Final Results

RNS Number:7233O
Genbel South Africa Ld
31 July 2000


GENBEL SOUTH AFRICA LIMITED
(Incorporated in the Republic of South Africa) 
(Registration number 1949/032379/06)

RESULTS FOR THE YEAR ended 30 June 2000

REVIEW
OVERVIEW OF PAST YEAR
For Genbel, the 1999/2000 financial year was characterised by volatility in
the market in general, and in the company's net asset value and its share
price. This made the financial year reviewed in this annual report one of the
most challenging on record.
Over the year the net asset value fluctuated between a low of 1 913 cents per
share and a high of 3 114 cents per share. The share price traded between 1
555 cents per share and 2 725 cents per share. The discount of the share price
to net asset value fluctuated between 5,5% and 25,5%.
There were essentially three phases to the markets during this financial year.
The performance of our benchmark, the JSE Financial and Industrial Index
(FINDI), best illustrates this. In the first part of the year, from July until
late September 1999, the FINDI declined by about 15,4%. During this period the
net asset value dropped by 21,7%. From September 1999 to late January 2000 the
FINDI improved substantially, rising by 50,7% and Genbel's net asset value
rose by 61,3% in that short bull market period. From late January until the
end of June 2000 the FINDI again declined sharply, by 17,6%, and the net asset
value fell even more, by 29,5%.
Both the Genbel share price and the net asset value performed worse than the
benchmark. The reasons for the poor performance were the lowering of the
valuation of some of the unlisted companies in the Gensec NSA private equity
fund, and the poor  performance of some investments. In addition, the use of
gearing proved to be inappropriate. In terms of the companies' philosophy,
financial gearing may be used up to a limit of 20% of the value of the
portfolio. However, based on the uncertain market outlook, the board has
decided that for the time being financial gearing may only be used on a
temporary basis subject to a limit of 10% of the value of the portfolio.

SHARE BUY-BACK
At the annual general meeting in 1999 shareholders gave their consent to
purchase up to 10% of the company's issued shares. During the year, Genbel
purchased just over 2,46 million shares in the market, equivalent to 5,1% of
the company's issued shares as at the date of granting of the general
authority. This was effected at prices between 1 639 cents per share and 2 335
cents per share for a total consideration of R50 million. The average discount
of the share price to the net asset value for the repurchase programme was
20,4%. Shareholders will again be requested to approve the buy-back of 10% of
the issued shares and Genbel will continue to repurchase its own shares at
appropriate discounts.

GENSEC NSA EQUITY FUND
During the 1999 financial year Genbel made a commitment to invest R150 million
in the Gensec NSA Equity Fund. At the end of that year, R75 million of this
amount had been invested in the fund. The year-end value of the related
investments was reduced to R71 million.
In the past financial year, an additional R17 million was invested , bringing
Genbel's total investment to date in the fund to R92 million . This leaves a
remaining commitment to the fund of R58 million over the next three years .
The fund invests in smaller unlisted companies and realises the value of its
investments over the medium-to-longer term by either listing or selling the
companies when appropriate. The major investments in the fund are holdings in
Co-ordinated Network Investments , Global Technology Investment Holdings,
Kredit Inform , Praxis Capital, Archway Venture Partners Trust and Ceres Food
Processors.
Due to the depressed ratings of small market capitalisation companies Genbel
has decided to accept the recommended conservative valuations of the fund's
investments by its managers, and has reduced the valuation of its investment
in the Gensec NSA Equity Fund by a further R33 million . This reduction
resulted in Genbel's current investment in the fund being valued at R54
million at year-end .

GENBEL SHAREPLAN
There are presently approximately 11 000 shareholders who have purchased their
shares through the Genbel Share Plan .This group of shareholders collectively
holds 10,3% of the company.
Although the number of shareholders in the SharePlan has remained fairly
constant, the number of shares held by these shareholders has grown
substantially in the past year from 4,1 million shares at 30 June 1999 to 5,0
million shares a year later. 
The Sanlam agent and broker sales force marketing of the SharePlan has been
successful, with the bulk of the new shareholders in the SharePlan being
introduced by Sanlam intermediaries. 

OUTLOOK
Following the severe market corrections of late 1998 the South African markets
have experienced considerable volatility in their prices . The underlying
investment climate, however, has been relatively benign, with reasonably
positive economic indicators and low interest rates. The volatility resulted
partly from an unfavourable regional political climate, which deterred many
foreign investors from investing in South Africa , and partly from the
corrections experienced in the markets of the United States of America . The
portfolio management team expects this volatility to continue in the
foreseeable future. However, it must be stressed that the valuations of the
companies held in the Genbel portfolio are at their lowest levels for many
years.
Hence, depending on the overall state of the markets, there are good prospects
that the Genbel shareholder will earn an attractive return over the next year
or so.
As the market provides good opportunities to enhance the growth in the net
asset value, the portfolio management team will continue to apply the
fundamentals driven stock selection philosophy.

