| Mon 26 Nov 2001, 0:00 | | Casey Investment Holdings Limited - Interest Resul |
|
August 2001
INTERIM RESULTS FOR THE PERIOD ENDED 31 AUGUST 2001
CASEY INVESTMENT HOLDINGS LIMITED
(Registration No:1998/016433/06)
("Casey")
ISIN CODE : ZAE000016127
JSE CODE : CSY
CONSOLIDATED INCOME STATEMENT
6 Months to 6 Months to Year to
31 Aug 2001 31 Aug 2000 28 Feb 2001
(Unaudited) (Unaudited) (Audited)
Turnover
Continuing operations 12,294,835 20,702,482 28,471,702
Discontinuing operations (1) - 3,133,196 3,564,814
12,294,835 23,835,678 32,036,516
Operating profit/(loss) before
interest and taxation
Continuing operations (2,860,239) (5,004,462) (11,643,534)
Discontinuing operations - (825,091) (2,404,968)
Net interest Received/(paid)
Continuing operations (205,641) (344,793) (800,479)
Discontinuing operations - - -
Net profit before taxation
Continuing operations (3,065,880) (5,349,255) (12,444,013)
Discontinuing operations - (825,091) (2,404,968)
Taxation
Continuing operations - 1,604,778 248,018
Discontinuing operations - 247,526 -
Retained earnings for the year
Continuing operations (3,065,880) (3,744,477) (12,195,995)
Discontinuing operations - (577,565) (2,404,968)
(3,065,880) (4,322,042) (14,600,963)
Number of shares in issue as at 79,723,333
31 August 2001 79,723,333 79,723,333
Number of shares in issue (fully 79,723,333
diluted) 83,129,592 79,723,333
Earnings per share (cents) (3.69) (5.42) (18.31)
Headline earnings per share (3.69) (5.42) (18.31)
(cents)
CONSOLIDATED BALANCE SHEET
6 Months to 6 Months to Year to
31 Aug 2001 31 Aug 2000 28 Feb 2001
(Unaudited) (Unaudited) (Audited)
Assets
Non current assets 6,319,919 6,529,895 6,462,088
Current assets 7,873,268 14,193,715 5,261,381
Total Assets 14,193,187 20,723,610 11,723,469
Equity and Liabilities
Share capital and premium 3,538,491 3,538,491 3,538,491
Reserves (13,848,686) (503,885) (10,782,806)
(10,310,195) 3,034,606 (7,244,315)
Non-current liabilities (2) 15,825,042 5,056,164 10,398,141
Current liabilities 8,678,340 12,632,840 8,569,643
Total Equity and Liabilities 14,193,187 20,723,610 11,723,469
Net asset value per share
(cents) (12.40) 3.81 (9.09)
Net tangible asset value per
share (cents) (17.01) (1.28) (14.03)
CASH FLOW STATEMENT
6 Months to 6 Months to Year to
31 Aug 2001 31 Aug 2000 28 Feb 2001
(Unaudited) (Unaudited) (Audited)
Cash flow from operating
activities
Cash generated from operations (4,576,155) (7,357,363) (8,353,574)
Interest expense (205,641) (344,793) (800,479)
Income Tax paid - - (443,864)
(4,781,796) (7,702,156) (9,597,917)
Cash flow from investment
activities
Proceeds from disposal of
fixed assets - 166,136 291,899
Purchase of fixed assets - - (288,056)
Investment in subsidiaries (253,757) - (647,920)
(253,757) 166,136 (644,077)
Cash flow from financing
activities
Proceeds from the share -
capital raise - -
Proceeds from long-term
borrowings 5,399,998 4,963,898 10,360,413
5,399,998 4,963,898 10,360,413
Movement in cash and cash
equivalents 364,445 (2,572,122) 118,419
Cash and cash equivalents -
beginning of period (4,393,952) (4,512,371) (4,512,371)
Cash and cash equivalents -
end of period (4,029,507) (7,084,493) (4,393,952)
GROUP STATEMENT OF CHANGES IN EQUITY
6 Months to 6 Months to Year to
31 Aug 2001 31 Aug 2000 28 Feb 2001
(Unaudited) (Unaudited) (Audited)
Share capital
Balance at the beginning of
the period 797,233 797,233 797,233
New shares issued during the
period
797,233 797,233 797,233
Share premium
Balance at the beginning of
the period 2,741,258 2,741,258 2,741,258
Premium of new shares issued
during the period
Goodwill written off
2,741,258 2,741,258 2,741,258
Distributable reserves
Balance at the beginning of
the period (10,782,806) 3,818,157 3,818,157
Net profit / (losses) for the
period (3,065,880) (4,322,042) (14,600,963)
(13,848,686) (503,885) (10,782,806)
TOTAL EQUITY (10,310,195) 3,034,606 (7,244,315)
Notes:
