| Tue 21 Sep 2010, 12:38 | | DLG - Dialogue Group Holdings Limited - Unaudited consolidated financial results |
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DLG
DLG
DLG - Dialogue Group Holdings Limited - Unaudited consolidated financial results
for the six months ended 30 June 2010
DIALOGUE GROUP HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number: 2005/039219/06)
Share Code: DLG ISIN: ZAE000083820
("the company", "the group" or "Dialogue")
UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2010
Enquiries:
Dialogue Group Holdings Limited
Chief Executive: Alan Farthing 082 551 0079
Financial Director: Terence Kretzmann 073 003 6058
1. Comment on the results
Difficult trading conditions continued to be experienced during the period,
forcing cost savings to be identified in all operations in order to maintain
profitability. Reduced consumer spending has impacted negatively on the group`s
customer base, resulting in less appetite for renewing contracts and pressure on
pricing.
These conditions have culminated in three of the group`s operations being
classified and presented as discontinued operations in accordance with
International Financial Reporting Standards ("IFRS"). In accordance with IFRS 5
Non-current assets held for sale and discontinued operations, prior year
comparative information in the statement of comprehensive income has been
amended to reflect these events, detail of which is provided here.
- In February 2010 the board of Dialogue SA applied for voluntary liquidation
as it became apparent that new business and further cost savings would not
be achieved and the group could no longer sustain the cash requirements of
that business.
- In May 2010 Sibize reached an agreement with its major client to terminate
its call centre outsourcing contract two years early, due to affordability
issues.
- In June 2010 Interaction`s client terminated the outsourcing agreement in
accordance with the contract by giving six months notice.
In the group`s results to December 2009 it was reported that IFRS dictated that
the results for Dialogue SA be prepared on the liquidation basis. The
liquidation basis resulted in earlier recognition of all future liabilities,
with a corresponding expense being included in the statement of comprehensive
income. The consequence of this was that the group reported a significant
expense in respect of Dialogue SA amounting to R69.6m in its results to 31
December 2009. Following the liquidation of Dialogue SA, the group no longer
exercises control over this entity and therefore has derecognised all assets and
liabilities of Dialogue SA at the date of loss of control. As a result of the
derecognition, the group has reported a gain on the disposal of a subsidiary of
R65.7m in the results to 30 June 2010. Dialogue SA`s trading loss of R1.1m up
until it was liquidated is also reflected separately in the statement of
comprehensive income under discontinued operations.
2. Operational review
The group commenced the year with five businesses: three call-centre operations
(Dialogue SA, Sibize and Interaction), a business continuity and disaster
recovery operation (ContinuitySA) and a recruitment company for the call-centre
industry (CallForce). As already stated, Dialogue SA was liquidated in March and
it is highly probable that Sibize and Interaction will be discontinued.
CallForce continues to experience lower volumes of temporary staff placements,
but a successful cost reduction programme has substantially reduced the losses
compared to the same period last year. This business remains dependant on growth
and employment opportunities in the financial services sector.
ContinuitySA was also impacted by tough trading conditions. Clients continue to
assume more risk in a cost conscious environment and to delay the implementation
of business continuity. ContinuitySA`s investment into Mauritius is close to
break-even on a month to month basis and this company continues to look for
opportunities to expand its base of operations in Africa.
Interaction reported good results and continues to achieve high levels of
customer satisfaction. Interaction`s client is currently in the process of in-
sourcing the call-centre facility.
Sibize experienced good results for the five months to May 2010, following which
the call centre was in-sourced by the main client. All historically due amounts
have subsequently been collected but difficulties are now being experienced in
collecting the amounts due in terms of the settlement agreement.
3. Comments on the unaudited abridged consolidated financial statements
Consolidated statement of comprehensive income;
Revenue from continuing operations of R104.6m (2009: R109.6m) is 4.6% lower than
2009, as opportunities for growth remain limited in current economic conditions.
Gross margins declined marginally in continuing operations to 49.8% (2009:
52.6%). The cost reduction programmes resulted in operating costs, excluding
depreciation and amortisation, as a percentage of revenue, remaining relatively
constant at 41.0% (2009: 39.4%).
