|
MMG
MMG
MMG - MICROmega - Unaudited Interim Results For the Six Months Ended
30 June 2009
MICROmega Holdings Limited
(incorporated in the Republic of South Africa)
Registration number 1998/003821/06
Share code MMG ISIN ZAE000034435
("MICROmega" or "the Company")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2009
- Increase In Revenue 2%
- Decrease In Attributable Earnings Per Share -70%
- Decrease In Headline Earnings Per Share -52%
- Increase In Net Asset Value Per Share 16%
- Increase In Net Tangible Asset Value Per Share 22%
CONDENSED GROUP STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
six months six months year
ended ended ended
30 June 30 June 31 December
2009 2008 2008
R(`000) R(`000) R(`000)
Revenue 394 532 386 314 843 772
Revenue from continuing operations 375 236 327 448 703 045
Revenue from discontinued operations 19 296 58 866 140 727
Cost of Sales (282 972) (273 166) (573 043)
Gross Profit 111 560 113 148 270 729
Gross profit from continuing operations 116 719 103 141 213 985
Gross (loss)/ profit from discontinued
operations (5 159) 10 007 56 744
Other income 4 001 18 058 31 011
Other expenses (93 530) (85 864) (230 623)
Operating profit 22 031 45 342 71 117
Net finance (expense)/income (3 352) 1 083 4 280
Shares of profits in associates 586 587 99
Profit before tax 19 265 47 012 75 496
Profit before tax from continuing
operations 27 017 30 444 53 108
(Loss) / profit before tax from
discontinued operations (7 752) 16 568 22 388
Taxation expense (5 397) (9 292) (13 570)
Profit for the period 13 868 37 720 61 926
Profit from continuing operations 19 450 22 151 38 852
(Loss) / profit from discontinued
operations (5 582) 15 569 23 074
Other comprehensive income
Foreign currency translation differences
for foreign operations 61 (2) (23)
Total comprehensive income for the period 13 929 37 718 61 903
Profit attributable to:
Owners of MICROmega Holdings Limited 10 991 36 141 60 241
Non-controlling interest in subsidiaries 2 877 1 579 1 685
Total comprehensive income attributable
to:
Owners of MICROmega Holdings Limited 11 052 36 139 60 218
Non-controlling interest in subsidiaries 2 877 1 579 1 685
Reconciliation of headline earnings
Net profit attributable to ordinary
shareholders 10 991 36 141 60 241
Profit on disposal of property,
plant and equipment (117) (69) (101)
Impairment of property, plant and
equipment 297 - -
Reversal of impairment of property, plant
and equipment - - (88)
Negative goodwill 3 - (13 001) (20 820)
Headline earnings 11 171 23 071 39 232
Headline earnings per share (cents) 11.52 23.99 40.26
Earnings per share (cents) 11.34 37.57 61.82
Diluted earnings per share (cents) 11.26 37.18 61.35
Weighted average number of shares 96 930 96 184 97 438
Diluted weighted average shares in issue 97 579 97 211 98 198
Total number of shares in issue 96 845 96 759 97 110
CONDENSED GROUP STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
six months six months year
ended ended ended
30 June 30 June 31 December
2009 2008 2008
R(`000) R(`000) R(`000)
ASSETS
Non-current assets 174 612 165 632 144 654
Property, plant and equipment 54 822 74 637 55 181
Intangible assets 66 494 64 666 64 468
Investments in associates 5 321 4 959 5 527
Other investments 6 742 7 440 6 737
Loans receivable 23 374 1 114 349
Deferred tax asset 17 859 12 816 12 392
Current assets 252 954 257 938 295 347
Inventories 62 069 102 491 91 059
Retirement benefits 17 971 - 17 971
Trade and other receivables 112 603 122 801 124 564
Current portion of loans receivable 5 716 637 689
Cash and cash equivalents 26 508 32 009 30 365
Non-current assets held for sale 28 087 - 30 699
Total assets 427 566 423 570 440 001
EQUITY AND LIABILITIES
Equity 274 107 228 876 260 248
Share capital and premium 191 229 190 686 191 649
Non-distributable reserves 6 075 5 286 5 664
Retained earnings 61 588 26 497 50 597
Total equity attributable to equity
holders of the company 258 892 222 469 247 910
Minorities interests 15 215 6 407 12 338
Non-current liabilities 26 508 39 398 16 280
Loans and borrowings 19 115 37 960 8 789
Deferred tax liability 7 393 1 438 7 491
