| Mon 23 Apr 2001, 0:00 | | Allied Technologies - Audited Consolidated Financi |
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Allied Technologies Limited
(Incorporated in the Republic of South Africa)
(Registration number 1946/020415/06)
* Headline Earnings per share increased by 45,5%
* Revenue increased by 21%
* Operating Income increased by 32%
* Return on Equity increased to 34,9%
* Special dividend declared
Audited consolidated financial results and dividend declaration for the year
ended 28 February 2001
Income statement
Figures in R000
Year Year
ended ended
28 February 29 February
2001 2000
Revenue 3,690,851 3,058,585
Operating income 284,431 215,535
Amortisation of goodwill (12,354) -
Dividend income 12,984 8,506
Net interest income 38,501 61,134
Exceptional items (Note 1) (13,567) -
Income before taxation 309,995 285,175
Taxation 90,520 96,738
Income after taxation 219,475 188,437
Attributable to outside shareholders (11,538) (28,595)
Attributable earnings 207,937 159,842
Basic earnings per share (cents) 198.4 153.3
Headline earnings per share (cents) 223.1 153.3
Dividends per share (cents)
- Ordinary 80.0 66.0
- Special 20.0 -
Weighted average ordinary number of shares
in issue (000) 104,800 104,238
Notes:
1. Exceptional items
Net loss arising on disposal and closure
in terms of group restructuring (13,567) -
2. Reconciliation between earnings and
headline earnings
Attributable earnings 207,937 159,842
Amortisation of goodwill 12,354 -
Net loss arising on disposal and closure
in terms of group restructuring 13,567 -
Headline earnings 233,858 159,842
3. The group changed its accounting policies for land and buildings and
goodwill.
Previous revaluations of land and buildings of R22.1 million were reversed.
The accounting policies and methods of computation followed in this report are
consistent with statements of Generally Accepted Accounting Practice.
4. It is group policy for the annual dividend to be declared after the end of
the financial year.
5. Diluted earnings per share and diluted headline earnings per share are not
materially different from basic earnings per share and headline earnings per
share respectively.
Balance sheet
Figures in R000 28 February 29 February
2001 2000
Assets
Non-current assets 470,673 215,414
Fixed assets 136,420 130,434
Goodwill 54,654 -
Investments and loans 261,223 63,088
Deferred taxation 18,376 21,892
Current assets 1,306,730 1,357,759
Inventories 309,933 379,038
Accounts receivable 469,789 446,407
Net cash and cash equivalents 527,008 532,314
Total assets 1,777,403 1,573,173
Equity and liabilities
Capital and reserves 669,438 567,332
Outside shareholders' interest 167,482 225,968
Deferred taxation 9,185 9,562
Current liabilities 931,298 770,311
Total equity and liabilities 1,777,403 1,573,173
Net asset value per share (cents) 638 543
Ordinary shares in issue at
end of period (000) 104,959 104,448
Statement of changes in equity
Figures in R000
Year ended Year ended
28 February 28 February
2001 2000
Balance at start of period 567,332 742,469
Issue of share capital 2,817 2,582
Attributable earnings 207,937 159,842
Dividends (105,133) (69,076)
Net gains and losses not recognised
in the income statement (3,515) (268,485)
Reversal of revaluation of property - (8,827)
Goodwill on acquisition - (259,465)
Other movements (3,515) (193)
Balance at end of period 669,438 567,332
Cash flow statement
Figures in R000
Year ended Year ended
28 February 29 February
2001 2000
Operating activities 325,626 167,720
Cash generated by operations 329,014 233,399
Investment income 51,485 69,640
Changes in working capital 119,035 179,974
Taxation paid (84,366) (185,509)
Cash available from
operating activities 415,168 297,504
Dividends paid, including to
outside shareholders (89,542) (129,784)
Investing activities (330,939) (300,360)
Financing activities 7 (10,238)
Net funds generated / (utilised) (5,306) (142,878)
Cash and cash equivalents
- at beginning of period 532,314 675,192
- at end of period 527,008 532,314
Operational contribution
Figures in R000
Year ended Year ended
28 February 29 February
2001 % 2000 %
Revenue:
Telecommunication division 2,322,384 62.9% 2,057,867 67.3%
Electronics division 1,502,523 40.7% 998,848 32.7%
Information technology division 192,650 5.2% 164,877 5.4%
Inter group sales (326,706) -8.9% (163,007) -5.3%
3,690,851 100.0% 3,058,585 100.0%
Operating income
Telecommunication division 139,340 49.0% 135,475 62.9%
Electronics division 115,232 40.5% 52,718 24.5%
Information technology division 20,317 7.1% 19,448 9.0%
Corporate net income 9,542 3.4% 7,894 3.7%
284,431 100.0% 215,535 100.0%
Message to our shareholders:
Altech's strategy of globalisation and Telecommunications, Multi-Media and
Technology (IT) ("TMT") convergence has enabled the group to once again post an
excellent set of year-end results, for the fifth consecutive year, despite
growing global economic uncertainty.
Revenue increased by 21 percent to R3,7 billion and operating income of R284
million was 32 percent higher than the previous financial year. Headline
earnings per share increased by 45,5 percent from 153,3 cents per share to
223,1 cents per share.
The balance sheet remains strong with cash and cash equivalents in excess of R
500 million and a return on equity of 34,9 percent.
GROUP HIGHLIGHTS.
Telecommunication Division
Autopage Cellular and Netstar are leaders in their respective industries and
have both contributed substantially to group results.
