|
results for the six months ended 31 August 2001
Bytes Technology Group Limited
IT Services for the Enterprise
(Registration number 1911/003874/06)
(Incorporated in the Republic of South Africa)
(Formerly USKO Limited)
Share code: BTG
ISIN code : ZAE 000029526
Turnaround achieved
Operating profit R45,1 million
Headline earnings 14,26 cents
Strong balance sheet
Unaudited consolidated interim financial results for the six months ended 31
August 2001
Income statement
Six months Six months Year
ended ended ended
31 August 31 August 28 February
2001 2000 2001
Figures in R000 (Unaudited) (Unaudited) (Audited)
Revenue 1 138 640 372 273 763 271
Continuing operations 1 126 065 347 677 723 391
Discontinuing operations 12 575 24 596 39 880
Operating profit/(loss) 45 128 (41 936) (59 017)
Continuing operations 51 889 (26 099) (27 094)
Discontinuing operations (6 761) (15 837) (31 923)
Net interest paid (1 465) (10 922) (10 034)
Equity accounted
investment (246) (6 206) (11 886)
Profit/(loss) before
goodwill amortisation
and exceptional items 43 417 (59 064) (80 937)
Goodwill amortisation (29 314) (3 859) (11 304)
Exceptional items 2 504 (1 271) (21 753)
Profit/(loss)
before taxation 16 607 (64 194) (113 994)
Taxation (13 839) (422) (1 613)
Profit/(loss)
after taxation 2 768 (64 616) (115 607)
Attributable to
outside shareholders (9 181) 3 980 8 277
Attributable to
ordinary shareholders (6 413) (60 636) (107 330)
Weighted number of
shares in issue (000) 150 442 17 122 45 214
Loss per share -
Basic (cents) (4.26) (354.13) (237.38)
Headline earnings/(loss)
per share - Basic (cents) 14.26 (324.30) (156.00)
Notes:
1. Exceptional items
Asset impairment
provisions
reversed/(raised) 2 514 1 834 (17 898)
Share of associate's
goodwill amortisation (674) - (1 374)
Share of associate's
exceptional items 2 985 - -
Vendor liability raised - (2 477) (2 775)
(Loss)/profit on
disposal of businesses (2 321) (628) 294
2 504 (1 271) (21 753)
2. Headline earnings
Attributable earnings
is reconciled to
headline earnings
as follows:
Attributable earnings (6 413) (60 636) (107 330)
Goodwill amortised 29 314 3 859 11 304
(Profit)/loss on
disposal of
fixed assets (30) - 3 761
Exceptional items (2 504) 1 271 21 753
Outside shareholders'
portion of
exceptional items 1 079 - -
Headline earnings 21 446 (55 506) (70 512)
3. The accounting policies and methods of computation followed in this
interim report are consistent with the annual financial statements for the
year ended 28 February 2001, and are prepared in accordance with Statements
of Generally Accepted Accounting Practice.
4. The current period results are not comparable with those of prior periods
due to significant restructuring that has been undertaken and acquisitions
made at the end of February 2001.
5. Diluted earnings per share and diluted headline earnings per share are
not materially different from basic earnings per share and headline earnings
per share respectively.
Abridged balance sheet
31 August 31 August 28 February
2001 2000 2001
Figures in R000 (Unaudited) (Unaudited) (Audited)
Assets
Non-current assets 417 866 107 551 431 340
Fixed assets 91 574 56 607 103 400
Investment and loans 43 703 30 800 34 190
Goodwill 251 462 20 245 262 630
Deferred taxation 31 127 (101) 31 120
Current assets 706 192 152 562 640 169
Inventory 179 608 5 194 147 536
Accounts receivable 418 132 113 627 333 735
Bank and cash 108 452 33 741 158 898
Total assets 1 124 058 260 113 1 071 509
Ordinary shareholders'
equity 449 744 (111 124) 452 430
Outside shareholders'
interest 86 304 3 095 74 405
Long-term liabilities 33 009 929 27 071
Current liabilities 555 001 367 213 517 603
Bank overdraft 14 004 181 867 12 562
Other current
liabilities 540 997 185 346 505 041
Total equity and
liabilities 1 124 058 260 113 1 071 509
Shares in issue at
end of period (000) 150 608 67 710 150 276
Net asset value
per share (cents) 298.62 (164.12) 301.07
Abridged cash flow statement
Six months Six months Year
ended ended ended
31 August 31 August 28 February
2001 2000 2001
Figures in R000 (Unaudited) (Unaudited) (Audited)
Operating activities (20 892) (40 629) (18 961)
Cash generated by/
(utilised in) operations 63 779 (29 947) (32 601)
Changes in working
capital (75 561) 1 928 28 943
Net finance costs (1 465) (10 922) (10 034)
Taxation paid (7 645) (1 686) (5 267)
Cash utilised in
operating activities (20 892) (40 627) (18 959)
Dividends paid - (2) (2)
Net investing
activities (39 652) (5 981) 36 980
Financing activities 8 656 1 810 231 643
Net funds
(utilised)/generated (51 888) (44 800) 249 662
Cash and cash equivalents
- at beginning of period 146 336 (103 326) (103 326)
- at end of period 94 448 (148 126) 146 336
Abridged segmental analysis
Six months Six months Year
ended ended ended
31 August 31 August 28 February
2001 2000 2001
Figures in R000 (Unaudited) (Unaudited) (Audited)
Revenue
Software Products and
Solutions 59 701 67 821 115 980
Managed Networking
Services 103 111 62 935 147 670
Enterprise
Solutions (UK) 294 728 216 921 459 741
Digital Healthcare
Solutions (Mediswitch) 16 606 7 722 17 552
Enterprise Wide
Information Products
and Services 202 917 - -
Business Communication
Solutions 73 915 - -
Document Management
Services 391 693 - -
Total continuing
operations 1 142 671 355 399 740 943
Discontinuing
operations 12 575 24 596 39 880
Total all operations 1 155 246 379 995 780 823
Less equity accounted
operations (16 606) (7 722) (17 552)
1 138 640 372 273 763 271
Operating profit/(loss)
Software Products and
Solutions (4 169) (13 587) (16 221)
Managed Networking
Services (3 890) (11 621) (18 264)
Enterprise Solutions (UK) 14 162 1 199 6 930
Digital Healthcare
Solutions (Mediswitch) (246) (5 579) (10 922)
Enterprise Wide
Information Products
and Services 12 698 - -
