| Mon 31 May 2010, 17:27 | | ZPT - Zaptronix - Abridged un-audited interim results for the six months Ended |
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ZPT
ZPT
ZPT - Zaptronix - Abridged un-audited interim results for the six months Ended
28 February 2010
ZAPTRONIX LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1997/014928/06)
(Share Code: ZPT ISIN Code: ZAE000070934)
("Zaptronix" or "the Company")
ABRIDGED UN-AUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 28 FEBRUARY 2010
CONDENSED CONSOLIDATED INCOME STATEMENTS FOR THE SIX MONTHS ENDED 28
FEBRUARY 2010
28 Feb 10 31 Aug 09 28 Feb 09
(Un-audited) (Audited) (Un-audited)
R R R
Assets
Non-current assets
Property, plant and equipment 4 059 997 4 853 771 5 077 382
Intangible assets 1 044 831 1 177 083 1 798 348
Deferred tax asset - - 30 033
Current assets
Inventories 2 183 922 1 981 121 2 619 873
Trade and other receivables 4 163 427 4 197 791 3 755 132
Other financial assets 256 163 256 869 310 722
Cash and cash equivalents 765 172 119 622 354 669
Total assets 12 473 512 12 586 257 13 946 159
Equity and liabilities
Equity
Share capital 29 632 341 29 632 341 29 632 341
Reserves 119 622 119 622 170 149
Accumulated loss (29 084 051) (27 270 163) (25 685 295)
Liabilities
Non-current liabilities
Other financial liabilities 137 817 - 1 858 181
(interest bearing)
Deferred tax 387 128 387 128 267 597
Current liabilities
Finance leases - - 58 092
Trade and other payables 3 052 865 6 073 594 5 630 871
Other financial 5 449 546 3 305 658 1 138 192
liabilities(interest bearing)
Provisions 2 543 186 103 019 876 031
Current tax payable 235 058 235 058 -
Total equity and liabilities 12 473 512 12 586 257 13 946 159
Number of shares in issue 379 318 934 379 318 934 379 318 934
Net asset value per share 0.02 0.07 1.08
(cents)
Tangible net asset value per (0.01) 0.04 1.03
share (cents)
CONDENSED CONSOLIDATED INCOME STATEMENTS FOR THE SIX MONTHS ENDED 28
FEBRUARY 2010
28 Feb 10 31 Aug 09 28 Feb 09
(Un-audited) (Audited) (Un-audited)
R R R
Revenue 9 110 421 29 133 284 9 996 132
Gross profit 4 671 425 19 919 740 5 171 200
Other income 721 092 487 694 18 009
Operating costs (6 185 996) (20 241 316) (5 114 594)
Operating profit (EBITDA) (793 479) 166 118 74 615
Depreciation and amortisation (948 576) (2 097 966) (971 068)
Net loss before interest and (1 742 055) (1 931 848) (896 453)
taxation
Interest paid (73 367) (290 676) (87 659)
Interest received 1 531 23 751 15 690
Loss before taxation (1 813 891) (2 198 773) (968 422)
Taxation - (384 622) -
(Loss)/profit for the period (1 813 891) (2 583 395) (968 422)
Basic earnings per share (0.48) (0.68) (0.25)
(cents)
Headline earnings per share (0.48) (0.68) (0.25)
(cents)
Reconciliation of headline
earnings:
Net profit attributable to (1 813 891) (2 583 395) (968 422)
ordinary shareholders
Adjusted for profit on - - -
disposal of property, plant
and equipment
Total tax effect of the - - -
adjustments
Headline earnings (1 813 891) (2 583 395) (968 422)
attributable to ordinary
shareholders
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE SIX MONTHS
ENDED 28 FEBRUARY 2010
Share Reserves Accumulated Net Asset
capital loss Value
Balance at 1 29 632 341 170 149 (24 737 295) 5 065 195
September 2008
Loss for the 6 months - - (968 422) (968 422)
Balance at 28 29 632 341 170 149 (25 705 717) 4 096 773
February 2009
Realisation of - (50 527) 50 527 -
revalued assets
Loss for the 6 months - - (1 614 973) (1 614 973)
Balance as at 31 29 632 341 119 622 (27 270 163) 2 481 800
August 2009
Loss for the 6 months (1 813 891) (1 813 891)
Balance as at 28 29 632 341 119 622 (29 084 054) 667 909
February 2010
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS FOR THE SIX MONTHS ENDED
28 FEBRUARY 2010
28 Feb 10 31 Aug 09 28 Feb 09
(Un- (Audited) (Un-
audited) audited)
R R R
Cash flows from operating
activities
Cash generated/(used) from/by 525 701 198 804 74 615
operations
Increase/(decrease) in working 429 857 648 044 (615 067)
capital
Finance income 1 531 23 751 15 690
Finance costs (73 367) (290 676) (87 659)
Net cash from/(by) operations 900 389 579 923 (612 421)
Cash flows from investing
activities
Purchase of property, plant and (22 550) (144 394) -
equipment
Disposal of property, plant and 24 965 -
equipment
Net cash flow from investing (22 550) (119 429) (-)
activities
