| Tue 2 Oct 2007, 13:00 | | DCT - Datacentrix Holdings - Unaudited Interim Res |
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DCT
DCT
DCT - Datacentrix Holdings - Unaudited Interim Results For The Six Months
Ended 31 August 2007 and dividend declaration
DATACENTRIX HOLDINGS LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER: 1998/006413/06)
JSE CODE: DCT
ISIN: ZAE000016051
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2007
- Key Financial Indicators
- Revenue increased 15%
- EBITDA increased 33% to R66 million
- Headline earnings per share (HEPS) increased 53% to 22.2 cents
- Earnings per share (EPS) increased 57% to 22.2 cents
- Cash generated from operations of R81 million resulting in cash on hand of
R207 million
- Interim dividend increased by 57% to 11.0 cents per share
Abridged Consolidated Income Statement for the six months ended 31 August 2007
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
31 August 31 August 28 February
2007 2006 2007
R`000 R`000 R`000
Revenue 693 711 604 262 1 201 904
Operating profit 61 584 44 112 114 433
Net interest received 5 950 5 708 9 750
Profit before taxation 67 534 49 820 124 183
Income tax expense (24 043) (22 150) (45 913)
- normal and deferred (20 656) (14 452) (36 419)
taxation
- secondary taxation on (3 387) (7 698) (9 494)
companies
Earnings for the period 43 491 27 670 78 270
attributable to ordinary
shareholders
Earnings before interest, 66 428 50 030 124 564
taxation, depreciation and
amortisation (EBITDA)
Basic earnings per ordinary 22.2 14.1 40.0
share (cents)
Diluted basic earnings per 21.7 13.8 39.2
ordinary share (cents)
Headline earnings per 22.2 14.5 40.4
ordinary share (cents)
Diluted headline earnings per 21.7 14.1 39.5
ordinary share (cents)
Dividend per share (cents) 11.0 7.0 20.2
Weighted average number of 195 785 195 647 195 655
shares in issue* (000s)
Weighted average number of 200 129 200 565 199 635
shares in issue for purposes
of dilution* (000s)
*adjusted for treasury shares
Reconciliation between
earnings for the period
attributable to ordinary
shareholders and headline
earnings
43 491 27 670 78 270
Earnings attributable to
ordinary shareholders
Impairment of goodwill - 661 661
(Profit) Loss on sale of (49) - 21
assets
Earnings for the purpose of 43 442 28 331 78 952
basic and diluted earnings
per share
Abridged Consolidated Balance Sheet at 31 August 2007
Unaudited Unaudited Audited
31 August 31 August 28 February
2007 2006 2007 R`000
R`000 R`000
ASSETS
Non-current assets 64 400 74 547 65 297
Property and equipment 31 094 30 322 30 074
Software 1 025 932 867
Goodwill 15 596 15 596 15 596
Investment in joint venture - 290 -
Deferred tax assets 14 009 21 955 14 582
Long term receivables 2 676 5 452 4 178
Current assets 434 320 328 429 392 048
Inventories 10 006 33 429 9 401
Trade and other receivables 217 056 149 756 208 806
Cash and cash equivalents 207 258 145 244 173 841
TOTAL ASSETS 498 720 402 976 457 345
EQUITY AND LIABILITIES
Capital and reserves 263 146 212 767 248 468
Share capital 21 21 21
Share premium 40 095 40 735 40 709
Treasury shares (31 331) (22 983) (25 958)
Equity-settled share scheme 11 642 6 842 8 642
reserve
Retained earnings 242 719 188 152 225 054
Non-current liabilities 22 768 26 207 20 334
Obligations under finance 823 2 849 2 007
leases
Deferred revenue 21 945 23 358 18 327
Current liabilities 212 806 164 002 188 543
Trade and other payables 156 459 110 893 133 643
Provisions 13 234 16 974 18 485
Deferred revenue 27 886 17 987 27 655
Lease liability 393 263 460
Current tax liabilities 14 834 17 885 8 300
TOTAL EQUITY AND LIABILITIES 498 720 402 976 457 345
Net asset value (adjusted for 134.4 108.8 127.0
treasury shares) per share
(cents)
