| Fri 20 Apr 2001, 0:00 | | Maxtec - Unaudited Group Results |
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Maxtec Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/004039/06)
("Maxtec")
UNAUDITED GROUP RESULTS FOR THE SIX MONTHS ENDED 28 FEBRUARY 2001
GROUP INCOME STATEMENT
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
28 Feb 2001 29 Feb 2000 31 Aug 2000
R'000 R'000 R'000
Revenue 69 169 46 565 81 410
Operating profit (2 285) 6 713 10 764
Net interest paid (533) 109 (151)
Income from associate 389 305 418
Profit before tax (2 429) 7 127 11 031
Tax - (2 089) (3 154)
(2 429) 5 038 7 877
Amortisation of goodwill paid
in respect of investment in associate (100) - -
Net (loss)/profit after tax
for the period (2 529) 5 038 7 877
Depreciation (R'000) 444 295 744
Net interest paid (533) 109 (151)
Interest received 38 225 664
Interest paid (571) (116) (815)
Earnings per ordinary share (cents) (2.9) 5.9 9.2
Headline earnings
per ordinary share (cents) (2.8) 5.9 9.2
Fully diluted headline earnings
per ordinary share (cents) (2.8) 5.9 9.0
Weighted number of shares
in issue (millions) 86.1 86.1 86.1
Number of shares in issue (millions) 88.2 86.1 86.1
Note: Goodwill paid in the acquisition of the associate company is being
amortised from 1 September 2000 over 20 years.
GROUP CASH FLOW STATEMENT
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
28 Feb 2001 29 Feb 2000 31 Aug 2000
R'000 R'000 R'000
Cash flows from operating activities 108 (9 893) (2 097)
Cash receipts from customers 66 394 38 607 85 074
Cash paid to suppliers & employees (64 342) (46 534) (84 542)
Cash generated from operations 2 052 (7 927) 532
Interest received 38 225 664
Interest paid (571) (116) (815)
Tax paid (1 411) (2 075) (2 478)
Cash flows from investing activities (1 103) (2 037) (7 097)
Additions to fixed assets (1 138) (2 037) (4 209)
Proceeds on the sale of assets 35 - 348
Acquisition of subsidiaries
net of cash required - - (3 236)
Cash flow from financing activities 45 85 354
Proceeds from the issue of
share capital 6 528 - -
(Decrease) in loans payable (85) - -
Decrease in loan to the share
incentive trust 130 - -
(Decrease)/Increase in finance leases - 85 (96)
(Decrease)/Increase in amounts due
to vendors (6 528) - -
Net raising finance liabilities - - 450
Net(decrease)/increase
in cash resources (950) (11 845) (8 840)
Cash resources at beginning of period 2 325 11 165 11 165
Cash resources at the
end of the period 1 375 (680) 2 325
GROUP BALANCE SHEET
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
28 Feb 2001 29 Feb 2000 31 Aug 2000
R'000 R'000 R'000
ASSETS
Non-current assets 14 689 10 563 13 797
Plant and equipment 5 304 1 379 4 625
Investment in associate company 5 171 4 768 4 882
Deferred tax 54 126 -
Loan to share incentive trust 4 160 4 290 4 290
Current Assets 46 850 44 332 42 693
Inventories 25 293 19 370 26 248
Trade and other receivables 16 227 24 962 13 452
Cash resources 5 330 - 2 993
TOTAL ASSETS 61 539 54 895 56 490
EQUITY AND LIABILITIES
Capital and reserves 30 577 26 975 26 578
Issued Capital 9 9 9
Share premium 18 446 15 154 11 918
Accumulated profit 12 122 11 812 14 651
Non current liabilities 1 087 242 995
Interest-bearings borrowings 117 242 78
Deferred tax 970 - 917
Current liabilities 29 875 27 678 28 917
Trade and other payables 22 957 18 447 17 223
Loans payable - 3 828 6 528
Bank overdraft 3 955 680 668
Current portion of interest-bearing
borrowings 32 156
Tax 2 931 4 723 4 342
TOTAL EQUITY AND LIABILITIES 61 539 54 895 56 490
GROUP STATEMENT OF CHANGES IN EQUITY
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
28 Feb 2001 29 Feb 2000 31 Aug 2000
R'000 R'000 R'000
Share capital 9 9 9
Balance at beginning of the period 9 9 9
New shares issued during the period-
2 043 900 of 0.01c each - - -
Share premium 18 446 15 154 11 918
Balance at the beginning of the period 11 918 15 154 15 154
Premium on new shares issued during
the period 6 528 - -
Share issue expenses written off - - -
Goodwill arising on the acquisition of
subsidiaries and businesses - - (3 236)
Distributable reserves 12 122 11 812 14 651
Accumulated profits
Balance at the beginning
of the period 14 651 6 774 6 774
Net(loss)/profit for the period (2 529) 5 038 7 877
Balance at the end of the period 30 577 26 975 26 578
NATURE OF BUSINESS
Maxtec targets the expanding data storage industry through its three related
business divisions: Maxtec Peripherals, Maxtec Global Services (MGS) and
Enterprise Storage Solutions (ESS). Maxtec Peripherals distributes
storage-related hardware and software solutions through a reseller channel. MGS
and ESS provide clients with IT-enabled business infrastructures and solutions
that ensure storage reliability, data availability and maximum network
performance.
