| Mon 26 Mar 2001, 0:00 | | Global Technology Delivers Strong Results |
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Global Technology Limited
Incorporated in the Republic of South Africa
Registration number 1996/009809/06
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2000
COMMENTARY
INTRODUCTION
Global Technology is the leading provider of software solutions to the banking,
insurance and financial communities across Africa and Australia.
The Group, together with its international partner TEMENOS Holdings NV, has
achieved considerable international growth and global market penetration. It
has successfully established a dominant position in Australia through Solace
Limited, recently renamed Global Technology Australasia.
RESULTS
During the six months under review, Global Technology9s revenue increased by
49% from R128 million to R190 million. The Group achieved an impressive
headline earnings of R19,3 million, an increase of 91% on the same period last
year. Headline earnings per share has increased by 27% to 5,2 cents.
This significant increase in earnings can be attributed largely to the fact
that the Group has significantly expanded its market penetration through sales
and implementations in new regions globally. For the first time these figures
include the TEMENOS investment. Over 66% of the Group9s earnings is now
dollar-denominated.
The period under review saw a number of solutions, across Global Technology9s
divisions, being provided to an exciting list of new clients.
SIGNIFICANT EVENTS
During the six months under review, TEMENOS effected a share buyback, from
IAVM, its original venture capital partner. This increased Global Technology9s
stake in TEMENOS from 14% to 20%.
Cementing the partnership further, Global Technology was appointed by TEMENOS
as an official GLOBUS Development Centre, one of only four worldwide, and the
only one not owned by TEMENOS.
In addition, Global Technology sold to TEMENOS the rights to four of its
locally-developed software solutions a strong endorsement of Global
Technology9s product development skills. These products are in the process of
being incorporated into GLOBUS as additional modules for sale internationally.
Global Technology will receive royalties on all sales of these modules outside
of Africa and Australia.
Also during the period, GLOBUS, TEMENOS9 world-leading banking solution,
reinforced its position as the best-selling solution in its market. TEMENOS
recently sold GLOBUS to three major banks in Europe, including the Bank of
England. Overall, TEMENOS had an excellent year in terms of sales, with 56 new
contracts signed in the calendar year 2000.
TEMENOS' sales success in the northern hemisphere has provided additional
opportunities for Global Technology9s implementation teams, which are being
called upon increasingly to assist TEMENOS on implementations all over the
world. Global Technology9s implementation skills have proven repeatedly to be
world-class.
PROSPECTS
Prospects for the second half are very promising. The Group anticipates
improved performance from all divisions.
Global Technology and TEMENOS are working together continually to identify
opportunities for future expansion in untapped markets. The company's
increasing reputation for successful GLOBUS implementations is boosting further
its ability to earn dollar-denominated revenues.
INTERIM DIVIDEND
In line with Global Technology9s conservative dividend policy, the directors
have agreed that no interim dividend will be declared.
DEMATERIALISATION OF SHARES
The date for dematerialisation of Global Technology shares is 16 April 2001.
Trading for electronic settlement begins on 7 May 2001.
By order of the Board
Peter Springett Chairman
Ray Leonard Chief Executive Officer
27 March 2001
Consolidated Income Statement
Six months Six months
ended ended
31 December 31 December %
2000 1999 move
R000 R000
Revenue 190 621 128 120 49
Operating profit 21 105 16 747
Depreciation assets (1 886) (1 763)
Operating profit before interest and tax 19 219 14 984 28
Net interest received/(paid) 498 (60)
Net profit before taxation 19 717 14 924 32
Taxation (3 930) (2 702)
Profit after taxation 15 787 12 222
Minority interest (1 989) (2 272)
Net profit before associates 13 798 9 950 39
Income from associates 5 453 131
Headline earnings 9 251 10 081 91
Goodwill amortisation (2 537) -
Retained profit 16 714 10 081
Net operating profit % 10,1 11,7
Number of shares in issue (thousands) 373 508 244 916
Weighted average number of shares in issue
(thousands) 370 934 244 916
Headline earnings per ordinary share
(cents) 5,2 4,1
Earnings per ordinary share (cents) 4,5 4,1
Reconciliation of headline earnings per share
Earnings per share 4,5 4,1 10
adjusted for:
