| Tue 30 Sep 2008, 17:21 | | CMA - Command - Audited Financial Results For The Year Ended 30 June 2008 |
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CMA
CMA
CMA - Command - Audited Financial Results For The Year Ended 30 June 2008
COMMAND HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1999/014759/06)
Share code: CMA & ISIN: ZAE000023131
("Command" or "the Group" or "the Company")
AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 30 JUNE 2008
Group consolidated income statements
Audited Audited
12 months 12 months
ended ended
30-Jun-08 30-Jun-07
R000`s R000`s
Revenue 148 069 104 327
Cost of sales (94 828) (67 161)
Gross profit 53 241 37 166
Operating costs
Selling and administrative expenses (37 581) (24 235)
Attributable profit incurred from trade 15 660 12 931
Other income 6 85
Net profit before interest 15 666 13 016
Interest paid on borrowings (1 528) (1 077)
Interest received on bank balances 689 69
Other non-operating income - -
Attributable profit 14 827 12 008
Amortisation of intangibles - -
Other net non-operating costs (2 804) (1 976)
Net income before taxation 12 023 10 032
Taxation (1 800) (305)
Net income for the year 10 223 9 727
Ordinary shareholders` net profit 10 223 9 727
Earnings per share (cents) 7.73 7.35
Headline earnings per share (cents) 7.73 7.35
GROUP CONSOLIDATED BALANCE SHEETS
At At
30-Jun-08 30-Jun-07
R000`s R000`s
ASSETS
Non-current assets
Tangible assets 8 954 7 167
Intangible assets 5 987 1 527
Deferred taxation 5 189 4 520
Investment, loans and rental advances 4 516 3 036
Total non-current assets 24 646 16 250
Current assets
Inventories 328 587
Work in progress - -
Accounts receivable 22 344 23 594
Bank balances and cash 6 857 7 652
Total current assets 29 529 31 833
Total assets 54 175 48 083
EQUITY AND LIABILITIES
Capital and reserves
Share capital 1 1
Share premium 16 338 16 338
Non-distributable reserve - -
Retained income 26 469 16 246
Outside shareholder`s interests - -
Total capital and reserves 42 808 32 585
Non-current liabilities
Non-interest bearing borrowings - -
Shareholder`s loan - -
Long-term borrowings 2 185 2 296
Total non-current liabilities 2 185 2 296
Current liabilities
Short-term borrowings 2 612 2 593
Bank overdrafts
Accounts payable 1 737 2 980
Accruals 1 652 2 063
Provisions 1 894 3 257
Taxation 1 287 2 259
Total current liabilities 9 182 13 152
Total equity and liabilities 54 175 48 083
NAV per share 32.47 24.68
GROUP CONSOLIDATED CASH FLOW STATEMENTS 12 months 12 months
ended ended
30-Jun-08 30-Jun-07
R000`s R000`s
Cash flows from operating activities 7 024 4 090
Cash flows from financing activities (92) 1 403
Cash flows from share issue - 8 385
Cash flows from investing activities (7 727) (3 534)
Net movement in cash resources (795) 10 344
Cash resources at the beginning of the period 7 652 (2 692)
Cash resources at the end of the period 6 857 7 652
GROUP CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share
capital and Accumulated
premiums loss Total
R`000 R`000 R`000
Balance at 1 July 2006 7 954 6 519 14 473
Issue of shares 8 385 - 8 385
Ordinary shareholders` net income - 9 727 9 727
Balance at the end of the period:
30 June 2007 16 339 16 246 32 585
Ordinary shareholders` net income - 10 223 10 223
Balance at the end of the period:
30 June 2008 16 339 26 469 42 808
GROUP SEGMENTAL REVIEW
Guarding services Total
R R
Revenue 148 069 148 069
Earnings 10 223 10 223
Assets 54 175 54 175
Liabilities 11 367 11 367
Depreciation 1 751 1 751
Guarding services Total
% %
Revenue 100 100
Earnings 100 100
Assets 100 100
Liabilities 100 100
Depreciation 100 100
COMMENTARY
The Board of Directors of Command Holdings Limited are pleased to present the
audited results for the year ended 30 June 2008 ("the year").
Basis of presentation, accounting policies and notes
The results for the year and comparative information have been prepared in
terms of International Financial Reporting Standards ("IFRS"), using
accounting policies which are consistent with the prior year, applicable at
30 June 2008 and comply with the relevant sections of the Companies Act in
South Africa and the Listings Requirements of the JSE Limited. The results
have been audited by TCG (Alberton) Chartered Accountants, and their
unqualified audit opinion is available for inspection at the registered
office of Command.
Review of operations
The Group`s businesses continued to perform satisfactorily. The Group
performed ahead of expectations. Headline earnings increased by 5.1% to
R10.223 million translating into strong organic growth which was the key
driver of the Group`s performance. The 40% increase in fuel cost over the
period under review had a significant and negative impact on the headline
earnings. The Group achieved revenue of R148.069 million compared to revenue
of R104.327 million in 2007, an increase of 41.9%. This reflects an increase
across all divisions and geographic regions. The Group`s operating profit
increased. The Guarding Division, Port Security and Forensic Investigation
Division continue to show substantial organic growth. The Group has in line
with its strategy maintained and expanded its national presence and enhanced
the Group brand in all regions. The Group has continued to secure long-term
contracts from major corporates and parastatals on a regular basis.
Financial results
Revenue for the group increased by 41.9%. Operating profit has grown by
20.36% to R15.666 million, representing approximately 10.6% of revenue.
Headline earnings per share increased by 5.2% from 7.35 cents per share to
7.73 cents per share.
Prospects
The Group is well positioned to grow its national footprint with strong
management and good client service. The Group intends to diversify its
service offerings by establishing itself in the electronic surveillance and
monitoring market.
Black economic empowerment (BEE)
Command is majority black owned and managed with at least 90% of the Group`s
Board of Directors being black and 30% black female. The Group`s BEE platform
is a key contributor to ongoing growth.
Corporate governance
The Board and senior management subscribe to the Code of Corporate Practices
and Conduct in the King II Report on Corporate Governance. The Directors
recognise the need to conduct the Group`s business with integrity and
according to sound corporate governance principles.
People
We recognise and appreciate the efforts of all Directors, managers and staff
who have been integral to the Group`s success.
Appreciation
We also thank all our shareholders, business associates and particularly our
loyal customers for their invaluable, ongoing support. We will continue to
strive to exceed our expectations.
Dividend
In line with Group policy no dividend has been declared for the year.
By order of the Board
ZJ Sithole MS Mowzer
Non-executive Chairman Chief Executive Officer
Cape Town
30 September 2008
Directors: ZJ Sithole (Non-executive Chairman), MS Mowzer (Chief Executive
Officer), MI Parker (Non-executive), KG Druker (Non-executive), S Banda
(Executive) and FM Moshesh (Non-executive) continued to serve as Directors
during the year under review.
Company Secretary: Coastal Corporate Registrations CC - DC McLachlan
Registered Office: Marrakech Unit 11, Vangate City, Athlone, Cape Town, 7764
(PO Box 93, Gatesville, 7766)
Transfer Secretaries: Computershare Investor Services (Pty) Limited,
Ground Floor, 70 Marshall Street, Johannesburg, 2001 (PO Box 61051,
Marshalltown, 2107)
Sponsor: Deloitte & Touche Sponsor Services (Pty) Limited
Date: 30/09/2008 17:21:06 Produced by the JSE SENS Department.
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