FINANCIAL RESULTS
The directors of Maxtec Limited hereby announce the interim results for the six
months ended 28 February 2001, classified under the Information Technology
sector of the JSE Securities Exchange South Africa lists.
Given a tough trading climate, the company achieved satisfactory results for
the six months ended 28 February 2001. Compared to the six-month period ended
29 February 2000, revenue grew by 49% up from R46,565 million to R69,169
million. Tightening margins impacted negatively on operating profits, declining
from R6,713 million to an operating loss of R2,285 million.
A headline loss of R2,429 million culminated in a loss of 2.8 cents per share.
The company's financial performance has been affected by restructuring
undertaken to improve resource utilisation during the latter part of 2000, as
well as the absorption of certain acquisition costs.
Other aggravating factors included margin pressure imposed by hardware vendors
in an effort to grow their local market share. This will be alleviated as the
Maxtec Group adopts a more direct marketing approach in interfacing with its
customers.
The Maxtec Global Services division servicing local authorities recorded poor
software sales up to and until the local government elections in early
December, with IT expenditure only now being committed.
It is evident from recent business and prospects that the need for data storage
consolidation within enterprises has become essential in order to protect
investment and limit total cost of ownership. Furthermore users have become
painfully aware that achievement of this requires special skills available from
a limited number of providers, Maxtec has ensured that it is in a position to
maximize this opportunity.
Sales turnover driven by increased corporate and government spending on
enterprise storage has been improving steadily over the recent quarter.
UK Storage Area Network specialist, Sagitta Performance Systems, in which
Maxtec holds a 20% stake, continues to perform well.
PROSPECTS
Business fundamentals overall have improved across the group since December
last year, with turnover up 50% on the March - August 2000 trading period, and
without a commensurate increase in staff.
The continued restructuring process that the group has undergone has started to
show results in the second quarter of this financial year. The group's
investment in intellectual capital and skills has positioned it to take full
advantage of the IT industries shift from a product centric to a solution based
model with clients increasingly looking at the value proposition of their
requirement. The group forecasts to return to profitability by year-end, having
recouped the loss recorded during the interim period.
DIVIDENDS
No dividends have been declared.
STRATE
Maxtec Limited has been notified by the JSE Securities Exchange that the
company's share capital will be transferred to the electronics STRATE ("Share
Transactions Totally Electronic") environment as from 30 April 2001. This is
the date from which investors' shares will be converted into an electronic
record in order to become eligible to settle in the STRATE environment.
CHILLI BUSH 253465
On behalf of the board
LGB Talbot WPP Hutton
(Executive Chairman) (Executive Director)
20 April 2001
By order of the board
AC Wilson CA(SA)
(Group Financial Director)
Registered Address Transfer Secretaries
1 - 8th Avenue Computershare Services Ltd
Rivonia 4th Floor, Edura House, 41 Fox Street
Sandton Johannesburg, 2001
PO Box 69938, Bryanston, 2021 PO Box 62931, Marshalltown, 2107
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