| Wed 9 Nov 2011, 16:06 | | AER - Amalgamated Electronic Corporation Limited - Unaudited results for |
|
AER
AER
AER - Amalgamated Electronic Corporation Limited - Unaudited results for
the six months ended 30 September 2011
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 company")
UNAUDITED RESULTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2011
GROUP CONDENSED STATEMENT OF COMPREHENSIVE INCOME
Unaudited Audited Unaudited
Six months Twelve months Six months
ended ended ended
30 September 31 March 30 September
2011 2011 2010
R`000 R`000 R`000
Revenue 84 081 142 810 71 093
Turnover 83 137 140 732 69 972
Cost of sales (44 623) (77 410) (36 121)
Gross profit 38 514 63 322 33 851
Operating cost excluding (16 868) (27 574) (13 159)
depreciation and
amortisation
EBITDA 21 646 35 748 20 692
Depreciation and (1 775) (3 279) (1 177)
amortisation
Operating profit before 19 871 32 469 19 515
interest and taxation
Finance income 747 1 435 718
Finance expenses (213) (962) (525)
Profit before taxation 20 405 32 942 19 708
Taxation (5 998) (9 598) (5 275)
Profit for the period 14 407 23 344 14 433
Other comprehensive income - - -
Total comprehensive income 14 407 23 344 14 433
for the year
Profit and total
comprehensive income
attributable to:
Ordinary shareholders of 12 264 21 360 12 106
Amecor
Non-controlling interest 2 143 1 984 2 327
Total comprehensive income 14 407 23 344 14 433
for the year
Earnings per share (cents) 16,3 28,3 16,0
Diluted earnings per share 16,3 28,3 16,0
(cents)
GROUP CONDENSED STATEMENT OF FINANCIAL POSITION
Unaudited Audited
30 September 31 March
2011 2011
R`000 R`000
ASSETS
Non-current assets 87 872 85 939
Property, plant and equipment 16 715 16 811
Intangible assets 16 669 14 756
Goodwill 54 034 54 034
Deferred tax asset 454 338
Current assets 95 008 87 636
Inventories 22 230 22 325
Receivables and other current assets 36 539 27 450
Taxation 3 964 2 837
Cash and cash equivalents 32 275 35 024
Total assets 182 880 173 575
EQUITY AND LIABILITIES
Share capital 71 943 72 560
Retained earnings 69 212 62 915
Non-controlling interest 17 762 16 007
Total equity and reserves 158 917 151 482
Non-current liabilities 6 865 6 551
Borrowings 3 412 3 143
Deferred tax liabilities 3 453 3 408
Current liabilities 17 098 15 542
Trade and other payables 14 359 12 895
Taxation 867 -
Short-term portion of borrowings 1 872 2 647
Total equity and liabilities 182 880 173 575
GROUP CONDENSED STATEMENT OF CASH FLOWS
Unaudited Audited Unaudited
Six months Twelve months Six months
ended ended ended
30 September 31 March 30 September
2011 2011 2010
R`000 R`000 R`000
Cash generated by operations 14 017 39 256 12 792
Net finance (expense)/income 535 473 193
Taxation paid (6 230) (10 710) (5 517)
Dividends paid (6 355) (7 095) (7 089)
Net inflow from operating 1 967 21 924 379
activities
Net outflow from investing (3 593) (9 105) (5 496)
activities
Net outflow from financing (1 123) (4 640) (1 702)
activities
Net movement in cash (2 749) 8 179 (6 819)
balances
Cash and cash equivalents at 35 024 26 845 26 845
beginning of the year
Cash and cash equivalents at 32 275 35 024 20 026
the end of the period
GROUP CONDENSED STATEMENT OF CHANGES IN EQUITY
Non-
Share Retained controlling Total
capital earnings interest equity
R`000 R`000 R`000 R`000
Balance at 1 April 2010 72 610 47 576 15 097 135 283
Dividends paid - (6 021) (1 074) (7 095)
Total comprehensive income - 21 360 1 984 23 344
Treasury share purchase (50) - - (50)
Total changes (50) 15 339 910 16 199
Balance at 1 April 2011 72 560 62 915 16 007 151 482
Dividends paid - (5 967) (388) (6 355)
Total comprehensive income - 12 264 2 143 14 407
Treasury share purchase (617) - - (617)
Total changes (617) 6 297 1 755 7 435
Balance at 30 September 2011 71 943 69 212 17 762 158 917
MANAGEMENT COMMENTARY
Amecor and its subsidiaries (collectively "the Group") specialise in:
- the design, development and manufacturing of RF ("radio frequency") and
GSM ("global system for mobile communication") electronic security
systems;
- network data communication; and
- power generating.
