| Thu 30 Aug 2001, 0:00 | | Aps - Interim Results For The Six Months Ended 30 |
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APS Technologies Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/024100/06)
("APS" or "the company")
Short name: APS-TECH; Share code: APE; ISIN number: ZAE 0000 17927
Interim results for the six months ended 30 June 2001
Income statements for the six months ended 30 June 2001
Unaudited Unaudited Audited
six months six months 12 months
30 June 30 June 31 December
2001 2000 2000
R'000 R'000 R'000
Revenue 7 603 16 550 34 724
Operating (loss)/profit for
the period (4 114) (3 196) 2 472
Bad debts written off (5 678) - -
Inventory write down (850) - -
Provision for slow moving
and obsolete stock (1 437) - (102)
Operating (loss)/profit
before amortisation and
depreciation (12 079) (3 196) 2 370
Amortisation and depreciation (859) (580) (1 126)
Operating (loss)/profit after
amortisation and depreciation (12 938) (3 776) 1 244
Other income 8 - 127
Net interest received 65 179 324
(Loss)/Profit before
exceptional items (12 866) (3 597) 1 695
Exceptional items (398) (494) (628)
(Loss)/Profit before
taxation (13 264) (4 091) 1 067
Taxation 2 165 (57) (510)
Attributable (loss)/income (11 099) (4 148) 557
Weighted number of ordinary
shares in issue ('000) 124 727 131 500 125 824
(Loss)/Earnings per share
(cents) (8,90) (3,15) 0,44
Headline (loss)/earnings per
share (cents) (8,58) (2,78) 0,94
Reconciliation of headline
(loss)/earnings:
Attributable (loss)/income (11 099) (4 148) 557
Exceptional items 398 494 628
Headline (loss)/earnings (10 701) (3 654) 1 185
Balance sheets as at 30 June 2001
Unaudited Unaudited Audited
30 June 30 June 31 December
2001 2000 2000
R'000 R'000 R'000
Assets
Non-current assets
Property, plant and equipment 1 814 2 534 2 335
Intangibles and deferred
expenditure 5 891 4 952 5 474
Investments 203 - -
Loans - 6 406 -
Deferred tax assets 2 365 470 181
10 272 14 362 7 990
Current assets
Inventories 4 204 7 223 6 527
Accounts receivable 1 545 6 001 8 564
Cash and cash equivalents 100 5 910 5 220
Receiver of revenue 41 - -
5 890 19 134 20 311
16 162 33 496 28 301
EQUITY AND LIABILITIES
Capital and reserves
Share capital and premium 10 214 16 226 11 223
Non-distributable reserves 529 245 424
Accumulated (loss)/profit 910 7 376 12 096
Ordinary shareholders'
interest 11 653 23 847 23 743
Non-current liabilities
Long-term liabilities 96 92 70
Deferred taxation - 69 12
96 161 82
Current liabilities
Bank overdraft 2 472 - -
Accounts payable 1 941 8 248 4 277
Taxation - 1 240 199
4 413 9 488 4 476
16 162 33 496 28 301
Net asset value per share
(cents) 9,34 18,13 18,87
Total number of ordinary share
issued ('000) 124 727 131 500 125 824
Cash flow statement for the six months ended 30 June 2001
Unaudited Unaudited Audited
six months six months 12 months
30 June 30 June 31 December
2001 2000 2000
R'000 R'000 R'000
Cash flow from operating
activities (5 599) 2 379 (904)
Cash flow from investing
activities (1 083) (3 343) (974)
Cash flow from financing
activities (910) (340) (116)
Net (decrease)/increase
in cash (7 592) (1 304) (1 994)
Cash at beginning of period 5 220 7 214 7 214
Cash at end of period (2 372) 5 910 5 220
Statement of changes in equity for the six months ended 30 June 2001
Trans- Accumu-
Share Share lation lated
capital premium reserve profit Total
R'000 R'000 R'000 R'000 R'000
Balance at
1 January 2000 132 16 083 20 11 523 27 758
Transfers and
adjustments - 11 - - 11
Net loss for the
period - - - (4 147) (4 147)
Currency translation
differences - - 225 - 225
Balance at
30 June 2000 132 16 094 245 7 376 23 847
Balance at
1 January 2001 126 11 097 424 12 096 23 743
Restructuring and
settlement costs - (962) - - (962)
Shares acquired by
share purchase
trust (1) (46) - (87) (134)
Net loss for the
period - - - (11 099) (11 099)
Currency translation
differences - - 105 - 105
Balance at
30 June 2001 125 10 089 529 910 11 653
COMMENTS
Accounting policies
These consolidated condensed interim financial statements are prepared in
accordance with AC 127 and schedule 4 of the South African Companies Act.
