| Mon 11 Oct 2010, 17:14 | | CMA - Command Holdings Limited - Unaudited interim financial results for the |
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CMA
CMA
CMA - Command Holdings Limited - Unaudited interim financial results for the
period ended 30 June 2010 and further cautionary announcement
Command Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1999/014759/06)
Share code: CMA ISIN: ZAE000023131
("Command" or "the Group" or "the Company")
UNAUDITED INTERIM FINANCIAL RESULTS FOR THE PERIOD ENDED 30 JUNE 2010 AND
FURTHER CAUTIONARY ANNOUNCEMENT
GROUP CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited Reviewed Reviewed
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2010 2009 2009
R000`s R000`s R000`s
Revenue 91 066 71 709 161 509
Cost of Sales (59 837) 47 623) (109 402)
Gross profit 31 230 24 086 52 107
Operating costs
Selling and administrative expenses (22 445) (16 979) (37 945)
Attributable income incurred from trade 8 784 7 107 14 162
Other income 105 48 63
Net profit before interest 8 890 7 155 14 225
Interest paid on borrowings ( 653) ( 670) ( 947)
Interest received 333 342 711
Attributable profit 8 570 6 827 13 989
Other net non-operating costs (1 356) (1 296) (3 011)
Net profit before taxation 7 214 5 531 10 978
Taxation (2 020) (1 340) (2 374)
Net profit for the period 5 194 4 191 8 604
Ordinary shareholders` net profit 5 194 4 191 8 604
Earnings per share (cents) 3.93 3.17 6.51
Headline earnings per share (cents) 3.93 3.17 6.51
Weighted number of shares (`000) 132 250 132 250 132 250
GROUP CONSOLIDATED CASH FLOW STATEMENTS
Unaudited Reviewed Reviewed
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2010 2009 2009
R000`s R000`s R000`s
Cash flows from operating activities 3 516 (1 459) (3 398)
Cash flows from financing activities (3 592) ( 201) (1 007)
Cash flows from investment activities ( 653) (1 789) (1 601)
Net movement in cash resources ( 729) (3 449) (6 006)
Cash resources at beginning of period 851 6 857 6 857
Cash resources at end of period 122 3 408 851
GROUP SEGMENTAL REVIEW
Guarding
Services Total
R000`s R000`s
Revenue 91 066 91 066
Earnings 5 194 5 194
Assets 81 636 81 636
Liabilities 18 917 18 917
Depreciation 1 264 1 264
% %
Revenue 100 100
Earnings 100 100
Assets 100 100
Liabilities 100 100
Depreciation 100 100
GROUP CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Reviewed Reviewed
At At At
30 June 30 June 31 December
2010 2009 2009
R000`s R000`s R000`s
ASSETS
Non-current assets
Tangible assets 11 122 9 662 10 468
Intangible assets 5 897 5 897 5 897
Deferred Taxation 4 470 6 230 5 480
Investments, loans and rental advances 16 128 7 510 15 878
Total non-current assets 37 617 29 299 37 723
Current Assets
Inventories 906 589 824
Accounts receivable 42 991 35 469 32 862
Bank balances and cash 122 3 408 851
Total current assets 44 019 39 466 34 537
Total assets 81 636 68 765 72 260
EQUITY AND LIABILITIES
Capital and reserves 1 1 1
Share premium 16 338 16 338 16 338
Retained income 46 380 36 773 41 186
Total capital reserves 62 719 53 112 57 525
Non-current liabilities
Long-term borrowings 2 305 2 603 2 616
Total non-current liabilities 2 305 2 603 2 616
Current liabilities
Short-term borrowings 2 847 3 525 2 242
Accounts payable and accruals 8 662 5 505 4 936
Taxation 3 582 1 340 2 572
Provisions 1 521 2 680 2 369
Total current liabilities 16 612 13 050 12 119
Total equity and liabilities 81 636 68 765 72 260
Net assets per share (cents) 47.42 40.16 43.50
GROUP CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share
capital
Share and Retained
Capital premium income
R000`s R000`s R000`s
Balance at 31 December 2008 1 16 338 32 582
Ordinary shareholders` net income 0 0 4 191
Balance at 31 June 2009 1 16 338 36 773
Ordinary shareholders` net income 0 0 4 413
Balance at 31 December 2009 1 16 338 41 186
Ordinary shareholders` net income 0 0 5 194
Balance at 31 June 2010 1 16 338 46 380
GENERAL REVIEW
NATURE OF BUSINESS
The Group offers value-added guarding, cash-in transit, forensic
investigation, electronic security, alarm installations and monitoring, armed
response service and security consultancy.
