| Wed 2 Dec 2009, 12:09 | | ZPT - Zaptronix - Reviewed annual results for the year ended 31 August 2009 |
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ZPT
ZPT
ZPT - Zaptronix - Reviewed annual results for the year ended 31 August 2009
ZAPTRONIX LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1997/014928/06)
(Share Code: ZPT ISIN Code: ZAE000070934)
("Zaptronix" or "the Company")
REVIEWED ANNUAL RESULTS FOR THE YEAR ENDED 31 AUGUST 2009
HIGHLIGHTS
- Revenue up 29.5%
- EBITDA up 198%
CONDENSED CONSOLIDATED BALANCE SHEETS AS AT 31 AUGUST 2009
31 Aug 09 31 Aug 08
(Reviewed) (Audited)
R R
Assets
Non-current assets
Property, plant and equipment 4 853 769 5 770 368
Intangible assets 1 177 083 2 218 918
Deferred tax asset - 30 033
Current assets
Inventories 2 015 781 2 568 149
Trade and other receivables 4 052 296 1 747 772
Cash and cash equivalents 119 622 572 518
Other financial assets 265 498 150 459
Total assets 12 484 049 13 058 217
Equity and liabilities
Equity
Share capital 29 632 341 29 632 341
Reserves 170 149 170 149
Accumulated loss -26 976 540 -24 737 295
Liabilities
Non-current liabilities
Other financial liabilities (interest bearing) 487 128 1 288 603
Deferred tax 278 726 267 597
Current liabilities
Finance leases - 58 092
Trade and other payables 5 185 411 3 153 015
Other financial liabilities(interest bearing) 2 818 529 1 069 217
Provisions 891 306 353 355
Total equity and liabilities 12 484 049 13 058 217
Number of shares in issue 379 318 934 379 318 934
Net asset value per share (cents) 0.76 1.19
Tangible net asset value per share (cents) 0.44 0.60
CONDENSED CONSOLIDATED INCOME STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2009
31 Aug 09 31 Aug 08
(Reviewed) (Audited)
R R
Revenue 29 017 524 22 399 096
Gross profit 19 827 640 12 445 418
Other income 487 697 645 002
Operating costs -20 151 526 -13 269 313
Operating profit/(loss) (EBITDA) 163 811 -178 893
Depreciation and amortisation -2 097 967 -2 094 935
Net loss before interest and taxation -1 934 156 -2 273 828
Interest paid -290 679 -152 920
Interest received 23 752 40 034
(Loss)/profit before taxation -2 201 083 -2 386 714
Taxation -41 161 -189 057
(Loss)/profit for the period -2 242 245 -2 575 771
Basic earnings per share (cents) -0.59 -0.68
Headline earnings per share (cents) -0.59 -0.41
Reconciliation of headline earnings:
Net profit attributable to ordinary shareholders -2 242 245 -2 575 771
Adjusted for profit on disposal of property, 0 1 021 534
plant and equipment
Total tax effect of the adjustments 0 0
Headline earnings attributable to ordinary -2 242 245 -1 554 237
shareholders
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEAR ENDED 31
AUGUST 2009
Share Reserves Accumulated Total
capital loss
Balance at 1 September 29 632 341 419 198 -22 212 051 7 839 488
2007
Currency translation -198 522 -198 522
differences
Realisation of revalued -50 527 50 527 -
assets
Profit for the year -2 575 771 -2 575 771
Balance at 1 September 29 632 341 170 149 -24 737 295 5 065 195
2008
Loss for the year -2 242 245 -2 242 245
Balance as at 31 August 29 632 341 170 149 -26 979 540 2 822 950
2009
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS FOR THE YEAR ENDED 31 AUGUST
2009
31 Aug 09 31 Aug 08
(Reviewed) (Audited)
R R
Cash flows from operating activities
Cash generated from operations 820 815 1 881 357
Finance income 23 752 40 034
Finance costs -290 679 -152 920
Net cash from operations 553 888 1 768 471
Cash flows from investing activities
Purchase of property, plant and equipment - -642 301
Disposal of property, plant and equipment 274 380
Net cash flow from investing activities - -367 921
Cash flow from financing activities
Repayment of other financial liabilities -948 692 -1 072 870
Finance lease repayments -58 092 -80 444
Net cash flow from financing activities -1 006 784 -1 153 314
Total cash movement for the year -452 896 247 236
Cash at the beginning of the year 572 518 325 281
Total cash at end of the year 119 622 572 517
CONDENSED CONSOLIDATED SEGMENT REPORT FOR THE YEAR ENDED 31 AUGUST 2009
31 Aug 09 31 Aug 08
(Reviewed) (Audited)
R R
Segment Revenue:
Tracking Services 14 858 834 16 505 132
Energy Management 2 805 522 2 189 474
Rental Services 2 289 942 2 293 203
Corporate Services 9 063 226 1 411 287
Total 29 017 524 22 399 096
Operating (loss)/profit segment results (before net finance cost, other
gains and losses and taxation):
Tracking Services 535 722 834 498
Energy Management -1 807 267 -1 985 168
Rental Services 931 362 503 963
Corporate Services -1 593 973 -1 627 121
Total -1 934 156 -2 273 828
Assets affected by material changes year on year
Corporate Services 2 636 9247
COMMENTARY
1.1 Basis for preparation and accounting policies
The reviewed provisional condensed financial statements for the financial
year ended 31 August 2009 have been prepared in accordance with
international Financial Reporting Standards ("IFRS"), the JSE Limited
Listings Requirements, the requirements of IAS34 and the Companies Act of
South Africa. The reviewed provisional condensed financial statements have
been prepared on the historical costs basis which is consistent with the
previous annual financial statements.
