| Tue 20 Feb 2001, 0:00 | | Spicer - Interim Results |
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Spicer holdings limited
Incorporated in the Republic of South Africa
Registration number 1984/005392/06
Interim results for the six months ended 31 December 2000
SUMMARISED GROUP INCOME STATEMENT
Unaudited Unaudited Audited
Six months Six months Twelve months
31 Dec 2000 31 Dec 1999 30 Jun 2000
R000 R000 R000
Revenue 43 432 94 013 160 264
Continued operations 43 432 24 468 56 247
Discontinued operations - 69 545 104 017
Operating profit/(loss) 2 528 4 743 (12 620)
Continued operations 2 528 (4 067) (17 583)
Discontinued operations 8 810 4 963
Depreciation (1 042) (2 946) (4 379)
Finance income/(costs) (15) (713) (4 258)
Amortisation of goodwill (964) - (12 168)
Exceptional items (369) (12 181) 28 935
Income/(loss) before taxation 138 (11 097) (4 490)
Taxation (718) (1 850) (2 411)
Loss after taxation (580) (12 947) (6 901)
Attributable to outside
shareholders (114) 2 228 6 579
Loss for the period (694) (10 719) (322)
Headline earnings/(loss)
per share (cents) 0,1 0,4 (4,2)
Headline earnings/(loss)
per share on continued
operations (cents) 0,1 (1,0) (2,3)
Fully diluted headline
earnings/(loss)
per share (cents) 0,1 0,4 (4,0)
Attributable
earnings per share (cents) (0,2) (2,7) (0,1)
Number of shares (000)
- in issue 409 519 403 025 404 611
- weighted average 409 519 403 025 404 611
- fully diluted 426 419 403 025 421 511
Reconciliation of
headline earnings
Loss for the period (694) (10 719) (322)
Amortisation of goodwill 964 - 12 168
Exceptional items 11 12 181 (28 935)
Headline earnings 281 1 462 (17 089)
Continued operations 281 (3 980) (9 168)
Discontinued operations - 5 442 (7 921)
Exceptional items
Profit on sale of subsidiary
and investments 500 - 55 410
Establishment and
restructuring costs (869) (12 181) (26 475)
Before taxation (369) (12 181) 28 935
Taxation effect 358 - -
After taxation (11) (12 181) 28 935
These results are based on the same accounting policies as applied in the
previous year ended 30 June 2000.
SUMMARISED GROUP BALANCE SHEET
Unaudited Unaudited Audited
Six months Six months Twelve months
31 Dec 2000 31 Dec 1999 30Jun 2000
R000 R000 R000
ASSETS
Non-current assets 25 496 64 858 25 995
Fixed assets 4 151 14 474 4 621
Goodwill 18 309 44 757 19 374
Investments and loans 2 400 5 627 2 000
Deferred tax asset 636 - -
Current assets 51 990 61 849 113 790
Inventory 1 736 12 266 -
Accounts receivable 22 674 39 991 87 741
Bank and cash balances 27 580 9 592 26 049
Total assets 77 486 126 707 139 785
EQUITY AND LIABILITIES
Capital and reserves 26 996 14 103 25 047
Outside shareholders' interest 509 7 419 -
Non-current liabilities 1 188 8 411 1 155
Deferred taxation 1 188 835 1 155
Due to vendors of businesses - 7 576 -
Current liabilities 48 793 96 774 113 583
Interest-bearing 21 435 34 029 65 631
Due to vendors of business - - 6 190
Other 27 358 62 745 41 762
Total equities and liabilities 77 486 126 707 139 785
Net asset value per
ordinary share (cents) 6,5 3,5 6,2
STATEMENT OF CHANGES IN EQUITY
Unaudited Unaudited
31 Dec 2000 31 Dec 1999
Six months Six months
R000 R000
Balance at beginning of period 25 047 16 766
Share capital and share premium 2 643 8 056
Issue of share capital and share premium 2 643 43 458
Goodwill arising on the acquisition
of subsidiaries - (35 402)
Movements in distributable reserves (694) (10 719)
Balance at end of period 26 996 14 103
SUMMARISED CASH FLOW STATEMENT
Cash outflow from operating activities (12 490) (2 605)
Cash utilised in operations (12 295) (1 791)
Net financing costs (15) (713)
Taxation paid (180) (101)
Cash inflow from investing activities 66 013 (87 478)
Acquisition of subsidiaries (3 415) (70 023)
Expenditure for expansion - (12 181)
Proceeds on disposal of investments 70 000 -
Additions to fixed assets (572) (5 274)
Cash outflow from financing activities (36 067) 43 458
Increase/(decrease) in cash resources 17 456 (46 625)
COMMENTS
1 Results
Spicer Holding's results for the six months ended 31 December 2000 represent
the trading activities of its subsidiaries, MIS-Corporate Defence Solutions
Limited (based in the United Kingdom) and Inter IT-Konsult AB (based in
Sweden). 100% of group revenue was earned from offshore operations during this
reporting period.
Revenue of continued operations for the six months increased from R24,5 million
to R43,4 million (+77%), and operating profit from -R4,1 million to R2,5
million. 56% of revenue was produced by Inter and 44% by MIS. Net cash
resources at the end of 31 December was R6,1 million.
2 Review of operations
After a very difficult financial year 2000, the improved results of the past
six months are an indication that Spicer is returning to stability, and
management is creating a foundation for the future unlocking of shareholder
value.
The situation at MIS-Corporate Defence Solutions has improved materially during
the reporting period, to the extent that the company has been profitable on a
month-to-month basis towards the end of this period. Management is confident
that the problems experienced previously have been rectified, and that the
improved performance will be sustained during the second half of the year.
Considering the market's intense focus on information security in the last
year, all indications are that MIS-Corporate Defence Solutions will continue to
grow at a rapid rate. The company has established itself as a recognised player
in this arena, and has unquestionably become one of the companies to watch in
the UK market. In line with the previous year, Inter continued to perform very
well. In accordance with future plans for Inter, the company grew its employee
base from 41 at the end of June to 58 at the end of December. Inter continues
to enjoy strong demand for its supplier-independent consulting services, and
the company is well positioned to capitalise on new opportunities in the
digital economy and convergence space.
3 The future
As previously communicated to shareholders, the Board of Directors believes the
underlying value of Spicer's assets is materially greater than the current
share price reflects. While management continues to focus on the operational
aspect of Spicer's investments, the Board will continue to investigate
opportunities to increase shareholder value.
4 Dividends
No dividends have been declared for the period under review.
On behalf of the Board
Sas du Toit
Executive Chairman
20 February 2001
Registered office
2nd Floor West Court
Sandown Village
cnr Maude Street and Gwen Lane
Sandown
Directors
Sas du Toit Danie de Villiers Coert Vorster*
Bobby Makwetla* *Non-executive
Tel (011) 884 0727
Fax (011) 884 0650
E-mail info@spicer.co.za
Website www.spicer.co.za
