| Thu 4 Apr 2002, 0:00 | | Zeltis - Interim Financial Results |
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ZELTIS HOLDINGS LIMITED
JSE Share code: ZLT ISIN: ZAE000015939
(Registration number 1905/021141/06)
("Zeltis" or "the company")
INTERIM FINANCIAL RESULTS
for the six months ended 31 December 2001
Abridged Income Statement
Six months Six months 12 months
to to to
31 December 31 December 30 June
2001 2000 2001
Unaudited Unaudited Audited
R000's R000's R000's
Gross revenue 5 734 5 299 11 975
Operating costs (4 912) (7 460) (12 558)
Write-down of investments - (203) (16 038)
Bad debts provision - - (5 379)
Operating (loss)/profit on ordinary
activities before investment income 822 (2 364) (22 000)
Investment income 173 473 814
(Loss)/profit before finance costs 995 (1 891) (21 186)
Finance costs (1 302) (1 340) (3 150)
Operating loss on ordinary
activities before taxation (307) (3 231) (24 336)
Taxation - - -
Net loss of the group for the period (307) (3 231) (24 336)
Statistics:
Shares in issue
(weighted average) 148 698 692 148 698 692 148 698 692
Net asset value
per share (cents) 4,5 19,0 4,5
Headline loss
per share (cents) (0,1) (2,0) (5,5)
Loss per share (cents) (0,2) (2,2) (16,4)
Reconciliation of headline earnings
Net loss per income statement (307) (3 231) (24 336)
Profit on sale of investments - - (1 143)
Investment write-downs - 203 16 038
Goodwill amortisation 201 110 1 296
Loss on sale of tangible assets - - 10
Headline loss (106) (2 918) (8 135)
Statement of Movements in Equity
Preference
Share Share share Distributable
R000's capital premium capital reserves Total
Balance at
30 June 2001 1 487 109 743 39 (104 293) 6 976
Loss per the
income statement - - - (307) (307)
Balance at
31 December 2001 1 487 109 743 39 (104 600) 6 669
Abridged Balance Sheet
31 December 31 December 30 June
2001 2000 2001
Unaudited Unaudited Audited
R000's R000's R000's
ASSETS
Non-current assets
Tangible assets 2 355 2 126 2 470
Intangible assets 11 324 11 114 11 663
Associates 889 6 263 886
Investments 15 292 27 495 14 851
29 860 46 998 29 870
Current assets
Accounts receivable 12 143 16 372 17 335
Cash and cash equivalents 9 182 438 2 999
Total current assets 21 325 16 810 20 334
Total assets 51 185 63 808 50 204
EQUITY AND LIABILITIES
Share capital and premium 111 230 111 230 111 230
Distributable reserves (104 600) (83 080) (104 293)
Ordinary shareholders' interest 6 630 28 150 6 937
Preference share capital 39 39 39
6 669 28 189 6 976
Non-current liabilities
Long-term liabilities 18 558 17 464 16 698
Total non-current liabilities 18 558 17 464 16 698
Current liabilities
Short-term loans - 393 -
Accounts payable 22 094 13 802 22 685
Bank overdraft 2 146 2 383 1 879
Current portion of long-term debt 310 170 558
Taxation 1 408 1 407 1 408
Total current liabilities 25 958 18 155 26 530
Total equity and liabilities 51 185 63 808 50 204
Cash Flow Statement
for the six months ended 31 December 2001
Cash flow from operating activities 4 410 (2 688) (15 493)
Cash flow from investing activities (105) (1 857) 14 793
Cash flow from financing activities 1 611 3 610 2 830
Net change in cash and cash equivalents 5 916 (935) 2 130
Change in cash and cash equivalents
at 1 July 2001 1 120 (1 010) (1 010)
Cash and cash equivalents at
end of period 7 036 (1 945) 1 120
Interim review of operations
During the six months ended 31 December 2001, the company completed a
circular to ordinary shareholders incorporating:
a) a detailed report to shareholders advising them of the developments in
Zeltis;
b) details of a related party transaction (the Good Cape Limited
transaction);
c) the acquisition of the remaining 25% in Operating Personnel Under
Supervision (Pty) Ltd (Opus);
d) the disposal of various other operations;
e) consolidation of the authorised and issued share capital on a one-for-
five basis; and
f) the surrender of existing share certification incorporating procedures
under the conditions pertaining to Share Transactions Totally Electronic
(STRATE).
This circular was dispatched to shareholders on 24 December 2001 and
incorporated a Notice of General Meeting to be held on 29 January 2002
together with a normal form of proxy and a form of surrender.
At the General Meeting of shareholders, the four ordinary resolutions and
one special resolution were carried by an 83,7% majority in each vote of
shareholders present in person or by proxy.
At the reconvened Annual General Meeting held on 20 March 2002, the
annual financial statements for the year ended 30 June 2001 as amended, were
adopted by a majority of 76%.
A second circular was dispatched to shareholders on 4 March 2002,
incorporating the terms and conditions of a "claw-back rights offer" to
shareholders, the results of which are reported on separately. A total of
R7,845 million has been raised partly through the conversion of debt and the
raising of new capital amounting to R2,103 million.
Important impacts of:
a) the Good Cape Limited transaction (i.e. the related party transaction);
and
b) the "claw-back rights issue",
include a meaningful saving of interest payable (in excess of R1 million
per annum and more as interest rates rise) and the fact that de facto
control of the company has passed into the hands of a limited number of
shareholders.
Prospects
As can be seen from the abridged income statement above, the company
recorded a profit of R995 000 before finance costs, representing a
significant positive turnaround, as compared with the six months ended 31
December 2000. That position should be augmented by the results of the
meetings and the resultant share issues mentioned in the initial paragraphs
of this statement, during the second six months of the current financial
year to 30 June 2002.
Management have continued to negotiate the disposal of other assets and
have encouraged the development of the core activities of the company. The
core activities include:
a) Denverdraft Agency (Pty) Ltd, our successful "white collar" and "blue
collar" labour recruiter;
b) our technology investment via Lexshell 311 Investments (Pty) Ltd, which
markets a sophisticated call centre and also the most marketable hand-held
"real time" stock and share price monitor available in the world today.
The interim results have been prepared in accordance with Statements of
Generally Accepted Accounting Practice, there have been no changes effected
to any accounting policies and the methods of computation applied are
consistent in all respects with those in the annual financial statements for
the year ended 30 June 2001.
On behalf of the board
D X Hellmann R N McLeod
Chairman Managing Director
4 April 2002
Johannesburg
Sponsor: The Janus Corporation (Pty) Ltd
