2000/10/06
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2000 [JSE Securities Exchange - SENS]
 
06/10/2000 - 20:03:25

ACUITY GROUP HOLDINGS LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 1998/011074/06)
("ACUITY" OR "THE COMPANY")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2000
CONSOLIDATED GROUP BALANCE SHEET
                                       UNAUDITED      AUDITED      PRO FORMA
                                    30 JUNE 2000  31 DEC 1999   30 JUNE 1999
                                           R'000        R'000          R'000
ASSETS
NON-CURRENT ASSETS
INTANGIBLE ASSETS                         20 811       11 018         14 400
PROPERTY, PLANT AND EQUIPMENT              1 641          969          2 190
INVESTMENTS IN ASSOCIATES                    390          246              -
                                          22 842       12 233         16 590
CURRENT ASSETS
CASH AND CASH EQUIVALENTS                 11 679       10 924         19 305
RECEIVABLES AND PRE-PAYMENTS              27 394       14 530         14 941
SHORT-TERM LOANS                           1 972            -              -
                                          41 045       25 454         34 246
TOTAL ASSETS                              63 887       37 687         50 836
EQUITY AND LIABILITIES
CAPITAL AND RESERVES
SHARE CAPITAL                                933          933           933
SHARE PREMIUM                                481          481           481
NON-DISTRIBUTABLE RESERVES                 7 631        7 743         7 743
ACCUMULATED PROFITS                        6 177        4 228         4 797
ORDINARY SHAREHOLDERS' INTEREST           15 222       13 385        13 954
NON-CURRENT LIABILITIES
LOANS DUE TO VENDORS                      30 152       11 176        27 594
INTEREST BEARING BORROWINGS                  133           54            84
DEFERRED TAX                                 671          436             -
                                          30 956       11 666        27 678
CURRENT LIABILITIES                       17 709       12 636         9 204
TOTAL EQUITY AND LIABILITIES              63 887       37 687        50 836
NET ASSET VALUE PER SHARE (CENTS)           16,3         14,3          15,0
NET ASSET VALUE PER SHARE
(FULLY DILUTED) (CENTS)                     22,9         21,3          21,8
NUMBER OF SHARES IN ISSUE ("000)          93 286       93 286        93 286
FULLY DILUTED NUMBER OF SHARES ("000)    115 085      115 085       115 085
CONSOLIDATED GROUP INCOME STATEMENTS
                                       UNAUDITED      AUDITED      PRO FORMA
                                    30 JUNE 2000  31 DEC 1999   30 JUNE 1999
                                   (SIX MONTHS) (FIFTEEN MONTHS)(SIX MONTHS)
                                           R'000        R'000          R'000
REVENUE                                   12 439       30 464         10 299
OPERATING EXPENSES                      (10 744)     (25 358)        (6 930)
PROFIT FROM OPERATIONS                     1 695        5 106          3 369
NET INTEREST INCOME                          478        1 838            448
SHARE OF RESULTS OF ASSOCIATES              (42)         (91)              -
PROFIT/(LOSS) BEFORE TAX                   2 131        6 853          3 817
INCOME TAX EXPENSE                         (182)      (2 625)        (1 235)
RETAINED INCOME FOR THE PERIOD             1 949        4 228          2 582
HEADLINE EARNINGS PER SHARE (CENTS)          2,6          5,9            3,1
REVIEW OF OPERATIONS
THE ACUITY GROUP BRINGS TOGETHER THE SKILLS OF PROFESSIONALS IN STRATEGY,
MARKETING, MARKETING COMMUNICATIONS, QUANTITATIVE AND QUALITATIVE ANALYSIS,
SYSTEMS AND TECHNOLOGY AND RELATED ASPECTS OF HUMAN RESOURCES MANAGEMENT. OUR
MISSION IS TO HELP BUILD COMPETITIVE VALUE FOR OUR CLIENTS AND OUR STRUCTURE
REFLECTS THE STEPS IN THE PROCESS FOR ACCOMPLISHING THIS MISSION.
