| Fri 21 Sep 2001, 0:00 | | Digicore - Annual Results & Withdrawal Of Cautiona |
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DigiCore Holdings Limited
Share code: DGC
ISIN: ZAE000016945
Nature of business
DigiCore is maturing as a truly 21st century technology company with real-
time management systems solutions. We aim to provide pertinent management
information to our customers for the efficient management of mobile assets,
using the most advanced information technology.
Financial performance
The year ended 30 June 2001 marked DigiCore's third year as a JSE-listed
company and we exceeded our forecast by achieving R308 million revenue. This
was a 217% increase over the R97.3 million recorded in the previous year
reflecting successful completion of phase one of the five-year debis Fleet
Management contract, worth R150 million.
Phase two is now in progress, resulting in a steady revenue stream from
deinstallation, reinstallation and maintenance of C-Track units in the
outsourced Telkom fleet.
Operating profit increased in line with revenue, reaching R35.0 million
(2000: R3.8 million). Net financing costs declined materially for the period
as the group's cash position improved by R32.5 million.
Exports accounted for 15.5% of all C-Track units sold during the period. A
significant increase is expected during the forthcoming year.
Headline earnings per share increases to 10.82 cents (2000: 0.46 cents). No
dividend was declared (2000: 00 cents).
Market overview
These pleasing results were achieved against the backdrop of the transport
industry affected by lower consumer demand, continual fuel increases and
persistent payload overcapacity aggravated by low transportation rates.
Discounting the debis Fleet Management contract, DigiCore maintained its
market share in a competitive sector without sacrificing sales margins.
South African transport companies and fleet owners are taking advantage of
the fleet management solutions in improving efficiency and profitability.
DigiCore is well positioned in a market that offers immense potential for
our tailored fleet solutions.
Business overview
DigiCore's key business objectives and strategies during the review period
were geared towards reprofiling the company as South Africa's foremost
provider of fleet management systems solutions.
DigiCore has completed an extensive business optimisation process,
streamlining the business and instilling teamwork between our business
units, resulting in improved efficiencies and enhancing customer
satisfaction.
We have evolved into a customer-focused company, looking to strike
partnerships with our clients, where our value propositions accentuate cost
savings, expertise and quality service.
Targeting larger corporations and fleet managers, locally and
internationally, we acknowledge that service excellence and superior
products will be key distinguishing factors between DigiCore and
competitors.
We place emphasis on the research and development of competitive products to
meet market demands for value added, flexible, feature-rich and cost-
efficient technology. Prior to the year-end, we introduced the first
locally developed depot based fuel management system, DigiCore Fuel
Solutions. The system will generate cost savings for transport and vehicle
operators, where fuel cost is the biggest single expense.
Intellectual property
The intellectual and brand value property of the group was independently
valued at R181 million during the year.
Prospects
The outlook for the new financial year is optimistic, given the increasing
opportunities in Europe and the 50% stake acquired in DigiCore Europe
(previously C-Track Europe). The rising trend of outsourcing fleets locally
will further underpin our growth.
With new sales strategies in place, opportunities to market the newly-
acquired fuel management system, the Beka-Max central lubrication system and
EEC-approved Elson speed limiter, have greatly increased.
Along with our successful empowerment partner, Pamodzi Investment Holdings
Limited, we have identified strategic partners in the vehicle manufacturing,
vehicle retail, financing and insurance industries, who will, in turn, add
further value to our customers.
Achieving local and offshore sustainable and profitable growth rests on our
success in becoming one of the primary providers of fleet management
services and information in our chosen markets. DigiCore is a capable
enterprise and we are confident the group will continue to add value to its
stakeholders by maintaining growth worldwide.