Tangible net asset value 125.9 100.3 118.6
(adjusted for treasury shares)
per share (cents)
Weighted average number of 195 785 195 647 195 655
shares in issue (000s)
Abridged Consolidated Statement of Changes in Equity for the six months ended
31 August 2007
Equity-
settled
share
Share Share Treasury scheme Retained
capital premium shares reserve earnings Total
R`000 R`000 R`000 R`000 R`000 R`000
Balance at 28 21 40 311 (20 203) 5 042 219 176 244 347
February 2006
Profit for the - - - - 27 670 27 670
period
Treasury - - (2 780) - - (2 780)
shares
movement
Share-based - - - 1 800 - 1 800
payments
Dividends paid - - - - (58 694) (58 694)
Profit on sale - 424 - - - 424
of treasury
shares
Balance at 31 21 40 735 (22 983) 6 842 188 152 212 767
August 2006
Profit for the - - - - 50 600 50 600
period
Treasury - - (2 975) - - (2 975)
shares
movement
Share-based - - - 1 800 - 1 800
payments
Dividends paid - - - - (13 698) (13 698)
Profit on sale - (26) - - - (26)
of treasury
shares
Balance at 28 21 40 709 (25 958) 8 642 225 054 248 468
February 2007
Profit for the - - - - 43 491 43 491
period
Treasury - - (5 373) - - (5 373)
shares
movement
Share-based - - - 3 000 - 3 000
payments
Dividends paid - - - - (25 826) (25 826)
Profit on sale - (614) - - - (614)
of treasury
shares
Balance at 31 21 40 095 (31 331) 11 642 242 719 263 146
August 2007
Abridged Consolidated Cash Flow Statement for
the six months ended 31 August 2007
Unaudited Unaudited Audited
6 months 6 months 12 months
ended 31 ended 31 ended 28
August August February
2007 2006 2007
R`000 R`000 R`000
Profit before taxation 67 534 49 820 124 183
Adjusted for non-cash items 1 164 2 632 4 825
Working capital changes 12 705 3 604 (339)
- Inventory (605) (28 593) (4 565)
- Trade and other accounts (8 038) 60 134 3 167
receivable
- Trade, other accounts payable 21 348 (27 937) 1 737
and liabilities
Cash generated from operations 81 403 56 056 129 347
Net interest received 5 950 5 708 9 750
Dividend paid (25 826) (58 694) (72 392)
Taxation paid (16 859) (18 605) (44 657)
Net cash inflow (outflow) from 44 668 (15 535) 22 048
operating activities
Net cash outflow from investing (4 807) (846) (6 077)
activities
Net cash (outflow) inflow from (6 444) (3 989) 7 745
financing activities
Net increase (decrease) in cash and 33 417 (20 371) 8 226
cash equivalents
Cash and cash equivalents at the 173 841 165 615 165 615
beginning of the period
Cash and cash equivalents at the 207 258 145 244 173 841
end of the period
Basis of Preparation
The condensed financial statements of the group are prepared as a going concern
on a historical cost basis except for certain financial instruments, at
amortised cost or fair value. The summarised annual financial statements
conform to International Accounting Standard 34: Interim Financial Reporting,
the Listings Requirements of the JSE Limited and the Companies Act of South
Africa (Act 61 of 1973). The principal accounting policies, which comply with
International Financial Reporting Standards, have been consistently applied in
all material respects in the current and comparative periods. All new
interpretations and standards were assessed and adopted with no material
impact.
Commentary
The directors of Datacentrix Holdings Limited are proud to announce the interim
financial results of the group for the six month period ended 31 August 2007.
Growth has been achieved on all the indices normally reported on. There has
been strong operational performance across the business.
Headline earnings per share (HEPS) increased by 53% to 22.2 cents and earnings
per share (EPS) increased 57% to 22.2 cents. Operating performance (EBITDA)
increased by 33% to R66 million. Cash generated from operations was R81
million.
