| Fri 12 Oct 2001, 0:00 | | Command Holdings Limited - Financial Results |
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Command Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1999/014759/06)
Share code: CMA ISIN: ZAE000023131
("Command")
Financial results for the SIX MONTHS ended 30 JUNE 2001
Group consolidated income statements
Reviewed Audited Reviewed
Six months Year Six months
ended ended ended
30 Jun 2001 31 Dec 2000 30 Jun 2000
R'000 R'000 R'000
Revenue 51 041 119 057 50 542
Continuing operations 51 041 87 933 32 836
Discontinued operations - 31 124 17 706
Costs incurred in producing
revenue (36 289) (92 300) (39 259)
Depreciation (579) (1 597) (681)
Selling and administrative
expenses (16 564) (30 941) (9 094)
Sundry income 73 185 96
Operating (loss)/income
before borrowing costs (2 318) (5 596) 1 604
Continuing operations (2 318) (1 927) 1 417
Discontinued operations - (3 669) 187
Borrowing costs net of
interest income (1 387) (1 422) (410)
Attributable (loss)/income (3 705) (7 018) 1 194
Continuing operations (3 705) (2 856) 1 094
Discontinued operations - (4 162) 100
Amortisation of intangibles (351) (2 658) (72)
Other non-operating expenses (625) (4 332) (448)
Other non-operating income 651 845 -
Net (loss)/income before
taxation (4 030) (13 163) 674
Taxation 74 540 (230)
Net (loss)/income for
the period (3 956) (12 623) 444
Outside shareholders' share of
(income)/loss (168) 41 (123)
Share of associated company
losses (53) (19) -
Ordinary shareholders'
net loss (4 177) (12 601) 321
Total number of shares
in issue ('000) 101 848 101 848 100 000
Weighted number of shares
in issue ('000) 101 848 101 386 99 160
Fully diluted number of shares
in issue ('000) 101 848 101 848 102 772
(Loss)/earnings per
share (cents) (4,10) (12,43) 0,45
Headline (loss)/earnings
per share (cents) (4,26) (8,40) 0,81
Fully diluted (loss)/earnings per
share (cents) (4,10) (12,37) 0,43
group consolidated Cash Flow Statements
Reviewed Audited Reviewed
Six months Year Six months
ended ended ended
30 Jun 2001 31 Dec 2000 30 Jun 2000
R'000 R'000 R'000
Cash flows from
operating activities 449 1 449 (330)
Cash utilised to service and
repay borrowings (2 312) (2 024) (492)
Cash flows from investing
activities 1 213 (4 947) (4 511)
Cash exchanges with
shareholders 168 795 795
Net movement in cash
resources (482) (4 727) (4 538)
Cash resources at
beginning of the year (4 727) - -
Cash resources at end of
the year (5 209) (4 727) (4 538)
NOTES:
1.Operating lease commitments
The group has operating lease commitments over and above the
liabilities disclosed in the balance sheet in the amount of R7 200 000 (31
December 2000 - R3 054 000).
2.Capital expenditure and commitments
Capital expenditure for the period amounted to R247 000 (31 December
2000 - R3 598 000).
The group had capital expenditure commitments at period-end of R500
000 (31 December 2000 - nil).
3.Contingent liabilities
The group has various contingent liabilities arising from rental
operations and installation warranties at Aludie Limited totalling
approximately R14 500 000.
4.Comparative figures
The results of Aludie Limited in which Command owns 47,7% have been
included in the comparative results for the period since acquisition on 1
June 2000.
5.Generally Accepted Accounting Practice
The six months financial statements comply with South African
Statements of Generally Accepted Accounting Practice and the accounting
policies used are consistent in all material respects with those used for
the December 2000 financial statements.
6.Review
The financial information set out in this report has been reviewed,
but not audited, by Deloitte & Touche whose review report is available to
members for inspection at the company's registered office.