CHIEF EXECUTIVE OFFICER`S REVIEW
The Group`s businesses continue to perform satisfactorily. The Group made a
profit of R5,194 million during the period. The Guarding Division continued
to focus on organic growth despite the depressed corporate spending
environment. The Group is well-placed with its Black Economic Empowerment and
experienced management team to continue securing new contracts which will
result in further sustainable growth and profits.
SUBSEQUENT EVENTS
No events material to the understanding of the report, had occurred in the
period between 30 June 2010 and the date of this report.
FINANCIAL RESULT
The Board is pleased to report to shareholders an improved performance for the
six month period January 2010 to June 2010 in comparison with the previous six
months and the comparative period for the prior year. Revenue for the Group
increased by 27% over the six month period. Net profit before Taxation
attributable to shareholders increased by 30.4% to R7,214 million. The
increase in fuel and labour costs continue to impact on the Group`s profits.
Headline earnings per share increased from 3.17c to 3.93c. The focus of
management is on cost and margin maintenance. This will be a continued focus
of management to maximize revenue growth.
PREPARATION OF THE INTERIM RESULTS/ACCOUNTING POLICIES
These unaudited condensed consolidated interim financial statements have been
prepared in accordance with the International Financial Reporting Standards
("IFRS") and IAS 34 - Interim Reporting using accounting policies which are
consistent with those for the year ended 31 December 2009 and comply with the
relevant sections of the Companies Act of South Africa and the Listings
Requirements of the JSE Limited. These 6 months interim results for the
period ended 30 June 2010 have not been reviewed or audited by the Group`s
Auditors. The reviewed results for the six months ended 30 June 2009 were
reviewed by SAB&T and their unqualified review report is available for
inspection at the Company`s registered office.
PROGRESS REPORT TO SHAREHOLDERS REGARDING THE ANNUAL REPORT
The 2009 Annual Report will be posted to shareholders on or before 31 October
2010 which will include a notice of annual general meeting.
PROSPECTS
The Group continues to look for opportunities and, in line with its focus
strategy, its performance in the year ahead will exceed that of the past year.
The Group`s enhanced Black Economic Empowerment status and service delivery to
the clients, places it in a strong position to continue with organic growth
which will continue to generate sustainable profits for the Group. Management
are optimistic for the Group`s future prospects. This general forecast has
not been reviewed nor audited by the Company`s Auditors.
FURTHER CAUTIONARY ANNOUNCEMENT
Further to the cautionary announcement dated Friday, 30 April 2010, renewed on
Monday, 14 June 2010, Wednesday, 28 July 2010 and Friday, 10 September 2010,
shareholders are advised that negotiations are still in progress which, if
successfully concluded, may have a material effect on the price of the
Company`s securities. Accordingly, shareholders are advised to continue
exercising caution when dealing in the Company`s securities until a full
announcement is made.
By order of the Board
Z.J. Sithole M.S. Mowzer
Non-executive Chairman Chief Executive Officer
Cape Town
11 October 2010
Directors: Z.J. Sithole (Non-executive Chairman), M.S. Mowzer (Chief Executive
Officer), C.T. Vermaak (Financial) M.I. Parker (Non-executive), K.G. Druker
(Non-executive) and F.M. Moshesh (Non-executive) continued to serve as
directors during the period under review.
Company Secretary: Resolve Secretarial Services CC - D.C. McLachlan
Transfer secretaries: Computershare Investor Services (Pty) Limited, Ground
Floor, 70 Marshall Street, Johannesburg, 2001 (PO Box 61051, Marshalltown,
2107)
Registered office: 106 De Wet Road, Goodwood, 7463 (PO Box 13763, N1 City,
7463)
Sponsor : Deloitte & Touche Sponsor Services (Pty) Limited
Date: 11/10/2010 17:14:00 Produced by the JSE SENS Department.
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