Loss after tax from continuing operations for the period is R7.3m (2009: loss
after tax of R6.8m). The results for continuing operations include a once-off
expense in respect of a guarantee in favour of a funder of Dialogue SA to the
value of R5.3m. Once the liquidation of Dialogue SA is concluded the group may
recover some of this amount.
Consolidated statement of financial position;
Capital expenditure during the period amounted to R9.2m (2009: R8.0m), which was
funded with asset financing and cash generated from operations. This was
primarily the expansion of ContinuitySA`s premises in Cape Town for new client
requirements.
Debtors` days of 25 days (Dec 2009: 47 days) represents a significant
improvement. This is mainly as a result of a general improvement in collections
within the group.
The group continues to focus on working capital management and consequently
generated net cash during the period of R22.5m (2009: R1.7m). The Business
Continuity segment continues to generate strong cash flow from operations.
"Trade and other payables" include deferred revenue of R31.7m compared to R31.6m
as at 30 June 2009 (Dec 2009: 19.9m).
Net asset value per share as at 30 June 2010 is 26.3 cents (Dec 2009: 13.9
cents).
4. Prospects and outlook
The group has experienced considerable change during the period as outlined
above, which necessitates that the group review its future strategy and further
announcements in this regard will be made in due course.
5. Statement of compliance and basis of preparation
The consolidated interim financial statements have been prepared in accordance
with IFRS and AC500 as issued by the Accounting Practices Board, its
interpretations adopted by the International Accounting Standards Board
("IASB"), the presentation and disclosure requirements of International
Accounting Standards: Interim Financial Reporting (IAS34), the requirements of
the South African Companies Act and in compliance with the Listings Requirements
of the JSE Limited. The interim financial results have not been audited or
reviewed. The accounting policies and methods of computation applied in
preparing these interim financial statements are consistent with those applied
in the audited annual financial statements for the year ended 31 December 2009,
as published in the 2009 annual report. The effect of new and revised accounting
standards effective after the period of the most recent annual financial
statements have been considered and there has been no effect on accounting
policies and the results for the period ended 30 June 2010.
6. Reclassification of expenses
In the prior period ContinuitySA (Pty) Ltd included rent and utility costs in
operating expenses, these costs are now allocated and included in cost of sales,
the effect of which is included in a note to the financial results.
7. Events after the reporting date
No significant events have occurred in the period between the reporting date and
the date of this report.
8. The board
There has been no change to the board during the period under review other than
that which was disclosed in the most recent annual report.
9. Dividend
No dividend was declared for the period (2009: nil).
Consolidated statement of comprehensive income
Unaudited Unaudited
Six months Six months
ended ended
R`000 30 June 2010 30 June 2009
Continuing operations
Revenue 104 552 109 604
Cost of sales (52 447) (51 983)
Gross profit 52 105 57 621
Operating expenses excluding depreciation,
amortisation and impairment (42 833) (43 138)
Depreciation and amortisation (13 184) (14 095)
Impairments (1 500) (4 254)
Other income 65 95
Operating loss for the period (5 347) (3 771)
Finance income 925 1 399
Finance expenses (1465) (1 883)
Share of loss from associate (173) (269)
Loss before tax (6 060) (4 524)
Income tax expense (1 215) (2 284)
Loss for the period from continuing operations (7 275) (6 808)
Discontinued operations
Profit for the period from discontinued
operations- Interaction Call Centre (Pty) Ltd 5 336 5 522
(Loss)/ profit for the period from discontinued
operations- Sibize International Calling (Pty) Ltd (21 802) 2 763
Loss for the period from discontinued
operations- Dialogue South Africa (Pty) Ltd (1 063) (15 468)
Gain on disposal of subsidiary
Dialogue South Africa (Pty) Ltd 65 693 -
Profit / (loss) for the period 40 889 (13 991)
