| Wed 26 Sep 2001, 0:00 | | Imperilog Limited - Audited Results For The Year E |
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IMPERILOG LIMITED
Share code: IPG
ISIN: ZAE000024006
IMPERILOG
DAWN LTD 28,3%
imperitek Logistics 50%
imperiFreight 100%
imperiHold 100%
imperiXpress 100%
imperiConsult 100%
imperiFin 100%
imperiSecure 100%
imperiLog Botswana 50%
* Profit before exceptional items of R38,3 million
* Headline earnings per share of 29,8 cents
Audited results for the year ended 30 June 2001
BUSINESS REVIEW
We are pleased to report the results for the year ended 30 June 2001. During
the year the Group made considerable progress in establishing itself as a
leading provider of logistics services to the technology sector and
companies involved in high-value consumer and industrial goods.
Profits from logistics operations exceeded the budgeted forecast for the
year. It is significant to note that the growth in all operating divisions
was purely organic and that business volumes increased despite the general
business slowdown experienced in the technology sector.
Our businesses are principally engaged in the full range of third party
logistics services such as warehouse management, inbound and outbound
logistics, financing, and security services. However, through ImperiConsult
we are able to provide fourth party logistics services, such as supply chain
design, implementation and management.
DIVISIONAL RESULTS
* ImperiHold provides logistics services to clients that are not compatible
with our technology supply chain process. This division experienced solid
growth during the past year and contributed 15% of the Group's operating
profit.
* ImperiXpress provides a dedicated outbound delivery service to selected
customers who are engaged in the distribution of high-value and time-
sensitive goods. It contributed 31% of the Group's operating profit, which
is consistent with the previous year.
* ImperiFin finances logistics-related assets on behalf of selected blue-
chip customers and is in the process of developing a supply chain financing
option for our customers. Good growth in earnings was achieved by this
division, with its contribution of 38% to operating profit.
* ImperiConsult provides supply chain management consulting services and is
a supplier of the Kardex range of vertical storage systems. Earnings were
consistent with those of the previous year, with its 7% contribution to
operating profit.
* ImperiFreight was established in June 2001 to provide seamless inbound
logistics services to our customers, such as customs clearing and freight
forwarding. Although this division did not contribute to these results, we
expect a healthy contribution next year.
* ImperiSecure provides security and risk management services to our
customers in support of the ever-increasing dangers associated with the
distribution of high-value goods in South Africa. This division was
established in May and contributed 1% of the Group's operating profit.
* ImperiLog Botswana is a 50% joint venture company, which provides a full
logistics service to our customers in Botswana.
* Imperitek Logistics is a 50% joint venture company with Siltek Limited. It
provides integrated supply chain management services to the Siltek group of
companies and other compatible customers. Imperitek's contribution to
operating profit of 8% was in line with our expectations.
FINANCIAL REVIEW
The financial results for the year ended 30 June 2001 have been prepared on
a basis consistent with the prior years. However, the previous year's
results have been restated, due to recent changes in GAAP regarding the
treatment of deferred taxation. The effect of this change was that an asset
of R43,8 million had to be raised in the previous year, due to unutilised
assessed losses carried forward. This asset increased the prior year's NAV
from 91 cents to 129 cents (42%). The resultant deferred tax charged in the
current year has a negative impact on headline earnings per share of 6 cents
and has no impact on cash flow.
In addition to the charge for deferred tax, the headline earnings per share
were negatively impacted by the weighted average number of shares in the
previous year.
Headline earnings from the Group's investment in associate, DAWN Limited,
decreased by 23% from 13,2 million to 10 million due to a difficult trading
year and the dilution of the Group's holdings in DAWN from 30,5% to 28,3%.
In addition to these factors the decrease in the market value of the
investment has resulted in a decision by the board to write down the
investment by R26,7 million in terms of the latest accounting statement
regarding impairment of assets (AC128).
A share buyback programme was completed during the year under review. A
total of 8799100 shares were purchased under the general authorities granted
by the shareholders and cancelled. One of the Group's subsidiary companies
also acquired 3053085 (2,75%) shares in the holding company. These shares
will be held as treasury stock by a subsidiary. The Company will continue
with its share buyback programme at current price levels. The 4500000
redeemable preference shares were also redeemed with effect from 1 July
2000.
During the period certain non-core assets were sold and a long-term
liability was settled with the proceeds generated from the sale. The Group's
property and financial assets are achieving acceptable returns and potential
contingencies are adequately provided for.
PROSPECTS
Imperitek, ImperiHold and ImperiXpress will continue to grow as our services
are extended to more customers in the high-value and time-sensitive goods
industries. However, it is anticipated that an exciting opportunity in the
area of supply chain financing exists. ImperiFin is well positioned with
adequate cash resources at its disposal to capitalise on this opportunity.
Furthermore, it is our aim to develop ImperiFreight in the year ahead to a
strong inbound logistics division, which will manage the freight forwarding
and clearing into South Africa of significant tonnages of high-value goods.
