•	 Group revenue increased by 5% to
R22,7 million
•	The Group’s asset base increased by 15% to
R369 million
•	 Net profit ...
Unaudited Audited
Notes
Six months
ended
30 Sept
2013
R’000
Six months
ended
30 Sept
2012
R’000
Year
ended
31 Mar
2013
R’0...
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Nictus Limited HY 2014 results

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Nictus Limited HY 2014 results

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Nictus Limited HY 2014 results

  1. 1. • Group revenue increased by 5% to R22,7 million • The Group’s asset base increased by 15% to R369 million • Net profit after taxation for the period increased by R5,3 million • Operating and administrative expenses decreased by 24% to R19,2 million Condensed Consolidated Interim Report for the six months ended 30 September 2013 rewardi reward r rewarding INSURANCE INSURANCE security securityCE INNOVATIO INNOVATION EMPOWE EMPOWER ii PROTECT risk risk risk ri Insuranc INNOVATIO short-term in protection tt i long-term ins didi sec independence innov conti n empower ititinnovative innovative innovative business EMPOWPROTECTT business rewarding r rew unconventional solutionsprotection bb protection independent unforeseen risks risk management risk management pp unique solutions i own contingency fund ii contingency PROTECT unique wisdom innova fi kfi k management managementik t qq soluti security decisions y contingency contin INNOVATION safetyit i s risks risks risks protection qeque innovation care care kk unique care care care care care managementintegrity idid integrity tt integrity unconventional foreseen solutions s security fund gg y solutions i solutions rewarding di rewarding risks omom rewarding rewarding didi rewarding ii unique i management INNOVATII q risksprotection qeque care innovatio uu care kk care contingency fundtt fund Notes to the financial statements 1. Statement of compliance These condensed consolidated interim financial statements have been prepared in accordance with the measurement and recognition requirements of International Financial Reporting Standards (“IFRS”), the presentation and disclosure requirements of IAS 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and the Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council, the Listings Requirements of the JSE Limited (“JSE”) and the Companies Act of South Africa. The financial information for the year ended 31 March 2013 has been extracted from audited annual financial information, however the Condensed Consolidated Interim Report (“the Interim Report”) has itself not been audited or reviewed. The directors take full responsibility for the preparation of the Interim Report and the correct extraction of the financial information included therein from the underlying annual financial statements for the year ended 31 March 2013. The annual financial statements and the audit report thereon is available for inspection at the Company’s registered office. The preparation of the Group’s condensed consolidated financial results was supervised by the Group Financial Director, WO Fourie, CA(SA). 2. Basis of measurement The condensed consolidated interim financial statements are presented in thousands of South African Rands (R’000s) on the historical cost basis, except for derivative financial instruments which are measured at fair value and property which is measured at market value. The accounting policies presented in the annual financial statements for the year ended 31 March 2013 have been applied consistently to all of the periods presented in these condensed consolidated interim financial statements by all Group entities. The accounting policies are in terms of IFRS. 3. Related parties During the six month period ended 30 September 2013, certain companies within the Group entered into transactions with each other. These intra-Group transactions have been eliminated on consolidation. Related party information is unchanged from that reported at 31 March 2013. Refer to the 2013 annual report for further information, accessible on Nictus’ website www.nictuslimited.co.za 4. Review of operations The revenue and profit for the period under review increased compared to the six months ended 30 September 2012. The major contributing factor to the success is attributed to intensified management focus on the utilisation of the additional capital injected in the prior year. It is also important to note that once off costs of R3 million incurred in the prior period relating to the unbundling were not incurred in the current period. Despite the turmoil in the South African economy resulting in strikes and labour