| Wed 25 Apr 2001, 0:00 | | Ist - Audited Results For The Year Ended 28 Februa |
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IST GROUP LIMITED
AUDITED RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2001
Improved earnings forecast met as recovery continues
Fully diluted basic EPS increased by 262% to 6 cents
Dividend payment resumed
Further steady turnover and profit growth expected
CONSOLIDATED INCOME STATEMENT
YEAR ENDED YEAR ENDED
28 FEBRUARY 29 FEBRUARY
R 2001 % CHANGE 2000
Turnover 213 703 752 212 692 727
- from continuing
operations 202 301 875 +18 171 138 806
- from discontinued
operations 11 401 877 41 553 921
Operating profit 21 885 798 +138 9 195 743
- from continuing
operations 27 376 130 21 128 657
- from discontinued
operations (5 490 332) (11 932 914)
Depreciation (4 889 284) (5 586 503)
Retrenchments and
restructuring
costs (3 261 281) -
Capital loss on sale
of discontinued
operation (214 335) (1 029 201)
Interest 2 989 640 1 268 804
Profit from associates 392 723 140 431
Profit before
taxation 16 903 261 +324 3 989 274
Taxation (6 193 312) (2 161 341)
Profit after
taxation 10 709 949 +486 1 827 933
Minority interest (259 924) 329 609
Net profit 10 450 025 +384 2 157 542
Headline earnings
per share (cents)
- Basic 8.0 +201 2.7
Headline earnings
per share (cents)
- Fully diluted 6.1 +130 2.7
Basic earnings
per share (cents)
- Basic 7.8 +375 1.6
Basic earnings
per share (cents)
- Fully diluted 6.0 +262 1.6
Dividend per ordinary
Share (cents) 3.0 0.0
Net asset value
per share (cents) 73 70
Tangible net asset value
per share (cents) 71 65
CONSOLIDATED BALANCE SHEET
AT AT
28 FEBRUARY 29 FEBRUARY
R 2001 2000
ASSETS
Non-current assets 45 971 910 44 400 971
Property, plant and
equipment 32 769 052 31 776 846
Intangible assets 3 128 682 7 090 061
Investment in associate 3 878 000 3 574 116
Non-current receivables 6 196 176 1 959 948
Current assets 104 437 084 98 585 721
Inventories 26 316 651 38 049 267
Trade and other
receivables 50 123 041 40 207 123
Cash and cash
equivalents 27 997 392 20 329 331
Total assets 150 408 994 142 986 692
EQUITY AND LIABILITIES
Shareholders' interest 97 362 915 94 105 307
Share capital 1 312 949 1 312 949
Share premium 85 380 717 85 380 717
Non distributable reserves - 1 137 713
Distributable reserve
- Retained income 10 669 249 6 273 928
Minority interest 344 704 595 702
Non-current liabilities 6 641 122 5 656 162
Interest bearing
borrowings 3 641 001 6 353 236
Deferred tax liabilities 3 000 121 (697 074)
Current liabilities 46 060 253 42 629 521
Trade and other payables 33 244 260 28 093 814
Advance payments 4 163 683 10 854 000
Current tax liabilities 1 740 282 1 212 087
Ordinary dividend declared 4 009 463 -
Current portion of
interest bearing
borrowings 2 902 565 2 469 620
Total equity and
liabilities 150 408 994 142 986 692
CONSOLIDATED CASH FLOW STATEMENT
YEAR ENDED YEAR ENDED
28 FEBRUARY 29 FEBRUARY
R 2001 2000
Cash available from
operating activities
Net cash flow from
Operating activities 14 464 641 (11 837 976)
Cash receipts from
customers 220 538 730 222 790 458
Cash paid to suppliers
and employees (201 566 645) (220 259 532)
Cash generated from
operating activities 18 972 085 2 530 926
Interest received 2 563 323 3 349 516
Interest paid (2 271 622) (1 954 206)
Dividends paid to
shareholders - (1 535 509)
Normal tax paid (4 799 145) (14 228 703)
Net cash flow from
investing activities (6 944 419) (17 991 024)
Purchase of property,
plant and equipment (5 534 171) (8 641 224)
Additional investment in
IST Aerospace and MMIST (448 151) -
Acquisition of subsidiaries,
net of cash acquired - (5 777 445)
Investment in associate 88 839 (3 433 685)
Decrease in non-current
receivables 710 833 -
Proceeds from sale of assets 918 542 54 545
Loans made - 220 516
Disposal of subsidiary,
net of cash disposed (2 680 311) (413 731)
Net cash flow from
financing activities (2 279 290) 2 219 770
(Repayments)/proceeds
from long-term
borrowings (2 279 290) 2 219 770
Net increase in cash
and cash equivalents 5 240 932 (27 609 230)
Effects of exchange rate
differences 2 427 129 (21 722)
7 668 061 (27 630 952)
Cash at the beginning of
the period 20 329 331 47 960 283
Cash at the end of
period 27 997 392 20 329 331
REVIEW OF RESULTS
The performance turnaround signalled at the interim stage was sustained in the
latter half of the year, and the group has met its earnings forecast of 6 cents
per fully diluted share (2000: 1.6 cents). The factors which contributed to
this recovery are the appointment of the Coronation FRM turnaround team in May
2000; the development and implementation of new strategies at the corporate as
well as the operational level; the restructuring of the group in line with this
new focus; and the disposal or reorganisation of loss-making businesses.
Turnover from continuing operations increased by 18% to R202.3 million and
operating profit by 28% to R27.4 million. Net cash flow from operating
activities was R14.5 million against a negative of R11.8 million in the
previous year. The two discontinued operations made a combined loss of R5.5
million; related restructuring and retrenchment costs came to R3.3 million.
