| Fri 19 Apr 2002, 0:00 | | Setpoint - Financials Results |
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Consolidated Income Statement
Unaudited Unaudited Audited
six months six months twelve months
ended ended ended
28 February 28 February 31 August
2002 2001 2001
R'000 R'000 R'000
Revenue 89,390 166,378 275,425
Cost of sales (55,213) (118,949) (187,972)
Gross margin 34,177 47,429 87,453
Operating expenses (25,637) (55,014) (94,618)
Operating income/(loss) 8,540 (7,585) (7,165)
Exceptional items* 5,602 (5,017) (16,804)
Income/(loss) before
finance costs 14,142 (12,602) (23,969)
Finance charges (2,411) (4,980) (7,224)
Income/(loss) before
taxation 11,731 (17,582) (31,193)
Taxation (1,839) 3,668 8,163
Income/(loss) attributable
to shareholders 9,892 (13,914) (23,030)
Weighted average number
of shares in issue (000s) 179,955 182,420 187,598
Fully diluted weighted
average number of shares
in issue (000s) 179,955 196,533 187,598
Headline earnings per
share (cents) 2.5 (4.9) (3.1)
Fully diluted headline
earnings per share (cents) 2.5 (4.5) (3.1)
Earnings per share (cents) 5.5 (7.6) (12.3)
Fully diluted earnings
per share (cents) 5.5 (7.1) (12.3)
Headline earnings 4,490 (8,897) (5,826)
Net income/(loss)
attributable to shareholders 9,892 (13,914) (23,030)
Goodwill amortisation 200 - 400
Exceptional items (5,602) 5,017 16,804
Exceptional items * 5,602 (5,017) (16,804)
Net profit/(loss) on
disposal of operations 5,602 - (13,715)
Acquisition costs - - (1,582)
Impairment loss on
investments - (5,017) (1,507)
Consolidated Balance Sheets
Unaudited Unaudited Audited
28 February 28 February 31 August
2002 2001 2001
R'000 R'000 R'000
ASSETS
Non-current assets 32,651 42,365 40,714
Property, plant and
equipment 12,758 26,091 18,560
Intangible assets 4,850 5,476 5,050
Investments 2,030 - 2,252
Deferred taxation 13,013 10,798 14,852
Current assets 71,572 118,158 90,966
Cash resources 2,827 1,093 3,390
Inventories 24,868 44,349 27,545
Trade and other receivables 43,877 72,716 60,031
Total assets 104,223 160,523 131,680
EQUITY AND LIABILITIES
Capital and reserves
Shareholders' funds 32,254 37,640 24,878
Non-current liabilities 14,579 28,622 21,982
Interest bearing
liabilities 13,873 21,043 19,527
Non-interest bearing
liabilities 706 7,579 2,455
Current liabilities 57,390 94,261 84,820
Interest bearing
liabilities 14,982 32,374 43,523
Non-interest bearing
liabilities 42,408 61,887 41,297
Total equity and
liabilities 104,223 160,523 131,680
Shares in issue (000's) 179955 182420 187598
Net asset value per share 17.9 20.6 13.3
Tangible net asset
value per share 15.2 17.6 10.6
Contingent liability
Set Point is contractually
obliged to purchase
2,79 million shares
in the company
from a vendor at 72 cents
a share, if these
shares are tendered to
the company in negotiable
form at 28 February 2003.
Borrowings
Cash balances have
been set off against
short term borrowings where allowed
in terms of bank
facility arrangements.
Comparative figures at
28 February and
31 August 2001 have been
restated accordingly.
Abridged consolidated statement of changes in equity
28 February 31 August
2002 2001
R'000 R'000
Opening balance 24,878 38,684
(Repurchase) / issue of shares -841 9,041
Movement in non-distributable
reserves -1,675 183
Income attributable to
ordinary shareholders 9,892 -23,030
Closing balance 32,254 24,878
Consolidated Cash Flow Statements
Unaudited Unaudited Audited
six months six months twelve months
ended ended ended
28 February 28 February 31 August
2002 2001 2001
R'000 R'000 R'000
Cash inflow (outflow) from
operating activities 10,465 (7,634) (4,861)
Cash inflow (outflow) from
investing activities 24,916 (1,742) (12,240)
Cash (outflow)/inflow from
financing activities (35,944) (2,002) 8,020
Movement in cash and cash
equivalents (563) (11,378) (9,081)
Cash resources at beginning
of period/year 3,390 12,471 12,471
Cash resources at end of
period/year 2,827 1,093 3,390
REVIEW OF OPERATIONS
Profile
Set Point is a manufacturer, supplier and operator of specialised
industrial, analytical and allied technological equipment used by a wide
range of major industries.
