| Thu 7 Mar 2002, 0:00 | | Dna Supply Chain Investments Limited - Interim |
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Announcement for the six months ended 31 December 2001
Interim Results and Cautionary Announcement for the six months ended 31
December 2001
DNA Supply Chain Investments Limited
(Incorporated in the Republic of South Africa)
(Registration number 1987/004875/06)
Share code: DNA ISIN: ZAE000022794
(ODNA1 or Othe Group1)
Our aim is true
Our major challenges this year involve setting the groundwork for future
growth.
We are performing in accordance with our strategy and are having success in
developing and attracting the appropriate resources. We are structuring for
growth and our acquisitions are providing services to our clients in new
areas. We will continue to select clients carefully as we seek long-term
relationships that will yield strong annuity streams.
Performance Review
We stated in June 2001 that we were aiming to provide an increasing number
of supply chain services to clients wherever they required them. This
strategy has driven our daily operations and we are providing customers with
additional services both locally and internationally. Based on this, we
have been able to grow turnover by 51% and revenue by 42% . Headline
earnings have increased by 33%. Given DNA1s continued focus on international
income streams, exchange rate fluctuations are a material component of these
earnings.
Three key challenges facing DNA were identified, and the focus in this
reporting period has been on addressing these objectives in a coherent and
integrated way:
Opportunity selection - we are balancing growth and resource constraints,
focusing on opportunities that will offer long-term, sustainable
profitability.
Structuring for growth - we are evolving flexible, scaleable structures to
support the development of client opportunities and processes to support
delivery to clients.
Resourcing - we are attracting and developing highly skilled individuals
required for future growth.
We have broadened our spread of clients to decrease our exposure to the
cyclical nature of the business environment. Our previous reliance on an
under-performing retail sector has been reduced by the growth in, and our
focus on, other sectors of our business. Our established businesses have
performed well and are providing a solid base from which our newer
businesses are constituting themselves. This includes our most recent
acquisitions, Jumpoint and Streamworks, whose services are being
systematically introduced to major DNA clients.
The Group has an excellent balance of clients, a solid infrastructure and
the ability to deal with future growth.
Financial Performance
Turnover for the half year has increased against the comparative period of
the previous year by R360 million; revenue by R117 million to R398 million.
Headline earnings have increased to R36 million. Headline earnings per share
have remained at 5.5c after having issued an additional 177 million shares,
equating to an additional 36% of shares in issue.
Cautionary
Shareholders are advised that the Group is involved in negotiations that may
have a material impact on the DNA share price. Shareholders are accordingly
advised to exercise caution when dealing in their DNA shares until a
detailed announcement is made.
Income Statement for the 6 months ended 31 December 2001
6 months ended 6 months ended Year ended
31 Dec 2001 31 Dec 2000 30 June 2001
(unaudited) (unaudited) (audited)
R'000s R'000s R'000s
Turnover 1 069 928 709 961 1 518 547
Revenue 397 836 280 529 586 087
Operating income before
depreciation 62 139 43 769 85 909
and amortisation
Depreciation 5 156 4 491 10 830
Amortisation - goodwill 8 174 126 11 313
- deferred expenditure 1 842 - -
Net income before finance
charges 46 967 39 152 63 766
Net finance charges 2 338 1 910 1 814
Income before taxation 44 629 37 242 61 952
Taxation 12 374 8 450 13 227
Income after taxation 32 255 28 792 48 725
Outside shareholders' interest 4 530 1 943 4 061
Attributable income 27 725 26 849 44 664
Headline earnings reconciliation
Attributable income 27 725 26 849 44 664
Amortisation of goodwill 8 174 126 11 313
Discontinued operations - - 2 111
Headline earnings 35 899 26 975 58 088
Headline earnings per share
(cents) 5.5 5.5 10.7
Earnings per share (cents) 4.2 5.5 8.2
Diluted earnings per share
(cents) 4.2 5.3 8.1
Weighted average number of
shares (000s) 658 432 487 378 543 915
Number of shares at period
end (000s) 664 288 487 378 630 020
Diluted number of shares
(000s) 658 432 503 930 554 317
Balance Sheet at 31 December 2001
31 Dec 2001 31 Dec 2000 30 June 2001
