| Fri 14 Oct 2011, 9:40 | | ISA - ISA Holdings Limited - Unaudited results for the six months ended 31 |
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ISA
ISA
ISA - ISA Holdings Limited - Unaudited results for the six months ended 31
August 2011
ISA Holdings Limited
("ISA")
(Registration number: 1998/009608/06)
JSE share code: ISA
ISIN code: ZAE000067344
UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2011
31-Aug-11 31-Aug-10 28-Feb-11
6 months 6 months Year
ended ended ended
Unaudited Unaudited Audited
R`000s R`000s R`000s
CONDENSED CONSOLIDATED STATEMENTS
OF COMRPEHENSIVE INCOME
Revenue 36,392 32,463 62,064
Turnover 35,660 31,349 59,223
Cost of sales (20,238) (15,165) (28,656)
Profit before other income and
Expenses 15,422 16,184 30,567
Other income 6 2 537
Revaluation profit on equity
investments - 58 493
Foreign exchange profit/(loss) 10 (575) (1,255)
Operating expenses (6,676) (6,343) (11,583)
Finance income 695 1,056 1,751
Finance costs (87) (138) (267)
Profit before taxation 9,370 10,244 20,303
Taxation (3,471) (3,938) (6,656)
Profit for the year 5,899 6,306 13,647
Total comprehensive income attributable
to equity shareholders 5,899 6,306 13,647
CONDENSED CONSOLIDATED STATEMENTS
OF FINANCIAL POSITION
ASSETS
Non-current assets 5,508 5,842 5,765
- Property, plant and equipment 508 399 577
- Intangible assets 4,560 4,906 4,960
- Deferred tax 440 537 228
Current assets 48,643 50,011 48,862
- Cash and cash equivalents 32,059 29,705 41,243
- Equity investments - 4,623 -
- Inventories - 3,793 -
- Current tax receivable 41 - 210
- Trade and other receivables 16,543 11,890 7,409
Total assets 54,151 55,853 54,627
EQUITY AND LIABILITIES
Equity capital and reserves 40,059 38,923 43,464
- Share capital and share premium 13,442 14,607 11,494
- Reserves 26,617 24,316 31,970
LIABILITIES
Long term liabilities - 3,682 -
- Interest bearing liabilities - 3,682 -
Current liabilities 14,092 13,248 11,163
- Interest bearing liabilities - - 3,810
- Trade and other payables 13,333 9,430 6,974
- Current tax payable 375 3,241 -
- Provisions 384 577 379
Total equity and liabilities 54,151 55,853 54,627
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOW
Cash flows from operating activities 3,415 1,340 10,651
Cash flows from investing activities 635 727 6,436
Cash flows from financing activities (13,244) (14,494) (17,296)
Net decrease in cash
and cash equivalents (9,194) (12,427) (209)
Revaluation of foreign cash
balances 10 (575) (1,255)
Cash and cash equivalents at
beginning of the period 41,243 42,707 42,707
Cash and cash equivalents at end
of the period 32,059 29,705 41,243
CONDENSED CONSOLIDATED STATEMENTS
OF CHANGES IN EQUITY
Share capital and reserves
Balance at beginning of the period 43,464 47,112 47,112
Attributable profit for the period 5,899 6,306 13,647
Purchase of treasury shares - - (2,875)
Movement of share premium
during the period 1,988 (3,200) (3,200)
Dividends paid during the period (11,292) (11,295) (11,220)
Total equity capital and reserves 40,059 38,923 43,464
RECONCILIATION OF HEADLINE EARNINGS
Earnings as per statement of
comprehensive income 5,899 6,306 13,647
Profit on sale of property,
plant and equipment 6 - -
Tax effect on above (3) - -
Headline earnings 5,902 6,306 13,647
ORDINARY SHARES
Earnings per share (cents) 3.2 3.4 7.2
Diluted earnings per share (cents) 3.2 3.4 7.2
Headline earnings per share (cents) 3.2 3.4 7.2
Diluted headline earnings per share
(cents) 3.2 3.4 7.2
Number of shares in issue at end
of period (`000s) 183,600 188,233 183,600
Weighted average number of shares
in issue (`000s) 183,600 188,233 188,918
Treasury shares held at end of
period (`000s) 8,517 4,360 8,517
Net asset value per share at end
of period (cents) 21.8 20.7 23.7
Net tangible asset value per share
at end of period (cents) 19.3 18.1 21.0
OPERATIONAL REVIEW
We are pleased to present our results for the 6 month reporting cycle ending
31 August 2011. Despite the continued strengthening of the Rand, as well as
the slower than expected economic recovery, overall performance remains
satisfactory.
Most pleasing was the increase in turnover of 14% through the cycle. The
composition of revenue was less encouraging however, as the proportion of
lower margin product sales was higher than the last few reporting cycles.
This shift in turnover composition, together with a slight contraction in
service revenue, resulted in a disappointing 43% gross profit margin for the
period under review.
A healthy cash reserve of R32 million continues to underpin our strong
statement of financial position, this after the R14.4 million cash reduction
resulting from the distribution to shareholders during the period. A third
of this reserve is held in major foreign currencies, mostly US Dollars.
The uncharacteristically high trade receivables balance of R16.5 million
relates predominantly to a few large projects for reputable corporate
clients. By its very nature, larger projects extend over longer periods,
which necessitate the short term servicing of the projects with capital
reserves.
During the period under review, the final leg of our BEE transaction with
EmpowerGroup was successfully concluded and the balance of their interest
bearing loan was credited to the company`s share premium account.
DISTRIBUTION
During the period under review, distributions totaling 7.2 cents per share
were declared and paid to all shareholders. The mandatory STC charge of R1.2
million contributed substantially to the overall taxation expense during
this period. The Board has not declared an interim dividend.
PROSPECTS
We are of the view that the economic recovery is underway, although it is
likely to play itself out over a longer timeframe than was initially
anticipated.
The strength of our underlying business, together with its healthy capital
structures and market positioning, bodes well for ISA and management remain
confident that they have the tools at their disposal to outperform their
peers in the years to come.
BASIS OF PREPARATION
These interim results to 31 August 2011 have been prepared in accordance
with International Financial Reporting Standards (IFRS), in a manner
consistent with the prior year and in accordance with Interim Financial
Reporting (IAS34). These results have not been reviewed or audited by the
Groups auditors.
SPECIAL THANKS
We take the opportunity to thank our customers and suppliers for their
loyalty and continued support. A special note of appreciation is also
extended to our management team and staff for their unquestionable
commitment to this business and the achievement of its long term objectives.
For and on behalf of the board.
Clifford Katz
Chief Executive Officer
14 October 2011
Designated advisor: Exchange Sponsors
www.isaholdings.co.za
Date: 14/10/2011 09:40:11 Produced by the JSE SENS Department.
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