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SLL
SLL
SLL - Stella Vista Technologies Limited - Reviewed consolidated results for the
year ending 31 August 2011
Stella Vista Technologies Limited
("Stella Vista" or "the company")
(Registration number 1996/000172/06)
Share Code: SLL ISIN: ZAE000018198
REVIEWED CONSOLIDATED RESULTS FOR THE YEAR ENDING 31 AUGUST 2011
Revenue - R27,414 million (down by 36%)
Net loss for the year - R1,484 million (down by 60%)
REVIEWED CONDENSED CONSOLIDATED
STATEMENT OF COMPREHENSIVE INCOME
Reviewed Audited
Twelve Twelve
months ended months ended
31 Aug 11 31 Aug 10
R`000 R`000
Revenue 27,414 42,871
Gross Profit 16,866 20,743
Loss/(Profit) before interest and 1,183 1,178
depreciation
Depreciation (3,803) (4,935)
Loss before interest and taxation (2,620) (3,757)
Investment income - 8
Finance cost 744 (351)
Loss before taxation (1,876) (4,100)
Taxation 392 423
Loss after taxation (1,484) (3,677)
Other comprehensive income / (loss)
Foreign currency translation (84) (595)
differences on foreign operations
Total comprehensive loss for the year (1,568) (4,272)
Loss attributable to:
Equity holders of the parent company (1,320) (3,542)
Non-controlling interests (164) (135)
Loss for the year (1,484) (3,677)
Total comprehensive loss attributable
to:
Equity holders of the parent company (1,393) (4,110)
Non-controlling interests (175) (162)
Total comprehensive loss for the year (1,568) (4,272)
Earnings per shares (cents)
Basic (see note 3) (0.91) (2.44)
Diluted (see note 3) (0.91) (2.46)
REVIEWED CONDENSED CONSOLIDATED
STATEMENT OF FINANCIAL POSITION
ASSETS
Non-current assets 11,086 10,494
Property, plant and equipment 10,025 9,824
Deferred taxation assets 1,061 669
Current assets 12,874 19,296
Inventories 7,838 13,258
Trade and other receivables (note 4) 4,140 4,548
Cash and cash equivalents 896 1,491
Total assets 23,960 29,790
EQUITY AND LIABILITIES
Equity 9,226 10,794
Attributable to Stella Vista 9,096 10,489
Non-controlling interests 130 305
Non-current liabilities 439 1,453
Interest-bearing borrowings 113 115
Deferred revenue 326 1,338
Current liabilities 14,295 17,543
Trade and other liabilities 6.847 11,890
Deferred revenue 1,068 938
Taxation payable 459 459
Current portion of interest-bearing 5,916 4,205
borrowings
Bank overdraft 5 52
Total equity and liabilities 23,960 29,790
Net Asset Value per share (cents) 6.3 7.2
REVIEWED CONDENSED CONSOLIDATED
STATEMENT OF CASH FLOWS
Net loss before tax and separately (1,876) (4,100)
disclosed items
Non-cash items 911 4,759
Working capital changes (95) (4,287)
Cash generated from operations (1,060) (3,627)
Investment income - 8
Finance cost (744) (351)
Taxation refunded/(paid) (392) -
Dividend paid to
Owners of Stella Vista
Non-controlling interest
Cash flow from operating activities (2,196) (3,970)
Purchase of property, plant and (61) (582)
equipment
Cash flow from investing activities (61) (582)
Proceeds from interest bearing 1,709 4,319
borrowings
Cash flow from financing activities 1,709 4,319
Net movement in cash and cash (548) (233)
equivalents
Foreign translation difference in cash - -
and cash equivalents
Cash and cash equivalents at beginning 1,439 1,672
of year
Cash and cash equivalents at end of 891 1,439
year
REVIEWED CONDENSED STATEMENT OF
CHANGES IN EQUITY
Share capital Foreign Share Accumulated
and premium currency based losses
translat payment
ion reserve
reserve
Balance at 31 August 2009 19,650 (1,060) 693 (4,217)
Total comprehensive loss for the (595) (3,677)
year
Restated balance at 31 August 19,650 (1,655) 693 (7,894)
2010
Share options forfeited to share 693 (693) -
premium (see note 6)
Total comprehensive loss for the (84) (1,484)
year
Reviewed balance at 31 August 20,343 (1,739) - (9,378)
2011
Attributab Non-controlling Total
le to interests equity
equity
holders of
the parent
company
Balance at 31 August 2009 14,599 467 15,066
Total comprehensive loss for the year (4,110) (162) (4,272)
Restated balance at 31 August 2010 10,489 305 10,794
Share options forfeited to share premium - - -
(see note 6)
Total comprehensive loss for the year (1,393) (175) (1,568)
Reviewed balance at 31 August 2011 9,906 130 9,226
NOTES TO THE REVIEWED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1.Basis of preparation
The reviewed condensed consolidated results for the year ended 31 August 2011
("year under review") have been prepared in accordance with AC 500 and IAS 34 -
Interim Financial Reporting, the South African Companies Act 2008 (Act 71 of
2008) and the JSE Listings Requirements.
