| Tue 13 Oct 2009, 17:12 | | CMA - Command - Second Reviewed Interim Financial Results For The Period |
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CMA
CMA
CMA - Command - Second Reviewed Interim Financial Results For The Period
Ended 30 June 2009
Command Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1999/014759/06)
Share code: CMA & ISIN: ZAE000023131
("Command" or "the Group" or "the Company")
SECOND REVIEWED INTERIM FINANCIAL RESULTS FOR THE PERIOD ENDED 30 JUNE 2009
GROUP CONSOLIDATED INCOME STATEMENTS
Reviewed Audited
12 months 12 months
ended ended
30 June 30 June
2009 2008
R000`s R000`s
Revenue 153 247 148 069
Cost of sales (100 623) (94 828)
Gross profit 52 624 53 241
Operating costs
Selling and administrative expenses (36 140) (37 581)
Attributable income incurred from trade 16 484 15 660
Other income 48 6
Net profit before interest 16 532 15 666
Interest paid on borrowings (1 139) (1 528)
Interest received 716 689
Attributable profit 16 109 14 827
Other net non-operating costs (2 927) (2 804)
Net profit before taxation 13 182 12 023
Taxation (2 878) (1 800)
Net profit for the period 10 304 10 223
Ordinary shareholders` net profit 10 304 10 223
Earnings per share (cents) 7.79 7.73
Headline earnings per share (cents) 7.79 7.73
Weighted number of shares (`000) 132 250 132 250
GROUP CONSOLIDATED BALANCE SHEETS
Reviewed Audited
At At
30 June 30 June
2009 2008
R000`s R000`s
ASSETS
Non-current assets
Tangible assets 9 662 8 954
Intangible assets 5 897 5 987
Deferred taxation 6 230 5 189
Investments, loans and rental advances 7 510 4 516
Total non-current assets 29 299 24 646
Current assets
Inventories 589 328
Accounts receivable 35 469 22 344
Bank balances and cash 3 408 6 857
Total current assets 39 466 29 529
Total assets 68 765 54 175
EQUITY AND LIABILITIES
Capital and reserves 1 1
Share premium 16 338 16 338
Retained income 36 773 26 469
Total capital reserves 53 113 42 808
Non-current liabilities
Long-term borrowings 2 603 2 185
Total non-current liabilities 2 603 2 185
Current liabilities
Short-term borrowings 3 525 2 612
Accounts payable and accruals 5 505 3 389
Taxation 1 340 1 287
Provisions 2 680 1 894
Total current liabilities 13 049 9 182
Total equity and liabilities 68 765 54 175
Net assets per share (cents) 40.16 32.37
GROUP CONSOLIDATED CASH FLOW STATEMENTS
Reviewed Audited
12 months 12 months
ended ended
30 June 30 June
2009 2008
R000`s R000`s
Cash flows from operating activities (1 459) 7 024
Cash flows from financing activities (201) (92)
Cash flows from investment activities (1 788) (7 727)
Net movement in cash resources (3 449) (795)
Cash resources at beginning of period 6 857 7 652
Cash resources at end of period 3 408 6 857
GROUP CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share
Share capital and Retained
capital premium income
R000`s R000`s R000`s
Balance at 30 June 2007 1 16 339 16 246
Ordinary shareholders` net income - - 10 223
Balance at 30 June 2008 1 16 339 26 469
Ordinary shareholders` net income - - 6 113
Balance at 31 December 2008 1 16 339 32 582
Ordinary shareholders` net income - - 4 191
Balance at 30 June 2009 1 16 339 36 773
GROUP SEGMENTAL REVIEW
Guarding
Services Total
R000`s R000`s
Revenue 153 247 153 247
Earnings 10 304 10 304
Assets 68 765 68 765
Liabilities 15 652 15 652
Depreciation 3 345 3 345
% %
Revenue 100 100
Earnings 100 100
Assets 100 100
Liabilities 100 100
Depreciation 100 100
GENERAL REVIEW
Nature of business
The Group offers value-added guarding, cash in transit, forensic investigation,
electronic security, alarm installations and monitoring, armed response service
and security consultancy.
Chief executive officer`s review
The Group`s businesses continue to perform satisfactorily. The Group made a
profit of R10.304 million during the period. The prevailing downturn in the
economy had an impact on the Group`s revenue growth compared to the previous
four years. The Guarding Division continued to secure new contracts despite the
depressed corporate spending environment. The Group is well positioned with its
Black Economic Empowerment credentials and experienced management to grow
organically. In order to align its reporting with its business cycle and
operational requirements Command has changed its year-end from 30 June to
31 December, consequently these results are second reviewed interim results and
audited results for the 18 months ending 31 December 2009 will follow in early
2010.
Financial result
The Board is pleased to report to shareholders a slightly improved performance
for the twelve-month period July 2008 to June 2009 compared to the prior year
ended June 2008. Revenue for the Group increased by 3.5% (R153.247 million)
(2008: R148.069 million). Net profit before taxation attributable to
shareholders increased by 9.6% to R13.182 million (2008: R12.023 million). The
increase in fuel and labour costs continue to impact on the Group`s profits.
Headline earnings per share increased from 7.73 cents to 7.79 cents. Management
will continue to contain costs as a key focus for the year ahead.
Preparation of the reviewed interim results/accounting policies
These consolidated financial statements have been prepared in accordance with
International Financial Reporting Standards ("IFRS") and IAS 34 - Interim
Financial Reporting using accounting policies which are consistent with those
for the year ended 30 June 2008 and comply with the relevant sections of the
Companies Act of South Africa and the Listings Requirements of the JSE Limited.
Independent review
These results have been reviewed by the Company`s auditors, SAB&T Chartered
Accountants Incorporated, whose unqualified review opinion is available at the
Company`s registered office. SAB&T have been appointed with effect from
17 September 2009.
Events subsequent to Balance sheet date
The Board is not aware of any material events that occurred after Balance sheet
date.
Prospects
The Group continues to seek opportunities in line with its focused strategy and
service delivery. The challenge for the Group will be to retain and grow market
share and to ensure that it is strategically well positioned to benefit from any
upswing in the economy. The Group`s BEE status will place it in an advantageous
position to secure parastatal business.
Cautionary announcement
Further to the cautionary announcement dated 31 March 2009, renewed on Tuesday,
19 May 2009, Wednesday, 1 July 2009 and on Thursday, 13 August 2009,
shareholders are advised that negotiations are still in progress which, if
successfully concluded, may have a material effect on the price of the Company`s
securities. Accordingly, shareholders are advised to continue exercising caution
when dealing in the Company`s securities until a full announcement is made.
By order of the Board
ZJ Sithole MS Mowzer
Non-executive Chairman Chief Executive Officer
Cape Town
13 October 2009
Directors: ZJ Sithole (Non-executive Chairman), MS Mowzer (Chief Executive
Officer), S Banda (Executive), MI Parker (Non-executive), KG Druker
(Non-executive) and FM Moshesh (Non-executive) continued to serve as directors
during the period under review.
Company Secretary: Coastal Corporate Registrations CC - DC McLachlan
Transfer Secretaries: Computershare Investor Services (Pty) Limited,
Ground Floor, 70 Marshall Street, Johannesburg, 2001 (PO Box 61051,
Marshalltown, 2107)
Registered Office: 106 De Wet Road, Goodwood, 7463 (PO Box 13763, N1 City, 7463)
Sponsor: Deloitte & Touche Sponsor Services (Pty) Limited
Date: 13/10/2009 17:12:18 Produced by the JSE SENS Department.
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