CONTINGENT LIABILITIES
The company has received a summons from Corpgro Limited relating to a
dispute over a business (which was sold in 1998) seeking damages of R40
million for alleged breach of warranty and non-disclosure. The directors and
the Group's legal advisors are of the opinion that the claim can be
successfully defended.
Dividend
The Board has decided not to recommend the payment of a dividend this year.
We wish to extend our sincere appreciation to all our employees for their
effort, commitment and enthusiasm during the past year.
For and on behalf of the board
Tak Hiemstra
Chairman
17 September 2001
INCOME STATEMENT
for the year ended 30 June 2001
2001 2000
R000 R000
Revenue 56 884 212 336
Continuing operations 56 884 33 333
Discontinued operations 179 003
Cost of sales 149 157
Gross profit 56 884 63 179
Net operating cost (35 752) (50 725)
Operating profit 21 132 12 454
Continuing operations 21 132 10 040
Discontinued operations 2 414
Net interest received 7 136 3 719
Equity accounted earnings of associates 10 080 13 153
Profit before exceptional items 38 348 29 326
Exceptional items (30 836) (15 270)
Profit before tax 7 512 14 056
Tax (6 901) 52
Earnings for ordinary shareholders 611 14 108
Adjusted for:
Exceptional items
- Impairment of investment in associate 26 747
- Exceptional items from associate 4 089 3 306
- Loss on discontinuance of operations 15 634
- Profit on sale of investments (1 232)
- Reversal of non-distributable reserve (2 438)
Headline earnings 31 447 29 378
Number of shares in issue:
Ordinary shares 102 030 610 110 829 710
Treasury stock held by a subsidiary 3 053 085
Preference shares 4 500 000
Weighted average number of shares 105 429 967 78 040 900
Earnings per share (cents)
- Basic
Headline earnings 29,8 39,9
Earnings for ordinary shareholders 0,6 19,2
- Diluted
Headline earnings 29,8 37,6
Earnings for ordinary shareholders 0,6 18,1
STATEMENT OF CHANGES IN EQUITY
for the year ended 30 June 2001
2001 2000
R000 R000
Opening balance 148 332 92 321
Change in accounting policy - deferred tax 43 809
Redemption of preference shares (4 500)
Repayment of share premium (3 879)
Issue of ordinary shares 37 289
Decrease in non-distributable reserves (2 438)
Share premium written off (36 757)
Buyback of shares:
- cancelled (7 699)
- held as treasury stock by a subsidiary (3 350)
Profit for ordinary shareholders 611 14 108
Closing balance 129 515 148 332
BALANCE SHEET
as at 30 June 2001
2001 2000
R000 R000
ASSETS
Non-current assets 145 705 193 396
Fixed assets 35 040 40 232
Deferred tax 37 076 43 809
Investment in associates 42 510 66 158
Loans and other investments 31 079 43 197
Current assets 28 214 21 399
Accounts receivable 9 709 8 802
Cash and cash equivalents 18 138 12 230
Tax prepaid 367 367
Total assets 173 919 214 795
Equity and liabilities
Capital and reserves 129 515 148 332
Total share capital 90 394 109 822
Non-distributable reserves 5 749 3 499
Distributable reserves 33 372 35 011
Non-current liabilities 11 042
Long-term loan 11 042
Current liabilities 44 404 55 421
Accounts payable 6 187 8 578
Taxation 168
Provisions 37 967 45 085
Short-term loans 82 1 758
Total equity and liabilities 173 919 214 795
CASH FLOW STATEMENT
for the year ended 30 June 2001
2001 2000
R000 R000
Cash flow from operating activities
Cash generated/(utilised) by
operations 13 968 86 744
Interest received 7 136 3 719
Tax paid (16)
Net cash flow from operating activities 21 104 90 447
Cash flow from investing activities
Divestment of operations 34 000
Decrease/(increase) in investments
and loans 10 510 (4 903)
Additions to fixed assets (4 597) (39 494)
Proceeds on disposal of investments 46 246
Proceeds from disposal of fixed assets 6 537 7 976
Net cash flow from investing activities 12 450 43 825
Cash flow from financing activities
Proceeds from issue of shares 532
Treasury stock purchased (3 350)
Repayment of share premium (3 879)
Buyback of shares (7 699)
(Repayment of)/proceeds from
long-term borrowings (11 042) 11 042
Net cash flow from financing activities (25 970) 11 574
Net increase in cash and cash equivalents 7 584 145 846
Cash and cash equivalents at
beginning of period 10 472 (135 374)
Cash and cash equivalents at end of period 18 056 10 472
Directors: Tak Hiemstra* (Chairman), Deon de Kock (Managing Director),
Phineas Baloi, Alan Lishman, Bill Lynch* (Irish), Rob Matthews*, Eric
Molobi*, Philip Maisel*, Ashley Mabogoane*, Johnson Njeke* (Alternate)
* Non-executive
Transfer secretaries: Mercantile Registrars Limited, 10th floor, 11
Diagonal Street, Johannesburg 2001
Registered office: ImperiLog Limited, Unit 7, Gallagher Place South,
corner Richards Drive and Suttie Road, Midrand 1685
Website: www.imperilog.co.za
ImperiLog - the most valuable link in your high-tech supply chain
