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UNAUDITED CONDENSED CONSOLIDATED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2012

STRATCORP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2000/031842/06)
JSE code: STA   ISIN ZAE 000034294
("StratCorp" or "the company" or "the group")

UNAUDITED CONDENSED CONSOLIDATED FINANCIAL RESULTS FOR THE SIX MONTHS
ENDED 31 AUGUST 2012

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

                                             Aug 2011
                                    Aug 2012 Unaudited Feb 2012
Figures in R'000                   Unaudited Reclassif Audited
                                                ied*

Assets
Non-Current Assets
Property, plant and equipment          4,834       5,523     5,528
Goodwill                               1,318       1,318     1,318
Intangible assets                      3,233       3,461     3,425
Investments in associates                  -       2,796         -
Financial assets                          67          43        57
Deferred tax                           5,643       8,653     5,902
Finance lease receivables                173         353       241
                                      15,268      22,147    16,471
Current Assets
Inventories                            1,051       1,087     1,583
Financial assets                         286         919     1,525
Finance lease receivables                281         378       311
Trade and other receivables            1,100       4,525     1,510
Cash and cash equivalents                168         397     1,062
                                       2,886       7,306     5,991
Current assets held for sale and
                                      28,434      38,714    28,994
assets of disposal groups
Total Assets                          46,588      68,167    51,456

Equity and Liabilities
Equity
Share capital                         43,641       43,641   43,641
Reserves                                   -           50       33
Accumulated loss                    (40,503)     (12,568) (35,432)
                                       3,138       31,123    8,242
Liabilities
Non-Current Liabilities
Financial liabilities                  8,793       8,893     8,793
Finance lease obligation                 829         914     1,121
Deferred tax                           3,465           -          3,655
                                      13,087       9,807         13,569
Current Liabilities
Financial liabilities                  1,646        2,258         1,348
Finance lease obligation                 499          393           593
Operating lease liability                847          637           756
Trade and other payables               5,567        5,694         7,663
Bank overdraft                         4,626        3,332         3,325
                                      13,185       12,314        13,685
Liabilities of disposal groups        17,178       14,922        15,960
Total Liabilities                     43,450       37,044        43,212
Total Equity and Liabilities          46,588       68,167        51,456

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

                                       Aug 2012 Aug 2011 Feb 2012
                                      Unaudited Unaudited Audited
Figures in R'000                                Reclassif
                                                   ied*
Continuing operations
Revenue                                  24,411      28,483        55,252
Cost of sales                           (7,145)     (6,235)      (13,694)
Gross profit                             17,266      22,248        41,558
Other income                                895       1,131           635
Operating expenses                     (22,129)    (22,312)      (49,843)
Profit on sale of associate                   -           -         2,391
Operating (loss) profit                 (3,968)       1,067       (5,260)
Investment revenue                           69          45           213
Income from equity accounted                  -       1,003         1,148
investments
Finance costs                           (1,049)       (953)       (1,890)
Loss before taxation                    (4,948)       1,162       (5,789)
Taxation                                   (92)       (458)       (5,550)
Loss from continuing operations         (5,039)         704      (11,340)
Discontinued operations
Loss from discontinued operations          (65)     (1,261)      (10,758)
Loss for the period                     (5,104)       (557)      (22,098)
Other comprehensive loss:
Exchange differences on translating            -            88            62
foreign operations
Taxation related to components of              -       (27)       (1,340)
other comprehensive income
Other comprehensive loss for the
                                               -            61    (1,278)
period net of taxation
Total comprehensive loss                (5,104)       (496)      (23,377)
Attributable to:
Owners of the parent:
Loss for the period from continuing       (5,039)            704     (11,340)
operations
Loss for the period from                        (65)     (1,261)     (10,758)
discontinuing operations (3)
Loss for the period attributable to
                                          (5,104)          (557)     (22,098)
owners of the parent