Group consolidated balance sheets
Reviewed Audited Reviewed
30 Jun 2001 31 Dec 2000 30 Jun 2000
R'000 R'000 R'000
Assets
Non-current assets
Long-term tangible assets 3 436 5 614 7 259
Long-term intangible assets 5 290 5 483 5 903
Deferred taxation 873 768 871
Long-term rental
debtors and loans 1 614 1 182 5 965
Total non-current assets 11 213 13 047 19 998
Current assets
Inventories 1 873 2 370 1 074
Work in progress 753 2 423 1 124
Accounts receivable 16 666 15 814 14 879
Bank balances and cash 640 1 408 78
Total current assets 19 932 22 015 17 155
Total assets 31 145 35 062 37 153
Equity and liabilities
Capital and reserves
Share capital 1 1 1
Share premium 7 953 7 953 6 734
(Accumulated loss)/
retained income (16 778) (12 601) 321
Outside shareholders'
interests 1 994 1 826 2 351
Total capital and reserves (6 830) (2 821) 9 407
Non-current liabilities
Interest free deferred
liabilities 1 609 603 3 426
Income received in advance 442 498 214
Long-term borrowings 1 867 2 579 2 820
Total non-current liabilities 3 918 3 680 6 460
Current liabilities
Short-term borrowings 1 098 2 117 1 639
Accounts payable 23 034 21 425 10 304
Taxation 560 366 549
Bank overdrafts 5 849 6 135 4 616
Total current liabilities 30 541 30 043 17 108
Provisions 3 516 4 160 4 178
Total equity and liabilities 31 145 35 062 37 153
Net (liability)/asset value
per share (cents) (8,66) (4,56) 7,06
Group consolidated
StatementS of changes in equity
Share capital and Accumulated
share premium loss Total
R'000 R'000 R'000
Six months ended 30 June 2001 (reviewed)
Balance at beginning
of the year 7 954 (12 601) (4 647)
Ordinary
shareholders'
net loss - (4 177) (4 177)
7 954 (16 778) (8 824)
Year ended 31 December 2000
(audited)
Balance at beginning of
the year 5 310 - 5 310
Ordinary share issue 6 849 - 6 849
Listing costs written-off (4 205) - (4 205)
Ordinary shareholders'
net loss - (12 601) (12 601)
7 954 (12 601) (4 647)
Group segmental review
for the SIX MONTHS ended 30 June 2001
Electronic Parking
Guarding security management
services services services
("Command") ("Aludi") ("Aludi")
% % %
Financial information
Revenue 52,6 44,6 2,8
Headline earnings (109,3) 7,1 2,2
Earnings (107,7) 6,6 1,1
Intangible assets 29,6 54,5 15,9
Tangible assets 38,5 60,5 1,0
Liabilities 57,6 39,5 2,9
Equity (155,5) 56,7 (1,2)
Headline loss per share
Loss per share is reconciled to headline loss per share as follows:
Loss per share (4,10)
Exceptional expenses and losses 0,90
Exceptional income and gains (0,64)
Taxation in respect of exceptional items (0,22)
Outside shareholders' share (0,20)
Headline loss per share (4,26)
Financial effects of the Worcester disposal
Before After Effect
(cents) (cents) (cents)
Headline loss per share (8,40) (7,76) 0,64
Loss per share (12,43) (11,79) 0,64
Net liability value per share (4,56) (3,98) 0,58
Tangible net liability value
per share (9,95) (9,37) 0,58
Assumptions:
The before column is per the audited results for the year ended 31 December
2000.
GENERAL REVIEW
Nature of business
The company trades through its wholly-owned subsidiary Command Security
Services (Pty) Ltd which offers guarding and cash-in-transit services and
its 47,7% owned subsidiary Aludie Limited which trades in the electronic
security and parking management industries. The latter subsidiary has now
extended its operations to include toll road systems. Other than the toll
road system operations, the group has not changed the nature of its
operations during the period under review.
Results
As reported in the annual financial statements issued in August 2001, the
group has continued to sustain losses during the six-month period ended 30
June 2001. These losses arise from those factors referred to in the report
on the revised results for the 2000 financial year published on 3 August
2001 and the time lag involved between actions taken to restructure
operations and the financial effects thereof.
The group has implemented improved internal controls, centralized
information systems and implemented better operational and cost controls
during the period.
The group has also disposed of its loss-making operations in Worcester,
Pretoria and Witbank. The Worcester Operation, which consists of Security,
Farmguard and Alarm divisions, has been sold to Ixia Trading 234 (Pty) Ltd
for R1,7 million in cash, to be paid in installments over the next two
years, with the effective date of the disposal being 1 January 2001. These
proceeds will be used for working capital purposes.
Finally, the group has significantly rationalised management overhead
structures, the benefits of which are expected to flow into the results to
be reported at the end of the current year.
Aludie Limited has reported headline earnings in the amount of R401 000
during the period under review and is expected to sustain profits provided
that its efforts to raise additional working capital are successful.
Prospects
The group expects to achieve break-even in its trading results by the end of
the current financial year and to report a return to sustained
profitability. Negotiations to recapitalise the group are still in progress
but are expected to be concluded in the near future.
Dividends
The group has not declared any dividends as a result of its continued
trading losses.
Directors
Messrs Z. J. Sithole (Non-executive chairman), J. Imerman (Executive deputy
chairman), H. J. Bruyn (Chief executive officer) and S. Imerman
(Non-executive) continued to serve as directors during the period under
review.
Messrs J. Tsotsetsi (appointed 9/2000), T. E. Nxumalo (appointed 9/2000) and
M. W. Reynolds (appointed 12/2000) resigned in September 2001.
Prof M. I. Parker and Mr K. G. Druker were appointed non-executive directors
in September 2001.
By order of the Board
Z. J. Sithole H. J. Bruyn J. C. Kaufmann
Chairman Chief Executive Officer Company Secretary
Cape Town
12 October 2001
Transfer secretaries Registered office
Mercantile Registrars Limited Building 2, De Tijger Park
11 Diagonal Street Cnr McIntyre & Hannes Louw Streets
Johannesburg Parow
2001 7500
