| Mon 11 Mar 2002, 0:00 | | Digicore Holdings Limited - Interim Results For Th |
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December 2001
DIGICORE HOLDINGS LIMITED
Registration Number 1998/012601/06
Share Code: DGC
ISIN: ZAE000016945
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2001
COMMENTS
The directors of DigiCore Holdings Limited are pleased to announce the
company's interim results for the six months ended 31 December 2001.
NATURE OF THE BUSINESS
The business of the DigiCore Group is to provide and disseminate pertinent
management information to its customers, both commercial and industrial, for
the efficient and effective management of mobile assets such as vehicles and
their cargo for both logistic and security purposes, by utilising cutting-
edge information technology. DigiCore strives to attain world leadership in
fleet management solutions through continued research and development and
total commitment to service and customer satisfaction. The group seeks to
achieve outstanding long-term profitability for our shareholders, whilst
maintaining a high standard of ethics, and developing and rewarding our
employees accordingly.
BUSINESS REVIEW
Although no new major contracts were concluded during this period, the group
has and will continue to derive revenue from the deinstallation,
reinstallation and maintenance of the solid 80 000 installed base of C-Track
and Co-Driver units in future. This, in addition to revenue generated from
strategic partners such as debis, Imperial and other blue chip companies,
create a strong annuity income base which will sustain future profits and
expansionary growth. C-Track and Co-Driver have become the de facto standard
and have been integrated into the fleet management operational hub.
The business of the DigiCore Group is to provide and disseminate pertinent
management information to its customers, both commercial and industrial, for
the efficient and effective management of mobile assets such as vehicles and
their cargo for both logistic and security purposes, by utilising cutting-
edge information technology. DigiCore strives to attain world leadership in
fleet management solutions through continued research and development and
total commitment to service and customer satisfaction. The group seeks to
achieve outstanding long-term profitability for our shareholders, whilst
maintaining a high standard of ethics, and developing and rewarding our
employees accordingly.
BUSINESS REVIEW
Although no new major contracts were concluded during this period, the group
has and will continue to derive revenue from the deinstallation,
reinstallation and maintenance of the solid 80 000 installed base of C-Track
and Co-Driver units in future. This, in addition to revenue generated from
strategic partners such as debis, Imperial and other blue chip companies,
create a strong annuity income base which will sustain future profits and
expansionary growth. C-Track and Co-Driver have become the de facto standard
and have been integrated into the fleet management operational hub.
Since acquiring a holding in DigiCore Europe of 50% on 1 July 2001, the
business has turned a profit. Management at DigiCore Europe has upscaled
their marketing drive and appointed key people in pursuing larger
transactions, such as the Hulsink supply contract. Our development enabling
the transfer of data via the more cost-effective Mobitex network, as opposed
to cellular, has also paid off and will create worldwide opportunities for
the group.
Since acquiring a holding in DigiCore Europe of 50% on 1 July 2001, the
business has turned a profit. Management at DigiCore Europe has upscaled
their marketing drive and appointed key people in pursuing larger
transactions, such as the Hulsink supply contract. Our development enabling
the transfer of data via the more cost-effective Mobitex network, as opposed
to cellular, has also paid off and will create worldwide opportunities for
the group.
Over the review period, DigiCore has implemented a number of recommendations
derived from an extensive customer satisfaction survey. Customer
satisfaction levels have since improved markedly, and management is
confident that this will result in increased repeat orders.
FINANCIAL PERFORMANCE
Whereas the pre-debis twelve-month period for the year ended June 2000
reflects turnover at R97,3 million, the following six-month trading period
incorporates the R150 million bumper order received from debis Fleet
Management. To make an objective comparison, shareholders should take
cognisance of the strong improvement in turnover levels, when comparing the
most recent six months trading period, tallying up to R92 million at 31
December 2001, to the full June 2000 year.
DigiCore Holdings earned R227 000 in interest income over the last six
months, whereas the group paid R772 000 in net financing costs during the
previous comparative six-month reporting period. The group ended the interim
period with approximately R7,7 million cash in the bank.
In correlation with the lower revenue levels, profit after tax decreased
from R14 million to R9,2 million. With the number of shares in issue
remaining constant at 239 256 113, headline earnings per share of 4,1 cents
Over the review period, DigiCore has implemented a number of recommendations
derived from an extensive customer satisfaction survey. Customer
satisfaction levels have since improved markedly, and management is
confident that this will result in increased repeat orders.
