| Wed 29 Jun 2011, 9:14 | | AER - Amalgamated Electronic Corporation Limited - Group condensed consolidated |
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AER
AER
AER - Amalgamated Electronic Corporation Limited - Group condensed consolidated
reviewed results for the year ended 31 March 2011 and dividend declaration
AMALGAMATED ELECTRONIC CORPORATION LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1997/010036/06)
Share code: AER ISIN: ZAE 000070587
("Amecor") or ("the Group")
GROUP CONDENSED CONSOLIDATED REVIEWED RESULTS FOR THE YEAR ENDED 31 MARCH 2011
AND DIVIDEND DECLARATION
GROUP CONDENSED STATEMENT OF COMPREHENSIVE INCOME
Year ended Year ended
31 March 2011 31 March 2010
(Reviewed) (Audited)
Notes R`000 R`000
Revenue 142 810 139 906
Turnover 140 732 138 136
Cost of sales (77 410) (69 696)
Gross profit 63 322 68 440
Operating cost excluding (27 574) (28 862)
depreciation and amortisation
EBITDA 35 748 39 578
Depreciation and amortisation (3 279) (2 397)
Operating profit 32 469 37 181
Finance income 1 435 1 396
Finance expenses (962) (1 431)
Profit before taxation 32 942 37 146
Taxation (9 598) (10 329)
Profit 23 344 26 817
Other comprehensive income - -
Total comprehensive income 23 344 26 817
Attributable to:
Ordinary shareholders of Amecor 21 360 23 266
Non-controlling interest 1 984 3 551
Profit and total comprehensive 23 344 26 817
income for the year
Earnings per share (cents) 3 28,3 30,8
Diluted earnings per share (cents) 3 28,3 30,8
GROUP CONDENSED STATEMENT OF FINANCIAL POSITION
31 March 2011 31 March 2010
(Reviewed) (Audited)
Notes R`000 R`000
ASSETS
Non-current assets 85 939 79 796
Property, plant and equipment 4 16 811 13 972
Intangible assets 14 756 11 521
Goodwill 54 034 54 034
Deferred tax asset 338 269
Current assets 87 636 88 540
Inventories 22 325 19 624
Trade and other receivables 27 450 39 072
Taxation 2 837 2 951
Cash and cash equivalents 35 024 26 893
Total assets 173 575 168 336
EQUITY AND LIABILITIES
Issued capital 72 560 72 610
Retained earnings 62 915 47 576
Equity attributable to Amecor 135 475 120 186
shareholders
Non-controlling interest 16 007 15 097
Total equity 151 482 135 283
Non-current liabilities 6 551 9 942
Interest bearing borrowings 3 143 7 114
Deferred tax liability 3 408 2 828
Current liabilities 15 542 23 111
Trade and other payables 12 895 18 060
Bank overdraft - 48
Short-term portion of interest 2 647 3 266
bearing borrowings
Taxation - 1 737
Total equity and liabilities 173 575 168 336
Net asset value per share (cents) 200,5 179,0
Net number of shares in issue 75 553 75 565
(000`s)
GROUP CONDENSED STATEMENT OF CASH FLOWS
Year ended Year ended
31 March 2011 31 March 2010
(Reviewed) (Audited)
R`000 R`000
Net inflow from operating activities 21 924 25 061
Cash generated from operations 39 256 40 984
Net finance (expense)/income 473 (35)
Taxation paid (10 710) (8 174)
Dividends paid (7 095) (7 714)
Net outflow from investing activities (9 105) (12 980)
Net outflow from financing activities (4 640) (1 947)
Net movement in cash balances 8 179 10 134
Cash and cash equivalents at beginning of 26 845 16 711
the year
Cash and cash equivalents at the end of 35 024 26 845
the period
GROUP CONDENSED STATEMENT OF CHANGES IN EQUITY
Issued capital Attributable
(share capital to ordinary Non-
and share shareholders of controlling Total
premium) Amecor interest equity
R`000 R`000 R`000 R`000
Balance at 1 71 904 30 550 13 020 115 474
April 2009
Issue of shares 986 - - 986
in respect of
share option
Dividends paid - (6 240) (1 474) (7 714)
Total - 23 266 3 551 26 817
comprehensive
income
Treasury share (280) - - (280)
purchase
Total changes 706 17 026 2 077 19 809
Balance at 1 72 610 47 576 15 097 135 283
April 2010
Dividends paid - (6 021) (1 074) (7 095)
Total - 21 360 1 984 23 344
comprehensive
income
Treasury share (50) - - (50)
purchase
Total changes (50) 15 339 910 16 199
Balance at 31 72 560 62 915 16 007 151 482
March 2011
MANAGEMENT COMMENTARY
General review
Amecor and its subsidiaries (collectively "the Amecor Group" or "the Group") is
a South African Group of companies specialising in the design, manufacture and
distribution of leading brands within the electronic security, alternative
energy, and power optimisation industries. Principal operations within the
Amecor Group include:
- FSK Electronics SA (Pty) Limited ("FSK") specialises in the manufacture of
electronic security devices which include remote monitoring and electronically
controlled security applications;
- Sabre Radio Networks (Pty) Limited ("Sabre") offers a network subscription
for data transmission and signaled response;
- Power Development Services (Pty) Limited ("PDS") supplies and installs power
generating equipment including generators and UPS equipment; and
- Amecor PowerStar (Pty) Limited has exclusive distribution rights with respect
to power optimisation units which enable cost savings and power conservation.
