| Fri 25 May 2001, 0:00 | | Insure - Audited Results For The Year Ended 28 Feb |
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INSURANCE OUTSOURCING MANAGERS HOLDINGS LIMITED
(Formerly Auto Space Age Systems Limited)
(Incorporated in the Republic of South Africa
(Registration number 1998/013121/06)
("INSURE" or "the company")
AUDITED RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2001
Group income statement
The audited results for the INSURE group for the year ended 28 February 2001
are presented below. In addition, the interim results for the six months
ended 31 August 2000 and the reviewed results for the five months ended
29 February 2000 as contained in the revised listing particulars statement
dated 25 August 2000 are set out below:
Audited Interim Pro-forma
Results results results
for the for the six for the
year ended months five
28 Feb 2001 ended months
R,000 31 August ended
2000 29 Feb
R,000 2000
R,000
Gross collections 371 180 139 600 79 762
Revenue 31 606 14 006 6 600
Operating income before interest,
amortisation and taxation 9 300 5 020 3 627
Net interest paid (4 115) (2 247) (2 035)
Net income before amortisation 5 185 2 773 1 592
Amortisation of goodwill (969) (302) -
Net income before taxation 4 216 2 471 1 592
Taxation provision (1 643) (874) (530)
Net income after taxation 2 573 1 597 1 062
Outside shareholders' interest (477) (326) (42)
Attributable income 2 096 1 271 1 020
Dividends -- -- (1 250)
Retained income for the period 2 096 1 271 (230)
Determination of headline earnings
Attributable income 2 096 1 271 1 020
Add back : Amortisation 969 302 -
Deduct : Minorities share
of amortisation (86) (43) -
Profit on disposal of assets (24) (21) (55)
Headline earnings 2 955 1 509 965
Effect of compliance with new
Generally Accepted Accounting Practices
Add back : Normal Taxation
credited to deferred taxation asset 440 220 -
Comparable headline earnings to forecast 3 395 1 729 965
Earnings per share
Shares in issue (000's) 1 110 917 1 110 917 210 917
Earnings per share (cents) 0.19 0.11 0.46
Headline earnings per share (cents) 0.31 0.14 0.46
Dividends per share (cents) 0.00 0.00
0.59
Group balance sheet
The balance sheet as at 28 February 2001 has been presented below together
with the interim balance sheet and pro-forma balance sheet as at 31 August
2000 and 28 February 2000 respectively as reported on in the revised listing
particulars statement dated 25 August 2000.
Audited Interim Pro-forma
28 Feb 31 August 29 Feb
2001 2000 2000
R'000 R,000 R,000
ASSETS
Non-current assets 36 292 23 287 19 722
Property, plant and equipment 12 966 11 553 11 195
Intangible assets 21 317 11 734 8 527
Deferred taxation 2 009 -- --
Current assets 93 865 77 746 65 091
Accounts receivable 98 819 81 076 65 089
Less unearned finance charges (6 073) (4 555) --
Cash resources 1 119 1 225 2
Total assets 130 157 101 033 84 813
EQUITY AND LIABILITIES
Capital and reserves 24 627 22 953 21 209
Issued capital 53 656 53 711 54 110
Non-distributable reserves 1 422 -- --
Distributable reserves (29 794) (31 141) (32 958)
Outside shareholders' interest (657) 383 57
Non-current liabilities 570 33 584 31 775
Long-term liabilities 570 33 584 31 775
Current liabilities 105 530 44 496 31 829
Accounts payable 56 120 41 393 28 613
Loans payable 11 298 -- --
Taxation 546 594 388
Current portion of long term liabilities 67 2 509 1 343
Bank overdrafts 35 845 -- 1 485
Total equity and liabilities 130 157 101 033 84 813
Net asset value per share (cents) 2.22 2,07 1,90
Shares in issue (`000) 1 110 917 1 110 917 1 110 917
Statement of changes in equity
The statement of changes in equity is prepared using the actual opening
balances per the financial statements, following the unbundling of the
former business of the company as at 29 February 2000.