Current liabilities 126 951 155 296 163 473
Bank overdraft 16 572 10 044 13 025
Trade and other payables 80 961 124 687 117 773
Derivative liability - - 282
Provisions - 302 64
Current portion of loans and borrowings 22 706 9 830 23 791
Taxation 6 712 10 433 8 538
Total equity and liabilities 427 566 423 570 440 001
Net asset value per share (cents) 267.33 229.92 255.29
Net tangible asset value per share 198.67 163.09 188.90
(cents)
CONDENSED GROUP STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
six months six months year
ended ended ended
30 June 30 June 31 December
2009 2008 2008
R(`000) R(`000) R(`000)
Cash generated by operations 27 575 38 064 64 768
Movement in working capital 4 096 (15 506) (8 172)
Net finance (expenses) /income (3 341) 1 174 4 280
Taxation paid (12 744) (7 146) (13 644)
Net cash from operating activities 15 586 16 586 47 232
Net cash used in investing activities (31 413) (22 606) (42 540)
Loans raised 13 787 - -
Loans repaid (4 945) (18 439) (32 534)
Treasury shares repurchased (419) (4 871) (6 113)
Net cash used in finance activities 8 423 (23 310) (38 647)
Net decrease in cash and cash
equivalents (7 404) (29 330) (33 955)
Represented as follows:
Cash and cash equivalents at beginning
of year 17 340 51 295 51 295
Cash and cash equivalents at end of
the period 9 936 21 965 17 340
Net decrease in cash and cash
Equivalents (7 404) (29 330) (33 955)
GROUP STATEMENT OF CHANGES IN EQUITY
Share Share Share- Revalu- Foreign Deal
capital premium based ation currency differ-
payment reserve transla- ence
reserve tion reserve
reserve
R(`000) R(`000) R(`000) R(`000) R(`000) R(`000)
Balance as at 1 January 982 193 138 1 453 2 490 2 1 000
2008
Total comprehensive - - - - (2) -
income for the period
(net of income tax)
Business combinations - - - - - -
Issue of share capital 8 1 401 - - - -
Share issue costs - (12) - - - -
Treasury share purchases (22) (4 848) - - - -
Share based payments: IFRS 2 - 39 343 - - -
Balance as at 30 June 968 189 718 1 796 2 490 - 1 000
2008
Total comprehensive - - - - (21) -
income for the period
(net of income tax)
Deferred tax effect on - - - (102) - -
revaluation of property,
plant and equipment
Business combinations - - - - - -
Issue of share capital 8 2 142 - - - -
Treasury share purchase (5) (1 238) - - - -
Share based payments: IFRS 2 - 56 501 - - -
Balance as at 31 December 971 190 678 2 297 2 388 (21) 1 000
2008
Total comprehensive - - - - 61 -
income for the period
(net of income tax)
Treasury share purchases (3) (417) - - - -
Share based payments: IFRS 2 - - 350 - - -
Balance as at 30 June 968 190 261 2 647 2 388 40 1 000 2009
Retained earnings Total Minority Total
(accumulated loss) interest equity
R(`000) R(`000) R(`000) R(`000)
Balance as at 1 January (9 644) 189 421 4 262 193 683
2008
Total comprehensive 36 141 36 139 1 579 37 718
income for the period
(net of income tax)
Business combinations - - 566 566
Issue of share capital - 1 409 - 1 409
Share issue costs - (12) - (12)
Treasury share purchases - (4 870) - (4 870)
Share based payments: IFRS 2 - 382 - 382
Balance as at 30 June 26 497 222 469 6 407 228 876
2008
Total comprehensive 24 100 24 079 106 24 185
income for the period
(net of income tax)
Deferred tax effect on - (102) - (102)
revaluation of property,
plant and equipment
Business combinations - - 5 825 5 825
Issue of share capital - 2 150 - 2 150
Treasury share purchase - (1 243) - (1 243)
Share based payments: IFRS 2 - 557 - 557
Balance as at 31 December 50 597 247 910 12 338 260 248
2008
Total comprehensive 10 991 11 052 2 877 13 929
income for the period
(net of income tax)
Treasury share purchases - (420) - (420)
Share based payments: IFRS 2 - 350 - 350
Balance as at 30 June 61 588 258 892 15 215 274 107
2009
NOTES TO THE FINANCIAL STATEMENTS
1. Basis of preparation
The condensed consolidated interim financial statements have been prepared in
compliance with the Listing Requirements of the JSE Limited, International
Accounting Standard (IAS) 34 - Interim Financial Reporting and Schedule 4 of the
South African Companies Act, No 60 of 1973, as amended.
