| Wed 20 Feb 2002, 0:00 | | Ec-hold - Unaudited Group Results For The Twelve |
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2001
EC-hold Holdings Limited
Registration number 1998/20093/06
("EC-Hold" or "the company")
Share code : ECH
ISIN Code : ZAE000013249
Unaudited group results for the twelve months ended 31 December 2001
Consolidated income statement
Unaudited Audited
12 months to16 months to
31 December 31 December
2001 2000
R'000 R'000
Revenue 145,732 72,439
Operating income/(loss)
before depreciation 7,594 (3,080)
Depreciation (1,188) (1,744)
Operating income/(loss) 6,406 (4,824)
Net finance income 1,024 3,126
Net income/(loss) before taxation 7,430 (1,698)
Deferred taxation 2,219 (491)
Income/(loss) attributable to
ordinary shareholders 5,211 (1,207)
Weighted average number of ordinary
shares in issue (thousands) 104,040 104,040
Headline earnings/(loss) per ordinary
share (cents) 5.0 (1.2)
Earnings/(loss) per ordinary share (cents)5.0 (1.2)
Summarised consolidated balance sheet
Unaudited Audited
31 December31 December
2001 2000
R'000 R'000
Assets
Non-current assets 45,777 34,008
Fixed assets 1,005 1,397
Research and development 6,400 3,669
Deferred tax 26,440 28,659
Financial assets 11,932 283
Current assets 46,344 52,351
Cash resources 14,723 26,990
Other current assets 31,621 25,361
Total assets 92,121 86,359
Equity and liabilities
Shareholders' equity 53,299 48,088
Vendor loan 7,600 7,600
Non-current liabilities
Interest bearing 9,235 8,018
Current liabilities 21,987 22,653
Total equity and liabilities 92,121 86,359
Number of ordinary shares in
issue (thousands) 104,040 104,040
Net tangible asset value per ordinary
share (cents) 19,4 14,9
Summarised consolidated cash flow statement
Unaudited Audited
12 months to16 months to
31 December 31 December
2001 2000
R'000 R'000
Cash generated from operations
before working capital changes 7,594 (3,104)
Working capital changes (5,858) 6,537
Net finance income 1,024 3,126
Taxation paid (1,068)
Cashflow from operating activities 1,692 6,559
Cashflow from investing activities (15,176) (24,960)
Cashflow from financing activities 1,217 (851)
Net decrease in cash and
cash equivalents (12,267) (19,252)
Cash and cash equivalents at the
beginning of the period 26,990 46,242
Cash and cash equivalents at the end
of the period 14,723 26,990
Statement of changes in equity
Non- Outside
Distrib- Distrib- share-
Share Share utable utable holders'
capital premium reserve reserve interest Total
Balance
1 January 2001 1,040 11,118 6,768 28,923 239 48,088
Net income
for the period 5,211 5,211
1,040 11,118 11,979 28,923 239 53,299
Commentary
Trading Review
In the twelve month period to 31 December 2001 the group achieved a
satisfactory level of profitability. During this time EC-Hold experienced an
improved trading environment following the restructure of the group. The
group expects this trend to be maintained.
Revenue increased 101% to R145,7 million, with attributable income moving
from a loss of R1,2 million in the sixteen months to 31 December 2000, to a
profit of R5,2 million for the twelve months under review.
As a result of the investments outlined below, cash resources were reduced
from R27,0 million to R14,7 million.
Investments
EC-Hold followed its rights in Correlate at a cost of R9,8 million. Connect
One is currently negotiating an additional round of investment and EC-Hold
will announce its position regarding its 22% shareholding in due course. The
investment in Intervate Solutions is progressing well and an additional
round of investment is being concluded which will enable the company to
globalize its products.
MGX
Shareholders are referred to the cautionary announcement published by the
company and the announcement by MGX Holdings Ltd ("MGX") on 2 August 2001 in
which it was stated that MGX acquired additional shares in EC-Hold to take
its interest in the company to 72.5%. MGX also expressed its intention to
buy out the balance of the minorities on terms that are subject to the
outcome of its appeal against the ruling of the Securities Regulation Panel
as disclosed in the EC-Hold announcement published on 10 August 2001.
In a subsequent cautionary announcement on 11 October 2001, shareholders
were advised to continue to exercise caution in dealing in their shares
pending an appeal lodged by MGX and a Price family trust with the Securities
Regulation Panel against the previous rulings made by the Executive
Committee of the Securities Regulation Panel.
Prospects
EC-Hold is expected to continue to operate profitably and will benefit
further from the synergies arising from MGX's increased shareholding.
Dividends
The directors have decided that the interests of the shareholders are best
served if the company does not pay a dividend. Cash generated will be re-
invested in the group.
Change of Year End
The company has changed its year end to 30 June 2002 (an eighteen month
period) in line with that of its holding company, MGX.
This confirms that the financial statements were prepared in accordance with
the South African Statements of Generally Accepted Accounting Practice and
are consistent with the Company's accounting policies.
Amir Lubashevsky
Chief Executive Officer
20 February 2002
Directors
A Lubashevsky, T H Appel, R Brickhill, R Shirley*
* Non-executive
