| Thu 8 Feb 2001, 0:00 | | Seartec Limited - Interim Results |
|
SEARTEC LIMITED
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2000
CONSOLIDATED ABRIDGED INCOME STATEMENT
Unaudited Unaudited
6 months to % Change Year to
R'000 31-Dec-00 31-Dec-00 on 1999 30-Jun-00
Revenue R122 902 R132 091 -7% R251 565
Profit from operations 9 576 5 906 +62% 4 793
Net interest paid 2 796 3 751 7 591
Income before taxation 6 780 2 155 +215% ( 2 798)
Taxation 928 - (2 828)
Income after taxation 5 852 2 155 +172% 30
Loss attributable to outside
shareholders of subsidiary
company - 116 463
Attributable income R5 852 R2 271 +158% R466
Headline earnings per share
(cents) 8.2c 3.4c +144% 0.6c
Basic earnings per share
(cents) 8.7c 3.4c +158% 0.7c
Number of shares in issue
and weighted average (000) 66 911 66 911 66 911
Effective tax rate 14% - 101%
CONSOLIDATED ABRIDGED BALANCE SHEET
Unaudited Audited
R'000 31-Dec-00 31-Dec-99 30-Jun-00
EMPLOYMENT CAPITAL
Fixed assets 6 346 6 197 5 358
Unlisted investments 12 232 12 000 12 000
Deferred tax 2 083 195 3 092
Long-term debtors 6 984 - -
Current assets 137 162 136 828 123 561
Net cash resources 113 1 784 480
R164 920 R157 004 R144 491
CAPITAL EMPLOYED
Shareholders' interest 93 866 85 813 84 761
Outside shareholders' interest - 883 597
Group equity 93 866 86 696 85 358
Long-term liabilities
- interest bearing 7 692 14 199 10 481
Current liabilities - interest
free 21 838 26 244 23 220
Current liabilities - interest
bearing 41 524 29 865 25 432
R164 920 R157 004 R144 491
Net asset value per ordinary 140c 128c 127c
share (cents)
COMMENTS ON RESULTS
Revenue for the six months under review amounted to R122,9 million, a decline
of 7% on the corresponding period last year. Included in this turnover is an
amount of R8,2 million as a result of a change in accounting policy brought
about by the implementation, from 1 July 2000, of Accounting Statement AC105
governing the accounting treatment of financial leases. This amount had
previously been taken to revenue over the life of the rental contracts to which
they were related, usually a 60 month period. There was no commensurate
cash-flow improvement with this change in the accounting treatment
Net income before tax amounted to R6,8 million, an improvement of 215% on the
corresponding period last year. Headline earnings per share for the period
amounted to 8,2 cents (1999: 3,4 cents), an increase of 144%.
Last year's comparatives included the consolidated results of the then 51%
owned Compatible Information Technology Systems (Pty) Ltd. (CIS). Subsequently
a 32% stake in CIS was disposed of and therefor their results are no longer
consolidated. The 19% remaining investment has been equity accounted.
The implementation of AC105, mentioned above, had the additional effect of
increasing profit by R1,7 million. This amount would previously have been
prudently phased in over the life of the rentals to which they related.
The Sharp office automation division performed well under difficult
circumstances and managed to increase margins slightly while reducing
expenditure. The Sharp consumer products division experienced reduced sales,
in line with our strategic focus of concentrating on a smaller range and
returned a much improved performance. The Scrip to division of consumer
products performed disappointingly in a difficult market with lower sales and
slightly improved margins.
FUTURE PROSPECTS
The strategic focus of the business will continue to develop around the Sharp
office automation division and stationery products.
The restructure of the Sharp consumer products division is now complete. Its
contribution to profits has improved and with careful product selection, will
continue to do so. We are encouraged by the apparent success of SARS in their
efforts to reduce the evasion of Customs and Excise duties as well as VAT by
certain importers of consumer electronic products.
The range of Sharp digital copiers has been well received by the market and the
improved margins reflect a slightly better level of business confidence. It is
hoped that the Rand will display some stability during the next six months
after declining dramatically in the last four months.
It is expected that working capital requirements will diminish by the year end.
DISTRIBUTION ANNOUNCEMENT
In keeping with past practice, a single distribution will be considered at the
end of the financial year.
Dr A Searll Dr G C de Bruin
Chairman Chief Executive
8 February 2001
Seartec Limited Reg. No. 1987/004962/06
Secretary: A D Jacobson
Directors: A Searll, G C De Bruin, C L'E Angus, T J S Atkinson, A Charalambous
Registered address: Seardel House, Alphen Park, Main Road, Constantia
