| Mon 28 Sep 2009, 17:36 | | TFX - Top Fix Holdings - Reviewed Results For The Year Ended 30 June 2009 |
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TFX
TFX
TFX - Top Fix Holdings - Reviewed Results For The Year Ended 30 June 2009
Top Fix Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 2006/011359/06)
JSE code: TFX
ISIN: ZAE000088423
("Top Fix" or "the Group")
REVIEWED RESULTS FOR THE YEAR ENDED 30 JUNE 2009
INCOME STATEMENT
Reviewed Audited
Year ended Year ended
30 June 30 June
R`000 2009 2008
Revenue 322 500 227 172
Cost of sales (221 619) (142 806)
Gross profit 100 881 84 366
Net operating expenses (64 892) (58 051)
Operating profit 35 989 26 315
Interest received 3 836 2 767
Interest paid (8 079) (6 353)
Profit before taxation 31 746 22 729
Taxation (9 318) (6 903)
Profit for the year 22 428 15 826
Weighted average shares in issue 203 182 191 806
(`000)
Earnings/diluted earnings per share
(cents)
Earnings per share 11,0 8,3
Headline earnings per share 11,0 8,3
BALANCE SHEET
Reviewed Audited
30 June 30 June
R`000 2009 2008
ASSETS
Non-current assets 179 603 174 777
Property, plant and equipment 120 493 108 584
Goodwill 58 014 58 014
Investment in joint venture 567 -
Loans receivable - 7 746
Deferred taxation 529 433
Current assets 88 505 60 789
Inventories 4 791 2 755
Trade and other receivables 81 905 57 684
Bank and call deposits 1 809 350
TOTAL ASSETS 268 108 235 566
EQUITY AND LIABILITIES
Capital and reserves 179 398 156 970
Non-current liabilities 22 794 22 361
Interest bearing liabilities 14 774 17 823
Deferred taxation 8 020 4 538
Current liabilities 65 916 56 235
Interest bearing liabilities 13 840 8 958
Bank overdrafts and invoice 16 752 15 410
discounting
Trade and other payables 28 837 27 038
Taxation payable 6 487 4 829
TOTAL EQUITY AND LIABILITIES 268 108 235 566
Shares in issue (`000) 203 182 203 182
Net asset value per share (cents) 88,3 77,3
Net tangible asset value per share 59,7 48,7
(cents)
CASH FLOW STATEMENT
Reviewed Audited
Year ended Year ended
30 June 30 June
R`000 2009 2008
Cash flow from operations 8 439 3 555
Cash generated by operations 15 762 14 630
Interest received 3 836 2 767
Interest paid (6 837) (6 353)
Taxation paid (4 322) (7 489)
Cash flow from investing activities (10 155) (61 483)
Investment in/disposal of (234) -
operations
Investment in/disposal of property, (9 921) (53 737)
plant and equipment
Movement in loans receivable - (7 746)
Cash flow from financing activities 1 833 52 672
Proceeds of share issue - 39 521
Movement in loans payable 1 833 13 151
Increase/(decrease) in cash 117 (5 256)
resources
Cash resources at beginning of year (15 060) (9 804)
Cash resources at end of year (14 943) (15 060)
Cash resources (14 943) (15 060)
Bank and call deposits 1 809 350
Bank overdraft and invoice (16 752) (15 410)
discounting
STATEMENT OF CHANGES IN EQUITY
Reviewed Audited
Year ended Year ended
30 June 30 June
R`000 2009 2008
Equity at beginning of year 156 970 101 623
Share issues - 39 521
Attributable profit for the year 22 428 15 826
Equity at end of year 179 398 156 970
SEGMENT ANALYSIS
Reviewed Audited
Year ended Year ended
30 June 30 June
R`000 2009 2008
Revenue
Scaffolding 104 709 97 199
Personnel outsourcing 208 823 122 737
Total revenue 212 245 125 572
Internal (3 422) (2 835)
Safety surveillance 8 968 7 236
Total Group 322 500 227 172
Operating profit
Scaffolding 18 166 18 125
Personnel outsourcing 15 567 7 500
Safety surveillance 2 300 1 452
Head office (44) (762)
Total Group 35 989 26 315
HIGHLIGHTS
- REVENUE UP 42%
- OPERATING PROFIT UP 37%
- EARNINGS PER SHARE UP 33%
COMMENTARY ON THE GROUP`S RESULTS
Group results for the year to 30 June 2009 reflect a significant improvement
over the reported results for the prior year despite the economic downturn
experienced during this period and, further to the Trading Statement published
on SENS on 23 September 2009, the Group reported earnings for the year of R22,4
million, an increase of 42% from the earnings achieved for the year ended 30
June 2008 which flowed through to a 33% increase in headline earnings per share.
