| Tue 19 Jun 2001, 0:00 | | Y2ktec Limited - Preliminary Unaudited Reviewed Re |
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Y2KTEC LIMITED
(Registration No: 99/02149/06)
PROVISIONAL REVIEWED INCOME STATEMENT for the year ended 28 February 2001
Consolidated Company
Provisional Consolidated Provisional Company
Reviewed Audited Reviewed Audited
Year Year Year Year
Ended Ended Ended Ended
28 February 29 February 28 February 29 February
2001 2000 2001 2000
R R R R
Gross revenue 2 426 633 2 161 165 - 70 000
Continuing
operations -- -- --
Discontinued 2 426 633 2 161 165
operations
Operating loss (2 899 136) (3 387 746) (774 457) (3 505 685)
Continuing
operations (774 457) (231 131)
Discontinued
operations (2 124 679) (3 156 615)
Loss on sale of (8 182 262) 499 900
subsidiary
Share Incentive
Trust Scheme Loan (2 475 000) (2 475 000)
Written Down
Subsidiary loan -- (10 905 202)
written down
Investment income 32 432 169 835 22 725 169 587
Finance cost (108 068) (126 864) -- (8 679)
Net profit/(loss) (13 632 034) (3 344 775) (13 632 034) (3 344 777)
before tax
Taxation -- -- -- --
Net loss after tax (13 632 034) (3 344 775) (13 632 034) (3 344 777)
Earnings/(loss)
per ordinary share (20,02C) (5.6c)
Headline
earnings/(loss) (2,7c) (1.8c)
per ordinary share
Weighted average
no. of shares in
issue (`000) 67 487 59 336
Reconciliation of
Headline earnings
Net profit/(loss)
before taxation (13 632 034) (3 344 775)
Less:
Amortization of
intangibles 1 183 338 2 271 449
Loan write down
Share incentive
scheme 2 475 000
Loss on sale of
subsidiary 8 182 262
Headline (1 791 434) (1 073 326)
earnings/(loss)
PROVISIONAL REVIEWED BALANCE SHEET as at 28 February 2001
Consolidated
Unaudited Company
Provisional Consolidated Provisional Company
Reviewed Audited Reviewed Audited
28 February 29 February 28 February 29 February
2001 2000 2001 2000
R R R R
ASSETS
Non- current assets -- 14 785 816 -- 12 894 033
Fixed assets 674 659 -- --
Investments in -- -- -- 100
subsidiaries
Amount owing to -- -- -- 10 418 933
group companies
-- -- -- --
Goodwill 11 636 157 -- --
Share incentive -- 2 475 000 -- 2 475 000
scheme
Current assets 652 569 1 904 813 652 569 1 439 577
Inventories -- 22 863 -- --
Accounts receivable 500 000 1 700 615 500 000 1 439 577
Bank balances 152 569 181 335 152 569 --
Total assets 652 569 16 690 629 652 569 14 333 610
EQUITY AND
LIABILITIES
Capital and 602 395 14 234 430 602 395 14 234 428
reserves
Issued capital 17 579 205 17 579 205 17 579 205 17 579 205
Accumulated loss (16 976 810) (3 344 775) (16 976 810) (3 344 777)
Non-current 722 479 -- --
liabilities
Director's loans 234 000 -- --
Long term 488 479 -- --
liabilities
Current liabilities 50 174 1 733 720 50 174 99 182
Accounts payable 50 174 1 483 536 50 174 98 990
Bank overdraft -- -- -- 192
Current portion of -- 250 184 -- --
long term
liabilities
Total equity and 652 569 16 690 629 652 569 14 333 610
liabilities
Net asset value per 0,9c 21,1c
share
No. of shares in 67 487 67 487
issue (`000)
PROVISIONAL REVIEWED CASH FLOW STATEMENT for the year ended 28 February 2001
Consolidated Company
Provisional Consolidated Provional Company
reviewed Audited reviewed Audited
Year Year Year Year
Ended Ended Ended Ended
28 February 29 February 28 February 29
February
2001 2000 2001 2000
R R R R
Operating Loss (902 169) (3 033 083) (159 963) (161 131)
before taxation
Continuing (159 963) (220)
operations (742 206) (3 032 863)
Discontinued
operations
Cash generated by 635 044 1 199 386 276 268 98 990
Working Capital
Changes
Continuing 276 268 98 990
operations 358 776 1 100 396
Discontinued
operations
Cash applied to (267 125) (1 833 697) 116 305 (62 141)
operations
Interest received 32 432 169 835 22 725 169 587
Interest paid (108 068) (126 864) - (8 676)
Net cash outflow (342 761) (1 790 726) 139 030 98 770
from operating
activities
Cash generated 500 000 (11 892 396) 13 731 --
from investing
activities
Proceeds from sale 500 000 -- 500 000 -