Total comprehensive loss attributable
to:
Owners of the parent                      (5,104)          (496)     (23,377)
Loss per share
From continuing and discontinued
operations
Basic and diluted loss per share (c)       (3.22)         (0.35)      (13.96)
Basic and diluted (loss)/profit per        (3.18)           0.44       (7.16)
share from continuing operations (c)
Basic and diluted loss per share from      (0.04)         (0.79)       (6.80)
discontinued operations (c)

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

                    Share                              Accumulated      Total
Figures in R'000             FCTR         FVA
                   capital                                 loss        equity


Balance at 1        43,641     (11)              -        (12,011)      31,619
March 2011
Changes in
equity
Total                    -          61           -           (557)       (496)
comprehensive
loss
Balance at 1
                    43,641          50           -       (12,568))      31,123
Sept 2011
Changes in
equity
Total                    -     (17)      (1,323)          (21,541)    (22,881)
comprehensive
income for the
year
Transfer between         -           -     1,323           (1,323)              -
reserves
Balance at 1
                    43,641          33           -        (35,432)       8,242
March 2012
Changes in
equity
Total                    -         -         -      (5,104)   (5,104)
comprehensive
income for the
year
Transfer between         -      (33)                     33         -
reserves
Balance at 31
                    43,641         -         -     (40,503)     3,138
August 2012
FCTR - Foreign Currency Translation Reserve
FVA - Fair value adjustments through other comprehensive income reserve

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

                                                    Aug 2011
                                           Aug 2012 Unaudite    Feb
             Figures in R'000              Unaudite     d      2012
                                               d    Reclassi Audited
                                                      fied*
Cash flows from operating activities           (3,712)     375   (2,524)
Cash flows from discontinued operations          1,750     212     (932)
Cash flows from investing activities               903 (1,379)     3,196
Cash flows from financing activities           (1,137)   2,572     2,902
Total cash movement for the period             (2,195)   1,780    2,642
Cash at the beginning of the period         (2,263) (4,715)      (4,905)
Total cash at end of the period            (4,458) (2,935)       (2,263)


HEADLINE AND DILUTED HEADLINE LOSS PER SHARE

Headline loss per share and diluted headline loss per share are
determined by dividing headline loss and diluted headline loss by the
weighted average number of ordinary share outstanding during a period.

The group followed SAICA Circular 3/2009 in calculating headline loss
and diluted headline loss per share for the group and company.
Headline loss and diluted headline loss are determined by adjusting
basic earnings and diluted earnings by excluding separately identifiable
re-measurement items. Headline loss and diluted headline loss are
presented after tax and non- controlling interest.

Diluted headline loss per share is equal to headline loss per share
because there are no dilutive potential ordinary shares in issue.
Headline loss per share was based on a headline loss of the group of
R5.053 million (2011: loss of R578 thousand) and a weighted average
number of ordinary shares of 158,311,597 (2011: 158,311,597).

                                                        Aug 2011
                                              Aug 2012          Feb 2012
                                                       Unaudite
                                             Unaudited     d     Audited


Headline and diluted headline loss per
share (c)                                      (3.19)     (0.37) (10.76)


Reconciliation between loss and headline
loss R'000
Basic loss                                    (5,104)      (557) (22,098)
Adjusted for:                                       -
Profit on disposal of investment in
associate                                           -              (2,390)
Loss recognised on the measurement to fair
value less cost to
sell constituting discontinued operations                            7,101
Loss (profit) on disposal of investment
properties                                                             14
Loss/(Profit) on disposal of property
plant and equipment                                12       (24)       15
Loss on disposal of investments in
subsidiaries                                       41                 (3)
Impairment of intangible assets
Tax effect thereon                                (2)          3      331
                                              (5,053)      (578) (17,030)

