| Tue 7 Aug 2001, 0:00 | | Command - Audited Financial Results For The Year E |
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Command Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1999/014759/06)
("the group" or "the company")
Audited Financial results for the year ended 31 December 2000
and further cautionary announcement
Group consolidated income statement
for the year ended 31 December 2000
Audited
31 December 2000
R'000
Turnover 119 057
Attributable loss incurred from trade (5 596)
Borrowing costs (1 564)
Investment income 142
Attributable loss (7 018)
Amortisation of intangibles (2 658)
Business development costs - new business (393)
Capital losses (net) (1 643)
Re-branding costs (482)
Restructuring and staff rationalisation costs (969)
Net loss before taxation (13 163)
Taxation 540
Net loss attributable to ordinary shareholders (12 623)
Share of associated company losses (19)
Outside shareholders' interests - losses 41
Net loss (12 601)
Dividends -
Defecit for the year (12 601)
Headline loss per share (cents) (8,4)
Loss per share (cents) (12,4)
Fully diluted loss per share (cents) (12,4)
Dividends per share (cents) -
Notes to the financial statements
Group Company
Year Year
Ended ended
31/12/2000 31/12/2000
R'000 R'000
Headline loss
Headline loss is reconciled to net loss as follows:
Net loss for the year (12 601) -
Exceptional expences and losses 5 287 -
Exceptional income and gains (970) -
Taxation in respect of exceptional items (233) -
Headline loss (8 517) -
Group consolidated cash flow statement for the year ended 31 December 2000
Audited
31 December 2000
R'000
Operational cash flows 1 449
Cash generated from trading activities 6 085
Cash utilised in non-trading activities (4 308)
Company taxation paid (328)
Cash utilised to service and repay
interest-bearing liabilities (2 024)
Long-term borrowings (2 024)
Short-term borrowings -
Cash utilised for investing activities (4 947)
Cash flow from investments and loans (1 041)
Cash flow from acquired and sold businesses (4 065)
Net cash inflow from asset sales and
acquisitions to maintain operations 160
Net cash outflow from expansion,
protection and improvement of operations (1)
Cash exchanges with shareholders 795
Proceeds from share issue 5 000
Listing costs (4 205)
Net decrease in cash resources (4 727)
Group consolidated balance sheet
31 December 2000
Audited Audited
31 December 31 December 1999
2000 1999
R'000 R'000
Assets
Long-term assets
Tangible assets 5 614 5 386
Deferred taxation 768 -
Intangible assets 5 483 -
Investments, loans and rental debtors 1 182 -
13 047 5 386
Current assets
Inventories 2 370 91
Work-in-progress 2 423 -
Accounts receivable 15 814 3 745
Cash resources 1 408 -
22 015 3 836
Total assets 35 062 9 222
Funds and Liabilities
Shareholders' funds
Share capital 1 1
Share premium net of listing costs 7 953 5 309
Accumulated deficit (12 601) -
Outside shareholders' interests 1 826 -
(2 821) 5 310
Deferred liabilities
Tenants' deposits 574 -
Income received in advance 498 -
Deferred creditors 29 -
1 101 -
Interest-bearing liabilities
Long-term borrowings 2 579 2 203
Taxation 366 -
Short-term borrowings 8 252 1 281
11 197 3 484
Interest-free liabilities
Non-trade payables 411 -
Accounts payable 21 014 -
21 425 -
Provisions 4 160 428
Total funds and liabilities 35 062 9 222
Number of shares ('000)
- in issue 101 848 95 000
- weighted average 101 386 n/a
Net (liability)/asset value
per share (cents) (2,8) 5,6
Group consolidated statement of changes in equity for the year ended 31
December 2000
Share Share Accumulated Audited
Capital Premium deficit Total
R'000 R'000 R'000 R'000
Balance
at beginning of the year 1 5 309 - 5 310
Issue of shares
- ordinary share capital - 6 849 - 6 849
Listing costs written off - (4 205) - (4 205)
Deficit for the year - - (12 601) (12 601)
Balance
at the end of the period 1 7 953 (12 601) (4 647)
Group segment report for the year ended 31 December 2000
Guarding Guarding
& allied & allied Electronic Parking
Head services services security management
office Gauteng Western services services Total
Cape
Financial information
Turnover - 29 741 52 599 33 717 3 000 119 057
Headline
(loss)/earnings (7 139) (4 148) 2 114 422 234 (8 517)
Investment income
Assets 217 3 958 12 115 18 594 178 35 062
Liabilities 14 950 2 398 1 210 14 639 526 33 723
Depreciation 32 539 757 269 - 1 597
Percentage
reconciliation to
consolidated results
Turnover - 25 44 28 3 100
Headline
(loss)/earnings (84) (49) 25 5 3 100
Assets 1 11 34 53 1 100
Liabilities 44 7 4 43 2 100
Depreciation 2 34 47 17 - 100
NOTES:
1. Comparatives
There are no comparative figures for the income and cash flow statements as
the group only commenced trading on 1 January 2000.
