| Wed 3 Jul 2002, 0:00 | | HICOR LIMITED - AUDITED RESULTS for the year ended |
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(Registration number 1981/011496/06)
Share Code: HOR
ISIN: ZAE000003331
AUDITED RESULTS for the year ended 31 March 2002
31/03/2002 31/03/2001
(Audited) (Audited)
R`000 R`000
ABRIDGED GROUP INCOME STATEMENT
Gross Revenue 31,272 40,992
Continuing operations 27,922 22,305
Discontinued operations 3,350 18,687
Gross income 19,272 18,159
Amortisation and depreciation (4,684) (2,318)
Operating expenses (15,589) (17,274)
Net operating income/(loss) (1,001) (1,433)
Continuing operations (1,053) 178
Discontinued operations 52 (1,611)
Losses on discontinued operations - (4,438)
Net finance costs (1,694) (4,074)
Exceptional items (4,815) (636)
Pre-tax profit/(loss (7,510) (10,581)
Income tax expense (551) (283)
Net attributable income/(loss) (8,061) (10,864)
Headline earnings per share (cents) (1,0) 0,7
Earnings per share (cents) (8,1) (10,9)
Shares in issue (thousand) 302,550 100,000
Weighted shares in issue (thousand) 100,000 100,000
Earnings before interest, exceptional 3,683 885
items,
taxation and amortisation (EBITA)
ABRIDGED GROUP BALANCE SHEET
Non-current assets
Fixed assets 371 847
Intangible assets 15,729 17,736
Non-current receivables 911 429
Current assets 14,568 16,999
Total assets 31,579 36,011
Capital and reserves
Shareholders` interest 2,355 699
Non-current liabilities 16,101 25,763
Total equity and liabilities 31,579 36,011
Net asset value per share (cents) 0,8 0,7
Shares in issue (thousand) 302,550 100,000
Weighted shares in issue (thousand) 100,000 100,000
ABRIDGED GROUP CASH FLOW STATEMENT
Cash (absorbed) / generated from (597) (12,648)
operating activities
Continuing operations (649) (468)
Discontinued operations 52 (12,180)
Net finance costs (1,694)
Tax paid - (16)
Working capital change 5,747 6,276
Cash flow from investing activities (3,148) 2,483
Cash flow from financing activities 433 10,040
Net movement in cash resources 741 2,061
Opening cash resources 653 (1,408)
Closing cash resources 1,394 653
ABRIDGED STATEMENT OF CHANGES IN EQUITY
Balance at beginning of year 699 10,333
Prior year adjustment - (783)
Adjusted balance at beginning of year 699 9,550
Ordinary shares issued 2,025 100
Share premium raised 8,002 1,900
Share issue costs (290) -
Movement in foreign currency (20)
translation reserve 13
Loss for the period (8,061) (10,864)
Balance at end of year 2,355 699
ADDITIONAL INFORMATION
Included in operating income
Depreciation 280 356
Amortisation 4,404 1,962
4,684 2,318
Headline earnings reconciliation Net (8,061) (10,864)
attributable income
Net attributable income (8,061) (10,864)
Losses on discontinued operations - 6,049
Exceptional items 4,815 636
Interest related to discontinued - 3,860
operations
Amortisation of goodwill 2,278
971
Headline earnings on continuing (968)
operations 652
- EBITA up by 316%
- Revenue up by 25%
- Borrowings down by 35%
- Net finance costs
down by 58%
YEAR IN REVIEW
Despite the fact that the trading result of the Group for the 12 months
ended 31 March 2002 was still not profitable, the improvement in the overall
financial position of the Group continues to substantiate the decision to
restructure the Group in accordance with the 7 point plan. This plan, as
announced by the board in October 2000 to turn the company around, through
focusing on reducing the risk and exposures, has proved to be the correct
decision. Phase one of the recapitalisation process was successfully
completed at the end of the year under review and resulted in an overall
reduction of gearing. Net asset value per share increased by 11%, net
finance costs reduced by 58% and the interest bearing borrowings reduced by
more than 35%. In very difficult trading conditions the revenues compare
favourably to previous reporting periods and continuing business revenue is
up by 25%, the EBITA is up by 316% to R3,683 million and the cash flows are
positive - confirming the core business going forward is in a far better
position than last year.
AMORTISATION
Amortisation increased substantially over the previous year mainly due to a
reassessment of the life of goodwill which arose in 1998. The reassessment
has resulted in an increase in amortisation in the current year of R 495,000
and a restatement of the prior years results of R 1,278,000 of which R
495,000 relates to the year ended 31 March 2001.
EXCEPTIONAL ITEMS
Exceptional items totalling R 4,815,000, comprise the following:
- amortisation of software inventory 2,010,000
- provision for a High Court judgement 4,000,000
- surplus on disposal of a subsidiary company
(1,420,000)
- other 225,000
During the year the Group wrote down the value of 200 prepaid software
licenses, acquired in the previous year, by R2,010,000. The board is
confident that all 200 prepaid licenses will be sold at full value as the
platform to do so was created during the year under review.
As reported in previous communications from the current board to
shareholders, the company was defending a claim from a group of individuals
that transacted for the sale of their business with a previous subsidiary
for which the holding company bound itself as co-principal debtor. Despite
the reported assurances from Senior Council and other consultants, that the
probability of the Group suffering any losses as a result of this action to
be low, judgement was handed down in the High Court of Johannesburg on April
29, 2002 against Hicor with expenses and interest backdated to
September 1997. Based on the judgement as well as current negotiations
between the parties, an amount of R4 million is provided for in respect of
this expense.
PROSPECTS
The Group will continue to expand it`s presence in the development of
technology solutions and services for the delivery, management and
processing of electronic payments to the banking and corporate sector of the
market under the brand "The Payments Interchange" launched recently. The
recurring annuity style revenue during the year under review represented in
excess of 30% of the total revenue for the year and will continue to show
considerable growth in the coming year. The focus for new business in the
next year will be on the international banking arena through alliances with
strategic partners with established global presence and infrastructures
rather than our own infrastructures. The second phase of the
recapitalisation process is well under way and is expected to be implemented
before 30 September 2002.
DIVIDENDS
No dividend has been declared or recommended for the financial year ended
31 March 2002.
ACCOUNTING POLICIES
The results comply with all the Statements of Generally Accepted Accounting
Practices and are consistent with those applied in previous years.
For and on behalf of the board
D J Pringle (Executive Chairman) 30 June 2002
Directors: D J Pringle (Chairman), J de Bruin,
Dr D M van der Merwe,
J H Wolfaardt
Company Secretary: J H Wolfaardt
Registered Office: Development Trust Chambers, 1 Quintin Brandt Street,
Persequor Park, Pretoria, 0020
Transfer Secretaries: Computershare Services
Limited, 8th Floor, 11
Diagnonal Street,
Johannesburg
Sponsoring Broker: PSG Investment Bank
Limited, 1st Floor, Old
College Building, 35 Kerk
Street, Stellenbosch, 7600
Date: 03/07/2002 07:34:33 AM Produced by the SENS Department