Tom de Beer                                    Rob May
Chairman                                    Managing Director

CAPITALISATION AWARD
This year the company will again make a capitalisation award to the holders of
ordinary shares registered at the close of business on 25 August 2000.
Shareholders will automatically receive fully paid new ordinary shares in
Genbel in the ratio of 70 cents multiplied by 1,11 divided by the average
traded price of the company's ordinary shares on the JSE for the four trading
days ending 14 September 2000.
The above dates are subject to amendment and such amendments will be published
in the press. Shareholders who prefer to receive a cash dividend of 70 cents
should decline the capitalisation award in respect of all or part of their
shareholding.

Johannesburg                                                    31 July 2000

PORTFOLIO COMPOSITION
Top 10 investments as at 30 June 2000:
  
Company/Group             Sector               Market value     % of total 
                                                                 Investment

Dimension Data            Information technology    162              15,7
Johnnic Communications    Media                      88               8,5
Naspers                   Media                      68               6,6
Investec Group            Banks                      64               6,2
JD Group                  Retail                     61               5,9
Gensec NSA Equity Fund*   Private Equity             54               5,2
Nedcor                    Banks                      37               3,6
Pick 'n Pay Group         Retail                     34               3,3
Alexander Forbes          Financial Services         33               3,2
Gensec                    Financial Services         32               3,1
Other                                               396              38,7

Total Investments                                  1029             100,0

* Unlisted

PORTFOLIO WEIGHTINGS

Information Technology              22,8%
Financial Services                  20,0%
Retail                              15,8%
Media                               15,7%
Banks                               12,7%
Private Equity                       5,2%
Industrial Services                  3,9%
Industrial Other                     3,9%


INVESTMENT RETURNS TO 30 JUNE 2000

                           1 Year       3 year return         5 year return
                           return %     per annum %           per annum %

Genbel share price          (11,5)         (5,3)                   20,3
Including dividends

Genbel net asset value      (10,1)         (2,5)                   16,4

JSE Financial & Industrial    7,1           0,4                     9,0
Index (inc dividends)





GENBEL SOUTH AFRICA
Results for the 12 months ended 30 June:

Income statement          Rm       2000       1999              
Income                            
Dividend income                     18          16               
Realised net investment gains       38          37              
                                    56          53              
Expenses                            
Net financing costs                  8           6              
Administration fee                   3           3              
Performance fee                     --          --              
Other expenses                       6           6              
                                    17          15              
Net income before taxation          39          38              
Taxation                             1           1               
Attributable income                 38          37               

Weighted average number of shares
in issue (000)                  47 557      47 005           
Earnings and headline earnings
per share (cents)                   80          82              
Dividends per share                 70          70              


Balance sheet                Rm                            
Capital employed                            
Ordinary share capital             218         246             
Non-distributable reserve           22          30              
Retained earnings                  356         350              
Ordinary shareholders' interest    596         626             
Preference share capital            --         125              
                                   596         751              
Employment of capital                            
Investments                            
Book value                         614         705              
Valuation                        1 029       1 224             
Current assets                      49          80              
Total assets                       663         785              
Current liabilities                 67          34              
                                   596         751              

Net asset value (Rm)             1 011       1 145             
Net asset value per share (cents)2 197       2 443             
Share price (cents)              1 850       2 170             





FOR INFORMATION ABOUT GENBEL SOUTH AFRICA
OR THE SHAREPLAN PLEASE CONTACT:
Genbel SharePlan information line 0-800-004-935 


GENBEL SOUTH AFRICA LIMITED
3A Summit Road, Dunkeld West, Johannesburg 2196
PO Box 411420,Craighall 2024
Telephone:+27 (11) 778 6000. Facsimile:+27 (11) 778 6990
Internet address:www.genbel.com E-mail address:moreinfo@genbel.com

LONDON OFFICE
Project Consultants Limited
Walnut House, Walnut Gardens, Claydon, Banbury
Oxon OX17 1NA,United Kingdom
Telephone:(+44-1295) 690 180.Telefax: (+44-1295) 690 181
E-mail address: ckennedy@projectconsultants.co.uk

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Transfer Secretaries (Pty) Limited
Shop 11,Kaiserkrone Centre, Windhoek
PO Box 2401,Windhoek
Telephone:(+26-461) 22 7647.Telefax:(+26-461) 24 8531
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