|
CEL
CEL
CEL - Celcom Group - Abridged consolidated audited results for the year ended 30
June 2008
CELCOM GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/021219/06)
JSE code: CEL & ISIN: ZAE000087490
("Celcom Group" or "the company" or "the group")
ABRIDGED CONSOLIDATED AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2008
* Revenue up 46%
* Earnings up 55%
GROUP INCOME STATEMENT
Audited Audited
12 months 15 months
ended ended
30 June 30 June
2008 2007
R`000 R`000
Revenue 1,012,565 694,000
Gross profit 97,913 68,669
Operating profit before 12,546 12,351
financing income, amortisation
of intangibles and depreciation
(EBITDA)
Amortisation of intangibles (3,806) (5,517)
Depreciation (1,767) (1,685)
Net interest received (80) 406
Profit before taxation 6,893 5,555
Taxation (3,194) (3,171)
Profit after taxation 3,699 2,384
Minority interest 75 0
Profit attributable to ordinary 3,774 2,384
shareholders
Number of shares (000`s)
- Issued 206,459 204,609
- Weighted 206,399 172,486
Headline earnings per share
(cents)
- Issued 1.38 1.17
- Weighted 1.38 1.38
Earnings per share (cents)
- Issued 1.83 1.17
- Weighted 1.83 1.38
Calculation of headline
earnings
Net profit attributable to 3,774 2,384
shareholders
Adjusted for:
Profit on sale of businesses (918) 0
Headline earnings 2,856 2,384
GROUP CASH FLOW STATEMENT
Audited Audited
12 months 15 months
ended ended
30 June 30 June
2008 2007
R`000 R`000
Operating income before working 12,042 12,273
capital changes
Increase in inventories (2,438) (14,388)
Increase in trade and other (7,771) (16,517)
receivables
Increase in trade payables 12,997 48,922
Cash generated from operations 14,830 30,290
Finance income 1,330 1,254
Finance expenses (1,409) (848)
Income tax expense (11,286) (1,160)
Net cash flows from operating 3,465 29,536
activities
Net cash flows from investing (28,865) (60,541)
activities
Net cash flows from financing 19,256 46,855
activities
Net increase/(decrease) in cash (6,144) 15,850
resources
Foreign currency translation 6 0
Cash resources at beginning of 20,518 4,668
period
Cash resources at end of period 14,380 20,518
GROUP BALANCE SHEET
Audited at Audited at
30 June 30 June
2008 2007
R`000 R`000
ASSETS
Non-current assets 97,433 61,011
Property, plant and equipment 8,303 2,421
Goodwill 53,900 25,096
Intangible assets 31,867 31,909
Deferred taxation 3,363 1,585
Current assets 94,398 91,452
Inventories 32,762 30,323
Trade and other receivables 44,191 36,420
Cash and cash equivalents 14,378 23,305
Prepaid taxation 3,067 1,404
Total assets 191,831 152,463
EQUITY AND LIABILITIES
Equity
Issued capital 56,030 54,184
Share compensation reserve 624 53
Foreign currency translation 6 0
reserve
Retained earnings 21,115 17,342
Minority interest 10,203 0
Non-current liabilities 5,473 69
Long term loans 4,088 69
Long term vendor loans 1,385 0
Current liabilities 98,380 80,815
Trade and other payables 85,419 72,424
Interest-bearing loans and 1,869 246
borrowings
Current portion of vendor loans 10,384 0
Bank overdraft 0 2,787
Taxation payable 708 5,358
Total equity and liabilities 191,831 152,463
Net asset value per share 37.7 35.0
(cents)
GROUP STATEMENT OF CHANGES IN
EQUITY
Issued Share Share-based Foreign Accumulated Total
shares premium compensation currency profit
reserve translation
reserve
R`000 R`000 R`000 R`000 R`000 R`000
Balance at 1 6,800 - - 14,958 21,759
31 March
2006
Issue of 1 51,296 - - - 51,297
shares at a
premium
Cost of - (3,914) - - - (3,914)
listing
Profit for - - - - 2,384 2,384
the 15
months
ending 30
June 2007
Share-based - - 53 - - 53
payments
Balance at 2 54,182 53 - 17,342 71,579
30 June
2007
Issue of 0 1,850 - - - 1,850
shares at a
premium
Cost of - (4) - - - (4)
share issue
Profit for - - - - 3,774 3,774
the year
ending 30
June 2008
Share-based - - 571 - - 571
payments
Foreign - - - 6 - 6
currency
translation
Balance at 2 56,028 624 6 21,116 77,776
30 June
2008
SEGMENT INFORMATION Revenue Result Assets Liabilities
Importing, warehousing and 98,960 (321) 38,860 9,148
distribution
Prepaid voucher distribution 490,401 3,605 33,400 53,776
and switching
Retail stores 407,785 5,723 87,610 29,971
Africa operations 18,988 (233) 24,328 3,709
Other (*) 2,951 (2,463) 2,424 367
Group (unallocated) (6,520) 661 5,208 6,881
Total 1,012,565 6,972 191,830 103,852
(*) Other segments include Go Mobile Communications, machine to machine
logistics and mobile phone content distribution.
