| Thu 17 Apr 2008, 14:14 | | DTH - DVT- Reviewed results for the twelve months |
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DTH
DTH
DTH - DVT- Reviewed results for the twelve months ended 29 February 2008
DYNAMIC VISUAL TECHNOLOGIES HOLDINGS LIMITED
(Registration number 2004/016984/06)
Share Code: DTH
ISIN:ZAE000109070
("DVT" or "the group")
www.DVT.co.za
REVIEWED RESULTS FOR THE TWELVE MONTHS ENDED 29 FEBRUARY 2008
HIGHLIGHTS
- Revenue increased by 61,6% to R58,6 million
- Operating profit increased by 87,6% to R8,1 million
- Earnings increased by 100,3% to R6,0 million
- Assets increased by 133,2% to R33,4 million
- Cash increased by R10,1 million
CONSOLIDATED INCOME STATEMENT
for the year ended 29 FEBRUARY
2008 2007
Revenue 58 601 108 36 269 249
Cost of sales (764 097) (1 323 506)
Gross profit 57 837 011 34 945 743
Other income 261 113 443 549
Operating expenses (49 974 920) (31 058 175)
Operating profit 8 123 204 4 331 117
Investment revenue 455 332 33 868
Income from equity accounted investments 92 196
Finance costs (1 571) (23 721)
Profit before taxation 8 576 965 4 433 460
Taxation (2 409 656) (1 264 586)
Profit for the year 6 167 309 3 168 874
Attributable to:
Equity holders of the parent 6 029 228 3 009 507
Minority Interest 138 081 159 367
Weighted number of shares in issue 33 027 568 137 982
Earnings per share (cents)
- Basic 18,3 2037,2
- Diluted 18,0 2037,2
- Headline 18,0 2467,7
- Diluted headline 17,8 2467,7
Dividend per share 0,0 0,0
CONSOLIDATED BALANCE SHEET
for the year ended 29 FEBRUARY 2008 2007
ASSETS
Non-Current Assets 11 054 370 6 906 017
Property, plant and equipment 886 639 773 974
Goodwill 9 751 446 5 839 502
Intangible assets 280 640 142 767
Deferred tax 135 645 149 774
Current Assets 22 332 878 7 411 484
Trade and other receivables 10 515 194 5 652 826
Cash and cash equivalents 11 817 684 1 758 658
Total Assets 33 387 248 14 317 501
EQUITY AND LIABILITIES
Capital and reserves 25 495 735 9 774 836
Share capital 13 995 100 4 255 628
Reserves 71 836
Retained income 11 190 544 5 161 315
Minority interest 238 255 357 893
Current liabilities 7 891 513 4 542 665
Other financial liabilities 253 535
Current tax payable 1 374 882 769 171
Operating lease liability 43 583 42 479
Trade and other payables 5 523 278 2 877 800
Deferred income 899 771 549 680
Dividend payable 50 000 50 000
Total Equity and Liabilities 33 387 248 14 317 501
GROUP STATEMENTS OF CHANGES IN EQUITY
for the year ended 29 FEBRUARY
Ordinary Share Reserves Retained
Shares Premium income
Balance at 01 March 2006 1 000 2 910 141
Profit for the year 3 009 507
Issue of shares 627 4 254 253
Share buy-back (252)
Minority on consolidation
Dividends (758,333)
Balance at 28 February 2007 1 375 4 254,253 5 161 315
Share buy-back (22 478) (3 209 084)
Capitalization of share premium 198 470 (198 470)
Issue of shares on extraction minority 163 2 556 468
Issue of new shares 72 470 14 421 604
Capitalization of listing expenditure (1 444 652)
Treasury shares held by Share Trust (13 122) (2 621 895)
Minority on acquisition
Profit for the year 6 029 229
Derecognising of minority interest
Share based payment 71 836
Balance at 29 February 2008 236 878 13 758 222 71 836 11 190 544
Minority Total
interest equity
Balance at 01 March 2006 2 911 141
Profit for the year 159 367 3 168 874
Issue of shares 4 254 880
Share buy-back (252)
Minority on consolidation 248 526 248 526
Dividends (50 000) (808 333)
Balance at 28 February 2007 357 893 9 774 836
Share buy-back (3 231 562)
Capitalization of share premium
Issue of shares on extraction minority 2 556 631
Issue of new shares 14 494 072
Capitalization of listing expenditure (1 444 652)
Treasury shares held by Share Trust (2 635 017)
Minority on acquisition 189 838 189 838
Profit for the year 138 081 6 167 310
Derecognising of minority interest (447 557) (447 557)
Share based payment 71 836
Balance at 29 February 2008 238 254 25 495 735
CONSOLIDATED CASH FLOW STATEMENTS
for the year ended 29 FEBRUARY
2008 2007
Cash receipts from customers 53 738 740 34 764 727
Cash paid to suppliers and employees (46 658 437) (29 241 843)
Cash generated from operations 7 080 303 5 522 884
Interest income 455 332 33 868
Finance costs (1 571) (23 721)
Tax paid (1 863 677) (2 034 979)
Net cash from operating activities 5 670 387 3 498 052
Cash utilised in investing activities (5 013 699) (447 115)
Additions to property, plant and equipment (438 494) (296 300)
Proceeds from disposal 16 287 10 375
Purchase of intangible (295 606) (38 997)
Acquisition of business (4 295 886) (655 540)
Proceeds from sale of part of subsidiary 533 347
Cash generated/(utilised) from financing
Activities 9 402 338 1 320 365)
Proceeds on share issue 235 503 375
Repayment of other financial liabilities (337 134) (576 792)
Repayment of shareholders loan (4 239 868)
Dividends paid (758,333)
Proceeds from share premium 9 503 969 4 254 253
Cash surplus for the year 10 059 026 1 730 572
Cash and cash equivalents at the beginning
of the year 1 758 658 28 086
Cash and cash equivalents at end of the year 11 817 684 1 758 658
SEGMENTAL ANALYSIS
for the twelve months ended 29 February
Product Services Central Ops
Turnover 5 329 541 53 271 567 -
EBITDA 215 854 8 661 045 (222 785)
Depreciation and Amortization (95 282) (434 666) (963)
Net interest 9 834 162 019 281 908
Profit before tax 130 406 8 388 399 58 160
Tax (4 010) (2 405 646) -
Profit after tax 126 396 5 982 753 58 160
OVERVIEW
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, Call Centre solutions and Content Management 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.