Cash flow from financing
activities
Repayment of other financial (232 282) (855 305) -
liabilities
Additional funding 422 169
Finance lease repayments - (58 092) (29 046)
Net cash flow from financing (232 282) (913 397) 393 123
activities
Total cash movement for the 645 557 (452 903) (219 298)
period
Cash at the beginning of the 119 615 572 518 573 967
period
Total cash at end of the period 765 172 119 615 354 669
COMMENTARY
1. Basis for preparation
The interim financial statements for the 6 months ended 28 February 2010
are un-audited and have been prepared in accordance with International
Financial Reporting Standards ("IFRS"), IAS34, the JSE Limited Listings
Requirements and the Companies Act of South Africa. The accounting policies
adopted are consistent with those of the annual financial statements for
the year ended 31 August 2009.
2. Financial review
The results for the period have been negatively impacted by once off
accounting provisions of approximately R1.5 million. The provisions result
from a robust review of debtor balances which revealed that the provision
for bad debts needed to be increased.
Without the above increase in provisions, the company is profitable at an
EBITDA level. Focus remains on the control of costs.
The company is cash flow positive with R526k cash generated through
operations. The focus remains on the repayment of debt. The gearing ratio
of the group has improved by 61% from 1.65:1 in August 2009 to 2.5:1 in
February 2010.
3. Operational review
The Zaptronix group of companies operate four businesses: Zaptronix
Metering, Duo Tracking Services, I to I technologies and RMS Technologies.
The economic impact on customer spend is reflected in the margins that were
placed under pressure. Cost saving exercises and the building of an annuity
revenue book since 2006 has allowed the group to absorb some of the
recessionary effects.
4. Going concern and I to I acquisition
As reported by the Auditors of the company in their Audit Report for the
year ended 31 August 2009, the solvency of Zaptronix remains a concern.
The effect of re-assessment and increase of provisions on the balance sheet
filters through the income statement and thereby erodes the equity of the
company. The company is generating cash from its business but due to
Zaptronix being undercapitalised, the company requires more working capital
for growth.
The acquisition of the I to I Technology Solutions Limited business ("I to
I") that was announced on SENS on 26 February 2010, is progressing
satisfactorily and will contribute substantially to solving the company`s
solvency problems. The cross selling opertunities between these companies
are expected to show results in the financial year.
The commercialisation of certain intellectual property in the company`s
fleet management solutions business is expected to both retain and draw new
business.
The solvency of Zaptronix will further be addressed by the proposed
transaction whereby the controlling shareholders loan will be converted to
equity. These loan accounts are currently subordinated.
5. Changes to the board
The changes to the board of directors announced on SENS on 13 May 2010,
resulted in the company currently trading without a Chief Executive Officer
("CEO") and a Financial Director. The previous CEO, JP Nel and Financial
Director, J Ramage are continuing acting in their roles as CEO and Chief
Financial Officer.
6. Future prospects
As explained above, the future solvency of the company is highly dependent
on the success of the I to I acquisition, which will furthermore expand the
vision of Zaptronix by increasing the skills and product offering to
clients that seek operational control systems.
7. Dividend
No dividend has been proposed.
For and behalf of the board of directors
31 May 2010
Midrand
Non executive directors: K Gribnitz, PN Reeves, JP Nel, N Melville
Registration number: 1997/014928/06
Registered address: Solutions House, Gazelle Close, Corporate Park South,
Midrand 1684
Postal address: P O Box 8291, Midrand, 1685
Telephone: 011 238 2000
Auditors: PKF (Pta) Incorporated
Secretary: Sylvan CSI (Pty) Ltd
Transfer secretaries: Computershare Investor Services (Pty) Ltd
Designated Adviser: Exchange Sponsors (2008) (Pty) Ltd
Date: 31/05/2010 17:27:02 Produced by the JSE SENS Department.
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