of subsidiary
Loan advanced to -- -- (46 269) --
subsidiary -- (11 892 396) -- --
Discontinued
operations
Net cash outflow (104 778) 13 864 208 -- (98 862)
from financing
activities
Continuing -- 13 664 627 -- (98 862)
operations
Discontinued (104 778) 199 581 -- --
operations
Net increase in 52 461 181 086 152 761 (192)
cash and cash
equivalents
Cash and cash 181 086 -- (192) --
equivalents at
beginning of year
Less: Cash of (80 978) -- -- --
subsidiary sold
Cash and cash 152 569 181 086 152 569 (192)
equivalents at end
of year
Notes:
The provisional financial statements have been prepared in accordance with
statements of generally accepted accounting practice and the accounting
policies of Y2Ktec have been consistently applied.
As was announced in the press on Tuesday 15 May 2001, the company has
entered into an agreement with Nomalanga Trading Enterprises CC on the 20
February 2001 in terms of which the company, subject to the approval of
shareholders in general meeting, disposes of its wholly owned operating
subsidiary company, Y2KTec (SA) (Pty) Ltd for R500 000 with effect from 1
March 2000. The purchase consideration is payable in cash in three equal
instalments on 30 August 2001, 30 September and 30 October 2001. The
provisional financial statements reflect the financial position and the
operating results of the company and the group as if the agreement of
disposal was in effect at 20 February 2001.
In view of the disposal of the wholly-owned subsidiary, it has been decided
to write off the investment in the Share Incentive Trust in anticipation of
the repurchase and cancellation of the 4 500 000 shares originally issued.
The subsidiary was engaged in a dispute with its managing director, D.
Black. The dispute was referred to the Council for Conciliation, Mediation
and Arbitration. In terms of a ruling by the CCMA, D Black effectively
returned a net 13 363 636 Y2Ktec shares originally issued in settlement of
the purchase consideration for the acquisition of the business of Computer
Management Group. The company intends to repurchase and cancel these shares.
The sale of the subsidiary Y2KTec (SA) (Pty) Ltd has changed the position of
the company from the effective date from a holding company with an operating
subsidiary, to that of a cash shell.
The company shall apply to the JSE Securities Exchange SA ("JSE") for its
listing to be transferred to the "Cash Companies" sector of the JSE lists.
A circular to the shareholders of Y2KTec setting out details of the disposal
will be posted to shareholders within the next four weeks. The circular will
also contain proposals to restructure the capital of the company and
information on the future plans of the company.
The provisional financial statements have been reviewed by the auditors,
Messrs N. Price & Co. The review report contained reference to the
uncertainty of the company's ability to continue as a going concern. The
ability of the company to continue as a going concern is dependent upon the
continued financial support of the directors and the collection of the
purchase consideration for the sale of the subsidiary. In view of the
outstanding approvals required from shareholders in general meeting to
effect the disposal of the subsidiary, the write off of the Share Incentive
Trust and the approvals of the JSE and the Securities Regulation Panel, the
audit will only be completed upon these approvals being obtained or the
audit report will be qualified as a result of these uncertainties. The
review report is available for inspection at the registered offices of
Y2KTec.
For and on behalf of the directors
N Solomon
Cape Town
19 June 2001
Directors : Dr GS Mahlati, Ms N Solomon, Ms A Adams
Registered office : A2 Nevada, Seacliffe Road, Bantry Bay, Cape Town, 8001
Transfer secretaries : Computershare Services Ltd, 41 Fox Street,
Johannesburg, 2001
Sponsor : The Janus Corporation (Pty) Ltd
Auditors : N Price & Company