Autopage Cellular performed exceptionally well within the cellular industry
during the year, growing the base to more than 400 000 subscribers. This
compares with 330 000 for the previous reporting year. A highlight of the
year, which is a result of our TMT thrust, was the implementation of a
partnership with ABSA to distribute pre-paid cellular vouchers electronically
to 25 000 points-of-sale.
Autopage Cellular has retained its position as Southern Africa's largest dual
independent Service Provider.
Netstar has maintained its dominant position in southern Africa's rapidly
growing stolen vehicle tracking and recovery market. Real growth of 40% in its
subscriber base has been achieved and in excess of 100 000 vehicles, with an
approximate value of R12 billion, are currently being protected.
Alcatel Altech Telecoms continues to be a leader in the South African
telecommunications market and our joint venture partner, Alcatel, is an
international giant in the industry. New solutions being offered cater
particularly for convergence within the TMT sector, which, again, are in line
with Altech's overall strategy.
Electronics Division
The Electronics Division again delivered a superb performance for the year
under review with UEC Multi-Media (UEC) remaining the major contributor. This
multi-media operation, that focuses on the design and development of software
and the design and manufacture of digital set-top-boxes for the satellite
markets, has also expanded into the cable and terrestrial multi-media markets.
To meet international demand the UEC facility in Kwazulu Natal doubled in size
and a further R12 million was invested in advanced equipment for an additional
surface mount assembly line. This resulted in an increased overall production
capacity of 40%. Also, the activities in Australia were expanded to increase
research and development capabilities.
An exciting new subsidiary company, MediaVerge, has been established to focus
on the development of advanced interactive television applications. This
company, with a core TMT convergence strategy, currently employs 22 software
engineers. MediaVerge gives UEC the additional ability to provide customers
with value-added solutions that suit their specific requirements.
During the year under review the group announced plans to list UEC on the JSE
Securities Exchange South Africa, with a secondary listing planned later in
London. However, Altech decided to postpone UEC's listing when it became clear
that local and international market conditions in the TMT sector were showing
signs of weakness. Meanwhile, the directors continue to assess the listing
proposal and its timing.
Alcom Systems is currently installing a digital Terrestrial Trunked Radio
system in conjunction with its partner Motorola, for the Cape Metropolitan
Council. This R60 million order is the first ever on the African continent.
STC Frequency Technology remains the largest manufacturer and distributor of
frequency control products on the African continent and continues to generate
excellent returns. The company will increase its focus on exports during this
year.
Arrow Altech Distribution, having completed a restructuring programme after
recording a loss during the previous financial year, is now profitable with a
strong order book. Its new inventory management system has greatly improved
customer service with its e-commerce capability.
Information Technology Division.
ISIS Information Systems, together with Altech subsidiary Keops Isis and in
consortium with Deloitte Consulting, completed the development of software for
the Mozal project. During the year under review and, in a major recent
development in conjunction with its French partner Syseca, Isis is to supply,
install and commission an Aeronautical Information Services System for the Air
Traffic and Navigations Services Company.
Keops Isis, will forthwith participate in global projects with Air Liquide and
Keops (Canada). The company has also initiated an internal development project
utilising Radio Frequency Identification technology supplied by sister company
Arrow Altech. This will create a value-added solution to clients by providing
access and asset control through the utilisation of this emerging technology.
Altech Smart Card Technologies (ASCT) has significantly expanded its operations
into smart card solutions where its unique focus also matches the Altech
group's TMT convergence strategy. ASCT has not only maintained its leading
position in the financial services industry, but has also expanded its services
in this market. The combination of Altech's smart card capabilities via ASCT
and Africard, together with local and international associates, offers leading
business partnerships and services to companies and government. Current
projects include banks embarking on Electronic Monetary Value (EMV) smart card
roll-outs and the national smart card ID project, led by the Department of Home
Affairs.
Africard, a recent acquisition, is the dominant manufacturer of secure and
non-secure cards within South Africa. Its synergies with ASCT will ensure
Altech's dominant position in South Africa's smart card sector.
Exports
Exports continue to be a major strategic thrust, and form a vital segment of
our all important globalisation initiative. Altech's products, services and
solutions were sold to more than 30 countries worldwide with export turnover
for the year under review reaching a record level of R 485 million.
Restructuring
Altech is adopting a new corporate structure, which will entail the
reorganisation of its businesses and the possible sale of certain non-core
activities. In future Altech will consist of four focussed divisions, namely:-
* Telecommunications
* Multi-Media
* Technology (IT) and
* Electronics.
Each of these divisions form part of the new economy and offer superb
opportunities for growth. Altech's new structure is designed to meet the
challenges that must be faced in the rapidly changing markets in which it
participates and to ensure its continued leadership role.
Outlook
Despite present uncertainties in the international TMT business climate, it is
envisaged that further real growth in earnings can be expected in the 2002
financial year.
Ordinary Dividend.
The directors recommend an increased dividend, (No 58), of 80 cents (eighty
cents).
Special Dividend
In light of these exceptional results and Altech's strong cash balance, the
directors also recommend a special dividend of 20 cents (twenty cents) per
share.
Both the ordinary and special dividends are payable on or about 8 June 2001 to
ordinary shareholders registered in the books of the company on 1 June 2001.
Annual Report
The annual report and financial statements for the year ended 28 February 2001
will be posted to shareholders at the end of May 2001.
On behalf of the Board
Dr Hilton Davies Craig Venter John Carstens
Non-Executive Chairman Chief Executive Officer Financial Director
24 April 2001
These results are available on the Internet at http://www.altech.co.za
