| Thu 19 Apr 2007, 10:34 | | TLM - Telemasters - Interim Results For The Six Mo |
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TLM
TLM
TLM - Telemasters - Interim Results For The Six Month Period Ended 31 March 2007
TELEMASTERS HOLDINGS LIMITED
(Formely Sinvent Investments 96 (Pty) Ltd)
(Incorporated in the Republic of South Africa)
(Registration number 2006/015734/06)
Share code: TLM & ISIN Number: ZAE000093324
("Telemasters" or "the Company")
INTERIM RESULTS FOR THE SIX MONTH PERIOD ENDED 31 MARCH 2007
INCOME STATEMENT
Unaudited Profit
6 months forecast
ended pro-rated
31 March 6 months
2007
R R
Revenue 72,252,635 64,907,613
Cost of sales (59,968,886) (55,542,920)
Gross profit 12,283,749 9,364,694
Other income 2,500 5,000
Investment income 130,308 -
Gross income 12,416,557 9,369,694
Operating expenses (4,570,289) (3,818,463)
Profit before taxation 7,846,268 5,551,231
Taxation (2,275,418) (1,922,357)
Net profit for the period 5,570,850 3,628,874
Number of shares in issue (`000) 42,000,000 42,000,000
Headline earnings per share (cents) 13.26 8.64
Earnings per share (cents) 13.26 8.64
BALANCE SHEET
Unaudited at
31 March
2007
R
ASSETS
Non-current assets 7,148,909
Intangible assets 217,109
Property, plant and equipment 6,931,800
Current assets 21,912,365
Trade and other receivables 9,745,504
Cash and cash equivalents 12,166,861
Total assets 29,061,274
EQUITY AND LIABILITIES
Total equity 11,541,312
Share capital 4,200
Share premium 5,966,262
Retained earnings 5,570,850
Non-current liabilities
Instalment sale agreements 575,075
Current liabilities 16,944,887
Current portion of
long term liabilities 253,151
Current tax payable 2,275,418
Trade and other payables 14,416,318
Total equity and liabilities 29,061,274
Net asset value per share (cents) 27.48
Net tangible asset value
per share (cents) 26.96
CASH FLOW STATEMENT
Cash flows from operating activities
Cash generated from operations 13,570,202
Interest income 130,308
Net cash from operating activities 13,700,510
Cash flows from investing activities
Expenditure to expand operatring activities
Property, plant and equipment acquired (8,081,232)
Intangible assets acquired (251,105)
Net cash from investing activities (8,332,337)
Cash flows from financing activities
Proceeds on share issues 5,970,462
Instalment sale agreements 828,226
Net cash from financing activities 6,798,688
Total cash movement for the period 12,166,861
Cash at beginning of period -
Total cash at end of the period 12,166,861
STATEMENT OF CHANGES IN SHAREHOLDERS`EQUITY
Balance 23 May 2006 on incorporation -
Share capital and share premium issued 5,970,462
Net profit for the period 5,570,850
Balance at 31 March 2007 11,541,312
COMMENTARY
The directors present the unaudited results for the six month period ended 31
March 2007.
1. FINANCIAL RESULTS
1.1 Statement of compliance and basis of preparation
The consolidated interim financial statements for the half year ended 31
March 2007 have been prepared in accordance with International Financial
Reporting Standards and are in compliance with IAS 34, Interim Financial
Reporting . These results have not been reviewed or audited by the Company`s
auditors. The Forecast figures included in the Pre-listing statement dated 8
March 2007 have been pro-rata`d for a period of six months and used as the
comparative figures in the income statement. No comparative figures have been
provided for the balance or cash flow statement as this is the first reporting
period since the company`s incorporation on 23 May 2006. Trading commenced on 2
October 2006 with the purchase of the business and assets of Telemasters (Pty)
Ltd.
1.2 Commentary
The interim results for the period are better than forecast due to better
than expected trading conditions resulting from a conservative approach taken at
the time of preparing the forecast. Included in the results is an amount of R1,5
million incentive obtained from a supplier which may not be repeated in the next
six month period. The results reflect net profits after tax of 53,5% above the
forecast figures for the period. The Revenue for the period being 11% up due to
better than anticipated trading environment. The increase in the Gross Profit
percentage by 2% is a result of the additional R1,5 million non recurring
incentives received with no corresponding Cost of Sales.
1.3 Dividends
No dividends have been declared or paid during the period ended 31 March
2007. The board has not yet recommended that an interim dividend be paid and the
matter has been carried over to the next directors` board meeting for further
consideration.
2. LITIGATION
There are currently no legal or arbitration proceedings against the Company or
its subsidiaries (including any proceedings which are pending or threatened) of
which the Company is aware which may have, or have had in the 12 months
preceding the date of this report, a material effect on the consolidated
position of the Company.
3. SUBSEQUENT EVENTS
There have been no significant events after the period end.
4. SHARE CAPITAL
No changes to Share Capital occurred during the period other than set out in the
Pre-Listing statement. The share issues were as follows:
- 1 000 000 Initial shares issued on incorporation with a par value of R100
- 3 620 000 shares issued to initial shareholders during restructuring of
company on 7 July 2006 with a par value of R362
- 34 440 000 shares issued to Telemasters (Pty) Ltd on acquisition of the
business and assets on 2 October 2006 with a par value of R3 444 and a
share premium of R4 496 556
- 2 940 000 shares issued by way of private placement on 20 February 2007
with a par value of R294 and a share premium of R1 469 706.
5. OPERATIONAL REVIEW AND OUTLOOK
Trading conditions are good and the focus and diligence of staff is reflected in
the figures. A number of large tenders await resolution but the forecast do not
include the possibility of success. Focus on cost containment and enhancing
revenue from existing clients should filter through to the bottom line in the
next trading period. TeleMasters is entering a new period in its strategy by
consolidating its offering to clients with a number of existing in-house
products and will be able to offer a tele-management service that is both
unique, revenue enhancing as well as offering substantial tangible benefits to
clients. It will not alter its commitment to providing sustainable and
substantial savings in the filed of telecommunications to its clients. The
Company is set for continued organic growth whilst being on the look out for
acquisition opportunities which will diversify the client base of TeleMasters
and provide opportunities for broadening the telephony related product base to
add further value to existing and new clients.
For and on behalf of the Board
ME Moji MB Pretorius
Non-executive Chairman Chief Executive Officer
19 April 2007
Directors: ME Moji*, MB Pretorius, BR Topham, IG Bekker (* non-executive)
Company secretary: River Group
Registered address: Equity Estate Building 2, Masters House, Charles de Gaulle
Crescent, Highveld Park Ext 9, Centurion, (P.O Box 2887, Montana Park, 0159)
Transfer secretaries: Computershare Investor Services 2004 Limited,
70 Marshall Street, Johannesburg, 2001 (PO Box 61051, Marshalltown,2107)
Designated Advisor: River Group
Website: www.telemasters.co.za
Date: 19/04/2007 10:34:45 Produced by the JSE SENS Department.