The core focus of the Group is to identify and meet the evolving
international demand for radio andGSM communication equipment, electronic
security-based products as well as power-generating and voltage
optimising equipment for both local and international markets. Amecor is
devoted to keeping abreast of the latest technological advances and
proudly upholding its philosophy of Innovation through Technology.
In keeping with our strategy to further grow the Group, Amecor acquired
the business of Secequip Supplies (Proprietary) Limited ("Secequip")
through its subsidiary, Greater Gauteng Alarm Networks (Proprietary)
Limited, effective 1 October 2011.
Amecor also invests in ongoing research and development into new product
offerings, existing upgrades and product procurement. Secequip is an
importer and distributor of electronic security equipment which includes
highly sophisticated cameras, the well-known Texecom range of products as
well as offering related services and solutions to the security and
broader electronics industry. The range of Secequip products is
complementary to (and not in competition with) the Amecor product range.
Secequip has an established network of 13 branches nationally together
with a central warehouse and a countrywide sales and marketing team. The
addition of Secequip will assist in providing the existing Amecor Group
with a national footprint to distribute products and services throughout
South Africa.
Financial review
Amecor`s headline earnings achieved for the six months ended 30 September
2011 was 16,3 cents per share (F2011: 16,0 cents). Turnover and profit
before tax for the period under review was reported as:
- R83,1 million (F2011: R70,0 million); and
- R20,4 million (F2011: R19,7 million) respectively.
Increase in turnover and gross profit was primarily attributable to the
increase in network fees through Sabre Radio Networks (Pty) Limited and
turnover generated through Amecor Power Services.
The increase in operational expenditure to R16,9 million (F2011: R13,2
million) may be attributed to the relocation of alternative power-based
subsidiary, Gillespie Diesel Services, into bigger premises which
resulted in higher rentals. Increased electricity costs and a greater
staff complement have also impacted on the entire Group.
Finance expenses reduced as a result of the bond over the property being
settled and general borrowings reducing within the Group.
Depreciation and amortisation increased 51% from R1,2 million in F2011 to
R1,8 million in the current period pursuant to the investment in
additional property, plant and equipment acquired in the F2011 year.
Intangible assets increased as a result of further product development
and the implementation of a new interactive website for the Group.
A rise to R36,5 million in receivables (F2011: R27,4 million) is
proportionate to the increase in turnover which is recoverable within the
30 days of the reporting period.
The analysis of turnover and total comprehensive income on a segmental
basis is detailed herein.
A reduction in contributing profits in the PDS group impacted negatively
on the dividends distributed to the non-controlling shareholders.
Cash generated by operations was R14,0 million (F2011: R12,8 million) and
total cash and cash equivalents retained in the sum of R32,3 million
(F2011: R20,0 million).
Cash flows from investing activities was less than the prior period due
to replacement of PDS group vehicle fleet in F2011, whilst R617 000
contributed to an outflow in financing activities to acquire treasury
shares in financing activities (F2011: R50 000).
Net asset value per share increased to 211,3 cents (F2011: 188,8 cents)
and tangible net asset value per share to 117,3 cents (F2011: 98,8
cents).
Product development
The Group continues to invest in research and development resulting in
further high-quality products being launched into local and international
markets.
Capital commitment
The Group has committed to ongoing product development costs in the next
financial year.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Significant accounting policies
Amecor is a company domiciled in South Africa. These condensed
consolidated financial statements of Amecor for the six months ended 30
September 2011 comprise the company and its subsidiaries.
These condensed consolidated interim results were authorised for issue by
the board of directors on 7 November 2011. The unaudited condensed
consolidated financial statements for the six months ended 30 September
2011 have been prepared by the Financial Director, Mrs K Colley, and have
not been reviewed or audited by the company`s auditors, Mazars.
Basis of preparation
These condensed consolidated results have been prepared in accordance
with the framework concepts and the measurement and recognition
requirements of the International Financial Reporting Standards ("IFRS")
and containing information required by the International Accounting
Standards 34 - Interim Financial Reporting ("IAS 34"), AC 500 standards,
the Listings Requirements of the JSE Limited and in the manner required
by the Companies Act. These condensed consolidated 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 2011. The estimates and
underlying assumptions are revised 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 and methods of computation have been applied
consistently by Group companies and have been applied consistently to all
periods presented in these condensed consolidated financial statements.
The comparative figures referred to in the commentary relate to the prior
year equivalent interim period.
