| Fri 1 Jun 2001, 0:00 | | Sempres- Results |
|
Highlights of audited results
SEMPRES
TeleManagement Systems & Services
highlights of audited results
for the year ended 28 February 2001
highlights of audited results
for the year ended 28 February 2001
SEMPRES INTERNATIONAL TECHNOLOGY HOLDINGS LIMITED
(Registration number 1998/017358/06)
- Turnover in excess of R100 million
- Headline earnings per share 9,36 cents
- Operating margins 21%
- Net tangible asset value per share 18 cents
Group income statement
Pro forma Year ended Year ended
Pre-listing
28 February 28 February 28 February
2001 2000 2000
R'000 R'000 R'000
Revenue 107 572 45 688 89 811
Operating expenses (85 605) (27 640) (56 849)
Profit before taxation 21 967 18 048 32 962
Taxation (4 653) (5 416) (5 654)
Net profit 17 314 12 632 27 308
Earnings per share (cents) 9,36 6,83 14,76
Number of shares in issue ('000) 185 000 185 000 185 000
Group balance sheet
Year ended Year ended
28 February 28 February
2001 2000
R'000 R'000
Assets
Non-current assets 407 16 884
Property, plant and equipment 14 887 16 882
Goodwill 2 111 -
Development cost 5 776 -
Investments and loans 15 633 2
Current assets 43 118 28 435
Accounts receivable 37 481 25 255
Inventory 5 637 3 180
Total assets 81 525 45 319
Equity and liabilities
Capital and reserves 32 548 16 466
Share capital 18 19
Share premium 2 425 3 857
Accumulated profit 29 904 12 590
Non-distributable reserves 201 -
Non-current liabilities 4 777 7 449
Long term liabilities 3 986 7 401
Deferred taxation 791 48
Current liabilities 44 200 21 404
Accounts payable 29 657 12 269
Taxation 9 628 5 385
Bank overdraft 4 915 3 750
Total equity and liabilities 81 525 45 319
Group cash flow statement
Year ended
28 February
2001
R'000
Cash flow from operating activities 28 447
Cash flow from investing activities (25 709)
Cash flow from financing activities (3 903)
Net increase in cash and cash equivalents (1 165)
Cash and cash equivalents at beginning of the year (3 750)
Cash and cash equivalents at end of the year (4 915)
Group statement of
changes in equity
Year ended
28 February
2001
R'000
Equity at beginning of the year 16 466
Changes in share capital and share premium
Share issue expenses written off (1 433)
Changes in retained earnings
Net profit for the year 17 314
Changes in reserves
Increase in non-distributable reserves 201
Equity at end of the year 32 548
Notes
1.Related party transactions
During the year the group, in the ordinary course of business, entered
into various transactions with companies controlled by directors.
Consulting fees earned from these companies amounting to R18 million (2000
- R14 million) are included in group revenue.
2. A company controlled by a director
Included in investments and loans is a payment of R14 million to CBS
Sandwerf (Pty) Limited ("CBS"), a company controlled by a director of
Sempres. This company has been authorised by Sempres to acquire new
subsidiaries on behalf of the group. The amount paid out has been to place
CBS in funds to make these acquisitions.
These new acquisitions will be brought into the group subsequent to the
financial year-end, subject to the necessary approval and requirements of
the Johannesburg Stock Exchange.
3. Fleetcall acquisition
The terms of the agreement for the acquisition of the subsidiary company
Fleetcall (Pty) Limited have not been met and there is a possibility that
this subsidiary will be transferred back to the vendors. Should this happen,
it is anticipated that Sempres would continue to manage the network of
Fleetcall, thereby securing the ongoing income from this source.
4. The subsidiary company Applied Test Systems SA (Pty) Limited has been
sold back to the original owners of the company subsequent to the financial
year-end as the company is a commodity hardware company which does not form
part of the future focus of the Sempres group.
5. The overseas subsidiary, Greenwich Mean Time Software Limited, has
capitalised development costs amounting to R5,77 million relating to the
software product which the company has developed during the financial year.
