| Mon 3 Dec 2007, 11:22 | | ZPT - Zaptronix - Abridged audited financial statements for the 12 months |
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ZPT
ZPT
ZPT - Zaptronix - Abridged audited financial statements for the 12 months
ended 31 August 2007
ZAPTRONIX LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1997/014928/06)
Share code: ZPT ISIN: ZAE000070934
("Zaptronix" or "the Company")
Abridged Audited Financial Statements for the 12 months ended 31 August
2007
BALANCE SHEETS
(R`000) GROUP COMPANY
Audited Audited Audited Audited
at at at at
31-Aug-07 31-Aug-06 31-Aug-07 31-Aug-06
ASSETS
Non-current assets 10,308 10,306 4,732 4,298
Fixed assets and intangibles 9,696 9,719 1,258 824
Investment in unlisted shares 612 470 3,474 3,474
Deferred tax - 117
Current assets 5,754 4,575 1,161 1,064
Accounts receivable
and inventory 5,429 4,528 1,153 1,045
Cash and cash equivalents 325 47 8 19
Total assets 16,062 14,881 5,893 5,362
EQUITY AND LIABILITIES
Capital and reserves 7,839 7,011 3,170 3,047
Share capital and premium 29,632 29,632 29,632 29,632
Non-distributable reserve 419 427 23 28
Accumulated losses (22,212) (23,048) (26,485) (26,613)
Non-current liabilities 3,832 2,994 955 738
Loans from group companies 556 316
Interest bearing borrowings 3,783 2,994 305 422
Deferred Tax 49 - 94 -
Current liabilities 4,391 4,876 1,768 1,577
Accounts payable and accruals 4,093 4,553 1,691 1,170
Provisions 298 323 77 407
Total equity and liabilities 16,062 14,881 5,893 5,362
NAV per share (cents) 2.07 1.85
Net tangible assets value
per share (cents) 1.44 0.20
Number of shares (` 000) 379,319 379,319 379,319 379,319
INCOME STATEMENTS
(R`000) GROUP COMPANY
Audited Audited Audited Audited
12 months 12 months 12 months 12 months
31-Aug-07 31-Aug-06 31-Aug-07 31-Aug-06
Revenue 23,693 20,831 3,506 3,603
Cost of sales (8,489) (7,982) (1,887) (2,149)
Gross profit 15,204 12,849 1,619 1,454
Operating costs (13,932) (12,496) (2,368) (2,530)
Operating profit/(loss) 1,272 353 (749) (1,076)
Other income 308 25 1,097 1,051
Net income before interest 1,580 378 348 (25)
and depreciation
Net interest paid (606) (219) (131) (68)
Net profit before taxation 974 159 217 (93)
Taxation (167) (180) (93)
Earnings after taxation 807 (21) 124 (93)
Earnings per share (cents) 0.21 (0.01)
Reconciliation of headline earnings:
Amortisation of intangible
assets (cents) 0.04
HEPS (cents) 0.25 (0.01)
STATEMENTS OF CHANGES IN EQUITY
Opening balance for
the period 7,011 6,773 3,046 229
Net profit/(loss)
for the period 807 (21) 124 (93)
Foreign currency
translation reserve 21 177
Derecognition of
Subsidiary (168)
Issue of share capital - - 2,883
Revaluation of assets - 250 - 28
Balance at the end
of the period 7,839 7,011 3,170 3,047
CASH FLOW STATEMENTS
Cash flows from 1,058 (372) 429
operations 1,630
Cash from/(utilised by) 1,642 (241) 497
operations 1,849
Net interest paid (131) (68)
(606) (219)
Cash invested (2,292) (325) (925)
(3,674)
Purchase of tangible (1,348) (51)
assets (1,811) (19)
Purchase of intangible (546) (436)
assets (944) (1,863)
Loans from group
companies 240
Loans to group companies repaid (438)
-
Cash from financing 1,512 422
activities 1,811 686
Net loans raised 1,534 422
1,811 686
Change in cash and (74)
equivalents 278 (233) (11)
Opening cash and 93
equivalents 47 280 19
Closing cash and 19
equivalents 325 47 8
COMMENTARY
1.1Basis for preparation
The annual financial statements for the 12 months ending 31 August 2007
have been prepared in accordance with International Financial Reporting
Standards "IFRS", "IAS 34" and the Companies Act of South Africa. The
accounting policies applied are consistent with that of the previous
year.
