2012 (AUDITED) Revenue from external customers 89,674 8,230 - - 97,904 Intersegment revenues 2,395 - - (2,395 ) - Investment revenue 2,398 53 - (716 ) 1,735 Finance costs (123 ) (677 ) (39 ) 716 (123 ) Depreciation (4,085 ) (561 ) - - (4,646 ) Income tax expense (5,605 ) 416 24 86 (5,079 ) Profit for the year 27,297 (446 ) (72 ) (154 ) 26,625 Reportable segment assets 193,820 9,367 604 (6,650 ) 197,141 Additions to segment non current assets 8,143 339 - - 8,482 Segment liabilities (27,285 ) (8,480 ) (799 ) 6,644 (29,920 ) CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2013 (P’000) Audited 6 months 6 months 12 months ended ended ended 30 June 2013 30 June 2012 31 Dec 2012 ASSETS Non-current assets Property, plant and equipment 108,565 94,021 104,464 Goodwill 26,943 26,822 26,822 Deferred tax assets 1,378 165 675 Inventories 3,334 3,380 3,343 Total non-current assets 140,220 124,388 135,304 Current assets Inventories 9,036 7,251 7,415 Trade and other receivables 6,986 16,793 3,452 Current tax assets 253 312 105 Bank and cash balances 49,989 25,291 50,865 Total current assets 66,264 49,647 61,837 Total assets 206,484 174,035 197,141 EQUITY AND LIABILITIES Capital and reserves Stated capital 69,525 69,525 69,525 Reserves 31,198 24,244 31,641 Retained earnings 71,080 54,177 65,828 Equity attributable to owners of the company 171,803 147,946 166,994 Non - controlling interest 62 88 228 Total capital and reserves 171,865 148,034 167,222 Non-current liabilities Deferred tax liabilities 9,463 7,779 9,612 Current liabilities Trade and other payables 23,600 16,835 17,648 Bank overdraft - - 782 Current tax liabilities 1,556 1,387 1,877 Total current liabilities 25,156 18,222 20,307 Total liabilities 34,619 26,001 29,919 Total equity and liabilities 206,484 174,035 197,141 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 30 JUNE 2013 (P’000) Audited 6 months 6 months 12 months ended ended ended 30 June 2013 30 June 2012 31 Dec 2012 Revenue 52,126 45,638 97,904 Cost of sales (7,758 ) (8,080 ) (17,365 ) Gross profit 44,368 37,558 80,539 Other operating income 502 628 1,265 Investment revenue 1,440 564 1,736 Marketing and administration expenses (32,233 ) (25,744 ) (51,714 ) Finance costs (56 ) (185 ) (123 ) Profit before tax 14,021 12,821 31,703 Income tax (2,438 ) (3,327 ) (5,079 ) Profit for the period 11,583 9,494 26,624 Other comprehensive income Gain on revaluation of property, plant and equipment - - 8,553 Exchange gain/(loss) on translating foreign operations 176 (36) 225 Income tax relating to other comprehensive income - - (1,923 ) Other comprehensive income/(loss) for the period 176 (36) 6,855 Total comprehensive income for the period 11,759 9,458 33,479 Profit attributable to: Owners of the company 11,750 9,695 26,758 Non-controlling interests (167 ) (201 ) (134 ) 11,583 9,494 26,624 Earnings per share: Basic earnings per share (Pula) 0.10 0.08 0.22 Diluted earnings per share (Pula) 0.10 0.08 0.22 Total comprehensive income attributable to: Owners of the company 11,926 9,659 33,540 Non-controlling interests (167 ) (201 ) (61 ) 11,759 9,458 33,479 Movement in number of shares in issue: Shares in issue at the beginning of the period 120,875,000 120,000,000 120,000,000 Shares issued for no consideration in respect of share-based employee benefit - 875,000 875,000 Shares in issue at the end of the period 120,875,000 120,875,000 120,875,000 Weighted average number of ordinary shares for the purposes of basic earnings per share 120,875,000 120,437,500 120,656,250 Shares deemed to be issued for no consideration in respect of share-based employee benefit - - - Weighted average number of ordinary shares for the purposes of diluted earnings per share 120,875,000 120,437,500 120,656,250 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 30 JUNE 2013 (P’000) Audited 6 months 6 months 12 months ended ended ended 30 June 2013 30 June 2012 31 Dec 2012 Cash flows from operating activities 12,180 10,264 32,001 Net cash used in investing activities (4,982 ) (3,467 ) 4,328 Net cash used in financing activities (7,309 ) (6,229 ) (11,002 ) Net (decrease) increase in cash and cash equivalents (111 ) 568 25,327 Exchange difference on cash held in foreign currency 17 (21 ) 12 Cash and cash equivalents at the beginning of the period 50,083 24,744 24,744 Cash and cash equivalents at the end of the period 49,989 25,291 50,083 Represented by: Bank and cash balances 49,989 25,291 50,865 Bank overdraft - - (782 ) 49,989 25,291 50,083 HOTWIRE_FSG1137H 0 2000 4000 6000 8000 10000 12000 14000 160000 10000 20000 30000 40000 50000 60000 2011 2011 2011 2011 2012 2012 2013 2013 39300 2012 2012 45638 2013 2013 52126 14,021 12,821 10,807 HALF YEAR REVENUE HALF YEAR PROFIT BEFORE TAX

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