| Fri 1 Feb 2002, 0:00 | | Interconnective Solutions Ltd - Interim Report For |
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October 2001
Interconnective Solutions Limited
(Incorporated in the Republic of South Africa)
(Registration Number 1997/010640/06)
("Solutions" or "the company")
SHARE CODE : ILT
ISIN CODE : ZAE000017943
INTERIM REPORT FOR THE SIX MONTHS ENDED 31 OCTOBER 2001
31 October
2001 2000 Increase/
R R (Decrease) %
INCOME STATEMENT
Revenue 4,444,131 5,767,724 -23
Other operating income 321,316 351,585 -9
Changes in inventory -197,764 -33,251 495
Direct operating costs -2,756,710 -4,094,513 -33
Staff Costs -1,719,349 -1,749,163 -2
Depreciation and
amortisation expenses -416,624 -280,676 48
Other operating expenses -1,449,815 -2,087,045 -13
Loss from operations -1,774,815 -2,125,339 -16
Finance costs -54,654 -12,740 329
Investment income 75,635 273,320 -72
Loss attributable to
ordinary shareholders -1,753,834 -1,864,759 -6
Number of shares in
issue at end of period 96,600,000 96,600,000
Weighted number of shares
in issue
at end of period 96,600,000 96,600,000
Earnings per share - fully
diluted -1.8 -1.9 -6
Headline earnings per
share - fully diluted -1.8 -1.5 19
Reconciliation between
earnings and headline earnings
Per the income statement -1,753,834 -1,864,759 -6
Items included in other
operating expenses:
Goodwill amortised - 82,682
Loss on disposal of
investments - 313,540
Headline earnings -1,753,834 -1,468,537 19
STATEMENT OF CHANGES IN EQUITY
Share Capital 96,600 96,600
Balance at beginning
of period 96,600 95,000
Issue of share capital 1,600
Share Premium 12,483,431 12,478,364
Balance at beginning
of period 12,483,431 11,707,106
Issues during the year - 798,400
Share issue costs - -27,142
Accumulated losses -7,379,795 -3,590,418
Balance at beginning
of period -5,625,961 -1,725,659
Attributable losses -1,753,834 -1,864,759
5,200,236 8,984,546
31 October
2001 2000
R R
BALANCE SHEET
Assets
Non Current Assets 4,316,943 4,193,375
Fixed assets 1,688,500 1,646,707
Intangible assets 1,827,943 1,915,096
Loans receivable 800,000 300,000
Unlisted Investments - 331,072
Investments in associates
and subsidiaries 500 500
Current Assets 3,833,791 9,811,526
Inventory 383,904 150,925
Trade and other receivables 1,822,004 3,637,870
Cash and cash equivalents 1,627,883 6,022,731
Total Assets 8,150,734 14,004,901
EQUITY AND LIABILITIES
Capital and reserves 5,200,236 8,984,546
Non current liabilities 433,181 860,542
Long term loans
Current Liabilities 2,517,317 4,159,813
Trade and other payables 2,281,064 4,159,813
Current portion of
non-current liabilities 236,253 -
Total Liabilities 8,150,734 14,004,901
CASH FLOW STATEMENT
Cash flow from operating
activities -2,396 331,716
Net cash (utilized) /
generated by operations -23,377 77,382
Finance costs -54,654 -12,740
Investment income 75,635 273,320
Taxation paid - -6,246
Cash flow from investing
activities -662,639 -1,571,846
Cash flow from financing
activities 268,695 796,477
Net decrease in cash and
cash equivalents -396,340 -443,653
Cash/cash equivalents at
beginning of year 2,024,223 6,466,384
Cash/cash equivalents at
end of year 1,627,883 6,022,731
FINANCIAL RESULTS
Turnover for the 6 months ended October 2000, has been restated, due to the
fact that the group does not recognize sales on cellular products as
turnover in the current year, but did in the previous. Gross sales on
cellular products was R 7.1 million in the current period, and R 3.3 million
in the prior period. The commission earned on these sales is included in
turnover.
Turnover is 23% lower, due to the fact that the previous period included 6
months of trading with Retail Card Club, whose trading contracts were taken
over by Unitrade Management Services(Pty) Ltd in July.
Financing costs have increased due to the fact that there are more
installment sale agreements in the current period. Interest received has
decreased due to the company having less cash resources.
Inventory levels have increased due to the company now carrying larger
quantities of cellular products to meet its customers need. Trade
receivables and payables have decreased considerably due to the fact that
Retail Card Club's trading contracts were disposed to Unitrade in the
current period.
The group has sustained losses due to the fact that there has been a delay
in a number of contracts and licenses coming to fruition. In addition some
of the enabling technology was still under development during the period
under review, which impacted negatively on the earnings. Many new
technologies have been developed for specific clients which will enable the
platform to reach critical mass. The company is in the process of concluding
new joint ventures which will help it to reach a profitable status in the
future.
FUTURE PROSPECTS
As mentioned in the annual report of 2001 the group completed its
restructuring during the period. The group is now operating within it new
focus, which is to provide unified communication services as an Application
Service Provider. These services include; Interactive voice response, Fax to
email, Fax on demand, Voice recognition, Text to speech, SMS and related
services.
It is anticipated that the groups results for the following six month
period, will be an improvement on the current period.
By order of the board
Interconnective Solutions Limited
Johannesburg
31 January 2002
The above financial information, has been prepared in accordance with the
South African statements of GAAP. The accounting policies and methods of
the computation used are consistent with those used in prior period, with
the exception of turnover, which was changed during the year ended April
2001, as detailed above.
