| Thu 31 Jan 2002, 0:00 | | Zaptronix - Unaudited Results |
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ZAPTRONIX
(Registration number 1997/014928/06)
UNAUDITED RESULTS
FOR THE SIX MONTHS ENDED 31 OCTOBER 2001
Consolidated Income Statement
Unaudited Unaudited Audited
for the for the for the
six months six months 12 months
ended ended ended
31 October 31 October 30 April
2001 2000 2001
R'000 R'000 R'001
Revenue 6 613 10 966 16 119
Net operating loss
before interest (7 017) (2 153) (13 999)
Interest received 233 796 1 264
Finance costs - (240) (118)
Net operating loss
after interest (6 784) (1 597) (12 853)
Share of associate
(loss) income (126) 255 (278)
Net loss before taxation (6 910) (1 342) (13 131)
Taxation 1 996 (55) 3 575
Net loss after taxation (4 914) (1 397) (9 556)
Outside shareholders'
interest 27 37 662
Net loss for the period (4 887) (1 360) (8 894)
Loss per ordinary share (cents) (3,37) (0,97) (6,37)
Headline loss per ordinary
share (cents) (3,37) (0,97) (6,37)
Consolidated balance sheet
Unaudited at Unaudited at Audited at
31 October 31 October 30 April
2001 2000 2001
R'000 R'000 R'000
ASSETS
Fixed assets and intangibles 29 066 30 414 29 245
Investments 4 251 4 909 4 376
Current assets excluding cash 4 386 8 519 5 841
Cash and cash equivalents 5 792 19 154 10 640
Total assets 43 495 62 996 50 102
EQUITY AND LIABILITIES
Share capital and premium 26 749 26 749 26 749
Reserves 10 667 23 003 15 542
Share capital and reserves 37 416 49 752 42 291
Outside shareholders' interest 2 654 29
Deferred tax 2 818 7 511 4 814
Total capital and reserves 40 236 57 917 47 134
Current liabilities 3 259 5 079 2 968
Total equity and liabilities 43 495 62 996 50 102
Net asset value per share (cents) 25,8 34,4 29,2
Net tangible asset value per
share (cents) 16,7 24,6 19,3
Cash value per share (cents) 4,0 13,2 7,3
Consolidated cash flow Statement
Unaudited Unaudited Audited
for the for the for the
six months six months 12 months
ended ended ended
31 October 31 October 30 April
2001 2000 2001
R'000 R'000 R'001
Cash utilised from operations (928) (1 866) (7 982)
Finance income 233 556 1 146
Taxation paid - (555) (557)
Net cash utilised for operating
activities (695) (1 865) (7 393)
Net cash flow from investing
activities (4 153) (3 818) (6 804)
Cash flow from financing
activities - 20 479 20 479
Net change in cash and cash
equivalents (4 848) 14 796 6 282
Cash and cash equivalents at
the beginning of the period 10 640 4 358 4 358
Cash and cash equivalents at
the end of the period 5 792 19 154 10 640
Statement in changes in equity
for the six month period ended 31 October 2001
Share
capital Non- Distri-
and share distributable butable Outside
premium reserve reserve shareholders Total
Balance at beginning
of the period 26 749 7 776 7 767 29 42 321
Net loss (4 887) (4 887)
Outside shareholders (27) (27)
Foreign currency
translation reserve 11 11
Realised portion of
revalued assets - -
Balance at end
of the period 26 749 7 787 2 880 2 37 418
Notes:
(1) No dividend will be declared.
(2) The accounting policies used are consistent with those used in prior
periods.
COMMENT
At the time the financial results for the year ended 30 April 2001 were
published in the press we stated that we envisaged the company being
restored to profitability by the end of the current financial year. Losses
were expected for the first half of the year.
For the period under review the company and the Group consisted of both
an "old commerce" and a "new commerce" business. The "old commerce" business
was involved in the specialised outsourced manufacture of electronic
assemblies and was based in Pinetown, and the "new commerce" business is
involved in the development and enabling of e-commerce solutions,
specialising in payment solutions that involve predominantly the use of
smart card technology and the internet.
The process of restoring the business to profitability included inter
alia the negotiation of significant new contracts to generate throughput for
the "old commerce" business. It was noted in the cautionary announcement
dated 2 November 2001 that a significant contract being negotiated with
Invensys PLC had been modified and that this would further adversely affect
the performance of the company. The Invensys discussions were terminated as
an appropriate commercial agreement could not be concluded. This
precipitated a decision by the directors, with the backing of the major
shareholders, to curtail and terminate the operations of the "old commerce"
business and to sell its assets. This was announced to shareholders on 7
December 2001. The assets of the plant are currently being sold and a full
announcement will be made to shareholders when the sales have been
concluded.
The closure of the "old commerce" business and the sale of its assets
will result in a smaller, more focused and creative operation with cash on
the balance sheet and a significantly reduced overhead structure. The
business will focus on the further development and commercialisation of
various electronic payment solutions developed by the Group, including but
not limited to hardware and software associated with digital rights
management, secure money/point transfers across unsecured networks (like the
Internet), biometric-based payment systems, loyalty and reward systems and
club and school smart card-based purse schemes.
The board and the major shareholders feel that delisting the company at
this stage will not allow shareholders to realise the full potential value
of the intellectual property within the Group. The board will attempt to
maximise shareholder value by remaining listed and using the proceeds of the
disposal of the "old commerce" business to fund the "new". The company will
most likely enter into new partnerships to achieve this end.
In accordance with the downsizing of the business to a small focused and
creative operation, the board of directors has been reduced in number. The
board now consists of John Heath (CEO), Jens Stratenwerth (CTO) and Chiaki
Fujiwara (Hitachi representative). Messrs Adams, Appelbaum, Brews, Curry and
Thompson have collectively resigned effective from 30 January 2002 with the
exception of Thompson whose resignation is effective 30 March 2002. The
board thanks them for their contribution to the company.
We would like to thank our shareholders and investors, staff, partners,
customers and suppliers for their ongoing support.
The Board
31 January 2002
EGOLF CARD DYNAMICS GIS MARKETING ZAPTRONIX SYSTEMS ECLUB