Nick Vlok Dr Leonardus Truter
Executive deputy chairman Group managing director
DIGICORE HOLDINGS LTD
GROUP AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2001
INCOME STATEMENT
2001 2000
R'000 R'000
Revenue 308,495 97,267
Operating profit before depreciation 44,598 8,141
Depreciation 2,887 2,400
Amortisation of goodwill 1,218 0
Other amortisation 5,449 1,923
Net operating profit 35,044 3,818
Net finance (cost) / income -479 -2,505
Profit before tax 34,565 1,313
Taxation 11,381 272
Profit after taxation 23,183 1,041
Attributable to outside shareholders 67 0
Earnings attributable to ordinary 23,116 1,041
shareholders
Statistics
Number of shares in issue (000's)
- end of period 239256 239256
- weighted average 239256 225810
Headline earnings per share (cents) 10.82 0.46
Earnings per share (cents) 9.66 0.46
RECONCILIATION OF HEADLINE EARNINGS
Profit after taxation 23,116 1,041
Amortisation of goodwill 1,217 0
Cost of investment written down 1,562 0
Headline earnings 25,895 1,041
DIGICORE HOLDINGS LTD
GROUP AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2001
BALANCE SHEET
2001 2000
R'000 R'000
ASSETS
Non-current assets 44,622 46,087
Property, plant and equipment 10,155 7,025
Intangible assets 26,785 31,022
Investments 1,082 881
Loans receivable 6,600 7,159
Current assets 84,738 58,946
Inventories 23,233 22,168
Trade receivables 43,373 36,762
Term deposits 11,153 16
Bank balances 6,979 0
TOTAL ASSETS 129,360 105,03
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EQUITY AND LIABILITIES
Capital and reserves 92,663 69,482
Issued capital 36,826 36,826
Minority interest in subsidiaries 65 0
Distributable reserve 55,772 32,656
Non-current liabilities 2,227 5,178
Long term liabilities 2,063 4,649
Deferred taxation 164 529
Current liabilites 34,470 30,373
Taxation 7,472 1,706
Trade payables 25,911 12,916
Current portion of long term 1,087 1,331
liabilities
Bank overdraft 14,420
TOTAL EQUITY AND LIABILITIES 129,360 105,03
3
Net asset value per share (cents) 38.7 29.0
STATEMENT OF CHANGES IN EQUITY
Balance at beginning of period 69,482 44,183
Issue of share capital and share 0 24,259
premium
Net profit for the period 23,116 1,041
Minority interest 65 0
Balance at end of period 92,663 69,483
DIGICORE HOLDINGS LTD
GROUP AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2001
SUMMARISED CASH FLOW STATEMENT 2001 2000
R'000 R'000
Cash generated by operations 49,427 8,695
Net financing costs (479) (2,505)
Taxation paid (5,979) (7,939)
Cash flow from operating activities 42,969 (1,749)
Cash flow from investing activities (8,190) (6,393)
Cash flow from financing activities (2,244) 1,812
Net movement in cash resources 32,535 (6,330)
Cash & cash equivalanents at
beginning of period (14,403) (8,073)
Cash & cash equivalanents at
end of period 18,132 (14,403)
ACCOUNTING POLICIES
The accounting policies used in the preparation of these financial
statements are consistent with those used in the annual financial statements
for the year ended 30 June 2000 and are in accordance with the South African
Statements of GAAP.
WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
Further to the cautionary announcement published on 23 August 2001
shareholders are advised that Digicore is no longer involved in negotiations
which could have an effect on the price at which Digicore's shares trade on
the Johannesburg Stock Exchange.
Shareholders are accordingly advised that caution is no longer necessary
when dealing in Digicore's shares.
DIVIDENDS
The Board has decided that no dividend will be paid in respect of the year
ended 30 June 2001.
COMPANY SECRETARY
FW Britz
REGISTERED ADDRESS
20 Eddington Crescent, Highveld Technopark, Centurion
Tel: (012) 665-7300
TRANSFER SECRETARY
Computershare Services Limited, 2nd Floor, Edura, 41 Fox Street,
Johannesburg
(PO Box 61051, MARSHALLTOWN, 2107)
DIRECTORS
BP Vundla (Chairman)*, NH Vlok (Deputy Chairman), Dr LE Truter (MD), SR
Aberdein, FW Britz, D Du Rand, KR Stanton, JJ Du Plooy*, SA Msibi*, Ufikile
Khumalo*, NA Ntsele*+
* Non-executive
+ Alternate
WEBSITE
www.digicore.com
