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RAH

GPI's effective stake: 30,6%


GPI directly owns 30,6% 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 has recently acquired an interest in Worcester Casino (Golden Valley), and has also disposed of its investments in the health-care sector.

PROFIT AND DIVIDEND ANNOUNCEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2008

GROUP INCOME STATEMENTS      
      Year ended 30
  Six months ended 31 December June
  2008 2007 2008
R'000 Unaudited Unaudited  
Revenue 42 839 1 532 67 408
Net investment (losses)/profits (9,382) 89 635 95 389
Share of profits of associates 24 820 24 650 48 946
Interest income 1 851 3 030 4 450
Litigation settlement - 110 000 110 000
Operating income 60 128 228 847 326 193
Operating costs (2 592) (4 167) (6 765)
Amortisation (3 791) (4 641) (7 584)
Interest expense ( 258) (4 001) (5 647)
Profit before tax 53 487 216 038 306 197
Tax ( 425) (29 425) (33 720)
Profit 53 062 186 613 272 477
Attributable to:      
Minority 3 816 32 063 44 713
Ordinary shareholders 49 246 154 550 227 764
  53 062 186 613 272 477
Earnings per share (cents) 13.6 42.7 63.0
Headline earnings per share (cents) 16.1 19.3 37.7

GROUP BALANCE SHEETS      
  31 December   30 June
  2008 2007 2008
R'000 Unaudited Unaudited Restated
ASSETS      
Non current assets      
Investments in associates 123 557 146 634 132 073
Available-for-sale investments 808 635 1 077 833 732 702
  932 192 1 224 467 864 775
Current assets      
Trade and other receivables - 23 245
Tax 2 446 - 2 374
Cash and cash equivalents 29 991 - 42 234
  32 437 23 44 853
Total assets 964 629 1 224 490 909 628
       
EQUITY AND LIABILITIES      
Capital and reserves      
Ordinary shareholders' equity 841 290 1 026 282 778 617
Minority interest 65 091 102 917 58 747
  906 381 1 129 199 837 364
Non current liabilities      
Preference shares 15 000 49 122 37 392
Deferred tax 264 264 264
Tax 14 548 - 14 548
  29 812 49 386 52 204
Current liabilities      
Trade and other payables 1 307 329 2 003
Provisions 27 000 18 000 18 000
Bank overdraft - 8 954 -
Tax 129 18 622 57
  28 436 45 905 20 060
Total liabilities 58 248 95 291 72 264
Total equity and liabilities 964 629 1 224 490 909 628

SUMMARISED GROUP CASH FLOW STATEMENTS      
      Year ended 30
  Six months ended 31 December June
  2008 2007 2008
R'000 Unaudited Unaudited  
Cash flows from operating activities (3 849) 132 193 73 610
Cash flows from investing activities 74 234 163 204 278 774
Cash flows from financing activities (82 628) (341 507) (347 306)
Net cash flows ( 12 243) ( 46 110) 5 078

GROUP STATEMENT OF CHANGES IN EQUITY              
Restated



R'000
Ordinary
share
capital
and
premium
Capital
redemption
reserve
Non-
controlling
reserve
Retained
earnings
Fair
value
reserve
Minority
interest
Total
Balances at 30 June 2007 85 161 1 080 (3 751) 262 014 803 334 150 656 1 298 494
Profit       227 764   44 713 272 477
Dividends paid       (198 824)   (41 644) (240 468)
Investment revaluation         (265 465) (22 350) (287 815)
Purchase of minorities' interests     (14 192)     (63 712) (77 904)
Movement in treasury shares 1 881           1 881
Balances at 30 June 2008 as previously stated 87 042 1 080 (17 943) 290 954 537 869 67 663 966 665
Impact of restatement         (120 385) (8 916) (129 301)
Restated balances at 30 June 2008 87 042 1 080 (17 943) 290 954 417 484 58 747 837 364
Profit       49 246   3 816 53 062
Dividends paid       (57 915)   (2 063) (59 978)
Investment revaluation         71 342 4 591 75 933
Balances at 31 December 2008 87 042 1 080 (17 943) 282 285 488 826 65 091 906 381

HEADLINE EARNINGS PER SHARE Year ended 30
  Six months ended 31 December June
  2008 2007 2008
R'000 Unaudited Unaudited  
Headline earnings per share (cents) 16.1 19.3 37.7
Weighted average number of shares (million) 361.6 361.6 361.6
Reconciliation of headline earnings (R'000)      
Earnings attributable to ordinary shareholders 49 246 154 550 227 764
Adjusted for:      
   Realised investment profits - (90 705) (114 930)
   Provision for pension fund exposure 9 000 - 18 000
   Tax on above items - 5 940 5 560
Headline earnings 58 246 69 785 136 394
       

