| Fri 7 Sep 2001, 0:00 | | Brainware - Abridged Consolidated Results For The |
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BRAINWARE LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1997/006894/06)
Share code:BRW ISIN code: ZAE000018289
("Brainware" or "the company")
Abridged consolidated results for the year ended 30 June 2001
BALANCE SHEET
at 30 June 2001
Group
June June
2001 2000
Notes R'000 R'000
ASSETS
Non-current assets
Property and equipment 2 2 919 7 150
Goodwill - 8 178
Other investments and loans 38 4 251
Total non-current assets 2 957 19 579
Current assets
Inventories and assets held for sale - 4 958
Receivables and pre-payments 3 751 23 214
Short-term loans - 4 575
Cash and cash equivalents 3 007 16 395
Total current assets 3 758 49 142
Total assets 6 715 68 721
EQUITY AND LIABILITIES
Capital and reserves
Share capital 386 487
Share premium 7 032 7 032
Revaluation and other reserves - 325
Accumulated loss (2 932) (5 958)
Total capital and reserves 4 486 1 886
Minority interest - 3 535
Non-current liabilities
Long-term liabilities - 4 096
Deferred tax liabilities - 519
Total non-current liabilities - 4 615
Current liabilities
Trade and other payables 2 229 22 035
Current tax liabilities - 1 682
Short-term borrowings - 34 703
Minority shareholders for dividends - 265
Total current liabilities 2 229 58 685
Total liabilities 2 229 63 300
Total equity and liabilities 6 715 68 721
Net asset value per share (cents) 1,16 0,39
Net tangible asset/(deficit) value
per share (cents) 1,16 (1,29)
STATEMENT OF CHANGES IN EQUITY
for the year ended 30 June 2001
Foreign
currency
Share Share translation Accumulated
capital premium reserve loss Total
R'000 R'000 R'000 R'000 R'000
GROUP
Balance at 1 July 2000 487 7 032 325 (5 958) 1 886
Net gains recognised
in income statement - - - 3 026 3 026
Shares cancelled (101) - - - (101)
Movement on
translation reserve - - (325) - (325)
Balance at 30 June 2001 386 7 032 - (2 932) 4 486
INCOME STATEMENT
for the year ended 30 June 2001
Group
June June
2001 2000
Note R'000 R'000
Revenue - 154 848
Cost of sales - (109 826)
Gross profit - 45 022
Other income 86 -
Operating expenses (6 287) (64 405)
Costs relating to closure of
operations (2 596) -
Permanent impairment in value of
investments and loans - (9 038)
Profit on sale of investments/
subsidiaries 12 348 6 163
Operating profit/(loss) 3 551 (22 258)
Net interest paid (416) (5 130)
Profit/(loss) before taxation 3 135 (27 388)
Taxation (108) (3 747)
Profit/(loss) from ordinary activities 3 027 (31 135)
Minority interest - 2 822
Net profit/(loss) 3 027 (28 313)
Earnings/(loss) per share (cents) 4 2,7 (5,5)
Headline loss per share (cents) 4 (4,7)
CASH FLOW STATEMENT
for the year ended 30 June 2001
Group
June June
2001 2000
R'000 R'000
CASH FLOW UTILISED IN
OPERATING ACTIVITIES (4 455) (33 771)
Cash receipts from customers 933 164 814
Less: Cash paid to suppliers
and employees (4 864) (182 259)
Cash utilised in operations (3 931) (17 445)
Investment income 157 1 636
Finance costs (573) (6 766)
Taxation paid (108) (7 918)
Cash utilised in (4 455) (30 493)
operating activities
Dividends paid - (3 278)
CASH FLOW FROM
INVESTMENT ACTIVITIES 26 196 14 560
Additions to property and equipment - (2 519)
Disposals of property and equipment - 1 819
Acquisition of subsidiary and
associate companies - (1 500)
Disposal of subsidiary companies 20 426 16 760
Proceeds on disposal of
other investments 4 276 -
Loans and other investments 1 494 -
CASH FLOW FROM FINANCING
ACTIVITIES (24 237) 10 748
Long-term loans repaid (2 742) (11 463)
Short-term loans raised/(repaid) (21 495) 25 472
Proceeds from cancellation of
ordinary shares - (3 261)
Net decrease in cash and
cash equivalents (2 496) (8 463)
Cash and cash equivalents at
beginning of year 5 503 13 966
Cash and cash equivalents at
end of year 3 007 5 503
NOTES TO THE ABRIDGED FINANCIAL STATEMENTS
(1) Audited results
Brainware's results for the year ended 30 June 2001 have been audited by the
company's auditors, PricewaterhouseCoopers. The audit opinion is available
for inspection at Brainware's registered address.
