| Wed 21 Apr 2010, 17:00 | | VOX - Vox Telecom - Unaudited results for the six months ended 28 February 2010 |
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VOX
VOX
VOX - Vox Telecom - Unaudited results for the six months ended 28 February 2010
VOX TELECOM LIMITED
(Registration number 1998/016433/06)
("Vox Telecom" or "the Company" or "the Group")
JSE Code: VOX
ISIN Code: ZAE000097234
UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 28 FEBRUARY 2010
Condensed Consolidated Unaudited Unaudited Audited
Statement of Financial As at As at As at
Position 28 Feb 2010 28 Feb 2009 31 Aug 2009
R`000 R`000 R`000
ASSETS
Non-current assets 1 443 720 1 456 759 1 450 595
Plant and equipment 149 147 120 295 131 340
Goodwill 599 358 597 296 599 358
Other intangibles 678 717 708 738 701 174
Other financial assets 1 625 2 650 1 943
Deferred taxation 14 873 27 780 16 780
Current assets 375 761 401 790 401 581
Inventories 33 161 50 491 41 481
Trade receivables and 233 556 275 026 265 253
prepayments
Current tax receivable 1 960 3 193 1 975
Finance lease receivables 785 - 755
Cash and bank balances 106 299 73 080 92 117
Total assets 1 819 481 1 858 549 1 852 176
EQUITY AND LIABILITIES
Capital and reserves 1 193 143 1 134 424 1 165 353
Share capital 1 109 1 109 1 109
Share premium 1 018 877 1 018 877 1 018 877
Reserves 10 499 7 027 8 230
Retained earnings 162 658 107 411 137 137
Non-current liabilities 238 952 295 221 285 746
Borrowings - interest bearing 79 743 121 513 118 982
Borrowings - interest free 988 2 210 758
Deferred taxation 158 221 171 498 166 006
Current liabilities 387 386 428 904 401 077
Trade and other payables 291 449 310 070 292 070
Provisions 12 491 5 522 14 173
Taxation 10 257 10 356 12 010
Current borrowings 73 189 102 956 82 824
Total equity and liabilities 1 819 481 1 858 549 1 852 176
Ordinary shares in issue at 1 108 502 1 108 502 1 108 502
period end (`000)
Net asset value per share 107.6 102.3 105.1
(cents)
Condensed Consolidated Income Unaudited Unaudited Audited
Statement Six Six months Year ended
months ended
ended 28 Feb 09 31 Aug 09
28 Feb 10 R`000 R`000
R`000
Revenue 1 044 277 1 059 396 2 082 533
Cost of sales (809 406) (824 709) (1 559
576)
Gross profit 234 871 234 687 522 957
Other income 2 389 3 033 7 636
Depreciation and amortisation (37 146) (37 800) (69 460)
Employment costs (95 830) (84 860) (184 227)
Occupancy costs (11 281) (8 817) (21 245)
Other operating costs (53 708) (49 608) (123 664)
Operating profit 39 294 56 635 131 997
Finance costs (8 293) (17 297) (40 437)
Finance income 4 640 4 196 8 433
Net finance costs (3 653) (13 101) (32 004)
Profit before taxation and 35 642 43 534 99 993
exceptional item
Exceptional items - - (11 585)
Profit before taxation 35 642 43 534 88 408
Taxation (10 (12 (27 628)
120) 479)
Profit for the period 25 522 31 055 60 780
Attributable to equity holders
of the parent 25 522 31 055 60 780
Earnings per share (cents)
Basic EPS 2.30 2.81 5.49
Diluted basic EPS 2.30 2.79 5.49
Additional information:
Reconciliation of profit for
the period to headline earnings
Profit for the period 25 522 31 055 60 780
Adjustments for:
Impairment of assets - - 9 749
Loss on sale of assets - - 869
Tax effect - - ( 2 973)
Headline earnings 25 522 31 055 68 425
Headline EPS ( cents) 2.30 2.81 6.18
Diluted headline EPS (cents) 2.30 2.79 6.18
Number of shares
In issue (`000) 1 108 502 1 108 502 1 108 502
Weighted average (`000) 1 108 502 1 105 965 1 107 244
Share options granted (`000) - 7 394 -
Diluted weighted average (`000) 1 108 502 1 113 359 1 107 244
Consolidated Unaudited Unaudited Audited