Infrastructure and Related Services
The Infrastructure and Related Services division continues to be a dominant
player in the supply, deployment, maintenance and support of IT infrastructure
solutions to enterprise South Africa. In the period under review this division
produced healthy organic growth contributing R658 million (2006: R568 million)
and R52 million (2006: R38 million) to the group`s revenue and segment result
(profitability) for the period respectively. Once again the division received a
number of awards at HP`s Partner-of-the-year event reaffirming our credentials
as a trusted partner to both our vendors and customers.
The division experienced strong performance in particular in the enterprise
systems, selective outsourcing and commercial segment of the market. We have
retained our major clients, renewed existing contracts and grown our existing
client base. We continue to ensure that the group is accredited by its vendors
at the highest possible level both in the technical and sales arenas. The
continued expansion of our service offering has enabled us to provide more
services to customers, further enhancing our strategic value to them as a
single source service provider. This commitment ensures Datacentrix is a cost
effective partner for the supply, installation and maintenance of equipment
over its entire life-cycle, providing customers with the ability to focus their
resources on their core business. The division`s strategic focus remains
unchanged.
Client satisfaction is the foundation of our business. Datacentrix`s full
service focus on the supply and support of IT Infrastructure ensures ease of
engagement. Clients are assisted through the various processes including needs
assessment, product evaluation and selection, configuration and installation
and the support of the infrastructure thereafter.
Solutions
The Enterprise Resource Planning business unit has consolidated its performance
by ensuring that the fundamentals are in place and that projects are delivered
as per client expectations. The sales capacity has been enhanced during the
period to focus on growth with a sound service delivery foundation. Datacentrix
maintains its Microsoft Gold Partner status.
The Workflow and Development business unit has won major projects in the areas
of workflow, business intelligence and data-mining during the period. The
Optimisation business unit, serving the electronic content management and
archiving areas, has also performed creditably.
Overall the Solutions business has improved its profitability (segment result)
to R9.7 million (2006: R6.7 million) and contributed R35 million (2006: R36
million) to the group`s revenue.
Board and Management Changes
Vernon Tutton has been appointed Managing Director of Services and Kelebone
Tekateka has been appointed Managing Director of Infrastructure Pretoria
effective 1 October 2007. We would also like to announce the resignation of
Johan Landsberg as Company Secretary. Johan will continue with other key
responsibilities within the group. Mavis Thomani, CA (SA), has been appointed
as the Company Secretary, effective 2 October 2007.
As previously communicated to shareholders, Stewart Barker resigned as an
executive director with effect from 1 September 2007. The board thanks Stewart
for his contribution.
Prospects
Datacentrix will continue to consolidate its position in the market space and
the outlook remains positive. Both the private sector and government show
healthy activity in IT expenditure and as always Datacentrix expects to
maintain or increase market share. Indices cited in the past as engines for
growth, such as mobile computing, security, storage and new Microsoft releases
continue to fuel growth in the infrastructure and services market.
Datacentrix is still well positioned to capitalise on the opportunities
outlined above.
Dividend
An interim dividend of 11.0 cents has been declared in line with our dividend
policy of two times cover on HEPS.
Declaration date: Monday, 1 October 2007
Last day to trade: Friday, 19 October 2007
Share trade ex dividend: Monday, 22 October 2007
Record date: Friday, 26 October 2007
Payment date: Monday, 29 October 2007
Share certificates may not be dematerialised or rematerialised between 22
October 2007 and 26 October 2007, both days inclusive.
For and on behalf of the Board:
Gary Morolo
Chairman
2 October 2007
Directors: Gary Morolo (Chairman)*, Gerhard Uys (CEO), Ahmed Mahomed (COO),
Elizabeth Naidoo (CFO), Alwyn Martin*, Imogen Mkhize*, Israel Skosana*, Joan
Joffe* (*non-executive)
Registered Office: Block 7, Sanwood Park, 379 Queens Crescent, Lynnwood,
Pretoria
Transfer Secretaries: Computershare Investor Services 2004 (Pty) Ltd, 70
Marshall Street, Johannesburg
Sponsor: Barnard Jacobs Mellet Corporate Finance (Pty) Ltd
Date: 02/10/2007 13:00:00 Produced by the JSE SENS Department.
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