FINANCIAL PERFORMANCE
Whereas the pre-debis twelve-month period for the year ended June 2000
reflects turnover at R97,3 million, the following six-month trading period
incorporates the R150 million bumper order received from debis Fleet
Management. To make an objective comparison, shareholders should take
cognisance of the strong improvement in turnover levels, when comparing the
most recent six months trading period, tallying up to R92 million at 31
December 2001, to the full June 2000 year.
DigiCore Holdings earned R227 000 in interest income over the last six
months, whereas the group paid R772 000 in net financing costs during the
previous comparative six-month reporting period. The group ended the interim
period with approximately R7,7 million cash in the bank.
In correlation with the lower revenue levels, profit after tax decreased
from R14 million to R9,2 million. With the number of shares in issue
remaining constant at 239 256 113, headline earnings per share of 4,1 cents
declined by 33,8 per cent (2000: 6,2 cents). No dividend will be declared at
the interim stage.
Exports comprise an growing component of group profits. The number of units
exported to Europe, Pakistan and Australia increased by 40% compared to the
previous period. DigiCore Europe contributed R377 000 towards profits.
MANAGEMENT
Renowned businessmen, DuPree Vilakazi, and Nhlanhla Gasa have joined the
board as non-executive directors. DigiCore Holdings stand to benefit from
their business network and knowledge of the telecommunications field.
PROSPECTS
First Auto was awarded a national tender to fit 55 000 government vehicles
with fleet management systems over the next four years. As subcontractor to
First Auto, DigiCore was awarded an initial R1,2 million order for the
supply of 112 C-Track systems and other peripherals, installed across the
entire ambulance and response vehicle fleet of the Mpumalanga Provincial
Government.
The long-awaited taxi tender is reaching finalisation. DigiCore Holdings is
encouraged by Government's focus on improved control and safety measures,
areas in which our products can undoubtedly add value.
Our technology and systems are under evaluation by various domestic as well
as international OEMs and large corporates, and we are confident that the
group will secure a significant portion of this business in the near future.
Income statement
Six Six Six Year
months months months ended
ended 31 ended 30 ended 31 30 Jun
Dec 2001 Jun 2001 Dec 2000 2001
R'000 Unaudited Unaudited Unaudited Audited
Revenue 92 060 135 222 173 273 308 495
Operating profit before 14 788 16 934 27 664 44 598
depreciation
Depreciation 3 688 4 990 3 346 8 336
Amortisation of goodwill 613 611 607 1 218
Net operating profit 10 487 11 333 23 711 35 044
Net finance 227 293 (772) (479)
income/(cost)
Share of income of 377 - - -
associates
declined by 33,8 per cent (2000: 6,2 cents). No dividend will be declared at
the interim stage.
Exports comprise an growing component of group profits. The number of units
exported to Europe, Pakistan and Australia increased by 40% compared to the
previous period. DigiCore Europe contributed R377 000 towards profits.
MANAGEMENT
Renowned businessmen, DuPree Vilakazi, and Nhlanhla Gasa have joined the
board as non-executive directors. DigiCore Holdings stand to benefit from
their business network and knowledge of the telecommunications field.
PROSPECTS
First Auto was awarded a national tender to fit 55 000 government vehicles
with fleet management systems over the next four years. As subcontractor to
First Auto, DigiCore was awarded an initial R1,2 million order for the
supply of 112 C-Track systems and other peripherals, installed across the
entire ambulance and response vehicle fleet of the Mpumalanga Provincial
Government.
The long-awaited taxi tender is reaching finalisation. DigiCore Holdings is
encouraged by Government's focus on improved control and safety measures,
areas in which our products can undoubtedly add value.
Our technology and systems are under evaluation by various domestic as well
as international OEMs and large corporates, and we are confident that the
group will secure a significant portion of this business in the near future.
