| Mon 3 Dec 2007, 17:36 | | AER - Amecor - Condensed consolidated reviewed results for the six months ended |
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AER
AER
AER - Amecor - Condensed consolidated reviewed results for the six months ended
30 September 2007 and cautionary announcement
AMALGAMATED ELECTRONIC CORPORATION LIMITED
("AMECOR")
Incorporated in the Republic of South Africa)
(Registration number 1997/010036/06)
Share code: AER ISIN: ZAE000070587
("Amecor" or "the Company" or "the Group")
CONDENSED CONSOLIDATED REVIEWED RESULTS FOR THE SIX MONTHS ENDED
30 SEPTEMBER 2007 AND CAUTIONARY ANNOUNCEMENT
* Turnover R18,4 million
* Operating profit R9,7 million
* Earnings per share 10,1 cents
* Cash on hand R11,1 million
GROUP INCOME STATEMENT
Six months Six months Twelve months
ended ended ended
30 September 30 September 31 March
2007 2006 2007
(Unaudited) (Unaudited) (Audited)
R000`s R000`s R000`s
Revenue 18 427 17 864 38 000
Earnings before interest, 9 519 9 621 18 518
taxes, depreciation and
amortisation ("EBITDA")
Net interest received 409 170 572
Depreciation and (224) (233) (720)
amortisation
Operating profit before 9 704 9 558 18 370
taxation
Taxation (2 771) (2 451) (4 582)
Profit attributable to 6 933 7 107 13 788
shareholders
Headline earnings per 10,1 10,4 20,1
share (cents)
Earnings per share (cents) 10,1 10,4 20,1
Shares in issue (000`s) 74 046 74 046 74 046
Contingently issuable - (5 250) -
shares
Adjustment for treasury (5 516) (222) (5 516)
shares held
Shares in issue - weighted 68 530 68 574 68 530
average (000`s)
Headline earnings
reconciliation
Earnings attributable to 6 933 7 107 13 788
shareholders
Headline earnings 6 933 7 107 13 788
GROUP BALANCE SHEET
30 September 30 September 31 March
2007 2006 2007
(Unaudited) (Unaudited) (Audited)
R000`s R000`s R000`s
Non-current assets
Property, plant and 3 370 2 141 2 191
equipment
Patents, trade marks 47 346 57 273 46 612
and goodwill
Current assets 22 288 14 998 20 454
Cash 11 054 6 693 11 991
Other current assets 11 234 8 305 8 463
Total assets 73 004 74 412 69 257
Capital and reserves
Shareholders` funds 67 148 69 663 64 658
Non-current liabilities
Deferred taxation 589 - 483
Current liabilities
Accounts payable 5 267 4 749 4 116
Total equity and 73 004 74 412 69 257
liabilities
Tangible net asset value 28,9 18,1 26,3
per share (cents)
Net asset value per share 98,0 101,6 94,4
(cents)
GROUP CASH FLOW STATEMENT
Six months Six months Twelve months
ended ended ended
30 September 30 September 31 March
2007 2006 2007
(Unaudited) (Unaudited) (Audited)
R000`s R000`s R000`s
Cash generated/(utilised) 1 200 (869) 5 991
by operating activities
Net income before tax,
adjusted
for depreciation and 9 928 9 791 20 216
amortisation
Movement in working (1 109) (4 752) (4 873)
capital
Tax paid (3 176) (1 781) (5 225)
Dividends paid (4 443) (4 127) (4 127)
Cash utilised by investing (2 137) (1 098) (4 094)
activities
Cash utilised by financing - (1 438) (4)
activities
Net movements in cash (937) (3 405) 1 893
balances
Cash surplus at beginning 11 991 10 098 10 098
of period
Cash at end of period 11 054 6 693 11 991
STATEMENT OF CHANGES IN SHAREHOLDERS` EQUITY
Distri-
Issued Share butable
capital premium reserve Total
R000`s R000`s R000`s R000`s
Balance at 1 April 2007 685 68 512 (4 539) 64 658
Dividends paid to shareholders - - (4 443) (4 443)
Profit attributable to - - 6 933 6 933
shareholders
Balance 30 September 2007 685 68 512 (2 049) 67 148
GROUP SEGMENTAL ANALYSIS
Amecor Pro- Network
and duction and
corporate and annuity Elimina- Consoli-
office sales income tions dated
R000`s R000`s R000`s R000`s R000`s
Revenue 4 315 13 786 3 891 (3 565) 18 427
Operating profit 1 218 5 080 3 406 - 9 704
before taxation
Profit attributable 1 218 3 305 2 410 - 6 933
to shareholders
Assets 64 764 24 321 7 096 (23 177) 73 004
Liabilities (19 744) (10 711) (471) 25 070 5 856
NOTES TO THE CONDENSED CONSOLIDATED
REVIEWED FINANCIAL STATEMENTS
1. Significant accounting policies
Amecor is a company domiciled in South Africa. The condensed consolidated
reviewed financial statements of Amecor for the six months ended 30 September
2007 comprise the Company and its subsidiaries (together referred to as the
"Group").
