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Monteagle Holdings (MGL)

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Thursday 27 December, 2001

Monteagle Holdings

Final Results

Monteagle Holdings
27 December 2001


                      Monteagle Holdings Societe Anonyme

           (Incorporated in Luxembourg - RC Luxembourg No. B 19600)
                                    Registered office
                                    6 rue Adolphe Fischer,
27th December 2001                  L-1520, Luxembourg



                Results for the year ended 30th September 2001

                              (subject to audit)

Monteagle's objective is to achieve capital growth over the long term. A
number of exceptional and unrepeatable circumstances have come together over
the last 12 months to generate an extraordinary pleasing set of results.

Group profit before exceptional items and tax was US$2,952,000 compared to
US$1,342,000 in 2000, primarily due to the increase in profits of our
agriculture interests in Zimbabwe. Understandably, due to circumstances in
Zimbabwe, those results may not be repeatable in future years. Exceptional
profits have increased to US$6,450,000 (2000 - US$1,948,000) due to the sale
of our portfolios of listed investments. The Group profit attributable to
shareholders was US$7,584,000, which equates to earnings per share of 120.4 US
cents (2000 - 29.3 US cents). Headline earnings per share excluding
exceptional items and the tax thereon was 18.0 US cents (2000 - 6.9 US cents).



The key to the exceptional level of earnings this year was the decision taken
to sell all of our investments in shares listed on the US and South African
stock exchanges. This realised, as Exceptional profits, the increase in the
value of investments over cost which had been built up over a number of years.
The timing of our decision proved to be correct and most investments were sold
at satisfactory prices prior to the major decline in world stock markets. So
far we have reinvested approximately a third of our cash balances in blue chip
European and UK stocks which are currently showing a gain. We continue to
monitor stock markets and will reinvest the balance as opportunities occur.

The commercial agriculture & horticulture interests held through Conafex and
its associated company, Ariston Holdings Limited, had a very successful year,
despite the political and economic situation in Zimbabwe. Their profit
contribution before interest, exceptional items and tax more than doubled due
to the principal export crops of tobacco, tea and flowers all performing well.

Conafex has continued to diversify out of Zimbabwe with the acquisition of
minority stakes in a Rooibos and Honeybush herbal tea producer in South Africa
and a speciality tea packing business in the UK.

The importing, exporting and distribution businesses showed mixed results. The
turnover of our businesses trading non-perishable private label food products
on an international basis has increased by over 90% with volume increases in
both existing and new product lines. The higher contribution from these
businesses has more than offset a decline in the contribution from our South
African tool and machinery import and distribution business which suffered a
reduction in turnover of just over 10%, and the declining exchange rate also
contributed to reduced margins. Our smaller Australian tool and machinery
import and distribution business continues to grow both volumes and profits.

The returns from the Group's investment properties in California have
continued to grow. Lower returns, however, were seen from our properties in
South Africa where we had a reduction in occupancy rates.

Our share of the losses incurred by our Zimbabwean gold mining interests,
including our associate Falcon, were US$205,000 (2000 - US$118,000) as a
result of the deteriorating operating environment, inflation of over 100% and
the continuing low gold price.

We regard the hard currency cash flow from our investments to Luxembourg as a
crucial issue, particularly when considering the level of dividend to
recommend to shareholders. The dividend is being maintained at 8.5 US cents
per share for 2001 because of the exceptional results for the year, despite
limited cash flows received from our subsidiaries. The uncertainty over the
level of future remittances from our interests in Southern Africa due to
currency weaknesses and the political situation means that we cannot expect to
be able to maintain the dividend at the current level in 2002. Our budgets
indicate that shareholders should expect approximately 5.0 US cents as next
year's dividend.

Changes have been made to the Group structure during the year to enhance its
value in hard currency, and to increase assets available as security to the
European banks that finance our international trading operations. We expect
this to facilitate future growth in our import and export businesses.

