| Thu 28 Aug 2008, 7:05 | | TCS - Total Client Services Limited - Audited consolidated results for the |
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TCS
TCS
TCS - Total Client Services Limited - Audited consolidated results for the
year ended 29 February 2008 and notice of annual general meeting
Total Client Services Limited
(Formerly Labat Traffic Solutions (Proprietary) Limited)
Incorporated in the Republic of South Africa
(Registration Number 1998/025018/06)
Share code: TCS ISIN: ZAE000116208
("TCS" or "the group" or "the company")
AUDITED CONSOLIDATED RESULTS FOR THE YEAR ENDED 29 FEBRUARY 2008 AND NOTICE
OF ANNUAL GENERAL MEETING
Shareholders are advised that the audited financial statements for the year
ended 29 February 2008 will be posted on 28 August 2008 and will be available
on the company`s website from the same date. These financial statements
contain no material modifications, other than those detailed below, to the
reviewed financial results that were published on 30 May 2008.
PricewaterhouseCoopers Inc. have now completed their audit of the company`s
annual financial statements and their signed report is available for
inspection at TCS` registered office.
The audited financial statements differ from the reviewed financial results,
published on 30 May 2008, for the following reasons:
- Depreciation on camera equipment has been reclassified from operating
expenses as cost of sales;
- An overpayment on a trade receivable recognised in income was reversed
to trade payables;
- Work in progress calculations were revised in the subsidiary company;
- Taxation and deferred taxation effects of the above were accounted for;
and
- The net result of the above was an immaterial after tax increase in
group earnings of R87 058 (eighty seven thousand and fifty eight rands).
AUDITED RESULTS FOR THE YEAR ENDED 29 FEBRUARY 2008
CONSOLIDATED INCOME STATEMENT
Audited Restated
29 February 28 February
2008 2007
R R
Gross Revenue 112 862 126 113 140 025
Operating profit before 13 502 287 30 188 920
interest and taxation (1 520 335) (1 598 321)
Net interest paid
Profit before taxation 11 981 952 28 590 599
Taxation (10 398 186) (10 657
225)
Profit after tax 1 583 766 17 933 374
Attributable to:
Equity holders of the (1 256 252) 10 377 860
company
Minority interests 2 840 018 7 555 514
Reconciliation headline
earnings
Attributable (1 256 252) 10 377 860
earnings/(loss)
Adjusted for
Surplus on disposal of (53 253) -
property, plant and
equipment
Headline earnings/(loss) (1 309 505) 10 377 860
for period
Earnings/(Loss) per share (0.37)
attributable to the 2.98
equity holders of the
company during the year
(expressed in cents per
share)
Weighted average number 341 538 211 348 699 199
of shares in issue
Headline earnings per
share (cents) (0.38) 2.98
CONSOLIDATED BALANCE SHEET
Audited Restated
29 February 28 February
2008 2007
R R
ASSETS
Non-current assets 40 493 277 25 738 532
Current assets 39 615 341 35 609
489
80 108 618 61 348
021
TOTAL ASSETS
EQUITY AND LIABILITIES
Shareholders funds 17 631 835 25 404
787
Non-current liabilities 29 331 510 7 234 763
- interest bearing
Deferred taxation 5 053 169 1.432 399
Current liabilities 28 092 104 27 276 072
TOTAL EQUITY AND 80 108 618 61 348
LIABILITIES 021
Actual shares in issue 383 569 383 722
at period end (`000)
Net asset value per 4.60 6.62
share (cents)
CONSOLIDATED CASH FLOW STATEMENT
Audited Restated
29 February 28 February
2008 2007
R R
Cash flows from operating 11 121 679 7 516 478
activities
Cash flows from investing (7 083 477) (8 971 211)
activities
Cash flows from financing (5 812 007) 75 457
activities
Net movement in cash and (1 773 805) (1 379 276)
cash equivalents
Cash and cash equivalents 4 791 542 6 170 818
at beginning of year
Cash and cash equivalents 3 017 737 4 791 542
at end of year
STATEMENT OF CHANGES IN EQUITY
Share Share Share- Retained Minorit Total
capit premium based income y
al compensat interes
ion t
reserve
R R R R R R
Balance as at 1 17 286 4 093 21 379
March 2006 100 - - 019 215 334
restated
Profit for the - - 10 728 7 555 18 283
year - 398 514 912
Dividends paid - - - (8 670 (8 330 (17 000
000) 000) 000)
Opening balance 19 344 3 318 22 663
as previously 100 - - 417 729 246
reported
Prior year - - - 1 226 1 515 2 741
adjustments 423 119 542
Balance as at 1 20 570 4 833 25 404
March 2007 100 - - 840 848 788
Restated
Net (1 059 (1
income/(expense) - 500) - - - 059 500)
recognised