The group's balance sheet remained strong and debt-free.
REVIEW OF OPERATIONS
The creditable results of the past year are a reflection not only of the
effective turnaround effort but also of the inherent soundness of the group's
continuing businesses, all of which did well during this period.
IST Dynamics secured substantial new orders in Europe and the Middle East and
now derives 80% of its income from offshore sales.
IST Telecom won a major contract in conjunction with IST Data to supply Telkom
with the Smallworld integrated network planning system.
IST Energy is successfully completing the R45.5 million Swaziland Electricity
Board turnkey project, confirming its world-class capabilities.
IST Otokon's energy management systems now log more than 10% of South Africa's
total Eskom - generated electricity consumption.
IST Industrial won tenders for the design of three critical subsystems of the
Pebble Bed Modular Reactor against international competition.
All these divisions have clear and measurable plans for sustainable growth in
the year ahead and beyond.
MANAGEMENT
Harry Coetzee was appointed as chief executive officer with effect from 19
March 2001. Lindsay Robertson of Coronation FRM, who acted as interim chief
executive since May 2000, has been appointed deputy chairman. Hannes Visagie,
Etienne Toerien and Kobus Steyn have joined the board as executive directors as
of 24 April 2001.
DIVIDEND
The directors have resolved to issue capitalisation shares to ordinary
shareholders registered as such on 18 May 2001 provided that shareholders may
elect instead, to receive a cash alternative of 3.0 cents per ordinary share.
The cash conserved will be utilised for further expansion and to grow current
operations. Circulars and forms of election will be posted to shareholders on
or about 25 May 2001 and the last day for lodging forms of election will be
14h00 on 15 June 2001.
PROSPECTS
While the rebuilding process is not yet complete, the board is confident that
the group is now capable of sustaining steady turnover and profit growth into
the future. The group forecast that the earnings for 2002 will exceed 10 cents
per share.
Gary Morolo Harry Coetzee
Chairman Chief Executive Officer
Pretoria
25 April 2001
IST GROUP LIMITED * REG NO 1998/11521/06 * IST
TRANSFER SECRETARIES
MERCANTILE REGISTRARS LIMITED,
11 DIAGONAL STREET, JOHANNESBURG 2001
REGISTERED OFFICE
IST BUILDING, 221 GARSTFONTEIN ROAD, MENLYN,
PRETORIA 0145
TEL: (012) 348 8705, FAX: (012) 348 9472,
E-MAIL: ist@ist.co.za
www.istltd.com
STAKEHOLDER AND MEDIA RELATIONS
FOR FURTHER INFORMATION CONTACT KATHY DU PLESSIS AT:
TEL: (011) 728 4701, FAX: (011) 728 2547,
E-MAIL: ist@dpapr.com
PERFORMANCE RECOVERY SUSTAINED AS IST POSTS STRONG RESULTS
PRESS RELEASE
Pretoria, 25 April 2001 - Technology group IST, which has been on the
turnaround track since the middle of last year, today reported continued
progress with substantially improved results for the 12 months to February.
Net profit for the year climbed to R10.4 million from the R2.2 million level of
2000 and fully diluted basic earnings per share rose to 6 cents from the
previous year's 1.6 cents. Turnover from continuing operations increased by
18% to R202.3 million and operating profit by 28% to R27.4 million. Net cash
flow from operating activities was R14.5 million against a negative of
R11.8 million the previous year. Since-discontinued operations made a loss of
R5.5 million during the year and related retrenchment and restructuring costs
came to R3.3 million. Dividend payment was resumed with a capitalisation
issue with a 3 cents per share cash alternative. The company said it intended
to conserve cash for future growth.
The recovery process was initiated in March last year after IST's earnings had
slumped in the year to February 2000. Turnaround specialists Coronation FRM
were retained to restrategise, refocus and restructure the group. The group's
loss-making offshore businesses were subsequently sold, the IST Solutions
division was disbanded and its troubled Petroman system put back on a sound
footing by a new team.
New chief executive Harry Coetzee said today the past year's results reflected
not only an effective turnaround effort but also the inherent soundness of the
group's continuing businesses, all of which had contributed to the strong
earnings improvement.
"In a generally challenging year, the group's businesses succeeded in securing
substantial new orders, expanding their product ranges, maintaining their
strong positions in traditional markets and extending their reach to new
sectors in South Africa and beyond," Coetzee said.
He noted that defence equipment supplier IST Dynamics had won new orders in
Europe and the Middle East and now derived 80% of its income from offshore
sales, while IST Telecom had gained a multi-million rand contract in
conjunction with IST Data to equip Telkom with the Smallworld integrated
network planning system. IST Energy is in the process of successfully
completing the R45.5 million Swaziland Electricity Board turnkey project,
confirming its world-class capabilities, and IST Industrial had been awarded
tenders for the design of three critical subsystems of the Pebble Bed Modular
Reactor against international competition.
"The rebuilding process is far from complete and we still have a long way to go
before IST's full earnings potential is realised. We are confident, however,
that a secure foundation has now been laid for IST's future growth. The group
has a robust, debt-free balance sheet, valuable property portfolio and other
assets. Its five divisions are all in good shape: well-managed, generating
cash, and clearly focused on dominating their target markets. At the group
level, our focus is on new products and markets, possible acquisitions, and
such issues as cash management. The group will also concentrate on increasing
its annuity-based income, which has been growing steadily. Against this
background, we believe that IST will achieve a further significant increase in
earnings in the 12 months to February 2002 and steady growth in turnover and
profit in the years beyond," Coetzee said.
Issued by du Plessis Associates on behalf of IST Group.
dPA contact : Kathy du Plessis on tel :011-728-4701
mobile : 083 266 5847 or e-mail : ist@dpapr.com