Share Share Accumulated Non-
Capital Premium Loss distributeable
R`000 R,000 R,000 Reserve Total
Balance at 01 March 2000 2 30 259 (32 396) 1 422 (713)
Change in accounting policy 506 506
Restated balances 2 30 259 (31 890) 1 422 (207)
Net profit for the period 2 096 2 096
Issue of share capital
- Acquisition of IOM 8 21 142 21 150
- Capitalisation of shareholders
- loan 1 2 699 2 700
- Less issue expenses (455) (455)
Balance at 28 February 2001 11 53 645 (29 794) 1 422 25 284
Group cash flow statement (abridged)
A cash flow statement has only been presented for the current year, due to
the presentation of actual and pro-forma results. Therefore, a prior year
cash flow statement would not be meaningful.
28 February 2001
R`000
Cash flow from operating activities (3 196)
Cash flow from investing activities (5 146)
Cash flow from financing activities (24 801)
Cash and cash equivalents - beginning of year (29)
Cash and cash equivalents - end of year (33 172)
Segmental Analysis
A segmental analysis has been presented for the current year only, due to
the presentation of actual and pro-forma results. A five month comparison
would not be meaningful to shareholders.
For the year ended
28 February 2001
Percentage R'000
Revenue
Finance charges earned 49% 15 487
Commissions 40% 12 642
Service fees 11% 3 477
Revenue as reported 100% 31 606
Accounting policies
This report has been prepared in compliance with South African statements of
Generally Accepted Accounting Practice ("GAAP"). The accounting policies,
with the exception of deferred taxation, and methods of measurement are
consistent with those applied in the revised listing particulars statement.
COMMENTS
Overview
During the past year INSURE has experienced significant growth in gross
collections and revenue compared to the prior year. Gross collections were
estimated at R250m for the year, with actual collections 48% up on forecast
and 111% up compared to the same period in the prior year. Revenue was 54%
up compared to the same period in the prior year and 3.7% higher than
forecast.
This is partly attributable to the increased market profile since the
listing, resulting in the premium financing income area of the business
increasing above expectations, combined with the success of two new products
which were introduced in late 1999. However, to manage the above
developments, additional investments were made in infrastructure and human
resources to maintain and improve the high service levels. This cemented a
service platform geared towards continuously increasing business and new
business opportunities. This resulted in additional overheads, depreciation
and amortisation, reducing shareholders earnings compared to forecast.
In addition, new changes to GAAP had a negative impact on Insure's headline
earnings for the year compared to the maiden years headline earnings
forecast. This was primarily due to the recognition of a deferred taxation
asset and the required accounting thereof (refer "Determination of headline
earnings" calculation).
In view of the above, Insure exceeded its forecast headline earnings by 3%.
This achievement is considered satisfactory for the first year as a listed
group.
Prospects
Insure has invested significantly in infrastructure and future developments,
and is confident that it will continue achieving above-average growth from
its established market and product positioning. The group will continue to
grow organically and capitalise on core areas of operations and
infrastructure.
Dividend
To support and finance infrastructure and future developments, a dividend
will not be declared for the year.
STRATE
The company's shares have been transferred to the STRATE electronic
settlement system, which dematerialisation process was completed on 2 April
2001. As of April 2001 no paper scrip will be accepted for settlement and
therefore shareholders who have not yet entered the STRATE environment
should appoint a Central Securities Depository Participant (CSDP) as soon as
possible.
For and on behalf of the board
B B Dunn D M Burns
Chairman Managing Director
May 24, 2001
Directors
B.B Dunn (Chairman), D.M Burns (Managing), C.J.P Cilliers CA (SA)
(Financial), A.J Dunn*, K.J Gribnitz * (Alternate J.P Nel)
(* non-executive)
Secretary and registered office
Jeantre Secretarial Services (Pty) Ltd., 165 Lynnwood Road, Brooklyn, 0180.
Transfer secretaries
Mercantile Registrars Limited, 11 Diagonal Street, Johannesburg, P.O. Box
1053, Johannesburg 2000.
Postal address and E-mail
P.O. Box 2867, Randburg, 2125 and "results2001@ioh.co.za".
