|
MIX
MIX
MIX - Mix Telematics Limited - Unaudited group interim financial results
for the six month period ended 30 September 2010
MIX TELEMATICS LIMITED
Incorporated in the Republic of South Africa
Registration number 1995/013858/06
JSE code: MIX ISIN : ZAE000125316
("MiX" or "the Company" or "the Group")
Unaudited group interim financial results
for the six month period ended 30 September 2010
- Revenue increased to R436 million
- R254 million annuity
- R185 million foreign currency
- EBITDAR increased to R83 million
- Adjusted HEPS maintained at 5,0 cents per share
- Cash generated from operations maintained at R80 million
A WORD FROM THE CEO, S JOSELOWITZ ("JOSS")
Relative to the previous comparative reporting period, the standout
difference for our Group is that we started this year with a couple of big
wins and the implementation of these contracts is well progressed. Where 12
months ago, I reported an absolute absence of what we term "mega-deals",
this year we were proud to kick off with the news that we had been awarded
the Eskom fleet tender. This was the culmination of a lengthy race against
our major competitors and again demonstrates our ability to compete against
even much larger players. Thus far, we have confirmed orders for over 3 000
units from this customer and we estimate the total fleet potential to be
close to 9 000 vehicles. Also significant is that large global customers
have again been affirming their confidence in our product and service
delivery - for example, we successfully won a 1 000-plus unit tender for
PDO, a Shell operating company based in Oman.
Strong cash generation remains a defining feature of the Group and again I
am happy to report that our operations did not disappoint. The Group
generated over R80 million from operations and reduced net debt by R36
million from this time last year. Net debt now sits at just over R53
million, down from R89 million 12 months ago - this reduction was achieved
even after paying out R33 million to shareholders.
Trading conditions during the period under review were a mixed bag. The
recent World Cup event in South Africa was a lot of fun but was not good for
our local business and frankly, we did not expect anything different.
Some of our other regions traded quite strongly, most notably our Middle-
East operation had a good six months. Although still trading in the red, our
North American operation showed good revenue growth thanks in part to some
repeat orders from existing customers - Baker Hughes have rolled out our
devices into another 650 vehicles. Also, our focus into Latin America has
started to bear fruit with over 3 000 subscribers added during the period
under review.
From our perspective, many of the world economies are still fragile and the
UK has been particularly hard hit resulting in disappointing results from
our operation based in Birmingham.
The strength of the South African currency (the currency in which we report)
continues to influence our results as we have positioned this Group as a
Rand-hedge play. A strong Rand is not good for us and the currency has
strengthened dramatically from the comparative reporting period to now. In
fairness, the negative impact is somewhat reduced while some of our global
operations are trading in the red.
Competition in our industry is stiff but we have repeatedly demonstrated
that we are strong and able and as far as global players are concerned, are
ranked amongst the very best. We expect the weakness in global economies to
remain so for some time but despite this, I feel strongly that we are well
positioned to achieve our medium-term objectives. Under these less than
ideal conditions and despite flat revenue and profit performance, we have
again succeeded in growing our subscriber base and the associated recurring
revenue to R254 million for the six months (up R17 million from the
comparative period) - this is another indicator that your Group is growing
in strength.
One achievement that I am particularly proud of is that we have once again
been adjudged by the CRF Institute to be one of South Africa`s top employers
- this is the seventh year in a row that we have qualified in this category.
On this note, I would like to extend the board`s and my sincere thanks to
all of our executives and employees for their efforts over the last 15 years
and particularly the past six months. It is thanks to them that we have such
a great business.
