| Thu 4 Feb 2010, 7:15 | | TLM - Telemasters Holdings Limited - Unaudited Interim Results For The Three |
|
TLM
TLM
TLM - Telemasters Holdings Limited - Unaudited Interim Results For The Three
Month Period Ended 31 December 2009
TELEMASTERS HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2006/015734/06)
Share code: TLM ISIN Number: ZAE000093324
("TeleMasters" or "the Company")
UNAUDITED INTERIM RESULTS FOR THE THREE MONTH PERIOD ENDED 31 DECEMBER 2009
STATEMENT OF COMPREHENSIVE INCOME Unaudited Unaudited
3 months 3 months
ended ended
31 December 31 December
2009 2008
R R
Revenue 62,927,890 57,101,383
Cost of sales (52,833,132) (48,878,226)
Gross profit 10,094,758 8,223,157
Operating expenses (5,415,624) (3,745,709)
Operating profit 4,679,133 4,477,448
Investment income 199,602 366,344
Finance costs (136,899) (102,039)
Profit before taxation 4,741,837 4,741,753
Taxation (1,561,292) (1,565,915)
Profit for the period 3,180,545 3,175,838
Total comprehensive income for the 3,180,545 3,175,838
period
Basic earnings per share (cents) 7.57 7.56
Diluted earnings per share (cents) 7.57 7.56
Headline earnings reconciliation:
Profit for the period 3,180,545 3,175,838
Adjustments: - -
Headline earnings for the period 3,180,545 3,175,838
Headline earnings per share (cents) 7.57 7.56
Diluted Headline earnings per share 7.57 7.56
(cents)
Weighted average shares in 42,000,000 42,000,000
issue (`000)
Dividends declared per share (cents) 4.0 4.0
Dividends paid per share (cents) 4.0 16.0*
* See note 2.3 below
STATEMENT OF FINANCIAL POSITION Restated and
Unaudited at Unaudited at
31 December 31 December
2009 2008
R R
ASSETS
Non-current assets
Property, plant and equipment 17,914,783 14,354,593
Intangible assets 3,297,345 5,126,406
Deferred tax assets 370,798 248,440
21,582,926 19,729,439
Current assets
Trade and other receivables 14,729,579 17,162,109
Cash and cash equivalents 22,020,093 16,960,277
36,749,672 34,122,386
Total assets 58,332,598 52,751,825
EQUITY AND LIABILITIES
Equity and reserves
Issued capital 2,148,059 5,508,059
Retained earnings 27,485,512 16,437,374
29,633,571 21,945,433
Non-current liabilities
Finance lease liabilities 3,269,426 3,087,655
3,269,426 3,087,655
Current liabilities
Trade and other payables 17,976,200 17,517,167
Current portion of finance lease 2,000,217 1,747,406
liabilities
Current tax payable 3,482,602 7,796,953
Dividend payable 1,679,441 1,661,502
Provisions 248,742 66,743
Bank overdraft 42,399 28,966
25,429,601 28,818,737
Total equity and liabilities 58,332,598 53,851,825
Number of shares in issue 42,000,000 42,000,000
Net asset value per share (cents) 70,56 52.25
Net tangible asset value per share 62,71 40.05
(cents)
STATEMENT OF CASH FLOWS Restated and
Unaudited at Unaudited at
31 December 31 December
2009 2008
R R
Cash flows from operating activities
Cash generated from operations 13,777,968 5,724,260
Finance costs (136,899) (102,039)
Tax paid (5,617,208) -
Net cash inflow from operating 8,023,861 5,622,221
activities
Cash flows from investing activities
Property, plant and equipment acquired (1,020,579) (3,583,579)
Investment income 199,602 366,344
Intangible assets acquired - (2,900,000)
Net cash outflow from investing (820,977) (6,117,235)
activities
Cash flows from financing activities
Instalment sale agreements obtained 810,167 1,990,263
Dividends paid (1,681,152) (1,278,498)
Repayment of instalment sale (519,885) (286,195)
agreements
Net cash (outflow) / inflow from (1,390,870) 425,570
financing activities
Net increase / (decrease) in cash and 5,812,014 (69,444)
cash equivalents
Cash and cash equivalents at the 16,165,680 17,000,755
beginning of the period
Cash and cash equivalents at the end 21,977,694 16,931,311
of the period
STATEMENT OF CHANGES IN EQUITY
Issued Share Total
share
capital premium capital
Balance at 30 September 2007
4,200 5,503,859 5,508,059
Profit for the period ended 31 - - -
December 2007
Dividends declared - - -
