| Tue 3 Jun 2008, 16:51 | | ZPT - Zaptronix Limited - Abridged unaudited interim financial statements for |
|
ZPT
ZPT
ZPT - Zaptronix Limited - Abridged unaudited interim financial statements for
the 6 months ended 29 February 2008
ZAPTRONIX LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1997/014928/06)
Share code: ZPT ISIN: ZAE000070934
("Zaptronix" or "the company")
ABRIDGED UNAUDITED INTERIM FINANCIAL STATEMENTS
FOR THE 6 MONTHS ENDED 29 FEBRUARY 2008
GROUP BALANCE SHEETS
Unaudited Audited Unaudited
at at at
29 Feb 31 Aug 28 Feb
(R`000) 2008 2007 2007
ASSETS
Non-current assets 9 406 10 309 10 558
Fixed assets and intangibles 8 794 9 697 10 088
Investment in unlisted shares 612 612 470
Current assets 7 322 5 754 5 307
Accounts receivable and inventory 6 902 5 429 5 195
Cash and cash equivalents 420 325 112
Total assets 16 728 16 062 15 864
EQUITY AND LIABILITIES
Capital and reserves 8 081 7 839 7 255
Share capital and premium 29 632 29 632 29 632
Non-distributable reserve 419 419 315
Accumulated losses (21 970) (22 212) (22 692)
Non-current liabilities 3 149 3 831 3 529
Interest bearing borrowings 3 100 3 782 3 529
Deferred tax 49 49 -
Current liabilities 5 498 4 392 5 080
Accounts payable and accruals 4 973 3 521 5 080
Provisions 526 871 0
Total equity and liabilities 16 728 16 062 15 864
NAV per share (cents) 2,13 2,07 1,91
NTAV per share (cents) 1,44 0,20 0,53
Number of shares (`000) 379 319 379 319 379 319
GROUP INCOME STATEMENTS
Unaudited Audited Unaudited
6 months 12 months 6 months
29 Feb 31 Aug 28 Feb
(R`000) 2008 2007 2007
Revenue 10 963 23 693 11 604
Cost of sales (5 220) (10 803) (5 556)
Gross profit 5 743 12 890 6 049
Operating costs (5 397) (11 618) (5 483)
Operating profit 346 1 272 566
Other income 15 308 3
Net income before interest 361 1 580 569
Net interest paid (77) (606) (280)
Net profit before taxation 285 974 289
Taxation (43) (167) (44)
Earnings after taxation 242 807 245
Earnings per share (cents) 0,06 0,21 0,06
Amortisation of intangible assets 0,06 0,04 0,09
(cents)
Headline earnings per share (cents) 0,12 0,25 0,15
STATEMENTS OF CHANGES IN EQUITY
Unaudited Audited Unaudited
6 months 12 months 6 months
29 Feb 31 Aug 28 Feb
(R`000) 2008 2007 2007
Opening balance for the period 7 839 7 011 7 011
Net profit for the period 242 807 245
Currency translation reserve - 21 -
Balance at the end of the period 8 081 7 839 7 256
CASH FLOW STATEMENTS
Unaudited Audited Unaudited
6 months 12 months 6 months
29 Feb 31 Aug 28 Feb
(R`000) 2008 2007 2007
Cash flows from operations 788 1 036 883
Cash from operations 1 386 3 747 1 627
Changes in working capital (521) (2 105) (464)
Net interest paid (77) (606) (280)
Cash invested (10) (2 292) (1 354)
Purchase of tangible assets (10) (1 348) (810)
Purchase of intangible assets - (944) (544)
Cash (used)/generated by financing (682) 1 534 535
activities
Net loans advanced/(repaid) (682) 1 534 535
Change in cash and equivalents 95 278 64
Opening cash and equivalents 325 47 47
Closing cash and equivalents 420 325 111
COMMENTARY
1.1 Basis for preparation
The abridged interim results for the six months ended 29 February 2008 have been
prepared in accordance with International Financial Reporting Standards (IFRS)
and the Companies Act of South Africa. The accounting policies applied are
consistent with those of the previous year.
1.2 Operational review
The vision of Z@ptronix is to leverage operational risk control in the energy
and logistics industries. Customers using Z@ptronix applications of Z@p Energy
Management Solutions (Z@p EMS) and DuO Solutions Provider (DuO SP) have 24/7/365
operational control. This level of control reduces cost, optimises capacity and
controls service levels. The nature of business has remained the same since the
listing of the company in 2006. The bulk of income is annuity revenue from
services and systems delivered in terms of three to five year contracts.
DuO SP with its DuO IV TrackingTrade Mark application remained the major
contributor to turnover in the group. More revenue was converted from outright
sale to rental revenue and the growth in active tracking solutions over the
period was 20%.
The Z@ptronix electrical metering business has remained sluggish. The product
range was a legacy from the original company and is no longer competitive. The
single phase meter range has been discontinued and a new meter range is being
introduced.
The restructuring of the respective companies in the group was completed during
the six months from August 07 to February 08. The strong inward focus of the
company has ensured that legacy infrastructure taken over from the old DuO SP
and Z@ptronix companies has been replaced with cost effective processes and
systems and capacity for growth. The restructuring of the respective businesses
has been successfully completed with limited disruption to the business and to
customers.
1.3 Financial review
The group remains marginally profitable, maintaining the required levels of
investment into the businesses going forward.
The earnings of R242 557 (EPS 0,06 cents) and headline earnings of R504 512
(HEPS 0,12 cents) compares with 0,06 cents and 0,15 cents respectively in
February 2007.
The compounding benefit of increasing the quality and value of turnover from DuO
SP by 10% neutralised the reduced turnover in electrical meter sales.
No revaluation of assets was done during the period and the investment in the
development of the required IT&C platform and applications has been completed.
The group covers its interest liability 5 times (2007: 2,6) and generated cash
from operations remained at 7% of turnover (2007: 7%).
Working capital is healthy at a ratio of 1.3 times (2007: 1.3) and there was no
change to the share capital. The NAV of the group increased by 11% year on year.
1.4 Future prospects
The company was listed on AltX in 2006.The first acquisition, DuO Solutions
Provider, has been bedded down. The bulk of the investment in IT&C to support
the business has been sunk. The tracking business is profitable and growing. The
electrical business has been re-launched in tune with the new energy economy
developing in South Africa.
Royal Bafokeng Capital (Pty) Limited has acquired a 30% interest in Z@ptronix ,
adding a premium BBBEE brand to the profile of the group. The transaction is
linked to an option structure that ensures that the BBBEE interest is sustained.
Furthermore the transaction was facilitated preventing the dilution of the
existing shareholder value. The option structure is subject to shareholders`
approval.
Z@ptronix is well positioned with a new electrical metering range and load
management solutions to grow the contribution from the Z@p EMS business.
The listing, corporate health and Z@ptronix Business Model is geared to give
access to the capital market and with the operational efficiencies in place
Z@ptronix can pursue acquisitions that underpin the core business.
1.5 Dividend
No dividend has been proposed in terms of the growth phase the company has
embarked on.
For and behalf of the board of directors
TG Kgage K Gribnitz JP Nel J Ramage
(Chairman) (Non-executive) (Executive) (Executive)
22 May 2008
Midrand
Auditors: PKF (Pretoria) Incorporated
Secretary: Sylvan CSI
Transfer secretaries: Computershare Investor Services
Designated Advisor: QuestCo Sponsors
Date: 03/06/2008 16:51:00 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