Condensed group income statement
Six months Six months 12 months
ended ended ended
30 September 30 September 31 March
2010 2009 2010
Unaudited Unaudited Audited
R`000 R`000 R`000
Revenue 435 575 431 292 840 488
Cost of sales (171 137) (176 097) (337 603)
Gross profit 264 438 255 195 502 885
Other income - net 463 4 323 1 547
Operating expenses (220 565) (212 430) (394 577)
Operating profit (note 3) 44 336 47 088 109 855
Finance income 1 532 8 698 3 665
Finance cost (8 395) (17 826) (19 994)
Share of joint venture - 13 (529)
(losses)/profit
Profit before taxation 37 473 37 973 92 997
Taxation (13 886) (14 221) (26 909)
Profit for the period 23 587 23 752 66 088
attributable to shareholders
Condensed group statement of comprehensive income
Six months Six months 12 months
ended ended ended
30 September 30 September 31 March
2010 2009 2010
Unaudited Unaudited Audited
R`000 R`000 R`000
Profit for the period 23 587 23 752 66 088
attributable to
shareholders
Other comprehensive
(losses)/income:
Exchange differences on (2 943) (30 307) (36 340)
translating foreign
entities
Fair value reserve on 1 290 (40) 167
available-for-sale
financial asset
Exchange differences on (2 068) (11 932) (14 981)
net investment in
foreign operations
Taxation relating to - 1 331 1 752
components of other
comprehensive income
Other comprehensive (3 721) (40 948) (49 402)
loss for the period,
net of tax
Total comprehensive 19 866 (17 196) 16 686
income/(loss) for the
period attributable to
shareholders
Ordinary shares (`000)
- in issue 657 000 657 000 657 000
- weighted average 657 000 657 000 657 000
- diluted weighted 660 394 657 000 657 974
average
Attributable earnings
per share (cents)
- basic 3,6 3,6 10,1
- diluted 3,6 3,6 10,0
Reconciliation of headline earnings and adjusted headline earnings
Six months Six months 12 months
ended ended ended
30 September 30 September 31 March
2010 2009 2010
Unaudited Unaudited Audited
R`000 R`000 R`000
Profit for the period 23 587 23 752 66 088
attributable to shareholders
Adjusted for:
Loss on disposal of 28 82 496
property, plant, equipment
and intangible assets
Taxation on the above (9) - (111)
components
Headline earnings 23 606 23 834 66 473
Headline earnings per share
(cents)
- basic 3,6 3,6 10,1
- diluted 3,6 3,6 10,1
Headline earnings 23 606 23 834 66 473
Amortisation of IFRS3 10 840 10 806 20 801
intangible assets
Taxation on the amortisation (1 615) (1 626) (3 217)
of the IFRS3 intangible
assets
Adjusted headline earnings 32 831 33 014 84 057
Adjusted headline earnings
per share (cents)
- basic 5,0 5,0 12,8
- diluted 5,0 5,0 12,8
Condensed group statement of financial position
30 September 30 31 March
September
2010 2009 2010
Unaudited Unaudited Audited
R`000 R`000 R`000
ASSETS
Non-current assets
Property, plant and 42 765 45 002 44 424
equipment
Intangible assets 651 756 664 439 653 171
Available-for-sale 3 903 3 198 2 683
financial asset and other
assets
Deferred tax assets 13 586 16 680 8 209
Total non-current assets 712 010 729 319 708 487
Current assets
Inventory 40 432 32 397 29 691
Inventory held in client 26 709 23 306 24 809
vehicles
Trade and other receivables 118 635 114 597 126 929
Taxation 1 503 74 1 857
Restricted cash 1 653 1 320 1 639
Cash and cash equivalents 104 065 86 283 155 011
Total current assets 292 997 257 977 339 936
Total assets 1 005 007 987 296 1 048 423
EQUITY AND LIABILITIES
Capital and reserves
Share capital 13 13 13
Share premium 787 353 787 353 787 353
Retained 27 499 (5 574) 36 762
earnings/(accumulated
losses)
Other reserves (177 475) (166 677) (174 306)
Total equity 637 390 615 115 649 822
Non-current liabilities
Borrowings 56 551 90 789 96 056
Deferred tax liabilities 28 035 36 580 27 067
Provisions 15 290 15 077 14 703
Total non-current 99 876 142 446 137 826
liabilities
Current liabilities
Trade and other payables 133 967 115 373 124 090
Borrowings 71 794 52 248 71 740
Taxation 3 239 10 884 3 964
Bank overdraft 28 998 32 548 35 347
Provisions 29 743 18 682 25 634
Total current liabilities 267 741 229 735 260 775
Total equity and 1 005 007 987 296 1 048 423
liabilities
Net borrowings (note 5) (53 278) (89 302) (48 132)
Net asset value per share 97,0 93,6 98,9
(cents)
Net tangible asset value (2,2) (7,5) (0,5)
per share (cents)
Capital expenditure
- incurred 27 103 19 310 45 658
- authorised but not spent 17 188 10 898 27 543
Condensed group statement of cash flows