Other comprehensive loss
- Currency translation difference in
respect of foreign controlled entities - (562)
Total comprehensive income / (loss) for the period 40 889 (14 553)
Attributable to equity holders of the parent
- for continuing operations (8 755) (8 074)
- for discontinued operations 45 954 (8 065)
Attributable to non-controlling interest
- for continuing operations 1 480 704
- for discontinued operations 2 210 882
Earnings / (loss) per share (cents)
- Weighted in issue 12.4 (5.3)
- Fully diluted 12.4 (5.3)
Loss per share (cents) from continuing operations
- Weighted in issue (2.9) (2.6)
- Fully diluted (2.9) (2.6)
Earnings / (loss) per share (cents) from
discontinued operations
- Weighted in issue 15.3 (2.7)
- Fully diluted 15.3 (2.7)
Consolidated statement of financial position
Unaudited Audited
As at As at
30 June 31 December
R`000 2010 2009
Assets
Non-current assets 120 940 165 534
Property, plant and equipment 53 923 58 861
Intangible assets 2 889 4 426
Goodwill 44 785 45 981
Equity investments 4 724 39 266
Other non-current receivables 3 425 3 425
Deferred taxation 11 194 13 575
Current Assets 62 025 71 569
Loans receivable - current portion 3 547 3 382
Inventory 1 065 1 136
Trade and other receivables 24 312 41 005
Taxation debtor 2 166 2 147
Term deposits - 315
Bank balances 30 935 23 584
Non-current assets classified as held for sale 21 899 -
Total Assets 204 864 237 103
Equity and Liabilities
Equity attributable to equity holders of the parent 78 804 41 613
Issued capital 1 251 1 251
Share premium 167 777 167 777
Share option reserve 49 835
Accumulated loss (90 273) (128 250)
Non-controling interest 22 889 23 116
Total equity 101 693 64 729
Non-current Liabilities 6 220 13 218
Long-term liabilities 6 181 8 373
Deferred taxation 39 4 845
Current Liabilities 92 451 159 156
Trade and other payables 73 539 67 696
Short-term liabilities 7 740 10 150
Taxation - 191
Provisions 5 955 67 294
Bank overdraft 5 217 13 825
Liabilities associated with non-current assets
held for sale 4 500 -
Total Equity and Liabilities 204 864 237 103
Net asset value per share (cents) 26.3 13.9
Net tangible asset value per share (cents) 10.4 (2.9)
Debtors days 24.7 47.4
Creditors days 27.0 20.2
Consolidated statement of cash flows
Unaudited Unaudited
Six months Six months
ended ended
R`000 30 June 2010 30 June 2009
Cash generated by operations 41 753 24 672
Finance income 998 1 537
Finance expenses (1 550) (1 883)
Taxation paid (5 419) (7 520)
Dividends paid (3 917) (1 838)
Net cash flows from operating activities 31 865 14 968
Cash flows from investing activities
Investment in associate - (5 524)
Disposals/ (additions) of intangible assets 270 (801)
Additions to property, plant and equipment (9 165) (8 026)
Proceeds on disposal of property, plant
and equipment 1 673 -
Net cash flows from investing activities (7 222) (14 351)
Cash flows from financing activities
Loans (repaid)/ raised (2 193) (1 055)
Net cash flows from financing activities (2 193) (1 055)
Net increase in cash and cash equivalents 22 450 1 672
Cash and cash equivalents at beginning
of the period 9 759 36 343
Cash and cash equivalents at end
of the period 32 209 38 015
Consolidated statement of changes in equity
Unaudited Unaudited
Six months Six months
ended ended
R`000 30 June 2010 30 June 2009
Opening Equity 64 729 158 678
Share option reserve movement (8) 224
Total comprehensive income/ (loss) for the period
attributable to equity holders of the parent 37 199 (16 139)
- Profit/ (loss) for the period 37 199 (15 853)
- Currency translation difference in respect of
foreign controlled entities - (286)
Total comprehensive income for the period
attributable to non-controlling interest 3 690 1 586
- Profit for the period 3 690 1 862
- Currency translation difference in respect of
foreign controlled entities - (276)
Dividends paid to non-controlling interest (3 917) (1 838)
Closing Equity 101 693 142 511
Segment information
Segment results:
Unaudited Unaudited
Six Six
months months
ended ended
R`000 30 June 2010 30 June 2009
Business Continuity
Total external revenues 72 274 77 687
Intersegment revenues 121 254
Segment profit before interest, depreciation,
income tax and impairments 18 628 21 856
Finance expense (1 331) (1 385)
Finance income 331 -
Depreciation and amortisation (12 240) (13 175)