2. Significant account policies
The condensed consolidated interim financial statements have been prepared using
accounting policies that comply with the International Financial Reporting
Standards (IFRS). The accounting policies used are consistent with those used in
the annual financial statements for the year ended 31 December 2008.
3. Negative goodwill
Negative goodwill in the prior year arose as a result of the acquisition of two
subsidiaries, namely Kolbenco (Proprietary) Limited and Ocneblok Properties
(Proprietary) Limited. The negative goodwill was recognized in the statement of
comprehension income as per IFRS 3 - Business Combinations. The negative
goodwill was removed from the calculation of headline earnings as per IAS 33 -
Earnings per share.
4. Segment information
SEGMENT REVENUE
Unaudited Unaudited Audited
six months six months year
ended ended ended
30 June 30 June 31 December
2009 2008 2008
R(`000) R(`000) R(`000)
Financial services
External sales 16 215 19 892 33 962
Inter-segment sales - - -
Support services
External sales 184 274 141 737 350 770
Inter-segment sales - - -
Information technology
External sales 87 380 44 555 98 964
Inter-segment sales - - -
Automotive components
External sales 106 663 180 130 360 076
Inter-segment sales - - -
Total revenue 394 532 386 314 843 772
SEGMENT PROFIT/(LOSS)
Unaudited Unaudited Audited
six months six months year
ended ended ended
30 June 30 June 31 December
2009 2008 2008
R(`000) R(`000) R(`000)
Financial services 3 343 2 748 9 098
Support services 7 283 9 817 15 908
Information technology 12 680 2 160 8 211
Automotive components (6 664) 24 687 29 693
Holding company (5 651) (3 271) (2 669)
Total profit 10 991 36 141 60 241
SEGMENT ASSETS
Unaudited Unaudited Audited
six months six months year
ended ended ended
30 June 30 June 31 December
2009 2008 2008
R(`000) R(`000) R(`000)
Financial services 31 907 46 228 33 153
Support services 62 109 58 004 72 808
Information technology 116 110 73 091 87 386
Automotive components 210 636 239 138 239 798
Holding company 6 804 7 109 6 856
Total profit 427 566 423 570 440 001
COMMENTARY ON RESULTS
We are satisfied with the corporate performance for the six month period
albeit attributable earnings are down 70%. The decline in earnings of R24
million year- on- year can be attributed to two principle causes. Firstly,
there is a reduction in earnings of R21 million arising from the closure
of Kolbenco in December 2008, and the need to raise further provisions in
the current period to recognise the subsequent impairment of the Kolbenco
assets that have not been disposed of as at June 2009. Secondly, the
strengthening of the Rand against the Dollar contributed to a R4 million
loss on Dollar based receivables.
Giving consideration to the aforementioned, and the extended economic
slowdown that we have experienced in the automotive sector, we are
satisfied that our diverse investment portfolio has shielded us against an
excessive erosion in the profitability of our combined businesses. This
fact is borne out by the retention of revenue demonstrated in these
results, albeit at reduced margins, and our ability to grow our
information technology businesses, which we remain confident will continue
throughout the remainder of the year.
By order of the board
30 September 2009
Directors:
I G Morris (Chairman)
D S E Carlisle (Financial Director)
P V Henwood (Non-executive)
R C Lewin (Non-executive)
J E Newbury (Non-executive)
Company Secretary: G W Schnehage
Transfer Secretaries: Computershare Investor Services 2004 (Pty) Ltd
Sponsor: Investec Bank Limited
Auditor: KPMG Inc
Date: 30/09/2009 13:54:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
