| Wed 31 Jul 2002, 0:00 | | Zaptronix Ltd - Audited Results For The Twelve Mon |
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Zaptronix Ltd - Audited Results For The Twelve Months Ended 30 April
2002
ZAPTRONIX LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1997/014928/06)
Share code: ZPT ISIN: ZAE000015145
("the company")
Audited results for the twelve months ended 30 April 2002
Consolidated Income Statement
Audited for Audited for
the year ended the year ended
30 April 2002 30 April 2001
R`000 R`000
Revenue 9 130 16 119
- Continuing operations 680 1 615
- Discontinued operations 8 450 14 504
Net operating loss before interest,
depreciation and exceptional items (7 899) (11 475)
- Continuing operations (6 070) (9 509)
- Discontinued operations (1 829) (1 966)
Depreciation (2 086) (2 524)
- Continuing operations (491) (301)
- Discontinued operations (1 595) (2 223)
Net operating loss before interest and
exceptional items (9 985) (13 999)
Exceptional items - closure costs
and write-off of development costs (13 441) -
Net operating loss before interest (23 426) (13 999)
Interest received 323 1 264
Finance costs (34) (118)
Net operating loss after interest (23 137) (12 853)
Share of associate loss (394) (277)
Net loss before taxation (23 531) (13 130)
Taxation 410 3 574
Net loss after taxation (23 121) (9 556)
Outside shareholders` interest - 663
Net loss for the period (23 121) (8 893)
Reconciliation to headline loss:
Net loss for the period (23 121) (8 893)
Adjusted for exceptional items 13 441 -
Headline loss (9 680) (8 893)
Loss per ordinary share (cents) (15,97) (6,37)
Headline loss per ordinary share (cents) (6,68) (6,37)
Weighted average number of shares (000`s) 144 805 139 676
Consolidated cash flow Statement
Audited for Audited for
the year ended the year ended
30 April 2002 30 April 2001
R`000 R`000
Cash utilised from operations (7 048) (7 981)
- Continuing operations (2 496) (10 048)
- Discontinued operations (4 552) 2 067
Finance income 289 1 146
- Continuing operations 289 1 121
- Discontinued operations - 25
Taxation paid (4) (558)
- Continuing operations (4) (302)
- Discontinued operations - (256)
Net cash utilised for operating activities (6 763) (7 393)
Net cash flow utilised in investing
activities (718) (6 804)
- Continuing operations (1 458) (2 032)
- Discontinued operations 740 (4 772)
Cash flow from financing activities - 20 479
- Continuing operations - 20 088
- Discontinued operations - 391
Net change in cash and cash equivalents (7 481) 6 282
Cash and cash equivalents at the
beginning of the period 10 640 4 358
Cash and cash equivalents at the end
of the period 3 159 10 640
Consolidated balance sheet
Audited at Audited at
30 April 2002 30 April 2001
R`000 R`000
ASSETS
Fixed assets and intangibles 6 091 29 245
Investments 3 983 4 376
Current assets excluding cash 1 894 5 841
Cash and cash equivalents 3 159 10 640
Total assets 15 127 50 102
EQUITY AND LIABILITIES
Share capital and premium 26 749 26 749
(Accumulated losses)/Reserves (14 394) 15 542
Share capital and reserves 12 355 42 291
Outside shareholders` interest - 29
Deferred tax 1 454 4 814
Total capital and reserves 13 809 47 134
Current liabilities 1 318 2 968
Total equity and liabilities 15 127 50 102
Net asset value per share (cents) 8,53 29,21
Net tangible asset value per share (cents) 5,05 19,34
Cash value per share (cents) 2,18 7,35
Notes:
(1) No dividend will be declared.
(2) The accounting policies are consistent with those of prior years
and are in compliance with South African Statements of Generally
Accepted Accounting Practice.
(3) The financial statements have been audited by Moores Rowland whose
audit opinion is available for inspection at the registered office of
the company.
