| Thu 27 Sep 2001, 0:00 | | Spicer Holdings Limited - Audited Results For The |
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June 2001
Spicer holdings limited
Incorporated in the Republic of South Africa
Registration number 1984/005392/06
Share code: SPI
ISIN code: ZAE000016309
Audited results for the twelve months ended 30 June 2001
SUMMARISED GROUP INCOME STATEMENT
Audited Audited
2001 2000
June June
12 months 12 months
R000 R000
Revenue 90 103 160 264
Continued operations 90 103 56 247
Discontinued operations - 104 017
Operating profit/(loss)
before depreciation 2 928 (12 620)
Continued operations 2 928 (17 583)
Discontinued operations - 4 963
Depreciation (2 091) (4 379)
Finance costs (35) (4 258)
Amortisation of goodwill (7 928) (12 168)
Exceptional items (4 210) 28 935
Loss before taxation (11 336) (4 490)
Taxation (610) (2 411)
Loss after taxation (11 946) (6 901)
Attributable to outside shareholders - 6 579
Loss for the year (11 946) (322)
Headline earnings/(loss)
per share (cents) 0,1 (4,2)
Headline earnings/(loss)
per share on continued
operations (cents) 0,1 (2,3)
Fully diluted headline
earnings/(loss)
per share (cents) 0,1 (4,0)
Attributable loss per share (cents) (2,9) (0,1)
Number of shares (000)
- in issue 409 519 404 611
- weighted average 409 519 404 611
- fully diluted 426 419 421 511
Reconciliation of headline earnings
Loss for the year (11 946) (322)
Amortisation of goodwill 7 928 12 168
Exceptional items 4 210 (28 935)
Headline earnings 192 (17 089)
Continued operations 192 (9 168)
Discontinued operations - (7 921)
Exceptional items
Profit on sale of subsidiary
and investments 995 58 410
Provision against loan to share trust (1 996) (3 000)
Establishment and restructuring costs (3 209) (26 475)
Before taxation (4 210) 28 935
Taxation effect - -
After taxation (4 210) 28 935
These results are based on the same accounting policies as applied
in the previous year ended 30 June 2000.
SUMMARISED CASH FLOW STATEMENT
Audited Audited
2001 2000
30 June 30 June
12 months 12 months
R000 R000
Cash outflow from operating
activities (14 706) (41 599)
Cash utilised in operations (13 097) (36 157)
Net finance costs (35) (4 258)
Taxation paid (1 574) (1 184)
Cash inflow from investing
activities 66 954 (63 814)
Acquisition of subsidiaries (3 594) (54 335)
Expenditure for expansion - (12 181)
Proceeds on disposal of
subsidiaries 71 000 -
Additions to fixed assets (452) 2 702
Cash outflow from financing
activities (36 067) 56 957
Increase/(decrease) in cash
resources 16 181 (48 456)
SUMMARISED GROUP BALANCE SHEET
AT 30 JUNE
2001 2000
ASSETS
Non-current assets 14 231 25 995
Fixed assets 2 511 4 621
Goodwill 11 316 19 374
Investments and loans 404 2 000
Current assets 48 065 113 790
Inventory 1 994 0
Accounts receivable 19 494 87 741
Bank and cash balances 26 577 26 049
Total assets 62 296 139 785
EQUITY AND LIABILITIES
Capital and reserves 14 718 25 047
Outside shareholder's interest 374 -
Non-current liabilities 1 295 1 155
Current liabilities 45 909 113 583
Interest bearing 21 707 65 631
Due to vendors of business - 6 190
Other 24 202 41 762
Total equities and liabilities 62 296 139 785
Net asset value per ordinary
share (cents) 3,6 6,2
Tangible net asset value
per ordinary
share (cents) 0,8 1,4
STATEMENT OF CHANGES IN EQUITY
Audited Audited
2001 2000
30 June 30 June
12 months 12 months
R000 R000
Balance at beginning of period 25 047 16 766
Share capital and share premium 2 643 8 603
Issue of share capital
and share premium 2 643 43 831
Goodwill arising on the acquisition
of subsidiaries - (35 228)
Movements in distributable reserves (12 972) (322)
Net loss for the period (11 946) (322)
Forex translation loss
on investment (1 026) -
Balance at end of period 14 718 25 047
COMMENTS
1 Comments on results
The results for the year ended June 2001 represent the trading activities of
Spicer's subsidiaries, Inter IT-Konsult AB (Sweden) and MIS Corporate
Defence Solutions Limited (United Kingdom).
The lower revenue for the year of R90,1 million (2000: R160,3 million) is as
a result of the disposal of certain assets during the previous year. With
effect 1 July 2001, Spicer disposed of MIS, as announced on 16 August 2001.
The revenue of the group including MIS, increased from R56,2 million to
R90,1 million. Headline earnings improved from a loss of R17 million to a
profit of R192 000.
After an improved performance during the first six months, Spicer also
experienced the negative impacts of the worldwide lower IT spend during the
second half of the year.
2 Disposal of MIS Group Holdings Limited
As a result of the continuing worldwide slowdown in IT spend, MIS continued
to require cash funding to carry on its operations. Spicer is not currently
in a position to continue to provide the required funding to MIS, and the
directors have therefore resolved to dispose of Spicer's entire
shareholding, options, convertible loan stock and loan accounts in MIS in an
attempt to avoid the closure of the MIS business.
If the disposal had been effective at the beginning of the year the group
results would have been as follows:
R000
Revenue 51 912
Operating profit before depreciation 3 559
Headline earnings 2 478
3 Solvency and going concern
The group remains solvent, and with the disposal of MIS Group Holdings
Limited, the risk of future negative cash flows has been reduced. The group
is dependent upon the continued financial support of its financiers. The
financiers continue to provide facilities on a basis, which is consistent
with that of the previous year. The company has concurred with the
financier's request to grant as security Spicer's interest in Inter IT-
Konsult AB. The company had previously ceded its investment in MIS as
security.
4 Litigation
As communicated with shareholders in the 2000 annual report, Spicer is
involved in some legal disputes. The current status is as follows:
REI Finance Limited: Based on legal opinion obtained from Senior Counsel,
Spicer is of the opinion that it will be successful in enforcing its rights
against REI Finance Limited in terms of the agreement concluded with the
said company.
Spicer Specialised Services Holdings (Proprietary) Limited: Terexko Limited
has indemnified Spicer against any loss or liability which Spicer may incur
as a result of the proceedings instituted, save in respect of one matter.
Spicer is of the opinion that it will be successful in defending the matter
in respect of which it has not been indemnified.
Spicer has made the necessary provisions in its financial statements for
possible legal costs
to be incurred in respect of the aforementioned matters.
5 The future
Although Inter IT-Konsult, Spicer's only operating asset performed well
during the first six months, the company was hurt by the slowdown in Sweden
towards the end of the year. Current trading conditions
in Sweden remain difficult.
6 Constitution of the Board of Directors
The executive chairman of the Spicer Board, Mr JW du Toit, has tendered his
resignation with effect from 23 August 2001.
It is the intention of the board to appoint a new member in the near future.
7 Dividends
No dividends were declared for the period under review.
On behalf of the Board
Coert Vorster
Acting Chairman
27 September 2001
Registered office 2nd Floor West Court Sandown Village cnr Maude Street
& Gwen Lane Sandown
Directors Coert Vorster* Danie de Villiers Bobby Makwetla*
* Non-executive
Tel +27 11 884 0727 Fax +27 11 883 7868
E-mail info@spicer.co.za Website www.spicer.co.za
Sponsor
Pricewaterhousecoopers
www.spicer.co.za
