HERMANUSDOORNS SHAREBLOCK LIMITED AGM July 2008 AGM 2008 1 PDF - - PowerPoint PPT Presentation

AGM 2008 1

HERMANUSDOORNS SHAREBLOCK LIMITED

AGM July 2008

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AGM 2008 2

AGENDA

l Welcome

l Special welcome to all new shareholders

l Attendance Register l Notice Convening the Meeting and Quorum

l Appointment of Referee and assistant to administer and count votes

l Apologies and Proxies l MD’s Report

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AGM 2008 3

AGENDA … cont

l Presentation of Financial Statements l Ordinary Business

l Resolutions 1,2, and 3

l Capital Fund Utilisation l Re-election of Directors l Update on Business Plan l General l Closure l Lunch – directly after the meeting

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AGM 2008 4

MD’s Report

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AGM 2008 5

MD’s Report

l A key focus of our medium term strategy is

• n Fauna and Flora

l Bush clearing underway l Will continue and is funded by revenue from game capture l Modification of many roads to prevent storm damage l Game number control through capture and NOT hunting

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AGM 2008 6

MD’s Report

l Infrastructure improvement

l Modification of Entrance signage and removal

• f alien plants

l Upgrading of entrance l New transformer on East Section l Electrification of Mountain Sites

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AGM 2008 7

MD’s Report

l Year Ended Feb 2008

l All in all a pretty good year l Stability of shareholding l Continuous improvement of the Balance Sheet l Focus on cost containment as we head to high inflation times

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AGM 2008 8

Game Capture – March 08

l Game Capture the preferred method of game control l Culling no longer taking place l Revenue to be ploughed back into Fauna and Flaura – mainly into bush clearing

35 12 9 37 135 May 08 Mount Reedbuck Rooihartebees Steenbok Bosbok Giraffe Klipspringer Gemsbok Zebra Blouwildebees Warthog Kudu Water Buck Blesbok Impala Description

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AGM 2008 9

Game Count

10 20 28 16 5 13 30 40 40 12 100 25 9 80 May 08 10 20 21 16 6 9 40 40 40 6 90 21 25 110 Jun 06 10 20 24 16 6 10 45 42 39 8 101 30 22 129 Jun 07 10 Mount Reedbuck 20 21 16 6 10 60 40 40 6 110 24 40 220 Feb 06 15 23 15 7 10 38 40 45 5 100 20 35 190 Feb 05 19 19 Rooihartebees 12 11 Steenbok 40 20 Bosbok 2 2 Giraffe 14 14 Klipspringer 7 9 Gemsbok 9 9 Zebra 33 24 Blouwildebees 25 25 Warthog 80 65 Kudu 16 13 Water Buck 50 30 Blesbok 160 125 Impala Feb 04 Aug 03 Description

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AGM 2008 10

Rainfall History

HERMANUSDOORNS _ RAINFALL

200 400 600 800 1000 1200 C ummulative R ainfall mm 50 100 150 200 250 300 M

• nthly R

ainfal mm

Cummulative Monthly

531 1030 338 341 348 572 382 642 98/99 99/00 00/01 01/02 05/06 02/03 03/04 04/05 06/07 365 07/08 777

10 Year Annual Average = 534mm 7 year Annual Average = 492mm 5 Year Annual Average = 452mm 3 Year Annual Average = 598mm

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AGM 2008 11

Rainfall History

Annual Rainfall

200 400 600 800 1000 1200

1998/9 1999/0 2000/1 2001/2 2002/3 2003/4 2004/5 2005/6 2006/7 2007/8

Year mm

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AGM 2008 12

Rainfall History

RAINFALL HISTORY 10, 7, 5, 3 Year Trend Lines

400 450 500 550 600 650 98/9-07/8 01/2-07/8 03/4-/07/8 05/6-07/8 10 7 5 3

Year mm

10 Year Annual Average = 534mm 7 year Annual Average = 492mm 5 Year Annual Average = 452mm 3 Year Annual Average = 598mm

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AGM 2008 13

The Key Trend Lines

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AGM 2008 14

Levy Income

1 0 0 2 0 0 3 0 0 4 0 0 5 0 0 6 0 0 7 0 0 8 0 0 9 0 0

Ra nd s (R'0 0 0 )

