| Tue 19 Mar 2002, 0:00 | | Aps - Audited Results For The Year Ended 31 Decemb |
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APS TECHNOLOGIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/024100/06)
("APS" or "the Group")
Short name: APS-TECH; Share code: APE;
ISIN number: ZAE 0000 17927
CONSOLIDATED INCOME STATEMENTS
for the year ended 31 December
2001 2000
R'000 R'000
Revenue 12 580 34 724
Operating (loss)/profit
before depreciation (15 680) 1 869
Depreciation (652) (588)
Amortisation of intangibles and
deferred expenditure (2 231) (538)
Net operating (loss)/profit (18 563) 743
Net interest (paid)/received (134) 323
(Loss)/profit before taxation (18 697) 1 066
Taxation (165) (510)
Attributable (loss)/income (18 862) 556
Statistics
Number of ordinary shares
in issue (000s)
- end of period 116 287 125 824
- weighted average 116 287 125 824
Headline (loss)/earnings per
share (cents) (13,39) 1,37
(Loss)/earnings per share (cents) (16,22) 0,44
Reconcilliation of headline earnings
Attributable (loss)/income (18 862) 556
Amortisation of intangibles and
deferred expenditure 2 231 538
Cost of investment written down 560 -
Restructuring costs 505 628
Headline (loss)/earnings (15 566) 1 722
CONSOLIDATED BALANCE SHEETS
as at 31 December
2001 2000
R'000 R'000
ASSETS
Non-current assets 5 690 7 990
Property, plant and equipment 1 623 2 335
Intangibles and deferred expenditure 4 067 5 474
Investments - -
Deferred tax asset - 181
Current assets 3 958 20 311
Inventories 3 027 6 527
Accounts receivable 736 8 564
Cash and cash equivalents 145 5 220
Receiver of revenue 50 -
Total assets 9 648 28 301
EQUITY AND LIABILITIES
Capital and reserves
Ordinary shareholders' interest 3 938 23 743
Share capital and premium 10 042 11 223
Non-distributable reserves 577 424
Accumulated (loss)/profit (6 681) 12 096
Non-current liabilities 581 33
Long-term liabilities 581 21
Deferred taxation - 12
Current liabilities 5 129 4 525
Bank overdraft 2 800 -
Accounts payable 2 318 4 277
Short-term portion of long-term liability 11 49
Receiver of revenue - 199
Total equity and liabilities 9 648 28 301
Net asset value per share (cents) 3,39 18,87
Total number of ordinary shares
issued ('000) 116 287 125 824
CONSOLIDATED cash flow statements
for the year ended 31December
2001 2000
R'000 R'000
Cash flow from operating activities (7 505) (904)
Cash flow from investing activities (895) (974)
Cash flow from financing activities 525 (116)
Net decrease in cash (7 875) (1 994)
Cash at beginning of year 5 220 7 214
Cash at end of year (2 655) 5 220
CONSOLIDATED statement of changes in equity
for the year ended 31 December 2001
Accumu-
Trans lated
Share Share lation- profit/
capital premium reserve (loss) Total
R'000 R'000 R'000 R'000 R'000
Balance at
1 January 2001 126 11 097 424 12 096 23 743
Transfers and
adjustments - - - 85 85
Net loss for
the period - - - (18 862) (18 862)
Shares acquired
by share
purchase trust (10) (1 171) - - (1 181)
Currency
translation
differences - - 153 - 153
Balance at
31 December 2001 116 9 926 577 (6 681) 3 938
COMMENTS
Overview
The 2001 financial year was a challenging one for the APS Group.The overall
performance of the Group was adversely affected by the drastic fall in
sales, both local and overseas, due to the bad publicity the Group received
in the early part of 2001.This had a severe effect on turnover, income,
morale of staff and the confidence of the public regarding the products of
the Group.
Operating loss
The following items, due to their size and unusual nature, have been charged
to the operating loss for the year:
Amortisation
An additional amount of R1 555 439 for amortisation of intangibles and
deferred expenditure has been charged during 2001 as a result of the change
in estimate from 10 years to 5 years of the expected life of the
intangibles.
