| Fri 30 Nov 2007, 9:38 | | DTH - DVT - DVT interim group results for the six |
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DTH
DTH
DTH - DVT - DVT interim group results for the six months ended 31 August
2007 and appointment of director
Dynamic Visual Technologies Holdings Limited
(Incorporated in the Republic of South Africa)
(Company registration number 2004/016984/06)
Share code: DTH ISIN Code: ZAE000109070
("DVT" or "the Group")
DVT INTERIM GROUP RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2007
AND APPOINTMENT OF DIRECTOR
HIGHLIGHTS
- Revenue increased by 119% to R28,3 million
- Earnings increased by 171% to R2,9 million
- Assets increased by 95% to R21,8 million
- Cash increased by R5,4 million
Unaudited Unaudited Audited
6 months 6 months Year ended
to 31 Aug to 31 Aug to 28 Feb
2007 2006 2007
ABRIDGED INCOME STATEMENT R `000 R `000 R `000
Revenue 28 268 12 913 36 269
Operating income before impairment of assets 3 984 1 656 4 792
Impairment of assets - - (460)
Financial income 83 - 34
Financial costs - (2) (24)
Income - associate - 92 92
Profit before taxation 4 067 1 746 4 433
Income Tax - Normal and Deferred (1 222) (481) (1 164)
Income Tax - Secondary Tax on Companies - (217) (100)
Profit for the period 2 845 1 048 3 169
Attributable to
Equity holders of the parent 2 755 1 048 3 010
Minority interest 90 - 159
Weighted number of shares in issue 20 137 482 1 000 137 982
Earnings per share (cents) 14.1 104 830 2 296
Headline earnings per share 14.1 104 830 1 963
The change in the weighted number of shares in issue is due to the re-
structuring of the Group. For the 6 months to 31 August 2006, authorised
and issued share capital was consistent at 1 000 ordinary shares of 100
cents each. For the 6 months to 28 February 2007, the authorised share
capital was increased and then split (200:1) into 2 million shares of
R0,005 each. 274 964 ordinary shares of R0.005 each were in issue for
the duration of this period. For the 6 months to 31 August 2007, 274 964
shares remained in issue for the first 3 months. For the remaining 3
months, and in preparation for listing, all minority shareholding in the
underlying subsidiaries was acquired. Authorised Share capital was
increased to 200 million ordinary shares of R0,005 each and a
capitalization issue and allotment was done to increase the total number
of share in issue to 40 million.
Unaudited Unaudited Audited
6 months 6 months Year ended
to 31 Aug to 31 Aug to 28 Feb
2007 2006 2007
ABRIDGED CASH FLOW STATEMENT R `000 R `000 R `000
Cash generated by operations 5 073 883 3 498
Operating cash flow 4 240 2 417 6 531
Movement in working capital 803 (621) (1 008)
Net interest received / (paid) 83 (2) 10
Taxation paid (53) (911) (2 035)
Investing activities (3 690) (475) (447)
Financing activities 2 122 (574) (1 320)
Decrease/(increase) in cash
and cash equivalents 3 505 (166) (1 731)
Cash and cash equivalents
at beginning of period 1 759 28 28
at end of period 5 264 (138) (1 759)
Unaudited Unaudited Audited
6 months 6 months Year ended
to 31 Aug to 31 Aug to 28 Feb
2007 2006 2007
STATEMENT OF CHANGES IN EQUITY R `000 R `000 R `000
Balance at beginning of period 9 775 2 911 2 911
Minorities (448) - 249
Profit for the period 2 845 1 048 3 169
Movement in reserves (220) - 4 255
Shares issued / (repurchased) in restructure 2 557 - (0.3)
Dividends - - (808)
Balance at end of period 14 509 3 959 9 775
Unaudited Unaudited Audited
6 months 6 months Year ended
to 31 Aug to 31 Aug to 28 Feb
2007 2006 2007
ABRIDGED BALANCE SHEET R `000 R `000 R `000
ASSETS
Non-current assets 9 897 7 211 6 906
Property, plant and equipment 915 882 774
Intangible assets 8 827 6 189 5 982
Investment in Associate - 140 -
Deferred tax assets 155 - 150
Current assets 11 886 3 941 7 411
Trade and other receivables 6 622 4 079 5 653
Cash and cash equivalents 5 264 (138) 1 759
Total assets 21 783 11 152 14 318
EQUITY AND LIABILITIES
Total equity 14 509 3 959 9 775
Equity attributable to equity
holders of the parent 14 509 3 959 9 417
Minority interest - - 358
Non-current liabilities
Loans payable 40 4 496 254
Current liabilities 7 234 2 697 4 289
Trade and other payables 5 291 1 477 3 520
Deferred tax liability - 522 -
Taxation 1 943 698 769
Total equity and liabilities 21 783 11 152 14 318
Shares in issue at end of period 40 000 000 1 000 274 964
Net asset value per share (cents) 36 395 895 3 555
Net tangible asset value per share (cents) 14 (222 988) 1 379
OVERVIEW
Basis of preparation and accounting policies
The interim results for the six months ended 31 August 2007 have been
prepared in accordance with International Financial Reporting Standards
(IFRS), and comply with IAS 34 - Interim Financial Reporting. The
accounting policies used in the preparation of the interim results are
consistent with those used in the annual financial statements for the
period ended 28 February 2007. The interim results for the six months
ended 31 August 2007 have not been reviewed by DVT`s auditors.
