| Tue 18 Dec 2001, 0:00 | | Acuity - Unaudited Results For The Nine Months End |
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Acuity Group Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/011074/06)
Share code: ACY ISIN: ZAE000018149
("Acuity")
UNAUDITED RESULTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2001
Group Income Statement
Unaudited Unaudited Unaudited
9 months 9 months 9 months Unaudited
30 Sep 2001 30 Sep 2001 30 Sep 2001 6 months Audited
Continuing Discontinued Total 30 June 12 months
Operations Operations Operations 2000 31 Dec
2000
(R'000) (R'000) (R'000) (R'000) (R'000)
Revenue 19 249 256 19 506 12 439 33 966
Less:
Operating cost 22 236 2 629 24 866 10 249 33 496
Profit/(Loss)
from operations (2 987) (2 373) (5 360) 2 190 470
Less:
Amortization of
intangible assets 460 - 460 495 1 457
Goodwill 150 - 150 139 712
Trademarks 310 - 310 356 745
Net income/
(loss) before
interest (3 447) (2 373) (5 820) 1 695 (987)
Net Interest (121) - (121) 478 1 161
Net income/
(loss) before
exceptional
items (3 568) (2 373) (5 941) 2 173 174
Exceptional item 1 051 - 1 051 - (310)
Net profit/
(loss) before
taxation (2 517) (2 373) (4 890) 2 173 (136)
Taxation - - - (182) (155)
Net Income
after taxation (2 517) (2 373) (4 890) 1 991 (291)
Equity income/
(loss) from
associate (187) - (187) (42) 20
Net income/
(loss) for
the period (2 704) (2 373) (5 077) 1 949 (271)
Headline earnings/
(loss) per share
(cents) (3,3) (2,2) (5,5) 2,6 0,7
Headline earnings
reconcilliation
Earnings/(loss)
attributable to
shareholders (2 704) (2 373) (5 077) 1 949 (271)
Adjusted for
exceptional items (1 051) - (1 051) - 310
Adjusted for
amortization
of goodwill 150 - 150 139 712
Headline earnings/
(loss) (3 605) (2 373) (5 978) 2 088 751
BALANCE SHEET
Unaudited Unaudited Audited
30 Sep 2001 30 Jun 2000 31 Dec 2000
(R'000) (R'000) (R'000)
Assets
Non-current assets 17 156 22 842 21 500
Furniture,
Fittings &
Equipment 972 1 183 492
Software 2 986 458 916
Intangible assets 13 011 20 811 19 402
Investment in associate - 390 503
Deferred tax 187 - 187
Current assets 18 106 41 045 30 552
Trade and other receivable 20 239 29 366 23 542
Cash and cash equivalents (2 133) 11 679 7 010
Total assets 35 262 63 887 52 052
Equity and liabilities
Capital and reserves 13 357 15 222 24 658
Share capital 1 083 933 1 137
Non-distributable reserve 9 147 7 631 14 517
Share premium 5 047 481 5 047
Retained income/(loss) (1 920) 6 177 3 957
Non-current liabilities 2 370 30 956 5 982
Interest bearing
liabilities 87 133 79
Vendor loan 2 283 30 152 5 903
Deferred taxation - 671 -
Current liabilities 19 535 17 709 21 412
Trade and other payables 19 535 17 709 21 412
Total equity
and liabilities 35 262 63 887 52 052
ABRIDGED STATEMENT OF CHANGES IN EQUITY
Share Share Accumulated
Capital premium NDR profit/(loss) Total
(R'000) (R'000) (R'000) (R'000) (R'000)
Balance as at 31 December 2000
(Audited) 1 137 5 047 14 517 3 957 24 658
Share buyback (54) - - - (54)
Gain on cancellation
of business acquisition - - - - -
Arising of cancellation
of deal - - (5 429) (800) (6 229)
Arising on issuing
shares owed by
subsidiary to vendor
as settlement of
acquisition - - 59 - 59
Loss for the period - - - (5 077) (5 077)
Balance as at
30 September 2001
(unaudited) 1 083 5 047 9 147 (1 920) 13 357
CASH FLOW STATEMENT
Unaudited Audited
30 Sep 2001 1 Dec 2000
(R'000) (R'000)
Cash flow from operations before
working capital changes (4 676) 1 310
Working capital changes 2 508 3 851
Cash flow from operations (2 168) 5 161
Net cash flow from investing activities (3 355) (8 308)
Net cash flow from financing activities (3 620) (767)
Net decrease in cash and cash
Equivalents (9 143) (3 914)
Cash and cash equivalents
at beginning of period 7 010 10 924
Cash and cash equivalents
at end of period (2 133) 7 010
COMMENTS
1. Review of results
The results for the nine months are a function primarily of a longer
research and development period in bringing new products and services to
market from the Acuity Decision Support Division and a longer than
anticipated sales cycle for the new products and services of the Acuity
Marketing and Acuity Strategy Divisions. The sales in the latter two
divisions are now being realized and should reflect positively on the
results for the second period of this financial year. It is anticipated that
the group will begin realizing a return on its investment in the Acuity
Decision Support division from late in the first quarter of 2002 which will
be reflected in the first period of the next financial year.
Continuing operations
While revenue is up against the comparable period it is down on an
annualized basis. Headline EPS decreased from 0,7 cent at year-end to a loss
per share of 3,3 cents at the end of the period.
Discontinued operations
Included in discontinued operations is the closure of our online
publications division and our music sponsorship division as well as costs
related to their closure.
The decrease of intangible assets on the face of the balance sheet and the
exceptional item the current period is the result of the disposal of Acuity
Heale Tilley in accordance with an ordinary resolution adopted by
shareholders on 23 July 2001.
The results were prepared in accordance with the statements of Generally
Accepted Accounting Practice and are consistent with the company's policy.
2.Dividend
No dividend has been declared and none is recommended.
3.Prospects
Acuity has taken a number of proactive steps to ensure that losses reflected
in these results are not recurring, even in the absence of the anticipated
revenue growth. These include cost reductions, downsizing and the closure of
certain divisions.
This should ensure the group's return to profitability on a monthly basis in
the short term and on an annual basis in the medium term. The directors are
confident that our next set of results will begin to reflect benefits.
E R Schwartz
Woodmead
19 December 2001
Registered address
Cedarwood Office Park, Mount Lebanon Road,
Woodmead, Sandton, 2128
Tel: (011) 804-5100
Fax: (011) 804-5023
www.acuity.co.za
Transfer secretaries
Mercantile Registrars Limited, 11 Diagonal Street, Johannesburg, 2001
Directors
J Bolt, R M R De Bastos2*, E M Mafuna*, F P Rossouw, H Rostowsky*, E R
Schwartz1, J E H T van Zyl.
1American, 2Portuguese, *Non-executive
