| Thu 3 May 2001, 0:00 | | Fintech Limited - Results |
|
Fintech Limited
(Incorporated in the Republic of South Africa)
(Registration number 1969/010524/06)
Audited financial results and dividend declaration for the year ended
28 February 2001
Income statement
2001 2000
Figures Continuing Discontinued Continuing Discontinued
in R000 operations operations Total operations operations Total
Revenue 177 253 1 348 596 1 525 849 116 757 1 344 836 1 461 593
Operating
income 57 097 91 841 148 938 51 358 117 751 169 109
Amortisation
of
goodwill (1 263) (13 576) (14 839) - - -
Interest
paid
to outside
shareholders - (2 764) (2 764) - (5 277) (5 277)
Exceptional
items - 180 177 180 177 - (4 011) (4 011)
Income
before
taxation 55 834 255 678 311 512 51 358 108 463 159 821
Taxation 8 514 17 756 26 270 10 716 29 699 40 415
47 320 237 922 285 242 40 642 78 764 119 406
Attributable
to
outside
shareholders 2 224 28 238 30 462 - 20 615 20 615
Attributable
to
ordinary
shareholders 45 096 209 684 254 780 40 642 58 149 98 791
Weighted
average
number of
ordinary
shares
in issue
for year
(000) - - 125 548 - - 125 024
Basic
earnings
per
share
(cents) 35.9 167.0 202.9 32.5 46.5 79.0
Headline
earnings
per share
(cents) 36.9 34.3 71.2 32.5 49.3 81.8
Dividend
In specie
per share
from
unbundling
of investment
in Bytes
Technology
Group
Limited
(cents) - - 379.3 - - -
Final
dividend
per
share
(cents) - - 10.0 - - 27.0
Notes
1. Exceptional
items
Net surplus
on
disposal
of subsidiaries
and businesses - 180 177 180 177 - 3 200 3 200
Losses incurred
on
discontinued
operations,
activities,
agencies
and product
lines - - - - (7 211) (7 211)
- 180 177 180 177 - (4 011) (4 011)
2. Headline
earnings
Attributable
earnings
is reconciled
to
headline
earnings as
follows:
Attributable
earnings 45 096 209 684 254 780 40 642 58 149 98 791
Goodwill
amortised 1 263 13 576 14 839 - - -
Gross
exceptional
items - (180 177) (180 177) - 4 011 4 011
Tax on
exceptional
items - - - - (2 163) (2 163)
Attributable
to
outside
shareholders - - - - 1 600 1 600
Headline
earnings 46 359 43 083 89 442 40 642 61 597 102 239
3. Diluted earnings per share
Diluted earnings per share are not materially different from basic earnings per
share.
4. The financial information set out in this preliminary report has been
audited by KPMG Inc. and their unqualified report will be included in the
annual financial statements.
Balance sheet
Figures in R000 2001 2000
Assets
Non-current assets 855 791 705 261
Fixed assets 3 966 62 106
Advances to rental finance customers 845 792 623 979
Investments and loans - 7 840
Deferred taxation 6 033 11 336
Current assets 166 915 612 859
Inventories 1 951 163 971
Accounts receivable 138 467 268 236
Net cash and cash equivalents 26 497 180 652
Total assets 1 022 706 1 318 120
Equity and liabilities
Ordinary shareholders' equity 152 203 386 227
Outside shareholders' interests 18 028 61 558
Non-current liabilities 621 498 488 696
Long-term liabilities 585 681 455 048
Deferred taxation 35 817 33 648
Current liabilities 230 977 381 639
Short-term borrowings 138 202 -
Other current liabilities 92 775 381 639
Total equity and liabilities 1 022 706 1 318 120
Shares in issue at end of period (000) 125 666 124 625
Net asset value per share (cents) 121.1 309.9
Statement of changes in equity
Figures in R000 2001 2000
Ordinary shareholders' interests
at beginning of year 386 227 322 655
Share issues 177 632
Attributable earnings 254 780 98 791
Ordinary dividend (12 567) (33 971)
Unbundling of group's interest
in Bytes Technology Group Limited (476 414) -
- unbundling dividend (242 119) -
- reduction in share premium account (234 295) -
Other movements - (1 880)
Ordinary shareholders' interests at end of year 152 203 386 227
Summarised cash flow statement
Figures in R000 2001 2000
Operating activities 64 380 26 080
Cash generated by operations 163 545 113 523
Interest paid to outside shareholders (2 764) (5 277)
Taxation (63 958) (49 709)
96 823 58 537
Net dividends paid (32 443) (32 457)
Investing activities (252 125) (40 124)
Acquisition of interests in
subsidiaries and operations (213 730) (8 680)
Disposal of subsidiaries and operations (52 915) -
Net other investing activities 14 520 (31 444)
Financing activities (104 612) 123 562
Long-term liabilities 131 699 262 734
Advances to rental finance customers (221 813) (129 804)
Outside shareholders' loans (14 675) (10 000)
Share issues 177 632
Net funds (utilised)/generated
- (utilised)/generated in year (292 357) 109 518
- at beginning of year 180 652 71 134
- (net borrowings)/cash and cash equivalents
at end of year (111 705) 180 652
Unaudited pro-forma highlights on ongoing operations
Year ended Year ended Year ended Year ended
Figures in February February February February
R000 2001 2000 1999 1998
Revenue
- finance
charges
earned 133 145 116 757 120 740 115 570
- other
revenue 44 108 - - -
177 253 116 757 120 740 115 570
Operating
income 55 834 51 358 54 942 47 509
Attributable
earnings 45 096 40 642 41 049 33 817
Basic earnings
per share (cents) 35.9 32.5 33.0 27.6
Headline earnings
per share (cents) 36.9 32.5 33.0 27.6
Net asset value
per share (cents) 121.1 95.3 71.8 47.9
Message to stakeholders
The year ended 28 February 2001 has been one of the most significant in the
group's history with its transformation from an Information Technology group,
dependent largely on the IT and telecom products and services developed around
Xerox, NCR and Alcatel technologies, into a focused and niche based financial
services group.