Share of loss from associate (173) (269)
Segment profit before income tax 5 215 7 027
Income tax (1 774) (2 872)
Profit for the period 3 441 4 155
Staffing
Total external revenues 32 278 30 500
Intersegment revenues - 1 407
Segment profit / (loss) before interest, depreciation,
income tax and impairments 287 (1 701)
Finance expense (611) (631)
Finance income 102 -
Depreciation and amortization (225) (211)
Segment loss before income tax (447) (2 543)
Income tax 25 389
Loss for the period (422) (2 154)
Head Office
Total external revenues - 1 417
Intersegment revenues - -
Segment loss before interest, depreciation,
income tax and impairments (4 377) (2 427)
Finance expense (257) (78)
Finance income 970 1 633
Depreciation and amortisation (10) -
Dividends received 4 975 -
Impairment of investment (13 883) -
Impairment of goodwill - (4 254)
Impairment of loans (3 300) -
Segment loss before income tax (15 882) (5 126)
Income tax 335 -
Loss for the period (15 547) (5 126)
Intersegment transactions
Total external revenues - -
Intersegment revenues (121) (7 371)
Segment loss before interest, depreciation,
income tax and impairments (5 200) (3 150)
Finance expense 733 211
Finance income (478) (234)
Depreciation and amortisation (709) (709)
Dividends received (4 975) -
Impairment of investment 13 883 -
Impairment of goodwill (1 195) -
Impairment of intangible assets (305) -
Impairment of loans 3 300 -
Segment profit / (loss) before income tax 5 054 (3 882)
Income tax 199 199
Profit / (loss) for the period 5 253 (3 683)
Total continuing operations
Total external revenues 104 552 109 604
Intersegment revenues - (5 710)
Segment profit before interest, depreciation,
income tax and impairments 9 338 14 578
Finance expense (1 465) (1 883)
Finance income 925 1 399
Depreciation and amortisation (13 184) (14 095)
Share of loss from associate (173) (269)
Impairment of goodwill (1 195) (4 254)
Impairment of intangible assets (305) -
Segment profit loss before income tax (6 060) (4 524)
Income tax (1 215) (2 284)
Loss for the period (7 275) (6 808)
Discontinued operations " Contact centre" Durban
Total external revenues 39 505 42 636
Intersegment revenues - -
Segment profit before interest, depreciation,
income tax and impairments 8 150 6 289
Finance income 73 95
Depreciation and amortisation (16) (5)
Segment profit before income tax 8 207 6 379
Income tax (2 871) (857)
Profit for the period 5 336 5 522
Discontinued operations "Contact centre" Cape Town
Total external revenues 6 845 26 295
Intersegment revenues - 5 710
Segment loss before interest, depreciation,
income tax and impairments (946) (14 085)
Finance expense (85) -
Finance income - 44
Depreciation and amortisation (32) (1 427)
Segment loss before income tax (1 063) (15 468)
Income tax - -
Loss for the period (1 063) (15 468)
Total
Total external revenues 150 902 178 535
Intersegment revenues - -
Segment profit before interest, depreciation,
income tax and impairments 16 542 6 782
Finance expense (1 551) (1 883)
Finance income 998 1 538
Depreciation and amortisation (13 232) (15 527)
Share of loss from associate (173) (269)
Impairment of goodwill (1 195) (4 254)
Impairment of intangible assets (305) -
Gain on disposal of subsidiary 65 693 -
Share of profit from joint venture 8 613 2 763
Impairment of investment (30 415) -
Profit / (loss) before income tax 44 975 (10 850)
Income tax (4 086) (3 141)
Profit/ (loss) for the period 40 889 (13 991)
Segment assets:
Unaudited Audited
As at As at
30 June 31 December
R`000 2010 2009
Business Continuity 135 846 124 199
Staffing 20 437 23 569
Head Office 123 773 113 382
Intersegment transactions (92 305) (52 164)
Total continuing operations 187 751 208 986
Discontinued operations - Contact centre
Durban 17 113 18 027
Discontinued operations Contact centre -
Cape Town - 10 090
Total 204 864 237 103
Investment in associate:
Unaudited Audited
As at As at
30 June 31 December
R`000 2010 2009
Business Continuity 4 579 4 890
Investment in joint venture:
Unaudited Audited
As at As at
30 June 31 December
R`000 2010 2009
Head Office 12 573 26 457
Geographic information:
In presenting information on the basis of geographical segments, segment revenue
is based on the geographical location of customers. Segment assets are based on
the geographical location of the assets.
