| Wed 17 Oct 2001, 0:00 | | Datacentrix Holdings - Unaudited Interim Results |
|
31 August 2001
DATACENTRIX HOLDINGS
LIMITED
REGISTRATION NUMBER
1998/006413/06
Share code:DCT
ISIN code: ZAE000016051
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31
AUGUST 2001
HIGHLIGHTS
Turnover increased by 25%
to R255 million
Operational performance (EBITDA) increased by
24% to R19.4 million
Headline earnings per share increased by 20%
to 8.4 cents
Tangible net asset value up by 35%
to 42 cents per share
EBITDA margin increased to 9.2%, excluding
losses from e-business
Cashflow from operations of R11 million, resulting in cash on
hand of R51 million with no interest bearing debt
CONSOLIDATED INCOME
STATEMENT
Excluding E- Group Group
E- business
business
6 Months 6 Months 6 Months 6 Months
ended ended ended ended
August August August August
2001 2001 2001 2000
R000's R000's R000's R000's
Turnover 254,291 1,006 255,297 203,557
Operating income before
interest, taxation,
depreciation &
amortisation (EBITDA) 23,387 (4,036) 19,351 15,663
Depreciation (1,056) (842) (1,898) (567)
Goodwill amortised (1,470) - (1,470) -
Operating income before
interest and taxation
(EBIT) 20,861 (4,878) 15,983 15,096
Net interest received 536 230 766 1,065
Income before taxation 21,397 (4,648) 16,749 16,161
Taxation (6,860) 1,394 (5,466) (5,540)
Net income after taxation 14,537 (3,254) 11,283 10,621
Outside shareholders
interest - 976 976 697
Earnings attributable to
ordinary shareholders 14,537 (2,278) 12,259 11,318
Retained income at
beginning of the period 50,133 (4,307) 45,826 12,523
Retained income at end of
the period 64,670 (6,585) 58,085 23,841
Earnings and diluted
earnings per share (cents) 8.9 (1.4) 7.5 7.0
Headline and diluted
headline earnings per
share (cents) 9.8 (1.4) 8.4 7.0
Weighted average number of
shares in issue ('000) 163,376 163,376 163,376 160,823
RECONCILIATION OF HEADLINE EARNINGS
Earnings attributable to
ordinary shareholders 14,537 (2,278) 12,259 11,318
Goodwill amortised 1,470 - 1,470 -
Headline earnings 16,007 (2,278) 13,729 11,318
CONSOLIDATED BALANCE SHEET
Group Group Group
August February August
2001 2001 2000
R000's R000's R000's
ASSETS
Non-current assets
Fixed assets - e-business 21,243 21,854 22,491
Fixed assets - other
businesses 7,668 6,696 3,455
Deferred tax 8,139 6,745 4,436
Investments and loans 12,249 9,590 8,966
Intangible assets 20,140 21,610 10,120
69,439 66,495 49,468
Current assets
Inventories 5,090 6,467 3,473
Accounts receivable 104,308 68,350 77,766
Bank balances and cash 50,650 45,089 42,437
160,048 119,906 123,676
Total assets 229,487 186,401 173,144
EQUITY AND LIABILITIES
Capital and reserves
Share capital and premium 12,474 7,099 5,115
Non distributable reserve 14,239 7,105 6,761
Acquisition consideration
- shares due to vendors 5,820 12,249 8,279
Retained earnings 58,085 45,826 41,376
90,618 72,279 61,531
Minority interest and
outside shareholder's loan 4,773 5,749 3,063
Other liabilities
Acquisition consideration
due to vendors 6,390 9,125 11,220
Current liabilities
Accounts payable - e-
business outside
shareholders 14,633 14,995 14,378
Accounts payable - other
businesses 101,057 70,143 67,462
Acquisition consideration
- short term cash due to
vendors 5,137 9,300 5,721
Taxation 6,879 4,810 9,769
127,706 99,248 97,330
Total equity and
liabilities 229,487 186,401 173,144
Net asset value per share
(cents) 54 45 38
Tangible net asset value
per share (cents) 42 31 32
Number of shares in issue
('000) 166,360 161,830 160,823
STATEMENT OF CHANGES IN
EQUITY
Group Group
6 Months Year
ended ended
August February
2001 2001
R000's R000's
Opening balance 72,279 47,456
Net income for the period 12,259 15,769
Non-achievement of profit
warranties 3,373 3,030
Raised on new acquisitions - 6,149
Share issue expenses - (125)
Shares issued to share
trust 2,707 -
Closing balance 90,618 72,279
CONSOLIDATED CASHFLOW
STATEMENT
Group Group
6 Months 6 Months
ended ended
August August
2001 2000
R000's R000's
Net cash inflow from
operating activities -
other businesses 16,039 10,505
Net cash outflow from
operating activities - e-
business (4,742) (7,126)
Total Net cash inflow from
operating activities 11,297 3,379
Net cash outflow from
investing activities (2,211) (17,067)
Net cash (outflow)/inflow
from financing activities (3,525) 5,698
Net increase/(decrease) in
cash and cash equivalents 5,561 (7,990)
Cash and cash equivalents
at the beginning of the
period 45,089 50,427
Cash and cash equivalents
at the end of the period 50,650 42,437
COMMENTS
Nature of business
The Group's major activities comprise the supply, integration and
optimisation of IT-infrastructure, business solutions, e-business
enabling and related services to enterprise South Africa.
