VOGELSTRUISBULT METAL HOLDINGS LIMITED
16 August 1999
VOGELSTRUISBULT METAL HOLDINGS LIMITED
(Registration No. 05/04346/06)
(Incorporated in the Republic of South Africa)
Announcement of Audited Results
CONSOLIDATED INCOME STATEMENT
Year Year
ended ended
30 June 30 June
1999 1998
R000 R000
Revenue
Income from investments 1 185 22 367
Surplus on realisation of investments
and mineral assets 201 710 -
Interest received 20 873 3 821
Sundry revenue 11 10
223 779 26 198
Expenditure 5 414 14 915
Administration 5 414 1 664
Amounts written off - 13 251
Profit before tax 218 365 11 283
Tax 4 794 765
Profit after tax 213 571 10 518
Unappropriated profit, brought forward 4 50
Less: 213 568 10 564
Dividends declared 34 028 14 715
Interim 185c (30c) 34 028 5 518
Final (50c) - 9 197
Transfers to/from reserves 179 540 (4 151)
Unappropriated profit, carried forward 7 4
Earnings per share - cents 1 161 57
Headline earnings per share - cents 64 129
Dividend per share - cents 185 80
- times covered 6,3 0,7
CONSOLIDATED BALANCE SHEET
At At
30 June 30 June
1999 1998
R000 R000
Investments 10 532 22 080
Net current assets 217 968 26 886
Current assets 225 320 36 845
Cash 222 486 35 824
Other 2 834 1 021
Less: Current liabilities 7 352 9 959
228 500 48 966
Share capital 9 448 9 448
Reserves 219 052 39 509
228 500 48 957
Abridged Consolidated
Cash Flow Statement
Net cash (outflow)/inflow from
operating activities (26 597) 19 296
Net cash inflow/(outflow)
from investing activities 213 259 (3 583)
Increase in cash on hand 186 662 15 713
ADDITIONAL INFORMATION
Investments
Listed - Market value 40 978 62 017
- Excess over book value 30 446 43 171
- Book value 10 532 18 846
Unlisted - Directors' valuation - 173 186
- Excess over book value - 169 952
- Book value - 3 234
Shares in issue remained unchanged
at 18 393 600
Net asset value per share - cents 1 408 1 425
NOTES:
1. Earnings
Notwithstanding a decrease in income from investments, as a result of the sale
of certain of the company's investments, earnings for the year increased
dramatically as a result of the surplus achieved on these realisations and the
interest received on these proceeds.
2. Headline earnings
Earnings per share are based on profit after tax and on the 18 393 600 shares
in issue during the year.
Headline earnings per share are reconciled with the profit attributable to
members as follows:
R million
Profit attributable to members 213,6
Less: Surplus on realisation of strategic investments 201,7
11,9
3. Restructuring
As a consequence of the restructuring process announced in May 1998, in
conjunction with Gold Fields of South Africa Limited and New Wits Limited, the
company has disposed of its 2 579 067 shares in Gold Fields Coal Limited, its
2 100 000 shares in O'okiep Copper Company Limited, its 333 172 shares
in Black Mountain Mineral Development Company (Proprietary) Limited and its
2 090 000 shares in Zinc Corporation of South Africa Limited. Total cash
proceeds for these disposals amounted to R210,9 million (book value R10,7
million).
4. Year 2000 compliance
The group has formulated detailed plans to ensure Year 2000 compliance is
achieved by 30 September 1999. These plans include an evaluation of all
hardware and software systems which are critical to meeting the group's
business needs in the new millennium. Progress against these plans is reported
to the company's audit committee. Results achieved so far indicate that it is
unlikely that the group will encounter any difficulties from its internal
systems. Costs incurred are not material and have been charged against income
when incurred.
5. Final dividend
As the company has no STC credits and may be liquidated shortly the directors
have resolved not to declare a final dividend for the year ended 30 June 1999.
6. Cautionary announcements
Shareholders are referred to the cautionary announcements dated 2 and 26 July
1999 and are now advised that these negotiations have terminated. Notification
to this effect appears elsewhere in this publication.
7. Outlook
Although there have been expressions of interest in acquiring the company,
primarily for its dual listing, the level of cash and uncertainty surrounding
the taxation of the proceeds on the realisation of its investments has
prevented this. Once the company's tax assessment has been received, should a
sale not be concluded, the company will be liquidated and the proceeds paid to
shareholders as a liquidation dividend.
By order of the board
M. J. Tagg M. E. Halliday
(Chairman) (Director)
Johannesburg
12 August 1999