Condensed Segmental Analysis
                                          Aug 2012   Aug 2011       Feb 2012
                                         Unaudited Unaudited         Audited
                                                Reclassified*
                                             R'000      R'000          R'000
Revenue
Continuing operations
Financial products                            19,751      16,506      33,981
Health & Wellness products                     7,371      11,333      19,245
General finance                                  149         196         365
Corporate services & other                         -       9,501       1,661
Inter segment eliminations                   (2,860)     (9,533)           -
                                              24,411      28,003      55,252
Discontinued operations                        1,267       3,339       4,992

Profit / (loss)
Continuing operations
Financial products                             (323)       1,611          47
Health & Wellness products                   (2,065)     (1,507)     (2,414)
General finance                                 (53)       (113)       (583)
Corporate services & other                   (2,667)       1,390     (8,390)
Inter segment eliminations                        69       (194)           -
                                             (5,039)         704    (11,340)
Discontinued operations                       (65)    (1,261)   (10,758)
                                           (5,104)      (557)   (22,098)
Segment assets
Financial products                           4,720      5,502     3,579
Health & Wellness products                   1,625      4,383     2,921
General finance                                835      1,635       881
Corporate services & other                  15,591     61,460    15,081
Assets of disposal groups                   28,434     38,714    28,994
Inter segment eliminations                 (4,617)   (43,527)         -
                                            46,588     68,167    51,456
Segment liabilities
Financial products                           2,245      2,962     3,715
Health & Wellness products                   2,105      1,789     3,491
General finance                                 18         27        61
Corporate services & other                  20,064     17,344    19,987
Liabilities of disposal groups              17,178     14,922    15,960
Inter segment eliminations                   1,840          -         -
                                            43,450     37,044    43,214

*Reclassified to reflect the effect of the discontinued operations

BUSINESS OVERVIEW
The tough market and trading conditions that the company reported on for
its 2012 financial year continued for the six month period under review.
The disposable income of the client base of the group remained under
pressure and the group companies experienced a net decline in
subscriptions over this period.
I-Cura. Various initiatives have been implemented in order to increase
revenue, which includes telesales and the distribution of the health and
wellness products through wholesale and retail markets. The telesales
in I-Cura has shown promising growth over the last four months of the
period under review, as well as to the date of this announcement. I-
Cura has also been successful in introducing a number of wholesalers for
its product range, and introduced new products such as the energizer and
multi-vitamin, throat spray and mouthwash products to its client base.
Various marketing initiatives are being implemented to attract a higher
LSM client base.
Virtus. The Virtus range of products has been restructured to provide
clients with flexibility in their choice of products they want to
subscribe for. The investment product remains the main choice of the
client base. Plans are being implemented in attracting a higher LSM
client base.
StratProp. The disposal of the Soldonné Residential complex has been
finalised with the transfer of the properties to the purchaser on 9
November 2012. The proceeds were inter alia used to reduce interest
bearing debt by R6.45 million, which will result in an annual interest
saving of R675 000 for the group.
Group. The restructuring program that was implemented in May 2012, have
reduced expenditure within the group by R500 000 per month since July
2012. Since March 2012 to the date of this report overall expenditure of
the group has been reduced by R1 000 000 per month.   The only
outstanding issue with regards to cost reduction from the restructuring
plan that needs to be finalised is the lease over the head office in
Centurion and management is in discussions with the landlord to resolve
this as soon as possible. There were a number of initiatives planned and
implemented from September 2012 to ensure that revenues in the
subsidiaries increase in future.
CASH FLOWS
A net cash inflow of R0.9 million was recorded for the period under
review, through the tight management of cash and reduction of expenses.
Cash utilised in the operations increased from R0.2 million in 2011 to
R2.5 million in 2012. The final payment received from the purchaser of
StratCol in April 2012 alleviated some of the cash requirements of the
group. Infrastructural expenses (property, plant and equipment)
decreased from R1.3 million in 2011 to R0.5 million for 2012.
PROSPECTS
The group has implemented various strategies to increase revenue and
manage costs tightly. Some of the cost savings from the restructuring
program has already filtered through in the financial results of the
group. Management do not expect a significant improvement in trading
conditions and results for the remainder of the financial year, but are
positive that the income generating strategies will start contributing
to increased revenue and results in the 2014 financial year.