Income statement
Six Six Six Year
months months months ended
ended 31 ended 30 ended 31 30 Jun
Dec 2001 Jun 2001 Dec 2000 2001
R'000 Unaudited Unaudited Unaudited Audited
Revenue 92 060 135 222 173 273 308 495
Operating profit before 14 788 16 934 27 664 44 598
depreciation
Depreciation 3 688 4 990 3 346 8 336
Amortisation of goodwill 613 611 607 1 218
Net operating profit 10 487 11 333 23 711 35 044
Net finance 227 293 (772) (479)
income/(cost)
Share of income of 377 - - -
associates
Profit before tax 11 091 11 626 22 939 34 565
Taxation 1 908 2 599 8 782 11 381
Profit after taxation 9 183 9 026 14 157 23 183
Attributable to outside 29 (67) - (67)
shareholders
Earnings attributable to 9 212 8 959 14 157 23 116
ordinary shareholders
Statistics
Number of shares in
issue (000s)
- end of period 239 256 239 256 239 256 239 256
- weighted average 239 256 239 256 239 256 239 256
Headline earnings per 4,1 4,6 6,2 10,8
share (cents)
Earnings per share 3,9 3,8 5,9 9,7
(cents)
EBITDA (%) 16,1 12,5 16,0 14,5
Reconciliation of
headline earnings
Profit before tax 11 091 11 626 22 939 34 565
Taxation 1 908 2 599 8 782 11 381
Profit after taxation 9 183 9 026 14 157 23 183
Attributable to outside 29 (67) - (67)
shareholders
Earnings attributable to 9 212 8 959 14 157 23 116
ordinary shareholders
Statistics
Number of shares in
issue (000s)
- end of period 239 256 239 256 239 256 239 256
- weighted average 239 256 239 256 239 256 239 256
Headline earnings per 4,1 4,6 6,2 10,8
share (cents)
Earnings per share 3,9 3,8 5,9 9,7
(cents)
EBITDA (%) 16,1 12,5 16,0 14,5
Reconciliation of
headline earnings
Attributable earnings 9 212 8 959 14 157 23 116
Amortisation of goodwill 613 610 607 1 217
Cost of investment - 1 562 - 1 562
written down
Headline earnings 9 825 11 131 14 764 25 895
Balance sheet
R'000 As at As at As at
31 Dec 31 Dec 31 Jun
2001 2001 2001
Unaudited Unaudited Audited
ASSETS
Non-current assets 44 344 48 635 44 622
Attributable earnings 9 212 8 959 14 157 23 116
Amortisation of goodwill 613 610 607 1 217
Cost of investment - 1 562 - 1 562
written down
Headline earnings 9 825 11 131 14 764 25 895
Balance sheet
R'000 As at As at As at
31 Dec 31 Dec 31 Jun
2001 2001 2001
Unaudited Unaudited Audited
ASSETS
Non-current assets 44 344 48 635 44 622
Property, plant and equipment 7 979 7 861 10 155
Intangible assets 24 459 29 198 26 785
Investments 5 306 1 082 1 082
Loans receivable 6 600 10 494 6 600
Current assets 78 747 88 620 84 738
Inventories 24 397 34 187 23 233
Trade receivables 46 554 32 501 43 373
Property, plant and equipment 7 979 7 861 10 155
Intangible assets 24 459 29 198 26 785
Investments 5 306 1 082 1 082
Loans receivable 6 600 10 494 6 600
Current assets 78 747 88 620 84 738
Inventories 24 397 34 187 23 233
Trade receivables 46 554 32 501 43 373
Term deposits 5 524 15 023 11 153
Bank balances 2 272 6 909 6 979
Total assets 123 091 137 255 129 360
EQUITY AND LIABILITIES
Capital and reserves 101 846 83 640 92 663
Issued capital 36 826 36 826 36 826
Minority interest in 36 - 65
subsidiaries
Distributable reserve 64 984 46 814 55 772
Non-current liabilities 818 4 589 2 227
Long-term liabilities 654 4 060 2 063
Deferred taxation 164 529 164
Current liabilities 20 427 49 026 34 470
Taxation 1 035 8 419 7 472
Trade payables 19 087 37 616 25 911
Current portion of long-term 305 2 991 1 087
liabilities
Total equity and liabilities 123 091 137 255 129 360
Net asset value per share 42,6 34,9 38,7
Tangible asset value per share 32,3 22,8 27,5
Statement of changes in equity
Share Distributable Total
Capital reserves
And
premium
R'000 R'000 R'000
Balance at beginning of period 36 826 55 837 92 663
Issue of share capital and - - -
share premium
Net profit for the period - 9 212 9 212
Minority interest - (29) (29)
Term deposits 5 524 15 023 11 153
Bank balances 2 272 6 909 6 979
Total assets 123 091 137 255 129 360
EQUITY AND LIABILITIES
Capital and reserves 101 846 83 640 92 663
Issued capital 36 826 36 826 36 826
Minority interest in 36 - 65
subsidiaries