SUMMARY OF PERFORMANCE
HEADLINE EPS OF 2,6 CENTS PER SHARE WAS ACHIEVED DURING THE FIRST SIX MONTHS;
THIS COMPARED TO EPS OF 3,1 CENTS FOR THE COMPARABLE PRO FORMA PERIOD AND 5,9
CENTS FOR THE AUDITED 15 MONTHS TO 31 DECEMBER 1999. THE GROUP IS CASH POSITIVE
AND AS SUCH WILL BE LOOKING TO MAKE STRATEGIC INVESTMENTS IN COMPLEMENTARY
ACTIVITIES.
AS IRREVOCABLE UNDERTAKINGS HAS BEEN RECEIVED FROM MORE THAN 50% OF ELIGIBLE
SHAREHOLDERS TO VOTE IN FAVOUR OF THE ACQUISITION OF THE SHARES THE GROUP DOES
NOT OWN IN SBBW HOLDINGS, 49% OF THE RESULTS OF SBBW HOLDINGS HAS BEEN
INCORPORATED WITH EFFECT 1 JUNE 2000.
NEW STRUCTURE
IN OCTOBER 1999, ACUITY BEGAN TO RE-EXAMINE CORE ACTIVITIES WITHIN THE GROUP.
THIS HAS RESULTED IN THE RE-ORGANISATION OF THE GROUP AND THE DISPOSAL OF
NON-CORE BUSINESSES AND HAS CULMINATED IN THE MERGING OF ALL COMPANIES INTO ONE
ENTITY UNDER THE ACUITY BANNER. ACUITY GROUP HOLDINGS NOW
COMPRISES THREE DIVISIONS: ACUITY INSIGHT, ACUITY STRATEGY AND ACUITY VALUE
MANAGEMENT, EACH OF WHICH IS MANAGED BY AN EXECUTIVE DIRECTOR.
ACUITY INSIGHT, HEADED BY HOFFMAN VAN ZYL HELPS CLIENTS OUTTHINK THE
COMPETITION.
* COMPETITIVE KNOWLEDGE: MARKET AND INDUSTRY STUDIES, COMPETITOR INTELLIGENCE
* KNOWLEDGE MANAGEMENT: KNOWLEDGE AUDITS, INFORMATION STRATEGIES, KNOWLEDGE
SHARING ACCULTURATION, KNOWLEDGE MANAGEMENT SYSTEMS
* DECISION SUPPORT TOOLS: DATA BASES/
WAREHOUSES, INTERACTIVE MODELS/-SIMULATIONS, BUSINESS WAR-GAMING, COMPETITIVE
WEBSITE BENCHMARKING, AND INTERNET-BASED RESEARCH
ACUITY STRATEGY IS HEADED UP BY JOHAN BOLT AND HELPS CLIENTS OUTMANOEUVRE THE
COMPETITION.
* FACILITATED STRATEGY DEVELOPMENT: ORGANISATIONAL ALIGNMENT TO STRATEGY,
STRATEGIC CULTURE CHANGE, DRILL-DOWN INTO OPERATIONAL STRATEGIES INCLUDING
E-COMMERCE
* STRATEGIC VULNERABILITY AUDITS.
ACUITY VALUE MANAGEMENT, HEADED UP BY MERVYN SEREBRO HELPS CLIENTS OUTPERFORM
THE COMPETITION.
* CUSTOMER BEHAVIOUR MANAGEMENT (CBM): WORKS MULTI-DISCIPLINARY ON THREE
INTERDEPENDENT OBJECTIVES - ATTRACTING NEW CUSTOMERS, SELLING MORE TO THE
EXISTING CUSTOMERS AND REDUCING/ RECOVERING LOST SALES. THE SKILL SETS IN CBM
INCLUDE:
- PLANNING AND METRICS;
- COMMUNICATIONS - MASS (E.G. ADVERTISING) AND ONE-TO-ONE (E.G. DATA
BASE-DRIVEN LOYALTY PROGRAMMES), EXTERNAL (E.G. TO CUSTOMERS) AND INTERNAL
(E.G. TO STAFF);
- CUSTOMER INTERFACE MANAGEMENT - CUSTOMER SERVICE STRATEGIES, TRAINING AND
FACILITATION; AND
- SYSTEMS AND DATA BASES - INCLUDING CRM SYSTEMS.