Unaudited Unaudited
Six months Six months
ended ended
R`000 30 June 2010 30 June 2009
Revenues from external customers
-Botswana 2 993 2 697
-Mozambique 1 154 1 180
-South Africa 146 755 174 658
-Total 150 902 178 535
Unaudited Audited
As at As at
30 June 31 December
R`000 2010 2009
Non-current assets
-Botswana 1 419 2 126
-Mozambique 3 748 4 695
-South Africa 115 737 158 712
-Total 120 940 165 533
Notes:
1. Discontinued operations
1.1 Dialogue South Africa (Pty) Ltd ("Dialogue SA")
On 26 February 2010, the board of directors of Dialogue SA (previously Dialogue
Group SA (Pty) Ltd), lodged an application for voluntary liquidation of Dialogue
SA ("the liquidation") in the High Court of South Africa (Western Cape Division,
Cape Town)("High Court"). A provisional order for the liquidation was granted on
3 March 2010 and was made final on 14 April 2010 in the High Court. Dialogue SA
has been accounted for as a discontinued operation in terms of IFRS 5 Non-
current assets held for sale and discontinued operations.
The results of Dialogue SA included in the results of the group for the six
months ended 30 June 2010 are presented below. The prior period comparatives
have been re-presented for the discontinued operation.
Unaudited Unaudited
Six months Six months
ended ended
R`000 30 June 2010 30 June 2009
Revenue 6 845 26 295
Loss before depreciation, interest and income tax (946) (14 085)
Finance expense (85) -
Finance income - 44
Depreciation and amortisation (32) (1 427)
Loss for the period from discontinued operations (1 063) (15 468)
Net cash flows from operating activities (290) 960
Net cash flows from investing activities (49) (1 322)
Net decrease in cash and cash equivalents (339) (362)
Unaudited Audited
As at As at
30 June 31 December
R`000 2010 2009
Total assets - 10 090
Total liabilities - 103 835
Net assets attributable to group - (93 745)
1.2 Sibize International Calling (Pty) Ltd ("Sibize")
Sibize has a client that contributes a material portion of Sibize`s annual
turnover (the "Client") based on a five year contract, ending 31 May 2012, to
provide the Client with outsourced call-centre services (the "Agreement"). The
Client issued Sibize with a notice of early termination of the Agreement. Sibize
has agreed to such early termination subject to specific terms as detailed in a
settlement agreement. Sibize has been accounted for as a discontinued operation
in terms of IFRS 5 Non-current assets held for sale and discontinued operations.
The results of Sibize included in the results of the group for the six months
ended 30 June 2010 are presented below. The prior period comparatives have been
re-presented for the discontinued operation.
Unaudited Unaudited
Six months Six months
ended ended
R`000 30 June 2010 30 June 2009
Revenue 55 773 42 579
Profit before depreciation, interest and income tax 14 651 4 967
Finance expense (488) (1 280)
Finance income 208 207
Depreciation and amortisation (191) (57)
Income tax (5 567) (1 074)
Profit for the period 8 613 2 763
Impairment of investment in Sibize (30 415) -
(Loss)/profit for the period from discontinued
operations (21 802) 2 763
Net cash flows from operating activities 47 876 89 245
Net cash flows from investing activities (9 293) (50 091)
Net cash flows from financing activities (32 921) (8 526)
Net increase in cash and cash equivalents 5 662 30 628
As at As at
30 June 31 December
R`000 2010 2009
Total assets 57 511 39 211
Total liabilities 44 938 30 168
Net assets attributable to group 12 573 9 043
1.3 Interaction Call Centre (Pty) Ltd ("Interaction")
Interaction`s client has issued notice of termination of the contract.
