| Fri 25 Sep 2009, 7:47 | | DYM - Dynamic Cables RSA Limited - Unaudited Interim Results for the Six Months |
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DYM
DYM
DYM - Dynamic Cables RSA Limited - Unaudited Interim Results for the Six Months
Ended 30 June 2009
DYNAMIC CABLES RSA LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/001807/06)
Share code: DYM & ISIN: ZAE000028270
("Dynamic Cables" or "the company" or "the group")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2009
ACQUISITION OF A 25.4% INTEREST IN TRI-INVEST 5 (PTY) LIMITED AND WITHDRAWAL OF
CAUTIONARY ANNOUNCEMENT
Abridged Consolidated Statement of Comprehensive Income
Unaudited Unaudited Audited
Six months to Six months to Year to
30 June 30 June 31 December
2009 2008 2008
R`000 R`000 R`000
Turnover 46 890 57 374 123 474
Gross profit 16 533 15 731 36 611
Operating profit before
capital items 2 109 3 779 9 529
Fair value adjustment 24 - 79
Impairment of intangible asset (9 235) - -
Impairments of financial assets (4 294) - (8 191)
Income from investments 1 632 815 1 343
Finance costs (1 428) (1 602) (3 562)
Profit/(Loss) before taxation (11 192) 2 992 (802)
Taxation (1 119) (1 431) (3 034)
Profit/(Loss) for the period (12 311) 1 561 (3 836)
Total comprehensive
income/(loss) for the period (12 311) 1 561 (3 836)
Attributable to:
Owners of the parent (12 311) 1 561 (3 836)
Minority interest - - -
Basic (loss)/earnings per
share (cents) (15.7) 2.0 (4.9)
Headline earnings/(loss)
per share (cents) (10.2) 2.0 5.5
Abridged Consolidated Statement of Cash Flow
Unaudited Unaudited Audited
Six months to Six months to Year to
30 June 30 June 31 December
2009 2008 2008
R`000 R`000 R`000
Cash flow from operating
activities 4 156 224 5 677
Cash receipts from customers 44 804 45 396 123 266
Cash paid to suppliers and
employees (39 788) (43 345) (111 071)
Cash (utilised)/generated
by operations 5 016 2 051 12 194
Interest paid (1 302) (1 477) (3 356)
Dividends received - - 6
Interest received 1 632 815 1 337
Taxation paid (1 190) (1 165) (4 505)
Cash flow from investing
activities (1 116) (1 021) (2 604)
Additions to property,
plant and equipment (1 116) (678) (2 431)
Proceeds on disposal of
property, plant and equipment 6 - 480
Purchase of investment property (470) - -
Sale of other financial assets 464 (343) (654)
Cash flow from financing activities (623) (4 411) (4 760)
Proceeds from other
financial liabilities 912 - 913
Repayment of shareholders` loan (282) (3 871) (4 839)
Decrease in long-term borrowings (1 253) (540) (833)
Net increase/(decrease) in cash 2 417 (5 208) (1 687)
Cash surplus at the
beginning of the period 18 269 19 956 19 956
Cash resources at the end
of the period 20 686 14 748 18 269
Supplementary Information
Unaudited Unaudited Audited
Six months to Six months to Year to
30 June 30 June 31 December
2009 2008 2008
Shares in issue (`000) 78 421 78 421 78 421
Net asset value per share (cents) 54.5 77.1 70.2
Capital expenditure (R`000) 1 586 678 2 431
Depreciation, amortisation
and impairment charge (R`000) 1 042 835 2 285
Finance and operating lease
commitments (R`000) 3 767 - 4 495
Profit/(Loss) attributable
to ordinary shareholders
(R`000) (12 311) 1 561 (3 836)
RECONCILIATION OF HEADLINE
EARNINGS R`000 R`000 R`000
Net profit/(loss) for the period (12 311) 1 561 (3 836)
Impairment of financial assets 4 294 - 8 191
Fair value adjustment - - (79)
Tax effect - - (15)
Headline earnings (8 017) 1 561 4 261
Abridged Consolidated Statement of Financial Position
Unaudited Unaudited Audited
30 June 30 June 31 December
2009 2008 2008
R`000 R`000 R`000
ASSETS
Non-current assets 18 655 40 169 31 238
Property, plant and equipment 8 128 8 236 8 060
Investment property 3 370 2 609 2 871
Intangible assets - 9 235 9 235
Financial assets 5 841 18 924 10 135
Deferred tax 1 316 1 165 937
Current assets 71 487 80 711 68 810
Inventories 17 942 24 047 19 629
Trade and other receivables 17 021 26 705 14 935
Loans to shareholders 14 166 12 819 13 884
Financial assets 531 272 1 001
Current tax receivable 1 141 618 1 092
Cash and cash equivalents 20 686 16 250 18 269
Total assets 90 142 120 880 100 048
EQUITY
Equity attributable to equity
holders of the company 42 772 60 481 55 083
Share capital and premium 118 764 118 764 118 764
Accumulated losses (75 992) (58 283) (63 681)
LIABILITIES
Non-current liabilities 6 519 5 874 6 520
Borrowings 3 412 3 019 3 640
Deferred tax liability 3 107 2 855 2 880
Current liabilities 40 851 54 525 38 445
Trade and other payables 25 857 36 830 23 592
Current income tax liabilities 14 062 15 449 13 933
Loans from shareholders 97 - 97
Short-term portion of non-current
liabilities 835 743 823
Bank overdraft - 1 503 -
Total equity and liabilities 90 142 120 880 100 048
Consolidated Statement of Changes in Equity
Share Share Accumulated
capital premium profit/(loss) Total
Unaudited R`000 R`000 R`000 R`000
Balance at 1 January
2008 (audited) 3 921 114 843 (59 845) 58 920
Total comprehensive loss
for the period (3 836) (3 837)
Balance at 31 December
2008 (audited) 3 921 114 843 (63 681) 55 083
Total comprehensive loss
for the period (12 311) (12 311)
Balance at 30 June 2009 3 921 114 843 (75 992) 42 772
Segmental Information
Six months to 30 June 2009
Infrastructure Connectivity
equipment supplies Total
R`000 R`000 R`000
Geographical segment
Revenue 26 598 20 292 46 890
- Gauteng - 11 175 11 175
- Western Cape 26 598 9 117 35 715
Operating profit 1 292 817 2 109
- Gauteng - 361 361
- Western Cape 1 292 456 1 748
Total assets 29 382 60 760 90 142
- Gauteng - 10 508 10 508
- Western Cape 29 382 50 252 79 634
Geographical segments
The company operates locally with outlets in Gauteng and the Western Cape.
