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Johannesburg - Diversified broad-based, black-controlled Mvelaphanda Group [JSE:MVG] on Thursday reported a headline loss per share of 0.7 cents for the six months ended December 2010 compared with a headline profit of 124.9 cents for the previous comparable half-year.
The basic loss per share was 53.6 cents versus earnings per share of 117.3 cents previously.
"Mvela Group made significant progress on its value unlocking strategy during the period under review with the unbundling of its investment in Life Healthcare Limited (Life Healthcare) to shareholders as well as the separate listing of its operating company, Mvelaserve Limited (Mvelaserve) on the JSE Limited (JSE) and the subsequent unbundling thereof to shareholders," the group said.
It added: "Mvela Group's results for the period under review only include operating results of Mvelaserve for the five months preceding the unbundling of Mvelaserve on December 6 2010. Mvela Group continues to generate income from investments, which will in future be the only source of income. Consequently, Mvela Group's sector listing on the JSE was moved from the Business Support Services Sector to the Investment Instruments Sector."
Revenue for the six-month period, which incorporates the trading results of Mvelaserve for the five months prior to the unbundling, amounted to R1.886bn compared to R1.908bn for the full six months of the previous year. Operating profit for the period under review amounted to R116m which excludes R79m of exceptional expenses incurred by Mvelaserve before the unbundling transaction.
Net interest paid for the period under review was lower at R36m compared to R52m for the previous year comparable period mainly as a result of a reduction of debt during the period under review.
The loss from investments for the six months to December 31 2010 of R151m (December 31 2009: R544m) includes a net R130m gain from fair value adjustments of investments, dividends received of R54m and an unbundling fair value adjustment loss of R284m.
Mvela's cash position decreased to R252m at December 31 2010 from R526m at June 30 2010 mainly as a result of the Mvelaserve unbundling. Total interest-bearing liabilities at 31 December 2010 decreased to R695m from R1.358bn at June 30 2010. The group's debt to equity ratio decreased to 44% (June 30 2010: 50%).
Looking ahead, Mvela said it would continue with its unbundling strategy with a key focus on unlocking value for shareholders and generating a satisfactory return on capital for shareholders over time.
The basic loss per share was 53.6 cents versus earnings per share of 117.3 cents previously.
"Mvela Group made significant progress on its value unlocking strategy during the period under review with the unbundling of its investment in Life Healthcare Limited (Life Healthcare) to shareholders as well as the separate listing of its operating company, Mvelaserve Limited (Mvelaserve) on the JSE Limited (JSE) and the subsequent unbundling thereof to shareholders," the group said.
It added: "Mvela Group's results for the period under review only include operating results of Mvelaserve for the five months preceding the unbundling of Mvelaserve on December 6 2010. Mvela Group continues to generate income from investments, which will in future be the only source of income. Consequently, Mvela Group's sector listing on the JSE was moved from the Business Support Services Sector to the Investment Instruments Sector."
Revenue for the six-month period, which incorporates the trading results of Mvelaserve for the five months prior to the unbundling, amounted to R1.886bn compared to R1.908bn for the full six months of the previous year. Operating profit for the period under review amounted to R116m which excludes R79m of exceptional expenses incurred by Mvelaserve before the unbundling transaction.
Net interest paid for the period under review was lower at R36m compared to R52m for the previous year comparable period mainly as a result of a reduction of debt during the period under review.
The loss from investments for the six months to December 31 2010 of R151m (December 31 2009: R544m) includes a net R130m gain from fair value adjustments of investments, dividends received of R54m and an unbundling fair value adjustment loss of R284m.
Mvela's cash position decreased to R252m at December 31 2010 from R526m at June 30 2010 mainly as a result of the Mvelaserve unbundling. Total interest-bearing liabilities at 31 December 2010 decreased to R695m from R1.358bn at June 30 2010. The group's debt to equity ratio decreased to 44% (June 30 2010: 50%).
Looking ahead, Mvela said it would continue with its unbundling strategy with a key focus on unlocking value for shareholders and generating a satisfactory return on capital for shareholders over time.
