| Fri 17 Aug 2001, 0:00 | | Aplitec - Group Audited Results For The Year Ended |
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NET1 APPLIED TECHNOLOGY HOLDINGS LIMITED("APLITEC")
INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA
REGISTRATION NUMBER 1997/007207/06
WWW.APLITEC.CO.ZA
HIGHLIGHTS: ATTRIBUTABLE EARNINGS, UP 56%
REVENUE, UP 28%
FULLY DILUTED EARNINGS PER SHARE, UP 37%
FULLY DILUTED HEADLINE EARNINGS PER SHARE, UP 22%
CASH AND CASH EQUIVALENTS AT YEAR END R200 881 000
ABRIDGED INCOME STATEMENT AUDITED AUDITED
YEAR ENDED YEAR ENDED
30 JUNE 30 JUNE
2001 % 2000
R'000 R'000
REVENUE 557 445 28% 436 860
CONTINUING OPERATIONS 557 445 28% 433 965
DISCONTINUED OPERATIONS - 2 895
OPERATING PROFIT 127 658 61% 79 243
CONTINUING OPERATIONS 127 658 37% 93 099
DISCONTINUED OPERATIONS - (13 856)
NET INTEREST RECEIVED 10 986 36% 8 050
PROFIT BEFORE TAX 138 644 59% 87 293
TAX 42 471 95% 21 766
CONTINUING OPERATIONS 42 471 54% 27 532
DISCONTINUED OPERATIONS - (5 766)
PROFIT AFTER TAX 96 173 47% 65 527
ATTRIBUTABLE TO MINORITY SHAREHOLDERS 1 084 (82%) 5 969
AMORTISATION OF GOODWILL 1 902 -
ATTRIBUTABLE EARNINGS 93 187 56% 59 558
WEIGHTED AVERAGE NUMBER OF SHARES ('000) 225 004 14% 196 767
FULLY DILUTED WEIGHTED AVERAGE NUMBER
OF SHARES ('000) 228 662 14% 200 838
EARNINGS PER SHARE (CENTS) 41.42 37% 30.27
HEADLINE EARNINGS PER SHARE (CENTS) 42.23 21% 34.87
FULLY DILUTED EARNINGS PER SHARE (CENTS) 40.75 37% 29.65
FULLY DILUTED HEADLINE EARNINGS
PER SHARE (CENTS) 41.56 22% 34.16
RECONCILIATION OF HEADLINE EARNINGS:
ATTRIBUTABLE EARNINGS 93 187 59 558
AMORTISATION OF GOODWILL 1 902 -
PROFIT ON DISPOSAL OF PROPERTY, PLANT
AND EQUIPMENT (252) -
LOSS ON DISPOSAL OF INVESTMENT 188 -
LOSS ATTRIBUTABLE TO DISCONTINUED
OPERATIONS - 9 050
HEADLINE EARNINGS 95 025 68 608
ABRIDGED BALANCE SHEET AUDITED AUDITED
YEAR ENDED YEAR ENDED
30 JUNE 30 JUNE
2001 2000
R'000 R'000
ASSETS:
NON-CURRENT ASSETS 74 288 59 565
PROPERTY, PLANT AND EQUIPMENT 39 751 38 915
CAPITALISED DEVELOPMENT COSTS 5 995 9 302
TRADE MARKS 2 173 2 718
DEFERRED TAX 10 240 8 630
GOODWILL 16 129 -
CURRENT ASSETS 317 966 206 888
INVENTORIES 16 611 16 484
TRADE AND OTHER RECEIVABLES 100 474 134 980
CASH AND CASH EQUIVALENTS 200 881 55 424
TOTAL ASSETS 392 254 266 453
EQUITY AND LIABILITIES:
CAPITAL AND RESERVES 309 074 155 543
ISSUED SHARE CAPITAL AND PREMIUM 124 228 63 883
ACCUMULATED PROFITS 184 846 91 660
MINORITY INTERESTS 1 580 6 813
CURRENT LIABILITIES 81 600 104 097
TRADE AND OTHER PAYABLES 52 805 76 842
INTEREST BEARING LIABILITIES - 4 154
TAX 28 795 23 101
TOTAL EQUITY AND LIABILITIES 392 254 266 453
SHARES IN ISSUE('000) 229 814 198 599
