| Thu 28 Mar 2002, 0:00 | | Command - Financial Results For The Six Months End |
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Command Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1999/014759/06)
JSE Share code: CMA ISIN: ZAE000023131
("Command")
Financial results
for the six months ended 31 December 2001
Group consolidated income statements
Reviewed Reviewed Audited
Six months Six months Year
ended ended ended
31 Dec 2001 30 Jun 2001 31 Dec 2000
R'000 R'000 R'000
Revenue 40 640 51 041 119 057
Costs incurred in producing revenue (30 192) (36 289) (92 300)
Depreciation (636) (579) (1 597)
Selling and administrative expenses (15 455) (16 564) (30 941)
Sundry income 72 73 185
Operating loss before borrowing costs (5 571) (2 318) (5 596)
Borrowing costs net of interest income (563) (1 387) (1 422)
Attributable loss (6 134) (3 705) (7 018)
Amortisation of intangibles (116) (351) (2 658)
Other net non-operating (expenses)
income (1 083) 26 (3 487)
Net loss before taxation (7 333) (4 030) (13 163)
Taxation 517 74 540
Net loss for the period (6 816) (3 956) (12 623)
Outside shareholders' share of
loss/(income) 1 994 (168) 41
Share of associated company losses (117) (53) (19)
Ordinary shareholders' net loss (4 939) (4 177) (12 601)
Total number of shares in issue
and allotted ('000) 101 848 101 848 101 848
Weighted number of shares
in issue ('000) 101 848 101 848 101 380
Fully diluted number of shares
in issue ('000) 101 848 101 848 101 848
Loss per share (cents) (4,85) (4,10) (12,43)
Headline loss per share (cents) (4,14) (4,26) (8,40)
Fully diluted loss per share (cents) (4,85) (4,10) (12,37)
group consolidated Cash Flow Statements
Reviewed Reviewed Audited
Six months Six months Year
ended ended ended
31 Dec 2001 30 Jun 2001 31 Dec 2000
R'000 R'000 R'000
Cash flows from operating activities 2 671 617 1 449
Cash utilised to service and
repay borrowings 293 (2 312) (2 024)
Cash flows from investing activities (778) 1 213 (4 947)
Cash exchanges with shareholders - - 795
Net movement in cash resources 2 186 (482) (4 727)
Cash resources at beginning of period (5 209) (4 727) -
Cash resources at end of period (3 023) (5 209) (4 727)
NOTES:
1. Operating lease commitments
The group has operating lease commitments over and above the liabilities
disclosed in the balance sheet in the amount of R7 200 000 (31 December 2000
- R3 054 000).
2. Capital expenditure and commitments
Capital expenditure for the period amounted to R1 736 000 (31 December 2000
- R3 598 000).
The group had no capital expenditure commitments at period-end (31 December
2000 - nil).
3. Contingent liabilities
The group has various contingent liabilities arising from rental operations
and installation warranties at Aludie Limited totalling approximately R16
000 000.
4. Change of year end
The interim results of the group are presented for the six-months period
ended 31 December 2001, as the group has changed its financial year end to
31 March 2002.
5. Generally Accepted Accounting Practice
The six months financial statements comply with South African Statements of
Generally Accepted Accounting Practice and the accounting policies used are
consistent in all material respects with those used for the December 2000
financial statements.
6. Review
The financial information set out in this report has been reviewed, but not
audited, by Deloitte & Touche whose review report is available to members
for inspection at the company's registered office.
Their review report includes the following wording:
"Going concern
Without qualifying our report, we draw attention to the fact that the group
incurred substantial losses for the six months ended 31 December 2001 and,
as of that date, the group's total liabilities exceeded its total assets.
These conditions indicate the existence of a material uncertainty which may
cast significant doubt about the group's ability to continue as a going
concern."