Financial review
Tough trading conditions were experienced throughout the period under review;
the Group achieved earnings per share of 28,3 cents (F2010: 30,8 cents). The
reduction in earnings is primarily attributable to profit margins being under
pressure to remain competitive in the alternative power markets, and bad debts
being provided for in the amount of almost R1,6 million (F2010: R0).
Turnover and profit before tax for the period under review was reported as:
- R140,7 million (F2010: R138,1 million); and
- R32,9 million (F2010: R37,1 million) respectively.
The analysis of turnover and total comprehensive income on a segmental basis is
detailed herein. Tighter margins in the alternative power supply markets have
contributed to reduced profits in the year under review.
Cash generated from operations contributed R39,3 million (F2010: R41,0 million)
to total cash and cash equivalents recorded at R35,0 million (F2010: R26,8
million) after capital and development expenditure of R9,4 million (F2010:
R13,0 million) was incurred in the period under review, being for the
following:
- New product development - R4,3 million; and
- Fixed assets acquired - R5,1 million.
The Group has budgeted a further R5 million for product development and
approximately R2 million for the installation of an additional surface mount
production line in FSK in the following financial year.
Both trade receivables and payables reduced in the year under review due to
tighter control of working capital. Borrowings also reduced as a result of
settling the bond over the Amecor House.
Net asset value per share increased by 12,0% to 200,5 cents (F2010: 179,0
cents) and tangible net asset value per share increased by 18,6% to 109,5 cents
(F2010: 92,3 cents).
1. Significant accounting policies
Amecor is a company domiciled in South Africa. These condensed consolidated
reviewed annual financial statements of the Amecor Group for the year ended 31
March 2011 comprise condensed consolidated reviewed annual financial statements
of Amecor and its subsidiaries.
These condensed consolidated reviewed annual financial statements were
authorised for issue by the board of directors on 24 June 2011.
1.1 Basis of preparation
These condensed consolidated reviewed results have been prepared in accordance
with the Framework concepts and the measurement and recognition requirements of
the International Financial Reporting Standards and containing information
required by the International Accounting Standards 34 - Interim Financial
Reporting, AC 500 standards, the Listings Requirements of the JSE Limited and
in the manner required by the Companies Act. These condensed consolidated
reviewed financial statements do not include all of the information required
for full financial statements and should be read in conjunction with the
consolidated annual financial statements for the year ended 31 March 2010. The
Group envisages posting the 2011 annual reports towards the end of August 2011.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period or in the period
of the revision and future periods if the revision affects both current and
future periods.
The accounting policies have been applied consistently by Group companies and
have been applied consistently to all periods presented in these condensed
consolidated reviewed financial statements.
2. Review of results
Mazars has signed an unqualified review opinion on these condensed consolidated
financial statements, as required by the JSE Limited. These financial
statements have been approved by the board and condensed for the purposes of
this report. The auditors review opinion is available for inspection at
Amecor`s registered office.
3. Earnings per share ("EPS")
EPS is based on the Group`s profit for the year ended 31 March 2011, divided by
the weighted average number of shares in issue during the year.
Weighted average
Profit attributable number of shares
to equity holders in issue (net of
of Amecor treasury shares Earnings
(Reviewed) of 2,4 million) per share
F2011 R`000 000`s Cents
Earnings 21 360 75 553 28,3
Diluted earnings 21 360 75 553 28,3
Headline earnings
reconciliation
Basic earnings 21 360
Less: profit on sale (248)
of property, plant
and equipment
Tax effect of 69
adjustment
Headline earnings 21 181 75 553 28,0
Diluted headline 21 181 75 553 28,0
earnings
F2010
Earnings 23 266 75 562 30,8
Diluted earnings 23 266 75 562 30,8
Headline earnings
reconciliation
Headline earnings 23 266 75 562 30,8
Diluted headline 23 266 75 562 30,8
earnings
4. Property, plant and equipment
At 31 Current At 31
R`000 March March
2010 depreciation Additions Disposals 2011
Land 1 999 - 500 - 2 499
Buildings 8 952 (434) 1 280 - 9 798
Plant and 972 (704) 1 595 (58) 1 805
equipment
Leasehold 12 (5) 13 - 20
improvements
Motor vehicles 1 012 (545) 695 (55) 1 107
Furniture and 335 (118) 407 - 624
fittings
Office equipment 330 (90) 300 - 540
Computer 360 (300) 358 - 418
equipment and
software
13 972 (2 196) 5 148 (113) 16 811
5. Segmental analysis
The Group`s operating segments and segmental information presented in the
condensed consolidated reviewed results for the year ended 31 March 2011
represents the Group`s management and internal reporting structure.
