| Fri 7 Sep 2001, 0:00 | | Paragon Business Communications Ltd - Audited Resu |
|
June 2001
PARAGON BUSINESS COMMUNICATIONS LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA
REGISTRATION NUMBER:1995/007711/06)
SHARE CODE: PAG
ISIN CODE: ZAE000022422
Audited results for the year ended 30 June 2001
- REVENUE UP 15,9%
- OPERATING PROFIT UP 25,4%
- HEPS UP 19,4%
CONSOLIDATED INCOME STATEMENT
Audited Audited %
12 months 12 months change
ended ended
R'000 30.06.01 30.06.00
Revenue 286 008 246 791 15,9
Operating profit 19 327 15 417 25,4
Net finance costs 3 112 2 549
Profit before taxation 16 215 12 868 26,0
Taxation 5 757 5 567
Net profit after taxation 10 458 7 301 43,2
Share of associate company's income 189 899
Net profit for the year 10 647 8 200 29,8
Reconciliation of headline earnings
(Profit)/loss after taxation on disposal of
plant and equipment (77) 12
Tax adjustment 23 (4)
Net goodwill amortised 3 129 3 275
Headline earnings 13 722 11 483 19,4
Headline earnings per share (cents) 18,5 15,5
Earnings per share (cents) 14,4 11,1
Dividend per ordinary share (cents) " 6,5
Weighted average number of shares in issue
(`000) 74 000 74 000
CONSOLIDATED BALANCE SHEETS
Audited Audited
R'000 30.06.01 30.06.00
Assets
Fixed assets 40 144 40 043
Intangible assets 24 118 28 045
Investments 1 235 1 046
Current assets 80 386 69 387
Total assets 145 883 138 521
Equity and liabilities
Shareholders! equity 83 022 72 375
Deferred tax 605 1 534
Long-term borrowings 12 662 12 376
Current liabilities 49 594 52 236
Interest-bearing liabilities 4 725 7 253
Non-interest-bearing liabilities 44 869 44 983
Total equity and liabilities 145 883 138 521
Net asset value (cents per share) 112,2 97,8
Net tangible asset value (cents per share) 79,6 59,9
STATEMENT OF CHANGES IN EQUITY
GROUP Ordinary
Share Share Non-distri Accumu- Total
Capital Premium butable lated
Reserves Profits
R'000 R'000 R'000 R'000 R'000
Balances as at
30 June 1999 740 51 151 22 17 072 68 985
Net profit for
the year - - - 8 200 8 200
Ordinary dividend
declared - - - (4,810) (4,810)
Balances as at
30 June 2000 740 51 151 22 20 462 72 375
Net profit for the
current year - - - 10 647 10 647
Balances as at
30 June 2001 740 51 151 22 31 109 83 022
SUMMARISED CONSOLIDATED CASH FLOW STATEMENT
Audited Audited
12 months 12 months
ended ended
R'000 30.06.01 30.06.00
Cash generated from operations 25 364 25 760
Net interest paid (3 112) (2 549)
Taxation paid (8 556) (6 780)
Dividends paid (4 810) (4 810)
Net cash inflow from operations 8 886 11 621
Net cash outflow from investing activities (6 656) (15 529)
Net cash inflow from financing activities 332 10 676
Net increase in cash and cash equivalents 2 562 6 768
COMMENTARY ON RESULTS
Attributable income for the year ended 30 June 2001 was R10 647 000, a year-
on-year increase of 29,8% while headline earnings reflect an increase of
19,4%. As forecast in our interim report, both revenues and operating
results improved significantly during the second half of the financial year
under review.
The Group's gearing, at 29,5%, reflects a significant improvement from that
of the previous year, which was 44,2% and is well within the 35% guideline
set for the Group.
The Board is satisfied with the results achieved, considering the continued
difficult trading conditions.
PROSPECTS
Productivity improvements are expected to gain momentum in the immediate
future following the completion of an in-depth review and re-design of
business processes necessary for the implementation of new company-wide
computer systems. These systems will support a re-aligned company
structure, the emphasis of which is a single sales force that will provide
improved levels of service to our diverse customer base which demands ever-
increasing sophistication in its communication requirements.
In Johannesburg and Cape Town the facilities used for the production of
customers mailed communications are being enlarged and improved. From the
keen interest shown by customers in the development of these facilities,
good prospects remain for securing other long-term profitable contracts.
Over the past year the Company has been collaborating on a number of
projects with a few South African-based FMCG companies. As a consequence,
it is anticipated that an exciting range of new products will soon be
offered.
It is expected that continued emphasis in the South African market on the
outsourcing of non-core activities by medium- and large-sized organisations
will ensure that Paragons Fulfillment Division will continue to show
significant growth.
THE BIDVEST GROUP OFFER
Pursuant to the announcement dated 17 July 2001, we confirm that the net
asset value condition has been met and accordingly advise that the offer
price would be 76c per share, on fulfilment of the remaining suspensive
conditions being, primarily, approval under the Competitions Act and the
conclusion of a due diligence review.
DIVIDEND DECLARATION
As a consequence of the conditions of the potential offer, the Board has not
declared a dividend.
ANNUAL FINANCIAL STATEMENTS
The annual financial statements will be mailed to shareholders during
September 2001.
On behalf of the Board
DMJ Ncube (Non-executive Chairman)
DJ Kidd (Chief Executive Officer)
Cape Town
6 September 2001
Registered office:
Bofors Circle, Epping Industria 2, Cape Town 7475
Transfer Secretaries: Ultra Registrars (Pty) Ltd, P O Box 4844, Johannesburg
2000
Directors: DMJ Ncube, JJJ Coetzee, DJ Kidd*, MWT Brown
(alt CR Howell), DR Bulder (Dutch)*, KO Fordwor,
MD Macfarlane (British)* and CG McWilliams*.
* Executive Directors
