| Wed 18 Apr 2001, 0:00 | | Micrologix - Unaudited Results |
|
MICROLOGIX LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/018118/06)
("Micrologix" or "the company")
UNAUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2000 AND POST BALANCE SHEET
RESTRUCTURING
UNAUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2000
Group income statement
Unaudited Interim Audited
results for the results for the results for the
year ended six months ended 15 months ended
31 Dec 2000 30 Jun 2000 31 Dec 1999
R'000 R'000 R'000
Revenue 1 546 1 758 6 393
Operating loss before
interest (6 501) (1 628) (18 700)
Net interest
(paid)/received (16) 77 1 076
Operating loss (6 517) (1 551) (17 623)
Abnormal items (22 000) (23 908) (48 375)
Prior year adjustment - - (4 300)
Net loss before taxation (28 517) (25 459) (70 298)
Taxation provision - - -
Net loss after taxation (28 517) (25 459) (70 298)
Outside shareholders loss - - -
Attributable loss (28 517) (25 459) (70 298)
Dividends - - -
Retained loss
for the period (28 517) (25 459) (70 298)
Fully diluted information
Loss per share (cents) (19,0) (17,0) **(46,9)
Headline loss per
share (cents) (4,3) (0,3) **(12,8)
Shares in issue ('000) 150 000 150 000 150 000
** Restated
Headline Earnings
Headline earnings for the purpose of calculating headline earnings per share is
calculated as follows:
Attributable loss R'000
(28 517)
Add back: Abnormal items
- Write off of intellectual property 22 000
Headline loss (6 517)
Group balance sheet
31 Dec 2000 30 Jun 2000 31 Dec 1999
R'000 R'000 R'000
(Restated)
ASSETS
Non-current assets 651 2 389 22 928
Property, plant and equipment 635 335 874
Intellectual property - 2 000 22 000
Intangible assets - - -
Investments and loans 6 41 41
Employee share trust 10 13 13
Current assets 437 616 3 763
Accounts receivable 180 145 768
Inventory 231 430 1 467
Cash resources 26 41 1 528
Total assets 1 088 3 005 26 691
EQUITY AND LIABILITIES
Capital and reserves (5 093) (2 035) 23 424
Issued capital 93 722 **93 722 **93 722
Distributable reserves (98 815) **(95 757) **(70 298)
Current liabilities 6 181 5 040 3 267
Accounts payable 6 181 5 040 3 267
Total equity and liabilities 1 088 3 005 26 691
** Restated
Net asset value per (3,4) (1,4) 15,9
share (cents)
Net tangible asset value per
share (cents) (3,4) (1,4) 1,0
Number of shares in
issue ('000) 150 000 150 000 150 000
Abridged group cash flow statement
Unaudited Audited
results for the results for the
year ended 15 months ended
31 Dec 2000 31 Dec 1999
R'000 R'000
Cash flows from operating activities (2 112) **(18 004)
Cash flows from investing activities 610 (3 102)
Cash flows from financing activities - **22 634
Net (decrease)/increase in cash and
cash equivalents (1 502) 1 528
Opening bank balance 1 528 -
Closing bank balance 26 1 528
** Restated
Statement of changes in equity
Share Share Accumulated Total
capital Premium deficit
R'000 R'000 R'000 R'000
Arising from issue of
shares during the period 150 89 272 - 89 422
Net loss for the period - - (65 998) (65 998)
Prior year adjustment - 4 300 (4 300) -
Restated balance at
31 December 1999 150 93 572 (70 298) 23 424
Net loss for the year - - (28 517) (28 517)
Balance at 31
December 2000 150 93 572 (98 815) (5 093)
Commentary and change in control
The results of Micrologix reflect the results of the MedTel division only. As
mentioned in prior announcements de facto control of the Penta Medical Systems
("Penta") division was lost in 1999 as the intention was to dispose of this
division. The agreement relating to the disposal of the Penta division as
announced by the former directors was not ratified and lapsed on 30 September
2000. Due to the loss of de facto control, the results of the Penta division,
namely revenue of R2 297 374 and net loss before taxation of R311 075, have not
been included in the results above and have had no impact on the cash flows of
the company.
The severe financial distress of the company lead to a change in control of the
company on 27 October 2000 and a rescue operation was undertaken in relation to
the company. Trading was temporarily ceased and head office costs were
eliminated with immediate effect. Shareholders are referred to the paragraph
on post balance sheet events below for further information in this regard.
Abnormal items
Following the change in control, the new directors consider that there is
little inherent value in the intellectual property and investments held by the
company and have decided to write down the carrying value to RNil. The
software and products that have been developed have future value, but still
requires funding to commercialise the products. Buyers are being sought for
certain of the software and assets of the company and any proceeds received
will be recognised as and when they are realised.
Prior year adjustment
The prior year audited financial statements included a reduction of R4,3
million to the share premium account and an audit qualification was raised
stating that the share premium recorded in the statutory records was
overstated. Following the change in control this matter was investigated and
it was established that in fact the share premium as per the statutory records
is correct. Accordingly the previous audited financial statements contain a
fundamental error, which requires restatement. The effect of the adjustment is
to increase share premium by R4,3 million and to increase the accumulated
deficit by R4,3 million. Of this, R2,7 million is considered to be an abnormal
write off of investment.
POST BALANCE SHEET RESTRUCTURING AND REGISTRATION OF SECTION 311 COMPROMISE
OFFER WITH CREDITORS
Shareholders are advised that subsequent to the year-end a formal compromise
offer was accepted by the company's creditors at a meeting held on 6 March 2001
and the compromise offer was registered with the Registrar of Companies on 15
March 2001. The effect of the compromise offer is that it places the company
in a solvent position for future trading. The company's directors are in the
process of evaluating the company's remaining assets and are considering, inter
alia, restructuring the balance sheet through a reduction of share capital and
details will be forwarded to shareholders in due course
DIRECTOR APPOINTMENTS
Pursuant to the change in control all former directors have resigned and KJ
Gribnitz, PJ Nel, MJ Forster and M Winter have been appointed to the board.
Corporate Restructurers
Gandalf Trust
Corporate Advisor
Kingfisher Corporate & Executive (Pty) Ltd