1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8

Le vy I nc om e

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AGM 2008 15

Levy Structure

2 ,0 0 0 4 ,0 0 0 6 ,0 0 0 8 ,0 0 0 1 0 ,0 0 0 1 2 ,0 0 0

Ra n ds pe r Ann um

1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8

Le vy Struc ture

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AGM 2008 16

Levy Income - Budgeted

1 0 0 2 0 0 3 0 0 4 0 0 5 0 0 6 0 0 7 0 0 8 0 0 9 0 0 1 0 0 0

Ra nd s (R'0 0 0 )

1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9

Le vy I nc om e

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AGM 2008 17

Investment Income - Budgeted

5 1 0 1 5 2 0 2 5 3 0 3 5 4 0 4 5

Ra nd s (R'0 0 0 )

2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9

I nve stm e nt I nc om e

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AGM 2008 18

Growth in Equity

0 .0 1 .0 2 .0 3 .0 4 .0 5 .0 6 .0 7 .0 8 .0

Ra nds (M illions)

1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8

Ca pit a l a nd Re se rve s

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AGM 2008 19

Total Debt

2 0 0 4 0 0 6 0 0 8 0 0 1 ,0 0 0 1 ,2 0 0 1 ,4 0 0 1 ,6 0 0 1 ,8 0 0 2 ,0 0 0

Ra nd s (R'0 0 0 )

1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8

T ota l De bt

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AGM 2008 20

Share Price

5 0 ,0 0 0 1 0 0 ,0 0 0 1 5 0 ,0 0 0 2 0 0 ,0 0 0 2 5 0 ,0 0 0 3 0 0 ,0 0 0 3 5 0 ,0 0 0 4 0 0 ,0 0 0 4 5 0 ,0 0 0

Ra nd s (R'0 0 0 )

1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 7 2 0 0 8

Sha re Pric e

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AGM 2008 21

MD’s Report … Conclusion

l Thank you to

l The shareholders l The auditors l The Non Execs l My fellow directors

l And I look forward to another great year

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AGM 2008 22

Ordinary Business

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AGM 2008 23

Voting Procedure

l All done by Poll l One share – one vote l Counting independently done

l 2 volunteers l Board l Corresponding totals accepted

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AGM 2008 24

Ordinary Business

l Ordinary Resolution 1

l Resolved as ordinary resolution #1 to approve the minutes of the Annual General Meeting Held on 11th August 2007

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AGM 2008 25

Annual Financial Statements

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AGM 2008 26

Assets

FLAT Up 13%

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AGM 2008 27

Equity and Liabilities

FLAT

Up by 80% - Eskom Deposit No support for 5 Year Levy

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AGM 2008 28

Levies Received in Advance

• 1 March 2008 to 28 Feb 2013

35,701 1 March 2007 to 29 Feb 2012 46,842 1 March 2006 to 28 Feb 2011 932,731 TOTAL 28,421 1 March 2005 to 28 Feb 2010

• 1 March 2004 to 28 Feb 2009

821,767 1 March 2008 to 28 Feb 2009

2008 Rands Period

First 5 Year Levy Complete No Support for 5 Year Levy

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AGM 2008 29

Revenue

+11% +100% +229%

• 42%
• 26%

+11% +11% 983,887 1,092,410 TOTAL 1,996 3,995 Shop 44,114 66,691 Municipal 12,106 61,404 General 117,494 67,588 Game 41,549 30,688 Investment Income 217,259 241,885 Other Income 766,628 850,525 Levies 2007 2008

Limited Fees in Advance from Long Term Levies Limited Game Capture More Use of Services and Utilities Increased focus on Shop

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AGM 2008 30

Expenses

36,250 42,000 +17% Admin Fees 144,113 96,923

• 33%

Repairs and Maintenance 26,200 27,925 +8% Auditors +12% +41%

• 31%

+70% +3% +47% +21% +9% Trend 118,669 82,676 Electricity and Water Total Detail 938,501 1,050,881 53,784 75,580 Other 70,620 119,736 Depreciation 34,280 35,494 Insurance 140,954 206,000 Vehicle Expenses 197,563 238,120 Salaries and Wages 116,068 126,427 Directors Salary 2007 2008

R60k Could have been capitalised Better Recoveries R42k Could have been capitalised New Tata truck Increased costs of Compliance More Labour

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AGM 2008 31

Expenses – Anticipated 2009/10

Detail 2009 2008 2007

Directors Salary 145,391 126,427 116,068 Admin Fees 47,040 42,000 36,250 Auditors 31,276 27,925 26,200 Salaries and Wages 273,838 238,120 197,563 Maintenance 106,615 96,923 144,113 Vehicle Expenses 182,500 146,000 140,954 Insurance 42,593 35,494 34,280 Depreciation 149,670 119,736 70,620 Electricity and Water 101,691 82,676 118,669 Other 86,917 75,580 53,784 Total 1,167,532 1,050,881 938,501