Business Communications
Solutions 1 481 - -
Document Management
Services 30 993 - -
Other 614 (2 090) 461
Total continuing
operations 51 643 (31 678) (38 016)
Discontinuing operations (6 761) (16 464) (32 887)
Total all operations 44 882 (48 142) (70 903)
Less equity accounted
operations 246 6 206 11 886
45 128 (41 936) (59 017)
Abridged statement of changes in equity
31 August 31 August 28 February
2001 2000 2001
Figures in R000 (Unaudited) (Unaudited) (Audited)
Balance at beginning
of period 452 430 (43 860) (43 860)
Attributable to
shareholders (6 413) (60 636) (107 330)
Issue of shares 1 097 - 613 590
Rights offer costs - (6 708) (6 708)
Foreign currency
translation reserve 2 630 80 (3 262)
Balance at end
of period 449 744 (111 124) 452 430
Supplementary information
Six months Six months Year
ended ended ended
31 August 31 August 28 February
2001 2000 2001
Figures in R000 (Unaudited) (Unaudited) (Audited)
Capital commitments 2 431 - 1 272
Capital expenditure 11 418 4 085 8 800
Contingent liabilities 17 651 35 961 43 944
Depreciation 11 759 16 015 38 635
Lease commitments 146 987 41 314 163 013
Listed investments
- carrying amount 57 133 57
- market valuation 57 133 57
Unlisted investments
- carrying amount 292 1 670 1 692
- directors' valuation 292 1 670 1 692
Message to stakeholders
Overview
Notwithstanding ongoing challenging market conditions and the global
downturn in the IT industry, the first six months of the 2002 financial year
for the restructured Bytes Group has met expectations with pleasing
performances both from the original USKO IT operations and the former
Fintech Group companies. Bearing in mind that the period under review
continued to bear significant costs of a non-recurring nature emanating from
the restructuring and rationalisation process, the performance is acceptable
and augurs well for an improved second half. Stakeholders will appreciate
that the current period results are not comparable with those of prior
periods due to the significant restructuring carried out both during and at
the end of the financial year ended February 2001.
Results
The group posted an operating profit of R45.1 million (2001: R41.9 million
loss) and a profit before tax, goodwill amortisation and exceptional items
of R43.4 million (2001: R59.1 million loss).
Headline earnings per share were 14.26 cents (2001: loss per share 324.3
cents). Net cash balances amounted to approximately R94.4 million after
funding net investment activities during the period of R39.7 million.
Improved operating performance and an increase in the level of business
conducted by the group necessitated a commensurate increased investment in
working capital of R75.6 million, so positioning the group to meet its
future operational requirements.
Operations
Good progress was achieved in returning most of the original USKO IT
operations to either a break-even or a profitable position. Specifically,
the turnarounds in Mediswitch (emanating from the successful merger with
QEDI to form Digital Healthcare Solutions) and our enterprise solutions
business in the United Kingdom, are particularly satisfying. Digital
Healthcare Solutions (DHS) is now the pre-eminent business-to-business
solutions provider in the healthcare industry.
Both the Networking operations and Uskotec (a joint venture with Old
Mutual), although not profitable for the period, nevertheless improved
substantially and should produce positive results in the second half. Our
Business Solutions operations (including ERP) returned to profitability
during the period.
National Data Systems (NDS) had an excellent first half but is anticipated
to produce lower profits in the second half due to a relatively higher mix
of orders and billing in the first 6 months. Nevertheless, a satisfactory
performance for the full year is envisaged. Xerox South Africa continued the
exceptional progress it has achieved over several years and yet another
acceptable performance should be produced for the full year. Moreover, the
recently acquired Xerox Africa operations have more than met the performance
projected at the time of acquisition. Alcatel Business Systems had a
relatively quiet first period but in line with normal seasonal trends is
expected to perform strongly in the second half.
In aggregate, the directors are satisfied with the operational progress
achieved.
Strategic intent
BTG will continue to leverage on the synergies available from the
comprehensive range of IT activities encompassed by the much enlarged and
restructured BTG group. Appropriate niche local acquisitions will be sought
to facilitate this process, as will disposals of any non-core operations as
well as the formation of further strategic partnerships. Greater emphasis
continues to be placed on securing a suitable acquisition in the United
Kingdom in order to complement and enlarge our already successful United
Kingdom operations. It should be acknowledged that securing a first class
business in the United Kingdom is made more difficult given the current IT
markets and accordingly time scales on this strategy cannot be defined.
Prospects
The directors are of the opinion that the results of the group will show
further improvement during the second half despite the difficult trading
conditions referred to earlier. However this should be seen against the
potential effect that the recent tragedy in the United States may have on
global economies.
Dividend
No dividend is proposed for the period under review.
On behalf of the Board
David Redshaw Peter Riskowitz
Executive Chairman Group Financial Director
27 September 2001
A MEMBER OF THE ALTRON GROUP
This report is available on the company website at www.btgroup.co.za.
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
