| Mon 31 Mar 2008, 9:00 | | DYM - Dynamic Cables - Reviewed Results for the twelve months ended 31 December |
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DYM
DYM
DYM - Dynamic Cables - Reviewed Results for the twelve months ended 31 December
2007
DYNAMIC CABLES RSA LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/001807/06)
Share code: DYM ISIN: ZAE000028270
("Dynamic Cables" or "the company")
Reviewed Results for the twelve months ended 31 December 2007
Abridged Group Income Statement
for the period ended 31 December 2007
Reviewed Audited
12 months 12 months
31 December 31 December
2007 2006
R`000 R`000
Turnover 130 132 160 329
Gross profit 41 220 53 300
Other income 5 911 487
Operating expenses (29 690) (36 542)
Operating profit 17 441 17 245
Finance costs (2 660) (1 930)
Investment income 950 34
Profit before taxation 15 731 15 349
Income tax expense (6 365) (5 543)
Profit for the period 9 366 9 806
Attributable to:
Equity holders of the company 9 366 9 806
9 366 9 806
Earnings per share for profit attributable to
the equity holders of the Group during the period
(expressed as cents per share)
Basic and headline earnings per share 11.9 14.7
Abridged Group Balance Sheet
as at 31 December 2007
Reviewed Audited
31 December 31 December
2007 2006
R`000 R`000
ASSETS
Non-current assets 39 650 19 832
Property, plant and equipment 8 392 10 597
Investment property 2 609 -
Other intangible assets 9 235 9 235
Other financial assets 18 326 -
Deferred tax asset 1 088 -
Current assets 68 115 67 377
Inventories 23 252 19 312
Loans to shareholders 8 948 5 034
Other financial assets 526 3 333
Current tax receivable 666 930
Trade and other receivables 14 725 26 404
Cash and cash equivalents 19 998 12 364
Total assets 107 765 87 209
EQUITY
Capital and reserves attributable to the
Company`s equity holders 58 915 34 860
Share capital and premium 118 763 104 074
Retained earnings (59 848) (69 214)
LIABILITIES
Non-current liabilities 6 510 3 832
Borrowings 3 576 2 616
Deferred tax liability 2 934 1 216
Current liabilities 42 340 48 517
Trade and other payables 26 621 30 530
Current income tax liabilities 15 076 16 050
Borrowings 601 834
Operating lease liability - 433
Bank overdraft 42 670
Total liabilities 48 850 52 349
Total equity and liabilities 107 765 87 209
Abridged Group Cash Flow Statement
for the period ended 31 December 2007
Reviewed Audited
12 months 12 months
31 December 31 December
2007 2006
R`000 R`000
Cash flow from operating activities 15 085 10 562
Operating profit before working capital changes 19 791 15 348
Working capital changes 3 650 (80)
Cash generated by operations 23 441 15 268
Interest received 950 34
Interest paid (2 660) (1 930)
Taxation paid (6 646) (2 810)
Cash flow from investing activities (18 512) (5 305)
Purchase of property, plant and equipment (1 621) (6 895)
Proceeds from sale of PPE 1 237 927
Purchase of investment property (2 609) -
Sale of other investments - 1 006
Purchase of financial assets (15 519) (343)
Cash flow from financing activities 11 689 (354)
Proceeds from non-current borrowings 913 2 619
Finance lease payments 2 361
Repayments of current borrowings (3 913) (5 334)
Proceeds on share issue 14 689 -
Net increase in cash 8 262 4 903
Cash surplus at the beginning of the period 11 694 6 791
Cash resources at the end of the period 19 956 11 694
Statement of Changes in Equity
for the period ended 31 December 2007
Share Share Retained
capital premium earnings Total
Reviewed R`000 R`000 R`000 R`000
Balance at 1 January 2007
(Audited) 3 247 100 827 (69 214) 34 860
Profit for the year - - 9 366 9 366
Issue of shares 674 14 015 - 14 689
Balance at 31 December 2007 3 921 114 842 (59 848) 58 915
Segmental Information
for the period ended 31 December 2007
Profit
Revenue before tax Assets Liabilities Total
Primary
segment R`000 R`000 R`000 R`000 R`000
Engineering 63 889 5 673 28 642 24 607 122 811
Cabling and
other 66 243 6 584 79 123 24 243 176 193
130 132 12 257 107 765 48 850 299 004
Other - 3 474 - - 3 474
Total 130 132 15 731 107 765 48 850 302 478
Supplementary Information
for the period ended 30 December 2007
Reviewed Audited
12 months 12 months
31 December 31 December
2007 2006
Shares in issue (000`s) 78 421 66 800
Profit attributable to ordinary shareholders
(R`000) 9 366 9 806
Earnings per share and headline earnings per
share (cents) 11.9 14.7
Accounting Policies
The abridged report complies with International Accounting Standard 34 -
Interim Financial Reporting, as well as with Schedule 4 of the South African
Companies Act and disclosure requirements of the JSE Limited`s Listing
requirements.
The abridged report has been prepared using accounting policies that comply
with International Financial Reporting Standards (IFRS). The accounting
policies are consistent with those applied in the financial statements for the
year ended 31 December 2006.
Auditors` Review Opinion
The results have been reviewed by Grant Thornton whose unmodified review report
is available for inspection at the company`s registered office.
Commentary
We wish to comment on the reviewed results achieved by the company and its
subsidiaries for the year ended 31 December 2007.
It is noted that we achieved a growth in headline earnings of 60% in our
previous trading year and that despite lower turnover in the reported financial
year, we have been able to achieve a relatively consistent profit after tax for
the current period of R9.3 million versus R9.8 million for the previous
comparable period. Included in other income is a profit on the disposal of the
company`s remaining interest in Grand Parade Investments Ltd of R 3.4 million.
We expect to continue with our previous 10% year on y ear growth from 2008
onwards.
The growth in expenditure of our main customer base slowed down in 2007
compared to 2006. Our biggest customers decreased their year on year CAPEX
expenditure resulting in a substantial drop in turnover for the company and w e
decided to exit from our shelving infrastructure business due to margin
pressures.
Our specialist cable division continues to exploit opportunities provided by
the infrastructure expansion. Our copper connectivity products continued to be
sought after by our telecom industry customers.
We participated in the infrastructure expansion of the country`s locomotive and
rolling stock by supplying specialised cable to a new customer base.
Our engineering division has developed new IT and carrier class cabinets and
has sold these to the major customers in the telecoms industry. We have
expanded on the range of products for both exchange and outside plant telecom
transmission and access markets.
As previously announced, our offer to GPI shareholders was ultimately
terminated in the light of the proposed Dynamic group`s inability to meet the
JSE Listing Requirements subsequent to the proposed GPI transaction. Your Board
was of the opinion that it could not justify placing the continued listing of
Dynamic at risk in order to make further acquisitions.
Consequently, Dynamic will continue to focus on maximising value in its
existing businesses and is currently in the process of identifying growth
opportunities within the sector in which we operate.
For and behalf of the board
T D Rai R J McGregor
Chief Executive Officer Company Secretary
Cape Town
28 March 2008
Directors: S L Rai (Acting Chairman)*, T D Rai (Chief Executive), H Tokalia**,
M J I Brown**
* Non Executive
** Independent non-executive
Company Secretary: Rorden McGregor
Registered Office: 2nd Floor, Sunclare Building, 21 Dreyer Street,
Claremont, 7708
Transfer Secretaries: Computershare Investor Services (Pty) Limited
Sponsor: Sasfin Capital, a division of Sasfin Bank Limited
Date: 31/03/2008 09:00:40 Produced by the JSE SENS Department.
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