12% Increase – But includes some Capex Anticipated 11% Increase – but with no capital expense

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AGM 2008 32

Anticipated Levy – 2009/2010

l Anticipated Expense 2009/10 is:

l R 1.17 million

l Excluding any capital expenditure

l Capex Reserve of R1,500 per annum

Summary Excl VAT Incl VAT Increase in Expenditure over 2007/08 11.1% Operational Levy - fully recovered - 08/09 11,560 13,178 Levy Increase 24.3% Capital Levy per annum 1,500 1,710 Total Levy 13,060 15,127

Please note

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AGM 2008 33

Other issues

l Building Revenue

l Now minimal l Full levy recoveries are now essential

l Late levies

l At 31 March Debtors were R 276k

l last year they were R 257k

l As at 31 May they were still R 61k

l Last year they were R56k

l Still UNACCEPTABLE l Sadly – Its always the same people

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AGM 2008 34

Ordinary Business

l Ordinary Resolution 2

l Resolved as ordinary resolution #2 to receive and adopt the Company’s annual financial statements for the year ended 28th February 2008, together with the reports of the directors and auditors.

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AGM 2008 35

Ordinary Business

l Ordinary Resolution 3

l Resolved as ordinary resolution #3 to re-appoint Russell James and Company (Previously Core Chartered Accountants (SA)) as the auditors until the conclusion of the next Annual General Meeting.

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AGM 2008 36

Use of Capital Fund

l The Board recommends that we purchase the following equipment

l Replacement Backactor l Replacement Bakkie l Combined Capex = R 500k

l Require to increase the Capital Fund and get permission from shareholders

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AGM 2008 37

Use of Capital Fund

l Proposal 1

l Call a Special General Meeting and table the proposal

l Raise an additional Capital Levy of R 1500 per annum l Authorise the Board to purchase both the Backactor and Bakkie with a limit of R 500k at this Special General Meeting

l Proposal 2

l Board will raise another special levy of R1500 incl VAT in future l Approve the expenditure at this AGM l Purchase a new Backactor now and the bakkie

• nce the additional funds have been collected

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AGM 2008 38

Retirement and Re-election

l Two Directors retire and submit themselves for re-election

l Andre Cochrane l Hannes (JL) Venter

l Done by secret ballot

l Voting forms were distributed at registration l Independent panel to collect ballot papers and count votes l Votes FOR = person stays on the Board l Votes Against = person removed from the Board

l Meeting to continue

l Results to be announced prior to conclusion of the meeting

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AGM 2008 39

Long Term Plans

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AGM 2008 40

Long Term Plans

l Financial stability of the Company remains a core objective

l Levy structure now more in line with budgeted expenses but covers only

• perational expenses

l Capital levy to be raised from time to time l Other mechanisms will be considered if and when further land acquisition is agreed to

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AGM 2008 41

Medium to Long Term Plans

l Further Development of Mountain

l Improved Road infrastructure

l Eastern mountain now accessible l All roads

l Provide better access to the river l As and when funds permit – self funding

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AGM 2008 42

Long Term Plans

l Fauna and Flora Issues

l A key focus of the Board over the coming years l Continued veld management l Soil erosion minimalisation

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AGM 2008 43

Long Term Plans

l Continual upgrading of Farm Assets

l Entrance

• Delayed

l To be moved closer to the road l Enhanced to improve access control l Fencing – continuous upgrading and ultimate electrification

• Continuous

l Upgrading of roads to improve drainage and reduce water damage

• Continuous

l Replacement of Bakkie and purchase of Backactor

l Note: all of the above are Capital dependent

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AGM 2008 44

Long Term Plans

l Land Expansion

l Still a desire for the Board l Require critical mass for herd development l Could provide better utilization of current mountain area l Must be accompanied by “self funding” financial plan l Available options

l Westerly direction

l Section D – to reach the river l Section E – to incorporate the river

l Easterly direction

l Section E l Section H

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AGM 2008 45

A1 B1 A2 C D E1 E2

750Ha 750 Ha 200 Ha 356 Ha 250 Ha 1250 Ha 159 Ha

G

300 Ha

H I J

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AGM 2008 46

General

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AGM 2008 47

General Issues

l Speeding l Cleaning Services l Security l Procedures for Selling Shares l Communications l Shareholder responsibilities l Legal issues

