| Wed 1 Apr 2009, 15:36 | | ZPT - Zaptronix - Abridged Audited Financial Statements For The 12 Months Ended |
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ZPT
ZPT
ZPT - Zaptronix - Abridged Audited Financial Statements For The 12 Months Ended
31 August 2008
ZAPTRONIX LIMITED
(Registration number: 1997/014928/06
Share code: ZPT & ISIN: ZAE000070934
("Zaptronix" or "the company")
Abridged audited financial statements for the 12 months ended 31 August 2008
Further to the release of the company`s reviewed financial statements for the 12
months ended 31 August 2008 on 11 December 2008, the company presents its
abridged audited financial results for the same period. The annual general
meeting has been convened to be held on Wednesday 6 May 2009 at the company`s
offices, Solutions House, Gazelle Close, Corporate Park, Midrand, Gauteng.
History
2005 : Acquisition of DuO Solutions Provider
2006 : Zaptronix listed on AltX
2007 : Royal Bafokeng Capital 30% interest
2008 : New Energy Management Solutions
Future Outlook
Positioned for Automated Metering Infrastructure ("AMI") replacement programme
New business brands
Acquisitions of distressed new economy assets
(R`000) GROUP
Audited Audited
at at
BALANCE SHEETS 31-Aug-08 31-Aug-07
ASSETS
Non-current assets 8,019 10,376
Fixed assets 5,770 7,328
Intangibles 2,219 2,368
Investment in unlisted shares - 612
Deferred tax 30 67
Current assets 5,039 5,754
Inventory 2,568 2,854
Accounts receivable 1,898 2,575
Loans to group companies - -
Cash and cash equivalents 573 325
Total assets 13,058 16,130
EQUITY AND LIABILITIES
Capital and reserves 5,065 7,839
Share capital and premium 29,632 29,632
Non-distributable reserve 170 419
Accumulated losses (24,737) (22,212)
Non-current liabilities 2,929 3,899
Interest bearing borrowings 2,661 3,782
Deferred tax 268 117
Current liabilities 5,064 4,392
Loans from group companies - -
Other financial liabilities 1,558 1,590
Accounts payable and accruals 3,153 1,931
Provisions 353 871
Total equity and liabilities 13,058 16,130
NAV per share (cents) 1.34 2.07
NTAV per share (cents) 0.75 1.44
Number of shares (`000) 379,319 379,319
(R`000) COMPANY
Audited Audited
at at
BALANCE SHEETS 31-Aug-08 31-Aug-07
ASSETS
Non-current assets 4,197 4,732
Fixed assets 54 122
Intangibles 1,043 1,136
Investment in unlisted shares 3,069 3,474
Deferred tax 30 -
Current assets 2,124 1,933
Inventory 336 392
Accounts receivable 215 761
Loans to group companies 1,193 772
Cash and cash equivalents 380 8
Total assets 6,321 6,665
EQUITY AND LIABILITIES
Capital and reserves 1,323 3,170
Share capital and premium 29,632 29,632
Non-distributable reserve 23 23
Accumulated losses (28,333) (26,485)
Non-current liabilities 374 399
Interest bearing borrowings 374 305
Deferred tax - 94
Current liabilities 4,623 3,096
Loans from group companies 3,738 1,328
Other financial liabilities - -
Accounts payable and accruals 800 1,691
Provisions 85 77
Total equity and liabilities 6,321 6,665
(R`000) GROUP
Audited Audited
12 months 12 months
INCOME STATEMENTS 31-Aug-08 31-Aug-07
Revenue 22,399 23,693
Cost of sales (9,954) (8,489)
Gross profit 12,445 15,204
Operating costs (14,343) (13,932)
Operating (loss)/profit (1,897) 1,272
Other income 645 308
Net income before interest (1,252) 1,580
and depreciation
Fair value adjustments (1,022) -
Net interest paid/received (113) (606)
Net (loss)/profit before taxation (2,387) 974
Taxation (189) (167)
(Loss)/earnings after taxation (2,576) 807
(Loss)/earnings per share (cents) (0.68) 0.21
Amortisation & impairments of assets 0.27 0.04
HEPS (cents) (0.41) 0.25
(R`000) COMPANY
Audited Audited
12 months 12 months
INCOME STATEMENTS 31-Aug-08 31-Aug-07
Revenue 2,189 3,506
Cost of sales (1,554) (1,887)
Gross profit 635 1,619
Operating costs (3,071) (2,368)
Operating (loss)/profit (2,435) (749)
Other income 855 1,097
Net income before interest (1,580) 348
and depreciation
Fair value adjustments (405) -
Net interest (paid)/received 13 (131)
Net (loss)/profit before taxation (1,972) 217
Taxation 124 (93)
(Loss)/earnings after taxation (1,848) 124
(R`000) GROUP
Audited Audited
12 months 12 months
STATEMENTS OF CHANGES IN EQUITY 31-Aug-08 31-Aug-07
Opening balance for the period 7,839 7,011
Net profit/(loss) for the period (2,576) 807
Currency translation reserve (199) 21
Issue of share capital - -
Balance at the end of the period 5,065 7,839
(R`000) COMPANY
Audited Audited
12 months 12 months
STATEMENTS OF CHANGES IN EQUITY 31-Aug-08 31-Aug-07
Opening balance for the period 3,170 3,046
Net profit/(loss) for the period (1,848) 124
Currency translation reserve - -
Issue of share capital - -
Balance at the end of the period 1,322 3,170
(R`000) GROUP
Audited Audited
12 months 12 months
CASH FLOW STATEMENTS 31-Aug-08 31-Aug-07
Cash flows from operations 1,768 1,036
Cash from/(utilised by) operations 878 3,747
Change in working capital 1,003 (2,105)
Net interest (paid)/received (113) (606)
Cash invested (368) (2,292)
Purchase of tangible assets (368) (1,348)
(Purchase)/sale of intangible assets - (944)
Loans from group companies - -
Loans to group companies repaid - -
Cash from financing activities (1,152) 1,534
Loans from shareholders 1,000 -
Finance lease payments (80) -
Net finance (paid)/raised (2,073) 1,534
Change in cash and equivalents 248 278
Opening cash and equivalents 325 47
Closing cash and equivalents 573 325
(R`000) COMPANY
Audited Audited
12 months 12 months
CASH FLOW STATEMENTS 31-Aug-08 31-Aug-07
Cash flows from operations (938) (372)
Cash from/(utilised by) operations (1,466) 150
Change in working capital 515 (391)
Net interest (paid)/received 13 (131)
