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4-Traders Homepage  >  Equities  >  Johannesburg Stock Exchange  >  Brait SE    BATJ   LU0011857645

BRAIT SE (BATJ)
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End-of-day quote. End-of-day quote  - 11/17
44 ZAR   -2.85%
11/15 BRAIT : unaudited interim results for the period ended 30 September ..
11/10BRAIT SE : half-yearly earnings release
09/04 BRAIT : Boss departs
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Brait : unaudited interim results for the period ended 30 September 2017

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11/15/2017 | 07:10am CET

BRAIT SE

(Registered in Malta as a European Company) (Registration No. SE1)

Share code: BAT ISIN: LU0011857645

Bond code: WKN: A1Z6XC ISIN: XS1292954812 LEI code: 549300VB8GBX4UO7WG59

("Brait", the "Company" or "Group")

UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2017 KEY HIGHLIGHTS

- Brait's reported Rand NAV per share at 30 September 2017 is ZAR66.62

  • For the quarter, this represents a decrease of 10.1% compared to the ZAR74.14 reported at 30 June 2017

  • For the six month period, this represents a decrease of 14.8% compared to 31 March 2017's reported NAV per share of ZAR78.15

  • For the twelve month period, this represents a decrease of 36.6% compared to 30 September 2016's NAV per share of ZAR105.06

  • The three year CAGR for reported Rand NAV per share to 30 September 2017 is 24.2% per annum (benchmark of 15% per annum); including ordinary share dividends it is 25.5%

  • Since 1 April 2011's NAV per share of ZAR16.50, the 6.5 year CAGR to 30 September 2017 for reported Rand NAV per share is 24.0% per annum Performance against targets (1)

    Performance metric Position at 30 September 2017

  • NAV CAGR > 15% per year over any - 24.2% CAGR since 30 September 2014

    3 year period - 24.0% CAGR since 1 April 2011

  • Dividend: 1% - 2.5% of closing NAV - FY2017: 1% of R78.15 NAV paid August 2017 (2)

    - bonus shares or cash dividend alternative

  • Operating costs:

    - 0.54% net after fee income (3) (FY2017: 0.54%)

  • Minimal cash drag:

  • Primarily unlisted investments - 100% of investment portfolio

  • Demonstrate cash flow within underlying - Strong cash flow conversion across portfolio investments over any 3 year period

  1. Going forward, shareholders are notified that in line with other listed investment companies, Brait will update the market on its NAV per share on a six monthly basis at interim and final reporting dates

  2. Shareholder election: 26% elected to receive bonus shares, 43% elected to reinvest their cash dividend of R169m and subscribe for new shares; and the remaining 31% elected to receive their cash dividend of R121m

  3. Percentages quoted are annualised based on operating expenses of R135 million and fee income of R15 million for the six months ended 30 September 2017.

Audited year ended

31 March

2017

Unaudited six months

30 Sept 30 Sept

2016 2017

Unaudited six months

30 Sept 30 Sept

2017 2016

Audited year ended

31 March

2017

R'm

R'm

R'm

ASSETS

Notes

EUR'm

EUR'm

EUR'm

44 408

58 142

40 023

Non-current assets

2 499

3 767

3 100

44 408

58 142

40 023

Investments

2

2 499

3 767

3 100

3 289

3 602

3 290

Current assets

205

233

230

5

4

3

Accounts receivable

-

-

-

3 284

3 598

3 287

Cash and cash equivalents

3

205

233

230

47 697

39 580

61 744

53 277

43 313

33 851

Total assets

EQUITY AND LIABILITIES

Ordinary shareholders equity and reserves

4

2 704

2 114

4 000

3 451

3 330

2 763

(FY2017: Operating expenses R401 million; fee income R62 million). Brait's average AUM for the six months ended 30 September 2017 is R45 billion (FY2017: R63 billion) Summary consolidated statement of financial position as at 30 September