The accounting policies used in the preparation of the interim financial
statements are consistent with those used in the annual financial statements
for the year ended 31 December 2000.
These interim financial statements should be read in conjuction with the
2000 annual financial statements.
Where appropriate, comparative figures have been restated.
The auditors, PricewaterhouseCoopers Inc, reviewed but did not audit the
interim financial results.
Operating loss
The following items, due to their size and unusual nature, have been charged
to the operating loss during the interim period:
Bad debts
Owing to the bad publicity that the company received in the early part of
the year, certain debtors have been written off. The amount applicable is R5
767 988 which was included under Accounts Receivable at 31 December 2000 and
relates mainly to overseas distributors renaging on their payments.
Inventory
At 30 June 2001, R850 377 inventory was written down and an additional
provision of R1 437 078 was made for slow moving and obsolete stock.
Exceptional items
Restructuring costs of R397 962 were incurred during the first six months of
the year as a result of the reorganisational programme as detailed to
shareholders at the annual general meeting held on 20 June 2001.
(Loss)/Earnings per share
(Loss)/Earnings per share is calculated by dividing the attributale
(loss)/income by the weighted average number of ordinary shares in issue
during the period of 124 727 000 shares (2000:131 500 000 shares; 2000
financial year 125 824 000 shares). The headline (loss)/earnings per share
has been calculated after adjusting for exceptional items and using the
weighted average number of ordinary shares.
Intangibles and deferred expenditure
An amount of R756 480 has been capitalised to the cost of the NeuroStim
patent which was acquired in September 1999 as a result of an external
agreement between certain persons of previous management and the vendors of
NeuroStim.
During the reorganisation process of the group it was considered prudent to
reflect the true cost of the acquired patent.
Investments
The investment relates to the group's interest in our Belgium operation at
30 June 2001 as a result of the settlement reached with the Belgium
distributor subsequent to the bad press earlier in the year.
Share capital and premium
Included under share premium as a debit, is an amount of R962 162 relating
to the cost of the settlement reached with the previous chief executive
officer, Mr Dudley Wooldridge. The intention is to reduce the share capital
and premium once the necessary approvals have been obtained.
Bank overdraft
The negative press reports earlier in the year and the subsequent adverse
trading conditions have resulted in the group making use of an overdraft
facility. This has been secured by a notarial bond over the fixed property.
Subsequent to 30 June 2001 and as detailed at the annual general meeting, an
offer has been received for the sale of the fixed property for R3,7million.
Once sold, the proceeds will be used to settle the bank overdraft and
certain trade creditors.
Prospects
While the market remains tough, the directors are confident that the changes
effected to reduce overheads will result in producing improved results.
Concerted efforts are in place to reduce the amount of working capital
requirements and significant changes to systems and agent commission
structures have been implemented to ensure that improved profitability and
cash flow targets are met.
For and on behalf of the board of directors
J Adriaanse CJ Kleingeld 31 August 2001
Chairman Chief executive officer Pretoria
Transfer secretaries
Computershare Services Limited
(Registration number 1958/003546/06)
First Floor, Edura House, 41 Fox Street, Johannesburg 2001 (PO Box 61051,
Marshalltown 2107)
Registered office
54 De Havilland Crescent, Persequor Park, Pretoria 0002 (PO Box 199,
Persequor Park 0002)
Directors: J Adriaanse (Chairman), C Kleingeld (Chief executive officer), A
de Beer (Marketing), PJ McDonald (Financial), N Wessels (Operational)
Group secretary: PJ McDonald CA(SA)
Internet address: http://www.apstherapy.com
