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ALM
ALM
ALM - Alliance Mining Corporation - Audited Condensed Financial Results For The
Year Ended 29 February 2008 And Renewal Of Cautionary Announcement
Alliance Mining Corporation Limited
(Previously Alliance Data Corporation Limited)
(Incorporated in the Republic of South Africa)
(Registration Number: 1997/013402/06)
"(Alliance Mining" or `the company")
Share Code: ALM
ISIN Code: ZAE000104733
AUDITED CONDENSED FINANCIAL RESULTS FOR THE YEAR ENDED 29 FEBRUARY 2008 AND
RENEWAL OF CAUTIONARY ANNOUNCEMENT
Audited Audited
CONDENSED GROUP BALANCE SHEET 29 Feb 2008 28 Feb 2007
R`000 R`000
ASSETS
Non current assets 187 793 95 807
Property, plant and equipment 59 951 11 531
Intangible Assets 11 854 11 043
Goodwill 89 334 56 290
Financial receivables 26 654 16 943
Current assets 87 163 37 544
Inventory 21 521 5 975
Trade and other receivables 54 787 22 824
Work in progress - 1 164
Cash and cash equivalents 10 855 7 581
Total assets 274 956 133 351
EQUITY AND LIABILITIES
Shareholders Funds 238 197 77 202
Share capital and premium 126 713 43 113
Distributable reserves 111 484 34 089
Non current liabilities 5 963 6 527
Deferred taxation 3 727 4 192
Long term liabilities 2 236 2 335
Current liabilities 30 796 49 622
Taxation 25 423 9 353
Capital Commitments - 31 000
Trade and other payables 3 895 8 413
Short term portion of Long term 1 478 856
liabilities
Total equity and liabilities 274 956 133 351
Shares in issue at period end 65 000 50 000
(`000)
Net asset value per share (cents) 366.46 154.40
Tangible net asset value per share 210.78 19.74
(cents)
Fully diluted information
Shares in issue at period end 72 333 57 333
(`000)
Net asset value per share (cents) 329.31 134.66
Tangible net asset value per share 189.41 17.21
(cents)
Audited Audited
CONDENSED GROUP INCOME STATEMENT 29 Feb 2008 28 Feb 2007
R`000 R`000
Revenue 312 122 157 647
Operating expenses (201 843) (132 941)
Other income 1 369 4 597
Profit before finance costs and 111 648 29 303
depreciation
Finance costs - -
Investment income 711 59
Depreciation and amortisation (2 675) (1 425)
Profit before taxation 109 684 27 937
Taxation (28 896) (7 773)
Net profit for the period 80 788 20 164
Earnings per share (cents) (before 135.36 54.7
shares to be issued)
Headline earnings per share 135.36 54.7
(cents) (before shares to be
issued)
Weighted average number of shares 59 694 36 833
(before shares to be issued)
(`000)
Earnings per share information:
(including shares to be issued)
Earnings per share (cents) 120.53 45.7
Headline earnings per share 120.53 45.7
(cents)
Weighted average shares in issue 67 027 44 122
(including shares to be issued)
(`000)
Audited Audited
CONDENSED GROUP CASH FLOW 29 Feb 2008 28 Feb 2007
STATEMENT R`000 R`000
Cash flows from operating 41 534 7 403
activities
Cash flows from investing (13 520) 6 577
activities
Cash flows from financing (24 740) (8 470)
activities
Net movement in cash and cash 3 274 5 510
equivalents
Cash and cash equivalents at 7 581 2 071
beginning of year
Cash and cash equivalents at end 10 855 7 581
of year
CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY
Share Share Shares Distribu-
Capital Premium to be table Total
issued reserve
R`000 R`000 R`000 R`000 R`000
Balance as at 22 2 015 - 13 925 15 962
28 February
2006
Net profit for - - - 20 164 20 164
the year
Share issue 30 42 220 - - 42 250
Share buy back (2) (1 173) - - (1 175)
Balance as at 50 43 062 - 34 089 77 201
28 February
2007
Net profit for - - - 80 788 80 788
the year
Share issue 15 61 586 - - 61 601
Deemed value - - 21 999 - 21 999
of shares to
Thanda Bantu
Dividends paid - - - (3 392) (3 392)
Balance as at 65 104 648 21 999 111 485 238 197
29 February
2008
Segmental Reporting
Audited 29 February 2008
R`000
Income Statement Time and Mining Total
Access
Revenue 39 220 272 902 312 122
Net profit after tax 8 571 72 217 80 788
Audited 29 February 2008
R`000
Balance Sheet Time and Mining Total
Access
Current assets 17 016 85 147 102 163
Non current assets 81 595 11 864 93 459
Goodwill - 67 334 67 334
Non current liabilities 11 419 4 544 15 963
Current liabilities 10 529 20 267 30 796
OVERVIEW
The board of directors of Alliance Mining is pleased to present the
audited financial results of the group for the year ended 29
February 2008.
NATURE OF THE BUSINESS
Alliance Mining specialises in providing services and products
mainly to the mining industry.
HIGHLIGHTS
The group generated R80,8m after tax profits for the year ended 29
February 2008 (R20,2m for year ended 28 February 2007).
Earnings per share increased to 135,4c (54,7c in the previous year)
for the year ended 29 February 2008.
Net assets increased to R238,2m at 29 February 2008 from R77,2m at
28 February 2007.
BUSINESS REVIEW AND PROSPECTS
Alliance Mining, now an integrated mining company, began as a
specialist software supplier which focused on the development,
installation and support of HR and payroll solutions for customers
within the mining industry. The initial `data component` now makes
up 11% of the company with the remaining 89% focused on mining and
mining services. Due to the change in the composition of the
company, its name changed to Alliance Mining Corporation Limited in
November 2007.