Financial Results
- Revenue for the period increased by 119% to R28,3 million, and was
due to a strong organic growth in turnover and by the effects of a
restructuring exercise and change in accounting treatment resulting in
DVT owning 100% of its subsidiaries as at 31 August 2007.
- Operating profits increased by 141%, at an increased operating margin
of 14,1% (12,8% - August 2006).
- The Group achieved earnings for the six month period of R2,8 million
or 14,1 cents per share, representing a growth of 171% year on year.
- Cash has increased significantly, largely due to cash generated by
operations. The Group`s cash position moved from an overdraft of R138
000 in August 2006 to a surplus of R5.3 million by August 2007.
Dividend
No dividend was declared for the period under review
REVIEW OF OPERATIONS
Nature of Business
DVT provides business application software and services for corporate
and medium sized clients. Our software is provided either as a packaged
product or is custom built and tailored for specific business needs. Our
packaged products offer Customer Care and Service software, including
CRM, Loyalty / Incentive, IT Helpdesk and Call Centre solutions. DVT
retains specific skills in Microsoft Technologies, has a solid
relationship with Microsoft at a senior level, and is a Microsoft gold
certified partner. Our software is nearly always developed for core
business functionality, and we are contracted to provide services that
range from outsourced partnerships and support, through large-scale
projects, ad-hoc development, and specific individual skills. DVT is an
outcomes based company, and retains core competencies in software
development, business analysis, process analysis and project management.
Our strategy is to become one of the largest premier providers of
business applications software and services in South Africa.
Market conditions
Market conditions for the six month period under review have been
buoyant, and DVT expects local market demand to fuel organic growth in
all areas of the business. The restructuring process referred to above
has been implemented, the details of which are more fully disclosed in
the prospectus dated 29 October 2007.
Listing and prospects
DVT listed on the Alternative Exchange of the JSE Limited on 6 November
2007 and raised R15,8 million in terms of a private placing to select
investors. The private placing was substantially oversubscribed.
Given current market conditions, business track record and breadth of
management experience, strong organic growth will be achievable for a
number of years. DVT has further embarked on its strategy of expanding
through acquisition, allowing the business to diversify into related and
complementary technology and service areas.
APPOINTMENT OF DIRECTOR
In compliance with section 3.59(a) of the Listings Requirements of the
JSE Limited, notice is hereby given that Ashley de Klerk has been
appointed as Chief Operating Officer (COO) and an executive director of
DVT with effect from 1 December 2007. De Klerk will also fill the
position of Managing Director of DVT Gauteng (Pty) Ltd, a wholly owned
subsidiary of the Group.
De Klerk was previously Public Sector Director at Microsoft SA and has
20 years of experience in IT and software, including over 10 years as an
executive or director in various IT businesses. He has a wealth of
knowledge of the industry and is a valuable addition to the board of
DVT.
On behalf of the board:
Hamilton Ratshefola (Chairman)
Chris Wilkins (Chief Executive)
Graham Fowler (Financial Director)
Transfer secretaries:
Link Market Services (Pty) Ltd
11 Diagonal Street, Johannesburg, 2001
Company secretary and registered office:
G Fowler
2201 ABSA Centre, 2 Riebeeck Street, Cape Town, 8001
Directors:
H Ratshefola (Chairman)**,C Wilkins (Group Chief Executive), G Fowler, D
Hughes**, J Mamogale**
** Non-executive directors
Designated Advisor:
PSG Capital (Proprietary) Limited
Building 8, Woodmead Estates, 1 Woodmead Drive, Woodmead
Date: 30/11/2007 09:38:03 Produced by the JSE SENS Department.
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