Commentary
1. Basis of preparation
The abridged interim consolidated financial statements for the six months ended
30 June 2009 were prepared in accordance with IAS 34 - Interim Financial
Reporting, IFRS and in compliance with the Listings Requirements of the JSE
Limited. They do not include all of the information required in annual
financial statement statements in accordance with IFRS, and should be read in
conjunction with the consolidated financial statements of the group for the
year ended 31 December 2008.
2. Significant accounting policies
These abridged consolidated interim financial statements have been prepared in
accordance with the accounting policies adopted in the last annual financial
statements for the year to 31 December 2008, except for the adoption of:
- IAS 1 Presentation of Financial Statements (Revised 2007)
- IFRS 8 Operating Segments
- IAS 23 Borrowing Costs (Revised 2007)
- IFRIC 13 Customer Loyalty Programmes
The accounting policies have been applied consistently throughout the group for
the purpose of the preparation of these abridged consolidated interim financial
statements.
3. Interim operations
The group experienced difficult trading conditions during the six months under
review. Turnover declined by 18% but a strong focus on input cost and other
cost control measures resulted in better gross profit margins with a 5%
increase in gross profit. However, total non-cash impairments to intangible and
financial assets of R13.529 million resulted in the group posting a loss for
the period of R12.311 million. We expect that trading conditions will remain
challenging for the remainder of the year.
4. Changes to the board
The following changes to the board of directors of Dynamic has been made with
effect from 25 September 2009:
- Mr S L Rai has resigned as director and Acting Chairman;
- Mr H Takolia as an independent non-executive director takes over the role of
Acting Chairman; and
- Mr P Volkwyn has been appointed as an independent non-executive director.
5. Acquisition of a 25.4% interest in Tri-Invest 5 (Proprietary) Limited
("Tri-Invest") and withdrawal of cautionary announcement
5.1 Introduction and terms
Further to the cautionary announcement dated 22 September 2009 shareholders are
advised that Dynamic has entered into a subscription agreement to subscribe for
new ordinary shares in Tri-Invest which will result in Dynamic owning 25.4% of
the issued ordinary share capital of Tri- Invest. The total subscription price
is R2 823 750 and will be settled by the issue of 18 825 000 new Dynamic
ordinary shares at an issue price of 15 cents per share, which represents a
discount of approximately 10% to the 30-day volume weighted average price up to
and including 21 September 2009. The transaction is effective immediately and
there are no outstanding conditions precedent.
5.2 Rationale
Tri-Invest is a diversified engineering business delivering specific
engineering solutions to the mining industry. Its engineering capabilities and
strong customer base will allow Dynamic to expand its own engineering
activities and open up new markets for both companies.
5.3 Financial effects
The unaudited pro forma financial effects of the transaction ("the financial
effects"), based on the published unaudited interim results of Dynamic for the
six months ended 30 June 2009, are set out below. The financial effects have
been prepared for illustrative purposes only to provide information on how the
acquisition may have impacted on the results and financial position of Dynamic.
Preparation of the financial effects is the responsibility of the directors
and, because of its nature, the financial effects may not fairly represent
Dynamic`s financial position after the transaction or the effect on future
earnings.
Change
Before After %
Loss per share (cents) 15.7 12.2 (22.2)
Headline loss per share (cents) 10.2 7.8 (23.7)
Net asset value per share (cents) 54.5 46.9 (14.0)
Tangible net asset value per share (cents) 54.5 46.9 (14.0)
Number of and weighted average number
of shares in issue (`000) 78 421 97 246
Notes and assumptions:
1. The figures in the "Before" column are extracted from the interim results
announcement of which this announcement forms part.
2. The figures in the "After" column are based on the following assumptions:
a. that the subscription took place on 1 January 2009 for earnings and headline
earnings purposes and on 30 June 2009 for net asset value purposes; and
b. that the unaudited results of Tri-Invest for the year ended 28 February 2009
has been achieved evenly throughout the year.
5.4 Categorisation and withdrawal of cautionary announcement
The transaction is categorised as a Category 2 transaction in terms of the JSE
Limited Listings Requirements.
As the terms of the transaction have been announced, shareholders are no longer
required to exercise caution when dealing in their Dynamic shares.
For and behalf of the board
T D Rai
Chief Executive
25 September 2009
Cape Town
Sponsor
Sasfin Capital
A division of Sasfin Bank Limited
Board of directors
** H Takolia (Acting Chairman), T D Rai (Chief Executive), *# M J I Brown,
** P Volkwyn
*Non-executive **Independent non-executive # British
Date: 25/09/2009 07:47:01 Produced by the JSE SENS Department.
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