| Tue 6 May 2008, 16:15 | | TLM - Telemasters Holdings Limited - Interim resul |
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TLM
TLM
TLM - Telemasters Holdings Limited - Interim results for the six month period
ended 31 March 2008
TELEMASTERS HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2006/015734/06)
Share code: TLM & ISIN Number: ZAE000093324
("Telemasters" or "the Company")
INTERIM RESULTS FOR THE SIX MONTH PERIOD ENDED 31 MARCH 2008
INCOME STATEMENT
Unaudited Unaudited
6 months 6 months
ended ended
31 March 31 March
2008 2007
R R
Revenue 82,199,921 72,252,635
Cost of sales - -
69,065,177 59,968,886
Gross profit 13,134,744 12,238,749
Other income - 2,500
Investment income 665,474 130,308
Gross income 13,800,218 12,416,557
Operating expenses -6,381,424 -4,570,289
Finance costs -182,813 -
Profit before taxation 7,235,981 7,846,268
Taxation -2,526,776 -2,275,418
Net profit for the period 4,709,205 5,570,850
Number of shares in issue (`000) 42,000,000 42,000,000
Headline earnings per share (cents) 11,21 13.26
Earnings per share (cents) 11,21 13.26
BALANCE SHEET
Unaudited Unaudited
at at
31 March 31 March
2008 2007
R R
ASSETS
Non-current assets 8,161,575 7,148,909
Intangible assets 275,791 217,109
Property, plant and equipment 7,885,784 6,931,800
Current assets 27,809,027 21,912,365
Trade and other receivables 15,930,254 9,745,504
Cash and cash equivalents 11,878,773 12,166,861
Total assets 35,970,602 29,061,274
EQUITY AND LIABILITIES
Total equity 16,190,789 11,541,312
Share capital 4,200 4,200
Share premium 5,503,859 5,966,262
Retained earnings 10,682,730 5,570,850
Non-current liabilities 823,947 575,075
Deferred tax 81,287 -
Instalment sale agreements 742,660 575,075
Current liabilities 18,955,866 16,944,887
Current portion of
long term liabilities 516,240 253,151
Current tax payable 2,026,075 2,275,418
Trade and other payables 16,413,551 14,416,318
Total equity and liabilities 35,970,602 29,061,274
Net asset value per share (cents) 38.54 27.48
Net tangible asset value
per share (cents) 37.89 26.96
CASH FLOW STATEMENT
Cash flows from operating activities
Cash generated from operations 3,726,143 13,570,202
Finance costs -182,813 -
Tax paid -4,860,830 -
Net cash from operating activities -1,317,500 13,570,202
Cash flows from investing activities
Purchase of property, plant and equipment -2,279,781 -8,081,232
Intangible assets acquired - -251,105
Investment income 665,474 130,308
Net cash from investing activities -1,614,307 -8,202,029
Cash flows from financing activities
Proceeds on share issues - 5,970,462
Instalment sale agreements 519,655 828,226
Dividends paid -5,040,000 -
Net cash from financing activities -4,520,345 6,798,688
Total cash movement for the period -7,452,152 12,166,861
Cash at beginning of period 19,330,925 -
Total cash at end of the period 11,878,773 12,166,861
STATEMENT OF CHANGES IN SHAREHOLDERS`EQUITY
Balance 23 May 2006 on incorporation -
Share capital and share premium issued 5,970,462
Net profit for the period 5,570,850
Balance at 31 March 2007 11,541,312
Share issue & listing costs applied against share -462,403
premium
Dividends paid 30 November 2007 -5,040,000
Net profit for the period ended 31 December 2007 5,442,675
Net profit for the period ended 31 March 2008 4,709,205
Balance at 31 March 2008 16,190,789
COMMENTARY
The directors present the unaudited results for the six month period ended 31
March 2008.
1. FINANCIAL RESULTS
1.1 Statement of compliance and basis of preparation
The consolidated interim financial statements for the half year
ended 31 March 2008 have been prepared in accordance with International
Financial Reporting Standards and are in compliance with IAS 34, Interim
Financial Reporting. These results have not been reviewed or audited by the
Company`s auditors.
1.2 Commentary
The Revenue indicates an increase of 13.76% compared with the comparative
unlisted period. Earnings for the second quarter of the 2008 year amount to
R3,456,788 compared to the first quarter results of R1,252,417. This prior year
interim 6 months period reflects the trading results of the company prior to
listing and thus the operating expenditure in that period excludes the
additional costs incurred by the company in order to confirm with the regulatory
and corporate governance requirements of a listed entity. Despite the additional
costs the current 6 months results reflect a net profit per share of 11,21 cents
per share after taking into account the STC paid on the maiden annual dividend
declared at 30 November 2007. The increase of 13.76% Revenue in the current
period is a result of purely organic growth by the company and includes no
additional revenue from any of the proposed acquisitions which are in the
process of being finalised. The company remains cash positive with a good
liquidity position. Although R9,9m was disbursed through tax & full -year
dividends which were not done in the previous period, cash is comparatively
lower by only 2,37%. The company remains un-geared, profitable and cash
generative.
1.3 Dividends
Notice is hereby given that an interim cash dividend of 6 cents per share ("the
dividend") has been declared payable to shareholders recorded in the share
register of the company at the close of business on Friday, 30 May 2008.
The dates relating to the dividend, which the directors have declared, are as
follows:
Declaration date: Publication date Tuesday, 06 May 2008
Last day to trade Friday, 23 May 2008
Securities start trading ex dividend Monday, 26 May 2008
Record date to determine who receives the dividend Friday, 30 May 2008
Pay date: Electronic transfer of funds or cheques
posted in respect of certificated shareholders. Monday, 2 June 2008
Dematerialised shareholders will have their accounts
at their CSDP or broker credited on Monday, 2 June 2008
Share certificates may not be dematerialised or rematerialised during the period
Friday, 23 May 2008 to Friday, 30 May 2008, both days inclusive.
2. LITIGATION
There are currently no legal or arbitration proceedings against the Company
(including any proceedings which are pending or threatened) of which the Company
is aware which may have, or have had in the 12 months preceding the date of this
report, a material effect on the consolidated position of the Company.
3. SUBSEQUENT EVENTS
There have been no significant events after the period end.
4. SHARE CAPITAL
No changes to Share Capital occurred during the period.
5. OPERATIONAL REVIEW AND OUTLOOK
Trading conditions continue to be good and a Revenue enhancement program has
been implemented which has had a positive impact on the increase in Revenue. The
operational effects of the acquisitions which are being finalised will have a
substantial impact on the company`s future earnings. The 100% annuity revenue
stream of the company and low operating costs leave the board confident of the
operating results for the coming period and a continued resolve to maintain a
high dividend cover for the benefit of shareholders.
For and on behalf of the Board
MB Pretorius BR Topham
Executive Chairman Chief financial officer
06 May 2008
Directors: ME Moji*, MB Pretorius, BR Topham, IG Bekker (* non-executive)
Company secretary: BR Topham
Registered address: Equity Estate Building 2, Masters House, Charles de Gaulle
Crescent, Highveld Park Ext 9, Centurion, (P.O Box 2887, Montana Park, 0159)
Transfer secretaries: Computershare Investor Services Limited,70 Marshall
Street, Johannesburg, 2001(PO Box 61051, Marshalltown,2107)
Designated Advisor: River Group
Website: www.telemasters.co.za
Date: 06/05/2008
Date: 06/05/2008 16:15:01 Produced by the JSE SENS Department.
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