| Thu 6 Jun 2002, 0:00 | | The Laser Group Limited - Audited Results For The |
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The Laser Group Limited - Audited Results For The 12 Months Ended 31 March
2002
THE LASER GROUP LIMITED
PREMIER PROVIDER OF OUTSOURCED BUSINESS SUPPORT SERVICES
AUDITED RESULTS FOR THE 12 MONTHS ENDED 31 MARCH 2002
HIGHLIGHTS
* Headline earnings per share up 29% to 67,5 cents
* Net tangible asset value per share up 23% to 321 cents
* Net cashflow from operations R28m
* Vendor payments for acquisitions largely complete
INCOME STATEMENTS
Audited Annualised Audited
12 months 12 months 18 months
ended ended ended
31 March 31 March 31 March
% 2002 2001 2001
increase R`000 R`000 R`000
Turnover 520 997 321 824 475 055
- Revenue 220 220 164 958 233 167
- Disbursements 300 777 156 866 241 888
EBITDA 12% 36 208 32 227 44 024
Depreciation (5 651) (3 782) (5 394)
Imputed interest on vendor
liabilities (2 543) (4 722) (7 617)
Other interest (5 628) (3 233) (6 554)
Operating profit 10% 22 386 20 490 24 459
Profit on sale of fixed assets,
property and investments 370 - 6 272
Amortisation of goodwill,
trademarks and development
costs (6 295) (1 677) (4 096)
Profit before exceptional items 16 461 18 813 26 635
Exceptional items (718) (946) (946)
Profit before taxation 15 743 17 867 25 689
Taxation charge (4 587) (5 847) (8 167)
Profit after taxation 11 156 12 020 17 522
Loss from associates (638) (392) (392)
Net profit for the year 10 518 11 628 17 130
Headline earnings 27% 17 161 13 525 16 388
Weighted average number of
ordinary shares in issue
during the year 25 425 25 762 26 157
Headline earnings per share 29% 67.5 52.5 62.7
Reconciliation between earnings
and headline earnings
Net profit from ordinary activities 10 518 11 628 17 130
Adjustments:
- profit on disposal of fixed assets (370) - (6 272)
- goodwill and trademark amortisation 6 295 1 677 4 096
- other 718 220 1 434
Headline earnings 17 161 13 525 16 388
Notes
The financial statements of the group comply in all material respects with
South African statements of Generally Accepted Accounting Practice and are
consistent with those applied in the previous year. The following accounting
statements have been adopted during the current year.
Provisions, Contingent Liabilities and Contingent Assets - AC130
Investment Properties - AC135
The previous year`s results have been restated for AC130
STATEMENT OF CHANGES IN ORDINARY SHAREHOLDERS` INTEREST
Audited Audited
12 months 18 months
ended ended
31 March 31 March
2002 2001
R`000 R`000
Ordinary shareholders` interest at the beginning
of the year 95 545 105 131
- Change in accounting policy - 6 897
- Share buy-back (999) (2 584)
- Shares issued for cash 264 -
- Goodwill write-off - (31 029)
- Net profit for the year 10 518 17 130
Ordinary shareholders` interest at the end of
the year 105 328 95 545
BALANCE SHEETS
Audited Audited
31 March 31 March
2002 2001
R`000 R`000
ASSETS
Non-current assets
Fixed assets
- investment properties 62 006 61 314
- owner occupied properties 6 021 -
- vehicles and equipment 35 621 31 662
- trademarks 6 943 8 912
- goodwill 16 523 19 270
Investments and other assets 1 870 5 712
Deferred taxation (239) 1 947
Loan to share trust 493 837
Total non-current assets 129 238 129 654
Consumables 1 065 695
Accounts receivable 58 390 54 119
Cash and cash equivalents (67) 9 640
- cash balances 31 060 23 844
- cash overdraft (31 127) (14 204)
Total current assets 59 388 64 454
Total assets 188 626 194 108
EQUITY AND LIABILITIES
Shareholders` interest 105 328 95 545
Interest bearing property liabilities 16 295 22 088
Non current 12 545 19 221
Current 3 750 2 867
Other interest bearing liabilities 9 880 7 788
Non current 5 426 4 323
Current 4 454 3 465
Vendor liabilities 10 542 26 933
Non current 273 12 428
Current 10 269 14 505
Accounts payable and provisions 45 039 40 255
Taxation 1 542 1 499
Total equity and liabilities 188 626 194 108
Number of shares at period end 25 482 25 762
Net asset value per share (cents): 11% 413 371
Net tangible asset value per share (cents): 23% 321 261
Debt equity ratio 24.9 21.2
CASH FLOW STATEMENTS
Audited Audited
12 months 18 months
ended ended
31 March 31 March
2002 2001
R`000 R`000
Cash generated by operations 35 367 43 850
Working capital changes 484 (14 052)
Net interest paid (5 735) (3 482)
Normal taxation paid (2 044) (1 279)
Net cash inflow from operating activities 28 072 25 037
Net cash outflow to investing activities (14 629) 12 805
Net cash outflow from financing activities (23 150) (30 538)
Payments to vendors (18 714) (18 434)
Shares issued for cash 264 -
Shares repurchased (999) (2 584)
Net repayment of property and instalment sale
liabilities (3 701) (9 520)
Net decrease in cash and cash equivalents (9 707) 7 304
Cash and cash equivalents at the beginning
of the year 9 640 2 336
Cash and cash equivalents at the end of the year (67) 9 640
OVERVIEW
The group has performed satisfactorily during a year of repositioning and
consolidating its operations.
