| Wed 13 Feb 2002, 0:00 | | Erp.com - Unaudited Interim Results For The Six |
|
ERP.com Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/010017/06)
("ERP.com" or "the Group")
Share code: ERP
ISIN number: ZAE 0000 19311
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 JANUARY 2002
- Highlights
- Revenue up 70%
- Income after tax up 85%
- Headline earnings per share up 85%
- Cash reserves up 153%
Summarised group income statement
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
31 January 31 January 31 July
2002 2001 2001
R'000 R'000 R'000
Revenue 57 285 33 736 69 121
Net income before taxation 8 340 4 498 10 579
after taking into account the
following items:
Net interest received 419 332 714
Depreciation (913) (646) (1 409)
Goodwill amortised (52) - (43)
Taxation (2 502) (1 349) (3 060)
Net income for the period
attributable to shareholders 5 838 3 149 7 519
Weighted number of shares on
which earnings per share is
based ('000) 161 399 161 399 161 399
Headline earnings per
share (cents) 3,7 2,0 4,7
Net asset value per
share (cents) 14,4 8,1 10,7
Summarised group balance sheet
Unaudited Unaudited Audited
31 January 31 January 31 July
2002 2001 2001
R'000 R'000 R'000
ASSETS
Non-current assets 6 734 5 240 6 297
Equipment 5 055 3 889 5 408
Goodwill 1 180 438 390
Deferred taxation 499 913 499
Current assets 37 312 21 124 25 759
Inventories 332 202 208
Contracts in progress 1 469 721 952
Trade and other receivables 17 496 13 088 15 064
Cash and cash equivalents 18 015 7 113 9 535
Total assets 44 046 26 364 32 056
EQUITY AND LIABILITIES
Capital and reserves 23 237 13 029 17 399
Share capital and premium 8 755 8 755 8 755
Retained income 14 482 4 274 8 644
Current liabilities 20 809 13 335 14 657
Trade and other payables 19 332 9 960 12 085
South African Revenue Service 1 477 3 375 2 572
Total equity and liabilities 44 046 26 364 32 056
Summarised group cash flow statement
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
31 January 31 January 31 July
2002 2001 2001
R'000 R'000 R'000
Operating activities 9 862 1 948 6 644
Investing activities (1 382) (1 947) (4 221)
Financing activities - - -
Net increase in cash and cash
equivalents 8 480 1 2 423
Cash and cash equivalents
- at beginning of period 9 535 7 112 7 112
- at end of period 18 015 7 113 9 535
Statement of changes in equity
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
31 January 31 January 31 July
2002 2001 2001
R'000 R'000 R'000
Share capital 161 161 161
Balance at beginning of period 161 161 161
Issued during the period - - -
Share premium 8 594 8 594 8 594
Balance at beginning of period 8 594 8 594 8 594
Issued during the period - - -
Retained income 14 482 4 274 8 644
Balance at beginning of period 8 644 1 125 1 125
Net income for the period 5 838 3 149 7 519
Total capital and reserves 23 237 13 029 17 399
Comments
The Directors are pleased with the performance of the Group for the first
six months of this year, which has featured strong revenue growth whilst
maintaining high operating margins. Coupled with tight cash management, this
has resulted in 153% growth in cash reserves over the comparable period.
Group overview and review
The Group is focused on the implementation, integration and management of
enterprise wide information technology applications. The Group concentrates
on three major markets:
- enterprise applications,
- information security, and
- networking and infrastructure.
The enterprise applications market has seen a strong resurgence in business
over the past twelve months, as medium to large sized companies are now
starting to upgrade their legacy systems and convert to the new generation
of Internet-based technologies. We are proud to represent the `Big 3' in
global enterprise application systems: JD Edwards, PeopleSoft and SAP.
The information security market is growing rapidly along with the growth in
Internet-based business, particularly in the areas of anti-virus, content
security, intrusion detection and managed services. The acquisition of
SecureData in February 2000 has provided the Group with a strong foothold in
this market.
The Group consists of five operating subsidiaries, each of which has a clear
focus area and solution capability.
activ8 PeopleSoft e-business solutions
activ8 is the sole distributor of PeopleSoft e-business applications
software in Southern Africa and has achieved considerable success in the
period under review. PeopleSoft's Internet-based architecture is gaining
rapid acceptance on a global basis and activ8 anticipates a number of key
wins over the next twelve months.
Bateleur Customised Solutions Networking
Bateleur specialises in the design, implementation and management of network
solutions with a focus on desktop, thin client and server-based computing
architecture.
ERP.com JD Edwards e-business solutions
ERP.com has become one of the leading JD Edwards solution providers in the
country with a growing customer base. The Company provides end-to-end e-
business solutions around JD Edwards' technology, including implementation,
support, outsourcing and system integration.
iServe SAP e-business solutions
iServe provides end-to-end e-business solutions around SAP technology with a
strong focus on ASP and outsourced solutions. iServe won significant new
business during the period under review and expects to grow this business
substantially over the next twelve months. iServe is well positioned to
become one of the leading SAP implementers and outsource partners in
Southern Africa.
SecureData Information security solutions
SecureData has emerged as a market leader in the rapidly growing information
security market through the sale and support of world-class security
solutions in the areas of anti-virus, content security, firewalls, network
asset management, intrusion detection and managed services.
Prospects
All five subsidiaries have performed extremely well over the past six months
with excellent growth in market share and earnings. They are all in high
growth markets and we anticipate a strong second six months. In the
publication of our last year-end results we indicated that we would achieve
a minimum growth of 25% in earnings per share for the coming year. We would
like to advise the market that we expect to significantly exceed that
forecast.
With our growth in cash reserves and a gradually improving share price, the
Group will be looking for suitable acquisition opportunities over the next
twelve months.
Main board listing
By 31 July 2002 the Group will have successfully completed its three years
on the Venture Capital Sector of the JSE and believes that it will then have
met all the requirements for a main board listing in the Information
Technology Sector. Consequently we will be applying to the JSE for this
transfer towards the end of 2002.
Accounting policy
The financial information provided above has been prepared in accordance
with the Generally Accepted Accounting Practice.
The accounting policies used in preparing the above information are
consistent with those of the previous financial year.
For and on behalf of the board of directors
Peter Forsyth
Chief executive officer
13 February 2002
Johannesburg
Directors:
P Forsyth (Chief executive officer), DTK Brazier*, CJLessing*, GM Morris# PR
Pretorius#, MM Spilhaus*
* Executive directors # Non-executive directors
Company secretary:
AJ Ritzlmayr
Registered address:
ERP.com House, Nanyuki Office Park 69 Nanyuki Drive, Sunninghill, Sandton
2157
(PO Box 2880, Rivonia 2128)
Transfer secretaries:
Computershare Services Limited
4th Floor, Edura, 41 Fox Street, Johannesburg 2001
(POBox 61051, Marshalltown 2107)
www.erpcom.co.za
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