Six months Six months 12 months
ended ended ended
30 September 30 September 31 March
2010 2009 2010
Unaudited Unaudited Audited
R`000 R`000 R`000
Cash generated from 80 282 79 754 174 529
operations
Net financing costs (5 800) (8 734) (15 178)
Taxation paid (18 676) (15 810) (36 334)
Net cash generated 55 806 55 210 123 017
from operating
activities
Investing activities
Capital expenditure (27 103) (19 310) (45 658)
Proceeds from 205 - 1 350
disposal of
property, plant and
equipment and
intangible assets
Net cash utilised in (26 898) (19 310) (44 308)
investing activities
Financing activities
Net borrowings (39 449) (58 177) (33 312)
repaid
Dividends paid (32 810) (26 280) (26 247)
Net cash utilised in (72 259) (84 457) (59 559)
financing activities
Net (43 351) (48 557) 19 150
(decrease)/increase
in cash and cash
equivalents
Cash and cash 119 664 112 363 112 363
equivalents at
beginning of period
Exchange losses on (1 246) (10 071) (11 849)
cash and cash
equivalents
Cash and cash 75 067 53 735 119 664
equivalents at end
of period
Abbreviated segmental analysis
Inter-
Total segment
revenue revenue EBITDA
R`000 R`000 R`000
Six months ended
September 2010
Africa Vehicle tracking and 168 914 (2 748) 33 453
recovery
Fleet management 93 693 (462) 21 919
United Kingdom Fleet management 82 649 - (423)
North America Fleet management 23 987 - (2 496)
Middle East Fleet management 54 737 - 8 522
International Fleet management and 96 416 (81 611) 19 770
development
Corporate and - - (9 004)
consolidation
journal entries
Inter-segment (84 821) 84 821
elimination
Total 435 575 - 71 741
Six months ended
September 2009
Africa Vehicle tracking and 163 096 (2 201) 37 668
recovery
Fleet management 77 951 (2 936) 15 119
United Kingdom Fleet management 120 492 (823) 6 965
North America Fleet management 9 759 (10) (5 989)
Middle East Fleet management 54 086 (3 381) 6 060
International Fleet management and 72 449 (59 541) 17 860
development
Corporate and 2 747 (396) (5 445)
consolidation
journal entries
Inter-segment (69 288) 69 288 -
elimination
Total 431 292 - 72 238
12 months ended
March 2010
Africa Vehicle tracking and 328 221 (5 115) 76 871
recovery
Fleet management 160 534 (7 383) 32 484
United Kingdom Fleet management 204 924 (1 978) 6 368
North America Fleet management 23 920 (9) (11 031)
Middle East Fleet management 108 281 (6 036) 9 550
International Fleet management and 156 812 (121 683) 50 476
development
Corporate and - - (4 489)
consolidation
journal entries
Inter-segment (142 204) 142 204 -
elimination
Total 840 488 - 160 229
EBITDAR Assets
R`000 R`000
Six months
ended
September
2010
Africa Vehicle tracking and 43 292 243 322
recovery
Fleet management 23 441 56 071
United Fleet management (231) 101 987
Kingdom
North America Fleet management (2 496) 12 704
Middle East Fleet management 8 522 47 282
International Fleet management and 19 770 232 786
development
Corporate and (9 242) 510 574
consolidation
journal
entries
Inter-segment (199 719)
elimination
Total 83 056 1 005 007
Six months
ended
September
2009
Africa Vehicle tracking and 46 648 239 404
recovery
Fleet management 15 690 66 391
United Fleet management 6 965 122 961
Kingdom
North America Fleet management (5 989) 15 790
Middle East Fleet management 6 060 49 582
International Fleet management and 17 860 230 375
development
Corporate and (5 445) 576 681
consolidation
journal
entries
Inter-segment - (313 888)
elimination
Total 81 789 987 296
12 months
ended March
2010
Africa Vehicle tracking and 94 448 272 194
recovery
Fleet management 33 802 72 301
United Fleet management 6 368 112 424
Kingdom
North America Fleet management (11 031) 11 770
Middle East Fleet management 9 550 60 748
International Fleet management and 50 476 259 393
development
Corporate and (4 584) 506 464
consolidation
journal
entries
Inter-segment (246 871)
elimination
Total 179 029 1 048 423
Condensed group statement of changes in equity
Share Share Other
capital premium reserves
R`000 R`000 R`000
Balance at 31 March 2009 13 787 353 (126 893)
Dividends paid (note 6) - - -
Total comprehensive loss for the - - (40 948)
period
Share based payments - - 1 164
Balance at 30 September 2009 13 787 353 (166 677)
Total comprehensive income for - - (8 454)
the period
Share based payments - - 825
Balance at 31 March 2010 13 787 353 (174 306)
Dividend paid (note 6) - - -
Total comprehensive income for - - (3 721)
the period
