| Wed 21 Nov 2007, 14:09 | | TLM - Telemasters Holdings Limited - Abridged Audi |
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TLM
TLM
TLM - Telemasters Holdings Limited - Abridged Audited Financial Results
For The Financial Year Ended 30 September 2007
TELEMASTERS HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2006/015734/06)
Share code: TLM & ISIN Number: ZAE000093324
("TeleMasters" or "the Company")
ABRIDGED AUDITED FINANCIAL RESULTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER
2007
INCOME STATEMENT
Audited Profit forecast
year ended issued in Pre-
30 September listing Statement
2007 for the year
ended 30
September
2007
R R
Revenue 150,708,587 129,815,226
Cost of sales (124,334,542) (111,085,839)
Gross profit 26,374,045 18,729,387
Other income - 10,000
Investment income 488,266 -
Gross income 26,862,311 18,739,387
Operating expenses (11,353,252) (7,636,926)
Operating profit 15,509,059 11,102,461
Finance costs (54,118) -
Profit before taxation 15,454,941 11,102,461
Taxation (4,441,416) (3 844 714)
Net profit for the period 11,013,525 7,257,747
Number of shares in issue (`000) 42,000 42,000
Weighted Average number of shares in 40 853 42,000
issue(`000)
Headline earnings per share (cents) 26.95 17.28
Earnings per share (cents) 26.95 17.28
Diluted earnings per share (cents) 26.95 17.28
BALANCE SHEET
Audited
At
30 September
2007
R
ASSETS
Non-current assets - 7,515,582
Intangible assets - 308,900
Property, plant and equipment - 7,206,663
Other financial assets - 19
Current assets - 30,134,963
Trade and other receivables - 10,782,100
Cash and cash equivalents - 19,352,863
Total assets - 37,650,545
EQUITY AND LIABILITIES
Total equity - 16,521,584
Share capital - 4,200
Share premium - 5,503,859
Retained earnings - 11,013,525
Non-current liabilities - 540,192
Instalment sale obligations - 469,672
Deferred tax - 70,520
Current liabilities - 20,588,769
Instalment sale obligations - 269,573
Trade and other payables - 15,926,362
Current tax payable - 4,370,896
Bank overdraft - 21,938
Total equity and liabilities - 37,650,545
Net asset value per
share (cents) - 39,34
Net tangible asset
value per share (cents) - 38,60
CASH FLOW STATEMENT
Cash flows from operating
activities
Cash generated from operations - 22,633,254
Investment income - 488,266
Finance costs - (54,118)
Net cash from operating - 23,067,402
activities
-
Cash flows from investing -
activities
Expenditure to expand operating
activities
Property, plant and equipment - (9,587,448)
acquired
Intangible assets acquired - (397,313)
Purchase of financial assets - (19)
Net cash from investing - (9,983,780)
activities
Cash flows from financing
activities
Proceeds on share issues - 5,970,462
Reduction of share premium with - (462,403)
share issue & listing costs
Repayment of instalment sale - (128,530)
obligations
Proceeds from instalment sale - 867,775
obligations
Net cash from financing - 6,247,304
activities
Total cash movement for the - 19,330,926
period
Cash at beginning of period -
Total cash at end of the period - 19,330,926
STATEMENT OF CHANGES IN
SHAREHOLDERS`
EQUITY
Balance on incorporation -
Share capital and share premium - 5,970,462
issued
Listing & share issue costs - (462,403)
deducted from share premium
Net profit for the period - 11,013,525
Balance at 30 June 2007 - 16,521,584
COMMENTARY
The Board of directors is pleased to present the audited results for the year
ended 30 September 2007.
1. FINANCIAL RESULTS
1.1 Statement of compliance and basis of preparation
The annual financial statements for the year ended 30 September 2007 have
been prepared in accordance with accounting policies and methods of
computation which are consistent with International Financial Reporting
Standards. These results have been extracted from the annual financial
statements which have been audited by BDO Spencer Steward. Their
unqualified opinion is available for inspection at the registered office of
the company. This announcement is prepared in accordance with IAS 34 -
Interim Financial Reporting.
The forecast figures included in the Pre-listing statement dated 8 March
2007 have been used as the comparative figures in the income statement. No
comparative figures have been provided for the balance sheet or cash flow
statement as this is the first reporting period since the company`s
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 results for the year exceed the forecast due to good trading conditions
resulting from a conservative approach taken at the time of preparing the
forecast. Included in the results is an incentive amount of R1,5 million
obtained from a supplier which will not be repeated in the next financial
year as well as lower than anticipated discounts granted by the Company.
The results reflect net profits after tax of 51,74% above the forecast
figures for the year. The revenue for the period being 16,1% up due to the
better than anticipated trading environment, lower discounts granted and
the once off incentives received. The increase in the gross profit
percentage by 3% is a direct result of the above increases in revenue and
continued cost saving measures applied to the operations of the company.
The increased operating expenses arose due to additional administration and
support structures put in place to better administer and monitor a public
company and the growing business.
1.3 Dividends
A dividend of 12 cents per shares has been been declared and is payable to
all shareholders registered as such on 30 November 2007. A higher dividend
was not declared as a portion of the cash balances may be needed in order
to assist with future anticipated acquisitions.
2. LITIGATION
There are currently no legal or arbitration proceedings against the Company
and the Company has no
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
position of the Company.
3. SUBSEQUENT EVENTS
There have been no significant events after the period end.
4. SHARE CAPITAL
The following changes to the Share Capital occurred since incorporation:
- 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
The trading conditions continue to be good with hard working and committed
staff striving to exceed expectations. We have increased our sales force by
25% in the last quarter adding to our well motivated and incentivised sales
channel. Despite this increase we have a strong focus on containing costs
and this is evidenced by the exceptional operating results. TeleMasters is
continuing with its strategy of consolidating its offering to clients with
a number of existing in-house products. These products enable us to offer a
tele-management service that is unique and revenue enhancing. We remain
committed to providing sustainable, tangible and substantial savings in the
filed of telecommunications to our clients with an emphasis on the value-
add`s which our company offers and which distinguishes us from our
competitiors.
The Company is set to continue with its existing organic growth and
anticipate the growth in the company to be in the region of 20% in the next
year. The company retains a wide spread of clients serviced in an
effective, simple and cost efficient manner with strong cash flows.
Various acquisition opportunities have come to the fore and these have been
explored. The board is now in the process of formalising these transactions
and anticipate that at least three new business lines aimed at diversifying
our communications solutions will be entered into within the next few
weeks. Our BBBEE strategy is linked to our contemplated acquisitions where
if finalised the shares will be placed in the appropriate hands.
For and on behalf of the Board:
ME Moji MB Pretorius
Non-executive Chairman Chief Executive Officer
21 November 2007
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)
Designated Advisor: River Group
Website: www.telemasters.co.za
Date: 21/11/2007 14:09:10 Produced by the JSE SENS Department.
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