| Tue 23 Apr 2002, 0:00 | | Datacentrix - Results For The Year Ended 28 Februa |
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DATACENTRIX HOLDINGS LIMITED
REGISTRATION NUMBER 1998/006413/06
JSE Share code: DCT ISIN: ZAE000016051
RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2002
HIGHLIGHTS
* Turnover increased by 32% to R521,6 million
* Operational performance (EBITDA) increased by 62% to R39,4 million
* Headline earnings per share increased by 48% to 16.7 cents and
earnings per share by 39% to 13.5 cents
* Cash generated from operations amounted to R25,2 million,
resulting in R71 million cash on hand at year end
* The group has no interest bearing debt
* Tangible Net Asset Value increased by 77% to 55 cents per share
* Five year Headline Earnings per share compound annual growth rate of 43%
CONSOLIDATED INCOME STATEMENT
Group Group
Year ended Year ended
Feb 2002 Feb 2001
R000's R000's
Turnover 521,581 394,064
Operating income before interest, taxation, 39,378 24,298
depreciation & amortisation (EBITDA)
Depreciation (4,127) (1,467)
Loss from closure of business lines (2,220) (850)
Goodwill amortised (3,002) (1,700)
Operating income before interest and taxation (EBIT) 30,029 20,281
Net interest received 1,094 1,699
Income before taxation 31,123 21,980
Taxation (10,221) (7,503)
Net income after taxation 20,902 14,477
Outside shareholders interest 1,444 1,292
Earnings attributable to ordinary shareholders 22,346 15,769
Retained income at beginning of the year 45,826 30,057
Retained income at end of the year 68,172 45,826
Headline and diluted headline earnings per share (cents) 16.7 11.3
Earnings per share (cents) 13.5 9.7
Weighted average number of shares in issue ('000) 165,341 161,765
RECONCILIATION OF HEADLINE EARNINGS
Group Group
Year ended Year ended
Feb 2002 Feb 2001
cents cents
Earnings per share 13.5 9.7
Loss from closure of business lines 1.4 0.5
Goodwill amortised 1.8 1.1
Headline and diluted headline earnings per share 16.7 11.3
CONSOLIDATED BALANCE SHEET
Group Group
Feb 2002 Feb 2001
R000's R000's
ASSETS
Non-current assets
Fixed assets 12,479 28,550
Deferred tax 9,072 6,745
Investments and loans 13,388 9,590
Intangible assets 16,658 21,610
51,597 66,495
Current assets
Inventories 7,583 6,467
Accounts receivable 124,373 68,350
Bank balances and cash 71,460 45,089
203,416 119,906
Total assets 255,013 186,401
EQUITY AND LIABILITIES
Capital and reserves
Share capital and premium 32,013 7,099
Non distributable reserve 14,543 7,105
Acquisition consideration - shares due to vendors 4,617 12,249
Retained earnings 68,172 45,826
119,345 72,279
Minority interest and outside shareholder's loan - 5,749
Non-current liabilities
Acquisition consideration
- long term cash due to vendors 6,390 9,125
Long term liabilities - 249
Current liabilities
Accounts payable 107,224 80,321
Deferred Revenue 11,746 4,568
Acquisition consideration
- short term cash due to vendors 2,735 9,300
Taxation 7,573 4,810
129,278 98,999
Total equity and liabilities 255,013 186,401
Net asset value per share (cents) 64 45
Tangible net asset value per share (cents) 55 31
Number of shares in issue ('000) 187,008 161,830
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share NDR Acquisition Retained Total
Capital premium consideration income
due
Balance at
28 February 2000 16 1,987 706 14,690 30,057 47,456
Net income
for the year 15,769 15,769
Shares issued 5,221 (5,221) -
Share
issue expenses (125) (125)
Raised on
new acquisitions 6,149 6,149
Non-achievement of
profit warranties 6,399 (3,369) 3,030
Balance at
28 February 2001 16 7,083 7,105 12,249 45,826 72,279
Net income
for the year 22,346 22,346
Shares issued 3 25,296 (3,713) 21,586
Share
issue expenses (385) (385)
Non-achievement of
profit warranties 7,438 (3,919) 3,519
Balance at
28 February 2002 19 31,994 14,543 4,617 68,172 119,345
CONSOLIDATED CASHFLOW STATEMENT
Group Group
Year ended Year ended
Feb 2002 Feb 2001
R000's R000's
Net cash inflow from operating activities 25,207 13,828
Net cash outflow from investing activities (11,306) (34,361)
Increase in shareholders' equity 5,556 5,556
Increase in acquisitions considerations due 34,945 34,945
Net cash inflow from financing activities 12,470 15,195
Net increase/(decrease) in cash and cash equivalents 26,371 (5,338)
Cash and cash equivalents at the beginning of the period 45,089 50,427
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 71,460 45,089
Commentary
We present Datacentrix's fourth set of solid annual results since listing on
the JSE main board in September 1998.
Compared to the corresponding prior year results:
Turnover increased by 32% to R521,6 m
Operational performance (EBITDA) increased by 62% to R39,4 m
Headline earnings per share increased by 48% to 16.7 cents and
earnings per share by 39% to 13.5 cents
Tangible Net Asset Value increased by 77% to 55 cents per share
Cashflow generated from operations was R25,2 m, converting profits into
cash.