Share based payments - - 552
Balance at 30 September 2010 13 787 353 (177 475)
Retained
earnings/
(accumulated
losses) Total
R`000 R`000
Balance at 31 March 2009 (3 046) 657 427
Dividends paid (note 6) (26 280) (26 280)
Total comprehensive loss 23 752 (17 196)
for the period
Share based payments - 1 164
Balance at 30 September (5 574) 615 115
2009
Total comprehensive 42 336 33 882
income for the period
Share based payments - 825
Balance at 31 March 2010 36 762 649 822
Dividend paid (note 6) (32 850) (32 850)
Total comprehensive 23 587 19 866
income for the period
Share based payments - 552
Balance at 30 September 27 499 637 390
2010
Notes to the condensed unaudited group interim financial results
1. Basis of preparation and accounting policies
These condensed unaudited group interim financial results for the half year
ended 30 September 2010 have been prepared in accordance with the
recognition and measurement criteria of International Financial Reporting
Standards ("IFRS") and are in compliance with IAS 34: Interim Financial
Reporting, AC 500 standards as issued by the Accounting Practices Board or
its successor, the Listings Requirements of the JSE Limited and the South
African Companies Act. These interim financial results have not been audited
or reviewed by the Group`s auditors.
The condensed unaudited group interim financial results do not include all
the information and disclosures required in the annual financial results and
should be read in conjunction with the Group`s annual financial statements
for the year ended 31 March 2010, which have been prepared in accordance
with IFRS.
The accounting policies applied are consistent with those followed in the
preparation of the Group`s annual financial statements for the year ended 31
March 2010, except where the Group has adopted new or revised accounting
standards.
The Group has adopted the required new or revised accounting standards in
the current period, none of which had a material impact on the Group`s
results.
2. Operating segments
The MiX Telematics businesses are managed primarily on a geographic and also
on a product basis. During the current period, together with profit measures
previously used, a new additional measure of profit performance of the
operating segments has been introduced being; earnings before interest, tax,
depreciation, amortisation and depreciation of inventory in client vehicles
("EBITDAR"). A reconciliation of EBITDAR to operating profit is set out in
note 3.
3. Operating profit, EBITDA and EBITDAR
Six months Six months 12 months
ended ended ended
30 September 30 September 31 March
2010 2009 2010
Unaudited Unaudited Audited
R`000 R`000 R`000
Operating profit 44 336 47 088 109 855
Add depreciation and 27 405 25 150 50 374
amortisation (note 4)
EBITDA per segmental 71 741 72 238 160 229
analysis
Add inventory in 11 315 9 551 18 800
client vehicles
depreciated
EBITDAR per segmental 83 056 81 789 179 029
analysis
4. Depreciation and amortisation
Six months Six months 12 months
ended ended ended
30 September 30 September 31 March
2010 2009 2010
Unaudited Unaudited Audited
R`000 R`000 R`000
Depreciation and 16 565 14 344 29 573
amortisation
Amortisation of IFRS3 10 840 10 806 20 801
intangible assets
Sub-total 27 405 25 150 50 374
Inventory in client 11 315 9 551 18 800
vehicles depreciated
Total 38 720 34 701 69 174
5. Net borrowings
Net borrowings is calculated as being interest bearing borrowings less cash
and cash equivalents, but excluding restricted cash.
6. Dividends
No interim dividend was declared as per our policy. A final dividend of
R32,9 million (2010: R26,3 million) was paid during the period under review.
Using shares in issue of 657 million (2010: 657 million) this equates to a
dividend of 5,0 (2010: 4,0) cents per share.
7. Contingent liabilities
7.1. Connection incentives
The Group receives connection/upgrade incentives from Mobile Telephone
Networks (Proprietary) Limited for connecting subscribers to their network.
In the event that a subscriber contract is terminated during the contract
period, the full amount of the connection/upgrade incentive received for
this subscriber contract becomes repayable. In the unlikely event that every
subscriber contract is terminated prematurely, the potential liability would
amount to R76,8 million (30 September 2009: R75,6 million and 31 March 2010:
R79.6 million). No loss is expected under this arrangement.