Basis of Preparation
The results for the 12 months ended 28 February 2008 have been prepared in
accordance with International Financial Reporting Standards, the Listings
Requirements of the JSE Limited and the Companies Act in South Africa. The
accounting policies used are consistent with those used in the preparation of
the annual financial statements for the year ended 28 February 2007.
The results for the 12 months ended 28 February 2008 have been reviewed by the
group`s auditors, Greenwoods Chartered Accountants, and their review opinion is
available for inspection at the group`s registered office.
Financial Overview
The Group restructured in preparation for listing as fully disclosed in the
prospectus dated 29 October 2007, resulting in DVT owning 100% of its existing
subsidiaries and associates.
- Revenue for the period increased by 61,6% to R58,6 million, and was due to a
strong organic growth and through the effects of the restructuring exercise
noted above.
- Operating profits increased by 87,6%, at an increased operating margin of
13,9% (11,9% 2007).
- The Group achieved basic earnings of R6,0 million or 18,3 cents per share,
representing a growth of 100,3% year on year. The earnings achieved, exceeded
the forecasts as published in the DVT Prospectus by 2,7%.
- Total assets in the Group increased significantly from R14,3 million to R33,4
million which translates into a Net Asset Value per share of 51,0 cents and a
Tangible Net Asset Value per share of 30,7 cents.
Operational Review
Corporate Activity
Whilst our primary growth this year has been organic, DVT listed on AltX during
November 2007 and raised a net R12,5 million for the purposes of growth through
acquisition and to underpin the working capital requirements of strong organic
growth that the Group has achieved, and continues to achieve. The listing was
successful and the company was well received by the investor community. On 1
December 2007, DVT concluded a minor acquisition, purchasing 66,7% of the Issued
Share Capital of Offline Digital (Pty) Limited in line with our stated strategy
of increasing our product business portfolio.
Human Resources
We believe that the listing of the company has raised the Group`s profile as an
employer of choice, as well as improved its prospects of attracting and
retaining the best skills in the market.
Black Economic Empowerment
30,7% of DVT`s shareholding is black-controlled. The group continues with its
efforts to improve all aspects on their BEE scorecard and is in the process of
obtaining accreditation in accordance with the BEE Act.
Market Conditions
Market conditions for the year under review have been buoyant, and DVT expects
it`s current customer demand to continue to fuel organic growth in all areas of
the business.
Prospects
The Group is well positioned, both operationally and strategically to deliver
strong organic growth for 2009. DVT continues to embark on its strategy of
expanding through acquisition, allowing the business to diversify into related
and complementary technology and service areas. After considering current market
conditions, management are confident of meeting the revenue and earnings targets
for the year ending 28 February 2009 as stated in its prospectus.
Corporate Governance
The group recognises the need to conduct its business with integrity,
transparency and equal opportunity and subscribes to the spirit of good
corporate governance as set out in the King II Report.
Board of Directors
Mr A De Klerk was appointed as Group Chief Operating Officer on 1 December 2007.
Subsequent Events
No events material to the understanding of the report have occurred in the
period between the period-end date and the date of the report.
Dividends
Given the growth prospects and strategy of DVT, it is anticipated that earnings
generated by the group will be re-invested to fund future growth and
development. Therefore, the Board does not propose a dividend in respect of the
2008 financial year. It is the intention of the company to periodically consider
the dividend policy and to take account of prevailing circumstances and future
cash requirements in determining whether it would be appropriate to pay a
dividend in respect of a particular financial reporting period.
Annual Report
The company`s 2008 annual report, including a notice of the annual general
meeting will be posted to shareholders in due course. A further SENS
announcement providing salient information relating to the posting of the Annual
report and notice of Annual General Meeting will be published.
For and on behalf of the Board
H Ratshefola C Wilkins G Fowler
Chairman Chief Executive Officer Chief Financial Officer
Transfer secretaries:
Link Market Services (Pty) Ltd
11 Diagonal Street, Johannesburg, 2001
Company secretary and registered office:
G Fowler
Vistar Junxion, Ground Floor, Marlborough Gate, Hyde Lane, Sandton, 2199
Directors:
H Ratshefola (Chairman)*, C Wilkins (Group CEO), G Fowler (CFO), A de Klerk
(COO), D Hughes*, J Mamogale*
* Non-executive directors
Designated Advisor:
PSG Capital (Proprietary) Limited
Date: 17/04/2008 14:14:48 Produced by the JSE SENS Department.
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