* EXPERIENTIAL MARKETING: INTERTWINES PROMOTIONAL MESSAGES WITH CONTENT THE
CONSUMER SELF-SELECTS FOR MAXIMUM COMMUNICATION EFFECTIVENESS;
- SNELCO - MARKET LEADERS IN INTEGRATING SPONSORED BROADCAST PROGRAMMING,
EVENTS CAUSE MARKETING PLATFORMS AND IN-STORE ACTIVITIES (MERCHANDISING,
PROMOTIONS, SAMPLING, ETC.);
- MASSIVE MANAGEMENT - MARKET LEADERS IN MUSIC AND MUSIC EVENT SPONSORSHIP; AND
- MEDIA AFRICA.COM - MARKET LEADERS IN SPONSORED INTERNET CONTENT STRATEGIES,
MANAGEMENT AND DEVELOPMENT.
* JAGLY INTERMEDIA: MARKET LEADERS IN INTERNET MEDIA STRATEGY, PLANNING AND
BUYING.
* ACUITY PUBLISHING: SURVEYS, SPECIAL REPORTS, ON-LINE MAGAZINES, ETC.
* A DESIGN, DTP AND WEB DESIGN STUDIO AND A PRODUCTION MANAGEMENT FACILITY
SUPPORT THE ACUITY VALUE MANAGEMENT DIVISION.
PROSPECTS
MANAGEMENT EXPECTS THE FULL EFFECTS OF THE RE-ORGANISATION TO START BEARING
FRUIT DURING THE NEXT 12 MONTHS. THIS WILL GIVE THE GROUP A VERY FAVOURABLE
OUTLOOK FOR THE FUTURE.
DIVIDEND
NO DIVIDEND HAS BEEN DECLARED AND NONE IS RECOMMENDED.
E R SCHWARTZ F P ROSSOUW
6 OCTOBER 2000
REGISTERED ADDRESS:
CEDARWOOD OFFICE PARK, MOUNT LEBANON ROAD, WOODMEAD, SANDTON, 2128.
TEL: (011) 804-5100
FAX: (011) 804-5023
TRANSFER SECRETARIES: MERCANTILE REGISTRARS LIMITED, 11 DIAGONAL STREET,
JOHANNESBURG, 2001
DIRECTORS:
N A BINEDELL*, J BOLT, R M R DE BASTOS2*,
E M MAFUNA*, F P ROSSOUW, H ROSTOWSKY*,
E R SCHWARTZ1, H M SEREBRO, J E H T VAN ZYL,
1AMERICAN, 2PORTUGUESE, *NON-EXECUTIVE DIRECTORS
SPECIFIC REPURCHASE OF SHARES
1.  INTRODUCTION
ABN AMRO SECURITIES (SOUTH AFRICA) (PTY) LTD. IS AUTHORISED TO ANNOUNCE THAT
THE DIRECTORS OF ACUITY HAVE RESOLVED TO REPURCHASE 1 400 000 ORDINARY SHARES
AND ITS SUBSIDIARIES HAVE RESOLVED TO REPURCHASE 11 425 000 ORDINARY SHARES
FROM THE FOLLOWING VENDORS WITH WHOM THEY HAVE CANCELLATION OR AMENDMENT
AGREEMENTS ("THE ACUITY SPECIFIC REPURCHASE"): FOCUSED APPROACH MANAGEMENT CC,
KNOWLEDGE MANAGEMENT CONSULTANTS (PTY) LTD., VUYO NONDWE SIYANDA KOYANA,
ANN-GLORIA SENKGANE MOLEKO, STRATEGIC EXPERT SYSTEMS PERSONNEL (PTY) LTD.,
STRATEGIC EXPERT SYSTEMS (PTY) LTD., RUDOLF KRUGER AND JAN HENDRIK OTTO
PRETORIUS.
2.  THE ACUITY SPECIFIC REPURCHASE
2.1  RATIONALE
FOLLOWING ACUITY'S LISTING ON 26 MAY 1999, A NUMBER OF DISPUTES AROSE BETWEEN
ACUITY'S MANAGEMENT AND VENDORS RELATING TO THE VALUE AND/OR PERFORMANCE OF
ASSETS SOLD TO THE GROUP BY SUCH VENDORS, RESULTING IN THE AMENDMENT OR
CANCELLATION OF THE ORIGINAL SALE AGREEMENTS WITH SUCH VENDORS. AS A
CONSEQUENCE OF SUCH AMENDMENTS OR CANCELLATIONS, 12 825 000 ACUITY SHARES WERE
SURRENDERED BY SUCH VENDORS AND ARE HELD IN ESCROW BY MERCVEST (PROPRIETARY)
LIMITED ON BEHALF OF ACUITY.
