| Fri 29 May 2009, 10:30 | | ZPT - Zaptronix - Abridged unaudited interim financial statements for the 6 |
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ZPT
ZPT
ZPT - Zaptronix - Abridged unaudited interim financial statements for the 6
months ended 28 February 2009
Zaptronix LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1997/014928/06)
Share code: ZPT
ISIN: ZAE000070934
("Zaptronix" or "the company")
ABRIDGED UNAUDITED INTERIM FINANCIAL STATEMENTS
FOR THE 6 MONTHS ENDED 28 FEBRUARY 2009
GROUP BALANCE SHEETS
Unaudited Audited Unaudited
at at at
28 Feb 31 Aug 29 Feb
(R`000) 2009 2008 2008
ASSETS
Non-current assets 6 904 7 989 9 406
Fixed assets and intangibles 6 904 7 989 8 794
Investment in unlisted - - 612
shares
Current assets 7 040 5 039 7 323
Accounts receivable and 6 685 4 466 6 902
inventory
Cash and cash equivalents 355 573 421
Total assets 13 944 13 028 16 729
EQUITY AND LIABILITIES
Capital and reserves 4 117 5 065 8 081
Share capital and premium 29 632 29 632 29 632
Non-distributable reserve 170 170 419
Accumulated losses (25 685) (24 737) (21 970)
Non-current liabilities 3 292 2 899 3 149
Interest bearing borrowings 3 054 2 661 3 100
Deferred tax 238 238 49
Current liabilities 6 534 5 064 5 499
Accounts payable and 5 658 4 711 4 973
accruals
Provisions 876 353 526
Total equity and liabilities 13 944 13 028 16 729
NAV per share (cents) 1,09 1,34 2,13
NTAV per share (cents) 0,61 0,75 1,44
Number of shares (`000) 379 319 379 319 379 319
GROUP INCOME STATEMENTS
Unaudited Audited Unaudited
6 months 12 months 6 months
28 Feb 31 Aug 29 Feb
(R`000) 2009 2008 2008
Revenue 9 996 22 399 10 963
Cost of sales (4 825) (9 954) (5 220)
Gross profit 5 171 12 445 5 743
Operating costs (6 066) (14 343) (5 397)
Operating (loss)/profit (894) (1 897) 346
Other income 18 645 15
Net income before interest (876) (1 252) 361
Fair value adjustments - (1 022) -
Net interest paid (72) (113) (76)
Net profit before taxation (948) (2 387) 285
Taxation - (189) (43)
Earnings after taxation (948) (2 576) 242
Earnings per share (cents) (0,25) (0,68) 0,06
Amortisation of assets 0,29 0,27 0,06
(cents)
Headline earnings per share 0,04 (0,41) 0,12
(cents)
STATEMENTS OF CHANGES IN EQUITY
Unaudited Audited Unaudited
6 months 12 months 6 months
28 Feb 31 Aug 29 Feb
(R`000) 2009 2008 2008
Opening balance for the 5 065 7 839 7 839
period
Net (loss)/profit for the (948) (2 576) 242
period
Currency translation reserve - (199) -
Balance at the end of the 4 117 5 065 8 081
period
CASH FLOW STATEMENTS
Unaudited Audited Unaudited
6 months 12 months 6 months
28 Feb 31 Aug 29 Feb
(R`000) 2009 2008 2008
Cash flows from operations (612) 1 768 788
Cash from operations 731 878 1 386
Changes in working capital (1 271) 1 003 (521)
Net interest paid (72) (113) (77)
Cash invested - (368) (10)
Purchase of tangible assets - (368) (10)
Cash (used)/generated by 393 (1 152) (682)
financing activities
Net loans advanced/(repaid) 393 (1 152) (682)
Change in cash and (218) 248 96
equivalents
Opening cash and equivalents 573 325 325
Closing cash and equivalents 355 573 421
COMMENTARY
1.1 Basis for preparation
The interim financial statements for the 6 months ended 28 February 2009 are
unaudited and have been prepared in accordance with International Financial
Reporting Standards ("IFRS"), IAS34, the JSE Limited Listings Requirements and
the Companies Act of South Africa.
