| Wed 25 Apr 2001, 0:00 | | Datacentrix - Results For The Year Ended 28 Februa |
|
DATACENTRIX HOLDINGS LIMITED
THE INTELLIGENT SOLUTION!
RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2001
- Turnover increased by 59% to R394 million
- Operational performance (EBITDA)increased by 54% to R30,6 million (excluding
e-business) and by 22% to R24,3 million (including e-business)
- Headline earnings per share increased by 20% to 13,2 cents (excluding
e-business) and by 3% to 11,3 cents (including e-business)
- Cash on hand of R45 million with no interest bearing debt
Consolidated Income Statement
Excluding
Group E-business e-business Group
year ended year ended year ended year ended
Feb 2001 Feb 2001 Feb 2001 Feb 2000
R000's R000's R000's R000's
Turnover 394 064 228 393 836 248 437
Operating income before
interest, taxation,
depreciation and
amortisation (EBITDA) 24 298 (6 325) 30 623 19 936
Depreciation (1 467) (54) (1 413) (794)
Investment written off (850) - (850) -
Goodwill amortised (1 700) - (1 700) -
Operating income before
interest and taxation
(EBIT) 20 281 (6 379) 26 660 19 142
Net interest received 1 699 270 1 429 4 493
Income before taxation 21 980 (6 109) 28 089 23 635
Taxation (7 503) 1 802 (9 305) (6 101)
Net income after
taxation 14 477 (4 307) 18 784 17 534
Outside shareholders'
interest 1 292 1 292 - -
Earnings attributable to
ordinary shareholders 15 769 (3 015) 18 784 17 534
Retained income at
beginning of the year 30 057 - 30 057 12 523
Retained income at end
of the year 45 826 (3 015) 48 841 30 057
Headline and diluted
headline earnings per
share in cents 11,3 (1,9) 13,2 11,0
Weighted average number
of shares in issue
('000) 161 765 161 765 161 765 159 174
Consolidated Balance Sheet
Group Group
year ended year ended
Feb 2001 Feb 2000
R000's R000's
ASSETS
Non-current assets
Fixed assets: e-business 21 854 19 885
Fixed assets: other businesses 6 696 2 533
Deferred tax 6 745 4 698
Investments and loans 9 590 6 114
Intangible assets 21 610 -
66 495 33 230
Current assets
Inventories 6 467 2 034
Accounts receivable 68 350 50 024
Bank balances and cash 45 089 50 427
119 906 102 485
Total assets 186 401 135 715
EQUITY AND LIABILITIES
Capital and reserves
Share capital and premium 7 099 2 003
Non distributable reserve 7 105 706
Acquisition consideration: shares
due to vendors 12 249 14 690
Retained earnings 45 826 30 057
72 279 47 456
Minority interest and outside
shareholders' loan 5 749 3 761
Non-current liabilities
Acquisition consideration: long term
cash due to vendors 9 125 6 775
Long term liabilities 249 448
Current liabilities
Accounts payable: e-business
outside shareholders 14 995 15 443
Accounts payable: other businesses 69 894 48 853
Acquisition consideration: short
term cash due to vendors 9 300 6 775
Taxation 4 810 6 204
98 999 77 275
Total equity and liabilities 186 401 135 715
Net asset value per share (cents) 45 30
Tangible net asset value per share (cents) 31 30
Number of shares in issue ('000) 161 830 159 287
Consolidated Cash Flow Statement
Group Group
year ended year ended
Feb 2001 Feb 2000
R000's R000's
Net cash inflow from operating
activities: other business 19 908 35 219
Net cash outflow from operating
activities: e-business (6 080) -
Net cash outflow from
investing activities (34 361) (23 325)
Net cash inflow/(outflow) from
financing activities 15 195 (6 080)
Net (decrease)/increase in cash
and cash equivalents (5 338) 5 814
Cash and cash equivalents at the
beginning of the period 50 427 44 613
CASH AND CASH EQUIVALENTS AT
THE END OF THE PERIOD 45 089 50 427
COMMENTS
Nature of business
The Group's major activities comprise the supply, integration and optimisation
of IT-infrastructure, business solutions, e-business solutions and related
services to enterprise South Africa.
Commentary
We present Datacentrix's third set of solid annual results since listing on the
JSE main board in September 1998.