Cash Flow Statement Six months Six months Year
ended ended ended
28 Feb 10 28 Feb 09
R`000 R`000 31 Aug 09
R`000
Cash flow from operating
activities
Operating cash before working 78 709 96 039 209 319
capital movements
Working capital movements 32 955 (15 680) (24 241)
Cash generated from operations 111 664 80 359 185 078
Net interest paid (3 653) (13 101) (32 004)
Taxation paid (17 736) (27 360) (34 128)
Net cash inflow from operating 90 275 39 898 118 946
activities
Cash flow from investing
activities
Additions to plant and equipment (27 448) (28 543) (62 430)
to expand operations - - (2 719)
Additions to other intangibles
to expand operations
Proceeds on disposal of - - 2 817
property, plant and equipment
Additional vendor payments - (9 753) (8 543)
Net cash outflow from investing (27 448) (38 296) (70 875)
activities
Cash flow from financing
activities
Repayments of long and short- (48 645) (16 799) (44 231)
term borrowings
Net cash inflow from financing (48 645) (16 799) (44 231)
activities
Net increase (decrease) in cash
and cash equivalents 14 182 (15 197) 3 840
Cash and cash equivalents at 92 117 88 277 88 277
beginning of period
Cash and cash equivalents at end 106 299 73 080 92 117
of period
Unaudited Share Share Reserves Retained Equity
Consolidated capital premium profits attributable
Statement of to equity
Changes in holders of
Equity the parent
R`000 R`000 R`000 R`000 R`000
Balance as at
31 August 1 101 1 002 5 428 76 357 1 085 270
2008 384
Movement in - - (408) - (408)
FCTR
Profit for the - - - 60 780 60 780
year
Total
recognised - - (408) 60 780 60 372
income and
expense
Shares issued
(net of costs) 8 16 492 - - 16 500
Share-based
payment - - 3 210 - 3 210
expense
Balance as at
31 August 1 109 1 018 8 230 137 137 1 165 352
2009 877
Profit for the - - - 25 522 25 522
period
Total
recognised - - - 25 522 25 522
income and
expense
Share-based
payment - - 2 268 - 2 268
expense
Balance at
28 February 1 109 1 018 10 499 162 658 1 193 143
2010 877
COMPANY PROFILE
Vox Telecom Limited, headquartered in Johannesburg, is a leading alternative,
independent telecom operator, providing voice and data services to the Southern
African market. The Group employs 781 people and competes through its primary
brands Vox Telecom, Vox DataPro, @lantic, Vox Orion, Vox Amvia, Vox Core and Vox
Telepreneur and has offices in Johannesburg, Durban, Cape Town and Pretoria as
well as in Windhoek, Namibia. Vox Telecom is a listed company trading on the
Alternative Exchange (AltX), a division of the JSE Limited ("the JSE").
Investor and shareholder information is available at www.voxtelecom.co.za
BASIS OF PREPERATION
The condensed unaudited annual financial statements for the six months ended 28
February 2010 for Vox Telecom ("the 2010 interim results"), are presented below.
The 2010 interim results have been prepared in accordance with accounting
policies and methods of computation that are consistent with those of the prior
year and with IAS 34 Interim Financial Reporting, using accounting policies that
are in line with IFRS and consistently applied to prior periods, except for IFRS
3 Business Combinations, IFRS 8 Operating segments, IAS 1 Presentation of
Financial Statements, IAS 23 Borrowing Costs and IAS 27 Consolidated and
Separate Financial Statements which were implemented during the period in
accordance with the transitional provisions as well as the listing requirements
of the JSE and the Companies Act (as amended). The only impacts of the above
changes are the identification of two additional reporting segments and the
restatement of segment information in accordance with IFRS 8.