1.2Operational review
The business of Z@ptronix is to leverage its risk management
methodologies utilising proprietary telemetry, architecture and
applications delivering 24/7/365 operational control to the mobile,
logistics, energy and irrigation businesses. These systems are sold to
customers through the DuO SP and Z@p EMS business units on either an
ASP basis or outrights sale with support contract or under license. The
bulk of Z@ptronix income generated is annuity revenue.
RMS Technologies serves the group in terms of strategic procurement and
Information, Technology and Communication ("IT&C") development and
serves the customer base with implementation and integration support.
DuO SP continued its growth in the logistics, distribution and couriers
space with a growth in turnover of 15,4%. The market is differentiating
the DuO system from security tracking products driving organic growth
from blue chip and new customer growth. The focus on service levels and
cost control has more than doubled the contribution to profit from this
business and increased the embedded value of the DuO book by 26%.
The turnover from sale of Z@p Electrical Meter range has been
maintained, with time and money spent during the year on reorganising
the operations for this business and reducing cost to deliver the
quality products Z@ptronix is known for at competitive prices. This
strategy is paying off with the company winning its first tender and a
number of new products and systems that have come on line in the next
financial period.
1.3Financial review
Zaptronix Group has achieved a significant turnaround in its results
for the 12 months ending 31 August 2007.
The earnings R806 676 (EPS 0.21c) and headline earnings of R976 389
(HEPS 0.25c) compared to the loss of R21 652 for the same period in
2006.
The compounding benefit of increasing the quality and value of turnover
by 12% with total reduction in cost to income ratio of 4.4% has yielded
an improvement of 284% in the operating profit of Z@ptronix.
No revaluation of assets was done during the period and the investment
in the development of the required IT&C platform and applications has
been completed.
Zaptronix Group covers its interest liability 2,6 times (2006: 1.7) and
generated cash from operations equals 7% of turnover (2006: 9%).
Working capital is healthy at a ratio of 1.3 times (2006: 0.9) and
there was no change to the share capital. The Net Asset Value of
Zaptronix Group increased by 12% year on year.
1.4Events post year-end and future prospects
Zaptronix Limited was listed in 2005. The first acquisition, DuO
Solutions Provider (Pty) Ltd has been bedded down. The bulk of the
investment in IT&C to support its business has been sunk. Zaptronix
Group has been turned around to financial health.
Royal Bafokeng Capital (Pty) Ltd have acquired a 30% interest in
Z@ptronix after year end, adding a premium BBBEE brand to the profile
of the group. The transaction is linked to an option structure that
ensures that the BBBEE interest is sustained. Furthermore the
transaction was facilitated preventing the dilution of the existing
shareholder value. The option structure is awaiting shareholder
approval for which a circular will be posted by mid January 2008.
Z@ptronix is well positioned with new electrical metering products and
load management solutions to grow the contribution from the Z@p EMS
business.
The listing, corporate health and Z@ptronix Business Model lends access
to the capital market and acquisitions that underpin the core business.
1.5Dividend
No dividend has been proposed in terms of the growth phase the company
has embarked on.
For and behalf of the board of directors
TG Kgage JP Nel J Ramage
Chairman Chief Executive Officer Financial Director
Auditor: PKF (Pretoria) Incorporated
Secretary: Sylvan Corporate Secretarial Intelligence (Pty) Ltd
Designated Advisors: SASFIN Capital (a division of SASFIN Bank Ltd)
Midrand
3 December 2007
Designated Advisor
Sasfin Capital
(a division of Sasfin Bank Ltd)
Date: 03/12/2007 11:22:01 Produced by the JSE SENS Department.
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