1.2 General review of business and operations
Zaptronix offers a specialised risk management services in two solutions
channels, being the utility and logistics management and selling risk and
operational control systems for Mobile Logistics Risk Management ("MLRM")
and Energy Risk Management ("ERM").
The MLRM business is conducted by the Zaptronix subsidiary, Duo Solutions
Provider (Pty) Limited. A core asset to the business is the in-house
developed monitoring technology employed in Duo IV TrackingTrade Mark which
is sold to commercial transporters and distributors in order to monitor,
manage and measure remotely vehicles-on-route, driver performance and
logistic schedules.
The ERM service promotes and sells Advanced Metering Infrastructure,
Automated Meter Reading services and delivers load management, verification
and billings services to residential and commercial customers in response
to the requirements in South Africa.
Zaptronix Enterprise Management Services ("EMS") recruits competent staff
which would introduce a new business model to the business base it had
acquired. A management services contract was signed and staff recruited at
market related rates resulting in adding a new source of revenue to
Zaptronix for the period under review.
1.3 Prospects
The expansion of technologies and services of Zaptronix is envisaged as
part of the 2010 Business Plan, which provides more comprehensive
monitoring solutions to be added to the existing product suite. This will
also expand the customer base from Zaptronix`s existing fleet management
clientele.
New independent non-executive directors are to be incorporated to the Board
of Zaptronix to serve as Chairman and directors of the Board and Audit
Committees respectively.
The company and directors are actively pursuing initiatives to acquire a
business base that will expand the solutions channels and grow the business
of Zaptronix. Further announcements will be communicated to the market as
to the progress of these initiatives.
Other than the above no material events have occurred after year end.
1.4 Financial review
Revenue grew by 29,5% and EBITDA improved by 198% mainly due to
contributions from the corporate services rendered by Zaptronix EMS
business unit.
Revenue from DuoSP showed a net shrinkage of 1% year on year. The company
continued to grow its revenue from its Duo IV Tracking service to
commercial customers by 22% and the full year impact from the liquidation
of customer`s business is discounted in the shrinkage. The final phasing
out of the legacy Duo III service introduced in 1999 was concluded in the
year under review.
Revenue from electrical meter sales increased by 28% year on year. It is
expected that a substantial increase in sales of the Zaptronix metering AMI
product range would occur upon the finalization of the standards that are
being established by the regulator for these products.
Normal operating costs were kept on the same level, while non-recurring
expenses of R1 million, were absorbed in the surplus cash generated from
operations during the year under review. The majority of non-recurring
expenses related to unrecoverable communication costs.
The controlling shareholders rendered financial support by subordinating
the shareholder loan. Working capital amounted to 0.91 times (2008: 1.4),
excluding the subordinated shareholders loan.
The annual group financial statements have been prepared on the basis of
accounting policies applicable to a going concern. This basis presumes that
funds will be available to finance future operations and that the
realisation of assets and settlement of liabilities, contingent obligations
and commitments will occur in the ordinary course of business.
No material capital commitments exist as at year end.
1.5 Dividend
No dividend has been recommended or declared for the period, since the
group requires the resources to achieve its targets.
1.6 Independent review
PKF (Pretoria) Inc., independent auditor to Zaptronix Limited, has reviewed
the condensed financial statements contained in this interim report and has
expressed an unmodified review conclusion on the results for the year ended
31 August 2009. Their review report is available for inspection at the
company`s registered office.
Corporate information
Non executive directors: K Gribnitz
Executive directors: J Ramage, J Nel
Registration number: 1997/014928/06
Registered address: Solutions House, Gazelle Close, Corporate Park South,
Midrand, 1685
Postal address: P O Box 8291, Midrand, 1685
Company secretary: Sylvan Corporate Secretarial Intelligence (Pty) Limited
Telephone: +27 11 238 2000
Facsimile: +27 11 238 2075
Transfer secretaries: Computershare Investor Services (Pty) Limited
Designated Adviser: Exchange Sponsors (2008) (Pty) Limited
For and on behalf of the Board
Zaptronix Limited
KG Gribnitz J Ramage
Chairman Financial Director
Midrand
2 December 2009
Date: 02/12/2009 12:09:01 Produced by the JSE SENS Department.
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