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AGM 2008 48

Speeding

l There is a Speed limit on the Farm

l Speed is 25 Km/h l Please observe this l Dangerous to both Humans and Animals

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AGM 2008 49

Cleaning Services

l Cleaning

l Currently done by Farm Manager in personal capacity

l Deposit of R 500 to be paid to initiate service l Accounts payable on presentation of an account in cash l Service terminated if outstanding account equals the Deposit

l Note: No cleaning will be provided on the weekends

l Require proposals for outsourcing this function

l Table in writing to the board

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AGM 2008 50

Security

l Security

l An alarm system is available l Request to install radios

l Fire Assist l Intruder alert

l Currently response done by Farm Manager in personal capacity

l Require proposals as to how best to provide a response – Requested last year l Submit in writing to the Board – non yet received

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AGM 2008 51

Selling of Shares

l 3 parties involved

1. Seller 2. Purchaser 3. Hermanusdoorns

1. Enter in a sale agreement with the purchaser 2. Notify the office of this with any conditions that may apply and which party will pay the costs of transfer (R1200) 3. Purchaser must enter into agreement with Hermanusdoorns

l Main Agreement l Use agreement l Articles and Memo of Association

4. Electricity Certificate of compliance must be submitted if a dwelling exists 5. Notify office when transfer can take effect

l All transfers administered by Hermanusdoorns Limited

6. Copies of Share certificate will be sent to new owner when registered

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AGM 2008 52

Shareholder Responsibilities

l Everything on your site is your own responsibility

l Building material l Contractors l Repairs and maintenance

l Not an obligation of the Farm Manager

l But will help wherever possible and practical and time permitting

l Levies do NOT cover services offered as assistance to shareholders

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AGM 2008 53

Communication Issues

l Continuous update of our website

l Vote of thanks to John and Lorna Hill l Updated regularly

l Notification of meetings will be posted on the web site and correspondence will be done by email

l Do away with registered and standard post wherever possible l All Correspondence by email – please keep us informed of email address changes l Email addresses will not be distributed by the office but you may post your mail address on the website if you so wish

l All statutory info is available on the web site

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AGM 2008 54

Important Legal Issues

l Members shall at all times be required to use their firearms as provided for by the relevant legislation from time to time and shall not contravene any laws in so using their firearms l Members shall not allow unlicensed persons to drive a vehicle on the property l No un-roadworthy vehicles may be driven by anyone whatsoever on the property l Neither the Company, nor its directors shall be liable for conduct on the part of members or their families or invitees which contravenes these rules and/or the law THIS STATEMENT IS CLEARLY DISPLAYED AT THE MAIN ENTRANCE AND AT THE SWIMMING POOL AREA l It must be noted that anybody who commits a delict in his or her personal capacity is personably liable in respect of such delict and that the Company would in any event not be liable in such instance

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AGM 2008 55

Administrative Issues

l Electricity

l Must be paid to Farm manager l Cheques payable to Hermanusdoorns l Electronic deposits to Hermanusdoorns, Confirmation to farm manager

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AGM 2008 56

Administrative Issues

l Telephone

l Common courtesy to be given to Farm Manager l Only flag “Urgent” if it really IS urgent l Please try use email wherever possible l Andre’s email is a.cochrane@mweb.co.za

l Don’t send pictures

l Farm Manager weekend

l Norm is week day weekends

l Use of private generators is NOT permitted

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AGM 2008 57

Administrative Issues

l More than one dwelling is not permitted on

• ne site.

l No one may run a business from the farm that interferes with the with the privacy of shareholders or the operation of the farm and without board consent. l Site responsibility – cleanliness – is the SHAREHOLDER’s responsibility

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AGM 2008 58

Other General

l Dam near the hide

l Swimming Forbidden l Playing is forbidden

l Collection of Wood

l Do Not remove wood from the farm l Buy it from the shop

l Littering

l Please stop l Please stop and pick up litter

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AGM 2008 59

Other General

l Entertainment Area and Pub

l Only open on special occasions

l Caravans

l Caravans parked on the property must be in an enclosed garage and may not be used to house persons on the farm.

l Matters to be brought to Board directly and not through the AGM

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AGM 2008 60

Closure

l Thank you for your attendance and input l Please join us for a light meal directly after the meeting l THANK YOU ONCE AGAIN

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