8. Exchange rates
30 September 30 September 31 March
2010 2009 2010
The following major
rates of exchange were
used:
SA Rand: United States 6,95 7,43 7,37
Dollar - closing
SA Rand: United States 7,46 8,19 7,85
Dollar - average
SA Rand: British Pound - 10,98 11,83 11,10
closing
SA Rand: British Pound - 11,34 12,43 12,51
average
9. Events after the reporting period
The directors are not aware of any matter material, or otherwise, arising
since the period end and up to the date of this report, not otherwise dealt
with herein.
10. Changes to the Board
As previously announced, Mr Anthony Welton resigned as interim executive
financial director and resumed the role of non-executive director on 31 July
2010. On 1 August 2010, Mrs Megan Pydigadu was appointed as executive
financial director, Mr Afzal Patel relinquished his role of audit committee
chair, Mr Anthony Welton resumed the role of chair of the audit committee
and Mr Hubert Brody was appointed as non-executive director. On 11 November
2010, Ms Fundiswa Roji, previously an alternate board member to Mr Afzal
Patel, was appointed non-executive director and Mr Howard Scott was
appointed as an executive director.
COMMENTARY
1. Nature of business
MiX is a group that is focused on all levels of vehicle telematics,
combining vehicle tracking and recovery, fleet management, driver and
passenger safety and compliance services.
2. Operations
MiX Telematics Africa
MiX Telematics Africa comprises Matrix, the vehicle tracking and recovery
business, the Enterprise business which focuses on providing large scale
Enterprise solutions and RSA Fleet which provide fleet management solutions
to clients in South Africa and SADC countries in east and west Africa. The
Fleet Management business increased its subscriber base, improved revenue
per subscriber and achieved good growth from the African expansion plan.
Vehicle Tracking and Recovery revenue and subscriber numbers has shown some
improvement, due to improved new vehicle sales volumes. The MiX- and Matrix
brands benefitted from strong marketing spend during the Soccer World Cup.
MiX Telematics International
MiX Telematics International (based in Stellenbosch) provides fleet
management products and services to Group subsidiary companies and to
certain global customers and is also the Group`s technology and development
centre. The half year saw the release of the MiX3000 - a combined tracking,
fleet management and recovery product for South Africa as well as the launch
of MiX DriveTime, for managing European driving hours compliance in real-
time. The period also saw a significant investment in additional development
resources as well as changes to our development methodologies in order to
facilitate faster time to market of compelling, high quality products.
MiX Telematics UK
MiX Telematics UK provides fleet management products and solutions to
customers across the United Kingdom, Europe and North Africa. These
solutions have provided major quantifiable running cost, safety and carbon
emission benefits to customers operating in an environment in which
legislative controls are becoming more stringent. The United Kingdom and
Europe are slowly emerging from an extended recession but the MiX Telematics
base is still expanding with some exciting new products launched into the
European market at the end of the period.
MiX Telematics SDI Middle East
MiX Telematics SDI provides driver safety, training and management solutions
to customers in the Middle East, Eastern Europe and Australasia. Since a
large percentage of revenue comes from the Oil and Gas sector, the easing
off of the global recession and gradual increase in the oil price has
resulted in numerous opportunities that were previously on hold, being
tabled again. As a result, sales of product and services is steadily
improving and the pipeline for additional business into existing and new
customers is very positive.
MiX Telematics North America
MiX Telematics North America provides driver safety, training and fleet
management solutions to customers throughout the Americas This year has
started significantly better than last for this business with repeat
business flowing from existing Oil and Gas customers. A new focus into South
America is also delivering value and Latin America in particular is becoming
a real contributor to the business. Revenues so far this year are already up
significantly over the comparative trading period. The mission still remains
to build an annuity base with real critical mass in this region and although
still a long way from achieving this, annuity revenues have more than
doubled since this time last year.
For and on behalf of the board:
SR Bruyns SB Joselowitz
Midrand
15 November 2010
Registered office:
Matrix Corner, Howick Close, Waterfall Park, Midrand
Directors:
SR Bruyns* (Chairman)
SB Joselowitz (CEO)
R Botha
TE Buzer
CWR Tasker
ML Pydigadu
H Scott
RA Frew*
R Friedman*
A Patel*
AR Welton*
HR Brody*
F Roji
*Non-executive
Company secretary:
Probity Business Services (Proprietary) Limited
Auditors:
PricewaterhouseCoopers Inc.
Sponsor:
Java Capital
For more information on our interim results, please visit our website at
www.mixtelematics.co.za/page/investor-results/
Date: 15/11/2010 08:00:08 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.
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
