| Mon 6 Aug 2007, 9:23 | | MYD - Myriad - Audited abridged annual financial s |
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MYD
MYD
MYD - Myriad - Audited abridged annual financial statements for the year ended
31 May 2007
MYRIAD MEDICAL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2006/006371/06)
Share code: MYD ISIN: ZAE000085825
("Myriad" or "the company")
AUDITED ABRIDGED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2007
* Earnings and headline earnings of 9.3 cents per share
* Performance in line with forecasts
* Delivery of growth strategy
* Acquisition of Earth Medical and Filterworks
* Three new agencies acquired
SUMMARISED GROUP BALANCE SHEET
(R`000)
ASSETS
Non-current assets 73,470
Property, plant and equipment 3,437
Intangibles 70,033
Current assets 68,901
Accounts receivable and inventory 59,468
Cash and cash equivalents 9,433
Total assets 142,371
EQUITY AND LIABILITIES
Capital and reserves 109,673
Share capital and premium 93,388
Accumulated profits 16,285
Non current liabilities 1,109
Long term liabilities 865
Deferred tax 244
Current liabilities 31,589
Accounts payable and provisions 24,681
Taxation 6,415
Current portion of long term liabilities 493
Total equity and liabilities 142,371
Net asset value per share (cents) 58.2
Net tangible asset value per share (cents) 21.0
Closing number of shares 188,356,543
SUMMARISED GROUP INCOME STATEMENT
(R`000)
Turnover 130,687
Earnings before interest and depreciation 22,464
Depreciation (349)
Net interest received 830
Net profit before taxation 22,945
Taxation 6,660
Attributable earnings 16,285
Earnings per share (cents) 9.3
Headline earnings per share (cents) 9.3
Fully diluted earnings per share (cents) 9.2
Fully diluted headline earnings per share (cents) 9.2
Weighted average number of shares 175,237,112
Fully diluted weighted average number of shares 177,912,737
SUMMARISED GROUP STATEMENT OF CHANGES IN EQUITY
(R`000) Share Accumulated Total
capital/premium profits
Balance at the beginning of the - - -
period
Issue of shares (after expenses) 93,388 93,388
Net profit for the period - 16,285 16,285
Balance at the end of the period 93,388 16,285 109,673
SUMMARISED GROUP CASH FLOW STATEMENT
(R`000)
Cash flows from operating activities 10,476
Cash generated/(utilised) by operating activities
Decrease/(Increase) in working capital
Change in investment in associate
Negative goodwill
Cash from operations 22,336
Movement in debtors, creditors and inventories (12,691)
Net interest received 831
Cash flows from investing activities (95,788)
Purchase of property, plant and equipment (1,833)
Purchase of businesses (94,096)
Proceeds on disposal of property, plant and equipment 141
Cash flows from financing activities 94,745
Capital raised 93,388
Loans raised 1,357
Increase in cash and cash equivalents 9,433
Cash and cash equivalents at beginning of period -
Cash and cash equivalents at end of period 9,433
NATURE OF BUSINESS
The Myriad group is South Africa`s only empowered listed supplier of medical
devices and single use products to both the public and private hospital sectors.
Myriad`s strategy is to consolidate and rationalise the South African medical
device sector.
The group currently consists of seven business units, with the rights to 27
leading agencies with a wide range of different products of premier brands.
Myriad was listed on the Altx list of the JSE Limited on 17 October 2006,
raising R95 million. The initial private placing was oversubscribed.
Myriad has two wholly-owned subsidiaries, Myriad Medical (Proprietary) Limited
(MMPL) and Filterworks (Pty) Limited (Filterworks). Besides the Pall medical
filter agency which is housed in Filterworks, MMPL houses all of the group`s
operating divisions and the Myriad Training Academy. These include, as separate
divisions, the businesses and agencies acquired, namely the Manta Medical
division, the Manta Forensic division, the ICU Medical division, Earth Medical
division and the Myriad Medical capital and technical division, which
incorporates the businesses of Callen Medical Suppliers, Vitalcare Technologies
and the Newport agency.
OPERATIONAL REVIEW
For the 12 months to 31 May 2007, the company generated profit after tax of
R16.3 million. Based on the weighted average number of shares of 175,237,112,
the resultant earnings and headline earnings per share was 9.3 cps. This
compares favourably to Myriad`s forecast range per its pre-listing statement of
8.1 cps to 9.2 cps.
As Myriad did not acquire the debtors and creditors of Manta Medical, Manta
Forensic, ICU, Callen and Vital, R6.8 million of the cash generated by
operations during the period has been utilised to fund the net build up of
debtors in these businesses. Myriad has also invested a further R9.6 million in
its inventory holding. This increase in inventory relates to the expansion of
medical capital product lines, an increase in goods in transit at year end and
inventory in respect of new agencies and businesses recently acquired.
As at 31 May 2007, the group had cash on hand of R9.4 million. This cash will be
mainly utilised to fund the growth of new agencies, the additional purchase
payment to Manta Medical as per the pre-listing statement, and to settle
taxation liabilities.