Significant progress has been made in providing fully integrated outsourced
business support solutions to our corporate customers through Laser`s two
operating divisions that trade as Laser Logistics Solutions and Laser HR
Solutions. These service divisions specialise in supply chain logistics and
in the provision and procurement of Human Resources solutions.
Laser Logistics Solutions is capitalising on the growing demand for
integrated, time sensitive, express distribution and e-commerce fulfilment.
Its operations have been consolidated into three business units, Laser
International Solutions (clearing and forwarding), Laser Express Solutions
(air and road based courier and delivery) and Laser Distribution Solutions
(third party distribution and warehousing).
These businesses continue to improve productivity as a result of operational
synergies and integration. Investments made in the new distribution hub and
the integration of Goeie Hoop Vervoer have created an efficient national
road-based distribution operation.
Laser Human Resource Solutions has been repositioned and is now set for
sustained growth. It offers businesses a single point of access to a broad
range of HR products and services. The group`s human performance division
provides consulting services supported by a range of integrated tools and
products. This offering is complimented by businesses focused on executive
placement and other specialised recruiting activities.
FINANCIAL RESULTS
Results for the 2001 trading period have been restated and annualised,
unaudited, to provide a basis for comparison to the current year`s audited
results. Accounting policies applied are in compliance with South African
Statements of Generally Acceptable Accounting Practices. The audit report
is available at the company`s registered offices for inspection.
Income Statement and earnings per share
The clearing and forwarding turnover, which represents disbursements on
behalf of customers, has grown organically and through the acquisition of a
Durban-based clearing and forwarding operation. Turnover from trading
activities is 33% higher than in prior years.
Operating profit has grown by 10% and is an indication of the positive cash
flows generated from trading activities. Headline earnings per share
increased by 29% to 67,5 cents per share from the restated, comparative
figure of 52,5 cents per share for the previous 12-month period.
Balance sheet
The balance sheet as at March 31 2002 reflects the group`s continued
concentration on cash management. A highlight is the substantial reduction
in vendor and property financing commitments.
The debt to equity ratio of 25% is well within the group`s objectives. R19m
of cash flows generated from operations was used to settle vendor
liabilities, R6m to finance development of a new distribution hub and R6m to
reduce property liabilities. The group`s tangible net asset value per share
increased by 23% to 321 cents.
Subsequent to the year end, a vendor payment of R7m was made, which largely
concludes the group`s outstanding vendor commitments.
SIGNIFICANT FINANCIAL DISCLOSURE
The group has treated the property portfolio as an investment property in
terms of AC135 - Investment Properties. This resulted in a net write up of
the property portfolio by R5.1m.
Over a number of years, the group invested in various technology solutions,
both through acquisition and internal development. In terms of accounting
standards AC128 (Impairment of Assets), and AC129 (Intangible Assets), a
prudent approach to the valuation of these assets has been adopted.
Consequently, they have been written down by R5.4m.
The adoption of AC130 (Provisions, Contingent Liabilities and Assets), has
resulted in vendor liabilities being restated to the present value with the
related interest charge being expensed. The restatement of results for the
year has reduced headline earnings by 10 cents to 67,5 cents per share,
whilst the comparable period results are reduced by 18,0 cents to 52,5 cents
per share.
PROSPECTS
The group has continued to consolidate its operations under the two trading
divisions Laser Logistics and Laser HR Solutions.
Laser Logistics has grown in excess of 20% a year for the past 2 years. This
growth is sustainable and the division should continue to generate a strong
positive cashflow in the year ahead. Laser HR Solutions is also expected to
produce a contribution to operating profits in the current year.
A final settlement of R4.4m has been concluded for the remaining two years
of the royalty agreement.
The group`s properties, rented under long-term agreements, yield attractive
pre-tax returns. However, the group intends to concentrate its resources on
its core operations. The group has received conditional offers to purchase
the properties and negotiations in this regard are proceeding.
SHARE BUY-BACK
Under the Group`s share buy-back programme, 465 685 shares have been
repurchased at an average cost of 215 cents per share, comprising 2% of the
company`s issued share capital. These shares are held by the Group as
treasury stock.
DIVIDEND POLICY
In line with the Group`s policy to preserve cash to fund future growth, no
dividend has been declared in the year.
By order of the Board
BILL McADAM MICHAEL FULLER
Chairman Chief Executive Officer
Cape Town
6 June 2002
Registered Office
2nd Floor, Dean Street Arcade
Newlands 7700
Transfer Secretaries
Computershare Investor Services Limited
11 Diagonal Street, Johannesburg 2001
The Laser Group Limited
Incorporated in the Republic of South Africa
Registration number 1971/010431/06
Share code: LSR
ISIN: ZAE000017166
www.laser.co.za
Date: 06/06/2002 05:05:45 PM Produced by the SENS Department
