| Fri 30 Nov 2001, 0:00 | | Insure - Reviewed Interim Results For The Six Mont |
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INSURANCE OUTSOURCING MANAGERS HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/013121/06)
("INSURE" or "the company")
REVIEWED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2001
Consolidated income statement
The reviewed interim results for the INSURE group for the six months ended
31 August 2001, the interim results for the six months ended 31 August 2000
and the audited results for the year ended 28 February 2001 are presented
below. Both the interim results for the six months ended 31 August 2001 and
the year ended 28 February 2001 have been restated to reflect the impact of
the discontinued operations.
Reviewed Interim Audited
interim results results
results for for the six for the year
the six months ended ended
months ended 31 August 2000 28 February
31 August R'000 2001 R'000
2001
R'000
Gross collections 224 263 139 600 371 180
Revenue 14 006 31 606
15 069
Operating income before
amortisation and taxation
Ongoing operations 1 778 5 602 9 969
Discontinued operations (619) (582) (669)
Net interest paid (2 553) (2 247) (4 115)
Net (loss) / income before (1 394) 2 773 5 185
amortisation
Amortisation of goodwill (562) (302) (969)
& intangibles
Net (loss) / income before (1 956) 2 471 4 216
taxation
Taxation provision 252 (874) (1 643)
Net (loss) / income after (1 704) 1 597 2 573
taxation
Outside shareholders' (293) (326) (477)
interest
Attributable (loss) / (1 997) 1 271 2 096
income retained for the
period
Determination of headline
(loss) / earnings
Attributable (loss) / (1 997) 1 271 2 096
income
Add back: 562 302 969
Amortisation
Deduct:Outside (43) (43) (86)
shareholders' share of
amortisation
Profit on disposal of 5 (21) (24)
assets
Headline (loss) / earnings (1 473) 1 509 2 955
Effect of compliance with
new Generally Accepted
Accounting Practice
Add back: Normal Taxation
credited to deferred - 220 440
taxation asset
Comparable headline (loss) (1 473) 1 729 3 395
/ earnings
Earnings per share
Shares in issue (000's) 111 092 111 092 111 092
Fully diluted shares in 122 201 122 201 122 201
issue (000's)
(Loss) / earnings per (1.8) 1.1 1.9
share (cents)
Headline (loss) / earnings (1.3) 1.6 3.1
per share (cents)
Fully diluted (loss) / (1.6) 1.0 1.7
earnings per share (cents)
Fully diluted headline
(loss) / earnings per (1.2) 1.4 2.8
share (cents)
Consolidated balance sheet
Reviewed Interim Audited
interim 31 August 2000 28 February
31 August R'000 2001
2001 R'000
R'000
ASSETS
Non-current assets 37 541 25 894 36 292
Property, plant and 14 238 11 553 12 966
equipment
Intangible assets 20 761 11 734 21 317
Deferred taxation 2 542 2 607 2 009
Current assets 68 636 77 745 93 865
Accounts receivable 72 759 81 075 98 819
Less unearned finance (4 710) (4 555) (6 073)
charges
Cash resources 587 1 225 1 119
Total assets 106 177 103 639 130 157
EQUITY AND LIABILITIES
Capital and reserves 23 287 28 319 25 284
Issued capital 53 654 53 710 53 654
Non-distributable reserves 1 423 1 477 1 423
Distributable reserves (31 790) (26 868) (29 793)
Outside shareholders' (364) 383 (657)
interest
Non-current liabilities 1 054 30 441 1 654
Long-term liabilities 1 054 30 441 1 654
Current liabilities 82 200 44 496 103 876
Accounts payable 45 392 41 393 56 120
Loans payable 2 336 -- 11 298
Taxation 850 594 546
Current portion of long 57 2 509 67
term liabilities
Bank overdrafts 33 565 -- 35 845
Total equity and 106 177 103 639 130 157
liabilities
Net asset value per share 21.0 25.5 22.8
(cents) 19.1 23 2 20.8
Fully diluted net asset
value per share (cents)
Consolidated statement of changes in equity
Share Share Accumulated Non-
Capital Premium Loss distributable Total
R`000 R'000 R'000 Reserve R'000
R'000
Balance at 01 March 11 53 643 (29 793) 1 423 25 284
2001
Loss for the six month
period
Ongoing operations (1 378) (1 378)
Discontinued (619) (619)
operations
Balance at 31 August 11 53 643 (31 790) 1 423 23 287
2001
Consolidated cash flow statement
Reviewed Audited
6 Months 12 Months
31 August 28 February 2001
2001 R`000
R'000
Cash flow generated by / (used in) 15 554 (30 957)
operating activities
Cash flow used in investing activities (4 234) (34 888)
Cash flow (used in) / generated by (9 572) 31 148
financing activities
Cash and cash equivalents - beginning of (34 726) (29)
year
Cash and cash equivalents - end of year (32 978) (34 726)
Segmental Analysis
A segmental analysis for the six months ended 31 August 2001 and for the
year ended 28 February 2001 is set out below.
