| Wed 28 Nov 2007, 14:27 | | CYB - Cyberhost - Audited Results For The Financia |
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CYB
CYB
CYB - Cyberhost - Audited Results For The Financial Year Ended 31 August 2007
CYBERHOST LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/013649/06)
Share code: CYB & ISIN Code: ZAE000017471
("Cyberhost" or "company")
AUDITED RESULTS FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2007
Balance Sheet
Audited Audited
31 Aug 31 Aug
2007 2006
R`000 R`000
ASSETS
Non-current assets 18 094 3 712
Intangible assets 15 150 150
Other financial assets - 28
Deferred tax 2 944 3 534
Current assets 1 854 243
Trade and other receivables 640 231
Cash and cash equivalents 1 214 12
Total assets 19 948 3 955
EQUITY AND LIABILITIES
Capital and reserves 19 746 3 547
Shareholders` funds 19 746 3 547
Non-current liabilities 210
Long-term liabilities - 210
Current liabilities 202 198
Trade and other payables 202 198
Total equity and liabilities 19 948 3 955
Net asset value per share information
Shares in issue at period end (`000) 500 000 101 388
Net asset value per share (cents) 3.95 3.50
Net tangible asset value per share (cents) 0.92 3.35
Income Statements
Audited Audited
31 Aug 2007 14 months
R`000 31 Aug 2006
R`000
Revenue 2 266 209
Operating costs (235) (52)
Other income 44 -
Operating profit 2 075 157
Interest received 1 -
Net profit before tax 2 076 157
Taxation (590) 3 534
Attributable earnings 1 486 3 691
Less reversal of impairment of financial (42) -
asset
Headline earnings for the period 1 444 3 691
Earnings per share information
Weighted average shares in issue (000`s) 341 647 101 388
Attributable earnings per ordinary share 0.44 3.64
(cents)
Headline earnings per share (cents) 0.42 3.64
Abridged Cash Flow Statements
Audited Audited
31 Aug 2007 31 Aug 2006
R`000 R`000
Net cash inflow from operating activities 1 669 102
Net cash inflow/(outflow) from investing 28 (150)
activities
Net cash (outflow)/inflow from financing (496) 52
activities
Net increase in cash and cash equivalents 1 201 4
Cash and cash equivalents at beginning of 12 8
period
Cash and cash equivalents at end of period 1 214 12
Statement of Changes in Equity
Share Share Accumulated Total
Capital premium loss
R`000 R`000 R`000 R`000
Balance at 01 July 2005 101 20 481 (20 726) (144 059)
Profit for the year - - 3 691 3 691
Balance at 31 August 101 20 481 (17 035) 3 547
2006
Profit for the year - - 1 486 1 486
Shares issued 399 14 994 - 15 393
Share issue costs - (680) - (680)
Balance at 31 August 500 34 796 (15 550) 19 746
2007
COMMENTARY
The directors of Cyberhost announce the results for the year ended 31 August
2007. The accounting policies adopted for purposes of this report comply, and
have been consistently applied in all material respects, with International
Financial Reporting Standards ("IFRS"). The same accounting policies and
methods of computation have been followed as compared to the prior year except
for the adoption of IFRS 2 - Share Based Payment. The results have been audited
by RAiN, whose unmodified audit report is available for inspection at the
registered office of the company.
Overview and prospects
Cyberhost`s operations are focussed on software, licensing, information
technology, communications and web hosting, specific to the hospitality
industry. The Open IT Platform was purchased during the period from Top
Restaurants for R2 000 000 as well as certain brands for R13 000 000. These
purchases and related costs were settled by issuing 398 611 792 shares at a
premium of R14 994 388. Following the successful acquisition the suspension in
trade in the company`s securities was lifted on 24 January 2007.
Shareholders are referred to the detailed cautionary announcement below
regarding prospects of the company.
Results
The results for the period ended 31 August 2007 reflect attributable and
headline earnings of 0.44 and 0.42 cents per share respectively (31 August 2006:
3.64 cents per share), based on 341 647 370 weighted average shares in issue
(2006: 101 388 208). The prior year profit after tax was substantially higher
due to the raising of a deferred tax asset. The company changed its year end
from June each year to August each year during the prior year.
The increase in assets and liabilities are as a direct result of the recent
acquisition, as well as the improvement in cash flow generated by operations in
the bank.
Issue of shares and acquisitions
0n 4 January 2007, the company issued 359 311 792 shares to Queensgate Holdings
(Pty) Ltd ("Queensgate") for the acquisitions of Open Plan and certain brands.
On the same date 39 300 000 shares were issued to Sekunjalo Capital for
corporate advisory fees.
Director changes
As a result of the approval of the transaction with Queensgate in general
meeting, as discussed above, MS Langman and LM Wright have resigned from the
board of directors on 21 December 2006 and the following new directors were
appointed to the board on 21 December 2006:
AJ Hubbard Chief Executive Officer
HGB Friedrichsen Executive Director
JH Brand Financial Director
MD Van Rooyen Non-Executive Director
Dividends
No dividend has been declared for the period ended 31 August 2007.
Renewal of cautionary announcement
Further to the cautionary announcements dated 03 August 2007, 14 September 2007
and 05 October 2007, shareholders are advised that Cyberhost has entered into
negotiations for the acquisition of Queensgate Leisure Holdings (Proprietary)
Limited ("Queensgate Leisure") for a purchase consideration of approximately
R190 million. The finalisation of the agreements has been slow due to a
potential empowerment transaction at the Queensgate Leisure level, which
requires finalisation prior to Cyberhost acquiring Queensgate Leisure.
Queensgate Leisure is a hotel and leisure company, which holds strategic
interests in, the Radisson Hotel (Waterfront Cape Town), the Park Inn Hotel
(Cape Town), and the Hollow hotels, amongst others. Revenue is derived from,
inter alia, hotel operations and management fees.
The transaction is with related parties, will constitute a reverse listing and
will require both JSE and shareholder approval. Further announcements will be
made in due course once agreements have been signed. Accordingly shareholders
are advised to continue to exercise caution when dealing in the company`s
securities until a full announcement is made.
By order of the Board
Colin Human
Chairman
28 November 2007
Johannesburg
Company Secretary and Registered Office
Arcay Client Support (Pty) Ltd (Registration number
1998/025284/07)
Arcay House, Number 3 Anerley Road, Parktown, 2193
PO Box 62397, Marshalltown, 2107
Transfer Office
Computershare Investor Services 2004 (Proprietary) Limited
Directors
JC Human Chairman*, AJ Hubbard, HGB Friedrichsen, JH Brand, MD
Van Rooyen*, MH Weetman*
(*Non-executive)
Sponsor
Arcay Moela Sponsors
(Proprietary) Limited
Date: 28/11/2007 14:27:35 Produced by the JSE SENS Department.
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