NET ASSET VALUE PER SHARE (CENTS) 134.49 78.32
ABRIDGED CASH FLOW STATEMENT AUDITED AUDITED
YEAR ENDED YEAR ENDED
30 JUNE 30 JUNE
2001 2000
R'000 R'000
CASH FLOW FROM OPERATING ACTIVITIES:
CASH RECEIPTS FROM CUSTOMERS 594 094 408 620
CASH PAID TO SUPPLIERS AND EMPLOYEES (429 852) (320 403)
CASH GENERATED FROM OPERATIONS 164 242 88 217
NET INTEREST RECEIVED 10 986 8 050
TAX PAID (38 826) (15 784)
CASH FLOWS FROM OPERATING ACTIVITIES 136 402 80 483
CASH FLOWS FROM INVESTING ACTIVITES:
ADDITIONS TO PROPERTY, PLANT AND
EQUIPMENT (21 956) (37 695)
PROCEEDS ON DISPOSAL OF PROPERTY,
PLANT AND EQUIPMENT 282 12 990
INVESTMENT IN SUBSIDIARIES (6 874) (24 204)
CASH UTILISED IN INVESTING ACTIVITIES (28 548) (48 909)
CASH FLOWS FROM FINANCING ACTIVITIES:
PROCEEDS FROM THE ISSUE OF SHARE
CAPITAL 40 845 13 053
PAYMENT OF AMOUNTS OWING TO
VENDORS - (27 125)
REPAYMENT OF CURRENT INTEREST
BEARING LIABILITIES (4 154) (11 047)
REPAYMENT OF NON-CURRENT
LIABILITIES - (26 208)
CASH GENERATED FROM / (UTILISED IN)
FINANCING ACTIVITIES 36 691 (51 327)
INCREASE / (DECREASE) IN CASH
AND CASH EQUIVALENTS 144 545 (19 753)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF YEAR 55 424 73 071
CASH ON ACQUISITION OF SUBSIDIARY 912 2 106
CASH AND CASH EQUIVALENTS AT
END OF YEAR 200 881 55 424
CASH EQUIVALENT EARNINGS PER
SHARE (CENTS) 53.01 43.73
ABRIDGED STATEMENT OF CHANGES AUDITED AUDITED
IN EQUITY YEAR ENDED YEAR ENDED
30 JUNE 30 JUNE
2001 2000
R'000 R'000
ORDINARY SHAREHOLDERS' EQUITY AT
BEGINNING OF YEAR 155 542 86 597
CHANGES IN SHARE CAPITAL:
SHARES ISSUED 31 20
CHANGES IN SHARE PREMIUM: 60 314 9 368
SHARES ISSUED 60 314 42 146
GOODWILL WRITTEN OFF - (32 778)
CHANGES IN ACCUMULATED PROFITS:
ATTRIBUTABLE PROFIT FOR THE YEAR 93 187 59 558
ORDINARY SHAREHOLDERS' EQUITY AT
END OF YEAR 309 074 155 543
SEGMENTAL ANALYSIS
THE ESTIMATED PROPORTIONS OF CONSOLIDATED REVENUE, PROFIT BEFORE TAX AND NON-
CURRENT ASSETS ATTRIBUTABLE TO THE VARIOUS CLASSES OF BUSINESS WERE AS
FOLLOWS:
REVENUE PROFIT BEFORE TAX NON-CURRENT ASSETS
2001 2000 2001 2000 2001 2000
% % % % % %
RECURRING
TRANSACTION
BASED
ACTIVITES 66 67 56 39 89 92
TECHNOLOGY
SALES,
MAINTENANCE
AND
OUTSOURCING 18 15 25 17 4 2
FINANCIAL
SERVICES 16 18 11 36 7 6
INVESTMENTS - - 8 8 - -
100 100 100 100 100 100
NOTES:
Accounting policies
THE ANNUAL FINANCIAL STATEMENTS HAVE BEEN PREPARED IN ACCORDANCE WITH THE
HISTORICAL COST BASIS AND IN CONFORMITY WITH STATEMENTS OF GENERALLY
ACCEPTED ACCOUNTING PRACTICE. The ACCOUNTING POLICIES APPLIED IN THE
PREPARATION OF THE ANNUAL FINANCIAL STATEMENTS ARE CONSISTENT IN ALL
MATERIAL ASPECTS WITH THOSE APPLIED IN THE ANNUAL FINANCIAL STATEMENTS FOR
THE YEAR ENDED 30 JUNE 2000.
