| Wed 30 May 2001, 0:00 | | Vesta - Interim Results For The Six Months Ended 2 |
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Vesta Technology Holdings Limited
Incorporated in the Republic of South Africa
(Registration number 1998/015580/06)
INTERIM RESULTS FOR THE SIX MONTHS ENDED 28 FEBRUARY 2001
Condensed income statement
Unaudited Audited
Six months Six months Year
Ended ended ended
28/2/01 29/2/00 31/8/00
Revenue 21 042 47 797 65 542
Cost of sales (4 398) (38 065) (40 835)
Gross profit 16 644 9 732 24 707
Other operating income 227 - 826
Other operating expenses (12 736) (5 937) (15 860)
Results from operating activities 4 135 3 795 9 673
Net financing income/(expense) (34) 402 578
Profit before taxation 4 101 4 197 10 251
Income tax expense - (150) 277
Net profit for the period 4 101 4 047 10 528
Earnings per share (cents) 4,8 4,8 12,4
Headline earnings per share (cents)5,6 5,2 13,7
Weighted average number of
shares (million) 84 817 84 600 84,817
Condensed statement of changes in equity
Non-
Distribu-
Share Share Retained table
Capital premium profits reserve Total
R'000 R'000 R'000 R'000 R'000
Balance at
1 September 1999 82 15 131 7 135 - 22 348
Issue of capital 2 3 844 - - 3 846
Net profit for the
Year - - 4 047 - 4 047
Balance at
29 February 2000 84 18 975 11 182 - 30 241
Balance at
1 September 2000 85 19 381 17 664 77 37 207
Foreign exchange
translation reserve - - - 259 259
Net profit for the
Period - - 4 101 - 4 101
Balance at
28 February 2001 85 19 381 21 765 336 41 567
Condensed balance sheet
Unaudited Audited
28/2/01 29/2/00 31/8/00
R'000 R'000 R'000
Assets
Non-current assets 27 499 17 731 25 415
Tangible assets 5 981 3 393 4 512
Non-tangible assets 20 816 14 334 20 430
Other financial assets 702 4 473
Current assets 24 365 14 994 23 040
Inventories 9 810 3 506 10 999
Trade and other receivables 11 926 3 929 6 962
Cash and cash equivalents 2 096 6 509 4 656
Taxation - 62 -
Other financial assets 533 988 423
Total assets 51 864 32 725 48 455
Equity and liabilities
Capital and reserves 41 567 30 274 37 207
Equity capital 19 466 19 059 19 466
Non distributable reserves 336 33 77
Accumulated profits 21 765 11 182 17 664
Non-current liabilities 304 745 303
Interest bearing borrowings 299 368 298
Deferred taxation 5 377 5
Current liabilities 9 993 1 706 10 945
Trade and other payables 8 735 1 532 9 688
Short-term borrowings 218 174 538
Taxation 1 040 - 719
Total equity and
Liabilities 51 864 32 725 48 455
Cash flow statement
Unaudited Audited
Six months Six months Year
Ended ended ended
28/2/01 29/2/00 31/8/00
R'000 R'000 R'000
Cash flows from operating activities 856 (153) 5 316
Cash flows from investment activities (3 058) (5 995) (10 854)
Cash flows from financing activities (28) 3 818
89
Net change in cash and cash equivalents (2 230) (2 330) (5 449)
Cash and cash equivalents acquisitions - - 935
Cash and cash equivalents at beginning
of period 4 326 8 838 8 840
Cash and cash equivalents at end
of period 2 096 6 508 4 326
Comment
Group Overview
The group still focuses on quality rather than quantity with a strong
management team in place. The offshore ventures are paying off and we have
capacity to embark on new opportunities. Vesta's position and skills in the
financial markets increased considerably, in line with our strategy to grow
in this market. New software product development in this area will also
enable Vesta to accelerate market share. Vesta's commitment to product
development and research and development continues to make up a large
component of our expense.
Financial
Vesta's operational focus has been to optimise profitability. This
approach, accompanied by an aggressive move towards annuity based revenue,
reduced turnover but increased the profitability of the group. The profit
ratio went up from 8,5% to 19,5%. We are experiencing the benefit of a
local cost base with a growing off-shore client base. Vesta is still
benefiting from past-calculated tax losses and therefore does not have any
taxation expense. Vesta has calculated tax losses, amounting to R3 193 339,
available to set-off against future taxable income.
Prospects
A key component in Vesta's long term strategy is to optimise return on our
product base. Our e-learning product is maturing in a market that is very
positive about the benefits of e-learning. The same applies to our
financial products. More transaction-based business is ensuring a low risk
growth path for Vesta. There is an ever increasing interest in our product
from international vendors which is clear indication that we are developing
leading products in their respective markets.
Dividends
In line with the stated policy of the company, no interim dividend has been
declared.
Thanks
I want to thank the people at Vesta. We are in a fast changing environment
and everyone has contributed in a challenging time. You are part of a world-
class team and the board is proud of you.
By order of the board
Frederick Morrison Johannesburg
Chief Executive Officer 31 May 2001
Directors: F Morrison, M Morrison, M du Toit* (*Non-executive).
Transfer Secretaries: Computershare Services Limited,
Edura House, 41 Fox Street, Johannesburg 2001.
Registered Office: Vesta House, Gazelle Close, Corporate Park, Old Pretoria
Rd, Midrand, Johannesburg.
Tel: (011) 314-8181 Fax: (011) 314-8182 www.vesta.ws
