| Fri 24 Aug 2007, 12:54 | | CCL - Compu-Clearing - Reviewed preliminary result |
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CCL
CCL
CCL - Compu-Clearing - Reviewed preliminary results: year ended 30 June 2007 and
dividend declaration
COMPU-CLEARING OUTSOURCING LIMITED
(Registration number 1998/015541/06)
(Incorporated in the Republic of South Africa)
Share Code: CCL & ISIN: ZAE000016564
("Compu-Clearing" or "the Company" or "The Group")
REVIEWED PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2007
I am pleased to announce satisfactory results for the year ended June 2007.
The year under review has been one of satisfactory revenue growth and once
again, excellent cash generation, a hallmark of Compu-Clearing for many years.
The group`s principal business, that of software rental, has grown by an
adequate 9%, driven mainly by an increase in customer volumes. Although there
has been also an increase in our customer base, the consequential additional
revenues, will only be reflected in the coming financial year. The Group`s
policy of expensing development costs as and when incurred is a significant
factor in expenditure growth, with costs incurred in new development projects
and the commencement of a major modernisation of our legacy systems. Although
the modernisation project will not result in immediate revenue growth, it is
essential to the preservation of current revenues and will position the company
for new developments and further growth.
Cash flow generation continued to be strong which prompted Compu-Clearing`s
board to decide to pay out exceptional cash distributions. Prospects for
continued high cash generation appear to be excellent.
Prospects
Prospects for the coming year appear good with a stable client base, marginally
increased volumes from our existing clients and moderate, but definite growth in
the client base. Management remains committed to the introduction of a number of
new products, although these may take time in resulting in additional revenues.
PRELIMINARY BALANCE SHEET
30/06/2007 30/06/2006 %
(reviewed) (audited) Increase /
R`000 R`000 (decrease)
ASSETS
Non current assets 14,657 15,879
Property, plant and equipment 13,540 14,370
Intangible asset 718 1,111
Deferred taxation asset 399 398
Current assets 29,028 29,194
Inventory 102 75
Trade and other receivables 6,085 7,183
Taxation receivable 1,183 18
Investments 4,616 2,296
Cash and cash equivalents 17,042 19,622
Total assets 43,685 45,073
EQUITY AND LIABILITIES
Shareholders` funds 39,189 40,343
Share capital and premium 5,760 12,461
Treasury shares (601) (804)
Reserves 34,030 28,686
Non-current liabilities 1,804 1,824
Post retirement medical
obligations 1,563 1,583
Deferred taxation liability 241 241
Current liabilities 2,692 2,906
Trade and other payables 2,690 2,906
Taxation payable 2 -
Total equity and liabilities 43,685 45,073
Net asset value per share cents) 97.1 103.9 (7)
PRELIMINARY INCOME STATEMENT
Year ended Year ended %
30/6/2007 30/6/2006 Increase /
(reviewed) (audited) (decrease)
R`000 R`000
Rental and other revenue 42,292 39,759 6
Operating costs 33,143 30,260
- Distribution 23,886 21,961
- Administration 8,454 7,528
- Other 803 771
Operating profit 9,149 9,499 (4)
Net finance revenue 1,739 1,648
- Financial income 1,740 1,843
- Financial expense (1) (195)
Profit before income tax 10,888 11,147 (2)
Income tax - Normal and deferred 2,132 3,082
Income tax - STC
(secondary tax on companies) 538 480
Profit for the year attributable
to ordinary shareholders 8,218 7,585 8
Basic earnings per share (cents) 20.6 19.6 5
Diluted earnings per
share (cents) 19.9 18.7
Special dividend per
share (cents) - 10.0
RECONCILIATION OF HEADLINE EARNINGS PER SHARE
Year ended Year ended %
30/6/2007 30/6/2006 Increase /
(reviewed) (audited) (decrease)
R`000 R`000
Profit for the year attributable to
ordinary shareholders 8,218 7,585
Adjusted for :
Loss on disposal of property, plant
and equipment 22 123
Taxation effect (6) (36)
Headline earnings 8,234 7,672 7
Headline earnings per share (cents) 20.6 19.9
Diluted headline earnings per share
(cents) 19.9 18.9
Actual number of shares in issue
(`000) 40,380 38,836
Weighted average number of shares
in issue (`000) 39,959 38,609
Diluted weighted average number of
shares in issue (`000) 41,393 40,589
PRELIMINARY SEGMENTAL REPORT
Year ended Year ended %
30/6/2007 30/6/2006 Increase /
(reviewed) (audited) (decrease)
R`000 R`000
Software rental revenue 30,984 28,537 9
Hardware rental revenue 8,895 9,064 (2)
Other 2,413 2,158 (12)
Total revenue 42,292 39,759 6
Total segment result 9,149 9,499 (4)
Operating margin 22% 24%
PRELIMINARY CASH FLOW STATEMENT
Year ended Year ended
30/6/2007 30/6/2006
(reviewed) (audited)
R`000 R`000
Profit before income tax 10,888 11,147
Adjustments for 1,082 928
Non-cash items 2,821 2,576
Net financial revenue (1,739) (1,648)
Cash generated by trading operations 11,970 12,075
(Decrease) / increase in post retirement
medical obligations (20) 107
Decrease/ (increase) in working
capital 855 (507)
Cash generated by operations 12,805 11,675
Net financial revenue 1,419 1,417