Review
The results for the 6 months to 28th February 2002 confirm the positive
performance resulting from the implementation of specific strategies. The
group is now smaller but sharply focused on its integrated core activities.
These improved results, although not comparable, were achieved through
higher margins, lower costs and reduced borrowings. The group is now cash
positive and borrowings should continue to decline. The R15m loan repayable
on 1 September 2002 and referred to in note 12 of the 2001 annual financial
statements has been replaced by a loan on similar terms but repayable over 3
years in six monthly tranches.
Accounting Policies
The accounting policies at 28 February 2002 are consistent with those
applied at 31 August 2001. These results have been prepared in accordance
with Statements of Generally Accepted Accounting Practice.
Financial Results
Revenue declined by 46% to R89,4m reflecting the sale and closure of various
group businesses. The gross margin, however, showed a marked improvement to
38,2% (2001 - 28,5%), and operating expenses at only 47% of the previous
comparable period. The group recorded a R8,5m operating income compared to
the R7,6m loss to 28th February 2001. Group EBITDA was R9,9m, which equates
to 11,1% of revenue.
These results enabled the group to report headline earnings per share of 2,5
cents (2001 - loss 4,9 cents).
All operating and financial ratios have shown meaningful improvement
including interest cover at 3,5 times and a debt - equity ratio of 80% (2001
- 240%).
Prospects
The restructuring and focusing of the group is effectively complete.
Emphasis will now move from restructuring to growing the group's business
units both internally and through external alliances. All divisions
continue to trade profitably and generate positive cash flows.
Headline earnings in the second half of the financial year ending August
2002 are anticipated to reflect a continued satisfactory performance.
Directorate
Graeme Horsfield has been appointed a director and Mark Saunders an
alternate director. Linsent Martin and Howard St Quintin have resigned from
the board
Dividends
No dividend has been declared.
For and on behalf of the board
BH Kent (Chairman) MJ Smith (Chief Executive Officer)
Johannesburg
17 April 2002
Directors: BH Kent (Chairman)*, MJ Smith (Chief Executive Officer), Dr DE
Baloyi*, GJ Horsfield, JM Judin*, ND Kennelly, H Levin*, VTL Ngubeni*, CS
Seabrooke*, MF Saunders (alternate)
(*non-executive)
Registered Office: Pin Mill Farm, Block F, 164 Katherine Street, Sandton,
2146, (PO Box 787646, Sandton, 2146)
Transfer Secretaries: Compushare Services Limited, 10th Floor, 11 Diagonal
Street, Johannesburg 200, (PO Box 1053, Johannesburg 2000)
Sponsor: Standard Corporate and Merchant Bank (a division of The Standard
Bank of South Africa Limited), (Registration number 1962/000738/06)
Web site: www.setpoint.co.za
Set Point Technology Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1996/014334/06)
Share code: STO ISIN: ZAE000013629
("Set Point" or "the company")
Information relating to the interim results announcement
In the interim results for Set Point published in the press on 19 April
2002, the contingent liability note should have read as follows:
Set Point is obliged to purchase 2.79 million shares in the company from a
vendor at 72 cents per share, if these shares are tendered to the company in
negotiable form on 28 February 2003. The share purchase will be conditional
upon obtaining specific approval for the repurchase from shareholders before
that date. If shareholder approval is not obtained, Set Point will still be
obliged to settle the contingent liability.
Johannesburg
19 April 2002
Sponsor
STANDARD CORPORATE AND MERCHANT BANK
(A division of The Standard Bank of South Africa Limited)
(Registration number 1962/000738/06)