We strive to achieve real growth in net assets per share in dollars and are
pleased to report that net assets, including investments at market value and
after deducting minority interests, have grown to US$33,281,000 (2000 -
US$32,211,000). Of these US$17,405,000, US$2.76per share, (2000 -
US$11,547,000) are outside Africa following the reorganisation of our Group
structure.

I would like to repeat the words I used last year in respect of our Zimbabwean
assets: 'Your board has carefully considered the carrying value of our
Zimbabwe assets and has decided to continue to incorporate them in to the
Group accounts at depreciated historic cost, translated at year end exchange
rates. It is, of course, not possible, in present circumstances, to estimate a
realistic realiseable value of our Zimbabwean assets. However, most of the
products produced by our interests in Zimbabwe have selling prices denominated
in hard currency and, to a certain extent, this improves their cashflows in
local currency terms in the current uncertain political and economic climate.'
The carrying value of these net assets at 30th September 2001 after deducting
minority interests has increased to US$13,471,000, US$2.14 per share, (2000 -
US$12,132,000) reflecting the undistributed profits of our farming interests.

We are confident that we can capitalise on our strong balance sheet in future
years now that we have increased our net assets outside Africa.

J. M. Robotham                         D. C. Marshall
Chairman                               Chief Executive



Notice of Meeting and Declaration of Dividend

NOTICE OF MEETING

According to the Company's Articles of Incorporation ('Articles'), the Annual
General Meeting of Shareholder's ('AGM') is required to be held on the last
Friday in the month of March. The Articles further state that if the AGM
cannot take place on that date, it should take place on the first preceding
day. Because Friday 29th March 2002 is Good Friday, the AGM should take place
on Thursday 28th March 2002. However, it was not considered that this date
would be convenient to shareholders and it has been decided to bring forward
the meeting. Accordingly the Annual General Meeting will take place on Tuesday
26th March 2002 at 4.00 p.m. at the registered office of the Company, 6 rue
Adolphe Fischer L-1520 Luxembourg.

A dividend of 8.5 US cents per share is proposed to be paid on 3rd May 2002 to
those shareholders registered at the close of business on 28th March 2002.

Copies of the annual report and accounts will be posted to shareholders in
February 2002.



CONSOLIDATED PROFIT AND LOSS ACCOUNT

(Unaudited)


FOR THE YEAR ENDED 30th SEPTEMBER              Notes        2001          2000
                                                          US$000        US$000
Group revenue including our share of                      41,799        37,917
associated companies
Less revenue of associated companies                     (15,861)      (12,866)
Group revenue                                             25,938        25,051
Operating costs                                          (24,155)      (23,651)
Operating profit                                           1,783         1,400
Share of associated companies results                       2,052          616
Income from investments - dividends                          317           435
                        - interest                           294           200

Interest paid and similar charges                         (1,494)       (1,309)
Profit on ordinary activities before                       2,952         1,342
exceptional items and tax
Exceptional items                                1         6,450         1,948
Profit on ordinary activities before tax                   9,402         3,290
Tax                                                         (691)         (446)
Profit after tax                                            8,711        2,844
Minority interests                                        (1,127)         (999)
Profit attributable to shareholders                        7,584         1,845
Appropriation to legal reserve                              (355)           (6)
Proposed dividend                                           (536)         (536)
Retained profit for the year                               6,693         1,303
Basic earnings per share US cents                2         120.4c         29.3c
Fully diluted earnings per share US cents                  120.4c         28.4c
Headline earnings per share US cents             2          18.0c          6.9c
Dividend per share US cents                                  8.5c          8.5c

    Notes:                                                US$000        US$000

1. Exceptional Items
   Surplus on disposal of investments                      7,036           992
   Surplus on disposal of tangible fixed                       3           901
   assets
   Devaluation of South African investment                  (589)            -
   properties
   Share of associate                                          -            55
                                                           6,450         1,948


2. Earnings per share are based on the results attributable to shareholders and
   a weighted average number of shares in issue during the year - 6,300,000
   (2000 - 6,300,000).