unrest across all sectors, the equity markets have performed reasonably well. It remains to be seen what effect rising inflation will have on consumer spending in the second half of the Group’s current financial year. Segmental results Furniture retail: Revenue increased by 5% compared to the six months ended 30 September 2012. The revenue was effectively achieved in only three branches compared to four in the prior period, following the closure of the Maponya Mall branch. Revenue however remains a focus point in the light of the uncertain impact of rising inflation on consumer spending and buying power. However profitability has increased significantly compared to the same period last year due to intensified management focus and specific actions taken to improve profitability. The positive effect of the additional capital injected in the prior year is becoming evident. Insurance and finance: The premium income increased, and investment income was higher than in the previous period as a result of the additional capital resulting in a 20% increase in net profit compared to the comparative six month period ended 30 September 2012 for the segment. The performance of equities on the JSE remains highly unpredictable and is monitored constantly to ensure returns are maximised. The regulatory environment in the insurance industry is rapidly changing with an uncertain outcome at this point in time; the segment management is intensely involved keeping up to date with changes and keeping the board of directors (“the Board”) informed. Headline earnings For the six month period ended 30 September 2013 there were no items that impacted the headline earnings calculation. Basic earnings per share Earnings/(loss) per share based on profit or loss for the six months ended 30 September 2013 was 1,92 cents (30 September 2012: loss 7,57 cents), and a headline earnings/(loss) per share of 1,92 cents (30 September 2012: loss 7,57 cents). Dividend No interim dividend has been proposed by the Board of directors. Directors FR van Staden and JJ Retief resigned as directors with effect from 30 August 2013. JL Olivier resigned on 15 October 2013. Gerard Swart was appointed as an independent non-executive director on 15 October 2013. Prospects The Group has historically generated the majority of its earnings in the second part of the financial year. The Board is confident that the various segments are well placed to utilise the capital injection that resulted from the unbundling and build on the positive results achieved in the first six months to sustain the Group profitability. On behalf of the Board: NC Tromp (Managing Director) WO Fourie (Financial Director) Randburg, 29 November 2013 www.nictuslimited.co.za Nictus Limited (Incorporated in the Republic of South Africa) Registration number: 1981/011858/06 JSE share code: NCS, NSX Share code: NCT ISIN number: NA0009123481 (“Nictus” or “the Group”) Directors BJ Willemse (Chairman – Non-executive), G Swart (Non-executive) NC Tromp (Managing Director), WO Fourie (Financial Director) JD Mandy (Non-executive), PJ de W Tromp (Non-executive) Transfer secretaries Computershare Investor Services Proprietary Limited PO Box 61051, Marshalltown 2107 Company secretary Veritas Board of Executors Proprietary Limited Corner of Pretoria and Dover Street Randburg (PO Box 2878, Randburg 2125) RSA Registered office Nictus Building, corner of Pretoria and Dover Street, Randburg (PO Box 2878, Randburg 2125) Namibia registered office 3rd Floor, Corporate House, 17 Lüderitz Street, Windhoek (PO Box 755, Windhoek 9000) Sponsor on the JSE KPMG Services Proprietary Limited Sponsor on the NSX Simonis Storm Securities Proprietary Limited
  2. 2. Unaudited Audited Notes Six months ended 30 Sept 2013 R’000 Six months ended 30 Sept 2012 R’000 Year ended 31 Mar 2013 R’000 Continuing operations Revenue 22 743 21 586 40 156 Cost of sales (10 374) (10 211) (21 535) Claims incurred (2 223) (12) (693) Gross profit 10 146 11 363 17 928 Other income – 216 4 300 Investment income from operations 8 164 7 775 14 064 Operating and administrative expenses 4 (19 245) (25 530) (51 458) Operating loss (935) (6 176) (15 166) Investment income 2 634 1 209 2 005 Operating profit/(loss) before financing costs 1 699 (4 967) (13 161) Financing costs – (91) (524) Profit/(loss) before taxation 1 699 (5 058) (13 685) Taxation (428) 1 014 (33) Profit/(loss) from continuing operations 1 271 (4 044) (13 718) Discontinued operations Profit/(loss) from discontinued operations, net of tax – 2 032 (1 411) Profit/(loss) for the period 1 271 (2 012) (15 129) Total comprehensive income for the period 1 271 (2 012) (15 129) Profit