| Thu 26 Jul 2007, 8:37 | | TLM-Telemasters - Quarterly Results For The Nine-M |
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TLM
TLM
TLM-Telemasters - Quarterly Results For The Nine-Month Period Ended 30 June 2007
TeleMasters Holdings Limited
(Formerly 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")
Quarterly results for the nine-month period ended 30 June 2007
FINANCIAL RESULTS
INCOME STATEMENT
Unaudited Profit
9 months forecast
ended Pro rated
30 June 2007 9 months
R R
Revenue 108,275,119 97,361,419
Cost of sales (90,797,092) (83,314,380)
Gross profit 17,478,027 14,047,039
Other income - 7,500
Investment income 217,707 -
Gross income 17,695,734 14,054,539
Operating expenses (7,053,297) (5,727,694)
Profit before taxation 10,642,437 8,326,845
Taxation (3,078,860) (2,883,535)
Net profit for the period 7,563,577 5,443,310
Number of shares in issue (`000) 42,000,000 42,000,000
Headline earnings per share (cents) 18.12 12.96
Earnings per share (cents) 18.01 12.96
BALANCE SHEET
Unaudited at
30 June
2007
R
ASSETS
Non-current assets 7,156,177
Intangible assets 207,875
Property, plant and equipment 6,948,302
Current assets 23,992,307
Trade and other receivables 12,695,809
Cash and cash equivalents 11,296,498
Total assets 31,148,484
EQUITY AND LIABILITIES
Total equity 13,534,039
Share capital 4,200
Share premium 5,966,262
Retained earnings 7,563,577
Non-current liabilities
625,830
Instalment sale agreements
Current liabilities 16,988,615
Current portion of long term liabilities 242,008
Current tax payable 3,078,860
Trade and other payables 13,667,747
Total equity and liabilities 31,148,484
Net asset value per share (cents) 32.22
Net tangible asset value per share (cents) 31.73
CASH FLOW STATEMENT
Unaudited at
30 June 2007
R
Cash flows from operating activities
Cash generated from operations 13,248,123
Investment income 217,707
Net cash from operating activities 13,465,830
Cash flows from investing activities
Expenditure to expand operating activities
Property, plant and equipment acquired (8,751,064)
Intangible assets acquired (256,568)
Net cash from investing activities (9,007,632)
Cash flows from financing activities
Proceeds on share issues 5,970,462
Installment sale agreements 867,838
Net cash from financing activities 6,838,300
Total cash movement for the period 11,296,498
Cash at beginning of period -
Total cash at end of the period 11,296,498
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 7,563,577
Balance at 30 June 2007 13,534,039
COMMENTARY
The directors present the unaudited results for the nine month period ended 30
June 2007.
1. FINANCIAL RESULTS
1.1 Statement of compliance and basis of preparation
The consolidated quarterly financial statements for the third quarter ended 30
June 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 nine 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 companies 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 quarterly 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 will not be repeated in
the next three month period. The results reflect net profits after tax of
38,95% above the forecast figures for the period. The Revenue for the period
being 11% up due to the better than anticipated trading environment. The
increase in the Gross Profit percentage by 1,7% is a result of the additional
R1,5 million non recurring incentives received with no corresponding Cost of
Sales and improved efficiencies with cost management which has compensated for
the additional operating expenses. The increased operating expenses arose due
to additional administration and support structures put in place to better
administer and monitor the growing business.
1.2.1 Headline Earnings Per Share Reconciliation
The difference in headline earnings per share and earnings per share is a result
of Computer Software being classified in terms of International Financial
Reporting Standards as an intangible asset.
Earnings per share (cents) 18.01
Amortisation of computer software .11
Headline Earnings per share 18.12
1.3. Dividends
No dividends have been declared or paid during the period ended 30 June 2007.
The board has not recommended that an interim dividend be paid as the cash
balance may be needed in order to assist with future short term acquisition
strategies.
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 focus on cost containment and enhancing revenue from existing
clients has filtered through to the bottom line. TeleMasters is continuing with
its strategy of 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 field of telecommunications to its clients. The
Company is set to continue with its existing organic growth. Whilst acquisition
opportunities have come to the fore these have not yet been explored. The board
will in the next quarter direct certain resources at exploring possibilities
which may diversify and provide opportunities and add further value to clients
and shareholders.
For and on behalf of the Board:
ME Moji MB Pretorius
Non-executive Chairman Chief Executive Officer
Designated Advisor:
RIVER GROUP
Directors: ME Moji*, MB Pretorius, BR Topham, IG Bekker (* non-executive)
Company secretary: BR Topham
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)
Website: www.telemasters.co.za
Date: 26/07/2007 08:37:01 Produced by the JSE SENS Department.