- Financial income 1,420 1,612
- Financial expense (1) (195)
Income tax paid (3,834) (1,516)
Distributions to shareholders (11,888) (3,847)
- Dividend paid (4,307) (3,847)
- Distribution of share premium (7,581) -
Cash flow from operating activities (1,498) 7,729
Cash flow from investing activities (3,710) (1,760)
Utilised to expand operations
Acquisition of property, plant and
equipment (462) (2,920)
Utilised to maintain operations
Acquisition of property, plant and
equipment (1,084) (1,320)
Acquisition of intangible asset (164) (110)
(Acquisition)/ disposal of other
investment (2,000) 2,590
Cash flow from financing activities
Proceeds from the issue of shares and
sale of treasury shares 2,628 1,059
Increase/ (decrease) in cash and cash
equivalents (2,580) 7,028
Cash and cash equivalents at the
beginning of the year 19,622 12,594
Cash and cash equivalents at the end
of the year 17,042 19,622
STATEMENT OF CHANGES IN EQUITY
Share
-based
Share Share Treasury Retained payment
Capital premium shares earnings reserve Total
R`000 R`000 R`000 R`000 R`000 R`000
Balance at
30 June 2005 400 12,061 (1,863) 24,380 418 35,396
Sale of treasury
shares 1,059 1,059
Recognised income and expense
- Profit for the year 7,585 7,585
Dividends paid (3,847) (3,847)
Share-based payment transaction 150 150
Balance at 30 June
2006 400 12,061 (804) 28,118 568 40,343
Sale of treasury shares 203 1,525 1,748
New share allotments 9 871 880
Recognised income and expense
- Profit for the year 8,218 8,218
Dividends paid (4,307) (4,307)
Distribution of share premium (7,581) (7,581)
Share-based payment transaction (112) (112)
Balance at 30 June
2007 409 5,351 (601) 33,574 456 39,189
Distributions to shareholders
A dividend of 11 cents (2006 - 10 cents) per share, relating to the 2006
financial year, was declared during the period. In addition distributions of
share premium amounting to 9 and 10 cents per share respectively were made to
shareholders.
Notice is hereby given that, in terms of a general authority granted on 25
October 2006, the board of directors has further resolved to distribute to
ordinary shareholders a portion of the share premium account (`the
distribution`). The distribution of 12 cents per ordinary share (2006: Nil),
will amount to R4,845,563. The following salient dates to the distribution will
apply:
Last date to trade `cum` the distribution Friday, 14 September 2007
Trading commences `ex` the distribution Monday, 17 September 2007
Record date Friday, 21 September 2007
Date of payment Tuesday, 25 September 2007
Share certificates may not be dematerialised or rematerialised during the period
Monday, 17 September to Friday, 21 September 2007, both days inclusive. The
following table illustrates the effect of the distribution of share premium and
net asset value per Compu-Clearing ordinary share had the distribution taken
place at the beginning of the year. These financial effects are prepared for
illustrative purposes only, are the responsibility of the board and because of
their nature, may not give a true indication of the company`s financial position
and results of operations.
Before (cents) After (cents) Change%
Earning per share 20.6 19.9 (3.4%)
Headline earnings per share 20.6 19.9 (3.4%)
Net tangible asset value per share 97.1 84.4 (13.1%)
The above table assumes a reduction in profit for the year, after applying the
after tax average interest rate earned on cash and cash equivalents from the
beginning of the financial year until the actual date the distributions were
paid. Net tangible asset value per share per these reviewed results is reduced
by the amount of the distribution payments and the adjustment to net profit for
the year.
Related party transactions
The group has entered into various transactions with related parties on an arm`s
length basis and at market related rates.
Basis of preparation
The preliminary financial statements have been prepared in accordance with the
recognition and measurement requirements of International Financial Reporting
Standards and the presentation and disclosure requirements of IAS 34. The
accounting policies applied are consistent with those reflected in the financial
statements for the year ended 30 June 2006.
Review report
The Group`s auditors KPMG Inc, have reviewed the financial information for the
year ended 30 June 2007. Their unqualified review report is available for
inspection at the registered office of the Company.
For and on behalf of the Board
Johannesburg A.Garber J. du Preez
23 August 2007 (Chairman) (Chief Executive)
Directors: A.Garber, J.du Preez, A.Katz*, M.Lutrin*, D. Rosevear*,
Dr.T.M.Mogale*, M.Steele*, A. Webb*, C.P. Efthymiades, M.Acosta-Alarcon.
*(Non-executive)
Transfer secretaries: Registered office:
Computershare Investor Services 7 Drome Road
2004 (Proprietary) Limited Lyndhurst, 2106
Ground Floor PO Box 890856
70 Marshall Street Lyndhurst
Johannesburg, 2001 2106
Auditors
KPMG Inc.
Sponsor
Sasfin Capital
(A division of Sasfin Bank Limited)
ONDENSED INCOME STATEMENT
Date: 24/08/2007 12:54:03 Produced by the JSE SENS Department.
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