and total comprehensive income attributable to: Owners of the Company 1 271 (2 012) (15 129) Earnings per share Basic earnings/(loss) per share (cents) 1,92 (7,57) (22,92) Diluted earnings/(loss) per share (cents) 1,92 (7,57) (22,92) Weighted average number of shares in issue (000’s) 66 270 53 443 59 839 Unaudited Audited At 30 Sept 2013 R’000 At 30 Sept 2012 R’000 At 31 Mar 2013 R’000 Assets Non-current assets Property, plant and equipment 17 415 17 665 17 681 Investments 28 415 23 876 26 058 Loans and receivables 7 232 119 567 10 944 Deferred tax assets 2 741 4 693 3 124 55 803 165 801 57 807 Current assets 313 927 154 551 276 202 Total assets 369 730 320 352 334 009 Equity Stated capital 48 668 26 722 48 668 Revaluation reserve 5 905 7 675 5 905 Retained earnings 22 747 32 028 21 476 Total equity 77 320 66 425 76 049 Liabilities Non-current liabilities Interest bearing loans and borrowings – 7 500 – Deferred tax liabilities 5 483 1 812 5 045 5 483 9 312 5 045 Current liabilities 286 927 244 615 252 915 Insurance contract liability 278 040 235 176 244 698 Other current liabilities 8 887 9 439 8 217 Total liabilities 292 410 253 927 257 960 Total equity and liabilities 369 730 320 352 334 009 Unaudited Audited Six months ended 30 Sept 2013 R’000 Six months ended 30 Sept 2012 R’000 Year ended 31 Mar 2013 R’000 Cash flow from operating activities Cash generated from/(utilised by) operations 35 163 11 749 (227 387) Investment income received from operations 6 653 9 779 12 902 Interest paid – (1 860) (524) Ordinary dividends received 717 4 265 1 162 Taxation paid – (223) (401) Net cash flow from operating activities 42 533 23 710 (214 248) Net cash outflow from investing activities (27 886) (63 441) (160) Net cash inflow from financing activities – 11 562 37 032 Net increase/(decrease) in cash and cash equivalents 14 647 (28 169) (177 376) Cash and cash equivalents at beginning of period 120 458 297 834 297 834 Cash and cash equivalents at end of period 135 105 269 665 120 458 Unaudited Audited Six months ended 30 Sept 2013 R’000 Six months ended 30 Sept 2012 R’000 Year ended 31 Mar 2013 R’000 Segment assets Furniture retail 57 639 61 429 53 627 Insurance and finance 347 352 248 758 304 684 404 991 310 187 358 311 Head office and eliminations (35 261) 10 165 (24 302) 369 730 320 352 334 009 Segment revenue Furniture retail 19 985 18 966 37 887 Insurance and finance 5 033 2 727 2 980 25 018 21 693 40 867 Head office and eliminations (2 275) (107) (711) 22 743 21 586 40 156 Profit/(loss) after taxation from continuing operations Furniture retail 303 (1 988) (12 265) Insurance and finance 2 461 2 050 2 833 2 764 62 (9 432) Head office and eliminations (1 493) (4 106) (4 286) 1 271 (4 044) (13 718) Unaudited Audited Six months ended 30 Sept 2013 R’000 Six months ended 30 Sept 2012 R’000 Year ended 31 Mar 2013 R’000 Profit/(loss) for the period 1 271 (4 044) (13 718) Profit on disposal of property, plant and equipment, net of taxation – – (2) Headline earnings/(loss) 1 271 (4 044) (13 720) Headline earnings/(loss) per share (cents) 1,92 (7,57) (22,93) Diluted headline earnings/(loss) per share (cents) 1,92 (7,57) (22,93) CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW CONDENSED SEGMENTAL REPORT RECONCILIATION BETWEEN EARNINGS AND HEADLINE EARNINGS Share capital R’000 Stated capital R’000 Revaluation reserve R’000 Contingency reserve R’000 Retained earnings R’000 Total equity R’000 Balanceat1April201226 722–53 9189 19678 731168 567 Totalcomprehensiveincome––––(2 012)(2 012) Lossfortheperiod––––(2 012)(2 012) Transferstoretainedearnings––(46 243)(9 196)55 439– Transferfromcontingencyreserve–––(2 106)2 106– Transferfromreservesfordisposalgroupasheldfordistributiontoowners––(46 243)(7 090)53 333– ContributionsbyanddistributionstotheownersoftheGroup––––(100 130)(100130) Dividendstoequityholders––––(7 615)(7615) Distributiontoshareholders–unbundling––––(92 515)(92 515) Balanceat30September201226 722–7 675–32 02866 425 Totalcomprehensiveincome––––(13 117)(13 117) Lossfortheperiod––––(13 117)(13 117) Transferstoretainedearnings––(1 770)–1 770– Transferfromrevaluationreserveondistributiontoordinaryshareholders––(1 770)–1 770– ContributionsbyanddistributionstotheownersoftheGroup(26 722)48 668––79522 741 Issueofnewordinaryshares–21 946–––21 946 Conversionofshares(26 722)26 722–––– Distributiontoshareholders–unbundling––––795795 Balanceat31March2013–48 6685 905–21 47676 049 Totalcomprehensiveincome––––1 2711 271 Profitfortheperiod––––1 2711 271 Balanceat30September2013–48 6685 905–22 74777 320 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

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