| Mon 28 Jan 2002, 0:00 | | Ifanet Limited - Interim Results Announcement |
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IFAnet Limited
(Incorporated in the Republic of South Africa)
(Registration number 1995/006144/06)
Share code: IFA; ISIN: ZAE000027728
("the company")
INTERIM RESULTS ANNOUNCEMENT
GROUP INCOME Unaudited Unaudited Audited
STATEMENT 6 months to 6 months to year to
31 October 31 October 30 April 2001
2001 2000
(R'000)
Revenue 1,472 2 863 1,585
Other operating (3,743) (6 004) (8,671)
expenses
Depreciation (104) (189)
Goodwill/loan - (3 040) (3,433)
impairment
Operating (2,375) (6 181) (10,708)
profit/(loss)
Investment income 5 4 22
Net profit/(loss) (2,370) (10,686)
before finance (6 177)
charges
Finance charges (171) (321) (837)
Net profit/(loss) (2,541) (11,523)
before taxation (6 498)
Taxation - - (13)
Net profit/(loss) (2,541) (11,536)
for the period (6 498)
Ordinary shares 107,971 104 771 104,771
in issue (000's)
Headline (2.35) (7.73)
earnings/(loss) (3.30)
per share (cents)
Goodwill/loan - (2.90) (3.28)
impairment
Earnings/(loss) (2.35) (6.20) (11.01)
per share (cents)
GROUP BALANCE Unaudited as Unaudited as Audited as at
SHEET (R'000) at 31 October at 31 October 30 April 2001
2001 2000
Assets
Non-current 1,504 4016 1,476
assets
Property, plant 1,504 1 414 1,476
and equipment
Goodwill - 2 602 -
Current assets 430 708 596
Accounts 189 425 296
receivable
Cash resources 241 283 300
Total assets 1,934 4 724 2,072
Equity and
liabilities
Capital and 165 (7,083)
reserves (9,304)
Ordinary share 108 105 105
capital
Share premium 3,049 4 941 2,732
(Accumulated (12,461) (4 881) (9,920)
loss)/
distributable
reserves
Non-current 6,686 1 753 5,566
liabilities
Long-term 6,686 1 753 5,566
liabilities
Current 4,552 2 806 3,589
liabilities
Accounts payable 423 652 500
Taxation 2,042 1 959 2,077
Bank overdraft 2,087 195 1,012
Total equity and 1,934 4 724 2,072
liabilities
Net asset value (8.62) (6.76)
per share (cents) 0.16
Net tangible (8.62) (2.33) (6.76)
asset value per
share (cents)
GROUP CASH FLOW Unaudited Unaudited Audited year to
STATEMENT 6 months to 6 months to 30 April 2001
(R'000) 31 October 31 October
2001 2000
Cash flow from
operating
activities
Cash (absorbed (2,241) (2 742) (6,411)
by)/generated
from operations
Interest received 5 4 22
Interest paid (171) (321) (632)
Taxation paid (35) - (100)
Net cash (2,442) (3 059) (7,121)
(outflow)/inflow
from operating
activities
Cash flow from
investing
activities
Purchases of (132) (804) (1,292)
plant and
equipment
Goodwill acquired - - (393)
Proceeds on - 100 38
disposal of fixed
assets
Net cash (132) (704) (1,647)
(outflow)/inflow
from investing
activities
Cash flow from
financing
activities
Net movement in 1,120 (1 173) 5,242
long-term
liabilities
Proceeds from 320 4 947 2,737
issue of share
capital
Net cash 1,440 3 774 7,979
(outflow)/inflow
from financing
activities
Net (1,134) 11 (789)
(decrease)/increa
se in cash and
cash equivalents
Cash and cash (712) 77 77
equivalents at
beginning of
period
Cash and cash (1,846) 88 (712)
equivalents at
end of period
unaudited Share capital Share Accumu-lated Total
(R'000) premium loss
Balance at 100 - 1,616 1,716
30 April
2000
Loss for - - (11,536) (11,536)
the year
Share 5 2,732 - 2,737
capital and
premium on
issue of
shares
Balance at 105 2,732 (9,920) (7,083)
30 April
2001
Profit/(Los - - (2,541) (2,541)
s) for the
period
Share 3 317 320
capital and
premium on
issue of
shares
Balance at 108 3,049 (12,461) (9,304)
31 October
2001
COMMENT
The company is primarily involved in the administration, marketing and
distribution of life and investment products through a significant number of
independent financial advisors. The disappointing results for the six
months to 31 October 2001, reflected in this report, are due mainly to
difficult trading conditions which resulted in cash flow constraints and a
consequent deterioration in the balance sheet and the company's ability to
do business. Subsequent to the period-end, a total of R10.8 million has
been raised in new equity and it is expected that this, together with the
appointment of a number of new directors and severe cost saving measures
will result in a meaningful level of profits in the year to 30 April 2003.
The interim results have been prepared in accordance with South African
Statements of Generally Accepted Accounting Practice on a basis consistent
with the prior year. No dividends have been, or are proposed to be,
declared.
BY ORDER OF THE BOARD
DS Avnit
Chairman
FB Andalaft
Chief Executive Officer
Johannesburg
25 January 2002
Registered office
Number 3 Anerley Road, Parktown, 2193. (PO Box 62397, Marshalltown,
2107)
Transfer Secretaries
Mercantile Registrars Limited, 8th Floor, 11 Diagonal St.,
Johannesburg, 2001. (PO Box 1053, Johannesburg, 2000)
Directors
DS Avnit* KDD de Villiers* Dr M Bernstein* FB Andalaft D
Kalkwarf*
*Non-executive
