| Wed 12 Sep 2001, 0:00 | | Erp.com - Audited Results For The Year Ended 31 Ju |
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ERP.com Holdings Limited
Unlocking your software's potential
(Incorporated in the Republic of South Africa)
(Registration number 1998/010017/06)
("ERP.com" or "the Group")
www.erpcom.co.za
SHARE CODE: ERP
ISIN CODE: ZAE000019311
AUDITED RESULTS FOR THE YEAR ENDED 31 JULY 2001
Highlights
Revenue up 64%
Income before taxation up 52%
Income statement
2001 2000 Percentage
R'000 R'000 change
Revenue 69 121 42 131 64+
Net income before taxation 10 579 6 953 52+
after taking into account
the following items:
Net interest received 714 383
Depreciation 1 409 692
Goodwill amortised 43 -
Taxation 3 060 1 113 175+
Current 2 647 2 026
Deferred 413 (913)
Net income for the year
attributable to shareholders 7 519 5 840 29+
Weighted number of shares
on which earnings per share
is based ('000) 161 399 130 000
Earnings and headline
earnings per share (cents) 4,7 4,5 4,5+
Net asset value per
share (cents) 10,7 6,1 75+
Balance sheet
2001 2000
R'000 R'000
ASSETS
Non-current assets 6 297 3 940
Equipment 5 408 3 027
Goodwill 390 -
Deferred taxation 499 913
Current assets 25 759 17 259
Inventories 208 39
Contracts in progress 952 158
Trade and other receivables 15 064 9 950
Cash and cash equivalents 9 535 7 112
Total assets 32 056 21 199
EQUITY AND LIABILITIES
Capital and reserves 17 399 9 880
Share capital and premium 8 755 8 755
Retained income 8 644 1 125
Current liabilities 14 657 11 319
Trade and other payables 12 085 9 293
South African Revenue Service 2 572 2 026
Total equity and liabilities 32 056 21 199
Cash flow statement
2001 2000
R'000 R'000
Cash flows from operating activities 6 644 3 517
Net income before taxation 10 579 6 953
Adjustments including those not
affecting the flow of funds 737 (670)
Operating income before working
capital changes 11 316 6 283
Increase in working capital (3 285) (3 149)
Cash generated from operations 8 031 3 134
Net interest received 714 383
Taxation paid (2 101) -
Cash flows from investing activities (4 221) (2 282)
Cash flows from financing activities - 2 724
Proceeds from issue of shares - 12 045
Share issue expenses - (2 321)
Decrease in borrowings - (7 000)
Net increase in cash and cash
equivalents 2 423 3 959
Cash and cash equivalents
- at beginning of year 7 112 3 153
- at end of year 9 535 7 112
Statement of changes in equity
2001 2000
R'000 R'000
Share capital 161 161
Balance at beginning of year 161 *
Issued during the year - 161
Share premium 8 594 8 594
Balance at beginning of year 8 594 -
Issued during the year - 63 283
Goodwill written off - (52 368)
Share issue expenses written off - (2 321)
Retained income 8 644 1 125
Balance at beginning of year 1 125 (4 715)
Net income for the year 7 519 5 840
Total capital and reserves 17 399 9 880
*Amount less than R1 000.
COMMENTS
The directors are satisfied with the performance of the Group for the year
under review with revenue up 64% and profit before tax up 52% on last years
results. After removing the effect of an increased taxation charge in the
current year, earnings per share grew at an effective rate of 22,5%.
Operating margins of 14% reflect the strong services focus of the Group.
More importantly, the Group has met its financial and strategic objectives
for the second successive year and will continue to do so.
The Group remains debt free and will continue to finance organic growth
through existing cash resources. Consequently, no dividend is declared.
New business initiatives Activ8
Subsequent to year end, the Group was appointed the sole distributor for
PeopleSoft in South Africa. PeopleSoft is a world leader in enterprise
application software, providing e-business applications for customer
relationship management, human resources management, financials and supply
chain. A new subsidiary, Activ8, has taken over the local PeopleSoft
operation and customer base.
Group overview
ERP.com is focused on the implementation, integration and management of
enterprise wide information technology applications. The Group consists of
five operating subsidiaries each of which has a clear focus area and
solution capability. Business Intelligence has been merged within the e-
business companies to provide a more focused solution.
ERP.com JD Edwards e-business solutions
The implementation, support and outsourcing of end-to-end JD Edwards e-
business solutions. The Company has grown its customer base to over fifty
customers and has become one of the leading JD Edwards partners in South
Africa.
iServe SAP e-business solutions
The implementation, outsourcing and hosting of SAP e-business solutions.
iServe recently delivered the first mySAP.com ASP solution in South Africa
and anticipates a strong growth in annuity revenue from this source over the
next twelve to twenty four months.
Activ8 PeopleSoft e-business applications
The sale and support of PeopleSoft e-business applications software.
PeopleSoft 8 is a new generation of pure Internet-based software, which
enables collaboration with customers, suppliers and employees, supplemented
by powerful analytics and industry specific solutions. Twenty one leading
corporations in South Africa utilise PeopleSoft applications and Activ8
expects to significantly increase the customer base over the next twelve
months as more companies adopt the new technology.
SecureData IT and e-commerce Security solutions
The sale, support and management of a range of world class security
solutions in the areas of anti-virus, content security, network asset
management, intrusion detection and firewalls. SecureData is emerging as the
market leader in the rapidly expanding market of IT security with more than
seven thousand customers.
Bateleur Customised Solutions Network Solutions
The design, implementation and management of network solutions with a focus
on thin client and server based computing architecture necessary to support
the new Internet-based technologies. The Company has won the Citrix Partner
of the Year award for the last two years.outh Africa.
Prospects
The Group anticipates a strong performance over the next twelve months and
expects a minimum growth of 25% in earnings per share. All five subsidiaries
are in high growth markets and have established themselves as leading
players in their focus areas.
For and on behalf of the board of directors.
Peter Forsyth
Chief executive officer
12 September 2001
Johannesburg
Directors:
P Forsyth (Chief executive officer), DTK Brazier*, CJLessing*, GM Morris# MM
Spilhaus*, P Vallet#
* Executive directors # Non-executive directors
Company secretary:
A Ritzlmayr
Registered address:
ERP.com House, Nanyuki Office Park 69 Nanyuki Drive, Sunninghill, Sandton
2157
(PO Box 2880, Rivonia 2128)
Transfer secretaries:
Computershare Services Limited
4th Floor, Edura, 41 Fox Street, Johannesburg 2001
(POBox 61051, Marshalltown 2107)