Cash invested 544 (325)
Purchase of tangible assets 8 (19)
(Purchase)/sale of intangible assets 1,090 (546)
Loans from group companies - 240
Loans to group companies repaid (554) -
Cash from financing activities 766 686
Loans from shareholders 1,000 -
Finance lease payments - -
Net finance (paid)/raised (234) 686
Change in cash and equivalents 372 (11)
Opening cash and equivalents 8 19
Closing cash and equivalents 380 8
COMMENTARY
The audited financial statements presented above do not differ materially from
the reviewed financial statements but the following amendments should be noted:
Balance sheet - Group
2008- Reclassification of intangible and fixed assets. The total remains the
same
- Reclassification of finance lease obligations from non-current to
current liabilities
2007- Debit and credit deferred tax balances disclosed separately
2008 & 2007 - Separate line disclosure for inventory and accounts receivable
Balance sheet - Company
2008 - Reclassification of leases to current from non-current liabilities
2007 - Loans to group companies disclosed separately to Loans from group
companies
2007 & 2008 - Reclassification of Loans from group companies as current assets
Income statement - Company
2008 - Reclassification of interest from other income to interest received
1.1 Basis for preparation
The audited annual financial statements for the 12 months ended 31 August 2008
have been prepared in accordance with International Financial Reporting
Standards ("IFRS"), IAS 34, the JSE Limited Listings Requirements and the
Companies Act of South Africa. The unqualified audit opinion prepared by PKF
(Pretoria) Incorporated is available for inspection at the company`s registered
office. The accounting policies applied are consistent with those of the
previous year.
1.2 Operational review
The business objective of Zaptronix is to leverage technology to give its
customers visibility and remote control ability over their business operations.
Through its four business units, Zaptronix delivers operational risk management
solutions to the mobile, logistics, energy and irrigation markets. The
Zaptronix group is operationally geared to install data logging and task
systems on power plants, transport vehicles and irrigation systems. The data
centre and GSM service infrastructure not only warehouses business
intelligence, it serves a number of proprietary applications. The third leg to
the Zaptronix business model comprises technical support, contact centre and
control room (24/7 Bureau) services. The business objective remains to build
strong annuity revenue books with smart customers in new economies.
The market is growing for DuO IV Tracking TM as an operational control solution
("OCS") for vehicle, driver and schedule monitoring and measurement
application, differentiating this application from the Security Vehicle
Recovery ("SVR") market.
The advent of active demand side management in the electricity economy in South
Africa is introducing time of use tariffs, penalties, quotas etc. to businesses
and households. Automated Metering Infrastructure ("AMI") is being legislated
and Zaptronix has invested heavily in the past year to ensure that its meter
range and load management systems are available to market.
Zaptronix holds an investment in a UK business it inherited from its smart card
technology days in the late 90`s. The business is being wound up by the
majority shareholder after the loss of a major contract.
Zaptronix also suffered material losses during the year in GSM communication
costs due to system failures and theft. Corrective action has been taken to
prevent similar failures in operational control.
Zaptronix businesses are SMMEs and the operational focus remains on margin and
cost control.
1.3 Financial review
The Zaptronix group made a loss in its business for the 12 months ended 31
August 2008. Revenue from DuoSP showed a net shrinkage o f R1,2 m year on year
primarily due to two large customers having been liquidated. The shift from SVR
to OCS and promoting rental solutions instead of outright sales were the main
contributors.
Revenue from electrical meter sales decreased by R1,3 m year on year mainly due
to the discontinuation of the old meter range that had become uncompetitive.
Costs were reduced year on year by 5% and non-recurring losses and impairments
of R1,8m were absorbed during the period.
The majority shareholder rendered financial support ensuring the liquidity of
the group and containing the gearing and exposure to interest rate increases.
Working capital is at a ratio of 1.1 times (2007: 1.3) and there was no change
to the share capital.
1.4 Events post year-end and future prospects
The economic environment has positioned Zaptronix outside the investment
criteria of Royal Bafokeng Capital ("RBC") and the vendor facilitated
transaction whereby RBC would acquire a 30% equity stake in the company has
been terminated.
Zaptronix is a vehicle geared to acquisitions that underpin the core business.
The board believes that this process will gain momentum going forward.
1.5 Dividend
No dividend has been proposed due to the growth phase the company has embarked
on.
For and behalf of the board of directors
TG Kgage JP Nel J Ramage
Chairman Chief Executive Officer Financial Director
Registered office : Solutions House, Gazelle Close, Corporate Park, Midrand,
Gauteng
Secretary: Sylvan Corporate Secretaries Incorporated
Auditors: PKF (Pretoria) Incorporated
Designated adviser : QuestCo Sponsors
1 April 2009
Midrand
Date: 01/04/2009 15:36:01 Produced by the JSE SENS Department.
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