The remaining cash that was realised from the sale of the Soldonné
complex will be utilised to support the current operational cash
shortfall and to implement the various marketing strategies in the other
subsidiaries.
The financial information on which the prospects are based has not been
reviewed or reported on by the company`s auditors.

GOING CONCERN
The condensed consolidated interim financial results have been prepared
on the basis of accounting policies applicable to a going concern. This
basis presumes that funds will be available to finance future operations
and that the realisation of assets and settlement of liabilities,
contingent obligations and commitments will occur in the ordinary course
of business. The directors constantly review the business models of the
group and its operating subsidiaries to ensure sustainability and the
ability to operate profitably and generate positive cash flows. Funding
facilities are also reviewed regularly to ensure that the group has
sufficient facilities in place to finance its operations.

The Group incurred a net loss of R 5.1 million for the six months ended
31 August 2012, and the current liabilities of the Group exceed its
current assets at 31 August 2012. The continued losses incurred by the
Group over the last financial year have placed the cash flows of the
Group under considerable pressure, which threatens the going concern of
the group. The disposal of the Soldonné Residential complex and the
restructuring plan that was implemented to reduce costs, realise non-
core assets and reduce debt, enables the Group to continue operating as
a going concern. The continued going concern of the Group is subject to
the successful implementation of the growth strategies of the Group and
the access to sufficient cash resources to enable the Group to implement
the growth strategy.

BASIS OF PREPARATION
Statement of compliance
The unaudited condensedconsolidatedinterim financial results comprise a
condensed consolidated statement of financial position at 31 August
2012, a condensed consolidated statement of comprehensive income, a
condensed consolidated statement of changes in equity and a condensed
consolidated statement of cash flow for the six months ended 31 August
2012. The unaudited condensed consolidated interimfinancial results
have been prepared in accordance with the framework concepts and the
measurement and recognition requirements of International Financial
Reporting Standards ("IFRS"), the AC500 standards as issued by the
Accounting Practices Board, the presentation and disclosure requirements
of IAS34 - Interim Financial reporting, the JSE Listings Requirements
and the South African Companies Act 71 of 2008.

The accounting policies applied for the year, which are in terms of
IFRS, are consistent with those of the prior year.
The interim financial results have been prepared on the historical cost
basis, except in the case of financial instruments which are measured
using fair value and amortised cost models, investment properties that
are measured at fair value and non-current assets held for sale and
assets of disposal groups that are measured in terms of IFRS 5.

RECLASSIFICATION OF COMPARATIVE FIGURES
Certain comparative figures have been reclassified. All income, expenses
and taxation relating to the discontinued operations have been
reclassified to discontinued operations on the statement of
comprehensive income, all assets of the discontinued operation have been
reclassified as non-current assets held for sale and assets of disposal
groups and all liabilities of the discontinued operations have been
reclassified as liabilities of disposal groups on the statement of
financial position.
-    Cash flows from operating, investing and financing activities for
discontinued operations have also been reclassified as
cash flows from discontinued operations on the statement of cash flows;
-    All deferred tax assets and liabilities and taxation income and
     expenses relating to discontinued operations have been reclassified
     as tax from discontinued operations; and
-    Earnings per share from continuing and discontinued operations have
     also been reclassified.

These reclassifications of prior year comparatives were done in terms of
IFRS 5.
The effects of the reclassifications on the 2011 condensed consolidated
interim financial results were as follows:

Consolidated Statement of comprehensive income


Figures in R'000                           Previously Reclassified
                                           stated
Continuing operations
Revenue                                           31,342       28,483
Operating profit                                      14        1,067
Investment revenue                                                 45
Income from equity accounted investments           1,003        1,003
Finance cost                                     (1,669)        (953)
Loss before taxation                               (652)        1,162
Taxation                                             184        (458)
Loss from continuing operations                    (468)          704
Discontinued operations
Loss from discontinued operations                   (89)      (1,261)
Loss for the period                                (557)        (557)