2.Accounting policies
The accounting policies and methods of computation applied in the preparation
of the results for the year under review are consistent with those applied in
the preparation of the group`s annual financial statements for the year ended
31 August 2010.
3.Reconciliation of headline loss
Loss after taxation attributable
to:
Ordinary equity holders of the (1,320) (3,542)
parent entity for the year
Loss on disposal of property, - (32)
plant and equipment
Headline loss (1,320) (3,573)
Weighted average number of 145,000 145,000
shares in issue (000`s)
Headline loss per share (cents)
(0.91) (2.44)
Diluted headline loss per share
(cents) (0.91) (2.46)
4.nventories
Raw material components 2,753 3,696
Work in progress 428 192
Finished goods 4,656 9,370
7,837 13,258
The significant decrease in inventory is due to the transfer of two LED screens
from South Africa to the United Kingdom whereby it is re-classified as
property, plant and equipment as it is used to earn rental income. The further
decrease is due to the impairment of the SV20 and T14 screens.
5. Trade and other payables
Trade and other payables
comprise the following:
Trade payables 3,200 4,198
Deposits 1,810 5,024
Accrued expenses 1,077 545
Payroll related liability 375 781
Bonus accrual - 574
Audit fee accrual - 375
VAT accrual 256 39
Leave pay accrual 129 353
6 847 11,890
Deposits received upfront consist primarily of the deposits received from
Zimbabwe for the sale of perimeter boards. The significant decrease in trade
and other payables is largely due to a decrease in deposits received upfront.
Furthermore no accrual was raised for bonuses for the 2011 year as the company
is not in a position to pay bonuses.
6. Share based payment
The share based payment reserve of R693,000 has been reversed as the options
were not exercised and have expired.
7. Segment information
Management has determined the operating segments based on the monthly reports
reviewed by the board of directors that are used to make strategic decisions.
South African operations, which earns revenue from the sale of the screens.
United Kingdom operations, which earns rental income from renting of screens.
South United Total
Africa Kingdom
R `000s
2011
Total segment revenue 21,881 8,220 30,100
Inter-segment revenue (2,687) - (2,687)
Revenue from external 19,194 8,220 27,414
customers
Cost of sales 7,598 2,950 10,547
Depreciation and amortisation 528 (4,332) (3,803)
Income tax credit/(expense) 392 - 392
Loss after tax 326 1,158 1,484
Inventory 7,838 - 7,838
Total assets 12,150 11,810 23,960
Total liabilities 13,636 1,098 14,734
2010
Total segment revenue 37,232 9,316 46,548
Inter-segment revenue 2,201 1,477 3,678
Revenue from external 25,032 7,839 42,871
customers
Cost of sales 20,257 1,871 22,128
Depreciation and amortisation 1,479 3,456 4,935
Income tax credit/(expense) 423 - 423
Loss/(profit) after tax 1,100 2,577 3,677
Inventory 13,258 - 13,258
Total assets 20,071 9,719 29,790
Total liabilities 18,760 236 18,996
The significant changes in South Africa assets 2011: R12,150m (2010: R20,071m)
is due to impairment of inventory and a sale of LED equipment which was
transferred from inventory to property, plant and equipment in the United
Kingdom, which is used for rental purposes in the United Kingdom segment.
