| Fri 26 Oct 2001, 0:00 | | Set Point: Audited Consolidated Results |
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SETPOINT TECHNOLOGY HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1996/014334/06)
Share code:STO ISIN: ZAE000013629
("Set Point")
Audited Consolidated Results for the year ended 31 August 2001
Consolidated income statements
Unaudited Unaudited Audited Audited
6 months 6 months 12 months 12 months
to to to to
28 February 31 August 31 August 31 August
2001 2001 2001 2000
R'000 R'000 R'000 R'000
Revenue 166 378 109 047 275 425 331 728
Cost of sales (118 949) (69 023) (187 972) (222 060)
Gross margin 47 429 40 024 87 453 109 668
Operating expenses (55 014) (39 604) (94 618) (96 251)
(Loss)/profit before
exceptional items (7 585) 420 (7 165) 13 417
Exceptional items (5 017) (11 787) (16 804) (3 393)
(Loss)/profit before
finance charges (12 602) (11 367) (23 969) 10 024
Net finance charges (4 980) (2 244) (7 224) (7 950)
(Loss)/profit
before taxation (17 582) (13 611) (31 193) 2 074
Taxation 3 668 4 495 8 163 4 884
(Loss)/profit after taxation (13 914) (9 116) (23 030) 6 958
Equity accounted income - - - 231
(Loss)/profit attributable to
ordinary shareholders (13 914) (9 116) (23 030) 7 189
Weighted average number of
shares in issue ('000) 191 420 183 776 187 598 183 730
Fully diluted weighted
averagenumber of shares
in issue ('000) 191 420 183 776 187 598 183 730
Earnings/(loss)
per share (cents) (7,3) (5,0) (12,3) 3,9
Headline earnings/(loss)
per share (cents) 4,7 1,6 (3,1) 5,8
Fully diluted earnings/(loss)
per share (cents) (7,3) (5,0) (12,3) 3,9
Fully diluted headline earnings
(loss) per share (cents) (4,7) 1,6 (3,1) 5,8
Headline earnings/(loss) (8 897) 3 071 (5 826) 10 582
Net (loss)/profit for year (13 914) (9 116) (23 030) 7 189
Goodwill amortisation - 400 400
Exceptional items 5 017 11 787 16 804 3 393
Loss on disposal and
discontinuance of operations 13 715 2 220
Acquisition costs 1 582 -
Diminution in value
of investments 1 507 1 173
Abridged Consolidated balance sheets
PRO FORMA AUDITED AUDITED
at 31 August at 31 August at 31 August
2001 2001 2000
R'000 R'000 R'000
Assets
Non-current assets 33 816 40 714 34 180
Property plant and equipment 11 662 18 560 27 027
Intangible assets 5 050 5 050 -
Investments 2 252 2 252 23
Deferred tax 14 852 14 852 7 130
Current assets 76 940 96 795 136 304
Inventories 17 482 27 545 38 821
Trade and other receivables 52 232 58 906 75 344
Taxation receivable 1 347 1 125 2 634
Cash resources 5 879 9 219 19 505
Total assets 110 756 137 509 170 484
Equity and liabilities
Capital and reserves 33 380 24 878 54 622
Capital and reserves 32 448 23 946 37 752
Deferred purchase consideration
- shares 932 932 16 870
Non-current liabilities 21 944 21 982 31 905
Interest bearing liabilities 19 489 19 527 21 224
Deferred purchase consideration
- cash 2 455 2 455 10 681
Current liabilities 55 432 90 649 83 957
Trade and other payables 32 770 41 297 54 692
Interest bearing liabilities 22 662 49 352 29 265
Total equity and liabilities 110 756 137 509 170 484
Shares in issue ('000) 182 420 182 420 173 241
Shares owed to vendors
(net) ('000) 1 356 1 356 10 489
Adjusted number of shares
in issue ('000) 183 776 183 776 183 730
Net asset value per share (cents) 18,2 13,5 29,7
Note:
1. The pro forma balance sheet incorporates the sale of Set Point Europe
effective 1 September 2001 the receipt of the first transfer of funds and
the accrual of the outstanding balance.