2. Capital expenditure and commitments
Capital expenditure for the period amounted to R3 598 000
There are no capital commitments at year end.
3. Instalment sale and operating lease commitments
Total instalment sale commitments amount to R 3 254 000. Total operating
lease commitments amount to R3 054 000.
4. Depreciation
Depreciation for the year amounted to R1 597 000.
5. Year 2000 ("Y2K")
No Y2K operational processing problems were encountered.
6. Contingent liabilities
The group has various contingent liabilities through rental discounting by
Aludie Limited, and installation warranties issued by Command, totalling
approximately R 14 856 381.
GENERAL REVIEW
Nature and history of business
The group commenced trading on 1 January 2000 having acquired various
businesses operating in the security industry on 31 December 1999. The
company listed on the JSE Securities Exchange ("JSE") in the services
sector, on 9 February 2000. The company's two main subsidiaries are wholly
owned Command Security Services (Proprietary) Limited and Aludie Limited in
which the group has a 47.7% stake. The former company provides physical
guarding services and alarm installation services and Aludie trades in the
security systems and parking management industry. The results of Aludie have
been included for the period 1 June 2000 to year end, that being the period
during which effective control was exercised.
Without qualifying their opinion, the auditors have drawn attention to
certain related party transactions disclosure in the annual financial
statements.
Results
The group has reported poor trading results as a result of the following
factors:
1. The group experienced unexpected problems in restructuring the acquired
companies and in implementing effective management information systems;
2. Turnover did not meet forecasts due partly to the group's failure to
conclude a partnership arrangement with a black empowerment entity;
3. The group's infrastructure was established in order to manage a business
with a much higher turnover and the benefits of downsizing have not been
felt during this period;
4. New business expenditure, particularly expenditure on the business of
electronic monitoring of offenders, may only yield revenue in the
forthcoming year;
5. Substantial losses (R3 922 000) were incurred at the Witbank and Pretoria
branches as a result of pressures on the margins and bad debts written off.
Further losses were incurred at the Worcester Branch (R590 000) for similar
reasons.
The external auditors have raised an emphasis of matter on going concern.
Prospects
The group expects to report a return to profitability during the 2001
financial year based on the following actions taken and/or currently in
progress:
1. The recapitalisation of the group.
2. Substantial reductions in overheads largely through the rationalisation
of branch operations recently completed and the non-renewal of certain
service contracts.
3. The disposal of the Witbank, Pretoria and Worcester branches, have been
agreed to in principle and announcements in this regard will be made in due
course.
4. The implementation of better management information systems expected to
be completed shortly.
Dividends
The company has not declared any dividends for the year under review in
accordance with the group's policy on dividends detailed in its prospectus.
Further cautionary announcement
Further to the cautionary announcement dated 25 July 2001, shareholders are
advised that negotiations are still in progress which, if successfully
concluded, may have a material effect on the price of the company's
securities.
Accordingly, shareholders are advised to continue exercising caution when
dealing in the company's securities until a full announcement is made.
Directors
Z J Sithole (Non-executive Chairman), H J Bruyn (Chief Executive Officer), J
Imerman, (Executive), S Imerman (Non-executive), M W Reynolds (Executive), J
Tsotsetsi (Non-executive - September 2000), T E Nxumalo (Executive -
September 2000)
By order of the Board
H.J. Bruyn M.W. Reynolds
Chief Executive Officer Financial Director
J.C. Kaufmann
Company Secretary
Cape Town
7 August 2001
Transfer secretaries Registered office
Mercantile Registrars Ltd Building 2, De Tijger Office Park
11 Diagonal Street Cnr McIntyre/Hannes Louw Streets
Johannesburg Parow
2000 7500