1.2 Operational review
A business objective of Zaptronix is to sell systems as a service. The service
gives customers active and real visibility as well as the remote controls needed
in their business operations.
Zaptronix has four business units that deliver operational risk management
solutions to the logistics and energy markets. The brands are Zaptronix
Metering, Eneo Solutions Provider, Duo Solutions Provider and RMS Technology.
The Zaptronix business model is geared to install, finance, maintain and support
systems as a service on electricity systems, transport vehicles and irrigation
systems. The business model works using in-house infrastructure that
incorporates a data centre and the GSM services infrastructure. This
infrastructure not only warehouses business intelligence, it also hosts a number
of proprietary applications. The Zaptronix business model incorporates technical
support, contact centre and control room (24/7 Bureau). These services are
recognised as a competitive advantage.
A second business objective remains to build strong annuity revenue book with
smart customers who are players in the new economies of Southern Africa.
The market for Duo IV TrackingTrade Mark is expanding with a growing need for
cross border, cold chain and other more sophisticated needs for operational
control solutions ("OCS").
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.
Zaptronix is investing in technology partners for its meter range, energy and
load management systems.
New routes to market are being developed with utilities and enterprises that
have a strong national sales network.The style of operation for Zaptronix is
changing from that of a developmental enterprise to being sales driven. These
campaigns are also set up around cross selling opportunities with common
customers, building management and insurance initiatives.
1.3 Financial review
The group remains marginally profitable. With Zaptronix being a young
enterprise, the directors ensure that costs are under control, investment
focused and productivity maintained.
The loss in earnings of R948 045 (EPS 0,25 cents) translates into a headline
earnings of R151 727 (HEPS 0,04 cents) due to the conservative amortisation and
valuation of assets policies.
Duo SP contributes 80% of Zaptronix`s revenue and profit. The positive leverage
lies in the growth in the Zaptronix energy business. The quality of Zaptronix
products, systems and service allows the business to earn good margin. This
endorsement is evident in the maintenance of the overall gross profit margin of
52% compared to 55% (August 2008) and 52% (February 2008).
The working capital invested during the six months has been aimed at Zaptronix
Metering and its products.
Zaptronix is supported by its major shareholder and exposure to third party
gearing is kept below 20% of funds employed. The working capital ratio as at 28
February 2009 was 1.1 compared to 1.0 in August 2008 and 1.3 in February 2008.
Cash generated from operations was 7,3% of turnover (2008: 12%).
1.4 Future prospects
The company was listed on AltX in 2006. The first acquisition, Duo Solutions
Provider, is the core business in the group.
The core competency of Duo Solutions Provider extends into the Duo Bureau and
Duo Data Centre. Zaptronix is earning third party revenue from these facilities
without placing the core business model at risk.
Zaptronix is well positioned with a smart electrical metering range and has just
launched a new generation web-enabled power management tool. Other new
initiatives include the integration of energy management with building
management systems and irrigation automation.
The listing, corporate health and the Zaptronix business model can give access
to the capital market and, with the operational efficiencies in place, Zaptronix
can pursue acquisitions that underpin the core business.
1.5 Dividend
No dividend has been proposed in the growth phase of the company.
For and behalf of the board of directors
TG Kgage K Gribnitz JP Nel J Ramage
(Chairman) (Non-executive) (Executive) (Executive)
28 May 2009
Midrand
Auditors:
PKF (Pretoria) Incorporated
Secretary:
Sylvan CSI (Pty) Limited
Transfer secretaries:
Computershare Investor Services (Pty) Limited
Designated Adviser:
QuestCo Sponsors
Date: 29/05/2009 10:30:02 Produced by the JSE SENS Department.
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