Bad debts
Owing to the bad publicity that the company received in the early part of
the year, certain debtors have been written off. The amount applicable is R5
511 569 which was included under Accounts Receivable at 31 December 2000 and
relates mainly to overseas distributors reneging on their payments.
Impairment of investment
An amount of R560 069 has been provided for the impairment of the investment
in our Belgian operation at 31 December 2001.
Inventory
At 31 December 2001, R2 748 530 inventory was written down and a provision
of R472 814 was made for slow-moving stock.
Restructuring costs
Restructuring costs of R504 704 were incurred during 2001.
Intangibles and deferred expenditure
An amount of R756 480 has been capitalised to the cost of the NeuroStim
patent which was acquired in September 1999 as a result of an external
agreement between certain persons of previous management and the vendors of
NeuroStim. During the reorganisational process of the Group it was
considered prudent to reflect the true cost of the acquired patent. The
estimated life of this patent has also been revised from 10 years to 5
years.
Long-term liabilities
The long-term liabilities are loans from the current executive directors and
messrs Adriaanse, Hansen, Kleingeld and Viviers. These loans have been
secured by a first right over the patents, trademarks and trade debtors of
the Group.
Share purchase trust
The share purchase trust has been consolidated within the Group at 31
December 2001. At 30 June 2001 the intention was to reduce the share capital
and premium with the settlement amount of
R962 162 reached with the previous chief executive officer, Mr Dudley
Wooldridge. This has now been transacted through the share purchase trust in
order for the trust to hold more shares for issue to staff and management.
To date the trust has not yet issued any shares to staff or management.
Bank overdraft
The negative press reports of earlier in 2001 and the subsequent adverse
trading conditions resulted in the Group making use of an overdraft
facility.This has been secured by a notarial bond over the fixed property.
Subsequent to year-end the overdraft has been converted into a long-term
loan repayable over a period of eight years, secured by the fixed
properties.
Prospects
While the market remains tough, the directors are confident that the changes
effected to reduce overheads will result in producing improved results for
2002. We expect to return to profitability in 2002 and to build the group
from a small, but effective, base in order to once again create shareholder
value by also concentrating on the international markets. For the first two
months of 2002 overseas sales and confirmed orders total R3 million compared
to R1,3 million for the twelve months of 2001.
Accounting policies
The consolidated condensed financial statements for the year ended 31
December 2001 are prepared in accordance with and comply with South African
Statements of Generally Accepted Accounting Practice. The accounting
policies of the Group are consistent in all material respects with those
applied in the annual financial statements for the year ended 31 December
2000.
Audit opinion
The consolidated financial statements for the year ended 31 December 2001
have been audited by PricewaterhouseCoopers and they have qualified the
results as they are of the opinion and are unable to satisfy themselves as
to the appropriateness of applying the going concern basis due to the
inability of the Group to generate adequate cash flow from operating and
investment activities in the foreseeable future to finance its operations
and to repay its debts.
Directors
Messrs J Adriaanse and CJ Kleingeld resigned on 7 January 2002. Mr C Pelly
and Dr UL Schmidt were appointed as non-executive directors on the same
date.
Dividend
In line with the previous year, no dividend has been declared.
For and on behalf of the Board
A de Beer N Wessels 19 March 2002
Chairman Chief executive officer Pretoria
Transfer secretaries
Computershare Services Limited (Registration number 1958/003546/06)
First Floor, Edura House, 41 Fox Street, Johannesburg 2001 (POBox 61051,
Marshalltown 2107)
Registered office
54 De Havilland Crescent, Persequor Park, Pretoria 0002 (PO Box 199,
Persequor Park 0002)
Directors: A de Beer (Chairman), N Wessels (Chief executive officer), PJ
McDonald (Financial). C Pelly*, Dr UL Schmidt* (*Non-executive)
Group secretary: PJ McDonald CA(SA)
Internet address: http://www.apstherapy.com