Reviewed Audited
6 Months 12 Months
31 August 2001 28 February 2001
% R'000 % R`000
Revenue
Finance charges earned 39% 5 884 49% 15 487
Commissions 45% 6 707 40% 12 642
Service fees 16% 2 478 11% 3 477
Revenue as reported 100% 15 069 100% 31 606
Accounting policies
This report has been prepared in accordance with South African statements of
Generally Accepted Accounting Practice. The accounting policies and methods
of measurement are consistent with those applied in previously reported
financial statements, and have been consistently applied throughout the
period under review.
COMMENTS
Overview
During the past six months, INSURE has continued its strategy of becoming
the preferred independent financial services provider to the short-term
insurance industry. Increasing focus on its core objectives, niche services
and operations have resulted in gross collections being up 61%, and INSURE
fast becoming recognised as a leader in collections of insurance premiums.
In addition, revenue increased by 7.6% compared to the same period in the
previous year.
Revenue growth was curtailed as a result of significantly reduced banking
facilities, impacting on one of INSURE'S successful and main products,
namely premium financing services. The facility reduction was the result of
INSURE's primary bankers making a strategic decision to downscale trading in
the Republic of South Africa, thereby resulting in restricted funding and
consequential adverse results. New facilities have subsequently been secured
and INSURE's management is optimistic that these will, over the next twelve
months, assist in recovering lost opportunities.
Revenue will further be enhanced from an outsourced contract secured,
impacting on the second half of the financial period (details were contained
in the Cautionary Announcement dated 17 September 2001). Substantial
investments in infrastructure and human resources, of which certain projects
are still in process, have resulted in additional overheads that will only
be capitalised on in the second part of the financial year. These
initiatives provide a foundation for further efficiencies, improving service
levels and ultimately the potential of securing more "blue-chip" outsourcing
contracts. Management has also identified certain non-performing investments
that are in the process of closure.
Revenue was sustained through this challenging period via organic growth and
strategic focus. It is management's opinion that, under the circumstances,
satisfactory results were achieved and an improved position will be
presented for the next six months.
Prospects
INSURE is now geared to continue growing organically and to capitalise on
its working capital investments. Management anticipates future growth in all
core areas of the business.
Share dilution information
At the company's Annual General Meeting held on 30 August 2001, the
shareholders approved the adoption of the INSURE Share Incentive Scheme. The
full effect of the dilution has been reflected in the earnings per share
calculation.
Dividend
A dividend will not be declared for the interim period.
For and on behalf of the board
B B Dunn D M Burns
Chairman Managing Director
30 November 2001
Directors
B.B Dunn (Chairman), D.M Burns (Managing), C.J.P Cilliers CA (SA)
(Financial), A.J Dunn*, K.J Gribnitz * (Alternate J.P Nel)
(* non-executive)
Secretary and registered office Jeantre Secretarial Services (Pty) Ltd., 165
Lynnwood Road, Brooklyn, 0180.
Transfer secretaries
Mercantile Registrars Limited, 11 Diagonal Street, Johannesburg, P.O. Box
1053, Johannesburg 2000.
Postal address and E-mail
P.O. Box 2867, Randburg, 2125
and
"halfyearresults2002@ioh.co.za".
Sponsor
LPC Manhattan Sponsors (Proprietary) Limited