Distributable reserve 64 984 46 814 55 772
Non-current liabilities 818 4 589 2 227
Long-term liabilities 654 4 060 2 063
Deferred taxation 164 529 164
Current liabilities 20 427 49 026 34 470
Taxation 1 035 8 419 7 472
Trade payables 19 087 37 616 25 911
Current portion of long-term 305 2 991 1 087
liabilities
Total equity and liabilities 123 091 137 255 129 360
Net asset value per share 42,6 34,9 38,7
Tangible asset value per share 32,3 22,8 27,5
Statement of changes in equity
Share Distributable Total
Capital reserves
And
premium
R'000 R'000 R'000
Balance at beginning of period 36 826 55 837 92 663
Issue of share capital and - - -
share premium
Net profit for the period - 9 212 9 212
Minority interest - (29) (29)
Balance at end of period 36 826 65 020 101 846
Summarised cash flow statement
Six Six Year
Months Months Ended
Ended Ended 30 Jun
30 Jun 31 Dec 2001
2001 2000
Balance at end of period 36 826 65 020 101 846
Summarised cash flow statement
Six Six Year
Months Months Ended
Ended Ended 30 Jun
30 Jun 31 Dec 2001
2001 2000
R'000 Unaudited Unaudited Audited
Cash generated by operations 3 619 46 281 49 428
Net financing income/(cost) 227 (772) (479)
Taxation paid (8 345) (2 069) (5 980)
Cash flow from operating (4 499) 43 440 42 969
activities
Cash flow from investing (3 646) (6 516) (8 190)
activities
Cash flow from financing (2 191) (589) (2 244)
activities
Net movement in cash resources (10 336) 36 335 32 535
Cash and cash equivalents at 18 132 (14 403) (14 403)
beginning of period
Cash and cash equivalents at 7 796 21 932 18 132
end of period
ACCOUNTING POLICIES
The accounting policies used in the preparation of these financial
statements are consistent with those used in the annual financial statements
for the year ended 30 June 2001 and are in accordance with the South African
Statements of GAAP.
On behalf of the Board
N H VLOK Dr LE Truter
Executive Deputy Chairman Group Managing Director
12 March 2002
Registered address
DigiCore Holdings Limited 20 Eddington Crescent, Highveld Technopark,
Centurion
Tel: (012) 665-7300
Transfer secretary
Computershare Services Limited, 2nd Floor, Edura, 41 Fox Street,
Johannesburg
R'000 Unaudited Unaudited Audited
Cash generated by operations 3 619 46 281 49 428
Net financing income/(cost) 227 (772) (479)
Taxation paid (8 345) (2 069) (5 980)
Cash flow from operating (4 499) 43 440 42 969
activities
Cash flow from investing (3 646) (6 516) (8 190)
activities
Cash flow from financing (2 191) (589) (2 244)
activities
Net movement in cash resources (10 336) 36 335 32 535
Cash and cash equivalents at 18 132 (14 403) (14 403)
beginning of period
Cash and cash equivalents at 7 796 21 932 18 132
end of period
ACCOUNTING POLICIES
The accounting policies used in the preparation of these financial
statements are consistent with those used in the annual financial statements
for the year ended 30 June 2001 and are in accordance with the South African
Statements of GAAP.
On behalf of the Board
N H VLOK Dr LE Truter
Executive Deputy Chairman Group Managing Director
12 March 2002
Registered address
DigiCore Holdings Limited 20 Eddington Crescent, Highveld Technopark,
Centurion
Tel: (012) 665-7300
Transfer secretary
Computershare Services Limited, 2nd Floor, Edura, 41 Fox Street,
Johannesburg
(PO Box 61051, Marshalltown, 2107)
Directors
BP Vundla (Chairman)*, NH Vlok (Deputy Chairman), Dr LE Truter (Managing),
SR Aberdein, FW Britz, D du Rand, BJ Richards+, KR Stanton, JJ du Plooy*, NA
Gasa*, U Khumalo* SA Msibi*, N Ntsele* **, AND Vilakazi*
*Non-executive **Alternate +British
Company secretary: FW Britz
(PO Box 61051, Marshalltown, 2107)
Directors
BP Vundla (Chairman)*, NH Vlok (Deputy Chairman), Dr LE Truter (Managing),
SR Aberdein, FW Britz, D du Rand, BJ Richards+, KR Stanton, JJ du Plooy*, NA
Gasa*, U Khumalo* SA Msibi*, N Ntsele* **, AND Vilakazi*
*Non-executive **Alternate +British
Company secretary: FW Britz
Please visit our website: www.digicore.com
C track
Co-Driver
Beka-Max
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