BUSINESS REVIEW FOR THE PERIOD
The key financial results of the past six months were:
- Revenue down 1% to R1,04 billion
Gross profit unchanged at R235 million
EBITDA down 19% to R76,4 million
Cash generated from operations of R112 million with cash on hand of R106
million
Profit after taxation down 18% to R25,5 million
Earnings per share and headline earnings per share down 18% to 2.30 cps
For the six month period revenues were down 1% over the previous period to R1,04
billion. Gross profit remained unchanged at R235 million albeit at a slightly
higher margin of 22.5% versus 22.2% for the same period last year. The results
have been impacted by the strategic decision of the Group taken in November 2009
to freeze the renewal of Least Cost Routing ("LCR") SIMs with the networks as
these SIMs come out of contract, in anticipation of the proposed changes in
Mobile Termination Rates ("MTR"). The impact of this decision is that R3,4
million was generated through Connection Incentive Bonuses ("CIBs") compared to
R37,7 million in the comparable period. Earnings per share ("EPS") and headline
earnings per share ("HEPS") are thus down 18% to 2.30 cents per share
respectively. Cash generated from operations has improved to R112 million from
the R80 million in the prior period.
The following is a summary of key aspects of operational performance:
Slower growth in revenue across the Group primarily from less CIB revenue, the
weak economy and delayed certainty in MTR pricing;
Vox Orion has delivered approximately 391 Cristal Vox proposals to its platinum
customer base with a 10% take up rate to date. It is expected that when Local
Number Portability ("LNP") is implemented, which is officially expected to go
live on April 26, 2010, there will be an accelerated conversion to Cristal Vox;
Continued growth in Vox Telepreneur to 10 819 customers (31 August 2009: 9 300)
with 13 426 Vox ADSL phones in use (31 August 2009: 9 144) and consistent
Average Revenue Per User ("ARPU") averaging R265 over the period (31 August
2009: R272);
Continued growth in revenues of new products such as "Eyeris", a video
conferencing alternative and the "Fishbone" Line bonder broadband solution which
allows customers to combine multiple access lines for increased speed and
efficiency;
@lantic has experienced a further contraction in the consumer base to 130 356
customers, primarily caused by churn and non payment from the weak economy but
ARPU has increased to R145 per customer per month, compared to R135 as at 31
August 2009;
the staff complement has remained stable at 781 employees (31 August 2009: 783);
and
The continued focus on cash flow generation that allowed the Group to invest a
further R27,5 million into the network, other fixed assets and further reduce
long term debt obligations by R48,6 million.
FUTURE PROSPECTS
The key themes of the current telecommunications environment remain the
finalisation of termination rates as well as the continued delay in local number
portability, local loop unbundling and carrier pre-select. MTR rates have been
reduced to 89 cents per minute with effect from 1 March 2010 at the instance of
the major telecommunications operators.
On 16 April, 2010 ICASA issued a government gazette notice (314 of 2010) that
addresses "Call Termination Regulations". ICASA has now declared that each
electronic communications network service and electronic communications service
licensee that offers voice call termination services is dominant and has SMP
(Significant Market Power) in its own market. However ICASA also declares that
certain licensees are established SMP licensees. These licensees are as follows
:
Vodacom;
Mobile Telephony Networks ("MTN");
Cell C; and
Telkom.
The regulations propose that established SMP licensees charge the call
termination rates in accordance with the table below:
Glide Path (July 2010 - July 2013)
Mobile Call Fixed Call
Termination Rate Termination Rates
From July 2010 R0.65 R0.15
From July 2011 R0.50 R0.12
From July 2012 R0.40 R0.10
Please note that this table is an extract of the Government Gazette Notice
33121, Volume 538 issued on 16 April, 2010. See regulation 9(1)(b) - Price
Control.
ICASA has further announced that public hearings will be held from June 9 - 11,
2010 to hear submissions on the proposed termination rates. It is not clear yet
when the rates will be actually implemented because they may be influenced by
the submissions of the established SMP licensees.
LNP is officially targeted to go live on 26 April, 2010, which is 11 months
after the implementation of LNP for blocks of 1 000 to 10 000 numbers. Vox
Telecom is ready to roll out with LNP and anticipate that this will have a
positive impact on Vox Cristal sales.