Review of the year
Comment
Sempres International Technology Holdings Limited (Sempres) was listed on
the JSE on 18 August 2000. During our maiden year as a listed entity,
Sempres focused on consolidating various acquisitions, which enabled Sempres
to build a platform to provide world-class telecommunications and
information products and services. Our focus has been to merge these
entities into three business units consisting of Sempres International
Communication Technology (Pty) Limited, Sempres International Communication
Services (Pty) Limited and Computer Research Services (CRS).
The difficult trading year under review did not allow us to meet our profit
forecast. The major reasons for this were:
- Various contracts and tenders submitted have not yet been awarded.
- The delays in the international sales of computer software management
products.
- To increase our annuity, income margins had to be sacrificed.
- Increases in research and development costs.
Sempres' core business is telemanagement, which entails the remote
management of fixed and mobile assets through both wired and wireless
telecommunication links. These assets include PCs, vehicles, buildings,
pumps and valves, and process plants as well as machine-to-machine
communications focusing on delivering value-added services to the financial
industry.
Sempres Network Management is also repositioning itself to manage more than
one wireless network. This will enable Sempres Network Management to provide
more cost- effective telecommunications and information products and
services. This will result in Sempres becoming highly competitive in the
wireless transmission of data.
Sempres recently formed an alliance with Regal Treasury Private Bank, which
gives Sempres access to a banking licence, necessary for some of the planned
wireless financial services. It is expected that this alliance will
contribute to income towards the end of the 2002 financial year.
Financial review
During the year under review Sempres achieved annual turnover of R107
million, profit after tax of R17,5 million and operating margins of 21%. Our
headline earnings per share were 9,36c and our net asset value per share
increased to 18c.
Dividend
No dividend has been declared. Our current dividend policy is to retain
earnings in the foreseeable future to finance the growth and development.
Prospects
The prospects for Sempres are very positive from a market focus perspective.
Sempres will be concentrating on machine-to-machine, wireless business data,
and transaction applications. It is well recognised by industry experts that
these are amongst the highest expected growth areas in the IT and
telecommunication fields. The main area of management focus will be on the
growth of the business within the cash resources generated by the business.
Directors
Messrs Marius F rst and Christopher Wood have resigned as non-executive
directors. Sempres thanks them for their sterling efforts in assisting
Sempres in its maiden year and especially for their advice relating to
corporate governance issues. Their contributions will stand Sempres in good
stead in the years to come.
Sempres has appointed Mr N M Maredi, CEO of African Legend Technology (Pty)
Limited as a non-executive director to the board and awaits confirmation
from Regal Treasury Private Bank of the approval to appoint Mr Shane
O'Neill, senior executive of Regal Treasury Private Bank, as a non-executive
director to the board.
Sempres expects that Messrs Maredi and O'Neill will add significantly to the
extension of the Sempres business services into the Government and financial
transaction transmission area.
General
Sempres expects to mail the annual reports to shareholders before 27 June
2001 and to convene the annual general meeting at 11:00 on 19 July 2001 at
the Sempres offices, Centurion.
C J Rich K W Feilder
CEO South Africa CEO International
Centurion
31 May 2001
Directors: Dr K E Bruinette1 PhD (Illinois) (Chairman); K W Feilder2 BEng
(Hons) (Chief Executive Officer International) (Alternate N R Vaughan2); C J
Rich2 BEng (Hons) (Sheffield) (Chief Executive Officer South Africa); D F
Spangenberg (Chief Operating Officer South Africa); H M P Bruinette CA(SA)
(Chief Financial Officer);
F J Cohen1 BProc; N M Maredi1 BSc (Hons), MBA.
Company Secretary: R S Gordon FCIS, HDip Tax Law (Wits), HDip Co Law (Wits)
1Non-executive 2British
Registered office:
Sempres Building, 1286 Heuwel Avenue, Centurion (PO Box 7582, Centurion,
0046)
Transfer secretaries:
Ultra Registrars, Ground Floor, 11 Diagonal Street, Johannesburg, 2001
Auditors:
BDO Spencer Steward (Jhb), 13 Wellington Road, Parktown, 2193
Sponsor:
BOE Securities (Pty) Limited, 187 Rivonia Road, Morningside, Sandton, 2057
Organisation Beyond Expectation
This announcement is available on the SEMPRES website at
http://www.sempres.com
The annual report will be available mid-June 2001