2.2  TERMS
2.2.1 DATE OF REPURCHASE
ACUITY INTENDS TO REPURCHASE AND CANCEL THE SPECIFIC SHARES FOLLOWING THE
PROPOSED GENERAL MEETING OF SHAREHOLDERS ON OR ABOUT 31 OCTOBER 2000. THE
SUBSIDIARIES OF ACUITY INTEND TO REPURCHASE THE SPECIFIC SHARES, BUT DO NOT
INTEND TO CANCEL SUCH SHARES, FOLLOWING THE PROPOSED GENERAL MEETING OF
SHAREHOLDERS ON OR ABOUT 31 OCTOBER 2000.
THE LISTING OF THE SPECIFIC SHARES ON THE JOHANNESBURG STOCK EXCHANGE ("THE
JSE") THAT ARE REPURCHASED BY ACUITY WILL CANCELLED WHILE THE SPECIFIC SHARES
THAT ARE REPURCHASED BY THE SUBSIDIARIES OF ACUITY WILL CONTINUED TO BE LISTED
ON THE JSE.
2.2.2  PRICE OF REPURCHASE
THE PRICE TO BE PAID FOR PER SPECIFIC SHARE AMOUNTS TO 1 CENT, REPRESENTING THE
PAR VALUE OF THE ORDINARY SHARES.
2.3  FINANCIAL EFFECTS
THE FINANCIAL EFFECTS OF THE REPURCHASE OF SHARES ASSUMING THAT THE PROPOSED
BUYBACK OF SHARES WAS EFFECTED ON 31 DECEMBER 1999 ARE AS FOLLOWS:
                                           BEFORE    AFTER    PERCENTAGE
                                           (CENTS)   (CENTS)  CHANGE
                                           (NOTE 1)
FULLY DILUTED HEADLINE EARNINGS PER SHARE  5,9       5,9      -
NET ASSET VALUE PER SHARE                  14,3      16,6     16,0
NET ASSET VALUE PER SHARE (FULLY DILUTED)  24,0      27,4     14,2
TANGIBLE NET ASSET VALUE PER SHARE         2,5       2,9      16,0
NOTE 1:  FINANCIAL INFORMATION DISCLOSED HEREIN IS FOR THE 15 MONTHS ENDED
31/12/1999.
3.  CONDITIONS PRECEDENT TO THE ACUITY SPECIFIC REPURCHASE
THE ACUITY SPECIFIC REPURCHASE IS SUBJECT TO, INTER ALIA, THE FOLLOWING
CONDITIONS PRECEDENT:
* THE PASSING OF THE SPECIAL RESOLUTIONS AT THE GENERAL MEETING OF SHAREHOLDERS
TO BE HELD ON OR ABOUT TUESDAY, 31 OCTOBER 2000 TO AMEND THE ARTICLES OF
ASSOCIATION OF ACUITY AND ITS SUBSIDIARIES AND TO RATIFY AND AUTHORISE THE
SPECIFIC BUYBACK OF SHARES;
* THE REGISTRATION OF THE SPECIAL RESOLUTIONS PASSED AT THE ABOVEMENTIONED
GENERAL MEETING, BY THE REGISTRAR OF COMPANIES; AND
* THE APPROVALS OF THE JSE INSOFAR AS SUCH APPROVALS ARE REQUIRED.
4.  DOCUMENTATION
A CIRCULAR, CONTAINING FULL DETAILS OF THE ACUITY SPECIFIC REPURCHASE AND
INCORPORATING A NOTICE OF A GENERAL MEETING TO BE HELD, IS TO BE POSTED TO
ACUITY SHAREHOLDERS ON OR ABOUT MONDAY, 9 OCTOBER 2000.
WWW.ACUITY.CO.ZA
PRODUCED BY: ANUSHA MOTHILALL 06-10-2000 06:59 SENS

PUBLISHER: JSE SENS Feed
Source: JSE Securities Exchange - SENS
 
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