| Mon 25 Feb 2002, 0:00 | | Privest Group Limited - Interim Results For The Si |
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2001
PRIVEST GROUP LIMITED
Solutions - Training - Recruitment - Outsourcing
People - Productivity - Performance
INTERIM RESULTS
for the six months ended 31 December 2001
INCOME STATEMENT
Restated
Unaudited unaudited Audited
6 months 6 months 16 months
ended ended ended
31 December 31 August 30 June
2001 2000 2001
R'000 R'000 R'000
Revenue 291 133 327 389 780 753
Operating profit 9 399 11 173 30 148
Depreciation 2 267 2 437 6 539
Net income before
interest 7 132 8 736 23 609
Net interest paid 3 450 2 139 5 790
Net income before
exceptional items 3 682 6 597 17 819
Exceptional items - 1 315 3 764
Restructuring charges - 3 081 7 664
Net income
before taxation 3 682 2 201 6 391
SA normal taxation
- current - - (380)
- deferred 1 204 539 2 750
Net income attributable to
shareholders 2 478 1 662 4 021
Headline earnings 2 478 2 582 7 390
Weighted average
number of shares ('000) 140 610 155 978 144 713
Headline earnings
per share (cents) 1,76 1,66 5,11
Earnings per
share (cents) 1,76 1,07 2,78
BALANCE SHEET
Restated
Unaudited unaudited Audited
31 December 31 August 30 June
2001 2000 2001
R'000 R'000 R'000
Assets
Non-current assets 44 583 55 828 47 536
Equipment and vehicles 8 212 13 748 10 217
Intangible assets 256 - -
Deferred tax asset 34 669 38 084 35 873
Advance to the
share trust 1 446 3 996 1 446
Current assets 129 582 141 900 100 396
Inventories 627 182 386
Trade and other
receivables 108 260 122 613 93 557
Taxation 197 - 192
Cash at bank 20 498 19 105 6 261
Total assets 174 165 197 728 147 932
Equity and liabilities
Capital and reserves 77 610 92 309 75 132
Non-current liabilities 1 948 3 344 1 934
Current liabilities 94 607 102 075 70 866
Trade and other
payables 39 584 56 777 29 442
Short-term borrowings 52 280 38 968 38 242
Taxation - 6 330 -
Bank overdraft 2 743 - 3 182
Total equity and
liabilities 174 165 197 728 147 932
Number of shares
in issue at
period-end ('000) 140 610 156 233 140 610
Net asset value
per share (cents) 55 59 53
NOTES
Restated
Unaudited unaudited Audited
6 months 6 months 16 months
ended ended ended
31 December 31 August 30 June
2001 2000 2001
R'000 R'000 R'000
Reconciliation of
headline earnings
Net income attributable
to shareholders 2 478 1 662 4 021
After tax effect
of adjustment of
acquisition debits - 920 920
Impairment of advance
to share trust - - 2 449
2 478 2 582 7 390
Prior year adjustment
Debits arising from
businesses previously
under the management
control of vendors
prior to the
reorganisation of
the Group - (18 826) (18 826)
Adoption of AC102
in respect of
deferred taxation - 32 512 32 512
- 13 686 13 686
STATEMENT OF CHANGES IN EQUITY
Restated
Unaudited unaudited Audited
6 months 6 months 16 months
ended ended ended
31 December 31 August 30 June
2001 2000 2001
R'000 R'000 R'000
Balance at beginning
of period
- as previously shown 75 132 115 455 115 455
Prior year adjustment - 13 686 13 686
Balance at beginning
of period
- restated 75 132 129 141 129 141
Net shares reversed
during the period - (180) (174)
Net share premium
reversed during
the period - (17 658) (52 399)
Intangible asset
and share issue
expenses written off - (20 656) (58)
Repurchase of securities - - (5 399)
Net income for the period 2 478 1 662 4 021
Balance at end of
the period 77 610 92 309 75 132
CASH FLOW STATEMENT
Restated
Unaudited unaudited Audited
6 months 6 months 16 months
ended ended ended
31 December 31 August 30 June
2001 2000 2001
R'000 R'000 R'000
Operating activities 1 180 30 373 17 066
Investing activities (555) (44 256) (44 962)
Financing activities 14 051 7 605 5 386
Net increase/(decrease)
in cash at bank 14 676 (6 278) (22 510)
Cash obtained from
businesses
disposed of - - 206
Cash at bank at
beginning of
the period 3 079 25 383 25 383
Cash at bank at
end of the period 17 755 19 105 3 079
COMMENTS
PROFILE AND OVERVIEW
Privest Group Limited is a services organisation providing integrated human
resource solutions to industry through its Solutions, Training, Recruitment
and Outsourcing divisions.