There has been no announcement from ICASA as yet on local loop unbundling and
carrier pre-select. Vox will continue to lobby for these necessary and essential
liberalisation changes which will lead to a more competitive telecommunications
environment for the benefit of all customers.
The clarity we now have in the regulatory environment means Vox Telecom is able
to focus on its vision of striving to be the leading independent, alternative
provider of voice and data solutions to the Southern African market with its key
goals and objectives remaining unchanged. We anticipated that interconnect rates
would change and in this regard have been building and developing our network.
The launch of Cristal Vox in 2009 is in direct response to this change. Cristal
Vox is the result of four years of experience in the voice market and has
resulted in the launch of a Telco grade quality voice solution. For the period
under review the Group`s minutes billed totalled 624 million of which 173
million minutes have already been implemented or migrated to the Vox Platform.
Vox Orion is affected by changes in the MTR environment as the majority of it`s
customers use cellular LCR products as this has historically resulted in major
savings when making outbound calls from Telkom to one of the mobile operator
networks. The announced change in MTR and Vox Orion`s strategic reaction to the
anticipated changes in MTR has had a certain medium term negative impact on
profitability of the Vox Orion business, as is evidenced by lower CIB revenues
and this will continue in the short to medium term.
In response to changes in MTR a process was initiated in 2009 to convert Vox
Orion customers to the Group`s new voice product, Cristal Vox, but as it
requires technical changes at customer sites and new contracts to be signed,
this conversion process will take time. In addition, this process has been
delayed due to the late implementation of LNP. With LNP expected to be available
from May 2010 onwards we expect an increased take-up of Cristal Vox by the Vox
Orion corporate customer base.
The proposed announcement by ICASA with respect to mobile and fixed termination
rates will allow Vox Orion as well as other subsidiaries within the Vox Group to
offer more competitive outbound rates to their customers. Over the longer term
Vox Orion will benefit from margin improvements once their major voice customers
have been converted to the Cristal Vox solution.
The advent of Cristal Vox now allows the Group to provide a complete voice
solution to service all of our customers` needs for both inbound and outbound
calls. The impact of this is reduced communication costs for our customers and
improved margins for the Group. Vox Telecom continues to be recognised as a
leading aggregator of alternative voice traffic and continues to dominate
interconnect traffic passed between the Vox Telecom network and the incumbent
operators.
FINANCIAL OVERVIEW
The past six months has been focused on improving margins and ARPU`s, reducing
costs and maximising cash flow generation. The Group has also continued with its
strategy of reducing its dependence on cellular LCR, which has resulted in the
loss of CIB income. The net impact of this decision is a loss of R33,2 million
CIB revenue compared to the prior period.
As a result profit for the six months ended 28 February 2010 is down 18% at
R25,5 million (28 February 2009: R31,1 million). Similarly EPS and HEPS are down
18% at 2.30 cents per share respectively (28 February 2009: 2.81 cents per
share)
Revenue
Revenues decreased by 1% over the same period from R1,06 billion to R1,04
billion, primarily as a result of less CIB revenue in Vox Orion. Revenue in Vox
Orion thus reduced for the same reason.
Attributable revenue growth (decline) in each of the core operating business
units was as follows:
Vox Orion (5.2)%
Vox DataPro 2.1%
@lantic 8.1%
Vox Telepreneur 92.9%
Vox Core 63.8%
Vox Amvia (0.7)%
Gross Profit
Group profit margins have increased slightly to 22.5% which is encouraging given
the loss of CIB income. This has been achieved by a combination of improved
usage and breakage on data solutions, the increased impact of high-margin
revenue generated in Vox Telepreneur as well as increased synergies and
operating efficiencies on the Vox Core network.
Vox Orion has offset the negative impact of reducing CIB revenue by improving
SIM utilisation. However as a result of the extended life cycle to convert
customers to Cristal Vox it is unlikely that the margin achieved in the prior
period will be obtained in the current year.
