| Tue 27 Mar 2001, 0:00 | | Abacus - Unaudited Results |
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Abacus Technology
Incorporated in the Republic of South Africa
Registration number 1991/004163/06
("Abacus" or "the Group")
UNAUDITED INTERIM RESULTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2000
AND CAUTIONARY ANNOUNCEMENT
Abridged Group Income Statements
Twelve
Six months Six months months
ended ended ended
31 Dec 2000 31 Dec 1999 30 June 2000
Unaudited Unaudited Audited
R'000 R'000 R'000
Revenue 123 241 161 289 296 502
Continuing operations 123 241 161 289 245 647
Discontinued operations 50 855
Operating profit/(loss) 24 158 18 849 35 722
Continuing operations 25 881 18 849 34 423
Discontinued operations (1 723) 1 299
Finance charges 3 945 5 346 8 864
Continuing operations 3 698 5 346 5 727
Discontinued operations 247 3 137
Net income/(loss) before
amortisation of intangibles 20 213 13 503 26 858
Continuing operations 22 183 13 503 28 696
Discontinued operations (1 970) (1 838)
Amortisation of intangibles 2 285
Continuing operations
Net income/(loss) before
taxation 17 928 13 503 26 858
Continuing operations 19 898 13 503 28 696
Discontinued operations (1 970) (1 838)
Taxation 9 902 4 977 11 650
Continuing operations
Net income/(loss) after
taxation 8 026 8 526 15 208
Continuing operations 9 996 8 526 17 046
Discontinued operations (1 970) (1 838)
Exceptional item of a
capital nature (35 673)
Earnings/(loss) attributable
to shareholders 8 026 8 526 (20 465)
Weighted average number
of shares in issue (000) 331 152 286 929 308 302
Headline earnings per
share - cents 3.7 3.0 5.5
Earnings/(loss) per
share - cents 2.4 3.0 (6.6)
Determination of Headline Earnings
R'000 R'000 R'000
Earnings/(loss)
attributable to shareholders 8 026 8 526 (20 465)
Loss from discontinued
operations 1 970 1 838
Goodwill amortisation 2 285
Exceptional items of a
capital nature 35 673
Headline earnings 12 281 8 526 17 046
Abridged Group Balance Sheets
31 Dec 2000 31 Dec 1999 30 June 2000
Unaudited Unaudited Audited
R'000 R'000 R'000
ASSETS
Non-current assets 163 311 195 387 155 017
Tangible fixed assets 71 750 107 842 65 091
Intangible fixed assets 91 561 87 545 89 926
Current assets 76 544 85 080 57 574
Inventories 12 989 19 736 7 960
Accounts receivable 63 256 65 344 49 614
Bank and cash balances 299
239 855 280 467 212 591
EQUITY AND LIABILITIES
Shareholders interest 81 050 97 391 69 987
Debt 108 600 131 082 93 341
Long term 62 245 74 486 65 908
Short term 46 355 56 596 27 433
Current liabilities 50 205 51 994 49 263
239 855 280 467 212 591
Number of shares in
issue (000) 331 152 331 152 331 152
Note: Subsequent to year end, gross proceeds of R16,5m was received for the
disposal of the Refinery Post Productions (Pty) Ltd. The majority of these
funds has been used to reduce debt.
Analysis of Shareholders Interest
Twelve
Six months Six months months
ended ended ended
31 Dec 2000 31 Dec 1999 30 June 2000
Unaudited Unaudited Audited
R'000 R'000 R'000
Balance at beginning
of period 69 987 47 376 47 376
Retained surplus/
(accumulated loss) 8 026 8 526 (20 465)
Net proceeds from share
issues 43 083 43 083
Increase/(decrease) in NDR 3 037 (1 594) (7)
Balance at end of period 81 050 97 391 69 987
Comments and Results
Introduction
Abacus' main business is the replication of video tapes and DVD's, the
provision of post production services to the motion picture and the commercials
industry as well as the satellite transmission of commercials to remote
television stations.
With the disposal of the local post production business, The Refinery, at the
end of the last financial year, the remaining operations of Abacus are located
in Melbourne and Sydney, Australia and Auckland, New Zealand, and trade under
the name AAV.
Performance
Headline Earnings per share for the Group increased substantially from R8 526m
to R12 281m for the comparable period under review. This represents a 23.3%
increase in Headline Earnings per share to 3.7 cents.
The elimination of all loss making businesses and a continued strong
performance from the Australian operations were the main reasons for these
improvements. In addition, the substantial reduction in debt has resulted in a
reduction of interest charges.
Accounting policies
The accounting policy for intangibles has been changed in order to comply with
Generally Accepted Accounting Practice. With effect from 1 July 2000
intangibles are amortised on a straight line basis over 20 years. Other than
this change, the accounting policies used in the preparation of the Interim
Financial Statements are consistent with those used in the Annual Financial
Statements for the year ended 30 June 2000.
Prospects
Abacus' remaining businesses continue to perform well and remain at the cutting
edge of technology. During January 2001 a DVD plant was successfully
commissioned in Sydney launching Abacus into the new era of home entertainment.
AAV'S post
production company is the first to have introduced digital tele-cine equipment
in Australia, heralding the transition into high definition television (HDTV)
broadcasting in that country.
Since acquisition, AAV has always met and in many cases exceeded expectations.
AAV's strong management has ensured that the Company dominates the markets in
which it serves, by continually investing in state-of-the-art technology. The
Abacus Board are confident that this operation will continue to produce
satisfactory results.
Dividend
Prevailing conditions at year end will determine if a final dividend will be
declared .
Cautionary announcement
Shareholders are advised that negotiations are taking place, which if
successfully
concluded may have an effect on Abacus' share price. Shareholders are
accordingly advised to exercise caution when dealing in their Abacus shares
until further
announcement is made.
For and on behalf of the Board
SJ Seeff Chairman
Sandton
27 March 2001
Directors: SJ Seeff (Chairman), GZ Burg, GS Harris, HR Levin, LM Nestadt, BR
Seeff
Registered office: 7th Floor, JHS Executive Centre, 112 Kerk Street,
Johannesburg 2001.
Transfer secretaries: Merit Registrars (Proprietary) Limited, 6th Floor, JHS
Executive Centre, 112 Kerk Street, Johannesburg 2001.