FINANCIAL REVIEW
The re-engineering of the Group's business model and the change in financial
year-end have resulted in new trading cycles rendering the previous period
incomparable.
The Group achieved revenue of R291 million and EBITDA of R9,4 million.
Consequently, an EPS of 1,8 cents per share was achieved. Despite
traditionally poor collections over the December period, the Group's cash
position remained stable, with the Group generating positive cash flow.
A segmental analysis indicates the following divisional contributions in
percentage terms for revenue and EBITDA, respectively: Solutions 1,4% and -
1,4%; Training 5,4% and 6,0%; Recruitment 3,2% and 11,6% and Outsourcing 90%
and 83,8%.
OPERATIONAL REVIEW
The performance of the Solutions and Training divisions remained negatively
affected by weak market conditions and additional investment in
infrastructure to meet expected medium-term demand. The Training division's
Vocational training operations, which incurred a loss for this period,
should see a turnaround in the next six months, and corporate and technical
training expect to benefit from the start of previously delayed contracts.
The Recruitment division performed admirably in achieving budget under
difficult conditions.
The Outsourcing division's performance remained weak due to general margin
pressure, which was compounded by losses incurred by the Mozambican
operations. Although long-term opportunities are to be found in Africa, the
division will only focus on profitable key relationships in this region
whilst enhancing its market leading services to South African industry.
ACCOUNTING POLICIES
The interim financial statements have been prepared in accordance with South
African Statements of Generally Accepted Accounting Practice and the
accounting policies used are consistent with those used in the previous
financial year. The figures for the six months ended 31 August 2000 have
been restated to take into account the effects of the prior year adjustment
accounted for in the 16 months ended 30 June 2001.
DIRECTORATE
During the period under review Mr RS Scott resigned from the Group and Ms JA
Sparke was appointed to the board as chief financial officer.
PROSPECTS
The Group remains committed to its current three-year strategy to normalise
margins and improve working capital management. The Group continues to
measure and modify its business to meet the needs of changing market
requirements so as to improve sustainable performance.
DIVIDEND
No dividend has been declared in line with the Group's policy to consider
dividends at year-end only.
CHANGE OF NAME
Privest is currently seeking approvals from the necessary regulatory bodies
to approve a change of name which will reflect the services culture of the
unified group. An announcement will follow in due course.
For and on behalf of the board
M Abel JA Sparke
Executive chairman Chief financial officer
Johannesburg
25 February 2002
Privest Group Limited ("Privest" or "the Group") Incorporated in the
Republic of South Africa
(Registration number 1997/013448/06)
DIRECTORS: M Abel (Executive chairman), PL Gray (COO), JM Judin* Professor S
Klein* (American), G Magomola*, S Meltzer*, CS Seabrooke*, JA Sparke (CFO)
(*non-executive)
REGISTERED ADDRESS: Suite 321, The Firs, Cnr Cradock and Biermann Avenues,
Rosebank 2196. (PO Box 3008, Saxonwold 2132)
TRANSFER SECRETARIES: Computershare Services Limited, Edura House, 41 Fox
Street, Johannesburg 2001 (PO Box 62391, Marshalltown 2107)
e-mail: productivity@privest.co.za
Share code: PVT
ISIN number: ZAE 0000 14643
CHANGE OF ADDRESS
As from 1 March 2002 our new physical and
registered address will be:
Venture House, Peter Place Park, 54 Peter Place, Bryanston 2021
Tel: +27 11 691 8000 Fax: +27 11 691 8011
www.privest.co.za
