CET 'settles down` after tough year

By Iain Scott, ITWeb group consulting editor

Johannesburg, 29 Nov 2001

Cape Empowerment Trust (CET) says its subsidiaries and associated companies are trading profitably after the troubles the group experienced last year.

<B>Figures at a glance</B>

Cape Empowerment Trust results for the six months to 31 August 2001
Figures for the same period last year in parentheses:

Gross revenue: -- (R37.04m)
Operating income: -R297 000 (R2.93m)
After-tax income: -R286 000 (R2.58m)
Share of associated companies` income: R3.38m (--)
Net attributable income: R3.1m (3.83m)
HEPS: 2.7c (1.6c)
Cash generated by operations: R7.78m (R8.39m)
Cash and equivalents: -R4.4m (-R4.03m)
Current assets: R515 000 (R24.43m)
Current liabilities: R5.55m (R24.99m)
NAV per share: 41c (7.8c)

CET received a string of blows in the last financial year, including disputes at Conlog, the writing-off of the Creative Response Group and the abortion of the Intella acquisition.

However, CEO Shaun Rai says the company has "finally settled down".

Rai says the results for the six months to 31 August 2001 must be viewed against the backdrop of the sale of Dynamic Cables SA to Conlog, which saw CET`s effective interest reduced significantly.

"However, it is anticipated that after the earn-out is completed the amounts attributable to Cape Empowerment Trust will be increased to approximately 85%," he adds.

Dynamic Cables and CET announced recently that they had agreed to fix the purchase price of Dynamic at R54 million.

In terms of the previous agreement, the purchase price was based on a formula, subject to a minimum purchase price of R16 million, to be calculated once Dynamic Cables` profit for 1 January 2001 to 31 December 2002 had been determined.

In light of the current performance, Rai says, he expects the group to grow full-year headline earnings from last year`s figures.

The CET share price was unchanged at 33c on the JSE this morning.