| Wed 15 Dec 2010, 17:23 | | PBT - PBT Group Limited - Audited results for the period ended 31 August 2010 |
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PBT
PBT
PBT - PBT Group Limited - Audited results for the period ended 31 August 2010
PBT GROUP LIMITED
(formerly Wooltru Limited )
Incorporated in the Republic of South Africa
Registration number: 1936/008278/06
SHARE CODE: PBT
ISIN: ZAE000149712
("PBT" or "the group")
AUDITED RESULTS for the period ended 31 August 2010
CHAIRMAN`S REVIEW
GROUP RESULTS
ACQUISITION OF PBT GROUP
With effect from 1 March 2010, WOOLTRU acquired 100% of the equity in PBT Group,
100% of the equity in Stricklands Tetra Cape and 51% of the equity in PBT
Insurance Technologies, resulting in the reverse listing of PBT Group Limited on
the JSE Limited ("the acquisition").
The PBT Group conducts business intelligence and information management services
to large national and international clients in South Africa, Africa, the Middle
East and Australia. In addition, the PBT Group provides specialist health care
management solutions and services. Prescient Business Technologies (PBT) was
established as an information technology company in 1998. PBT Group (SA) has
remained focused in achieving its vision to be the preferred business
intelligence and information management service provider to large national and
international clients.
CHANGE OF NAME
Following the acquisition, the company`s name was changed from Wooltru Limited
to PBT Group Limited on 6 December 2010 and the listing transferred to the
Computer and Software Services sector on the Main Board of the JSE Limited.
CHANGE OF YEAR-END
In order to facilitate the acquisition and to align the reporting period with
that of the PBT Group, the group`s financial year-end was changed from 30 June
to 31 August, resulting in a reporting period of 14 months.
GROUP RESULTS
The group recorded a profit before taxation of R12.2 million (2009: R0,6
million) for the 14-month period ending 31 August 2010. These figures include
the results of PBT Group for six months.
Taxation amounted to (R7.8 million) (2009: R0.3 million), resulting in an after-
tax profit of R20 million (2009: R0.2 million).
Earnings per share (EPS) for the 14-month period amounted to 4.10 cents (2009:
0.04 cents) while headline earnings per share (HEPS) amounted to 3.79 cents
(2009: 0.04 cents).
BOARD COMPOSITION
Mr A Groll and Dr JC van der Horst resigned from the board with effect from 29
October 2010, respectively as executive and non-executive director. I wish to
extend my sincere gratitude for their contribution to the group over the years.
I have been appointed as non-executive chairman of the board with effect from 29
October 2010, replacing Mr Monty Kaplan, who remains on the board as non-
executive director. The executive directors, appointed with effect from 29
October 2010, are Pierre de Wet (chief executive officer), Martin Rennhackkamp,
Ken Wood and Nitesh Vallabh. Murray Louw remains the financial director of the
group.
HC Steyn
Chairman
14 December 2010
Statement of Financial Position
Rm Rm
Figures in Rand (M) Note(s) 2010 2009
Assets
Non-current assets
Property, plant and equipment 2.07 -
Goodwill 7.56 -
Intangible assets 2.79 -
Investments in subsidiaries - -
Loans to group companies - -
Other financial assets 2.61 -
Deferred tax 6.03 0.2
21.08 0.2
Current assets
Inventories 17.20 14.1
Current tax receivable 1.44 1.6
Trade and other receivables 27.19 1.9
Cash and cash equivalents 14.60 42.7
60.43 60.3
Total assets 81.50 60.5
Equity and liabilities
Equity
Share capital 0.1 474.6
Non-distributable reserves 27.8 0.3
Accumulated profit (loss) 26.7 (416.6)
54.7 58.2
Non-controlling interest 1.2 -
55.9 58.2
Liabilities
Non-current liabilities
Loans from group companies
Other financial liabilities 6.3 1.5
6.3 1.5
Current liabilities
Trade and other payables 7.5 0.9
Provisions 2.4 -
Bank overdraft 9.3 -
19.3 0.9
Total liabilities 25.6 2.3
Total equity and liabilities 81.5 60.50
Net asset value per share 11.4c 12.4c
Statement of Comprehensive Income
Figures in Rand (M) Note(s) 2010 2009
Revenue 84.2 6.2
Cost of sales (60.8)
Gross profit 23.4 6.2
Other income 5.1 3.3