Other comprehensive income:
Exchange differences on translating
foreign operations                                    88           88
Taxation related to components of other
comprehensive income                                (27)         (27)
Total comprehensive loss for the period            (496)        (496)
Loss per share
Basic and diluted loss per share (c)              (0.35)       (0.35)
  ? From continuing operations (c)                (0.30)         0.44
  ? From discontinued operations (c)              (0.05)       (0.79)
Headline loss (c)                                 (0.37)       (0.37)




Consolidated Statement of financial position
                                                 Previously Reclassifi
Figures in R'000                                   stated       ed

Assets
Non-Current Assets
Property, plant and equipment                         6,212      5,523
Goodwill                                             1,318       1,318
Intangible assets                                    3,461       3,461
Investments in associates                            2,796       2,796
Financial assets                                        43          43
Deferred tax                                        11,531       8,653
Finance lease receivables                              353         353
                                                    25,714      22,147
Current Assets
Inventories                                         37,738       1,087
 Financial assets                                      919         919
Finance lease receivables                              378         378
Trade and other receivables                          5,234       4,525
Cash and cash equivalents                              397         397
                                                    44,666       7,306
Current assets held for sale and assets of
                                                          27    38,714
disposal groups
Total Assets                                        70,407      68,167

Equity and Liabilities
Equity
Share capital                                       43,641       43,641
Reserves                                                50           50
Accumulated loss                                  (12,568)     (12,568)
                                                    31,123       31,123
Liabilities
Non-Current Liabilities
Financial liabilities                               11,842       8,893
Finance lease obligation                               914         914
Deferred tax                                         2,204           -
                                                    14,960       9,807
Current Liabilities
Financial liabilities                                2,281       2,258
Finance lease obligation                               393         393
Operating lease liability                              688         637
Trade and other payables                            12,008       5,695
Bank overdraft                                       8,725       3,332
                                                    24,095      12,315
Liabilities of disposal groups                         229      14,923
Total Liabilities                                   39,284      37,045
Total Equity and Liabilities                        70,407      68,167


Consolidated Statement of cash flows


Figures in R'000                             Previously   Reclassified
                                             stated
Cash flows from operating activities            (173)           375
Cash flows from discontinued operations             60          212
Cash flows from investing activities          (1,334)       (1,379)
Cash flows from financing activities            1,811         2,572
Total cash movement for the year                  364         1,780
Cash at the beginning of the year             (8,692)       (4,715)
Total cash at end of the year                 (8,328)       (2,935)

DIVIDENDS
No dividends were declared or paid to shareholders during the year.

LITIGATION
There is a potential dispute between a subsidiary of the company and
regulators. The outcome is uncertain and therefore the impact on the
company, if any, cannot be determined at this time. Depending on how
matters develop, it may have a material effect on the company's
securities.


The directors are not aware of any other legal or arbitration
proceedings, pending or threatened against the group, which may have or
have had, in the 12 months preceding the date of this report, a material
effect on the group's financial position.

On behalf of the board.

D B Harington
Chief Executive Officer

JHP Engelbrecht
Group Financial Director

27 November 2012
CORPORATE INFORMATION
Non-executive directors: PJ de Jongh (Chairman), M Patel*
(Chairman of Audit Committee), TG Ratau
*Independent
Executive directors: DB Harington (CEO), JHP Engelbrecht (GFD), IM
Wright (CIO)
Registered address: 3rd Floor, Lakeside Building A, 2004 Gordon Hood
Drive, Centurion, 0046
Postal address: PO Box 12022, Centurion, 0046
Company secretary: NW Moffatt
Telephone: (012) 643 7400
Facsimile: (012) 663 2914
Transfer secretaries: Computershare Investor Services (Pty) Limited
Auditors: Nexia SAB&T
Designated Adviser: Exchange Sponsors

Date: 27/11/2012 03:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
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