Trading for the 12 months was strong, with the larger divisions, ICU Medical and
both the Manta divisions, exceeding their respective forecasts. Manta Medical
Division renewed existing exclusive preferred supplier agreements within the
private hospital groups by further securing its place within the medical device
market for the next two years. Further upside was attained by the awarding of
government tender business not previously held which bodes well for the future.
The Manta Forensic Division, which is the sole supplier to the South African
Police for its DNA collection kits for crime identification purposes, e.g. rape,
ballistics and crime scenes, was awarded contracts for all eight categories that
were put out for tender. The benefits of these tenders will accrue over the next
two years. ICU Medical has been re-awarded a government tender and the contract
for needle free access devices for a large private hospital group, both of which
are for a period of two years. ICU Medical is also currently expanding its
product range into the oncology arena.
Myriad has consolidated and expanded the Callen and Vital businesses. These
business units, together with the Newport ventilator agency, form the Myriad
Medical capital and technical division, which is now based at Myriad`s head
office in Bryanston. The expansion of this business unit included employing
additional technical staff and sales representatives to develop a national
footprint.
The Myriad Training Academy which has now expanded by adding a Western Cape
presence has been actively training private and government doctors and nurses,
as well as the Myriad sales staff. The Training Academy has developed close
associations with leading South African universities.
ACQUISITIONS
As outlined at the time of listing, Myriad aims to expand its product portfolio
through acquisition. In the year under review the Group acquired the business of
Earth Medical CC and 100% of Filterworks (Pty) Ltd. Earth Medical markets and
distributes medical devices in the fields of infection control, arthroscopy and
arthroplasty (orthopedics), urology and women`s health. Filterworks is a leading
supplier of a full range of medical filters. Both of these businesses give
Myriad an entree into new product areas. These businesses were acquired on the
basis of warranted profit formulae.
NEW AGENCIES
In line with its strategy of expanding its product offering Myriad has secured,
since listing, the agency rights for two agencies that supply infant warmers,
cardiac monitors, incubators and a diverse range of high-end hospital furniture.
Myriad has also acquired the rights from the United Kingdom to distribute the
Trio Healthcare range of wound dressing removal products which is complementary
to Manta Medical`s Molnlycke range of products.
PROSPECTS
Myriad has recently identified several new hospitals that require the supply and
financing of medical equipment, the supply of single use medical devices and
training of medical personnel. Ultimately, being a significant contributor to
providing the total solution to these hospitals is part of Myriad`s overall
strategy and is an area where there are considerable organic growth
opportunities for Myriad.
Since listing, Myriad has become increasingly more active in tendering for
government contracts. Myriad has set up its own internal tender division. This
division will ensure that Myriad maximises its participation in these tenders.
Myriad has identified and is in preliminary acquisition discussions with a
number of medical device companies that have established businesses into areas
into which Myriad is looking to enter or which have complementary products to
Myriad. The group continues to be in discussions with additional international
principals to represent their products in South Africa and Africa.
Myriad is in discussions with potential sub-distributors in Kenya, Angola and
Botswana to act as exclusive distributors for Myriad`s products in these
countries.
In its pre-listing statement, Myriad forecast headline and earnings per share of
11.6 cents for the financial year to 31 May 2008. Should the aforementioned
prospects materialise and the business units perform in line with management`s
expectations, this forecast could be exceeded.
BASIS OF PREPARATION
As this is the first year of trading, no comparative figures have been
presented. The consolidated annual financial statements for the year ended 31
May 2007 have been audited by Moores Rowland Chartered Accountants (SA) and
their unqualified audit report on this set of summarised financial statements is
available for inspection at the Company`s registered office. These summarised
financial statements have been derived from the Group financial statements and
are consistent in all respects, with the Group financial statements. Myriad has
adopted International Financial Reporting Standards (IFRS) for the year ended 31
May 2007. The financial statements have been prepared in accordance with IFRS
and the Listings requirements of the JSE Limited.
APPOINTMENT OF DIRECTOR
With effect from 7 August 2007, Mr Lucky Senamolele will join the Board of
directors of Myriad. Mr Senamolele is a Director of IDG Financial Services, a
subsidiary of the IDG Group, Myriad`s largest single shareholder.
DIVIDEND
No dividend has been recommended or declared for this financial year. Myriad
will review this policy in the 2008 financial year.
For and on behalf of the board
Dr PM Mandela, Chairperson
Johannesburg
6 August 2007
Directors: Dr PM Mandela*, Dr J Shapiro, RS Shapiro, M Nielsen, D Schneider*, P
Vallet*
(*non-executive)
Designated Adviser
Sasfin Capital
(a division of Sasfin Bank Limited)
Auditors
Moores Rowland
Transfer secretaries
Computershare Investor Services 2004 (Pty) Ltd
Registered office
Second Floor
5 St David`s Place
Parktown, 2193
Johannesburg
Date: 06/08/2007 09:23:01 Produced by the JSE SENS Department.
