| Wed 28 Feb 2001, 0:00 | | Compu-clearing Outsourcing Ltd - Reviewed Interim |
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Compu-Clearing Outsourcing Limited
(Registration number 1998/015541/06)
REVIEWED INTERIM RESULTS
FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2000
STRATEGIC PLANS WELL ON TRACK POISED FOR GROWTH
TURNOVER UP 14%
EARNINGS PER SHARE UP6%
CONSOLIDATED BALANCE SHEET
As at As at As at
31 Dec 31 Dec 30 June
2000 1999 2000
R'000 R'000 R'000
(Reviewed) (Reviewed) (Audited)
ASSETS
Tangible assets 16 091 12 343 13 380
Financial assets 200 296 292
Current assets 12 261 16 959 18 522
Liquid funds 6 124 12 137 12 780
Other current assets 6 137 4 822 5 742
Total assets 28 552 29 598 32 194
EQUITY AND LIABILITIES
Shareholders' funds 26 561 26 489 28 823
Long-term liabilities 203
Deferred taxation 215 1 211 63
Current liabilities 1 776 1 695 3 308
Total equity and liabilities 28 552 29 598 32 194
Net asset value per share (cents) 61,44 55,32 62,22
CONSOLIDATED CASH FLOW STATEMENT
Six months Six months
ended ended
31 Dec 31 Dec 30 June
2000 1999 2000
(Reviewed) (Reviewed) (Audited)
Operating income before interest
and taxation 3 039 2 857 6 358
Non-cash items 1 761 1 513 3 050
Cash generated from trading operations 4 800 4 370 9 408
Increase in working capital (783) (1 480) (1 950)
Cash generated from operations 4 017 2 890 7 458
Taxation paid (2 114) (1 922) (1 982)
Dividends paid (991) (539) (479)
Net interest income 535 766 1 435
Cash flows from operating activities 1 447 1 195 6 432
Cash flows from investing activities (4 472) (2 965) (5 539)
Cash flows from financing activities (3 631) (143) (2 163)
Increase/(Decrease) in cash and
cash equivalents (6 656) (1 913) (1 270)
Cash at beginning of period 12 780 14 050 14 050
Cash at end of period 6 124 12 137 12 780
CONSOLIDATED INCOME STATEMENT
Six months Six months
ended ended Year ended
31 Dec 31 Dec 30 June
2000 1999 2000
(Reviewed) (Reviewed) Increase/ (Audited)
R'000 R'000 (Decrease) R'000
TURNOVER 13 792 12 073 14% 24 986
Operating income before interest 3 039 2 857 6% 6 358
Net interest received 535 766 1 435
Profit before taxation 3 574 3 623 (1%) 7 793
Taxation 1 134 1 147 2 399
Attributable earnings 2 440 2 476 (1%) 5 394
Actual number of shares
in issue ('000) 43 229 47 885 46 321
Weighted average number
of shares in issue ('000) 44 559 47 885 47 735
Diluted weighted average
number of shares in issue ('000) 47 419 51 105 47 870
Earnings per share (cents) 5,5 5,2 6% 11,3
Diluted earnings per share (cents) 5,3 5,1 4% 11,2
Depreciation for the period (R'000) 1 774 1 525 3 053
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share
capital and Distributable
premium reserves Total
R'000 R'000 R'000
Balance at 30 June 1999 20 753 3 739 24 492
Trademarks and goodwill set-off 5 174 - 5 174
25 927 3 739 29 666
Write-off of trademark net of
taxation and goodwill (3 925) - (3 925)
Share issue expenses charged against
share premium (7) - (7)
Repurchase of shares (1 826) - (1 826)
Profit after taxation - 5 394 5 394
Dividend - (479) (479)
Balance at 30 June 2000 20 169 8 654 28 823
Repurchase of shares (3 711) - (3 711)
Profit after taxation - 2 440 2 440
Dividends declared - (991) (991)
Balance at 31 December 2000 16 458 10 103 26 561
COMMENTS
The results of COMPU-CLEARING for the six months ended 31 December 2000 show
satisfactory performance and the strategic decisions taken are yielding
positive returns. During the period under review turnover increased by 14% from
R12,073 million to R13,792 million. Earnings per share increased by 6% to 5,5
cents per share.
Compu-Clearing remains firmly focused as the leading supplier of system
solutions to the freight and forwarding industry.
During this period considerable sums were expended in training and further
strengthening the employee base of the group. Particular emphasis was placed on
service levels and achieving the correct mix for future anticipated growth. It
is COMPU-CLEARING's philosophy to invest in personnel with a commitment to
long-term growth. This had the effect of increasing costs and lowering
operating margins in the short term, thus affecting the growth in earnings per
share.
Our client base has remained fiercely loyal and new major customers have joined
us. The company remains focused on providing the highest standards of service
to its customers, to remain at the forefront of systems for the logistics
industry and to be pro-active to changes in the environment in which it
operates.
Of significant note has been the establishment of a joint venture for the use
of our systems in Singapore, with Semb-Corp Technologies, an industrial
conglomerate listed on the Singapore Stock Exchange. Our first installation has
been successfully completed and is being fine-tuned to the business environment
in the Asia/Pacific region. This venture does not involve any significant
capital amounts and will be cash flow positive by the end of this financial
year.
Our policy of share buy backs continues and this has had a marked effect on our
investment income. Benefits of this will be felt in the future in increased
earnings per share.
Our profits are converted into cash in the short term. During this period cash
resources were in the main utilised for the payment of taxation, the purchase
of income producing assets and share buy backs.
PROSPECTS
The company continues to operate in an environment of secure annuity income
with a loyal and ever increasing client base. The effect of the large
investment in personnel will benefit the future with increased earnings being
achieved.
We are optimistic as to the increased earnings that should be achieved from our
Singapore operations although this might not be significant in the next six
months.
We expect an improved performance in the second half of the financial year.
DIVIDENDS
COMPU-CLEARING has a policy of not paying interim dividends.
REVIEW OF RESULTS
These results have been reviewed by our auditors, KPMG Inc and a copy of their
review letter is available for inspecton at the company's offices.
A. Garber J. du Preez
(Chairman and Chief Executive) (Managing Director)
Johannesburg
28 February 2001
Directors: A. Garber, J. du Preez, A. Katz*, M. Lutrin, Dr. T.M. Mogale*
D. Rosevear*, M. Steele*, M. Acosta-Alacon, A. Robbertse
*(Non executive)
Transfer secretaries: Registered office:
Mercantile Registrars Limited 7 Drome Road
10th Floor Lyndhurst, 2106
11 Diagonal Street PO Box 89856
Johannesburg 2001 Lyndhurst, 2106
Compu-Clearing Outsourcing Limited
South Africa's Leading Specialist For The Freight Industry
(Registration number 1998/015541/06)
