Vunani : Unaudited Condensed Consolidated Interim Results - August 2017.pdf

VUNANI LIMITED

Incorporated in the Republic of South Africa Registration number: 1997/020641/06

JSE code: VUN ISIN: ZAE000163382

Listed on AltX on the JSE Limited ("JSE") ("Vunani" or "the company" or "the group")

UNAUDITED CONDENSED CONSOLIDATED INTERIM RESULTS

for the 6 month period ended 31 August 2017

The Unaudited Condensed Consolidated Interim Results have been prepared under the supervision of the Chief Financial Officer, Tafadzwa Mika CA(SA).

SALIENT FEATURES

REVENUE FROM CONTINUING OPERATIONS OF

R160.1 million

compared to R72.7 million at 31 August 2016

PROFIT FOR THE PERIOD OF

R16.2 million

compared to R15.4 million at 31 August 2016

BASIC EARNINGS PER SHARE 8.5c

compared to 13.4c at 31 August 2016

Condensed consolidated statement of comprehensive income for the 6 month period ended 31 August 2017

Unaudited

Re-presented*

Unaudited

Figures in R'000

Note

31 August

2017

31 August

2016

Continuing operations Revenue

1

160 115

72 743

Other income

1 780

339

Investment revenue

811

1 603

Interest received from investments Net profit on disposal of assets

Fair value adjustments and impairments

2

38

-

6 590

873

-

3 010

Equity-accounted earnings (net of income tax)

620

13 250

Operating expenses

(147 644)

(73 378)

Results from operating activities

22 310

18 440

Finance income

1 906

744

Finance costs

(5 940)

(893)

Net finance costs

(4 034)

(149)

Profit before income tax

18 276

18 291

Income tax expense

(2 611)

(3 951)

Profit from continuing operations Discontinued operations

Profit from discontinued operations (net of income tax)

3

15 665

516

14 340

1 052

Profit for the period Other comprehensive income

Items that are or may be reclassified to profit or loss Exchange differences on translating foreign operations

16 181

(339)

15 392

(674)

Total comprehensive income for the period

Profit from continuing operations attributable to: Equity holders of Vunani Limited

15 842

12 775

14 718

13 648

Non-controlling interest

2 890

692

Profit for the period attributable to:

15 665

14 340

Equity holders of Vunani Limited

13 291

14 700

Non-controlling interest

2 890

692

16 181

15 392

Total comprehensive income for the period attributable to:

Equity holders of Vunani Limited

13 084

14 361

Non-controlling interest

2 758

357

15 842

14 718

Basic and diluted earnings per share (cents) **

8.5

13.4

Basic and diluted earnings per share from continuing operations (cents)

8.2

12.5

Basic and diluted earnings per share from discontinued operations (cents)

0.3

0.9

Basic and diluted headline earnings per share (cents) **

4

7.8

11.5

Basic and diluted headline earnings per share from continuing operations (cents)

8.2

12.5

Basic and diluted headline loss per share from discontinued operations (cents)

(0.4)

(1.0)

Property, plant and equipment

9

836

10

535

Goodwill

139

766

139

766

Intangible assets

93

000

98

613

Investments in and loans to associates

84

140

84

242

Other investments

5

39

804

38

109

Deferred tax asset

45

629

47

280

Other non-current assets

29

802

29

802

Total non-current assets

441

977

448

347

Other investments

5

1

121

4

291

Other current assets

-

1

712

Taxation prepaid

1

317

1

343

Trade and other receivables

66

526

52

702

Accounts receivable from trading activities

283

420

693

427

Trading securities

356

183

Cash and cash equivalents

34

728

82

284

Total current assets

387

468

835

942

Total assets Equity

Stated capital

6

829

704

445

438

1 284

700

289

022

Treasury shares

(15 480)

(15 915)

Share-based payments reserve

18 134

16 100

Foreign currency translation reserve

(2 728)

(2 521)

Accumulated loss

(335 725)

(340 886)

Equity attributable to equity holders of Vunani Limited

368 639

356 800

Non-controlling interest

(1 681)

(4 021)

Total equity

Liabilities

Other financial liabilities

5

366

73

958

870

352

107

779

714

Deferred tax liabilities

27

402

31

311

Total non-current liabilities

101

272

139

025

Other financial liabilities

5

37

794

35

580

Taxation payable

6

733

8

327

Trade and other payables

34

009

57

615

Accounts payable from trading activities

282

679

688

819

Trading securities

-

1

934

Bank overdraft

-

210

Current liabilities

361

215

792

485

Total liabilities

462

487

931

510

Total equity and liabilities

829

445

1 284

289

Shares in issue (000s)

6

164 056

161 296

Net asset value per share (cents)

224.7

221.2

Net tangible asset value per share (cents)

82.8

73.4

Net asset value per share (cents)

Equity attributable to equity holders of Vunani Limited, divided by the total shares in issue, including treasury shares.

