| Thu 23 Aug 2007, 10:13 | | BEE - Beget - Revised Financial - effects update t |
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BEE
BEE
BEE - Beget - Revised Financial - effects update to shareholders
BEGET HOLDINGS LIMITED
Incorporated in the Republic of South Africa
Registration number: 2002/011635/06
Share code: BEE & ISIN number: ZAE000044111
("Beget" or "the company")
REVISED FINANCIAL EFFECTS - UPDATE TO SHAREHOLDERS
INTRODUCTION
Shareholders are referred to the announcement dated 12 June 2007, advising
shareholders that Beget had entered into a BEE transaction with SMM Telematics
(Proprietary) Limited ("SMM").
The purpose of this announcement is to update shareholders on developments post
the company`s 30 April 2007 year end. This announcement further sets out the
financial effects of the BEE transaction, as more fully described in the
announcement referred to above, based on the audited financial results for the
year ended 30 April 2007.
UPDATE
With the roll-out process of the driver identification devices in progress, SMM
has paid Beget R1.2 million in respect of the first 1,000 devices that are
currently being installed. The roll-out process was delayed by about 3 weeks as
a result of the Public Workers strike. The second 1,000 devices are due for
installation by the end of August 2007.
Estimated revenue for the first 6 months of the 2008 financial year is expected
to exceed the revenue achieved for the 2007 financial year. With a few large
orders still to be finalized and on the assumption these are concluded, Beget
expects to achieve a net profit in excess of R7 million, for the 6 months ending
31 October 2007. This forecast has not been audited.
Having completed the development of Beget`s own "Time and Attendance" software,
the company`s gross profit on the Biometric solution has increased. With a
direct link to a Web based Payroll system, Beget can now supply its own all
inclusive time monitoring solution.
As regards the reportable irregularity mentioned in the 30 April 2007 Audit
Report, relating to outstanding amounts due to SARS, Beget is currently in
negotiations with SARS to arrange for a settlement plan for the outstanding
amounts. A leading tax consulting firm has been appointed by Beget to liaise
with SARS and initial indications are that a re-payment period of 6 - 12 months
will be granted to settle the arrears. These payments will come from Beget`s
operating cash flow.
FINANCIAL EFFECTS
The pro forma financial effects of the SMM transaction, based on the audited
results of Beget for the 12 months ended 30 April 2007 are set out below. The
pro forma financial effects have been prepared for illustrative purposes only to
provide information on how the transaction may have impacted on the results and
financial position of Beget. Preparation of the pro forma financial effects is
the responsibility of the directors. Because of their nature, the pro forma
financial effects may not fairly present Beget`s financial position after the
transaction or the effect on future earnings:
Before the After the % change
Transaction Transaction -
(1) Pro forma (3)
Earnings -3.91 -1.78 (2) 54.48%
(cents per
share)
Headline -1.68 -0.19 (2) 88.69%
earnings
(cents per
share)
Net asset -2.70 -1.03 (4) 61.85%
value
(cents per
share)
Net tangible -2.91 -1.18 (4) 59.45%
asset value
(cents per
share)
Weighted 508,413 713,163
average number
of shares in
issue (000)
Number of 556,959 761,709
shares in
issue (000)
Notes:
Based on the year end results of Beget for the period ended 30 April 2007.
The earnings and headline earnings were calculated on the assumption that the
transaction was effected from 1 May 2006 taking into account the royalty fees
which will amount to R7 200 000 in respect of the 5 000 unit order. Any further
orders will attract additional Royalty income.
There was no calculation done for income tax as the company has a calculated
assessed loss for the financial year ended 30 April 2007. The total Beget
ordinary shares to be issued in terms of the transaction, being 204 750 000.
The number of shares in issue for the calculation for the Net Asset value per
share and the Net Tangible Asset value per share was calculated as at 30 April
2007.
CIRCULAR
Shareholders are advised that the company will post a circular to shareholders
detailing the BEE transaction within the next few weeks.
Pretoria
23 August 2007
Sponsor
Sasfin Capital
A division of Sasfin Bank Limited
Date: 23/08/2007 10:13:01 Produced by the JSE SENS Department.
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