quality assets
RAH
GPI's effective stake: 30,57%
GPI directly owns 30,57% of RAH, through a 100% held subsidiary company.RAH is a JSE-listed investment holding company that holds its core investments in gaming assets in the Western Cape, KwaZulu-Natal, Gauteng and the Eastern Cape. The gaming industry continues to enjoy favourable trading conditions in South Africa, notwithstanding the general slow-down in consumer spending and it is expected that the resilience of earnings in the industry will continue.
RAH’s principal assets are its interests in four casinos, being Carnival City, Sibaya, Boardwalk and GrandWest. In addition, RAH has interests in the management companies of each of the aforementioned casinos, as well as Sun International’s National Casino Management Company. In addition to the above interests, RAH holds an interest in Worcester Casino (Golden Valley).
| PROFIT AND DIVIDEND ANNOUNCEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2009 |
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| GROUP STATEMENTS OF COMPREHENSIVE INCOME | |||
| Six months ended 31 December | Year ended 30 June | ||
| 2009 | 2008 | 2009 | |
| R'000 | Unaudited | Unaudited | Audited |
| Revenue | 34 404 | 42 839 | 77 041 |
|---|---|---|---|
| Net investment losses | (1,049) | (9,382) | (6,694) |
| Share of profits of associates | 19 025 | 24 820 | 47 731 |
| Interest income | 734 | 1 851 | 3 582 |
| Operating income | 53 114 | 60 128 | 121 660 |
| Operating costs | (2 280) | (2 592) | (4 690) |
| Amortisation | (3 303) | (3 791) | (7 584) |
| Impairment of intangible asset | - | - | (11 818) |
| Interest expense | - | ( 258) | ( 602) |
| Profit before tax | 47 531 | 53 487 | 96 966 |
| Tax | ( 193) | ( 425) | 1 740 |
| Profit for the period | 47 338 | 53 062 | 98 706 |
| Other comprehensive income | |||
| Changes in fair value of available-for-sale financial instruments, net of tax | (54,288) | 75 933 | (21,184) |
| Total comprehensive income for the period | (6,950) | 128 995 | 77 522 |
| Profit for the period attributable to: | |||
| Minority shareholder | 4 439 | 3 816 | 6 758 |
| Ordinary shareholders | 42 899 | 49 246 | 91 948 |
| 47 338 | 53 062 | 98 706 | |
| 0 | 0 | ||
| Total comprehensive income for the period attributable to: | |||
| Minority shareholder | 628 | 8 407 | 3 331 |
| Ordinary shareholders | (7 578) | 120 588 | 74 191 |
| (6 950) | 128 995 | 77 522 | |
| Earnings per share (cents) | 11.9 | 13.6 | 25.4 |
| Headline earnings per share (cents) | 11.9 | 16.1 | 30.1 |
| GROUP BALANCE SHEETS | |||
| 31 December | 30 June | ||
| 2009 | 2008 | 2009 | |
| R'000 | Unaudited | Unaudited | Audited |
| ASSETS | |||
| Non current assets | |||
| Investment in associates | 107 729 | 123 557 | 107 334 |
| Available-for-sale investments | 657 229 | 808 635 | 711 518 |
| 764 958 | 932 192 | 818 852 | |
| Current assets | |||
| Accounts receivable | 23 | - | 377 |
| Tax | 2 673 | 2 446 | 2 575 |
| Cash and cash equivalents | 23 733 | 29 991 | 28 867 |
| 26 429 | 32 437 | 31 819 | |
| Total assets | 791 387 | 964 629 | 850 671 |
| EQUITY AND LIABILITIES | |||
| Capital and reserves | |||
| Ordinary shareholders' equity | 723 480 | 841 290 | 780 487 |
| Minority interest | 54 841 | 65 091 | 56 465 |
| 778 321 | 906 381 | 836 952 | |
| Non current liabilities | |||
| Preference shares | - | 15 000 | - |
| Deferred tax | - | 264 | - |
| Tax | 12 315 | 14 548 | 12 315 |
| 12 315 | 29 812 | 12 315 | |
| Current liabilities | |||
| Accounts payable and accruals | 751 | 1 307 | 1 404 |
| Provisions | - | 27 000 | - |
| Tax | - | 129 | - |
| 751 | 28 436 | 1 404 | |
| Total liabilities | 13 066 | 58 248 | 13 719 |
| Total equity and liabilities | 791 387 | 964 629 | ;850 671 |
| SUMMARISED GROUP CASH FLOW STATEMENTS | Six months ended 31 December | Year ended 30 June | |
| 2009 | 2008 | 2009 | |
| R'000 | Unaudited | Unaudited | Audited |
| Cash flows from operating activities | (3 918) | (3 849) | (6 436) |
| Cash flows from investing activities | 50 469 | 74 234 | 108 997 |
| Cash flows from financing activities | (51 685) | (82 628) | (115 928) |
| Net cash flows | ( 5 134) | ( 12 243) | ( 13 367) |
ACCOUNTING POLICIES
The condensed consolidated financial information for the six months ended 31 December 2009 has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) and the presentation and disclosure requirements of IAS 34 – Interim Financial Reporting. The accounting policies applied, other than those described below, are consistent with those adopted in the financial statements for the year ended 30 June 2009.