Balance at 31 December 2007
4200 5,503,859 5,508,059
Profit for the period ended 30 - - -
September 2008
Dividends declared - - -
Balance at 30 September 2008
4,200 5,503,859 5,508,059
Profit for the period ended 31 - - -
December 2008
Dividends declared - - -
Balance at 31 December 2008
4,200 5,503,859 5,508,059
Profit for the period ended 30 - - -
September 2008
Dividends declared - - -
Capital distributions - (3,360,000) (3,360,000)
Balance at 30 September 2009 2,143,859 2,148,059
4,200
Profit for the period ended 31 - - -
December 2009
Dividends declared - - -
Balance at 31 December 2009 2,143,859 2,148,059
4,200
Retained Total
income Equity
Balance at 30 September 2007 11,013,525
16,521,584
Profit for the period ended 31 1,252,417 1,252,417
December 2007
Dividends declared (5,040,000) (5,040,000)
Balance at 31 December 2007 7,225,942
12,734,001
Profit for the period ended 30 12,755,594 12,755,594
September 2008
Dividends declared (5,040,000)
(5,040,000)
Balance at 30 September 2008
14,941,536 20,449,595
Profit for the period ended 31 3,175,838 3,175,838
December 2008
Dividends declared (1,680,000) (1,680,000)
Balance at 31 December 2008 16,437,374 21,945,433
Profit for the period ended 30 11,227,593 11,227,593
September 2008
Dividends declared (1,680,000) (1,680,000)
Capital distributions - (3,360,000)
Balance at 30 September 2009 25,984,967 28,133,026
Profit for the period ended 31 3,180,545 3,180,545
December 2009
Dividends declared (1,680,000) (1,680,000)
Balance at 31 December 2009 27,485,512 29,633,571
SEGMENT REPORT
The Company does not have different
operating segments. The business is
conducted in South Africa and is
managed centrally with no branches. The
company is managed as one operating
unit. Accordingly there is no
meaningful segmental information to
report other than the following
information:
Unaudited Unaudited
3 months 3 months
Ended ended
31 December 31 December
2009 2008
R R
Revenue by Nature
Sale of airtime 56,827,737 52,471,559
Connection incentive bonuses 4,521,487 3,699,301
Other 1,578,666 930,523
62,927,890 57,101,383
Major customers
Revenues from transactions with a
single external customer amounting to
10 percent or more of the Company`s
revenue, are disclosed below:
- Customer 1 14,468,120 13,548,872
- Other customers 48,459,770 43,552,511
62,927,890 57,101,383
1. COMPANY PROFILE
TeleMasters is a specialist tele-management and business communication strategy
player operating exclusively in the South African market focussing on the
corporate market. The company provides current and future clients access to the
most efficient and effective telecommunication technologies.
2. FINANCIAL RESULTS
2.1 Statement of compliance and basis of preparation
The interim financial statements for the three months ended 31 December 2009
have been presented in accordance with IAS 34, Interim Financial Reporting, and
in the manner required by the Companies Act of South Africa and the JSE Listings
Requirements. The results have been prepared in accordance with accounting
policies of the Company that are consistent with the prior period and comply
with International Financial Reporting Standards. These results have not been
reviewed or audited by the Company`s auditors.
2.2 Commentary
The directors are pleased to report a successful quarter with growth in Revenue
of 10% compared to the comparative period in the preceding financial year. The
increase in Revenue is due to all partners` commitment to the existing client
base to provide the most efficient telecommunication solutions for their
businesses and the optimisation of our revenue streams through our revenue
enhancement programme.
The Company`s fundamental basic business model proves successful despite the
poor economic conditions currently prevailing in the international markets. The
Company has shown an increase in gross profit of 23%. The EPS remained fairly
constant at 7.57 cents per share.