DIRECTORS COMMENTARY
Introduction
Stella Vista Technologies Limited (Stella Vista) was established in February
1994 and has over the years been the leader in design and provision of
information solutions based on LED electronic displays in South Africa, Middle
East, the Indian sub-continent, the Caribbean and the UK and Ireland. In
addition to the head office and factory situated in Kyalami, South Africa the
company owns Stella Vista International Ltd, with offices and warehouse in
Hampton, England. Stella Vista is one of the frontrunners in the visual mass
communications industry worldwide. Driven by the pursuit of excellence, the
Company prides itself on reliability and superior service made possible by its
vision, creativity, ambition and integrity.
We believe that it is our commitment to quality, our application optimised and
innovative designs, the low ownership cost of our products, the high quality of
the materials we use and our dedication to building long-term relationships
with our customers that sets us apart from our competitors. For more
information visit www.stellavista.com or email info@stellavista.com.
The market and prospects
The prospects for improvement in the sport, commercial and transportation
markets are positive considering unstable economy world wide. Stella Vista`s
product range continues to expand. Stella Vista have, whilst still pursuing
high end projects, simultaneously re-entered the market for smaller LED
advertising screens. This market has been explored very successfully in the
past twelve months. During the period under review, Stella Vista supplied two
stadia in Bangladesh with a complete cricket solution (video replay screens,
scoreboards, software, training and control equipment). The Cricket World Cup
was played partly in Bangladesh and our equipment performed very well. A number
of outdoor advertising screens were sold to Primedia Group and given their
significant footprint within this lucrative and expanding market segment,
prospects for further sales growth are considerably heightened. Services and
maintenance have contributed approximately 10% of total revenue. Rentals are
now 30% of the income and this area has excellent prospects to increase in the
future. Rentals of perimeter displays in Europe continues to bring new
opportunities as Stella Vista`s newly developed products and suitability are
been more widely showcased as the UK-based operation strengthens its network of
strategic alliances within this highly competitive sports advertising market.
Developments in Ireland (Aviva Stadium) and high profile event projects, such
as Wembley Stadium, indicate further growth opportunities in the European
markets.
Products and services
The biggest movement besides selling new products, comes from upgrades to
existing sites, where benefits of our FaceUp technology are starting to be
realised. This technology has created new market opportunities where products
previously sold are upgraded at a fraction of the cost of a new installation
and the older technology is refurbished and sold in the used product market.
Review opinion
The condensed consolidated results for the year ended 31 August 2011 have been
reviewed by the group auditors, IAPA Johannesburg Chartered Accountants (SA)
and their unmodified review report is available for inspection at the
registered office of Stella Vista.
Financial results
Stella Vista is operating in a difficult environment for LED industry
worldwide. The result is reduction in revenue of 36% year on year. The
current economic times continue to be challenging to Stella Vista. Despite
this, management stays committed to growth of the business and market
footprint. In terms of technology we are and will remain committed to
innovations and excellence.
The Company has streamlined operations and achieved cost reduction whilst still
maintaining core strengths over the longer period.
Various measures have been taken within the company to adapt to the current
economic climate.
Restructuring of the workforce and widening our scope of products, services and
markets are the most important steps. The full effect of this will only be
reflected in the following reporting periods.
Very encouraging is the continuous growth of our rental business.
The board of directors of Stella Vista (`the board`) is satisfied with the
measures taken by management for the year under review.
Stella Vista`s revenue is derived from sales, rental and maintenance of screens
in geographic locations around the world. (South Africa, United Kingdom and
other countries)
Subsequent events and capital commitments
There have been no significant events since the end of the year under review
and the date of this report. There was no significant capital expenditure
authorised as at 31 August 2011.
Directorate
The board of directors has decided to appoint LJ Kerr as the Financial Director
of the company with effect from 21 November 2011. RH Burke has resigned from
the board of the company.
Dividends
The Board has resolved not to declare dividends until the Group`s liquidity
position has improved.
On behalf of the directors
M Tabakovic
Chief Executive Officer
Registered office
62 Kyalami Boulevard, Kyalami Business Park, Kyalami
Tel: (0ll) 466 2020
Website: www.stellavista.com
E-mail: muris@stellavista.com
Directors
M Tabakovic (Chief Executive Officer)
C Livingstone (Non-executive)
D Tabakovic
LJ Kerr
Company secretary
LJ Kerr
Sponsor
Arcay Moela Sponsors (Pty) Limited
Auditors
IAPA Johannesburg Chartered Accountants (SA)
Date: 30/11/2011 17:01:01 Produced by the JSE SENS Department.
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