Intersegment transactions are concluded at arm`s length terms and conditions.
Year ended Year ended
31 March 2011 31 March 2010
(Reviewed) (Audited)
R`000 R`000
Segment turnover
Security and related production and sales 45 410 41 983
Network and annuity income 18 968 15 513
Supply and maintenance of alternative power 76 354 83 159
sources
Holding and management subsidiary companies 8 668 20 912
Consolidation adjustments (8 668) (23 431)
Total turnover 140 732 138 136
Comprehensive income
Security and related production and sales 10 930 9 305
Network and annuity income 10 457 8 418
Supply and maintenance of alternative power 3 718 7 128
sources
Holding and management subsidiary companies 5 145 3 039
Consolidation adjustments (6 906) (1 073)
Total comprehensive income 23 344 26 817
Comprehensive income attributable to non-
controlling shareholders
Supply and maintenance of alternative power 1 984 3 551
sources
Assets
Security and related production and sales 48 026 53 847
Network and annuity income 32 527 22 914
Supply and maintenance of alternative power 43 848 47 129
sources
Holding and management subsidiary companies 104 698 107 050
Consolidation adjustments (55 524) (62 604)
Total assets 173 575 168 336
Liabilities
Security and related production and sales (4 895) (18 947)
Network and annuity income (1 966) (352)
Supply and maintenance of alternative power (11 750) (16 680)
sources
Holding and management subsidiary companies (54 408) (55 666)
Consolidation adjustments 50 926 58 592
Total liabilities (22 093) (33 053)
6. Related party transactions
The Company and its subsidiaries do have dealings with each other but these are
eliminated on consolidation.
R`000 F2011 F2010
Purchases between subsidiary companies 11 348 13 750
Management fees 7 928 9 680
Operating lease rentals 874 619
Other related parties
Property rental agreements 200 838
7. Dividends
The Directors have elected to pay a single annual dividend in the amount of 8
cents (F2010: 8 cents) per ordinary share. Secondary Tax on Companies payable
will total approximately R624 000 (F2011: R624 000). Accordingly the Group`s
annual dividend, payable on Monday, 25 July 2011, for the year ended 31 March
2011, will be calculated as follows:
2011 2010
Distributable dividend (R000`s) 6 239 6 239
Total number of shares in issue (000`s) 77 986 77 986
Dividend payable per share (cents) 8 8
Last day to trade cum dividend Friday, 15 July 2011
Trading ex dividend commences Monday, 18 July 2011
Record date Friday, 22 July 2011
Payment date Monday, 25 July 2011
Share certificates may not be dematerialised or rematerialised between Monday,
18 July 2011 and Friday, 22 July 2011, both dates inclusive. The certificated
register will be closed for this period.
8. Directors
HS Courtney (Non-executive chairman)
DH Alexander (Chief executive officer)
KA Colley (Financial director and company secretary)
M Noge (Independent non-executive director)
KA Vieira (Operational director)
CH Boulle (Non-executive director)+
All of the above directors are South African and are resident in South Africa.
+ Appointed 1 June 2011
On behalf of the board
HS Courtney DH Alexander
Chairman* Chief Executive Officer
Sandton
24 June 2011
Auditors
Mazars
2nd Floor Mazars House, 5 St Davids` Place, Parktown, 2193
(PO Box 6697, Johannesburg, 2000)
Transfer Secretaries
Link Market Services (Proprietary) Limited
11 Diagonal Street, Johannesburg, 2001
(PO Box 4844, Johannesburg, 2000)
Registered Office
Resource House
7 Spring Street, Rivonia, 2196
(PO Box 1962, Rivonia, 2128)
Sponsor
Sasfin Capital Limited
(A division of Sasfin Limited)
29 Scott Street, Waverly, 2090
(PO Box 95104, Grant Park, 2051)
Visit us at www.amecor.com
INNOVATION THROUGH TECHNOLOGY
Date: 29/06/2011 09:14:23 Produced by the JSE SENS Department.
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