Listing on AltX enabled Alliance Mining to expand its mining and
mining related services substantially. Its subsidiaries are Alliance
Data, the original company that specialises in access control,
payroll systems and inventory control for mining clients; Sindele
Mining, a contract mining business; Rockcap a company with an
international client base specialising in grouting in the mines. The
grouting `secret formula` sets and fortifies quickly enabling mine
ceilings to be reinforced.
Thanda Bantu is a project engineering company that outsources
mechanical and civil expertise and Mel Fix & Supplies installs
electrical and electrical-rail to mining clients. Alliance Mining`s
latest acquisition, Galvrite, galvanises steel with zinc which
reinforces it and protects against corrosion for use in the mining
and construction industries. The demand for galvanised steel has
recently increased substantially due to the construction boom and
the growing platinum mining industry. Alliance Mining`s last
division, Omphamba Human Resources supplies the other divisions and
the mining industry with skilled labourers, including engineers. The
service incorporates all labour aspects including labour relations
and contract hiring.
BUSINESS COMBINATIONS
Alliance Mining acquired 100% of the issued share capital in
Galvrite (Pty) Ltd on 1 September 2007 for R16m. Goodwill of R14m
was raised following the cash payment for the acquisition. A
further R19m was raised following the final cash payment to the
shareholders of Thanda Bantu for its acquisition in 2006.
FINANCIAL REVIEW
Income Statement
Turnover increased to R312m from R157m in the previous year due to
increased production and additional contracts concluded by Thanda
and Sindele, as well as the acquisition of Galvrite. This translated
to an increase of 98% year on year.
Operational efficiencies contained operational expenditure to a 52%
increase year on year.
Balance Sheet
Capital expansion within the mining operations and the acquisition
of Galvrite resulted in the increase in property, plant and
equipment of R48m. Furthermore, Thanda, expanded its operations by
way of a new factory in Carletonville and achieved management`s
first goal in terms of future expansion.
Trade receivables increased by R33m and inventory by R14m in line
with the increased turnover in mining operations.
Capital commitments of R31m, pertaining to the Thanda acquisition,
as reflected at 28 February 2007, have been converted to equity and
cash as at 29 February 2008. (Also see Share Capital note)
SHARE CAPITAL
Share Capital increased following a general issue of 10m ordinary
shares for cash at R4,60 per share on 11 September 2007, as well as
the final 7,3m shares to be issued to the shareholders of Thanda
Bantu in June 2008, as profit warranties were met.
PROSPECTS
Management anticipates further growth and acquisitions in the mining
and galvinising divisions.
BASIS OF PREPARATION OF THE AUDITED RESULTS
Statement of compliance
The condensed financial statements comprise a consolidated balance
sheet at 29 February 2008, a consolidated income statement, a
consolidated statement of changes in equity and a summarised
consolidated cash flow statement for the year ended 29 February
2008. The condensed financial statements have been prepared in
accordance with the recognition and measurement criteria of
International Financial Reporting Standards ("IFRS") and the
presentation and disclosure requirements of IAS34, Interim Financial
reporting, JSE Listings Requirements and South African Companies
Act.
The accounting policies applied for the year are consistent with
those of the prior year.
The condensed financial statements were approved by the Board of
Directors on 28 May 2008
Basis of measurement
The condensed financial statements have been prepared on the
historical cost basis.
AUDIT OPINION
The annual financial statements have been audited by Van Dyk &
Associates. The auditors` unqualified audit report is available for
inspection at the company`s registered office.
CORPORATE GOVERNANCE
The group subscribes to the principles of, and implements where
possible, the recommendations of the King II Code on Corporate
Governance.
CASH DIVIDEND TO SHAREHOLDERS
A final dividend of 40 cents per share has been declared to
shareholders recorded in the books of the company at the close of
business on Friday, 01 August 2008. The last date to trade cum
dividend will be Friday, 25 July 2008 and the shares will trade ex
dividend from the commencement of business on Monday, 28 July 2008.
The dividend will be paid on Monday 04 August 2008.
Share certificates may not be dematerialised / rematerialised
between Monday, 28 July 2008 and Friday, 01 August 2008, both days
inclusive.
RENEWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders are referred to the renewed cautionary announcement
dated 18 April 2008 in which shareholders were advised that Alliance
Mining has entered into negotiations, which if successfully
concluded may have a material effect on the price of the company`s
securities. The company is still in negotiations and accordingly,
shareholders are advised to exercise caution when dealing in the
company`s securities until a full announcement is made.
STATEMENT ON GOING CONCERN
The financial statements have been prepared on the going-concern
basis since the directors have every reason to believe that the
company has adequate resources in place to continue operations for
the foreseeable future.
For and on behalf of the Board
EA de Kok
Chief Executive Officer
28 May 2008
CORPORATE INFORMATION
Non executive directors: Dr. N.M. Phosa, MN Ramasehla,
P Maema
Executive directors: E.A. de Kok (CEO), C. M. van Nieuwkerk, B.A. de
Kok, A.J.P. Steenkamp, M.J. Garber, L.M. van der Merwe
Registration number: 1997/013402/06
Registered address: 51 Shannon Road, Noordheuwel, 1740
Postal address: PO Box 640, Krugersdorp, 1740
Company secretary: CM van Nieuwkerk
Telephone: (011) 954 6104
Facsimile: (011) 954 6105
Transfer secretaries: Computershare Investor Services (Proprietary)
Limited
Auditors: Van Dyk & Associates
Designated Adviser: Arcay Moela Sponsors (Proprietary) Limited
29 May 2008
Date: 29/05/2008 13:29:02 Produced by the JSE SENS Department.
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