8 065

8 366

9 200

Non-current liabilities

574

542

563

5 396

5 630

5 883

Convertible Bonds

5

367

365

377

2 669

2 736

3 317

Borrowings

6

207

177

186

52

101

262

Current liabilities

16

7

4

52

101

262

Accounts payable and other liabilities

16

7

4

47 697

61 744

43 313

Total equity and liabilities

2 704

4 000

3 330

520.6

521.0

525.6

Ordinary shares in issue (m)

525.6

521.0

520.6

(14.6)

(13.9)

(17.5)

Treasury shares (m)

(17.5)

(13.9)

(14.6)

506.0

507.1

508.1

Outstanding shares for NAV calculation (m)

508.1

507.1

506.0

7 815

10 506

6 662

Net asset value per share (cents)

416

681

546

Summary consolidated statement of comprehensive income for the six months ended 30 September

Audited year ended

31 March

2017

R'm

Unaudited six months

30 Sept 30 Sept

2016 2017

R'm R'm

Note

Unaudited six months

30 Sept 30 Sept

2017 2016

EUR'm EUR'm

Audited year ended

31 March

2017

EUR'm

(15 085)

(3 915)

(7 957)

Investment losses

(530)

(240)

(978)

244

122

125

Interest income

8

7

16

409

80

71

Dividend income

5

5

27

62

32

15

Fee income

1

2

4

(319)

(264)

211

Foreign exchange gains/(losses)

14

(16)

(21)

(401)

(228)

(135)

Operating expenses

(9)

(14)

(26)

(76)

(66)

-

Other expenses

-

(4)

(5)

(659)

(274)

(317)

Finance costs

(21)

(17)

(43)

(29)

(7)

7

Taxation

-

-

(2)

(15 854)

(12 879)

(4 520)

(10 565)

(7 980)

2 540

Loss for the period

Other comprehensive income Translation adjustments

(532)

(98)

(277)

(337)

(1 028)

(266)

(28 733)

(15 085)

(5 440)

Comprehensive loss for the period

(630)

(614)

(1 294)

(3 119)

(887)

(1 577)

Loss and Headline loss per share (cents) - basic 7

(105)

(54)

(202)

(2 809)

(785)

(1 421)

Loss and Headline loss per share (cents) - diluted 7

(95)

(48)

(182)

Summary consolidated statement of changes in equity for the six months ended 30 September

Audited year ended

31 March

Unaudited six months

30 Sept 30 Sept

30

Unaudited six months

Sept 30 Sept

Audited year ended

31 March

2017

R'm

2016 2017

R'm R'm

Note

2017 2016

EUR'm EUR'm

2017

EUR'm

69 872

69 872

39 580 Ordinary shareholders' balance at beginning of period

2 763

4 164

4 164

(15 854)

(4 520)

(7 980) Loss for the period

(532)

(277)

(1 028)

(12 879)

(10 565)

2 540 Translation adjustments

(98)

(337)

(266)

(930)

(881)

(168) Net purchase of treasury

shares

(11)

(57)

(65)

-

-

169 Cash dividend reinvestment 4

11

-

-

(629)

(629)

(290) Cash dividend paid

4

(19)

(42)

(42)

39 580

53 277

33 851 Ordinary shareholders' balance at end of period

2 114

3 451

2 763

Summary consolidated statement of cash flows for the six months ended 30 September

Audited year ended

31 March

2017

R'm

Unaudited six months

30 Sept 30 Sept

2016 2017

R'm R'm

Note

Unaudited six months

30 Sept 30 Sept

2017 2016

EUR'm EUR'm

Audited year ended

31 March

2017

EUR'm

300

7

28

Cash flows from operating activities Investment proceeds received

2

-

21

56

30

13

Fees received

1

2

4

65

41

24

Interest received

2

3

4

266

-

-

Dividends received

-

-

18

(401)

(225)

(140)

Operating expenses paid

(9)

(15)

(26)

(59)

-

(10)

Other expenses paid

(1)

-

(4)

(35)

(11)

-

Taxation paid

-

(1)

(2)

192

(158)

(85)

Operating cash flow before investments

(5)

(11)

15

(190)

(92)

(226)

Purchase of investments

(15)

(6)

(12)

2

(250)

(311)