Condensed consolidated statement of changes in equity for the 6 month period ended 31 August 2017

Share-

Foreign

Total attribu-

Stated

Treasury

based payment

currency translation

Accumulated

table to equity

Non- controlling

Total

Figures in R'000

capital

shares

reserve

reserve

loss

holders

interest

equity

Balance as at 29 February 2016 - Audited Total comprehensive income for the period Profit for the period

624 888

-

(15 571)

-

12 871

-

(1 233)

-

(365 474)

14 700

255 481

14 700

1 670

692

257 151

15 392

Other comprehensive income for the period

-

-

-

(339)

-

(339)

(335)

(674)

Total comprehensive income for the period Transactions with owners, recorded directly in equity

-

-

-

(339)

14 700

14 361

357

14 718

Share-based payments

-

-

1 587

-

-

1 587

-

1 587

Dividends paid

-

-

-

-

(503)

(503)

-

(503)

Capitalisation share issue award

6

802

(344)

-

-

(6 458)

-

-

-

Acquisition of non-controlling interests

-

-

-

-

(6 455)

(6 455)

1 006

(5 449)

Total transactions with owners

6

802

(344)

1 587

-

(13 416)

(5 371)

1 006

(4 365)

Balance as at 31 August 2016 - Unaudited Total comprehensive income for the period Profit for the period

631

690

-

(15 915)

-

14 458

-

(1 572)

-

(364 190)

23 381

264 471

23 381

3 033

1 265

267 504

24 646

Other comprehensive income for the period

-

-

-

(949)

-

(949)

(620)

(1 569)

Total comprehensive income for the period Transactions with owners, recorded directly in equity Share-based payments

-

-

-

-

-

1 642

(949)

-

23 381

-

22 432

1 642

645

-

23 077

1 642

Issue of shares

68

332

-

-

-

-

68 332

-

68 332

Acquisition of non-controlling interests

-

-

-

-

(77)

(77)

77

-

Business combination

-

-

-

-

-

-

(7 775)

(7 775)

Total transactions with owners, recorded directly in equity

68

332

-

1 642

-

(77)

69 897

(7 698)

62 199

Balance as at 28 February 2017 - Audited Total comprehensive income for the period

700

022

(15 915)

16 100

(2 521)

(340 886)

356 800

(4 021)

352 779

Profit for the period

- - -

-

13 291

13 291

2 890

16 181

Other comprehensive income for the period

- - -

(207)

-

(207)

(132)

(339)

Total comprehensive income for the period Transactions with owners, recorded directly in equity

- - -

(207)

13 291

13 084

2 758

15 842

Share-based payments

-

-

2 469

-

-

2 469

-

2 469

Dividends paid

-

-

-

-

(8 241)

(8 241)

(524)

(8 765)

Transfer between reserves

-

435

(435)

-

435

435

-

435

Issue of shares

4

416

-

-

-

-

4 416

-

4 416

Transactions with equity holders

-

-

-

-

(218)

(218)

-

(218)

Acquisition of non-controlling interests

-

-

-

-

(106)

(106)

106

-

Total transactions with owners, recorded directly in equity

4

416

435

2 034

-

(8 130)

(1 245)

(418)

(1 663)

Balance as at 31 August 2017 - Unaudited

704

438

(15 480)

18 134

(2 728)

(335 725)

368 639

(1 681)

366 958

DIVIDENDS

Unaudited

31 August

29

Audited February

Figures in R'000 Ordinary dividend paid

Ordinary dividend number 3 of 5.2 cents per share

2017

8 241

2017

-

(net of treasury shares held) paid to shareholders

on 28 July 2017 (2016: Nil)

Capitalisation share issue award (with cash alternative)

A scrip dividend of 4 shares for every 100 shares

-

6 458

held (4.3 million shares) was issued on 26 August 2016 (net of treasury shares)

As an alternative to the capitalisation share issue award, shareholders were able to elect to

-

503

receive a gross dividend of 6c per share. For those shareholders electing to receive cash the dividend was paid to ordinary shareholders on 29 August 2016 (net of treasury shares held)

8 241

6 961

Condensed consolidated statement of cash flows for the 6 month period ended 31 August 2017

Figures in R'000

6 months Unaudited

31 August

Note 2017

12 months Audited

28 February

2017

6 months Unaudited

31 August

2016

Cash flows from operating activities

Net cash utilised by operating activities

7 (4 944)

(171)

(6 976)

Investment revenue received

811

1 624

1 603

Finance income received

1 906

2 784

768

Finance costs paid

(3 904)

(1 220)

(289)

Dividends paid to shareholders

(8 241)

(503)

(503)

Dividends paid to non-controlling interest

(524)

-

-

Income tax paid

(3 859)

(10 278)

(1 908)

Net cash utilised by operating activities Cash flows from investing activities Proceeds on disposal of business

(18 755)

1 050

(7 764)

494

(7 305)

494

Acquisition of property, plant and equipment

(1 212)

(2 161)

(846)

Proceeds on disposal of property, plant and equipment

-

6

-

Proceeds from repayment of loans to associates

936

606

481

Increase in investment and loans to associates

(213)

(1 664)

(271)

Proceeds from repayment of loans in other non-current assets

1 712

8

8

Acquisition of other investments

(2 000)

(298)

(1 332)

Proceeds on disposal of other investments

8 510

6 990

6 724

Net cash inflow from investing activities Cash flows from financing activities Proceeds on issues of shares

8 783

-

3 981

51 066

5 258

-

Increase in other financial liabilities

1 024

70

17

Repayments of other financial liabilities

(38 398)

(2 064)

-

Net cash (outflow)/inflow from financing activities

(37 374)

49 072

17

Net (decrease)/increase in cash and cash equivalents

(47 346)

45 289

(2 030)

Cash acquired in business combination

-

20 013

-

Cash disposed of during the year

-

(323)

-

Cash and cash equivalents at the beginning of the period

82 074

17 095

17 095

Total cash and cash equivalents at end of the period

34 728

82 074

15 065

Segmental reporting

for the 6 month period ended 31 August 2017

The fund management, advisory services and private equity segments are geographically located

in South Africa and,

on a

Reportable

segment

profit/(loss)

Total

Total

Revenue

after tax

assets

liabilities

Unaudited

Unaudited

Unaudited

Unaudited

31 August

31 August

31 August

31 August

Figures in R'000

2017

2017

2017

2017

Continuing operations

Fund management

31 964

1 469

64 012

(15 920)

Asset administration

60 892

4 651

234 713

(115 215)