Operating expenses (17.8) (4.5)
Medical aid settlement (4.4)
Operating (loss) profit 10.7 0.7
Investment income 2.3
Finance costs (0.8) (0.1)
Profit (loss) before taxation 12.2 0.6
Taxation 7.8 (0.3)
Profit (loss) for the period 20.0 0.2
Other comprehensive income
Total comprehensive income (loss) 20.0 0.2
Profit (loss) attributable to:
Owners of the parent 19.3 0.2
Non-controlling interest 0.7
20.0 0.2
Total comprehensive income (loss) attributable to:
Owners of the parent 19.3 0.2
Non-controlling interest 0.7
20.0 0.2
Earnings per share
Basic earnings per share 4.10c 0.04c
Headline earnings per share 3.79c 0.04c
Diluted earnings per share 4.10c 0.04c
Diluted headline earnings per share 3.79c 0.04c
Statement of Changes in Equity
Total equity
Figures in Rand (M)
Group
Balance at 1 July 2008 58.0
Profit (loss) for the period 0.2
Balance at 1 July 2009 58.2
Profit (loss) for the period 20.0
Business combination 24.8
Dividends declared (47.1)
Balance at 31 August 2010 55.9
Statement of Cash Flows
Rm Rm
Figures in Rand (M) Note(s) 2010 2009
Cash flows from operating activities
Cash receipts from customers 58.6 2.7
Cash paid to suppliers and employees (80.9) (11.8)
Cash used in operations (22.4) (9.0)
Interest income 2.3 6.2
Finance costs (0.8) (0.1)
Tax paid (1.6)
Net cash from operating activities (22.5) (2.9)
Cash flows from investing activities
Purchase of property, plant and equipment -
increase in operating capacity (0.8) -
Purchase of other intangible assets (0.5) -
Business combinations (6.0) -
Purchase of financial assets - (13.8)
Sale of financial assets 11.7 8.9
Net cash from investing activities 4.4 (4.9)
Cash flows from financing activities
Reduction of equity on business combination 22.9 -
Proceeds from other financial liabilities 4.7 -
Repayment of other financial liabilities 0.2 -
Dividends paid (47.1) -
Net cash from financing activities (19.3)
Total cash movement for the period (37.4) (7.8)
Cash at the beginning of the period 42.7 50.5
Total cash at end of the period 5.3 42.7
Segmental Report
In prior periods no reportable segments existed as it did not comply with the
definitions of an operating segment.
Segmental information:
The group`s reportable segments are as follows:
For management purposes, the group is organised into two distinct business
segments, based on the services that each provides. The group is a pure services
company and derives no income from the selling of third party software or
hardware. The pricing structure for the "Insurance and Medical Aid
Administration software services" segment is largely based on the number of
members administered.
Management monitors the operating results of the business segments continuously
to optimise the allocation of resources and to assess performance and
profitability. Finance costs, finance income and income taxes are managed on a
group basis.
Insurance and
medical aid
Computer software administration
consulting and software
implementation and services Other
Figures in Rand (M)
COMPREHENSIVE INCOME
Revenues from external customers 76,4 9,7 (1,8)
Intra-group revenues 0,3 - 0,4
Revenue total 76,6 9,7 (1,4)
Operating profit 10,4 2 (1,7)
Interest income - 0,1 2,2
Interest expenses (0,7) - (0,1)
Share of profit (loss) of associates
Income taxes 8,3 (0,5) 0,1
Profit (loss) for the period 18,0 1,5 0,5
FINANCIAL POSITION
Reportable segment assets 59,3 3,4 18,8
Assets total 59,3 3,4 18,8
Reportable segment liabilites (20,7) (2,2) (2,7)
Unallocated liabilities
Liabilities total (20,7) (2,2) (2,7)
OTHER INFORMATION
Capital expenditure 1,1 0,2 -
Depreciation (0,5) (0,3) -
Impairment (0,4)
Eliminations and
adjustments Consolidated
Figures in Rand (M)
COMPREHENSIVE INCOME
Revenues from external customers 84,2
Intra-group revenues (refer to note 1) (0,7) -
Revenue total (0,7) 84,2
Operating profit 10,7
Interest income 2,3
Interest expenses (0,8)
Share of profit (loss) of associates -
Income taxes 7,8
Profit (loss) for the period - 20,0
FINANCIAL POSITION
Reportable segment assets 81,5
Assets total - 81,5
Reportable segment liabilites (25,6)
Unallocated liabilities
Liabilities total - (25,6)
OTHER INFORMATION
Capital expenditure (refer to note 2) 1,3
Depreciation (0,8)
Impairment
Notes:
1. Intergroup management fees are charged at approximate market prices.
2. Capital expenditure consists of additions of property, plant and equipment.
Geographic information:
Revenue from external customers
Rand
Africa and Middle East 30,912,661
Australia 1,471,338
Republic of South Africa 51,822,593
The revenue information above is based on the location of the customer.
Information about major customers
Revenue from three customers amounted to R38,234,736, arising from services by
the `Computer software consulting and implementation` segment.
NOTES:
1. Basis of Preparation
The consolidated financial statements have been prepared in accordance with
International Financial Reporting Standards, IAS 34 Interim Financial Reporting,
the AC 500 standards and the JSE Listings Requirements and the Companies Act of
South Africa 2008 (Act 71 of 2008). The consolidated financial statements have
been prepared on the historical cost basis, except for certain financial
instruments carried at fair value and inventory measured at the lower of cost of
fair value less costs to complete and sell, and incorporate the principal
accounting policies set out below. The functional and presentation currency of
the company is the South African Rand. These accounting policies are consistent
with the previous period except for the adoption of IAS 1 and IFRS 8.
The group`s results for the period ended 31 August 2010 have been audited by LDP
Inc. Their unqualified audit opinion is available for inspection at the
company`s registered office.
2. Prospects
PBT is trading according to expectations and all indications are that the profit
before tax warranty in terms of the acquisition of R32 million for the 12 months
ending 28 February 2011 will be achieved.
3. Going concern
The consolidated financial statements have been prepared on the basis of
accounting policies applicable to a going concern. This basis presumes that
funds will be available to finance future operations and that the realisation of
assets and settlement of liabilities, contingent obligations and commitments
will occur in the ordinary course of business.
4. Dividends paid
A dividend of R47,085,994 was declared and paid on 28 September 2009 by PBT
Group Limited. The dividend was proposed by the directors and authorised by the
shareholders of the company.
5. Earnings per share
The calculation of earnings and headline earnings per share is based on a
weighted average of 470.9 million (2009: 470.9 million) ordinary shares and "N"
ordinary shares in issue. Basic earnings per share and headline earnings per
share is reconciled as follows:
Basic and diluted earnings per share for the group are reconciled as follows
Profit (loss) attributable to equity holders 19,286,532 226,024
Basic and diluted weighted average number
of shares 470,859,935 470,859,935
Basic and diluted earnings per share 4.10c 0.04c
There were no diluted effects on the basic earnings or the weighted average
number of shares at year-end.
Headline and diluted headline earnings per share for the group are reconciled as
follows
Profit (loss) attributable to equity holders 19,286,532 226,024
IAS 27: Gain on the loss of control of the
subsidiary (1,446,840) -
Headline earnings per share 17,839,692 226,024
Basic and diluted weighted average number
of shares 470,859,935 470,859,935
Headline and diluted headline earnings per share 3.79c 0.04c
6. Change of Name
The name of Wooltru Limited was changed to PBT Group Limited on 6 December 2010
and the listing transferred to the Computer and Software Services sector on the
Main Board of the JSE Limited.
Directors: M Kaplan*, AM Louw , MH Rennhackkamp, PJ de Wet, KN Wood,
N Vallabh, HC Steyn (Chairman)*
*Independent non-executive director
Domicile and registered office: Unit 3, Knowledge Park 3,
Cnr Century Boulevard and Heron Crescent, Century City,
South Africa, 7441
Postal address: PO Box 276, Century City, 7446
Auditors: LDP Inc., Registered Auditors
Company secretary: B Pieters
Transfer secretaries: Computershare Investor Services
(Proprietary) Limited, 70 Marshall Street, Johannesburg,
2001, South Africa
Sponsor: Bridge Capital Advisors (Pty) Limited, 27 Fricker Road, Illovo
Boulevard, Illovo, 2196 South Africa
Date: 15/12/2010 17:23:08 Produced by the JSE SENS Department.
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