| Thu 11 Oct 2001, 0:00 | | Prada Technologies Limited - Audited Group Results |
|
PRADA TECHNOLOGIES LIMITED
Share code: PDH
ISIN: ZAE000022232
GROUP INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2001
JUNE JUNE
2001 2000
R R
REVENUE 7,564,149 11,084,551
OTHER INCOME 21,262 81,682
OPERATING EXPENSES (6,034,556) 4,332,521)
Direct contract costs (2,139,305) (729,801)
Staff costs (1,320,025) (2,027,819)
Depreciation and amortisation (560,943) (618,801)
Joint venture costs - (25,972)
Other operating expenses (2,014,283) (930,128)
OPERATING PROFIT before
interest received 1,550,855 6,833,712
NET INTEREST RECEIVED 529 7,891
PROFIT before taxation 1,551,384 6,841,603
TAXATION (565,389) (2,100,879)
985,995 4,740,724
MINORITY INTEREST (7,869) 65,599
PROFIT before extraordinary
item 978,126 4,806,323
EXTRAORDINARY ITEM (11,771,241) -
CONSOLIDATED LOSS/PROFIT
FOR THE YEAR (10,793,115) 4,806,323
Headline earnings per share
(cents) 1.32 6.13
Diluted headline earnings
per share (cents) 1.32 6.09
Earnings per share (cents) 1.32 6.06
Diluted earnings per share
(cents) 1.32 6.02
GROUP BALANCE SHEET AT 30 JUNE 2001
JUNE JUNE
2001 2000
R R
ASSETS
NON-CURRENT ASSETS 10,653,237 21,785,554
Plant and equipment 3,439,892 15,459,264
Goodwill on acquisition of
subsidiary 7,213,345 6,326,290
CURRENT ASSETS 10,366,747 10,600,506
Inventory 193,866 405,357
Trade receivables 3,987,675 3,946,390
Other receivables 6,136,000 6,136,000
Cash & cash equivalents 49,206 112,759
TOTAL ASSETS 21,019,984 32,386,060
EQUITY AND LIABILITIES
EQUITY AND RESERVES 16,829,641 27,622,757
Share capital 17,566,434 17,566,434
Accumulated deficit (5,986,793) 4,806,323
Vendors loans 5,250,000 5,250,000
MINORITY INTEREST 71,722 63,853
NON-CURRENT LIABILITY
Deferred taxation 2,666,268 2,100,879
CURRENT LIABILITIES 1,452,353 2,598,571
Trade payables 1,235,099 294,460
Short term loans - 2,229,111
Provisions 217,254 75,000
TOTAL EQUITY AND LIABILITIES 21,019,984 32,386,060
Net asset value per share
(cents) 20.4 34.4
Fully diluted net asset value
(cents) 20.4 33.4
GROUP CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE 2001
JUNE JUNE
2001 2000
R R
CASH RETAINED FROM OPERATING
ACTIVITIES 3,352,761 3,490,878
Cash received from customers 7,510,199 7,138,161
Cash paid to suppliers and
employees (4,157,967) (3,655,174)
CASH GENERATED BY OPERATING
ACTIVITIES 3,352,232 3,482,987
Net interest received 529 7,891
CASH UTILISED BY INVESTING
ACTIVITIES (1,187,203) (8,621,265)
Investment to expand
operations (1,187,203) (8,648,117)
Investments in joint ventures
operations (14,014) (224,818)
Acquisition & development of
plant and equipment (298,799) (1,171,476)
Net assets of operations and
subsidiaries acquired (887,055) (1,129,452)
Increase in other receivables - (6,136,000)
Outstanding refundable VAT 12,665 13,629
Proceeds on disposal of
plant & equipment - 26,852
CASH EFFECTS OF FINANCING
ACTIVITIES (2,229,111) 5,187,374
Decrease in short term
borrowing (2,229,111) 2,223,372
Proceeds of share issue - 2,964,002
NET INCREASE IN CASH AND
CASH EQUIVALENTS (63,553) 56,987
CASH AND CASH EQUIVALENTS
at beginning of year 112,759 55,772
CASH AND CASH EQUIVALENTS at
end of year 49,206 112,759
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2001
Share Share Accumulated Vendors Total
capital premium profit loans
(loss)
R R R R R
Balance
at 30 June 2000 802 #REF! 4,806,323 5,250,000 #REF!
Profit for the
year before
accounting
for
extraordinary
item 978,126 978,126
Brainiack
Development 11,771,241 11,771,241
Balance at
30 June 2001 802 #REF! (5,986,792) 5,250,000 #REF!
GROUP RESULTS FOR THE YEAR ENDED 30 JUNE 2001
EXECUTIVE CHAIRMAN'S REPORT
GENERAL
Despite adverse economic conditions and declining international confidence
resulting from instability in neighbouring countries, as well as
difficulties experienced by African countries further north, Prada has
performed satisfactorily. As with all companies in the Capital Venture
sector of the Johannesburg Stock Exchange, Prada will have to continue to
consolidate its position in the marketplace for a substantial period before
it will gain the investment confidence of local investment institutions.
In this difficult economic environment, we are continuing to focus on
reducing costs and are examining ways of further improving the efficiency
and effectiveness of our business.
BUSINESS OVERVIEW
The Group Results reflects the initial roll out installation and
implementation of telecommunications solutions in the Southern African
region.
The group is of the opinion that it's initiatives are very suitable for the
Southern African regions and has placed it's focus outside the borders of
South Africa where communication systems are poor and the group can offer
affordable communication systems in various markets. Although management is
satisfied with the margin achieved, difficult circumstances and work
environment hampers fast progress and contracts tend to take much longer
than initially planned for. Management is confident that the current
momentum can be maintained and increased in the next financial year.
COMPANY CALL
The first alpha numeric system in South Africa is well received and the
company is meeting it's budgets in respect of sales roll out. Call revenue
is still slow due to the lack of advertising and marketing by companies who
have taken up numbers. It is expected that as soon as the advertising
campaigns, which are currently being produced, are launched, the alpha
numeric system will contribute substantial income towards the company's
profit expectations. We are satisfied with the markets achieved.
BRAINIACK DEVELOPMENT
Due to local license authorities, constant changing of software and other
participants in this market together with high cost of further development,
the directors have decided to write off this project in total.
ACQUISITION OF BRAINWARE MITS (PTY) LTD - JA VILJOEN
It was previously reported that this transaction was cancelled and the
company is currently in litigation to recover funds paid to Mr J A Viljoen
on this transaction.
PROSPECTS
The Directors of Prada are confident that the company will continue to
expand its share of the rapidly growing market for wireless communications
systems, but feel that other avenues of business should also be
investigated.
DR A HAY
CHAIRMAN
Directors Dr A Hay (Chairman), A Kok (Managing), FJ Nel (Financial), A
Bukes*, Dr G van Niekerk*, BFP van den Berg*,
*Non-executive
REGISTERED OFFICE
Domus Building
57 Kasteel Road
Lynnwood Glen
Pretoria
TRANSFER SECRETARIES
Mercantile Registars
PO Box 1053
Johannesburg
2000
