| Fri 22 Mar 2002, 0:00 | | Cci Holdings Limited - Audited Results |
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CCI HOLDINGS LIMITED
(Formerly known as Y2KTec Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1999/002149/06)
JSE CODE : CCG
ISIN Code : ZAE000018420
("CCG" or "the company")
AUDITED RESULTS FOR THE TEN MONTHS ENDED 31 DECEMBER 2001
Consolidated Income Statements Ten months ended 31 Year ended 28 Feb
Dec 2001 2001
R R
Revenue 7,822,579 2,426,633
Operating Profit/(loss) 2,248,892 (1,883,268)
Net finance costs (235,473) (75,636)
Exceptional loss (7,839,729) (14,111,156)
Profit/(Loss) before taxation (5,826,310) (16,070,060)
Taxation - -
Attributable loss (5,826,310) (16,070,060)
Statistics
Number of shares in issue
(000's)
- end of period 292,487 67,487
- weighted average 202,487 67,487
Headline earnings / (loss) per 1.05 (2.90)
share (cents)
Loss per share (cents) (2.88) (23.81)
Reconciliation of headline
earnings
Attributable income / (loss) (5,826,310) (16,070,060)
Amortisation of goodwill 108,140 -
Provision for irrecoverability - 2,475,000
of loan
Goodwill written off 7,839,729 11,636,156
Headline earnings / (loss) 2,121,559 (1,958,904)
Consolidated Balance Sheets
31 December 28 February
2001 2001
R R
Assets
Non Current Assets 2,884,579 313,055
Furniture, equipment and 1,875,607 313,055
vehicles
Long term loan receivable 1,008,972 -
Current Assets 5,078,485 393,856
Inventories 390,128 19,525
Accounts receivable 3,155,848 140,784
Prepaid expenses 293,421 -
Cash and cash equivalents 1,239,088 233,547
Total Assets 7,963,064 706,911
Equity & Liabilities
Shareholders deficit (3,161,941) (1,835,631)
Share capital and premium 22,079,205 17,579,205
Accumulated loss (25,241,146) (19,414,836)
Non current liabilities 3,777,004 617,601
Interest bearing 3,714,004 483,101
Non-interest bearing 63,000 134,500
Current liabilities 7,348,001 1,924,941
Accounts Payable 3,513,392 1,674,756
Bank overdraft 1,542,109 -
Provisions 106,754 -
Short term of non-current 2,185,746 250,185
liabilities
Total equity and liabilities 7,963,064 706,911
Ten months ended 31 Year ended 28 Feb
Dec 2001 2001
R R
Cash flows from operating 754,895 (55,261)
activities
Cash flows from investing (5,377,455) -
activities
Cash flows from financing 4,085,992 107,722
activities
(Decrease)/increase in cash (536, 568) 52 461
and cash equivalents
Cash and cash equivalents at 233,547 181,086
beginning of period
Cash and cash equivalents at (303,021) 233,547
end of period
Consolidated Statements Of Changes in equity
for the period ended 31 December 2001
Share Share Accumulated Total
Capital premium loss
R R R R
Balance at March 6,750 17,572,455 (3,344,776) 14,234,429
2000
Net profit/(loss) - - (16,070,060)
for the period (16,070,060)
Balance at 28 6,750 17,572,455 (19,414,836) (1,835,631)
February 2001
Issue of ordinary 22,500 4,477,500 - 4,500,000
shares
Net profit/(loss) - - (5,826,310) (5,826,310)
for the period
Balance at 31 29,250 22,049,955 (25,241,146) (3,161,941)
December 2001
COMMENTS
Overview
The CCIH group (formerly Y2Ktec) underwent a reverse listing effective 1
July 2001 through the acquisition of Coetser Craddock International. This
resulted in the existing business showing an excellent turn-around and the
group expanding it's offering of integrated business services. A further
addition to the group was the acquisition of Regal Employment Benefits in
the year. The results for the ten months to December 2001 are in line with
the board's expectation.
Operating loss
The group's loss is attributable to all goodwill on the balance sheet being
written off. The board has taken this decision from a prudence point of
view. Headline earnings however reflects trading results of R2.1 million
before goodwill write-offs. This has provided shareholders with a drastic
improvement on the prior year regards headline earnings per share. No other
unusual items are included in the income statements.
Non-current liabilities
This represents finance leases over fixed assets and a loan from one of the
shareholders, brought into the group with the acquisition of Coetser
Craddock International.
Share Incentive Trust
The previous share incentive trust has been replaced with the CCI Holdings
Share Incentive Trust. The trust is administered independently and has not
been consolidated into the group's results. The trust is to issue shares to
employees based on past contribution and has offered additional share
options to key employees, which will be taken up in the new financial year.
Prospects
The directors are confident that the group will continue to produce solid
results and are looking forward to presenting the next set of results which
will also represent a full year of trading. The group is excellently
positioned to expand its integrated business services through the current
client base, to new clients and acquired businesses. The group is currently
developing systems to achieve full integration and will continue to enhance
the client relationship management programme (CRM). The group has already
obtained significant new business through this within the first three months
of 2002.
Accounting policies
The consolidated condensed financial statements for the ten months ended 31
December 2001 are prepared in accordance with South African statements of
Generally Accepted Accounting Practice . The accounting policies of the
group are consistent with those of the previous year.
Audit opinion
The consolidated financial statements for the ten months ended 31 December
2001 have been audited by KPMG Incorporated. Without qualifying, emphasis
has been placed on the fact that although the group showed a trading profit
of R2.1 million for the period, the group has an accumulated loss of R25.2
million.
Directors
Messrs D Black, GS Mahlati, N Solomons and A Solomons resigned as directors
in the year by 30 July 2001, and Messrs GA Coetser, MK Hill, AJ de Beer and
JG Booysen appointed on 1 August 2001.
Dividend
No dividend has been declared. The group's policy on dividends is however
reviewed on annual basis.
For and behalf of the Board
GA Coetser
Chairman
MikeHill
Chief Executive Officer
20 March 2002
Northcliff
Registered address: 34 Mankor Drive Randpark Ridge Randburg
Directors: GA Coetser, (Chairman) MK Hill (CEO), AJ de Beer (CFO), JG
Booysen, VS Collins, MC Purves (Non-executive)
Group Secretary: SEA Simpson
Sponsor: The Janus Corporation (Pty) Limited
