| Mon 3 Nov 2008, 14:24 | | ANS - Ansys - Reviewed Interim Results for the Six Months Ended 31 August 2008 |
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ANS
ANS
ANS - Ansys - Reviewed Interim Results for the Six Months Ended 31 August 2008
ANSYS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1987/001222/06)
(Share Code: ANS ISIN Code: ZAE000097028)
("Ansys" or "the Company")
REVIEWED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST
2008
HIGHLIGHTS
Proposed acquisition of AR Process Projects (Pty) Limited
NAV up 23%
Orders on hand of R150 million
ABRIDGED CONSOLIDATED BALANCE SHEET
6 months ended Year
ended
31 Aug 31 Aug 28 Feb
(Reviewed) (Unaudited) (Audited)
2008 2007 2008
R`000 R`000 R`000
Assets
Property, plant and 6 537 1 335 5 210
equipment
Intangible assets 31 010 130 35 725
Deferred tax asset 2 274 - -
Current assets 47 296 66 454 71 264
Total assets 87 117 67 919 112 119
Equity and liabilities
Capital and reserves 60 659 46 414 76 302
Non-current liabilities 1 029 490 6 958
Current liabilities 25 429 21 015 28 939
Total equity and 87 117 67 919 112 119
liabilities
Number of shares in issue 140 000 000 131 945 205 131 945
205
Net asset value per share 43.33 35.18 57.83
(cents)
Tangible net asset value 21.40 35.08 30.75
per share (cents)
ABRIDGED CONSOLIDATED INCOME STATEMENT
6 months ended Year ended
31 Aug 31 Aug 28 Feb
(Reviewed) (Un (Audited)
audited)
2008 2007 2008
R`000 R`000 R`000
Revenue 41 171 61 289 121 940
Gross profit 13 318 24 783 44 483
Other income 48 68 195
Operating costs (21 596) (12 744) (19 080)
EBITDA (8 230) 12 107 25 598
Depreciation (628) (216) (587)
(Loss)/profit before (8 858) 11 891 25 011
interest and taxation
Interest paid (592) (148) (478)
Interest received 765 592 1 410
(Loss)/profit before (8 685) 12 335 25 943
taxation
Taxation 2 038 (4 093) (7 941)
(Loss)/profit for the (6 647) 8 242 18 002
period
Basic (loss)/earnings per (4.75) 6.25 13.64
share (cents)
Diluted (loss)/earnings (4.63) 6.25 13.44
per share (cents)
Headline (loss)/earnings (4.73) 6.26 13.71
per share (cents)
Dividends per share - - 4.00
(cents)
Weighted average number of 140 000 131 945 131 945
shares in issue 000 205 205
Diluted average number of 143 621 131 945 133 913
shares in issue 065 205 631
Reconciliation of headline
earnings:
(Loss)/profit attributable (6 647) 8 242 18 002
to ordinary shareholders
Adjusted for (loss)/profit 19 12 88
on disposal of property,
plant and equipment
Headline (loss)/earnings (6 628) 8 254 18 090
attributable to ordinary
shareholders
ABRIDGED CONSOLIDATED STATEMENT FO CHANGES IN EQUITY
Share Vendor Accumulat Total
capital shares ed profit
Balance at 1 March 2007 - 13 357 13 357
Share issue 30 000 30,000
Share issue expenses (1 632) (1 632)
Dividends paid (3 553) (3 553)
Profit for the period ending 8 242 8 242
31 August 2007
Balance as at 31 August 2007 28 368 18 046 46 414
Shares to be issued as result 20 128 20 128
of business combination
Profit for the period ending 9 760 9 760
29 February 2008
Balance at 1 March 2008 28 368 20 128 27 806 76 302
Dividends paid (5 600) (5 600)
Loss for the period ending 31 (6 647) (6 647)
August 2008
Re-assessment of shares to be (3 396) (3 396)
issued as result of business
combination
Balance as at 31 August 2008 28 368 16 732 15 559 60 659
ABRIDGED CONSOLIDATED CASH FLOW STATEMENT
6 months ended Year
ended
31 Aug 31 Aug 28 Feb
(Reviewed) (Un- (Audited)
audited)
2008 2007 2008
R`000 R`000 R`000
Cash flows from operating (16 149) (141) 8 637
activities
Cash flows from investing 3 259 (380) (39 935)
activities
Cash flows from financing (4 357) 27 250 49 536
activities
Cash flows for the period (17 248) 26 729 18 238
Cash and Cash equivalents at 20 608 2 368 2 370
beginning of period
Cash and Cash equivalents at 3 360 29 097 20 608
end of period
ABRIDGED SEGMENT REPORT
6 months ended Year
ended
31 Aug 31 Aug 28 Feb
(Reviewed) (Un (Audited)
audited)
2008 2007 2008
Segment Revenue:
Industrial 28 469 55 993 100 020
Defense 12 087 5 033 20 790
Intelligent Platforms 423 177 434
Corporate Unallocated 192 86 696
Total 41 171 61 289 121 940
Operating (loss)/profit segment results (before
interest and taxation):
Industrial 351 17 537 25 699
Defense (1 354) 1 969 9 775
Intelligent Platforms (82) 57 902
Corporate Unallocated (7 773) (7 672) (11 345)
Total (8 858) 11 891 25 011
COMMENTARY
Introduction
During the period under review, Ansys experienced delays in the start up of a
significant number of their projects. The decrease in revenue from R61,3 million
in the prior interim period to R41,2 million in the current interim period is
largely attributable to the 6-18 month delays in the issue and adjudication of
major tenders by key customers.