Statement of changes in equity
Audited for Audited for
the year ended the year ended
30 April 2002 30 April 2001
R`000 R`000
Balance at beginning of the period 42 320 31 307
Net loss (23 121) (8 893)
Foreign currency translation reserve 29 10
Outside shareholders (4) (663)
Reversed on sale of assets (6 869) -
Share capital issued - 20 479
Taxation overprovision at acquisition - 80
Balance at end of the period 12 355 42 320
COMMENT
At the time of the publication of the interim results to 31 October 2001
and the circular to shareholders published on 22 April 2002, the reasons
for the discontinuance and closure of the manufacturing business in
Durban were disclosed. The cost of the closure and write backs is
reflected in the year end results. The process of closing the operation,
selling the assets and collecting the outstanding debts is almost
complete. Shareholders are reminded of the circumstances leading to this
situation, specifically: the impasse with Hitachi over the KidCard
project, the breakdown of the deal with Invensys after its re-
structuring last October and delays in the placing of major orders for
hybrid circuits in the aftermath of 11th September, by one of our main
customers in the Reunert stable. In addition, MasterCard`s decision to
virtually close the head office of Mondex International in London has
had an adverse effect on our company, both from a local perspective (as
our ecash system of choice) and internationally on our Cambridge
operation GML, and indeed Hitachi itself, both of which have been
involved in Mondex since it`s inception.
The operating loss of R7,9 million has been reduced significantly from
the prior year loss of R11,5 million, however the closure has
necessitated significant closure costs and write backs. In addition to
costs normally associated with a closure such as retrenchment costs
(R2,7 million), the revaluation of the manufacturing assets on the
balance sheet has been reversed. The net loss on the sale of assets
after this reversal was R1,3 million. The board has also been prudent in
taking the decision to write back a significant portion of capitalised
development costs. These items have resulted in an exceptional charge
against income of R13,4 million. In addition to this, the value of the
tax loss from the previous year that was raised and reflected on the
balance sheet in terms of AC102 has now been reversed (R2,8 million).
The cash flow utilised for operating and investing activities has
decreased significantly to R7,5 million (2001: R14,2 million) despite
the cash costs of the closure. The remaining business now has a
significantly reduced overhead structure.
The balance sheet has been simplified and reflects cash on hand after
the closure costs. The company is currently not operating profitably,
and even though contracts are being concluded for the sale of product,
the financial statements will include an emphasis of matter regarding
the going concern.
The company now consists of a more focused and creative operation
intending to maximise the value of the intellectual property for its
shareholders. This is a difficult task given the current state of
markets both here and abroad but opportunities are being explored with
other market players around specific packages of technology. Further
information will be forthcoming in the weeks ahead but discussions are
underway with a number of potential partners, especially those involved
in BEE who have requirements and markets for some of the company`s
offerings in the fields of, inter alia, smart cards, payment systems,
off-line gaming networks, electricity metering and photovoltaic solar
panel systems. These discussions could lead to the sale of the entire
business of Zaptronix or parts thereof. The equipment necessary to
manufacture specialised hybrid circuits business has been retained and
we could see a joint venture with an existing manufacturer to continue
this high margin operation. The `electrical` side of our business might
be repackaged into a joint venture dedicated to this industry and other
joint ventures could be structured around the company`s smart card
activities, leaving the listed vehicle strictly as a holding company.
Whatever the outcome, the directors are working at maximising the return
to its shareholders.
As a part of the scaling down process of the business Messrs Adams,
Appelbaum, Curry and Thompson collectively resigned on 30 January 2002
with the resignation of Thompson being effective 30 March 2002. John
Heath has been appointed the non-executive chairman. We would like to
thank our shareholders and investors, staff, partners, customers and
suppliers for their ongoing support.
The Board
30 July 2002
Date: 31/07/2002 07:01:00 AM Produced by the JSE SENS Department
