| Mon 28 May 2001, 0:00 | | Setpoint Technology Holdings Limited - Interim Res |
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SETPOINT TECHNOLOGY HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1996/014334/06)
("the company")
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Interim Results
for the six months ended 28 February 2001
and cautionary announcement
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Consolidated income statements
Unaudited Unaudited Audited
Six months Six months Twelve months
ended ended ended
28 February 29 February 31 August
2001 2000 2000
R'000 R'000 R'000
Revenue 166 378 181 763 331 728
Cost of sales (118 949) (105 281) (222 060)
Gross margin 47 429 76 482 109 668
Operating expenses (55 014) (47 451) (92 001)
Operating (loss)/income before
abnormal operating losses (7 585) 29 031 17 667
Abnormal operating losses - - (4 250)
Operating (loss)/income (7 585) 29 031 13 417
Exceptional items (note) (5 017) - (3 393)
(Loss)/Income before
finance costs (12 602) 29 031 10 024
Net finance charges (4 980) (7 858) (7 950)
(Loss)/Income before taxation (17 582) 21 173 2 074
Taxation 3 668 (2 410) 4 884
(Loss)/Income after taxation (13 914) 18 763 6 958
Share of associated
companies income - 231 231
(Loss)/Income attributable to
ordinary shareholders (13 914) 18 994 7 189
Weighted average number of
shares in issue ('000) 182 420 173 241 183 730
Fully diluted weighted average
number of shares in issue ('000) 196 533 191 901 183 730
Earnings per share (cents) (7,6) 11,0 3,9
Headline earnings
per share (cents) (4,9) 10,7 5,8
Fully diluted earnings
per share (cents) (7,1) 9,9 3,9
Fully diluted headline
earnings per share (cents) (4,5) 10,7 5,8
Note:
Exceptional items comprise
provisions in respect of:
Acquisition costs 1 710
Diminution in value of investments 3 307
5 017
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Consolidated cash flow statements
Unaudited Unaudited Audited
Six months Six months Twelve months
ended ended ended
28 February 29 February 31 August
2001 2000 2000
R'000 R'000 R'000
Cash (outflow)/inflow from
operating activities (7 634) 11 951 6 099
Cash (outflow) from investing
activities (1 742) (2 104) (13 430)
Cash (outflow)/inflow from
financing activities (4 404) (779) 429
Movement in cash and cash
equivalents (13 780) 9 068 (6 902)
Cash and cash equivalents at
beginning of period/year 19 505 26 407 26 407
Cash and cash equivalents
at end of period/year 5 725 35 475 19 505
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Consolidated balance sheets
Unaudited Unaudited Audited
at at at
28 February 29 February 31 August
2001 2000 2000
R'000 R'000 R'000
ASSETS
Non-current assets 42 365 82 944 34 180
Property, plant and equipment 26 091 27 388 27 027
Intangible assets 5 476 46 200 -
Investments - 1 462 23
Deferred taxation 10 798 - 7 130
Loan to Share Incentive Trust - 7 894 -
Current assets 122 790 164 901 136 304
Cash and cash equivalents 5 725 35 475 19 505
Inventories 44 349 38 454 38 821
Trade and other receivables 68 438 79 210 71 141
Other current assets 4 278 11 762 6 837
Total assets 165 155 247 845 170 484
EQUITY AND LIABILITIES
Capital and reserves
Shareholders' funds 37 640 108 164 54 622
Minority interest - 43 -
Non-current liabilities 28 622 52 694 31 905
Interest bearing liabilities 21 043 22 688 21 224
Non-interest bearing liabilities 7 579 27 549 10 681
Deferred taxation - 2 457 -
Current liabilities 98 893 86 944 83 957
Short-term interest bearing
liabilities 37 006 25 703 29 265
Short-term non-interest bearing
liabilities 61 887 61 241 54 692
Total equity and liabilities 165 155 247 845 170 484
Shares in issue ('000) 182 420 173 216 173 241
Total net asset value per share (cents) 20,6 48,1 25,8
Tangible net asset value
per share (cents) 17,6 23,6 25,8
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Contingent liability
Set Point is contractually obliged to purchase 2,79 million shares in the
company from a vendor at 72 cents per share, if these shares are tendered to
the company in negotiable form at 28 February 2003.
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Consolidated changes in equity statement Non-dis
Deferred tribu Distri
Share Share purchase table butable
capital premium conside reserve reserve Total
ration
R'000 R'000 R'000 R'000 R'000 R'000
Balance at
1 September 2000 1 732 12 512 16 870 1 492 22 016 54 622
Issue of share capital 92 8 949 (9 041) - - -
Currency translation
differences on foreign
subsidiaries - - - (527) - (527)
Income attributable
to ordinary shareholders- - - - (13 914) (13 914)
Increase in goodwill - - 1 321 - - 1 321
Adjustment in respect
of goodwill previously
written-off - - (7 346) - 3484 (3 862)
1 824 21 461 1 804 965 11 586 37 640
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Review of operations
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PROFILE
Set Point is a manufacturer and supplier and operates specialised
industrial, analytical and allied technological equipment used by a wide
range of major industries.
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FINANCIAL RESULTS
The interim results to 28 February 2001 have proved to be very disappointing
and are a reflection of the poor trading conditions being experienced in
southern Africa.
Margins declined substantially resulting in operating losses in both the
contracting and manufacturing divisions.
Expenses were higher than for the comparable six-month period and, coupled
with the lower margins, contributed to an operating loss of R7,6 million.
Borrowings remain at unacceptably high levels and steps are being taken to
reduce them.
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DIRECTORATE
Subsequent to 31 August 2000, Christopher Seabrooke (Non-executive
director), Bryan Kent (Chairman) and Norman Kennelly (Group financial
director) joined the board. Dave Kitchen has resigned as Managing director
and Tony Dreisenstock as Non-executive director.
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PROSPECTS
Strategies, including the sale of loss-making operations, are being pursued
which will reduce the group's level of borrowings and allow management to
concentrate on the profitable divisions.
In addition, further cost reduction programmes have been implemented.
Improved results are expected from these actions.
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CAUTIONARY
Further to the cautionary announcement dated 16 March 2001, which advised
shareholders that the group was involved in a legal dispute with the vendors
of one of the businesses acquired in 1999. Standard Corporate and Merchant
Bank is authorised to announce that this matter has now been settled through
the final payment of R5 million in respect of the purchase price of the
Wearcheck Division.
A further cautionary announcement issued on 7 May 2001 indicated that the
group is in negotiations which, if successfully concluded, could affect the
price at which shares in the company trade. Accordingly, shareholders should
continue to exercise caution until a further announcement is made.
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For and on behalf of the board
MJ Smith (Chief Executive Officer)
ND Kennelly (Group Financial Director)
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Johannesburg
28 May 2001
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Directors: BH Kent (Chairman)* MJ Smith (Chief Executive Officer), Dr DE
Baloyi*, JM Judin*, ND Kennelly, H Levin*, Dr TL Martin*, VTL Ngubeni*, CS
Seabrooke*, HP St Quintin* (* Non-executive)
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Registered office: Pin Mill Farm, Block F, 164 Katherine Street, Sandton,
2146 (PO Box 787646, Sandton, 2146)
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Transfer secretaries: Mercantile Registrars Limited 10th Floor, 11 Diagonal
Street, Johannesburg, 2001 (PO Box 1053, Johannesburg, 2000)
Sponsor: Standard Corporate and Merchant Bank (A division of the Standard
Bank of South Africa Limited)
(Registration number 1962/000738/06)
