| Tue 13 Mar 2001, 0:00 | | Top Tech Interim Results |
|
Top Info Technology Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/001957/06)
("Top-Tech" or "the company")
Interim results for the six months ended 31 December 2000
Consolidated income statement
As
previously
Adjusted reported
Six Sixteen Sixteen
months months months
ended ended ended
31 Dec 30 June 30 June
2000 2000 2000
Unaudited Unaudited Audited
R'000 R'000 R'000
Turnover 30 535 56 129 83 056
Operating (loss)/income (15 175) (3 355) 23 537
Other income 492 680 680
Net interest (1 817) (381) (381)
Depreciation (1 634) (3 197) (5 313)
Investment(s) write-off (9 568) (5 225) (5 225)
Restructuring cost - (4 263) (4 263)
Goodwill write-off - (19 739) -
Development cost
expensed - (10 372) -
(Loss)/income before
taxation (27 702) (45 852) 9 035
Taxation (446) (653) (1 224)
Retained (loss)/income
for the period (28 148) (46 505) 7 811
Number of shares in issue 86 044 83 474 83 474
Weighted average number
of shares in issue 85 052 78 450 78 450
Basic earnings per
share (cents) (33,10) (59,28) 9,96
Diluted earnings per
share (cents) (33,10) (57,52) 9,66
Headline earnings per
share (cents) (22,43) (22,89) 21,18
Diluted headline earnings
per share (cents) (22,43) (22,21) 20,56
Consolidated cash flow statement
As
previously
Adjusted reported
Six Sixteen Sixteen
months months months
ended ended ended
31 Dec 30 June 30 June
2000 2000 2000
Unaudited Unaudited Audited
R'000 R'000 R'000
Cash inflow/(outflow)
from operating activities (12 650) (18 148) (7 678)
Cash inflow/(outflow)
from investing activities (2 486) (22 406) (32 892)
Cash inflow/(outflow)
from financing activiities 14 946 29 081 29 090
Net increase/(decrease)
in cash and cash
equivalents (190) (11 473) (11 480)
Cash and cash equivalents
at the beginning of the
period (7 845) 3 628 3 628
Cash and cash equivalents
at the end of the period (8 035) (7 845) (7 852)
Consolidated balance sheet
As
previously
Adjusted reported
31 Dec 30 June 30 June
2000 2000 2000
Unaudited Unaudited Audited
R'000 R'000 R'000
ASSETS
Non-current assets 6 234 17 806 55 573
Fixed assets 5 642 6 526 6 542
Development costs - - 16 285
Goodwill and trademarks 200 291 23 244
Investments and loans 392 10 989 9 502
Current assets 15 129 17 656 50 034
Inventories 2 053 2 380 2 380
Work in progress - - 32 369
Trade and other receivables 10 322 11 910 11 919
Prepayments 964 1 742 1 742
Cash and cash equivalents 1 462 1 624 1 624
Short-term loan 328 - -
Total assets 21 363 35 462 105 607
EQUITY AND LIABILITIES
Capital and reserves (29 243) (7 262) 61 353
Issued capital 17 108 10 684 10 684
Non-distributable reserves 33 936 34 193 34 165
Accumulated (loss)/profit (80 287) (52 139) 16 504
Non-current liabilities 8 639 18 250 22 093
Amount due to vendors* 7 161 16 114 17 043
Long-term liabilities 1 478 2 136 5 050
Current liabilities 41 967 24 474 22 161
Trade and other payables 12 128 9 813 9 826
Taxation 736 1 190 1 761
Bank overdraft 9 497 9 469 9 477
Short-term loans 19 606 4 002 1 097
- Shareholders 18 126 2 914 -
- Other 1 480 1 088 1 097
Total equity and liabilities 21 363 35 462 105 607
Net asset value (incl.
intangible assets) (cents) (34,22) (8,70) 73,50
Net asset value (excl.
intangible assets) (cents) (34,22) (9,05) 45,65
*Payable in Top-Tech securities (4 956 132 shares calculated at a share
price ranging from R1,10 to R2,40)
Notes to the interim results
As
previously
Adjusted reported
Six Sixteen Sixteen
months months months
ended ended ended
31 Dec 30 June 30 June
2000 2000 2000
Unaudited Unaudited Audited
R'000 R'000 R'000
1. Reconciliation of net profit
and headline earnings
Net profit per
income statement (28 148) (46 505) 7 811
- Restructuring cost - 4 263 4 263
- Investments write-off 9 568 5 225 5 225
- Other income (492) (680) (680)
- Goodwill - 19 739 -
Headline earnings (19 072) (17 958) 16 619
2. Shares in issue
2 569 864 shares were issued during the six months ended 31 December 2000 at
a premium of R2,49 per share.
COMMENTS
Review of results and restatement of prior year results
The board of directors ("the Board") hereby presents the company's unaudited
interim results for the six months ended 31 December 2000.
The board has reviewed the company's accounting policies and in particular the
treatment of certain specific items addressed below. The review resulted in the
restatement of the company's results for the sixteen months ended 30 June 2000,
from an attributable profit of R7,8 million to a loss of R46,5 million. The
company incurred an attributable loss of R28,1 million for the period under
review.
Change in accounting policies
The company changed its accounting policies in respect of the following items:
Goodwill
Prior to the change in accounting policy, goodwill was recognised by the
company as an intangible asset but was not amortised. The company changed its
accounting policy to expense goodwill as and when it arises.
Development costs
Certain development costs were previously capitalised and amortised on a
straight-line basis. In terms of the new accounting policy, these costs are
expensed as and when incurred.
Work in progress
Revenue was previously recognised in terms of the stage of completion method in
certain instances. This resulted in work in progress increasing from R5,4
million as at 28 February 1999 to R32,4 million as at 30 June 2000. The new
accounting policy only recognises revenue that has been invoiced.
Provision against investments
Provisions were raised against the carrying value of certain investments to
reflect the uncertainty relating to the realisable value thereof.
Contingent liability
The company is involved in certain legal actions, the outcome and legal costs
of which could not be determined at this stage.
Liquidity, solvency and going concern
The company's interim results reflect a net shareholders' deficit of R29,2
million as at 31 December 2000, compared to a restated shareholders' deficit of
R7,3 million as at 30 June 2000. These results were compiled based on the going
concern assumption. Stakeholders are referred to an announcement published
today regarding, inter alia, an application for the liquidation of the company.
The outcome of this process may impact on the interim results published today.
For and on behalf of the board
F J Vermaak
Managing Director
Pretoria
13 March 2001
Directors: R R Greyling*, S B Ngubane*, F J Vermaak, H D R Wason*
*Non-executive