Commentary
The Datacentrix board is pleased to present yet another set of
solid interim results since listing on the JSE Securities
Exchange main board in 1998.
The results have been split into e-business and other businesses.
The e-business figures relate to the Group's joint venture,
Commerce Centre of Southern Africa (Pty) Ltd.
Compared to the corresponding prior
year Group results:
Turnover increased by 25%
to R255 million
Operational performance (EBITDA) increased by
24% to R19.4 million
Headline earnings per share increased by 20%
to 8.4 cents
Tangible net asset value up by 35%
to 42 cents per share
EBITDA margin increased to 9.2%, excluding
losses from e-business
Net cashflow of R11 million was generated from operations,
resulting in cash on hand of R51 million with no interest bearing
debt
Infrastructure: supply, integration,
optimisation and related services
This focus area continues to be the largest contributor to the
Group. Additional multi-year contracts have been secured from
corporate customers for the supply of infrastructure and related
services. This is leading to an increasingly predictable and
repeated revenue stream.
We are well positioned to maximise the expected benefits from the
proposed global merger between HP and Compaq.
Datacentrix's focus on enterprise storage solutions has been
justly rewarded and we expect it to be a significant contributor
going forward.
We continue to dominate in the area of document and data
management in the SAP R/3 environment with the IXOS range of
solutions.
Business solutions
The Business Solutions unit offers hosted services and the
consulting, supply and implementation of business applications on
the Microsoft platform.
Our skills in the food manufacturing industry have been expanded
to other focus areas within the manufacturing environment.
In addition to our existing offerings, we have been accredited
and skilled on the Microsoft Great Plains ERP system.
E-business
Commerce Centre has launched an online procurement solution for
the retail pharmacy and other healthcare providers called
OrderOnline, which will be rolled out during the second half of
this financial year.
Commerce Centre is in discussions with the FMCG community about
the structure and slower than expected take up of the EAN product
data catalogue.
Future prospects
To date our focus on business critical solutions and services has
shielded Datacentrix from the global and local slowdown in
information technology expenditure.
In order to offer an all inclusive service, we have consolidated
the Sterling Commerce representation within the Datacentrix
group. We are now in a position to offer both the products as
well as the hosted solutions.
We remain extremely well positioned to take advantage of the
continued shakeout and consolidation in the IT industry.
Dividends
As per company policy, no dividend has been declared or paid. The
directors believe that the cash resources can be best employed
within the company to fund organic and/or acquisitive growth.
Accounting policy
There has been no change
to the company's
accounting policy during
the period under review
For and on behalf of the
board.
Gary Morolo Gerhard
Uys
Executive Chairman Managing Director
17 October 2001
Pretoria
Directors:
Gary Morolo, Gerhard Uys, Klaas Lammers, Leon Theron,
Stewart Barker, Charl Joubert, Natanya Kuper-Cohen*,
Christoff Botha*, Imogen Mkhize*, Sam Nematswerani*,
Joan Joffe*
*non executive
www.datacentrix.co Transfer
Registered office: .za Secretaries:
Sanwood Park Block 7 Mercantile
379 Queens Crescent Registrars Limited
Lynnwood 11 Diagonal Street
Pretoria Johannesburg