Net cash (used in)/from operating activities

(20)

(17)

3

1 491

1 550

500

Net drawdown of borrowings

33

101

85

(391)

(86)

(109)

Finance costs paid

(7)

(6)

(24)

(710)

(661)

(168)

Net purchase of treasury shares

(11)

(43)

(42)

(629)

(629)

(290)

Cash dividend paid

(19)

(41)

(42)

-

-

169

Cash dividend reinvestment

11

-

-

(239)

174

102

Net cash from/(used in) financing activities

7

11

(23)

(237)

(76)

(209)

Net decrease in cash and cash equivalents

(13)

(6)

(20)

(833)

(680)

212

Effects of exchange rate changes on cash and cash equivalents

(12)

(21)

(10)

4 354

4 354

3 284

Cash and cash equivalents at beginning of period

230

260

260

3 284

3 598

3 287

Cash and cash equivalents at end of period 3

205

233

230

Notes to the summary consolidated financial statements for the six months ended 30 September

1 ACCOUNTING POLICIES

1.1 Basis for preparation

The financial statements of the Group are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union, on the going concern principle, using the historical cost basis, except where otherwise indicated. The summarised financial statements are presented in accordance with IAS 34: Interim Financial Reporting and in accordance with the framework concepts, measurement and recognition requirements of IFRS. The accounting policies and methods of computation are consistent with those applied in the Group annual financial statements for the year ended 31 March 2017. The Group has only one operating segment being that of an investment holding company.

The Group's financial statements are prepared using both the Euro (EUR) and SA Rand (R/ZAR) as its presentation currencies. The Group's subsidiaries have one of three functional currencies: Pound Sterling (GBP), SA Rand or US Dollar (USD/US$). The holding company, Brait SE, and its main consolidated subsidiaries use GBP as their functional currency. The financial statements have been prepared using the following exchange rates:

30 September 2017

31 March 2017

30 September

2016

Closing

Average

Closing

Average

Closing

Average

USD/ZAR

13.5655

13.1902

13.4247

14.0513

13.7268

14.5313

GBP/ZAR

18.1636

17.0727

16.8674

18.4171

17.8155

19.9926

EUR/ZAR

16.0183

15.0119

14.3232

15.4319

15.4336

16.3167

USD/EUR

0.8469

0.8786

0.9373

0.9105

0.8894

0.8906

GBP/EUR

1.1339

1.1373

1.1776

1.1934

1.1543

1.2253

  1. INVESTMENTS

    The Group designates the majority of its financial asset investments as at FVTPL as the Group is managed on a fair value basis, with any resultant gain or loss recognised in investment gains/losses. Fair Value is determined in accordance with IFRS 13.

    Statement of financial position items carried at fair value include investments in equity instruments and shareholder funding instruments. The Group applies a number of methodologies to determine and assess the reasonableness of the fair value, which may include the following:

    • Earnings multiple

    • Recent transaction prices

    • Net asset value

    • Price to book multiple

Listed investments are held at recent quoted transaction prices. Where the listed investment is either thinly traded and/or the market is inactive, the valuation applied to determine the carrying value is based on the applicable unlisted investment methodology set out below.

The primary valuation model utilised for valuing unlisted portfolio investments is the maintainable earnings multiple model.

Maintainable earnings are derived with reference to the mix of prior year audited and latest available current year forecast EBITDA per the portfolio company, adjusted for any non-recurring income/expenditure. As the year progresses, so the weighting is increased towards the portfolio

company's forecast.

The Directors decide on an appropriate group of comparable quoted companies from which to base the EV/EBITDA multiple. The three year trailing average multiple of the comparable quoted companies, is adjusted for points of difference, where required, to the portfolio company being valued.

The peer average spot multiple at reporting date is also considered. The equity valuation takes consideration of the portfolio company's net debt/cash on hand as per its latest available financial results. Further valuation information can be obtained from the 30 September 2017 investor presentation

on the Group's website, www.brait.com.

