| Tue 15 May 2001, 0:00 | | Unaudited Interim Report For The Six Mon |
|
28 FEBRUARY 2001
Group Income Statement
(Audited)
Six Six Twelve
months to months to months to
28 February 29 February 31 August
2001 2000 2000
R000 R000 R000
Investment income - - 200
Net interest (paid)/received (251) 2 619 4 112
Trading profit - 1 392 1 171
Management expenses (1 651) (1 062) (2 630)
(Loss)/profit from operations (1 902) 2 949 2 853
Fair value movements (294 734) (8 537) 611 658
Exceptional items (12 142) - -
(Loss)/profit before taxation (308 778) (5 588) 614 511
Taxation expense - 899 583
(Loss)/profit after taxation (308 778) (6 487) 613 928
(Loss)/income from associates (678) 1 526 302
Share of retained income of 374 1 526 939
associates (1 003) - (637)
Goodwill written off
(Loss)/income for the period (309 456) (4 961) 614 230
Headline (loss)/earnings per share (2,4) 3,4 2,4
(cents) (283,4) (4,7) 573,5
(Loss)/earnings per share (cents) 109 200 105 000 107 100
Weighted average number of shares
in issue (000)
Group Balance Sheet
28 February 29 February 31 August
2001 2000 2000
R000 R000 R000
ASSETS
Non-current assets
Property, plant and equipment 786 593 504
Investments in associates 10 629 26 774 39 874
Investments 435 930 39 003 718 600
Current assets 5 943 67 884 9 079
Accounts receivable 1 108 1 558 2 311
Proceeds on sale of investments 6 000 - -
Cash resources and short term loans (1 165) 66 326 6 768
TOTAL ASSETS 453 288 134 254 768 057
EQUITY AND LIABILITIES
Ordinary shareholders' interest 439 307 121 671 748 763
Non-current liabilities
Convertible debentures 13 562 10 618 13 562
Current liabilities 419 1 965 5 732
Accounts payable 419 1 965 732
Investment acquisition - - 5 000
TOTAL EQUITY AND LIABILITIES 453 288 134 254 768 057
Net asset value per share (cents) 402 116 686
Fully diluted net asset value per 386 119 650
share (cents) 109 200 105 000 109 200
Number of shares in issue (`000) 117 210 111 585 117 210
Diluted number of shares in issue
(`000)
Cash flow statements
28 February 29 February 31 August
2001 2000 2000
R000 R000 R000
Cash (outflows)/inflows from (2 996) 1 693 3 207
operating activities
Cash outflows from investing (67 439) (43 930) (52 871)
activities
Cash flows from financing 2 944 2 553 5 475
activities
Net movement in cash and cash (67 491) (39 684) (44 189)
equivalents
Statement of changes in equity
Retained
Share Share income/
Capital Premium (Accumulated Total
R'000 R'000 Loss) R'000
R'000
Balance at 1 September 2000 1 092 171 235 576 436 748 763
Net loss for the period - - (309 456) (309
456)
Balance at 28 February 2001 1 092 171 235 266 980 439 307
REVIEW OF RESULTS
During the period under review Trematon's net asset value decreased from
R749m toR439m. This translates into a net asset value per share of 402 cents
at 28 February compared with 686 cents at 31 August.
Trematon's most significant asset is its attributable shareholding of 10 965
000 shares in Intec Telecom Systems PLC ("Intec") which comprised 93% of
total assets at 28 February. The Intec share price fell from GBP6,20 to
GBP3,53 during the period which resulted in a R271m negative fair value
adjustment included in the aggregate R294,7m adjustment. This fall was
caused mainly by the general international down-rating of technology stocks
and negative sentiment regarding prospects for the international telecom
industry which forms Intec's customer base.
Trematon's operating expenses for the period were R1,65m, which together
with interest paid and the loss from associates resulted in a headline loss
per share of 2,4 cents.
During the period Trematon sold its 40% shareholding in the retail jewellery
chain, NWJ Holdings (Pty) Ltd to NWJ management. A R3,5m loss was incurred
on the carrying value of the investment.
Provisions have also been made against the carrying value of the remainder
of Trematon's investments which are focussed in the technology sector.
INTEC
Subsequent to the accounting date, Intec's share price has fallen further
because its second quarter results were below original market expectations.
It is currently trading at GBP1,15 per share.
Intec's operating results for the six month period ended 31 March 2001 were
affected by a more difficult operating environment caused by sharp cutbacks
in major telecoms capital expenditure as well as by extended sales cycles
for purchases by telecom customers.
Highlights of Intec's published results are:
*Half year turnover increased 89% to GBP14,4m (2000 : GBP7,6m)
*22 new contract wins in USA, Italy, Taiwan, Spain, Switzerland, Jamaica,
Germany and UK
*Recurring revenues up by 159% over corresponding period in 2000
*Quarterly sequential EBITDA has improved from a loss of GBP1,4m in the
first quarter to a profit of GBP1,3m in the second quarter
*Loss before tax of GBP3,7m after goodwill and depreciation of GBP4,2m
*Cash reserves and investments amount to GBP23,6m
PROSPECTS
Trematon's asset value is directly related to the price of the Intec shares
on the London Stock Exchange. Intec's pipeline of business prospects has
increased significantly and as a greater portion of revenues are earned in
the second half of its financial year, its Board has reason to believe that
steady improvement in business performance can be expected. Intec's previous
experience of quarterly sales cycles and its current trading also gives its
Board reason to be cautiously optimistic about its performance against
current expectations.
By order of the board
C W GARVIE
SECRETARY
15 May 2001
Registered office Postal address
The Manor House P O Box 712
14 Nuttall Gardens Durban
Morningside 4000
4001
Telephone: 031-3039667
Fax: 031-3039694
Directors: N A Labuschagne (Chairman), R B McElligott (CEO), P Ditz, A
Eyal, M Farrer, M G Meehan, A J F Mundell, R E Sherrell