NET ASSET VALUE      
  31 December   30 June
  2008 2007 2008
R'000 Unaudited Unaudited  
Afrisun Leisure 1 246 810 1 566 787 1 041 836
Other net liabilities (27 788) (18 000) (22 610)
Cash/(bank overdraft) 18 432 (9 629) 30 722
Borrowings (7 022) (21 497) (7 584)
Net asset value 1 230 432 1 517 661 1 042 364
       
Issued shares net of treasury shares (million) 361.6 361.6 361.6
Net asset value per share (cents) 340 420 288
Notes      
1. Afrisun Leisure's value is stated net of preference share debt and cash.      
2. All the investments held by Afrisun Leisure have been valued using the Discounted Cash Flow (DCF) valuation method applying a discount rate of 12,57% (31 December 2007:13,35%; 30 June 2008:15,10%) at 31 December 2008, to the directors' current estimated future cash flows. A minority discount of 15% has been applied to the valuation of the gaming company investments. The significant volatility in the discounted rates used in the respective valuations is due to the changes in the long term government bonds used as the risk free rate.
  Actual number of shares 361 605 469 361 605 469 361 605 463

ACCOUNTING POLICIES
The unaudited condensed consolidated financial information has been prepared in accordance with the recognition and measurement criteria of all applicable statements and interpretations of International Financial Reporting Standards (IFRS) and is presented in terms of the disclosure requirements set out in IAS 34 - Interim Financial Reporting. The accounting policies applied to the condensed consolidated financial information are consistent with those as set out in the annual financial statements for the year ended 30 June 2008.

RESTATEMENT
As disclosed in the group`s audited annual financial statements for the year ended 30 June 2008, a minority discount of 15% is applied by RAH in determining the fair value of its minority investments. In calculating the fair value of the available-for-sale investments at 30 June 2008, the 15% minority discount was inadvertently omitted. The audited financial statements at 30 June 2008 have been restated to correct this omission. This restatement has no impact on the income statement with the only impact on the balance sheet being:

  Available-   Fair value     
  for-sale   reserve   Minority 
R`000 investments   (Equity)   interest   
Balance as previously stated   862 003    537 869 67 663
Adjustment   (129 301)  (120 385)  (8 916) 
Restated balance  732 702   417 484  58 747 


REVIEW OF RESULTS
Revenue comprising dividends received was above the previous period due to SunWest and Afrisun KZN not having declared a dividend in the prior period. Share premium distributions totalling R42,7 million were effected by these entities in that period.

The net investment loss of R9,4 million (2007: R89,6 million profit) relates primarily to an increase of the pension fund provision relating to Life Esidimeni (Pty) Limited (R9 million), resulting from Life Esidimeni continuing to negotiate a settlement in the matter between the company and the curator of the Life Healthcare Pension Fund. Included in the comparative period is the profit on the sale of Life Esidimeni of R90,7 million following its disposal for R180 million. The share of profits of associates includes the group`s share of income from Afrisun Gauteng, Zonwabise as well as the management companies. Interest expense has been significantly reduced due to the redemption of preference shares during the six months under review.

The tax charge for the comparative six months includes capital gains tax on the litigation settlement and the gain on the disposal of Life Esidimeni. Headline earnings per share declined by 17%. In the prior period, headline earnings included the litigation settlement of R110 million, the impact of which has been partially offset by higher dividends received in the current period.

The board has declared an interim dividend of 4 cents per share.

NON CURRENT ASSETS
During the period, the group`s effective interest in Afrisun Leisure`s underlying investments remained unchanged, except for the shareholding in SunWest that decreased from 14,6% to 14,0% due to SunWest shares issued to GPI on the exercising of options held by GPI. The value of Afrisun Leisure has increased from R1 042 million at 30 June 2008 to R1 247 million principally due to the lower discount rate used in the valuations as a result of a decline in long-term interest rates.

DIRECTORATE
Mr DA Hawton will be retiring from the board of the company on 30 June 2009. The position of chairman, following Mr Hawton`s retirement, will be assumed by Mr MV Moosa. Mr RP Becker, who is presently a member of the board, has been appointed financial director with effect from 5 March 2009.

DIVIDEND
Notice is hereby given that an interim dividend of 4 cents (2007: 8 cents) per share for the six months ended 31 December 2008 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:

2009   
Last day to trade cum interim dividend  Friday, 20 March 
First day to trade ex interim dividend Monday, 23 March
Record date  Friday, 27 March  
Payment date  Monday, 30 March 

No share certificates may be dematerialised or rematerialised between Monday, 23 March and Friday, 27 March 2009, 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   
DA Hawton RP Becker
Chairman   Financial Director
6 March 2009   
   

REGISTERED OFFICE
27 Fredman Drive, Sandown, Sandton, 2031
REGISTRAR
Computershare Investor Services (Pty) Limited, 70 Marshall Street, Johannesburg, 2001
SPONSOR
Investec Bank Limited
DIRECTORS
DA Hawton (Chairman), RP Becker, DC Coutts-Trotter, MJ Leeming, MV Moosa, MMT Ramano
SECRETARIES
Sun International Corporate Services (Pty) Limited