Adjustment for goodwill amortisation 0,7 -
Headline earnings per share 5,2 4,1 27
Summarised Consolidated Balance Sheet
Assets
Equipment 11 158 11 692
Goodwill and trademarks 34 984 6 000
Loans receivable 9 718 2 000
Investments in associates Note 1 161 707 18 805
Investments listed 725 -
Investments unlisted 1 194 550
Total current assets 130 987 86 031
Current assets 121 092 84 865
Cash and cash equivalents 9 895 1 166
Total assets 350 473 125 078
Equity and liabilities
Ordinary shareholders' interest 229 071 62 673
Minority interest 12 013 2 507
Deferred taxation - 481
Long-term liabilities 8 109 4 005
Current liabilities 101 280 55 412
Total liabilities 350 473 125 078
Net tangible asset value per ordinary share
(cents) 52,0 23,1
Abridged Cash Flow Statement
Cash generated from operations
before working capital changes 20 812 14 984
Working capital changes (14 294) (15 685)
Net finance cost 498 (60)
Taxation paid (6 489) (1 699)
Cash flow from operating activities 527 (2 460)
Cash flow from investing activities (10 114) (22 215)
Cash flow from financing activities 4 501 9 717
Net decrease in cash and cash equivalents (5 086) (14 958)
Cash and cash equivalents at beginning of
period 14 981 16 124
Cash and cash equivalents at end of period 9 895 1 166
Notes
1 Investment in associates
Equity 149 506 4 248
Loans to associates 12 201 14 557
161 707 18 805
2 Other
There were no contingent liabilities or material capital commitments
existing at the end of the period,
Registered office
Arcay House 11
Number Three Anerley Road
Parktown 2193
PO Box 62397
Marshalltown 2107
Transfer secretaries
Computershare Services Limited
2nd Floor Edura House
41 Fox Street
Johannesburg 2001
Directors
PA Springett* ** Chairman R Leonard Chief Executive Officer
KDD de Villiers* JM Hughes** G Koukis * *** DC McWilliam
PJ Moffett G Leonard A Mhlongo* M Tshivhase*
*Non-executive **British ***Greek
Company secretary
Arcay Client Support (Pty) Ltd
Registration number 1998/025284/07
M&D Graphic Design (Pty) Ltd
johannm@mdgraphic.co.za Tel (011) 789 6337 Fax (011) 789 7151
Cell 083 632 1158
GLOBAL TECHNOLOGY DELIVERS STRONG INTERIM RESULTS
Global Technology Limited (Glotec) today announced its interim results for the
six months ended December 2000. The results show a significant increase in
earnings, which can be attributed largely to the fact that the Group has
considerably expanded its market penetration through product sales and
implementations in new regions globally.
During the six months under review, Global Technology's revenue increased by
49% from R128 million to R190 million. The Group achieved impressive headline
earnings of R19.3 million, an increase of 91% on the same period last year.
Headline earnings per share has increased by 27% to 5.2 cents.
Ray Leonard, CEO of Global Technology says, "For the first time the interim
figures include the results of our international partner, TEMENOS Holdings, NV,
of which Global Technology owns 20%.
"A number of significant events have taken place during the period under
review. Global Technology sold to TEMENOS the rights to four of its
locally-developed software solutions - a strong endorsement of Global
Technology's product development skills. These products are in the process of
being incorporated into GLOBUS - Temenos's world leading banking solution - as
additional modules for sale internationally. Global Technology will receive
royalties on all sales of these modules outside of Africa and Australia, in
which territories it receives 100% of the revenue from sales.
"Temenos's sales success in the northern hemisphere has provided additional
opportunities for Global Technology's implementation teams, which are being
called upon increasingly to assist TEMENOS on implementations all over the
world. Global Technology's implementation skills have proven to be
world-class," Leonard concludes.
The partnership between the two has been cemented further by TEMENOS'
appointment of Global Technology as a GLOBUS Development Centre (GDC), one of
four world-wide and the only one not owned by TEMENOS. The GDC allows Global
Technology to generate dollar-denominated income whilst incurring Rand-based
costs.
Prospects for the second half look extremely promising as the Group anticipates
improved performance from all divisions.
Global Technology is the leading supplier of software solutions to the banking,
insurance and financial communities in Africa and Australia.
ends
Written and distributed by : Arcay Financial
Communications
On behalf of : Global Technology Limited
Further information : Gayle Barbour
Tel : 27 11 480 8573
Fax : 27 11 480 8556
Cell : 083 307 6484
e-mail : barbg@arcay.co.za
For immediate comment:
Ray Leonard Global Technology CEO : 011 797 6811