Interaction has been accounted for as a discontinued operation in terms of IFRS
5 Non-current assets held for sale and discontinued operations.
The results of Interaction included in the results of the group for the six
months ended 30 June 2010 are presented below. The prior period comparatives
have been re-presented for the discontinued operation.
Unaudited Unaudited
Six months Six months
ended ended
R`000 30 June 2010 30 June 2009
Revenue 39 505 42 636
Profit before depreciation, interest and income tax 8 150 6 289
Finance income 73 95
Depreciation and amortisation (16) (5)
Income tax (2 871) (857)
Profit for the period from discontinued operations 5 336 5 522
Net cash flows from operating activities (913) 74
Net cash flows from investing activities (111) (13)
Net (decrease)/ increase in cash and
cash equivalents (1 024) 61
Unaudited Audited
As at As at
30 June 31 December
R`000 2010 2009
Total assets 9 326 13 894
Total liabilities 4 500 5 899
Net assets attributable to group 4 826 7 995
2. Headline earnings per share
Unaudited Unaudited
Six months Six months
ended ended
R`000 30 June 2010 30 June 2009
Headline earnings / (loss) calculation
Net profit / (loss) attributable to equity
holders of the parent 37 199 (15 853)
Adjusted for
- Impairment of goodwill 1 195 4 254
- Impairment of intangible assets 305 -
- Impairment of investment in joint venture 30 415 -
- Gain on disposal of property, plant and equipment - 40
- Gain on disposal of subsidiary
Dialogue South Africa (Pty) Ltd (65 693) -
Headline earnings/ (loss) 3 421 (11 559)
Number of shares (`000)
- Total 299 075 299 075
- Weighted in issue 299 075 299 075
- Fully diluted 299 075 299 075
Headline earnings / (loss) per share (cents)
- Weighted in issue 1.1 (3.9)
- Fully diluted 1.1 (3.9)
Continuing operations
Headline loss from continuing operations calculation
Net loss attributable to equity holders
of the parent (8 755) (7 787)
Adjusted for
- Impairment of goodwill 1 195 4 254
- Impairment of intangible assets 305 -
- Gain on disposal of property, plant and equipment - 40
Headline loss (7 255) (3 493)
Headline loss per share (cents) from continuing operations
- Weighted in issue (2.4) (1.2)
- Fully diluted (2.4) (1.2)
Discontinued operations
Headline earnings / (loss) from discontinued operations calculation
Net profit/ (loss) attributable to equity holders
of the parent 45 954 (8 066)
Adjusted for
- Impairment of investment in joint venture 30 415 -
- Gain on disposal of subsidiary
Dialogue South Africa (Pty) Ltd (65 693) -
Headline earnings/ (loss) 10 676 (8 066)
Headline earnings / (loss) per share (cents) from discontinued operations
- Weighted in issue 3.5 (2.7)
- Fully diluted 3.5 (2.7)
3. Related party balances and transactions
Unaudited Audited
As at As at
30 June 31 December
R`000 2010 2009
Balances:
Loan to Sibize International Calling (Pty) Ltd 3 547 3 381
Loan from Candice Roberts to
CallForce Direct (Pty) Ltd 337 (283)
The loan with Sibize International Calling (Pty) Ltd is unsecured, interest is
charged at the prime rate and the loan is repayable on demand.
The loan from Candice Roberts is unsecured, interest is charged at the prime
rate and is repayable on demand.