COMMENTARY
The directors present the abridged consolidated audited annual results for the
twelve months ended 30 June 2008 ("the year"). The previous corresponding period
for which results were published was the fifteen month period ended 30 June 2007
(the "previous period").
REVIEW OF RESULTS
The group recorded revenue growth of 46% to R1 billion (reflecting annualised
growth of 82%). This is due to the inclusion of the V Cellular retail stores for
the full 12 months which accounted for 24% of this growth, as well as higher
sales of prepaid virtual vouchers which accounted for 18% of the growth.
The group`s gross profit increased to R98 million, 43% ahead of the previous
period, achieving a gross margin of 9.7%.
As previously detailed in the interim results for the six months ending 31
December 2007 ("interim results") released on SENS on 19 February 2008, the
useful life of the intangibles relating to the Vodashop and Vodacom 4U franchise
agreements has been extended from five years to ten years. This extension is due
to the existing franchise agreements being renewed during the year for a further
effective life of ten years.
Profit after taxation ("PAT") increased by 55% to R3.7 million from the previous
period.
Earnings per share ("EPS") increased to 1.83 cents, 57% above the 1.17 cents for
the previous period. This is an annualised growth of 97%.
Headline earnings per share ("HEPS") remained consistent with the revised HEPS
for the previous 15 month period at 1.38 cents. The annualised growth in HEPS is
25%. As detailed in the interim results, revised HEPS in the previous period
related to the group aligning with Circular 08/07 issued by the South African
Institute of Chartered Accountants in November 2007.
Reconciliation of restated headline 7,901
earnings:
Headline earnings as previously
reported
Adjusted for:
Amortisation of intangible assets (5,517)
Restated headline earnings 2,384
HEPS as previously reported (cents) 4.58
Amortisation of intangible assets (3.20)
Restated HEPS (cents) 1.38
BUSINESS COMBINATION
The group completed the acquisition of 50.5% of Celcom Uganda on 31 May 2008.
Accordingly, in line with IFRS3 Business Combinations, the group has
consolidated the results of Celcom Uganda for the month of June 2008 - recording
revenue of R19 million and a loss of R76 000 after tax and minority interest.
Had the acquisition been effective for the full year, the group`s revenue would
have been R1.23 billion and the consolidated profit attributable to ordinary
shareholders would have been R5.7 million.
R6.6 million of the vendor loans relates to the final cash consideration payable
for the acquisition of Celcom Uganda.
BALANCE SHEET ANALYSIS
Property, plant and equipment increased by R5.9 million from the previous
period, primarily as a result of consolidating group premises to a single leased
warehouse and office premises in Midrand during December 2007 and the
consolidation of Celcom Uganda.
Goodwill increased by R29 million from the previous period as a result of the
acquisitions of the Kolonnade Vodashop, Vereeniging Vodashop and Celcom Uganda.
Goodwill arising on the Ugandan acquisition amounts to R19.6 million.
Share capital and premium have increased by R1.9 million as a result of the
issue of shares to the vendor of the Kolonnade Vodashop in early July 2007. The
increase in long-term loans also relates to the funding of the Kolonnade
Vodashop.
CASH FLOW ANALYSIS
Cash flow from operations before working capital changes has increased by an
annualised 25% to R12 million from the previous period. Net cash flow from
investing activities and from financing activities relate to the acquisitions of
the Kolonnade Vodashop and Celcom Uganda, together with the increase in assets
due to the group`s move to new premises.
PROSPECTS
In light of poor global economic conditions and challenging trading conditions
locally, budgets for group operations for the year ahead to June 2009 have been
set at conservative levels. The group is working towards improved cost
management, operational efficiencies and performance levels across the board.
The current financial year should reflect the benefits for a full 12 months of
the acquisition of Celcom Uganda. The complementary business presents Celcom
Group with the opportunity to secure a significant distribution footprint in the
fast-growing Ugandan telecommunications market.
BASIS OF PREPARATION
The results have been compiled in accordance with International Financial
Reporting Standards ("IFRS"), including IAS34 and the South African Companies
Act. The accounting policies are consistent with those adopted in the annual
financial statements for the previous period.
The results have been audited by Tuffias Sandberg KSi. Their unqualified audit
report is available for inspection at the company`s registered office.
By order of the board
Stefano Brachini Colin Brown
CEO CFO
30 September 2008
Directors:
M Golding (Chairman)*; S Brachini (CEO); C Brown (CFO); G Aliferis (COO);
L Brachini (Chief Commercial Officer); D Rose*; P Vallet*; S Mukaddam*
(*non-executive)
Registered office: 4 Fifth Avenue
Edenburg
Sandton
2196
(PO Box 2506, Rivonia, 2128)
Transfer secretaries: Computershare Investor Services 2004 (Proprietary) Limited
70 Marshall Street
Johannesburg, 2001
(PO Box 61763, Marshalltown, 2107)
Company secretary: Probity Business Services (Proprietary) Limited
Designated advisor: Java Capital (Proprietary) Limited
Date: 30/09/2008 10:02:01 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.
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