31 March

30 Sept

30 Sept

30 Sept

30 Sept

31 March

2017

2016

2017

2017

2016

2017

R'm

R'm

R'm

EUR'm

EUR'm

EUR'm

44 408

58 142

40 023

The Group's porfolio of investments

2 499

3 767

3 100

15 516

16 107

17 726

Virgin Active

1 107

1 044

1 083

12 395

13 485

12 030

Premier

751

874

865

7 367

7 660

8 511

Iceland Foods

531

496

514

7 066

18 726

-

New Look

-

1 213

493

2 064

2 164

1 756

Other investments

110

140

145

Valuation metrics 30 September 2017 30 September 2016 31 March 2017

3rd Party 3rd Party 3rd Party

Virgin Active (GBP'm)

EBITDA

139

Multiple

11.4x

Net Debt

336

EBITDA

135

Multiple

11.4x

Net Debt

370

EBITDA

140

Multiple

11.4x

Net Debt

411

Premier (R'm)

1 170

12.4x

1 768

1 211

13.2x

1 508

1 140

13.2x

1 850

Iceland Foods (GBP'm)

163

9.0x

687

153

9.4x

688

160

9.0x

675

New Look (GBP'm)

Note 1

203

11.3x

1 100

155

10.3x

1 136

Other investments

varied

varied

varied

*Note 1 Until such time as its turnaround strategy has taken shape, New Look is valued at Nil

Fair Value Hierarchy

IFRS 13 provides a hierarchy that classifies inputs used to determine fair value. Investments measured and reported at fair value are classified and disclosed in one of the following categories:

Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 Inputs for the assets or liability that are not based on observable market data

17

R'm 726

30 September 2017 Virgin Active

EUR'm 1 107

9

010

Premier

562

8

511

Iceland Foods

531

1

514

Other investments

95

36

761

Investments at fair value

2 295

3

020

Premier shareholding funding

189

242

Other investments shareholder funding

15

3

262

Investments at amortised cost

204

40

023

Total investments

2 499

Audited year ended

Unaudited six months

Unaudited six months

Audited year ended

There are no financial assets that are categorised as Level 1 and Level 2 and no transfers between levels in the current or prior year. All Level 3 investments have been valued using a maintainable earnings multiple model.

31 March

2017

R'm

30 Sept

2016

R'm

30 Sept

2017

R'm

30 Sept

2017

EUR'm

30 Sept

2016

EUR'm

31 March

2017

EUR'm

3 284

3 598

3 287

3.

CASH AND CASH EQUIVALENTS

Balances with banks

205

233

230

196

171

270

- ZAR cash

17

11

14

77

78

96

- USD cash

6

5

5

3 011

3 349

2 921

- GBP cash

182

217

211

39 580

53 277

33 851

4.

ORDINARY SHAREHOLDERS' EQUITY AND RESERVES

Share Capital and Premium Authorised share capital

1 500 000 000 at par value of EUR0.22 per share Issued share capital

31 March 2017

521 012 174

2 114

3 451

2 763

Bonus share issue

1 665 192 (1)

Cash dividend reinvestment

2 921 849 (2)

Brait SE published this content on 15 November 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 15 November 2017 06:09:01 UTC.

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Financials ( ZAR)
Sales 2018 -
EBIT 2018 -5 628 M
Net income 2018 -7 019 M
Debt 2018 -
Yield 2018 1,48%
P/E ratio 2018 -
P/E ratio 2019 3,84
Capi. / Sales 2018 0
Capi. / Sales 2019 0
Capitalization 23 126 M
Chart BRAIT SE
Duration : Period :
Brait SE Technical Analysis Chart | BATJ | LU0011857645 | 4-Traders
Technical analysis trends BRAIT SE
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 3
Average target price 57,7  ZAR
Spread / Average Target 31%
EPS Revisions
Managers
NameTitle
Phillip Jabulani Moleketi Independent Non-Executive Chairman
Christopher Stefan Seabrooke Independent Non-Executive Director
Hermanus Roelof Willem Troskie Independent Non-Executive Director
Christoffel F. Hendrik Wiese Non-Executive Director
Lawrence Leon Porter Independent Non-Executive Director
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