Unaudited Unaudited
Six months Six months
ended ended
R`000 30 June 2010 30 June 2009
Transactions:
Interest received from
Sibize International Calling (Pty) Ltd 277 201
Reimbursement received from
Sibize International Calling (Pty) Ltd 4 704 5 595
Reimbursement paid to
Sibize International Calling (Pty) Ltd (359) -
Management fees paid to Tlhalefang Placements CC - 1 040
Consulting fees paid to
MSG Afrika Investment Holdings (Pty) Ltd 64 30
Salary expenses paid to Tlhalefang Placements CC 22 435 24 002
4. Property, plant and equipment
Unaudited
As at
R`000 30 June 2010
Leasehold improvements
- Opening carrying value 20 486
- Additions 3 780
- Disposals -
- Depreciation (3 256)
- Closing carrying value 21 010
Land and buildings
- Opening carrying value 2 821
- Additions -
- Disposals (451)
- Depreciation (18)
- Closing carrying value 2 352
Computer equipment
- Opening carrying value 25 392
- Additions 4 320
- Disposals (542)
- Depreciation (7 145)
- Closing carrying value 22 025
Furniture & fittings
- Opening carrying value 5 195
- Additions 1 057
- Disposals (458)
- Depreciation (1 043)
- Closing carrying value 4 751
Plant & equipment
- Opening carrying value 4 719
- Additions 8
- Disposals (207)
- Depreciation (777)
- Closing carrying value 3 743
Motor vehicles
- Opening carrying value 248
- Additions -
- Disposals (15)
- Depreciation (31)
- Closing carrying value 202
Total
- Opening carrying value 58 861
- Additions 9 165
- Disposals (1 673)
- Depreciation (12 270)
- Closing carrying value 54 083
5. Reclassification of expenses
In the prior period ContinuitySA (Pty) Ltd included rent and utility costs in
operating expenses. These costs are now allocated to and included in `cost of
sales` in the statement of comprehensive income. The results of the prior year
interim period ending 30 June 2009 have been amended accordingly to reflect this
reclassification. The effect of the reclassification is as follows:
Previously Re-
reported classification Amended
Unaudited Unaudited Unaudited
Six months Six months Six months
ended ended ended
R`000 30 June 2009 30 June 2009 30 June 2009
Continuing operations
Revenue 109 604 - 109 604
Cost of sales (38 382) (13 601) (51 983)
Gross profit 71 222 (13 601) 57 621
Operating expenses excluding
depreciation, amortisation and
impairment (56 739) 13 601 (43 138)
Depreciation and amortisation (14 095) - (14 095)
Impairment (4 254) - (4 254)
Other income 95 - 95
Operating loss for the period (3 771) - (3 771)
6. Capital commitments
Unaudited Audited
As at As at
30 June 31 December
R`000 2010 2009
Authorised and contracted 1 588 82
Authorised and not contracted 3 926 14 300
Total 5 514 14 382
7. Dividends paid by subsidiaries to non-controlling interest
Unaudited Unaudited
Six months Six months
ended ended
R`000 30 June 2010 30 June 2009
ContinuitySA (Pty) Ltd 1 960 1 838
Interaction Call Centre(Pty) Ltd 1 957 -
Total 3 917 1 838
8. Impairments
Unaudited Unaudited
Six months Six months
ended ended
R`000 30 June 2010 30 June 2009
Included in impairments is the following:
Impairment of goodwill (1 195) (4 254)
Impairment of intangible assets (305) -
Total (1 500) (4 254)
The cash generating units of acquired operations were tested for impairment at
30 June 2010, in line with the guidelines of IFRS. The discount rates were
consistent with those applied in the audited annual financial statements for the
year ended 31 December 2009. In the case of CallForce Direct (Pty) Ltd
("CallForce"), an impairment loss of R1.5m was allocated firstly to goodwill and
the remaining impairment loss allocated to the intangible assets included in the
unit.
By order of the board
A.C. Farthing A.T. Kretzmann
Chief Executive Financial Director
21 September 2010
Directorate and administration
P.A. Watt (Chairman)*, A.C. Farthing (CEO)#, A.T. Kretzmann(Financial Director),
J.J. Drew*#, A. Khumalo*, R.K. Mangena*, G. Mkhari* S.J.H. Rodger*#
*Non-executive Independent #British
Company Secretary and registered office: L. Marran, 1st Floor, Convention Tower,
Cnr Heerengracht Street and Coen Steytler Avenue, Foreshore, Cape Town, 8001 (PO
Box 8355, Rogge Bay, 8012)
Transfer Secretaries: Computershare Investor Services (Pty) Limited, 70 Marshall
Street, Johannesburg, 2001 (PO Box 61051, Marshalltown, 2107)
Designated Advisor: PSG Capital (Pty) Limited (Johannesburg branch), Ground
Floor, DM Kisch House, Inanda Greens Business Park, 54 Wierda Road West, Wierda
Valley, Sandton, 2196 (PO Box 987, Parklands, 2121)
Date: 21/09/2010 12:38:01 Produced by the JSE SENS Department.
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