As at 30 June 2009 recovery procedures were still in progress in respect of
disputed debtors balances relating to prior financial years. As such the
directors of Top Fix have adopted a prudent approach, and in compliance with
International Financial Reporting Standards ("IFRS"), have reassessed and
retained the provisions raised against the amounts in dispute in prior years.
Net interest charges increased to R4,2 million compared to R3,6 million in the
prior year. The charge for the year ended 30 June 2009, however, includes an
imputed charge on interest free loans of R1,2 million, which was not present in
the prior year. This amount is offset by corresponding fair value adjustment
income of R1,2 million.
A significant increase in accounts receivable, from R58 million last year to R82
million at June 2009 is mainly due to contracts secured during the review period
by the Personnel Outsourcing Division in the Energy Generation sector (new power
stations) and rapid expansion in maintenance of mechanised mining equipment in
the coal industry (existing power stations and exports), which contracts are
expected to continue for over a year, with resultant higher working capital
requirements. The Group cash position has improved significantly since year end.
Scaffolding
In spite of current economic conditions, Scaffolding achieved an operating
profit for the year of R18,2 million, in line with that achieved in the previous
year. These results support the capital expansion in this operation in prior
years and the division continues to perform strongly in the new year.
Personnel Outsourcing
Personnel Outsourcing achieved an operating profit for the year of R15,6
million, double that achieved for last year. This is due to new contracts
received as detailed above.
Safety Surveillance
Safety Surveillance achieved an operating profit of R2,3 million, 58% above the
previous year.
JOINT VENTURE
The Group entered into an agreement whereby 51% of its investment in subsidiary,
Umdeni Labour Services (Pty) Limited was sold to Black Economic Empowerment
partners for R1. The effect on earnings in the current year was insignificant.
Agreements have been entered into to develop the company as a Black Enterprise
Development vehicle.
RELATED PARTY TRANSACTIONS
An amount of R16,3 million is due to MBM Technical Services (Pty) Ltd, a company
controlled by Mr BW Marais. R8 million of the loan is unsecured, currently
interest free and repayable subject to 12 months notice, which notice was
received on 1 July 2009. The remaining R8,3 million bears interest at the prime
overdraft rate plus 1% and is repayable on demand.
FUTURE PROSPECTS
The recent Scaffolding expansion programme and local shortage of skilled
artisans leave both the Scaffolding and Personnel Outsourcing operations well
placed to take advantage of opportunities in South Africa. Should there be no
further economic deterioration, the Group expects to achieve satisfactory
results for the year to 30 June 2010.
BASIS OF PREPARATION AND ACCOUNTING POLICIES
The reviewed results for the year ended 30 June 2009 have been prepared in
accordance with International Financial Reporting Standards, IAS34, the JSE
Listing Requirements and the Companies Act of South Africa. The financial
information for the year ended 30 June 2009 has been prepared adopting the same
accounting policies used in the most recent annual financial statements.
CAPITAL COMMITMENTS AND CONTINGENCIES
The Group had no significant outstanding capital commitments or contingencies as
at 30 June 2009.
REVIEW OPINION
These results have been reviewed by Top Fix`s auditors, PKF (Jhb) Inc., and
their unqualified review opinion is available for inspection at the company`s
registered office.
DIVIDEND DECLARATION
In line with current Group policy, no dividend has been declared for the year.
For and on behalf of the Board
BT Ngcuka (Chairman)
BW Marais (Chief Executive)
28 September 2009
Directors
BT Ngcuka* (Chairman)
BW Marais (CEO)
JA Barker (Financial Director)
KG Galesitoe*#
FF Goosen
JJ Senekal*#
KT Nondumo*#
F Swart*
PR Todd
(*non-executive) (#independent)
Secretary and Registered Office
MN Hattingh, 6 Topaz Street
Littleton Manor, Centurion 0157
Transfer Secretaries
Link Market Services South Africa (Pty) Limited, 11 Diagonal Street,
Johannesburg 2000(PO Box 4844, Johannesburg 2001)
Designated Advisor:
PSG Capital (Pty) Limited
Website: www.topfix.co.za
Date: 28/09/2009 17:36:57 Produced by the JSE SENS Department.
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