| Wed 20 Mar 2002, 0:00 | | Spicer Holdings Limited - Interim Results |
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Spicer Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1984/005392/06)
("the company")
SUMMARISED GROUP INCOME STATEMENT
Unaudited Unaudited Audited
Dec-01 Dec-00 Jun-01
6 months 6 Months 12 months
R000 R000 R000
Revenue 18,197 43,432 90,102
Continued 18,197 24,565 51,911
operations
Discontinued - 18,867 38,191
operations
Operating -2,569 2,528 2,928
profit/(loss)
Continued -2,569 3,309 3,396
operations
Discontinued - -781 -468
operations
Depreciation -76 -1,042 -2,091
Finance -2,479 -15 -35
income/(costs)
Amortisation of -11,316 -964 -7,928
goodwill
Exceptional items 2,637 -369 -4,210
Income/(loss) -13,803 138 -11,336
before taxation
Taxation 280 -718 -610
Loss after -13,523 -580 -11,946
taxation
Attributable to 105 -114 -
outside
shareholders
Loss for the -13,418 -694 -11,946
period
Headline -1.2 0.1 0.1
earnings/(loss)
per share (cents)
Headline
earnings/(loss)
per share on
continued -1.2 0.5 0.6
operations (cents)
Fully diluted -1.1 0.1 -4.0
headline
earnings/(loss)
per share (cents)
Attributable -3.3 -0.2 -2.9
earnings per share
(cents)
Number of shares
(000)
- in issue 409,519 409,519 409,519
- weighted 409,519 409,519 409,519
average
- fully diluted 426,419 426,419 426,419
Reconciliation of
headline earnings
Loss for the -13,418 -694 -11,946
period
Amortisation of 11,316 964 7,928
goodwill
Exceptional items -2,637 11 4,210
Headline earnings -4,739 281 192
Continued -4,739 1,953 2,602
operations
Discontinued - -1,672 -2,410
operations
Exceptional items
Profit on sale of 3,042 500 995
subsidiary and
investments
Establishment and - -869 -3,209
restructuring
costs
Provision on loan -405 -1,996
to share trust
Before taxation 2,637 -369 -4,210
Taxation effect - 358 -
After taxation 2,637 -11 -4,210
These results are based on the same accounting policies as applied in the
previous year ended 30 June 2001, in accordance with statements of Generally
Accepted Accounting Principles.
SUMMARISED GROUP BALANCE SHEET
Unaudited Unaudited Audited
2001 2000 2001
31 31 30-Jun-01
December December
R000 R000 R000
ASSETS
Non-current 378 25,496 14,231
assets
Fixed assets 378 4,151 2,511
Goodwill - 18,309 11,316
Investments and - 2,400 404
loans
Deferred tax - 636 -
asset
Current assets 41,830 51,990 48,066
Inventory - 1,736 1,995
Accounts 10,968 22,674 19,494
receivable
Bank and cash 30,862 27,580 26,577
balances
Total assets 42,208 77,486 62,297
EQUITY AND LIABILITIES
Capital and 9,227 26,996 14,719
reserves
Outside 423 509 374
shareholder's
interest
Non-current 1,951 1,188 1,295
liabilities
Deferred taxation 1,951 1,188 1,295
Current 30,607 48,793 45,909
liabilities
Interest bearing 24,920 21,435 21,707
Revenue in -
advance
Other 5,687 27,358 24,202
Total equities 42,208 77,486 62,297
and liabilities
Net asset value 2.3 6.5 3.6
per ordinary
share (cents)
Lease
commitments
Operating 2,025 20,183 16,893
leases
STATEMENT OF CHANGES IN EQUITY
Unaudited Unaudited Audited
31-Dec-01 31-Dec-00 30/06/2001
6 months 6 months 12 months
R000 R000 R000
Balance at 14,719 25,047 25,047
beginning of
period
Share capital and - 2,643 2,643
share premium
Issue of share - 2,643 2,643
capital and share
premium
Goodwill arising - - -
on the
acquisition of
subsidiaries
Movements in -5,493 -694 -12,971
reserves
Net loss for the -13,418 -694 -11,946
period
(Distributable
reserve)
Forex translation 7,925 - -1,025
profit(loss) on
investment (Non-
Distributable
Reserve)
Balance at end of 9,226 26,996 14,719
period
SUMMARISED CASH FLOW STATEMENT
Unaudited Unaudited
2001 2000
31 December 31 December
6 months 6 months
R000 R000
Cash outflow from operating -1,443 -12,490
activities
Cash utilised in operations 2,588 -12,295
Net finance costs -2,478 -15
Taxation paid -1,553 -180
Cash inflow from investing 810 66,013
activities
Acquisition of subsidiaries - -3,415
Expenditure for expansion - -
Proceeds on disposal of 810 70,000
investments
Additions to fixed assets - -572
Cash outflow from financing - -36,067
activities
COMMENTARY
The results for the six month period to December 2001 represents the trading
activities of Inter IT-Konsult (Inter), based in Sweden, as well as the
investment activities of Spicer Holdings Limited.
Revenue for the period was R18, 2 million (2000: R24, 6 million) and the
headline loss were R4, 7 million (2000: profit of R 1,9 million). The lower
performance is the direct result of a serious slowdown in the IT industry in
Sweden as referred to in Spicer's previous announcement of results. The cost
structure of Inter was reduced to enable the company to break even as soon
as possible. Trading conditions remain difficult. As a result of the lower
performance and the uncertain future, the total goodwill to the amount of
R11, 3 million was written off.
At 31 December 2001, a conversion profit of R7,9 million arose on the
investment in Inter as a result of the weakening Rand. At the date of issue
of this announcement, the exchange rate between the Rand and the Swedish
Krone has not changed materially comparing with 31 December 2001. The profit
of R7,9 million was credited directly to a non-distributable reserve. A
profit of R3 million resulting from the disposal of MIS Group Holdings, is
reflected as an exceptional item in the Income Statement.
During Dec 2001, Spicer announced that the group's financiers were unwilling
to continue with their financial support, and the trading of the company's
shares on the JSE were suspended. Subsequent to 31 December 2001, the
groups' financiers transferred an amount of R18 million which served as part
security for an offshore liability of GBP1, 8 million, to be utilised as
part payment for the offshore debt.
Details were supplied to shareholders in the latest annual report dated 20
November 2001 regarding legal proceedings. No major changes have taken place
subsequently.
The financial statements have been prepared on a going concern basis.
However in the absence of such financial support, as referred to above, the
company would be unable to continue its business and adjustments would have
to be made to reduce the value of assets to their recoverable amount, to
provide for any further liabilities which might arise and to reclassify
fixed assets and long-term liabilities as current assets and liabilities.
Various discussions and negotiations are in progress as to the future of
Spicer. Shareholders will be informed once more information is available.
No dividends were declared for the period under review.
On behalf of the board
Coert Vorster
Acting Chairman
20 March 2002