2. Accounting policies are consistent with the prior year.
Abridged Consolidated cash flow statements
31 August 31 August
2001 2000
R'000 R'000
Cash (outflow)/inflow from operating activities (4 861) 6 099
Cash (outflow)/inflow from investing activities (12 240) (13 430)
Cash (outflow)/inflow from financing activities 6 815 429
Movements in cash and cash equivalents (10 286) (6 902)
Cash and cash equivalents at beginning of year 19 505 26 407
Cash and cash equivalents at end of year 9 219 19 505
Abridged Consolidated changes in equity statement
31 August 31 August
2001 2000
R'000 R'000
Opening balance 37 752 60 255
Issue of share capital 9 041 3 531
Currency translation difference 183 2,717
Goodwill and trademarks written off - (35 940)
Net income/(loss) (23 030) 7 189
Closing balance 23 946 37 752
Review of operations
Profile
Set Point is a manufacturer, supplier and operates specialised industrial,
analytical and allied technological equipment used by a wide range of major
industries.
Financial Results
Revenue at R275,4 million for the year to 31 August 2001 was 17% lower than
in the previous year as a result of the sale of certain local divisions
during the year. Details of these disposals have been dealt with below. The
group made an operating loss of R6,8 million before exceptional items and
amortisation. While this was unsatisfactory and reflected the poor trading
conditions being experienced in Southern Africa, it did in fact show
improvement from the operating loss of R7,6 million published in the interim
announcement.
The interim results announcement indicated that strategies were being
adopted which included the sale of some business operations, a reduction in
the cost structure of the group as well as lowering the level of borrowings.
During the six months to 31 August 2001, these strategies were implemented
and, as detailed below, certain business operations have been sold, the cost
structure has been considerably reduced and cash received after the year-end
from the disposal of Set Point Europe will reduce borrowings significantly,
as indicated in the pro forma balance sheet.
The implementation of this programme has led to more encouraging results for
the second six months of the year where headline earnings per share have
improved to 1,6 cents per share. The headline loss for the year was
therefore 3,1 cents (2000: 5,8 cents earnings).
To appreciate the financial effects of the sale of Set Point Europe, a pro
forma consolidated balance sheet has been produced which reflects the
positive movements in equity and borrowings following the disposal.
Disposal of Businesses
Shareholders are referred to the announcement of 10 October 2001, which gave
details of the disposal of various businesses. The disposals, which have
taken place, are:
* B&W and Caser with effect from 1 March 2001;
* RBF Technology with effect from 1 March 2001; and
* Set Point Europe with effect from 1 September 2001.
The results published today include those of Set Point Europe. A circular
containing details of these disposals and their effects on Set Point and,
where required, seeking shareholder approval via a notice of a general
meeting of shareholders will be sent to members shortly. Shareholders
representing 50,99% of the issued share capital have provided written
undertakings to vote in favour of the resolution, to approve the sale of Set
Point Europe.
Dividends
No dividend has been declared.
Prospects
The strategies of reducing the group's cost structure and level of
borrowings will continue to be implemented in the new financial year.
Shareholders can therefore look forward to a continuing improvement in
results.
For and on behalf of the board
M J Smith (Chief Executive Officer)
N D Kennelly (Group Financial Director)
Johannesburg
24 October 2001
Directors: B H Kent (Chairman)*, M J Smith (Chief Executive Officer), Dr D E
Baloyi*, J M Judin*, N D Kennelly, H Levin*, Dr T L Martin*, V T L Ngubeni*,
C S Seabrooke*, H P St Quintin* (*non-executive)
Registered office: Pin Mill Farm, Block F, 164 Katherine Street, Sandton,
2146, (PO Box 787646, Sandton, 2146
Transfer secretaries: Mercantile Registrars Limited, 10th Floor, 11 Diagonal
Street, Johannesburg, 2001, (PO Box 1053, Johannesburg, 2000)
www.setpoint.co.za