The condensed consolidated reviewed financial statements were authorised for
issue by the directors on 29 November 2007.
1.1 Statement of compliance
The condensed consolidated reviewed financial statements have been prepared in
accordance with the recognition and measurement requirements of International
Financial Reporting Standards ("IFRS") and the presentation and disclosure
requirements of IAS 34 - Interim Financial Reporting and the South African
Companies Act.
1.2 Basis of preparation
The condensed consolidated reviewed financial statements are prepared on the
historical cost basis, except for financial instruments which are stated at fair
value, where applicable, in terms of IAS 32 - Financial Instruments: Disclosure
and Presentation and IAS 39 - Financial Instruments: Recognition and
Measurement.
The preparation of interim financial statements in conformity with IAS 34 -
Interim Financial Reporting requires management to make judgements, estimates
and assumptions that affect the application of policies and reported amounts of
assets and liabilities, income and expenses. The estimates and associated
assumptions are based on historical experience and various other factors that
are believed to be reasonable under the circumstances, the results of which form
the basis of making the judgements about carrying value of assets and
liabilities that are not readily apparent from other sources. Actual results may
differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period, or in the period
of the revision and future periods if the revision affects both current and
future periods.
The accounting policies have been applied consistently by Group companies and
have been applied consistently to all periods presented in these condensed
consolidated reviewed financial statements.
2. Review of results
Mazars Moores Rowland has signed an unqualified review opinion on the interim
financial statements, as required by the JSE. These financial statements have
been approved by the board of directors ("Board") and abridged for the purposes
of this report. The auditors have reviewed the abridged financial statements.
Both the auditors` opinion and the abridged interim financial statements are
available for inspection at the Company`s registered office as well as being
posted on the Company`s website.
3. Commentary
Amecor and its subsidiaries` principal businesses consist of the supply of the
following products and services:
* digital long range radio transmitters;
* computerised base stations, transmitters and intelligent data repeaters;
* high speed data radio networks;
* guard monitoring units;
* radio panic systems; and
* the ownership and operation of licensed data radio networks throughout South
Africa.
Product development
The appointments of a Chief Radio Frequency ("RF") Technical Officer and a
Software Engineer have added substance to the research and development
initiatives and have accelerated the design and development of new surface mount
designed products.
Capital commitments
The Group has committed to product development costs in the sum of approximately
R750 000 which will be incurred evenly over the remainder of the financial year.
The improved research and development laboratories and upgrading of existing
surface mount design ("SMD") equipment of approximately R500 000 will be funded
out of internal cash flows. Capital expenditure in the sum of R1,4 million was
incurred in July 2007, and the new production line is currently being
commissioned.
Contingently issuable shares
The proposed arbitration, as reported in earlier announcements, has not yet been
finalised. It is envisaged that this will occur in the first half of 2008.
Dividends
No interim dividend has been declared.
Outlook
Demand for the Group`s products and services remains steady, and the acceptance
of the new products in the market has been encouraging. The board expects
continued earnings and profitability in the second half of the year in line with
its budgets and organic growth targets.
CAUTIONARY ANNOUNCEMENT
Amecor shareholders are advised that the Company has entered into negotiations,
which if successfully concluded may have a material effect on the share price of
Amecor. Accordingly shareholders are advised to exercise caution when dealing in
Amecor shares until a further announcement is made.
On behalf of the Board
HS Courtney D Alexander
Chairman* Chief Executive
Johannesburg
03 December 2007
Directors
P van Niekerk*, DH Alexander, KA Colley,
HS Courtney (Chairman)*, M Noge**
* non-executive, ** independent non-executive
Transfer Secretaries
Link Market Services (Pty) Limited
11 Diagonal Street, Johannesburg, 2001
(PO Box 4844, Johannesburg, 2000)
Registered office
2nd Floor, Moores Rowland House
5 St Davids Place, Parktown, 2193
(PO Box 669, Johannesburg, 2000)
Sponsor
Macquarie First South Corporate Finance Block C,
Macquarie First South Office Park
181 Jan Smuts Avenue, Parktown North, 2193
(PO Box 1773, Parklands, 2121)
Visit us at www.amecor.com
INNOVATION THROUGH TECHNOLOGY
Date: 03/12/2007 16:37:01 Produced by the JSE SENS Department.
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