directly in
equity
Minority interest - - - - 1 146 1 146
buy out 134 134
Share buyback (22) - - - - (22)
Share issue 38 18 441 (9 8
279 785 923 395) - - 556 669
Profit for the (1 256 2 840 1
year - - - 252) 018 583 766
Dividend paid - - - (9 180 (8 820 (18 000
000) 000) 000)
Balance as at 29 17 382 (9 10 134 17 631
February 2008 38 285 923 395) 588 - 835
357
CONDENSED SEGMENT REPORT FOR THE GROUP
Cameras Service Total
R Centre R
R
2008
Revenue 97 882 618 14 112 862
979 508 126
Operating profit (loss) 38 143 737 (24 13 502
641 450) 287
Total assets 64 487 608 15 80 108
621 010 618
Total liabilities 51 835 323 10 62 476
641 460 783
2007
Revenue 98 886 317 14 113 140
253 708 025
Operating profit (loss) 52 781 573 (22 30 188
592 653) 920
Total assets 48 287 381 13 61 348
060 640 021
Total liabilities 26 930 098 9 35 943
013 136 234
"INDEPENDENT AUDITOR`S REPORT TO THE MEMBERS OF TOTAL CLIENT SERVICES LIMITED
We have audited the annual financial statements and group financial
statements of Total Client Services Limited, which comprise the
directors` report, the balance sheet and the consolidated balance sheet as at
29 February 2008, the income statement and the consolidated income statement,
the statement of changes in equity and the consolidated statement of
changes in equity and the cash flow statement and the consolidated
cash flow statement for the year then ended, a summary of significant
accounting policies and other explanatory notes as set out on pages 20 to 59.
Directors` responsibility for the financial statements
The company`s directors are responsible for the preparation and fair
presentation of these financial statements in accordance with International
Financial Reporting Standards, and in the manner required by the Companies
Act of South Africa, 1973. This responsibility includes: designing,
implementing and maintaining internal control relevant to the preparation
and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error; selecting and
applying appropriate accounting policies; and making accounting estimates
that are reasonable in the circumstances.
Auditors` responsibility
Our responsibility is to express an opinion on these financial statements
based on our audit. We conducted our audit in accordance with International
Standards on Auditing. Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements and consolidated
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the
amounts and disclosures in the financial statements. The procedures selected
depend on the auditors` judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal
control relevant to the entity`s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity`s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by the directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements and group financial statements
present fairly, in all material respects, the financial position of the
company and of the group as of 29 February 2008, and of its financial
performance and its cash flows for the year then ended in accordance with
International Financial Reporting Standards, and in the manner required by
the Companies Act of South Africa, 1973.
Report on other legal and regulatory requirements
In accordance with our responsibilities in terms of sections 44(2) and 44(3)
of the Auditing Profession Act, we report that we have identified
certain unlawful acts or omissions committed by persons responsible
for the management of Total Client Services Limited which constitute
reportable irregularities in terms of the Auditing Profession Act, and have
reported such matters to the Independent Regulatory Board for Auditors. The
matters pertaining to the reportable irregularities have been described in
Note 2 to the Directors` Report.
PricewaterhouseCoopers Inc"
EXTRACT FROM THE DIRECTORS` REPORT AS INCLUDED IN THE COMPANY`S ANNUAL REPORT
"2. POST BALANCE SHEET EVENTS
2.1 Reportable irregularity
The auditors reported a reportable irregularity to the Independent Regulatory
Board for Auditors (IRBA) on
24 July 2008. The particulars of the matter are set out below as quoted from
the letter sent by the auditors on 24 July 2008:
"For purposes of our audit for the year ended 28 February 2007 we have been
presented with a signed
addendum to an agreement entered into between the company and third parties
which we relied upon for purposes of evaluating the possible impairment of a
receivable at 28 February 2007.