Operating Profit
Operating profit was 30% lower at R39,3 million from R56,6 million in the prior
period, again impacted by the loss of CIB income.
Expenses continue to be carefully controlled with operating costs as a
percentage of revenue reducing to 5.1% from 5.9% as at 31 August 2009.
The Group continues to provide for all trade receivables considered long
outstanding unless mitigated by specific circumstances and continues to adopt a
strict credit policy with 82% of trade and other receivable balances being
maintained within current and 30 days ageing, which has resulted in a noticeable
improvement in working capital and cash flow.
Employment costs as a percentage of revenue increased marginally to 9.2% from 8%
at 28 February 2009, principally as Vox Orion has a general salary increase on 1
February for all its 336 employees. All other Group employees receive increases
on an anniversary of employment basis and thus the percentage for full year as a
percentage of total revenue will reduce. The Group also ensures that salary
increases are in line with market trends in the industry to ensure the retention
of key staff members.
BUSINESS UNITS
Vox Orion`s revenue reduced to R659 million with gross margins retreating to
13.6% from 15.1% over the previous comparable period. As the successful
conversion to Cristal Vox accelerates margins are expected to rebound. The
number of corporate customers approximates 7 303. The impact of changes in
interconnect rates on Vox Orion has been explained in the "Future Prospects"
section of this announcement.
Vox DataPro`s revenue grew by 2.1% to R222 million over the comparative period
through a combination of voice and data business. ARPU increased to R3 816 per
month from R3 707 per month as at the end of February 2009, from a base of 7 712
(28 February 2009: 8 017) corporate customers.
Vox DataPro`s revenue growth has been diluted in the current period due to the
re-allocation of certain wholesale business to Vox Core. On an adjusted
comparative basis Vox DataPro would have grown by 19.7% and ARPU would have
increased to R3 816 per month from R3 642 per month as at end of February 2009.
The revenues from the successful launch of Fishbone Linebonder and Eyeris
continue to grow with current monthly annuity from Fishbone totalling more than
R1,5 million. Vox has also responded positively to the recent price reductions
in uncapped ADSL products and is currently competitive in its ADSL product
offering.
@lantic`s revenue grew by 8.1% to R103 million and ARPU across the base grew to
R145 per month from R135 per month as at 31 August 2009. The strategy remains to
restore ARPU across the entire @lantic base to levels of approximately R150 per
month. Bad debt in the continued weak economy and the termination of unwanted
business has resulted in a further reduction in the base to 130 356 customers.
Vox Amvia`s gross profit margins have increased to 59% from 54% as at 28
February 2009. Annuity revenue increased 37% when compared to the 6 months ended
28 February 2009. Corporate capital expenditure continues to remain slow and has
impacted revenues and gross margins in the current period with product sales
below anticipated budgets but there are indications of improvement in the months
ahead.
Vox Telepreneur ARPU has remained constant at R265 per month. The number of
customers has grown to 10 819. New products continue to be added to this
offering, to further enhance and strengthen Vox Telepreneurs` growing position
in the market. Revenue continues to increase rapidly per month with gross profit
margins exceeding 30% (before adjusting for depreciation on ADSL phones).
Cash flow and capital expenditure
Cash generated from operations has improved by 40% from R80 million to R112
million. The largest contribution comes from improved working capital management
that resulted in a cash inflow of R33 million versus cash outflow of R16 million
in 2009.
This cash has been utilised in expansive capital expenditure of R27 million and
repayment of debt of R49 million, reducing total debt to R153 million (2009: R
224 million). The debt to equity ratio was 17% at 31 August 2009 and has reduced
to 13% at 28 February 2010.
Management is mindful of the continued investment in the network and the
investments being made by many of Vox Telecom`s competitors. Such expenditure is
being carefully managed and will only be incurred if necessary or for the
purpose of competing successfully.
Working capital management has been further enhanced by tighter inventory
control and continued focus on the collection of accounts receivable balances
and this practice will continue for the remainder of the financial year.