2. Earnings per share ("EPS")
Unaudited Audited Unaudited
Six months Twelve months Six months
ended ended ended
30 September 31 March 30 September
2011 2011 2010
Earnings:
Profit attributable to equity 12 264 21 360 12 106
holders of Amecor (R`000)
Shares in issue
Weighted average number of 75 205 75 553 75 565
ordinary shares in issue
(000`s)
Earnings and diluted earnings 16,3 28,3 16,0
per share (cents)
Headline earnings per share
Profit attributable to equity 12 264 21 360 12 106
holders of Amecor (R`000)
Less: profit on sale of - (248) -
property, plant and equipment
Tax effect of adjustment - 69 -
Headline earnings (R`000) 12 264 21 181 12 106
Weighted average number of 75 205 75 553 75 565
ordinary shares in issue
(000`s)
Headline and diluted headline 16,3 28,0 16,0
earnings per share (cents)
3. Net asset value ("NAV") per share
Unaudited Audited Unaudited
30 September 31 March 30 September
2011 2011 2010
Ordinary share capital and 158 917 151 482 142 627
reserves (R`000)
Total number of shares in 75 205 75 553 75 565
issue (000`s) (net of
treasury shares of 2,8
million F2011: 2,4 million)
NAV per share (cents) 211,3 200,5 188,8
Ordinary share capital and 158 917 151 482 142 627
reserves (R`000)
Goodwill (54 034) (54 034) (54 034)
Intangible assets (16 669) (14 756) (13 971)
Tangible NAV 88 214 82 692 74 622
Total number of shares in 75 205 75 553 75 565
issue (000`s) (net of
treasury shares of 2,4
million F2011: 2,4 million)
Tangible NAV per share 117,3 109,5 98,8
(cents)
4. Segmental analysis
The Group`s operating segments and segmental information presented in the
condensed consolidated results for the six months ended 30 September 2011
represents the basis for segmental reporting. The business segment
reporting format reflects the Group`s management and internal reporting
structure. Inter-segment transactions are concluded at arm`s length terms
and conditions.
Unaudited Audited Unaudited
Six months Twelve months Six months
ended ended ended
30 September 31 March 30 September
2011 2011 2010
R`000 R`000 R`000
Segment turnover
Production and sales 70 443 121 764 70 041
Security and related 22 519 45 410 22 809
production and sales
Supply and maintenance of 47 924 76 354 47 232
alternative power sources
Network and annuity income 9 657 18 968 6 576
Corporate head office and 7 342 8 668 3 858
other
Consolidation adjustments (4 305) (8 668) (10 503)
Total turnover 83 137 140 732 69 972
Comprehensive income
Production and sales 9 553 14 648 10 785
Security and related 5 251 10 930 6 376
production and sales
Supply and maintenance of 4 302 3 718 4 409
alternative power sources
Network and annuity income 5 112 10 457 3 793
Corporate head office and 6 179 5 145 5 834
other
Consolidation adjustments (6 437) (6 906) (5 979)
Total comprehensive income 14 407 23 344 14 433
Income attributable to non-
controlling shareholders
Supply and maintenance of 2 143 1 984 2 327
alternative power sources
Assets
Production and sales 101 878 91 874 103 053
Security and related 50 857 48 026 56 344
production and sales
Supply and maintenance of 51 021 43 848 46 709
alternative power sources
Network and annuity income 33 400 32 527 24 306
Corporate head office and 105 257 104 698 106 940
other
Consolidation adjustments (57 655) (55 524) (63 473)
Total assets 182 880 173 575 170 826
5. Related party transactions
Unaudited Audited Unaudited
Six months Twelve months Six months
ended ended ended
30 September 31 March 30 September
2011 2011 2010
R`000 R`000 R`000
Purchases from fellow 1 200 11 348 775
subsidiary companies
Management fees 3 105 7 928 3 240
Operating lease 422 874 309
6. Subsequent events
Subsequent to this reporting date, the Secequip transaction has been
completed and implemented.
7. Dividends
No interim dividend has been declared.
8. Directors
DH Alexander (Chief executive officer)
KA Colley (Financial director and company secretary)
KA Vieira (Operational director)
HS Courtney (Non-executive chairman)
M Noge (Non-executive director)
CH Boulle (Non-executive director)
All of the above directors are South African and are resident in South
Africa.
9. Outlook
We remain optimistic that our focused strategy and operational efficiency
will enable us to deliver positive returns for our shareholders.
We believe that the Group`s market position, low-cost, high-quality
products, and commitment to operational improvement and expansion will
ensure our ongoing success.
On behalf of the board
HS Courtney DH Alexander
Chairman* Chief Executive
Sandton
9 November 2011
Directors
HS Courtney (Chairman)*
DH Alexander
KA Colley
KA Vieira
M Noge*
CH Boulle*
(*non-executive)
Auditors
Mazars, 2nd Floor Mazars House
5 St Davids` Place, Parktown, 2193
(PO Box 6697, Johannesburg, 2000)
Transfer Secretaries
Link Market Services (Proprietary) Limited
13th Floor, Rennie House
19 Ameshoff Street, Braamfontein, 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, Waverley, 2090
(PO Box 95104, Grant Park, 2051)
Visit us at www.amecor.com
INNOVATION THROUGH TECHNOLOGY
Date: 09/11/2011 16:06:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
