Johannesburg - Visual International, the AltX-listed property development firm, has finally published its financial results for the year to February.
Trading in Visual International’s shares was suspended by the JSE in July because of the failure of the company to publish its provisional financial statements within the three-month period stipulated in the JSE’s listing requirement.
Trading in the company’s shares remains suspended.
Visual on Friday reported a widening in the company’s headline loss a share to 4.75c in the year to February from a loss of 3.92c in the previous year. Revenue rose marginally to R2.79 million from R2.77m, but the operating loss increased to R10.3m from R7.9m.
The loss from continuing operations increased to R11.8m from R7.7m.
Visual, which listed on the AltX in May 2014, said its results for this year and last year were negatively impacted by the delay in the commencement of the further development of Stellendale in Cape Town because of a number of constraints.
These included a delay in listing, less capital than desired being raised at listing and the banking sector contracting its lending to property developers and potential homeowners.
This had led to the company adopting a strategy to reduce gearing, sell non-core assets and develop strategic relationships to ensure the protection of Visual’s asset base and position the group for future growth, it said.
“Many of these objectives have been achieved subsequent to year end,” it said.
Commenting on its future prospects, Visual said it had eliminated the majority of its debt and creditors and had a positive net tangible asset value in excess of R60m.
It said the board would be considering the size and nature of properties held to start its key development initiatives and ensure it had sufficient cash and funding resources to grow the group.
The company’s financial results provided information about a reportable irregularity to the Independent Regulatory Board for Auditors (IRBA) issued by its auditors after its year end. This related to the auditor’s conclusion Visual had not complied with the Companies Act requirements related to financial distress and the late payment of PAYE tax.
Visual said these matters had either been resolved or would be resolved once the proceeds of the sale of the land known as Stellendale 3 had been received.
It said the conclusion of the agreement for the disposal of the Stellendale 3 land would ensure that Visual was mostly debt free, enable it to focus on its main business as a property developer and fast-track the achievement by the company of its strategic objective to develop the remainder of the Stellendale township.
An agreement was concluded after the reporting period for the sale of the Stellendale 3 land to Uvest Housing Portfolio 2 for R15m cash.
The proceeds will be used to repay the R4.5m bond, reduce the balance of most of the secured debt in the Visual group and the settlement of creditors and working capital.
A net loss before tax of R2m was realised on the disposal of the Stellendale 3 land.
Subsequent to its year end, Visual also concluded the sale of land known as Northbank 1 and Northbank 2 to Mergence Africa Property for R11m and the sale of 20 rental units for R10m and subsequently a further seven rental units for R4m.
Visual said the conclusion of the Northbank 1 and Northbank 2 land disposals would serve to fast-track the achievement by the company of its strategic objective to develop the Stellendale Lifestyle Estate and the first step in developing a long-term relationship with Mergence, part of the Dipula group.
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