SUMMARISED PROFORMA CONSOLIDATED BALANCE SHEET

(Unaudited)


AT 30TH SEPTEMBER                                             2001        2000
                                                            US$000      US$000
Fixed assets
Tangible assets                                             20,233      21,633
Investments in listed associated companies                  11,717      10,261
(market value US$13,876,000 (2000 - US$9,769,000))
Listed general portfolio                                     2,385       7,013
(market value US$3,281,000 (2000 - US$14,947,000))
Unlisted associates and other investments                      543         117
                                                            34,878      39,024
Current assets
Inventories                                                  7,066       5,176
Debtors                                                      4,944       4,118
Cash and bank balances                                       8,083       1,493
                                                            20,093      10,787
Current liabilities
Creditors (falling due within one year)                     (9,154)    (10,786)

Net current assets                                          10,939            1

Total assets less current liabilities                       45,817      39,025
Creditors (falling due after more than one year)            (3,485)     (3,876)
Provisions for liabilities and charges Deferred taxation    (2,636)     (2,654)
                                                            39,696      32,495
Capital and reserves
Called up share capital                                      9,450       9,450
Share premium account                                            -       2,411
Other reserves                                               7,488       6,760
Retained earnings                                           14,177       5,979
Shareholders' funds                                         31,115      24,600
Minority interests                                           8,581       7,895
                                                             39,696     32,495

Net assets per share, including investments at market       US$5.28     US$5.11
value

Net assets per share, outside Africa                        US$2.76     US$1.83

Net assets per share, inside Africa                         US$2.52     US$3.28



CONSOLIDATED STATEMENT OF RECOGNISED GAINS AND LOSSES

Group share of surplus on revaluation of properties                 -    2,630
Exchange differences on translation of the financial
statements of
foreign entities
                                                                (178)   (4,030)
Net loss not recognised in the income statement                 (178)   (1,400)

Net profit for the period                                       7,584     1,845

Total recognised profits                                       7,406       445

Transfer to legal reserve                                       (355)        -
Proposed dividend
                                                                (536)     (536)
Increase/(decrease) in shareholders' funds                     6,515       (91)
Shareholders' funds brought forward                            24,600    24,691

Shareholders' funds carried forward                            31,115    24,600



CONSOLIDATED CASH FLOW STATEMENT
for the year ended 30th September                             2001         2000
                                                            US$000       US$000
Operating activities
Cash generated from operations                              1,796           51
Interest paid                                                (884)      (1,309)
Taxation                                                     (604)        (520)

Net cash outflow from operating activities                    308       (1,778)

Investment activities
Purchase of tangible assets                                  (177)         405
Purchase of investments                                      (502)      (3,005)
Disposal of investments                                    10,782        4,259
Interest received and other investment income                 611          635
Dividends received from associates                            296          227

Net cash inflow from investment activities                 11,010        2,521

Net cash inflow before financing                           11,318          743

Financing activities
Decrease in long term debt                                   (245)         235
Foreign exchange cost of subsidiary's dividend               (610)           -
Dividend - group                                             (536)        (536)
- minorities                                                 (170)         (76)

Net cash outflow from financing activities                 (1,561)        (377)

Net decrease in debt                                        9,757          366

Net debt at 1st October                                    (2,750)      (3,487)

Effect of foreign exchange rate changes                       381          371
Net cash/(debt) at 30th September                           7,388       (2,750)


Notes:
1. These preliminary results for the year ended 30th September 2001 and the
   balance sheet at that date, which are unaudited, have been prepared on the
   basis of accounting policies adopted for the period ended 30th September
   2000. These financial statements do not comply with the requirements of IAS
   29 (Financial reporting in Hyperinflationary Economies). The results, which
   have been reviewed by the Company's auditors, Deloitte & Touche S.A., are
   unaudited.

2. Net group capital expenditure in the year was US$177,000 (2000 - negative
   US$405,000); there were no capital expenditure commitments at 30th September
   2001 (2000 - US$ nil).

3. Bank loans and overdrafts of US$2,667,000 (2000: US$4,243,000) are included
   in current liabilities. Group long term finance is secured on various local
   properties and bears interest at local commercial rates.



                                                                                
                                                                                
                                                                                
      

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