The results have been split into e-business and other businesses. The
e-business figures relate to the Group's joint venture, Commerce Centre of
Southern Africa (Pty) Ltd, which had no prior year activity.
Compared to the corresponding prior year results:
Turnover increased by 59% to R394 million.
Operational performance (EBITDA) increased by 54% to R30,6 million (excluding
e-business) and by 22% to R24,3 million (including e-business).
Headline earnings per share increased by 20% to 13,2 cents (excluding
e-business) and by 3% to 11,3 cents (including e-business).
EBITDA margin (excluding e-business) of 7,8% (prior year 8,0%) was achieved.
Taxation has been provided for at an effective rate of 34%, in the prior year
it was 26% due to the utilisation of an assessed loss in a subsidiary. In order
to improve focus, E-Centrix, a venture capital fund that the Group had intended
to set up as a joint venture, was terminated, resulting in R0,85 million being
written off.
Diligent asset management and financial controls have resulted in a cash
balance of R45 million at year end. This cash balance takes into account
significant investments made during the year. The Group has no interest bearing
debt.
Infrastructure: supply, integration, optimisation and related services
This focus area continues to be the largest contributor to the Group. Contracts
have been secured for the supply and related services from corporate customers
that will produce revenue in excess of R200 million per annum for the
forseeable future.
Our unique top rated accreditation and position as warranty services partner
for Compaq, HP and IBM makes us the partner of choice for the supply and
maintenance of enterprise infrastructure requirements.
Datacentrix's success in server-centric storage solutions has evolved into the
enterprise storage marketplace where we provide storage area networks solutions
from the leading vendors. Our skills and resources in this area have been
pooled into a dedicated business unit from which we expect significant growth.
We have been particularly successful in the area of document and data
management in the SAP R/3 environment.
Business Solutions
The Business Solutions unit offers hosted services and the consulting, supply
and implementation of business applications for the Microsoft platform.
During the year the division was strengthened by the awarding of a five-year
R98 million contract with Genfood.
This business unit employs a sizeable skills base focusing on hosted
application services, managed infrastructure, financial systems and data
mining.
Business Solutions will be a high growth area going forward, which will include
acquisitions of skills to complement our existing offering.
We have strengthened our skills base by acquiring Style Props (Pty) Ltd on 1
September 2000 for a consideration of R14 million. The acquisition was
underpinned by profit warranties over a five year period and has been
successfully integrated into Business Solutions.
E-business
Datacentrix holds a 70% investment in Commerce Centre, with the other 30% being
held by international solution providers, Sterling Commerce Inc and ParaRede SA
As per our announcement of 25 January 2000, we only expect Commerce Centre to
be profitable by financial year 2003. We are on track to achieve this
objective.
Significant progress has been made with the roll-out of a national product data
catalogue for the Retail FMCG industry which has started producing revenue
which will be reflected in the forthcoming financial year.
An enterprise pilot project has also been completed for the leading player in
the heavy engineering industry.
During the next financial year, an e-business consulting arm will be
established.
Datacentrix's share of the total investment in Commerce Centre was R16,4
million at year end.
Future prospects
With the significant growth initiatives identified in our infrastructure
business and the establishment of the new growth divisions of Business
Solutions and E-business, Datacentrix has successfully implemented its growth
strategy and remains poised to make judicious and opportune acquisitions in the
business solutions industry.
We are positive that growth will continue in the next financial year.
We expect the shakeout and consolidation in the IT industry to accelerate and
are extremely well positioned to take advantage of this.
STRATE
The company, as part of the JSE initiative to move to an electronic settlement
environment for share transactions, moved onto the STRATE system on 26 March
2001.
Dividends
As per Group policy, no dividend has been declared or paid. The directors
believe that the cash resources can be best employed within the Group to fund
organic and/or acquisitive growth.
For and on behalf of the board
Gary Morolo
Chairman
Gerhard Uys
Chief Executive Officer
Pretoria
24 April 2001
Directors: Gary Morolo* (Chairman), Gerhard Uys, Klaas Lammers, Leon Theron,
Sam Nematswerani*, Joan Joffe*. *Non-executive.
Registered Office: Sanwood Park Block 7, 379 Queens Crescent, Lynnwood,
Pretoria. PO Box 74415, Lynnwood Ridge, Pretoria, 0040.
Transfer Secretaries: Mercantile Registrars Limited, 11 Diagonal Street,
Johannesburg 2001.
www.datacentrix.co.za