The Vox Telecom Limited 2009 Share Plan ("the Plan") was adopted by shareholders
in 2009. In the current year a full year charge of R4,5 million is anticipated
in accordance with IFRS 2 of which R2,3 million has been incurred in the current
period.
Goodwill and other intangibles
At the date of this announcement no impairment is required based on the
information that is available. Goodwill and intangible asset bases are tested
for impairment on an annual basis as required by IAS 36, such testing will be
performed at year end as is consistent with prior years.
The Directors believe that the Group continues to be well placed to manage its
business risks successfully. The Directors have a reasonable expectation that
the Group has adequate resources to continue to operate for the foreseeable
future, despite the current uncertain economic environment and changes
concerning MTR rates. Accordingly, they continue to adopt the going concern
basis of accounting in the preparation of this interim results announcement.
SEGMENTAL REPORTING
Primary business segments
The Group operates through its four main operating businesses, namely Vox Orion,
Vox DataPro, @lantic, and Vox Amvia. Other areas include corporate head office
and the other early stage businesses. The Group`s reportable segments are as
follows:
Vox Orion - Corporate voice and data.
Vox DataPro - Corporate voice and data with the main focus on the SME market.
@lantic - Consumer voice and data services.
Vox Amvia - Fax services and related products to corporate market.
Vox Core - Wholesale voice and data
Vox Telepreneur Consumer voice and data services
Other - Corporate head office, consolidation entries including the
amortisation of customer bases, Vox Telecom Service Centre and various smaller
entities including the dormant entities.
Unaudited: Total Vox Vox @lanti Vox Vox Vox Head
6 months Orion DataPr c Amvia Telepr Core office
to 28 o eneur and
February other
2010*
R`000 R`000 R`000 R`000 R`000 R`000 R`000 R`000
1 044 658 221 103 14 672 15 482 13 886 16 807
Revenue 277 770 637 023
Earnings 76 34 25 530 19 417 3 736 (1 20 929 (25
before 440 535 827) 880)
interest,
tax,
depreciati
on and
amortisati
on
Depreciati (37
on and 146)
amortisati
on
Operating 39
profit 294
Net (3
finance 653)
costs
Profit 35
before 642
taxation
Taxation (10
120)
Profit for 25
the period 522
Total 1 819 298 93 522 133 17 847 39 466 103 1 133
assets 481 077 22 326 898 5 398 21 749 351 320
Total 626 209 28 269 73 561 265
liabilitie 338 266 769
s
* - The adoption of IFRS 8 resulted in the restatement of reporting segments for
2009. Changes include adding Vox Telepreneur and Vox Core as reporting segments,
as well as reporting on operating profit without allocating the amortisation
charge of customer bases across to segments.
Unaudited: Total Vox Vox @lanti Vox Vox Vox Head
6 months to Orion DataPr c Amvia Telepr Core office
28 February o eneur and
2009* other
R`000 R`000 R`000* R`000 R`000 R`000 R`000 R`000
*
Revenue 1 059 694 217 95 330 14 777 8 027 8 479 21 121
396 646 016**
Earnings 94 435 53 30 18 170 3 528 981 17 687 (29
before 444 247** 622)
interest,
tax,
depreciatio
n and
amortisatio
n
Depreciatio (37 800)
n and
amortisatio
n
Operating 56 635
profit
Net finance (13 101)
income
Profit 43 534
before
taxation
Taxation (12 479)
Profit for 31 055
the period
Total 1 858 293 117 121 14 677 45 197 87 020 1 179
assets 459 167 520 471 8 498 25 286 64 855 497
Total 724 125 193 222 24 415 185
liabilities 593 090 388
** - Vox DataPro`s wholesale business, which includes revenue of R31,9 million
and EBITDA of R3,2 million for the 6 months ended February 2009, has been re-
allocated to Vox Core in the 6 months ended 28 February 2010.
Secondary geographic segments
The Group`s businesses operate in two principal geographical areas - South
Africa and Namibia.