(unaudited) (unaudited) (audited)
R'000s R'000s R'000s
ASSETS
Non-current assets 164 470 47 414 133 285
Property plant and equipment 24 652 21 641 21 616
Patents and trademarks 2 069 1 486 1 460
Deferred expenditure 7 357 - 7 796
Goodwill 104 947 2 392 78 562
Deferred taxation 5 368 1 151 2 955
Investments and loans 20 077 20 744 20 896
Current assets 506 283 289 425 414 705
Inventories 28 618 18 947 26 783
Accounts receivable 443 776 248 252 293 942
Bank and cash 33 889 22 226 93 980
Total assets 670 753 336 839 547 990
EQUITY & LIABILITIES
Capital & reserves 296 816 98 660 228 933
Share capital and premium 166 849 31 551 144 627
Currency translation reserve 20 503 3 185 2 567
Retained income 109 464 63 924 81 739
Outside shareholders' interest 7 566 3 572 2 036
Non-current liabilities 2 361 3 348 2 477
Interest-bearing borrowings
Current liabilities 364 010 231 259 314 544
Accounts payable 281 781 150 002 238 095
Current portion of
interest-bearing borrowings 13 641 9 926 10 144
Vendors for businesses acquired 420 - 3 920
Bank overdraft 55 983 63 327 51 853
Taxation 12 185 8 004 10 532
Total equity & liabilities 670 753 336 839 547 990
Net asset value per share
(cents) 44.7 20.2 36.3
Tangible net asset value per
share (cents) 27.5 19.4 22.4
Number of shares
at period end (000s) 664 288 487 378 630 020
Statement of Changes in Equity for the 6 months ended 31 December 2001
Share capital Currency translation Retained Total
& premium reserve income equity
R'000s R'000s R'000s R'000s
Balance - 1 July 2001 144 627 2 567 81 739 228 933
Issue of new shares 22 361 - - 22 361
Share issue expenses (139) - - (139)
Currency
translation reserve - 17 936 - 17 936
Attributable income for the
six months ended
31 December 2001 - - 27 725 27 725
Balance - 31Dec 2001 166 849 20 503 109 464 296 816
Cash Flow Statement for the 6 months ended 31 December 2001
6 months ended 6 months ended Year ended
31 Dec 2001 31 Dec 2000 30 June 2001
(unaudited) (unaudited) (audited)
R'000s R'000s R'000s
Cash flows from operating
activities (38 848) (4 807) 64 953
Cash flows from operations 63 066 43 025 85 613
Increase in working capital (89 312) (36 438) (1 360)
Net finance charges (2 338) (1 910) (1 814)
Taxation paid (10 224) (9 484) (13 987)
Dividends paid to minority
shareholders (40) - (3 499)
Cash flows from investing
activities (50 976) (61 290) (159 957)
Net additions to property
plant and equipment (7 984) (7 166) (12 996)
Deferred expenditure (1 010) - (7 796)
Purchase of businesses (38 374) (12 960) (90 725)
Decrease in vendors for
businesses acquired (3 500) (35 580) (31 660)
Investments and loans (108) (5 584) (16 780)
Cash flows from financing
activities 25 603 3 737 115 872
Increase in ordinary share
capital 3 - 15
Increase in share premium 22 358 - 112 829
Share issue expenses (139) (744) (510)
Increase in redeemable
preference shares - - (2)
Increase in interest-bearing
borrowings 3 381 4 481 3 540
Net (decrease) increase in
Cash and cash equivalents (64 221) (62 360) 20 868
Cash and cash equivalents at
beginning of period 42 127 21 259 21 259
Cash and cash equivalents at
end of period (22 094) (41 101) 42 127
Notes to the Interim Financial Statements
1. These Interim Financial Statements have been prepared in accordance
with Statements of Generally Accepted Accounting Practice.
2. The accounting policies used in the preparation of the Interim
Financial Statements are consistent with those used in the Annual Financial
Statements for the year ended 30 June 2001.
3. The Group has commitments for future capital expenditure of R1.4
million.
4. Revenue is calculated by deducting statutory and other disbursements,
made on behalf
of clients, from gross billings.
5. Working capital funding requirements historically increase over the
December period as a result of short-term cyclical trading patterns.
Directors
SA Conradie (Chairman), MJ Kaplan (Chief Executive Officer), PM Baker, Prof
NA Binedell*, L Brenner, AG Dandridge, R Krishnasamy* (Alternate L Jen
Yuh*), H Pieterman*, RC Pople, AB Rubenstein*,
I Shongwe*, V Tchenquiz* (Alternate J Parente*)
* non-executive
For and on behalf of the Board 5 March 2002
Stephen Conradie ( Chairman )
Mark Kaplan ( Chief Executive Officer )
Registered Office
The Woodlands
Building 16
1st Floor
Cnr Kelvin and Woodlands Drive
Woodmead
2199
Transfer Secretaries
Computershare Services Limited
Edura House 41 Fox Street
Johannesburg
2001
PO Box 6105
Marshalltown
2107
Sponsor
Standard Corporate and Merchant Bank
(A division of The Standard Bank of South Africa Limited)
(Registration number 1962/000738/06)
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