The Operating expenses have increased by 45%. The main contributors to this
increase were:
- Depreciation increased with R252 293 due to further capital investments in
Property, plant and equipment of R3 560 190 compared to the prior period;
- As a result of the higher asset base, Repairs & maintenance for the period
increased with R131 747;
- Since the beginning of the current period, the Company rented additional
office space to accommodate the increased staff complement and operations. This
led to a total increase in occupancy costs of R209 413;
- The higher staff complement resulted in an increase in Employee costs of
R638 421. This was due to additional salaries and a reallocation from cost of
sales due to a change in employment position as well as the company policy to
pay full medical aid contribution for all staff with service in excess of 5
years.
It is company policy to fund the acquisition of certain Property, plant and
equipment through the use of Finance lease agreements. The total amount
outstanding at the end of the period for Finance lease liabilities was
R5 269 643 (2008: R4 835 061). This explains the increase in Finance costs of
34% for the period.
The Company remains cash positive with a good liquidity position. The Company
improved its cash flows from operating activities with 43% compared to the
previous period.
The Net Asset Value (NAV) per share increased by 35% since the end of the
comparative quarter. Net Tangible Asset per share is up 57%.
The comparative periods in the Statement of financial position and the Statement
of cash flows were restated to correct allocations in the previous communication
to shareholders:
The Intangible asset was initially disclosed as R6 226 406. Included in this
balance was an amount of R1 100 000 that related to Routers and handsets that
was included in the original purchase price. This was re-allocated to Property,
plant and equipment to reflect the true nature of the asset pursuant to the
purchase price allocation in accordance with IFRS 3;
In the Statement of cash flows the amount of Dividends paid for the period was
incorrectly disclosed as R18 498. This actually represented the amount owed to
shareholders as at the end of the period. The Statement of cash flows was
corrected to reflect the amount actually paid of R1 278 498.
2.3. Dividends
The board has recently declared a quarterly interim dividend of 4 cents per
share ("the dividend"), which was paid to all shareholders recorded in the share
register of the Company at the close of business on Friday, 15 January 2009.
The board will continue with the policy of declaring quarterly dividends and,
over the course of the year, intends maintaining a high dividend policy.
During the first quarter ended 31 December 2008, the Company declared an interim
dividend of 4 cents for the quarter. The Dividend paid per share of 16 cents
included this declared dividend and the 12 cent dividend paid for the prior 12
month period.
3. LITIGATION
There are currently no legal or arbitration proceedings against the Company
(including any proceedings which are pending or threatened) of which the Company
is aware which may have, or have had in the 12 months preceding the date of this
report, a material effect on the consolidated position of the Company
4. SUBSEQUENT EVENTS
The directors are not aware of any matter or circumstance arising since the
reporting date which would have an effect on the Company.
5. SHARE CAPITAL
No changes to Share capital occurred during the period.
6. OPERATIONAL REVIEW AND PROSPECTS
The Company has noted a definite slowdown in the economy and an increased number
of clients are being liquidated or ceased their business operations. The
directors have implemented measures to limit the risk exposure of the Company in
this regard and are confident that margins can still be achieved. The Company
is constantly searching for ways to expand growth and limit expenditure and will
continue to do so in the foreseeable future.
7. CHANGES IN THE COMPOSITION OF THE BOARD
On 18 January 2010, Ms Nolene Owen was appointed as Financial Director. The
role of Mr Brandon Topham changed from Financial Director to non-executive
director on this same date.
For and on behalf of the Board:
MB Pretorius N Owen
Chief Executive Officer Chief Financial Officer
04 February 2010
Corporate information
Directors: DS van Der Merwe*, MB Pretorius, IG Bekker, N Owen, BR Topham*,
J Voigt*, VI Beck*
(* non-executive)
Registered address: Equity Estate Building 2, Masters House, Charles de Gaulle
Crescent, Highveld Park Ext 9, Centurion, (P.O. Box 68255, Highveld Park, 0169)
Company secretary: Brandon Topham Inc.
Auditors: BDO, Block C, Riverwalk Office Park, 41 Matroosberg Avenue, Ashlea
Gardens, Pretoria
Transfer secretaries: Computershare Investor Services Limited, 70 Marshall
Street, Johannesburg, 2001 (P.O. Box 61051, Marshalltown, 2107)
Designated Advisor: Arcay Moela Sponsors (Proprietary) Limited
Website: www.telemasters.co.za
Date: 04/02/2010 07:15:02 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.