Taxation has been provided for at an effective rate of 33%, compared to
the prior year's rate of 34%.
Diligent asset management and financial controls have resulted in the cash
balances of R71 million at year end.
The group has no interest bearing debt.
Five year Headline Earnings per share compound annual growth rate of 43%
Nature of business
The Group's major activities comprise the supply, integration and
optimisation of IT-infrastructure, solutions and related services to
enterprise South Africa.
Infrastructure
The supply, integration and optimisation of infrastructure continues to be
the largest contributor to the Group.
Our unique top rated accreditation and positioning with Compaq, HP and IBM
makes us the partner of choice for the supply and maintenance of enterprise
infrastructure requirements.
Datacentrix's success in server-centric storage solutions has evolved into
the enterprise storage marketplace where we provide storage area networks
solutions from the leading vendors.
We have been particularly successful in the area of document and data
management in the SAP R/3 environment.
A security division was set up towards the end of the financial year in
response to client needs, focusing predominantly on Symantec's solutions.
Solutions
The Solutions unit offers hosted services and the consulting, supply and
implementation of business applications for the Microsoft platform.
During the year, the division was strengthened by the awarding of a revised
3-year, R108 million contract with Premier Foods.
This business unit employs a sizeable skills base focusing on hosted
application services, managed infrastructure, financial systems and data
mining.
In March 2002 the unit was enhanced through the acquisition of Microsoft
integration and development skills. Solutions will be a high growth area
going forward, which will include acquisitions of skills to complement our
existing offering.
Services
Datacentrix has an impressive array of service accreditations which were
obtained in order to ensure high quality support to the Group's
Infrastructure customers.
The decision has now been taken to market this division separately and to
compete as a truly customer service focused division supplying services
ranging from the traditional Vendor warranty work through software upgrades
and migration to infrastructure outsourcing.
The South African services market is large and growing by an estimated 13%
per year and with this new focus, a strong customer services ethos and the
strength of the Datacentrix customer base, this division is expected to grow
significantly.
Commerce Centre
As reported in the SENS announcement of 5 April 2002, Datacentrix terminated
its involvement in community based e-commerce projects due to the slow
growth in the market which had the effect that breakeven would not be
achieved by February 2003. In order to give effect to this decision,
Datacentrix purchased the remaining 30% of Commerce Centre of Southern
Africa (Pty) Ltd held by ParaNet LLC. Commerce Centre exited all community-
based projects including the FMCG national product data catalogue. All these
community-based projects were incurring losses and with this strategic
change, Commerce Centre will no longer be incurring losses and will change
its name to Datacentrix Solutions (Pty) Ltd to reflect the new shareholding.
Datacentrix continues to represent the Sterling Commerce suite of e-commerce
products in South Africa, and has enjoyed significant success from it.
Black Economic Empowerment (BEE)
Datacentrix continues to entrench itself as a truly South African company,
embracing BEE at all levels within the organisation and through its equity
structure.
During February 2002 our BEE shareholding was enhanced with an issue of new
shares, raising our BEE equity stake to 49%.
Datacentrix has successfully moved to the second phase of strengthening its
empowerment credentials.
In addition to the assumption of executive office by Gary Morolo as
Executive Chairman, senior management appointments have been made with Ahmed
Mahomed as Managing Director of Infrastructure, the largest division, and
Lolo Tshaka as Divisional Director in charge of the Government business
unit.
Significant progress has been made in the general employment equity profile,
resulting in 42% of all personnel being Black and 61% from the designated
group as at year end.
Concerted effort is being made to further improve our employment equity
profile, especially at executive and senior management levels.
Future prospects
With the significant growth initiatives identified in our infrastructure
business and the growth experienced in the Solutions and Services divisions,
Datacentrix has successfully implemented its growth strategy and remains
poised to make judicious and opportune acquisitions. We are positive that
growth will continue in the next financial year.
To date our focus on business critical solutions and services has shielded
Datacentrix from the global and local slowdown in information technology
expenditure.
We remain extremely well positioned to take advantage of the continued
shakeout and consolidation in the IT industry.
Dividends
As per company policy, no dividend has been declared or paid. The directors
believe that the cash resources can be best employed within the company to
fund organic and/or acquisitive growth.
Accounting policies
These financial statements have been prepared in accordance with Generally
Accepted Accounting Practice and the accounting policies used in their
preparation are consistent with those adopted in the previous financial
year.
For and on behalf of the board.
Gary Morolo Gerhard Uys
Executive Chairman Group MD
23 April 2002
Pretoria
Directors:
Gary Morolo (Chairman), Gerhard Uys, Klaas Lammers, Stewart Barker,
Charl Joubert, Natanya Kuper-Cohen*, Sam Nematswerani*, Joan Joffe*,
Imogen Mkhize* , Christoff Botha*
*non executive
Registered office: Transfer Secretaries:
Sanwood Park Block 7 Mercantile Registrars Limited
379 Queens Crescent 11 Diagonal Street
Lynnwood Johannesburg
Pretoria
www.datacentrix.co.za