The group has adopted the following new standard and amendment which are mandatory for the first time for the financial year beginning 1 July 2009:
• IAS 1 (Revised) – Presentation of Financial Statements, which requires changes in equity not relating to equity owners to be disclosed in a separate statement. As permitted by the standard, the group has elected to present the required information in a single statement of comprehensive income.
• IFRS 8 – Operating Segments, which requires an entity to present segment information on the same basis as that used for internal reporting purposes, which had no impact on the interim statements.
REVIEW OF RESULTS
Revenue of R34.4 million, comprising of dividends received, was R8.4 million below the previous period due to lower dividends received from SunWest and no dividends declared by Emfuleni.
The net investment loss of R1 million (2008: R9.4 million) relates to contributions made to the Biotech Venture Fund. The comparative period included a R9 million increase of the pension fund provision relating to Life Esidimeni (Pty) Ltd.
The share of profits of associates includes the group’s share of income from Afrisun Gauteng, Zonwabise as well as the management companies. The share of profits of associates has reduced mainly due to the difficult trading conditions experienced at Carnival City (Afrisun Gauteng).
Interest income has reduced due to surplus cash having been utilised to settle the group’s obligation to Life Esidimeni in respect of the Lifecare Group Holdings Pension Fund. The group also has no interest expense due to the settlement of all the remaining preference shares during the previous year. Headline earnings per share of 11.9 cents declined by 26% from the prior period due to the lower dividends received in the current period.
The board has declared an interim dividend of 12 cents per share.
NON CURRENT ASSETS
During the period, the group’s effective interest in Afrisun Leisure’s underlying investments remained unchanged. The value of Afrisun Leisure has decreased by 12.4% from R1 153 million at 30 June 2009 to R1 010 million principally due to difficult trading conditions experienced in the underlying casino investments.
DIRECTORATE
Younaid Waja was appointed an independent non-executive director on 1 February 2010.
OUTLOOK
Trading at the group’s major investments is expected to stabilise and some growth in revenue is expected for the remainder of the year.
DIVIDEND
Notice is hereby given that an interim dividend of 12 cents per share for the six months ended 31 December 2009 (2008: 4 cents) has been declared, payable to shareholders recorded in the register of the company at the close of business on the record date appearing below. The salient dates applicable to the interim dividend are as follows:
| 2010 | |
| Last day to trade cum interim dividend | Thursday, 18 March |
| First day to trade ex interim dividend | Friday, 19 March |
| Record date | Friday, 26 March |
| Payment date | Monday, 29 March |
No share certificates may be dematerialised or rematerialised between Friday, 19 March and Friday, 26 March 2010, both days inclusive. Dividend cheques will be posted and electronic payments made, where applicable, to certificated shareholders on the payment date. Dematerialised shareholders will have their accounts with their Central Securities Depository Participant or broker credited on the payment date.
For and on behalf of the board:
| MV Moosa | RP Becker | |
| Chairman | Financial director |
3 March 2010
Registered office
27 Fredman Drive, Sandown, Sandton, 2031
Transfer secretaries
Computershare Investor Services (Pty) Ltd, 70 Marshall Street, Johannesburg, 2001
Sponsor
Investec Bank Limited
Directors
MV Moosa (Chairman), RP Becker (Financial director), DC Coutts-Trotter, MJ Leeming, MMT Ramano, Y Waja
Secretaries
Sun International Corporate Services (Pty) Limited