During our audit for the year ended 29 February 2008 we have inspected
documentation that led us to
believe that the company has agreed with the other parties to the agreement,
prior to signature thereof, that the addendum to the agreement will be signed
by all parties for the purposes of finalising the audit for the year ended
28 February 2007, but that there is no intention by either of the
parties to honour the contents of the agreement after that date."
The directors responded immediately to the auditors on 24 July 2008 and
subsequently on 1 August 2008. In their responses, they accepted that a
reportable incident had occurred after the audit report date of the
2007 financial year end. The directors confirmed that the reportable
incident was a once-off event,
is not recurring and that the loss, which has been reflected in those
financial statements as a prior year adjustment, is not recoverable. The
Independent Regulatory Board for Auditors has been notified accordingly by
the auditors."
NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these
consolidated financial statements are set out below. These policies have been
consistently applied to all the years presented, unless otherwise stated.
2.1 Basis of preparation
The consolidated financial statements of Total Client Services Limited and
its subsidiary have been prepared in accordance with International Financial
Reporting Standards (IFRS) and IAS 34. The consolidated financial statements
have been prepared under the historical cost convention.
31. PRIOR PERIOD RESTATEMENT (extract of note relating to change in
accounting policy)
During the 2008 financial year it was noted that the subsidiary company,
Total Computer Services (Pty) Ltd has applied the revenue recognition policy
adopted by the group incorrectly in prior periods. It was impracticable to
determine period specific effects of this prior period error on comparative
information for periods prior to 28 February 2007. The effect of this prior
period error has been applied to the carrying value of the assets and
liabilities at the beginning of the 2008 financial year and a corresponding
adjustment to the opening balances of each of the affected components for the
year.
The effect of the prior period error can be summarised as follows:
Group Company
Figures in Audited Restated Audited Restated
Rand 29 February 28 29 February 28
2008 February 2008 February
2007 2007
Effect on
assets
Increase in - 4 355 - -
current assets 042
Effect on
liabilities
Increase in - 1 262 - -
deferred tax 962
Effect on
retained
earnings
Attributable - 1 576 - -
to equity 961
holders
Attributable - 1 515 - -
to minorities 119
NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that the annual general meeting of
shareholders of the company will be held on Thursday, 25 September
2008 at 10:00 at the offices of the company, Top Floor, 20 Regency Drive,
Route 21 Corporate Park, Irene, Pretoria to conduct the business stated in
the notice of annual general meeting, which is contained in the Annual
Report.
Directors
GN Sam* (Chairman), L Sipoyo*, AS Mohamed (Chief Executive Officer), M
Reichenberg (Financial Director), BN Birkholtz, JH Taljaard. (*Non-executive)
Notes:
D Engelbrecht (Alternate) was appointed on 25 August 2008.
A Britto, former Company Secretary, resigned on 25 July 2008.
Company Secretary:
Probity Business Services (Proprietary) Limited
Third Floor, JHI House, 11 Cradock Avenue
Rosebank, 2196
Registered office:
Total Client Services Limited
(Registration number 1998/025018/06)
23 Kroton Avenue Weltevreden Park Johannesburg, 1709
(Private Bag X09-248, Weltevreden Park, 1715)
Transfer secretaries:
Computershare Investor Services (Pty) Limited
(Registration number: 2004/003647/07)
70 Marshall Street
Johannesburg, 2001
(PO Box 61763, Marshalltown, 2107)
Auditors:
PricewaterhouseCoopers Inc. Chartered Accountants (SA) (Registration number
1998/012055/21)
2 Eglin Road
Sunninghill, 2157
(Private Bag X36, Sunninghill, 2157)
Designated adviser:
Merchant Sponsors (Proprietary) Limited
Company website:
www.tcsonline.co.za
Date: 28/08/2008 07:05:07 Produced by the JSE SENS Department.
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