(2) Property and equipment
Subsequent to the financial year end, the Brainware board of directors ("the
Board") has agreed to dispose of the only asset of Brainware's wholly-owned
subsidiary, Brainware Property Investments (Proprietary) Limited, to a
subsidiary of Murray & Roberts Developments (Proprietary) Limited for a
purchase consideration of R3,6 million ("the property disposal"). The
property disposal is subject to Brainware's shareholder approval scheduled
to be obtained at the general meeting to be held today, 7 September 2001.
(3) Receivables and pre-payments
Included in receivables and pre-payments is an amount of R7 million that is
outstanding in terms of the disposal of Brainware's interest in Aqeuro
Holding N.V. ("Aqeuro"). The
Board has decided to include the full R7 million in the provision for
doubtful debts and the amount reflected in the balance sheet is net of this
provision. Brainware has obtained judgement against the purchasers of the
Aqeuro interest and is in the process of pursuing its legal rights opposite
these purchasers and the individuals that have provided personal suretyships
in this regard. Shareholders are also referred to the announcements dated 24
January 2001 and 2 August 2001.
(4) Earnings and headline earnings per share
Earnings per share has been calculated on a profit attributable to
ordinary shareholders of R3 026 320 (2000: R28 313 407 loss) and 386 475 905
(2000: 518 961 616) weighted average ordinary shares in issue.
Headline loss per share for the year ended 30 June 2000 has been
calculated on a loss attributable to ordinary shareholders of R24 528 991
and 518 961 616 weighted average ordinary shares in issue.
During the year ended 30 June 2001 the group's only headline earnings
were derived from interest received. Given that these earnings were
negligable, no headline earnings per share has been calculated.
COMMENTARY
The Board announces an increase in the net tangible asset value per share
from a deficit of 1,29 cents per share at 30 June 2000 to a surplus of 1,16
cents per share at 30 June 2001, which increase reflects the outcome of the
disposal process announced in the press on 17 May 2000. Depending on the
recoverability of the outstanding amount of R7 million (plus interest
thereon and other costs incurred) relating to the disposal of Brainware's
interest in Aqeuro (refer note 3 above) and any other possible recoveries,
the net asset value per share could increase further.
Further to the the circulars to Brainware's shareholders dated 4
September 2000, 28 October 2000 and 31 January 2001, respectively, Brainware
has disposed of its interests in the following companies during the
financial year ended 30 June 2001: Integrated Tertiary Software
(Proprietary) Limited, Brainware Consulting (Proprietary) Limited, Execusys
(Proprietary) Limited, Fund Mator Systems (Proprietary) Limited, BSW
Enterprise Solutions (Proprietary) Limited, Brainware Asia Pacific Limited,
Brainware MIT Solutions (Proprietary) Limited, Amcotec (Proprietary)
Limited, Information Ideals (Proprietary) Limited, Aqeuro Holding
N.V., Brainware Commerce Solutions (Proprietary) Limited, Brainware ILC
(Proprietary) Limited and Quality Engineering Services (Proprietary)
Limited.
Pending the finalisation of the property disposal (refer note 2 above),
Brainware has disposed of all of its material interests in subsidiaries,
investments and operations.
The Board has applied to the JSE Securities Exchange South Africa ("JSE")
for the lifting of the suspension of trading in Brainware's securities and
for the transfer of Brainware's listing to the "Cash Companies" sector of
the JSE List. Shareholders will be informed of the outcome of these
applications in due course.
J C van Niekerk F R Ueckermann
Director Director
For and on behalf of the Board
7 September 2001
Directors:
J C van Niekerk, F R Ueckermann, K D Macmillan, M Pels
Company secretary:
DBL Incorporated
Registered office Transfer secretaries Sponsor
Suite 1 Computershare Services Quaestor Capital
Limited (Proprietary) Limited
267 Waterkloof Road 2nd Floor, Edura House 1st Floor
Brooklyn 41 Fox Street 44 Wierda Road West
Pretoria 0001 Johannesburg 2001 Sandton 2146