1. Discontinuing operations was due to closure of branches.
2. Non-current liabilities represent a loan from Blitec ( 71%
shareholder).
3. Net asset value and earnings per share was calculated on fully
diluted number of shares issued.
4. The accounting policies used in the preparation of the interim
profit announcement are consistent with those applied in the
previous period ended 28 February 2001. The interim profit
announcement has been prepared in accordance with the requirements
of AC127.
COMMENTARY
The board of Casey Investment Holdings hereby present the interim reswults
for the period ended 31 August 2001.
Following the restructuring implemented by Casey during the latter half of
2000 through the early part of 2001, the focus within the group has been on:
- Refining strategy and realigning the structure to fit the strategy
- Continuous improvement in operating efficiencies within the ambit of
the strategy
- Developing capacity and skill within the high-end technology
solutions arena for customers
- Developing relationships and partnerships that give access to high-
end solutions and help to build competence and capacity to chase
opportunities
In a very difficult climate that saw revenues drop almost 50% due to the
downturn in market conditions and speculation about worldwide recession
Casey managed to significantly reduce losses and raise operating margins,
thereby proving the business case for the change in business model from
distribution of components and assembly of PCs to the development of
business solutions using high-end technology and the services of highly
skilled technicians and professionals.
Strategy
The group's strategy is to position Casey as one of the country's leading
technology partners specialising in enabling business through the smart
application of technology. The core of the strategy is to become a
specialist provider of IT solutions to National government, Provincial
government, Local government directly and through SITA; Parastatals;
Tertiary institutions, Corporations as well as the SMB market.
The focus areas for Casey are:
- Infrastructure development (Networks and Tier 1 products, storage
solutions)
- Maintenance and support through to total outsourcing of customer
environments
- Application systems (databases, development tools, financial
systems, HR systems, ASP solutions as well as the development of
custom applications)
- Internet services (web design, hosting, automation, eCommerce and
eBusiness)
Casey has developed the competencies and the capacity to fulfil in these
opportunities by itself as well as in partnership with similar technology
companies and some of the world's top technology vendors.
The development of staff is key to the realisation of capable, competent
knowledge workers whose understanding of the business of our customers and
depth of knowledge of technology solutions is of such a nature that it
enables them to propose viable, efficient and cost effective solutions for
our customers.
The management of Casey has been strengthened with individuals who are
driven by achieving results and who have a proven entrepreneurial track
record. Their integrity and leadership instils confidence and faith in
suppliers, partners and customers alike thereby ensuring success.
In the last six months Casey has bid for substantial business much of which
is on course to be awarded before February 2002. The group will focus on
those market segments where opportunities are of such a magnitude that the
group can expect growth above the market average. Coupled with stringent
expense control and improved liquidity Casey will end the year in a much
stronger position.
Conclusion
Managing the transition of the group over the last twelve months has been
extremely challenging. Legacy issues, the rapidly changing business
environment and the trends globally have had an impact on the achievement of
the company's goals but we remain confident that government's stated aims of
providing better services for the citizens of our country using technology
continues to represent immense opportunities for companies like ours.
We also believe that the growth in Black business and the proliferation of
SME businesses that embrace technology further represents substantial growth
in the IT sector in future and finally that the merger and integration of
institutions of higher learning creates the right level of critical mass for
enterprise wide solutions to be applied within the area of providing
education to people however and where-ever they desire it.
Casey continues to take the path of turning around and for that we thank you
our exacting customers, suppliers, partners and shareholders.
For and on behalf of the board
J Molobela : L Khumalo
Chairman : Chief Executive Officer
Midrand
26 November 2001
Corporate advisor and sponsor
The Janus Corporation (Pty) Limited
Registration Number 1999/005755/07)
Transfer Secretaries
Computer Share Services Limited
