| Tue 27 Nov 2001, 0:00 | | Trematon Capital Investments Ltd - Audited Results |
|
August 2001
Share code :TMT
ISIN : ZAE000013991
TREMATON CAPITAL INVESTMENTS LTD
(Incorporated in the Republic of South Africa)
(Registration number 1997/008691/06)
Audited results for the year ended 31 August 2001
31 August 31 August
2001 2000
AUDITED GROUP BALANCE SHEET R'000 R'000
ASSETS
Non-current assets 107 062 758 978
Property, plant and equipment 801 504
Investments * 106 261 758 474
Current assets 8 403 9 079
Accounts receivable 329 1 970
oProceeds on sale of investment 4 800 -
Taxation 174 341
Cash and short term loans 3 100 6 768
Total assets 115 465 768 057
EQUITY AND LIABILITIES
Ordinary shareholders' interests 93 399 748 763
Non-current liabilities
Convertible debentures 13 562 13 562
Current liabilities 8 504 5 732
Provisions and accounts payable 3 222 732
Interest bearing debt 5 282 -
Investment acquisition - 5 000
Total equity and liabilities 115 465 768 057
Net asset value per share 86 cents 686 cents
Fully diluted net asset value per 91 cents 650 cents
share
109 200 109 200
No of shares in issue at 31 August 2000
(000) 117 210 117 210
Diluted no of shares in issue (000)
* 71% of investments comprise listed
shares held directly and
indirectly by the group
31 August 31 August
2001 2000
AUDITED GROUP INCOME STATEMENT R'000 R'000
Investment income - 200
Net interest received 136 4 112
Trading profit - 1 171
Net management expenses (3 298) (2 630)
(Loss)/Profit from operations (3 162) 2 853
Investment valuation adjustments (649 611) 611 658
(Loss)/Profit before taxation (652 773) 614 511
Taxation expense 5 583
(Loss)/Profit after taxation (652 778) 613 928
Share of (accumulated loss)/retained (2 586) 302
income of associates
(Loss)/Profit for the year (655 364) 614 230
Reconciliation between earnings and
headline earnings
(Loss)/Profit attributable to (655 364) 614 230
shareholders
* Investment valuation adjustments (649 611) 611 658
Headline (loss)/earnings attributable (5 753) 2 572
to shareholders
Headline (Loss)/earnings per share (5,27) cents 2,4 cents
(Loss)/Earnings per share (600,2) 573,5 cents
cents
Weighted average no of shares in issue 109 200 107 100
(000)
* Investment valuation adjustments
- Loss on disposal of investments (4 685) -
- Investments in associates written (12 147) (10 225)
down
- Market valuation adjustments (632 779) 621 883
(649 611) 611 658
31 August 31 August
AUDITED GROUP CASHFLOW 2001 2000
STATEMENT
R'000 R'000
Cash flows from operating
activities
Cash absorbed by operations (6 933) -
Dividends paid - (30)
Taxation refund/(paid) 162 (875)
Net finance income 136 4 112
Net cash (outflow)/inflow (6 635) 3 207
from operating activities
Net cash outflow from (852) (52 871)
investing activities
Net cash inflow from - 5 475
financing activities
Net decrease in cash and cash (7 487) (44 189)
equivalents
Cash and cash equivalents at 2 205 46 394
beginning of year
Cash and cash equivalents at (5 282) 2 205
end of year
STATEMENT OF CHANGES IN EQUITY
Retained income
Share Share (accumulated
Group capital premium loss) Total
R'000 R'000 R'000 R'000
Balance at 31 1 050 162 898 (37 794) 126 154
August 1999
Issue of shares at 42 8 358 8 400
a premium
Share issue (21) (21)
expenses
Net profit for 614 230 614 230
the year
Balance at 31 1 092 171 235 576 436 748 763
August 2000
Net loss for the (655 364) (655 364)
year
Balance at 31 1 092 171 235 (78 928) 93 399
August 2001
REVIEW OF RESULTS
During the year under review Trematon's net asset value decreased from R749m
to R93m mainly as a result of a fall in the share price of Intec Telecom
Systems PLC ("Intec"). This translates into a net asset value per share of
86 cents at 31 August 2001 compared with 686 cents in 2000.
Trematon's most significant asset remains its attributable shareholding in
Intec Telecom Systems PLC ("Intec") comprising 11 484 871 shares held
indirectly by Mican Ltd. Intec is a leading worldwide operations support
systems vendor for fixed, mobile and internet protocol/next generation
telecom networks. The Intec share price fell from 6,20 at 31 August 2000 to
0,83 in 2001 which has resulted in a negative investment valuation
adjustment of R582m for Trematon. This fall was caused mainly by the general
international down-rating of technology stocks and negative sentiment
regarding prospects for the international telecom industry which forms
Intec's customer base. Intec's operating results have been affected by a
more difficult operating environment caused by sharp cut-backs in major
telecoms capital expenditure as well as by extended sales cycles for
purchases by telecom customers which dampened growth.
Intec has a product portfolio that meets three important needs in any
communications company : collection of information on its network traffic
(mediation), billing of business partners for that traffic (interconnect),
and protection of these revenue streams from fraud, leakage and other kinds
of loss. It is able to deliver these capabilities in any region in the world
and has done so effectively in 2001 increasing its customer base from 80 to
230. Despite adverse market conditions, Intec has still achieved major
growth in sales revenues for its financial year ended 30 September 2001 with
revenues of 39,8m (2000 revenues 20,3m) as well as having achieved
positive EBITDA earnings of 3,4m.
Trematon's operating expenses for the period were R3,3m, which together with
interest received and the loss from associates resulted in a headline loss
per share of 5,3 cents.
During the year Trematon disposed of its:
- 40% shareholding in the retail jewellery chain, NWJ Holdings (Pty) Ltd
to NWJ management, and its;
- 75% beneficial interest in Real Technology Trust, an IT venture capital
fund operated as a joint venture with Real Africa Durolink Investment
Bank, as well as its 25% shareholding in the fund management company Real
Africa Durolink Technologies Investments (Pty) Ltd.
Trematon's holding of 3 191 690 shares in Peregrine Holdings Ltd was
exchanged for 582 830 additional shares in Intec.
Provisions amounting to R63m have also been made against the carrying value
of Trematon's other investments focussed in the technology sector. The value
of these businesses has been severely affected by the general negative
sentiment towards IT as well as by difficult trading conditions being
experienced by these businesses.
PROSPECTS
Trematon's asset value is directly related to the price of the Intec shares
on the London Stock Exchange. Intec's Board is cautiously confident that
growth will continue.
An extract from the report of Intec CEO Mr Kevin Adams, which was released
with the Intec results on 27 November 2001, on his outlook for Intec, reads:
"The telecoms industry remains a vital part of business and social
life, and there are undoubtedly new requirements for investment and
upgrade in network infrastructure and supporting systems. Intec's three
main product families are key components of the revenue generation
chain for all carriers, and the relative resilience we have seen in our
business in 2001 reflects this.
We cannot easily predict how the general world and telecom market
conditions may develop, but we are cautiously optimistic that Intec's
business model and product offering can generate above industry average
growth this year, and we look forward to 2002 with optimism. "
By order of the board
C W GARVIE
SECRETARY
27 November 2001
Registered office Postal address
The Manor House P O Box 712
14 Nuttall Gardens Durban
Morningside 4000
4001
Telephone: 031-3039667
Fax: 031-3039694
Directors: N A Labuschagne (Chairman), R B McElligott (CEO), P Ditz, A
Eyal, M Farrer, M G Meehan, A J F Mundell, R E Sherrell