Comment
ON BEHALF OF THE BOARD OF DIRECTORS, WE ARE PROUD TO COMMEND THE MANAGEMENT
AND STAFF OF APLITEC ON the GROUP'S RESULTS FOR THE FINANCIAL YEAR ENDED 30
JUNE 2001.
Financial review
REVENUE FROM CONTINUING OPERATIONS INCREASED BY 28% FROM r434.0 MILLION TO
R557.5 MILLION, OPERATING PROFIT FROM CONTINUING OPERATIONS INCREASED BY 37%
FROM r93.1 MILLION TO r127.7 MILLION AND ATTRIBUTABLE EARNINGS INCREASED BY
56% FROM R59.6 MILLION TO R93.2 MILLION. FULLY DILUTED EARNINGS PER SHARE
INCREASED BY 37% TO 40.75 CENTS AND FULLY DILUTED HEADLINE EARNINGS PER
SHARE ROSE BY 22% TO 41.56 CENTS. THE OPERATING PROFIT MARGIN OF THE GROUP
INCREASED FROM 18.1% TO 22.9%.
THE GROUP'S BALANCE SHEET IS VERY SOUND WITH NO INTEREST-BEARING DEBT AND
CASH RESOURCES OF R200.9 MILLION. HEALTHY LIQUIDITY IS SUBSTANTIATED BY A
CURRENT RATIO OF 3.9 : 1 AND AN ACID TEST RATIO OF 3.7 : 1.
CASH FLOW FROM OPERATING ACTIVITIES AMOUNTED TO R136.4 MILLION.
Operational review
Technology sales, maintenance, outsourcing AND INTERNATIONAL INITIATIVES
division
DESPITE SIGNIFICANT WEAKNESS IN THE GLOBAL IT TRADING ENVIRONMENT, THIS
DIVISION HAS AGAIN PERFORMED WELL ABOVE EXPECTATIONS. DIVISIONAL REVENUE
INCREASED BY 50% FROM R66 MILLION TO R99 MILLION AND PROFITABILITY DOUBLED.
tHE STRONG GROWTH WAS ENHANCED BY THE DIVISION'S SUCCESSFUL PENETRATION OF
DEVELOPING ECONOMIES SUCH AS MALAWI, RWANDA, GHANA, BURUNDI AND LATVIA.
THESE MARKETS ACCOUNTED FOR 15% OF THE DIVISION'S REVENUE AND YIELDED THE
FIRST SUBSTANTIAL US DOLLAR-BASED INCOME FOR THE GROUP. THE DIVISION HAS
SIGNED A NUMBER OF SIGNIFICANT RETAIL CONTRACTS, WHICH WILL FURTHER
ACCELERATE THE DEPLOYMENT OF APLITEC'S SMART CARD TECHNOLOGY.
Pension and welfare division
THIS DIVISION CONTINUES TO PERFORM IN LINE WITH EXPECTATIONS. THE PAST YEAR
SAW AN INCREASE IN THE OPERATING PROFIT MARGIN, PRIMARILY DUE TO COST
OPTIMISATION AND IMPROVEMENTS IN ALL ASPECTS OF CASH MANAGEMENT.
THE TECHNOLOGY DEVELOPED FOR THIS DIVISION HAS BEEN IMPROVED SUBSTANTIALLY
TO FACILITATE THE DELIVERY OF BETTER, FASTER AND MORE INFORMATIVE SYSTEMS
FOR THE PENSIONER BASE AND ITS SPONSORS. THIS PHILOSOPHY OF CONTINUOUS
IMPROVEMENT FULLY SUPPORTS THE BATHO PELE PRINCIPLES, AS REFLECTED IN THE
NORMS AND STANDARDS REQUIREMENTS DEFINED BY THE DEPARTMENT OF SOCIAL
DEVELOPMENT.