In light of the above, the company`s interim results for the 6 month period
ended 31 August 2008 are 4.75 cents loss per share and 4.73 cents headline loss
per share (31 August 2007: earnings and headline earnings per share of 6.25 and
6.26 cents).
While the company expects a significant improvement in performance for the
second half of the year as projects received generate revenue, the unrecovered
cost incurred during the first half of the year will impact on the earnings for
the full year ending 28 February 2009.
Prospects
All newly acquired subsidiaries are expected to deliver their targeted results
for the year ending 28 February 2009. To date, contracts with an executable
value of more than R150 million for the year to 28 February 2009 have been
received, which is expected to ensure that Ansys will exceed its forecast
turnover of R138 million for the year to 28 February 2009. Contracts secured for
the year to 28 February 2009, include projects such as the Transnet Wayside
Reader expansion, locomotive communication systems and optical exports to China
and Turkey.
The recently announced agreement to acquire 100% of AR Process Projects (Pty)
Ltd is expected to result in significant future revenue from a wide range of new
industries and sectors, such as the chemical, nuclear, renewable energy, mining,
power, fertilizer and pulp & paper industries. This has the dual benefit of
profitably absorbing surplus Ansys engineering capacity and of reducing Ansys
dependence on its traditional customers.
Financial Results
Optocon Systems (Pty) Ltd ("Optocon"), QuadSoft (Pty) Ltd ("Quadsoft") and
Emerging Signals (Pty) Ltd ("Emerging Signals") (collectively "the
acquisitions") were acquired during the previous financial year ended 29
February 2008 with effective dates of 1 December 2007. The interim results
include six months of these results.
Intangible assets
Goodwill, included in intangible assets, decreased by R3,3 million from the year
ended 29 February 2008 to the current 31 August 2008 review period. The decrease
was mainly due to the re-assessment of the goodwill on the acquisitions. The
purchase consideration of the acquisitions is subject to profit warranties.
Forecasts were obtained and the purchase consideration relating to the 28
February 2010 profits for the acquisitions were adjusted.
These adjustments should be read in conjunction with the audited annual
consolidated financial statements of 29 February 2008.
Current assets
A significant part of the decrease in current assets is attributable to the
decrease in cash and cash equivalents as a results of cash payments of R 10,9
million for the acquisitions, R 5,6 million for dividends and R 7,9 million for
working capital.
Capital and Reserves
Included in capital and reserves are vendor shares that relate to the issue of
shares for the acquisitions.
Non-current liabilities
The non-current liabilities decreased by R5 million from the year ended 29
February 2008 to the current 31 August 2008 review period due to the change in
the status of the deferred payments from non-current to current liabilities. The
deferred payment related to the cash payments for the purchase consideration of
the acquisitions.
Dividend policy
No interim dividend has been declared.
Changes to the board of directors
JG Kotze was appointed to the board of directors on 7 May 2008.
Broad Based Black Economic Empowerment ("BBBEE")
A special committee was established by the board of directors to actively manage
the company`s BBBEE status. It is the company`s aim to become at least a Level 6
contributor.
Cautionary
Ansys Limited issued a cautionary announcement on SENS on 30 October 2008
advising investors to exercise caution when dealing in the company`s securities
as the company has entered into heads of agreement with AR Process Projects
(Pty) Limited ("Process Projects") in respect of the acquisition of 100% of the
shares in issue and loan accounts in Process Projects from its existing
shareholders.
Process Projects has a track record of more than 30 years in providing project
management services and engineering solutions to support the infrastructural
projects of its customers. The company operates in a wide range of industries
and sectors, such as the power, nuclear, renewable energy, mining, chemical,
fertilizer and pulp & paper industries.
The transaction is consistent with Ansys`s stated objective of expanding its
product range and customer base by including the energy, mining and chemical
related industrial sectors.
Basis of preparation and accounting policies
The Abridged interim financial information for the six months ended 31 August
2008 has been prepared in accordance with IAS 34, `Interim Financial Reporting`
and in the manner required by the Companies Act of South Africa. The interim
abridged financial report should be read in conjunction with the annual
financial statements for the year ended 29 February 2008.
This announcement has been prepared in accordance with the Listings Requirements
of the JSE Limited.
The accounting policies adopted are consistent with those of the annual
financial statements for the year ended 29 February 2008.
Independent review
BDO Spencer Steward, independent auditor to Ansys Limited, has reviewed the
abridged financial statements for the six months ended 31 August 2008 and has
expressed an unmodified review conclusion on the results. Their review report is
available for inspection at the company`s registered office.
Appreciation
We want to thank our loyal staff, the majority of whom have remained with the
group for more than 15 years, for their commitment and hard work. We also thank
our business partners, advisors and suppliers, and most importantly our
shareholders for their ongoing support and faith in the group.
By order of the Board
3 November 2008
Alan Holloway Rachelle Grobbelaar
Chief Executive Officer Chief Financial Officer
CORPORATE INFORMATION
Non executive T Daka (Chairman), MG Diliza
directors:
Executive RF Barnard, A Holloway (CEO), JG Kotze,
directors: I Lamprecht, R Grobbelaar, JJ Prinsloo,
OK Sakkers.
Registration 1987/001222/06
number:
Registered 170 Outeniqua Avenue, Waterkloof Park ,
address: Pretoria
Postal address: PO Box 95361, Waterkloof, Pretoria
Company secretary: Fusion Corporate Secretarial Services
(Pty) Ltd
Telephone: +27 12 346 3141
Facsimile: +27 12 346 3720
Transfer Computershare Investor Services (Pty)
secretaries: Limited
Designated Exchange Sponsors (Pty) Limited
Adviser:
Date: 03/11/2008 14:24:01 Produced by the JSE SENS Department.
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