By the end of the financial year Fintech had completed this restructuring
programme, which involved the sale of all the Group's non-financial services
operations. As part of this restructuring Xerox South Africa, National Data
Systems and Alcatel Business Systems were sold to the Bytes Technology Group
("BTG") (formerly USKO) for an aggregate consideration of 2 666 666 667 shares
in BTG and R30 million cash. Two smaller non-core companies in the group have
also been disposed of for a consideration of R18 million. Of this amount
R11 million was paid concurrently with the sale and the remaining R7 million
payment was deferred.
Prior to the year end all the group's shareholding in BTG, consisting of the
shares acquired from the sale of the businesses referred to above together with
the shares received from underwriting the BTG rights offer, were distributed to
Fintech shareholders in the ratio of 25.28 BTG shares for each Fintech share
held. This distribution of approximately 3.18 billion shares was valued at some
R476 million.
Financial Services which forms the continuing operations had a good year with
capital financed increasing from R624 million in February 2000 to R846 million
by February 2001, an increase of 36%. Operating income improved by 20% before
accounting for the increased cost of centre debt. The acquisitions during the
year of 50% of Spartan Computer Rentals (Pty) Limited from Denel and of other
small rental books have proved excellent investments. The full benefit of these
acquisitions will be felt in 2002.
Increased interest expenses were incurred as a result of the acquisition of
Spicer Specialised Services (R75 million) and the take up of Fintech's
entitlement to the BTG rights offer (R101 million) during the year.
Discontinued operations include all the remaining Fintech businesses disposed
of by year end.
The Document Management Group performed admirably with total revenues
increasing by 13% to R704 million and net income increasing by 43% to
R73.2 million.
Information Technology and Communications, however, continued to disappoint
with the company, in line with most of its competitors, which saw little
improvement in the sales of its range of IT and telecom products. The decline
was in large part attributable to a decline in sales of Automatic Teller
Machines (ATM's) by National Data Systems to the retail banking sector.
Revenues for the year were R645 million (9% decline) and operating income R13.5
million (67% decline).
Financial
Headline earnings per share from continuing operations increased by 13.5% to
36.9 cents (1999/2000 - 32.5 cents) whilst the net asset value per share
attributable to continuing operations was 121.1 cents (1999/2000 - 95.3 cents),
an increase of 27.1%.
Prospects
With the excellent growth in capital financed over the last two years and the
likelihood of a fairly stable interest rate environment, solid growth is
expected from Fintech in 2001/2. In addition to forecast growth in the
financing of Altron Group products, Fintech also plans to substantially expand
its financing of products and services from other sources. Some success in this
endeavour has already been achieved.
Ordinary dividend No. 36
Notice is hereby given that dividend No. 36 of 10 cents per share has been
declared by the directors in respect of the year ended 28 February 2001. This
dividend is payable on or about Friday 8 June 2001 to ordinary shareholders
registered in the books of the company on Friday 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.
Further cautionary announcement
Shareholders are referred to the cautionary announcement published in the press
on 9 April 2001 and are advised that discussions are still in progress which
could have a material effect on the price of Fintech's shares. Accordingly
shareholders are advised to continue exercising caution when dealing in their
Fintech shares until a full announcement has been made.
On behalf of the board
David Redshaw Ian Pennel John Mills
Chairman Chief Executive Officer Group Financial Director
4 May 2001
Directors:
PD Redshaw (Chairman) (British), IP Pennel (Chief Executive Officer),
HJ Borkum, JGS Mills (USA), GM Rochussen, RE Venter, PL Wilmot
These results are available on the Internet at http://www.fintech.co.za
A MEMBER OF THE ALTRON GROUP