DURING THE COMING MONTHS, ALL APLITEC'S FIXED AND MOBILE PENSION PAY POINTS
WILL IMPLEMENT THE LATEST APLITEC NETWORKING BLUEPRINT, THAT UTILISES A
COMBINATION OF BOTH SATELLITE AND INTERNET INFRASTRUCTURES. THIS
BREAKTHROUGH, A WORLD FIRST, WILL ENSURE THAT ALL PENSIONERS HAVE TIMEOUS
ACCESS TO THE LATEST INFORMATION REGARDING THEIR BENEFITS, RESULTING IN
GREATLY IMPROVED SERVICE DELIVERY TO THE SOCIAL ASSISTANCE SECTOR IN ITS
ENTIRETY.
Micro-finance division
THE MICRO-FINANCE DIVISION HAS PERFORMED ADEQUATELY. ITS FOCUS REMAINS THE
PROMOTION OF APLITEC'S MILLENNIUM PAYMENT SYSTEM TO THE SHORT AND MEDIUM
TERM LENDING INDUSTRIES.
NEDCOR RELATIONSHIP
during the year, the relationship between aplitec and nedcor has
strengthened significantly.
IN July 2000, nedcor acquired 25.1% of aplitec and has subsequently
increased the holding to 28%. nedcor's contribution of R55 million to
aplitec's revenue during 2001 was in line with expectations. nedcor now
provides most of aplitec's banking requirements.
the close strategic working relationship with nedcor and peoples bank will
allow all parties to capitalise on the combined customer bases,
infrastructures, technology platforms, delivery channels and corporate
relationships. the option (as originally envisaged, granted to nedcor to
increase its shareholding in aplitec to 50% in return for the provision by
nedcor of certain business lines) is currently being refined to encompass
the enhanced working relationship between the groups. any revisions to the
option will be submitted to shareholders for approval.
PROSPECTS
THE BOARD IS CONFIDENT THAT ORGANIC GROWTH WILL BE SUSTAINED AND THAT
RETURNS WILL BE ENHANCED BY THE NATIONAL AND INTERNATIONAL IMPLEMENTATION OF
APLITEC'S NEXT-GENERATION PRODUCTS. THESE INCLUDE THE APLITEC INSTANT BANK
SYSTEM, WAGE PAYMENT SYSTEM, AGE SECURE AND INNOVATIVE POINT OF SERVICE
SOLUTIONS.
IN ADDITION, THE GROUP CONTINUES TO IDENTIFY STRATEGIC PARTNERS, JOINT
VENTURES AND POTENTIAL ACQUISITIONS THAT WILL ASSIST IN EXPANDING APLITEC'S
TECHNOLOGICAL FOOTPRINT IN SOUTH AFRICA AND OTHER DEVELOPING economies.
STRATE
APLITEC MOVED TO THE STRATE SETTLEMENT SYSTEM ON 16 JULY 2001. TRADING FOR
ELECTRONIC SETTLEMENT COMMENCED ON 6 AUGUST 2001 AND THE FIRST ELECTRONIC
SETTLEMENT OF APLITEC SHARE TRADES FOLLOWED ON 14 AUGUST 2001.
On behalf of the board
Serge Belamant
CHAIRMAN AND Chief Executive Officer
Herman KotzE
Chief Financial Officer
17 AUGUST 2001
Johannesburg
Transfer Secretaries
Ultra Registrars (Pty) Ltd
11 Diagonal Street
Johannesburg
2001
Secretary and registered office
Light & Livingstone Financial Services CC
3rd Floor, Palm Grove
196 Louis Botha Avenue
Houghton Estate, 2198
EXECUTIVE DIRECTORS: S C P BELAMANT (FRENCH), H G KOTZE
NON-EXECUTIVE DIRECTORS: D A J DONALD, B J S HORE, J C LIVINGSTONE, D G S
MULLER
