| Thu 11 Apr 2002, 0:00 | | Ist Group - Audited Results For The Year Ended 28 |
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2002
Headline earnings per share (fully diluted) increased by 80%
Cash generated from operations increased by 124%
Dividend up from 3 cents to 6.2 cents
CONSOLIDATED INCOME STATEMENT
YEAR ENDED YEAR ENDED
28 FEBRUARY % 28 FEBRUARY
R000 2002 CHANGE 2001
Turnover 279 257 222 564
- from continuing
operations 276 854 31% 211 162
- from discontinued
operations 2 403 11 402
Operating Profit 23 432 16 997
- from continuing
operations 34 123 52% 22 487
- from discontinued
operations (10 691) (5 490)
Retrenchments and
restructuring costs - (3 261)
Capital loss on
sale of discontinued
operation - (214)
Interest 9 046 2 990
Profit from Associates 350 391
Profit before Taxation 32 828 95% 16 903
Taxation (9 621) (6 193)
Profit after Taxation 23 207 117% 10 710
Minority Interest (1 753) (260)
Net Profit 21 454 105% 10 450
Calculation of Headline
Earnings
Profit attributable
to shareholders 21 454 10 450
Capital loss on sale
of discontinued
operation - 214
Amortisation of Goodwill 60 41
Headline Earnings 21 514 10 705
Weighted average number
of issued shares (000) 126 286 131 317
Weighted average
number of diluted
shares (000) 151 545 135 472
Headline Earnings
per share (cents)
- Basic 17.0 107% 8.2
- Fully Diluted 14.2 80% 7.9
Basic Earnings per
share (cents)
- Basic 17.0 63% 10.4
- Fully Diluted 14.2 41% 10.1
Dividend per ordinary
share (cents) 6.2 3.0
Net Asset Value per share
(cents) 90.0 72.8
Tangible Net Asset Value
per share (cents) 88.9 70.5
CONSOLIDATED BALANCE SHEET
At At
28 FEBRUARY 28 FEBRUARY
R000 2002 2001
ASSETS
Non-Current Assets 44 327 45 972
Property, Plant and
Equipment 34 369 32 769
Intangible Assets 1 366 3 129
Investment in Associate - 3 878
Non Current Receivables 8 592 6 196
Current Assets 133 284 104 437
Inventories 29 027 26 317
Trade and other receivables 50 406 50 123
Cash and Cash Equivalents 53 851 27 997
Total Assets 177 611 150 409
EQUITY AND LIABILITIES
Shareholders' Interest 108 395 97 432
Share Capital 1 181 1 313
Share Premium 73 598 84 299
Non Distributable Reserves - 499
Distributable Reserve
- Retained Income 33 616 11 321
Minority Interest 2 098 345
Non-Current Liabilities 6 066 6 641
Interest bearing borrowings 3 394 3 641
Deferred tax liabilities 2 672 3 000
Current Liabilities 61 052 45 991
Trade and other payables 43 443 31 688
Advance Payments 7 947 4 164
Provision for liabilities 1 841 1 557
Current tax liabilities 4 878 1 740
Ordinary Dividend Declared 1 3 939
Current Portion of interest
bearing Borrowings 2 942 2 903
TOTAL EQUITY AND LIABILITIES 177 611 150 409
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
year ended year ended
28 FEBRUARY 28 FEBRUARY
R000 2002 2001
Balance at beginning of
Period 97 432 94 105
Shares repurchase (11 877) -
Deferred tax on revaluation
of fixed property - (2 831)
Issue of share capital -
capitalisation issue 1 045 -
Consolidation of Share
Purchase Trust 191 -
Currency translation
difference 150 (352)
Dividend for 2001 - (3 940)
Net profit 21 454 10 450
108 395 97 432
CONSOLIDATED CASH FLOW STATEMENT
Year Ended Year Ended
28 February 28 February
R000 2002 2001
CASH AVAILABLE FROM OPERATING
ACTIVITIES
Net cash flow from
operating activities 36 038 14 464
Cash receipts from customers 278 975 220 539
Cash paid to suppliers and
employees (236 470) 201 567
Cash generated from operating
activities 42 505 18 972
Interest received 4 898 2 563
Interest and dividends
paid (4 553) (2 272)
Normal tax paid (6 812) (4 799)
Net cash flow from
investing activities (1 867) (6 943)
Purchase of property,
plant and equipment (6 272) (5 534)
Purchase of non-current
investment (13) (448)
Repayment from associate 4 228 89
Disposal of current investments - 711
Proceeds from sale of assets 190 919
Disposal of subsidiary,
net of cash disposed - (2 680)
Net cash flow from
financing activities (12 086) (2 279)
Repurchase of issued
ordinary shares (11 877) -
Proceeds from long-term
borrowings (209) (2 279)
Net increase in cash and cash
equivalents 22 086 5 242
Effects of exchange rate
differences 3 768 2 427
25 854 7 669
Cash at the beginning of
the year 27 997 20 329
Cash at the end of the year 53 851 27 998
COMMENTS
REVIEW OF RESULTS
With the turnaround process at IST now virtually completed,
all divisions contributed to a strong performance by the
group. In the face of challenging market conditions,
turnover from continuing operations was increased by 31% to
R276.9 million and operating profit by 38% to R23.4 million.