Group consolidated balance sheets
Reviewed Reviewed Audited
31 Dec 2001 30 Jun 2001 31 Dec 2000
R'000 R'000 R'000
Assets
Non-current assets
Tangible assets 4 102 3 436 5 614
Intangible assets 4 693 5 290 5 483
Deferred taxation 1 484 873 768
Rental debtors and loans 2 207 1 614 1 182
Total non-current assets 12 486 11 213 13 047
Current assets
Inventories 1 872 1 873 2 370
Work in progress 2 518 753 2 423
Accounts receivable 11 094 16 666 15 814
Bank balances and cash 58 640 1 408
Total current assets 15 542 19 932 22 015
Total assets 28 028 31 145 35 062
Equity and liabilities
Capital and reserves
Share capital 1 1 1
Share premium 7 953 7 953 7 953
Accumulated loss (21 717) (16 778) (12 601)
Outside shareholders' interests - 1 994 1 826
Total capital and reserves (13 763) (6 830) (2 821)
Non-current liabilities
Interest free deferred liabilities 953 1 609 603
Income received in advance 192 442 498
Long-term borrowings 2 173 1 867 2 579
Total non-current liabilities 3 318 3 918 3 680
Current liabilities
Short-term borrowings 1 529 1 098 2 117
Accounts payable 30 506 23 034 21 425
Taxation 693 560 366
Bank overdrafts 3 082 5 849 6 135
Total current liabilities 35 810 30 541 30 043
Provisions 2 663 3 516 4 160
Total equity and liabilities 28 028 31 145 35 062
Net liability per share (cents) (13,51) (8,66) (4,56)
Group consolidated
Statements of changes in equity
Share capital and Accumulated
share premium loss Total
R'000 R'000 R'000
Balance at 31 December 2000 (Audited) 7 954 (12 601) (4 647)
Ordinary shareholders' net loss - (4 177) (4 177)
Balance at 30 June 2001 (Reviewed) 7 954 (16 778) (8 824)
Ordinary shareholders' net loss - (4 939) (4 939)
Balance at 31 December 2001 (Reviewed) 7 954 (21 535) (13 581)
Group segmental review
for the six months ended 31 December 2001
Electronic Parking
Guarding security management
services services services
("Command") ("Aludie") ("Aludie")
% % %
Financial information
Revenue 54,6 42,1 3,3
Headline earnings (104,9) 2,9 2,0
Earnings (101,2) (0,2) 1,4
Intangible assets 48,1 35,1 16,8
Tangible assets 36,2 63,2 0,6
Liabilities 60,6 35,3 4,1
Depreciation 68,7 30,3 1,0
Headline loss per share (cents)
Loss per share is reconcilled to
headline loss per share as follows:
Loss per share (4,85)
Exceptional expenses and losses (0,24)
Exceptional income and gains 1,11
Taxation in respect of
exceptional items (0,10)
Outside shareholders' share (0,06)
Headline loss per share (4,14)
GENERAL REVIEW
Nature of business
The Group trades through its wholly-owned subsidiary Command Security
Services (Pty) Ltd which offers guarding and cash-in-transit services and
its 47,7% owned subsidiary Aludie Limited which trades in the electronic
security and parking management industries. The latter subsidiary has now
extended its operations to include toll road systems.
Results
As reported in the annual financial statements issued in August 2001, the
group has continued to sustain losses which arise from factors referred to
in the report published on 3 August 2001.
The group has restructured operations and management overhead structures,
the benefits of which are expected to flow into the results to be reported
at the end of the next financial year.
Prospects
The Board has continued to take steps to restore to profitability, and the
Board is satisfied that the Group will continue as a going concern for the
forseeable future. The steps taken include rationalisation of operations and
personnel, the benefits of which are expected to materialise in the next 12
months and support received from a black economic empowerment group in the
form of security provided to the Group's bankers to secure additional
banking facilities.
Directors
Messrs Z. J. Sithole (Non-executive chairman),
J. Imerman (Executive deputy chairman), and
H. J. Bruyn (Chief executive officer) continued to serve as directors
during the period under review.
Messrs J. Tsotsetsi (appointed 9/2000), T. E. Nxumalo (appointed 9/2000)
and M. W. Reynolds (appointed 12/2000) resigned in September 2001.
Mr S. Imerman (appointed 10/1999) resigned in January 2002.
Prof M. I. Parker and Mr K. G. Druker were appointed
non-executive directors in September 2001.
Ms K. Biesheuvel was appointed financial director in January 2002.
By order of the Board
Z. J. Sithole H. J. Bruyn
Chairman Chief Executive Officer
Cape Town
27 March 2002
Transfer secretaries Registered office
Mercantile Registrars Limited Building 2, De Tijger Park
11 Diagonal Street Cnr McIntyre & Hannes Louw Streets
Johannesburg Parow
2001 7500