Total South Africa Namibia Total South Africa Namibia
Six months Six months Six months Six months Six months Six
ended ended ended ended ended months
Feb 10 Feb 10 Feb 10 Feb 09 Feb 09 ended
Feb
09
R`000 R`000 R`000 R`000 R`000 R`000
Sales 1 044 277 1 027 918 16 359 1 059 396 1 044 335 15 061
Segment 1 819 481 1 796 400 23 081 1 858 549 1 847 513 11 036
assets
ACQUISITIONS AND ISSUE OF SHARES FOR CASH DURING THE YEAR
There were no acquisitions or further issue of shares in the period under
review.
The total number of shares in issue as at 28 February 2010 is 1 108 501 698 (31
August 2009: 1 108 501 698). The total number of shares in issue on a weighted
average fully diluted basis as at 28 February 2010 is now 1 108 501 698.
GENERAL UPDATE
DIRECTOR CHANGES
Dr NN Gwagwa resigned as an alternate non-executive director of the Company on
28 January 2010. Dr Gwagwa was the alternate non-executive director for current
non-executive director, Mr Thierry Dalais. The board wishes to thank Dr Gwagwa
for her contribution and wishes her well for the future.
Mr Dalein van Zyl ("Dalein") has been appointed as an alternate non-executive
director of the Group for Mr Thierry Dalais from the same date. Dalein completed
his undergraduate degree in Mechanical Engineering at Stellenbosch University
and, after graduating, spent time in the mining industry and investment banking.
In 2002, he left South Africa to complete his MBA at the MIT Sloan School of
Management in Cambridge, MA. After graduating he joined The Boston Consulting
Group in New York City and left in 2007 in order to return to South Africa and
join Metier where he is currently an Associate Principal of the Lereko Metier
Capital Growth Fund.
Mr C M Von Holdt ("Mike"), the Group`s Chief Financial Officer, resigned with
effect from 31 March 2010. Management and the board take this opportunity of
thanking Mike for his loyal and dedicated contribution to the Group and wish him
well in his future career.
From a succession perspective, the board is pleased to announce that Mr G J Koen
("Gert") has succeeded Mike with effect from 1 April 2010. Gert, who is a
Chartered Accountant, obtained his BAcc (Hons) degree through the University of
Stellenbosch in 2000 and completed his articles with Greenwoods Chartered
Accountants, during which time he managed the audit of Vox Orion (Pty) Ltd (now
a major subsidiary of Vox Telecom Limited). Gert joined the Group in January
2004 as Assistant
Financial Manager for Vox Orion, and was soon promoted to Financial Manager.
During his tenure at Vox Orion, Gert was actively involved in most aspects of
the business, and as a result gained valuable
experience in the Telecommunication industry. In 2008 Gert was promoted to Group
Financial Manager for Vox Telecom Limited reporting to the CFO, with
responsibilities including assisting management with the day to day running of
the Group. This allowed Gert to develop an intimate product, technical and
operational understanding of the entire Group. Gert will report to the Chief
Executive Officer and will also be joining the board with effect from 1 April
2010.
The board welcomes Dalein and Gert to the Group and looks forward to their
respective contributions.
DIVIDENDS
With the application of cash generated from operations being focused on the
repayment of debt and further continued investment in our network infrastructure
and new initiatives, the directors have decided not to declare a dividend for
the period under review.
SUBSEQUENT EVENTS
Save for the changes to the board of directors as detailed above, no events
material to the understanding of this report have occurred in the period between
the period-end date and the date of this report.
GENERAL
The board of directors would like to thank the management and all employees for
the contribution they have made to the continued growth in the Group over the
past six months.
By order of the Board
AP van Marken GJ Koen
Chief Executive Officer
Chief Financial Officer
and Company Secretary
21 April 2010
Johannesburg
Registered Office
Block D, Rutherford Estate,1 Scott Street, Waverley, 2090
Directors
AP van Marken, DG Reed, GJ Koen, RT Dalais*, AD van Zyl*, E
Roth*, P Joubert*, VW Cuba*#,
D Wallace*#
* Non-executive
Alternate
* Independent
Designated Advisor Transfer Office
Grindrod Bank Limited Computershare Investor Services 2004
(Pty) Ltd
Date: 21/04/2010 17:00:01 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.