Headline earnings per share, fully diluted, rose by 80% to
14.2 cents and the net tangible asset value increased from
70.5 cents per share to 88.9 cents. Net cash flow from
operating activities was R36 million against R14.5 million
for the previous year.
The group's balance sheet remains strong and its cash
reserves grew from R28 million to R54 million during the
year. It is maintaining a flexible approach to these cash
resources with a view to possible acquisitions.
REVIEW OF OPERATIONS
The salient features of a year generally characterised by a
high level of activity are:
Electronics group
* The successful completion of the R45 million SCADA/EMS
system for the Swaziland Electricity Board.
* IST's appointment as supplier of an integrated network
planning system to Telkom.
* A two-year renewal of the contract to supply digital loop
carriers to Telkom.
Mechanical group
* The ongoing contract for defence systems development from
Jordan.
* A multi million rand turnkey contract for the expansion of
the Mozal compressed airplant.
* The appointment as key systems supplier to the Pebble Bed
Modular Reactor project.
NEW OPTION SCHEME ENHANCES EMPOWERMENT
Shareholders last month approved a new share option scheme
designed to enhance IST's relationship with its existing
empowerment partners through Aka Capital. The South African
parastatal sector is a major market for IST and it is
therefore one of the group's key strategic objectives to
maintain a substantial empowerment component in its
shareholder base.
DIVIDEND
A dividend of 6.2 cents per share has been declared for the
reporting period resulting in a dividend cover of 2.5 times.
The dividend is payable to holders of ordinary shares
recorded in the register of the company at the close of
business on Friday 3 May 2002, and will be paid on Monday 6
May 2002. The last day to trade "cum" dividend will be
Thursday 25 April 2002. The shares will commence trading
"ex" dividend from the commencement of business on Friday 26
April 2002. Share certificates may not be dematerialised or
rematerialised between Friday 19 April 2002 and Friday 3 May
2002, both days inclusive.
ACCOUNTING POLICY
The accounting policies and methods of computation applied
are consistent with those applied in the financial
statements for the year ended 28 February 2001 and are in
compliance with Statements of Generally Accepted Accounting
Practice in South Africa.
In terms of the requirements of AC 130 (Provisions,
contingent liabilities and contingent assets) and AC107
(Events after the balance sheet date) dividends proposed or
declared after the balance sheet date, and related secondary
tax on companies (STC), are not recognised as a liability at
the balance sheet date. The dividend of R7.5 million (6.2
cents per share), declared on 9 April 2002, will give rise
to an estimated STC charge of R1 million. Similarly, no
provision has been made for the balance in audit fees of
R155 000. Since the effect of these changes is evident from
the financial statements, they have not retrospectively
applied and the comparative figures have therefore not been
restated.
PROSPECTS
Economic conditions remain difficult and volatile but all
IST's divisions are firmly positioned to sustain the good
results they produced in the review period.
ANNUAL GENERAL MEETING
The fourth annual general meeting for shareholders will be
held at 14H00 on Wednesday 5 June 2002 at the offices of the
company at IST Building, 221 Garstfontein Road, Menlyn,
Pretoria.
Gary Morolo Harry Coetzee
Chairman Chief Executive
Pretoria
11 April 2002
DIRECTORS
G MOROLO* (CHAIRMAN), L ROBERTSON* (DEPUTY CHAIRMAN),
H COETZEE (GROUP CEO), J BLIGNAUT*,
P FLACK*, A MOFFAT*, T STEYN, E TOERIEN,
P VAN NIEKERK*, J VISAGIE.
*NON-EXECUTIVE DIRECTORS
G Serobe resigned as a director in the period under review.
IST GROUP LIMITED
REG NO: 1998/11521/06
ISIN NO: ZAE000015798
SHARE CODE: 1ST
TRANSFER SECRETARIES:
MERCANTILE REGISTRARS LIMITED,
11 DIAGONAL STREET,
JOHANNESBURG
2001
REGISTERED OFFICE:
IST BUILDING,
221 GARSTFONTEIN ROAD,
MENLYN,
PRETORIA
0145
TEL: (012) 426 7200
FAX: (012) 348 9472
E-MAIL: ist@ist.co.za
www.istltd.com
STAKEHOLDER AND MEDIA RELATIONS:
FOR FURTHER INFORMATION CONTACT
KATHY DU PLESSIS AT:
TEL: (011) 728 4701
FAX: (011) 728 2547
E-MAIL: ist@dpapr.com
